Bank of Africa Rwanda has unveiled a financing approach designed to ease access to credit for coffee-sector businesses, allowing them to secure fresh financing as they take on new business opportunities.

The facility was launched on Thursday, October 1, during an International Coffee Day celebration in Kigali, where the Bank brought together its coffee-sector clients, partners and prospects to celebrate the industry and strengthen relationships.

The event also marked the kickoff of the Bank’s Customer Service Month, under the theme "The Extra Mile,” reflecting its focus on listening to customers, understanding their evolving needs and developing solutions that respond to their businesses.

The evening brought together bank officials and key players from Rwanda’s coffee value chain for coffee, conversations and an opportunity to exchange perspectives on the sector’s opportunities and financing needs.

ALSO READ: Bank of Africa Rwanda marks 10 years with its new Head Office inauguration

Serge Atikossie, Managing Director of Bank of Africa Rwanda, said the initiative was part of efforts to strengthen the bank’s partnership with businesses across the coffee value chain.

"A good bank must understand its customers, understand their businesses and anticipate their needs. This is the approach we want to take with the coffee sector,” he said.

The bank provides financing for working capital, coffee-season operations, equipment and investment, trade finance, international payments and cash management.

"We want to understand your business, your challenges and where you want to take your company. Because when you grow, we grow with you,” Atikossie said.

ALSO READ: Bank of Africa – Rwanda appoints new managing director to spearhead growth, innovation

New approach eases access to fresh credit

Patrick Ntwali, Head of SMEs at Bank of Africa Rwanda, said the bank revised its coffee campaign financing facility following feedback from businesses.

Previously, customers who repaid a 12-month facility early had to wait until maturity before accessing another one.

"We have listened to our customers’ feedback and responded to their needs,” Ntwali said.

Under the revised arrangement, businesses can obtain fresh financing against new contracts without waiting for the previous facility to mature.

"If you secure a new contract, you can come to us and we can finance it without requiring additional documents. You can obtain a new financing line against the new contract without having to wait for a specific period,” he said.

The facility is available to coffee-sector players, including washing stations and exporters. The bank also finances vehicles, warehouses and dry mills.

"For vehicles used to transport produce, for example, stakeholders can access financing with a 20 per cent contribution towards the collateral requirement,” Ntwali said.

Farmers can also access financing through arrangements with companies that provide them with agricultural inputs, he added.

Bank of Africa has partnered with the Development Bank of Rwanda (BRD) to address collateral challenges facing coffee businesses. Through the arrangement and the Bank’s partnerships, eligible coffee businesses can access financing of up to Rwf700 million, Ntwali said.

Through a partnership with the Development Bank of Rwanda (BRD), eligible coffee businesses can access financing of up to Rwf700 million with them contributing only 50% as the only collateral.

"Sometimes you may secure a contract that is larger than the value of your collateral, which can limit your ability to access financing,” he said.

The bank’s partnership with the coffee sector dates back to 2017.

The bank seeks to become one-stop financial partner for coffee businesses

Jean Havugimana, Executive Head of Business at Bank of Africa Rwanda, encouraged coffee businesses to use the bank’s wider range of financial services.

"We want to be your one-stop centre. When we finance you, we want you to grow safely and benefit from the full range of our products,” he said.

He also urged businesses to prepare their management accounts ahead of the next campaign.

"The 2027 coffee campaign starts today. Prepare your management accounts so that we can proceed with the facility for next year,” he said.

Diane Sebeza, Head of Treasury at Bank of Africa Rwanda, highlighted coffee’s contribution to the economy and the bank’s commitment to furthering the sector.

"Every year, coffee accounts for more than $140 million, representing 16 per cent of the agriculture sector. Bank of Africa is here to support you in developing this important sector,” Sebeza said.

Customer credits bank for growth

Eugene Higiro, a Bank of Africa Rwanda customer from Nyarugenge Coffee in Bugesera District, credited the bank with supporting his company’s expansion.

"What I appreciate about Bank of Africa Rwanda is the attention it gives us and the way it listens to our challenges. Once you meet the requirements for a loan, the process is straightforward, even when you need the funds urgently,” he said.

Higiro said the number of containers handled by his company increased fivefold over the past year.

"Last year, we saw a significant increase in our sales, from two or three containers to 15. That was a major increase, and we attribute part of that growth to our partnership with Bank of Africa,” he said.

"Our partnership will continue to grow as we discuss the challenges we face and identify solutions. The bank is helping us grow and develop, while also contributing to the development of the country,” he added.