The Development Bank of Rwanda (BRD) has launched ‘Shabuka’, a new financing initiative designed to increase access to affordable loans and build capacity for women-led and women-owned businesses. The initiative, whose name translates to “Be Proactive”, offers flexible collateral requirements and low-interest loans ranging from Rwf100 million to Rwf2 billion, at an annual interest rate of 12 per cent for up to 10 years. The bank’s officials said that this is a significant drop compared to the current market average of around 17 per cent interest rate. ALSO READ: FEATURED: Development Bank of Rwanda (BRD) Achieves Landmark AAA Long-Term Domestic Credit Rating The product was launched on Tuesday, October 28, at Kigali Serena Hotel, in the presence of BRD’s partners, clients, members of the Private Sector Federation (PSF) Women’s Cluster, and women entrepreneurs from across the country. Commercial bank loans typically require 100 per cent collateral on loan requests, alongside other fees throughout the application process. 'Shabuka' reduces this barrier as applicants will provide only 15 per cent collateral. The collateral can also be the value of the project or business funded by the loan. Businesses whose collateral value is below 15 per cent will simply top up the difference. BRD officials said the product was inspired by women’s proven track record of responsible borrowing, timely repayment, and strong contribution to Rwanda’s economy. “We reduced both interest rates and collateral after realizing that women have brilliant, income-generating ideas but are often hesitant to seek financing due to high upfront costs and rigid requirements,” said Kampeta Sayinzoga, the CEO of BRD. “Evidence shows that women repay their loans diligently. That’s why Shabuka was born to create a practical path for women to scale their businesses.” Sayinzoga encouraged women entrepreneurs to think big and leverage this opportunity, noting that BRD aims to double women’s access to loans, from the current 15 per cent to 30 per cent of its total portfolio. ALSO READ: BRD secures global ISO certifications, strengthening client trust and service reliability According to the National Institute of Statistics of Rwanda’s (NISR) National Gender Statistics Report 2024, women make up 51.5 per cent of Rwanda’s population, yet their share of bank loans remains relatively low, rising modestly from 7 to 8 per cent in 2024, compared to 10 to 13 per cent for men. “Shabuka aims to address key challenges faced by women entrepreneurs, high collateral demands, equity requirements, and short loan tenures,” said Justin Ndatabaye, Head of Business Development at BRD. Ndatabaye added that their non-financial support, including mentorship and business training, will form a critical part of the initiative, helping women-led startups strengthen management and financial skills. Eligible businesses should be at least 40 per cent owned or led by women, and operate within BRD’s priority sectors, including agriculture, exports, manufacturing, energy, housing, education, transport, ICT, and the digital economy. The business should also be focused on growth and sustainability with social economic impact, with an existing or projected annual turnover ranging between Rwf 50 million and Rwf 5 billion. “Having a loan elsewhere does not disqualify an applicant,” Ndatabaye clarified. “The goal is to help women scale their operations, not to refinance existing debts.” Ndatabaye added that 'Shabuka' is an informed research initiative, stressing that the loan limit might change relatively to time and increase of funds in the 'Shabuka' fund. Women entrepreneurs welcome the move Celine Tahaninka, Managing Director of TahaCel Company Ltd, a nationwide cooking gas supplier, appreciated the government and BRD’s continuous efforts in addressing women’s challenges in business. “Collateral has always been a major obstacle,” she said. “With Shabuka, BRD has made it easier for us to grow. Allowing women to access loans even while servicing others will accelerate our businesses.” ALSO READ: BDF integrated into BRD as govt targets efficient business financing Donanta Mukahirwa, the representative of the leading private sector in North Province, and a businesswoman, who started her business career in 1975, described it as a truly ‘proactive approach.’ “The long repayment period is a game-changer. When loans mature too quickly, even good projects can fail,” she said. “The interest rate is fair, and it gives us room to plan sustainably.” By 2028, 'Shabuka' aims to increase BRD’s women lending portfolio from Rwf6 billion to Rwf60 billion, ensuring that at least 30 per cent of the bank’s financing benefits women-led enterprises. Applicants can send their applications via Shabuka’s email, shabuka@brd.rw.
