I&M Bank Plc is expanding access to affordable financing and business knowledge across the country to help women and youth entrepreneurs grow their businesses, create jobs and strengthen their operations. The bank held a day-long training in Muhanga on Friday, October 16, bringing together entrepreneurs to learn how to manage their businesses, identify growth opportunities and access financing. The outreach follows an earlier activation in Rubavu, with Huye next on the bank’s schedule. Gertrude Majyambere, Strategic Partnerships Manager at I&M Bank Plc, said Muhanga was an important destination because it is a growing business city whose entrepreneurs also deserve opportunities to access financing and the support needed to grow their enterprises. “We want to impact more people, not only those that are capable, those in towns or the ones with bigger businesses,” Majyambere said. The training covered business opportunities, building sustainable businesses and systems, developing a growth mindset, and working with others despite differences. Participants also learned about financial management, bookkeeping, customer acquisition and retention. They interacted with bank officials to understand how I&M Bank operates, the financing opportunities available, application procedures and the requirements for accessing loans. Expanding access to affordable financing The outreach is part of the bank’s partnership with the Mastercard Foundation through a consortium led by the Development Bank of Rwanda (BRD) to improve access to finance for small businesses, particularly those in tourism, hospitality and food value chains. “We want to accelerate financial inclusion all across the country,” Majyambere said, explaining that the initial phase largely benefited bigger businesses rather than young entrepreneurs and rural enterprises, leaving the now targeted individuals with fewer opportunities. Under the KATAZA programme, the bank has reduced the maximum loan size from Rwf130 million to Rwf25 million to make financing more accessible to smaller businesses. The programme targets at least 500 micro, small and medium enterprises (MSMEs), of which about 26 per cent had been reached already. ALSO READ: I&M Bank, partners launch Rwf130m finance facility for youth, women in tourism KATAZA supports businesses in tourism and hospitality, including hotels, restaurants, coffee shops, bars and nightclubs, event organisers, creative industries and agribusinesses linked to tourism. It targets youth-owned businesses and prioritises young women, persons with disabilities, refugees and rural enterprises. Eligible businesses can borrow at an interest rate of 9 per cent, with no fees or commissions, for up to five years. KWIHAZA programme supports food and agricultural value chains, including avocados, tomatoes, onions, fisheries and fish feeds. Eligible borrowers can access up to Rwf150 million at an interest rate of 8 per cent for up to five years. Business training complements lending Majyambere said the bank’s role goes beyond lending, as some entrepreneurs need guidance on managing their finances, keeping records and making sound investment decisions. “We don't just give loans,” she said, explaining that the bank also offers advisory support to help businesses identify suitable investments and improve their operations. She said some entrepreneurs mix personal and business finances, lack proper records or struggle to attract and retain customers. These gaps can make it difficult to assess profitability and sustain growth, even when a business has potential. Entrepreneurs learn how to improve loan eligibility Florida Mukarugwiro, an avocado trader based in Muhanga who sources produce from different districts and supplies traders in Kigali, including exporters, said the prospect of accessing loans through an assessment of business performance was encouraging. “Often, when we need capital, we find ourselves at a loss as to where to secure a loan because lenders typically demand collateral, which we frequently lack,” she said. Learning that I&M Bank can assess our businesses based on cash flows, including income and expenditure, rather than relying on collateral, gives us hope of accessing the financing we need.” Mukarugwiro said she had previously been discouraged from seeking loans to support a seasonal seedling nursery because of demanding requirements, despite believing the business was profitable. Following the training, she plans to record her sales, income and expenses to understand her business's performance and provide evidence of its financial position when seeking financing. Florentine Mujawumuremyi, a member of Abakundumusaruro Shyogwe cooperative, which is engaged in avocado farming in Ruli, Muhanga District, said the training highlighted the need to document business transactions. “The most significant thing I have gained is the importance of recording business transactions. We realised that relying solely on verbal communication or informal arrangements creates challenges,” she said. Mujawumuremyi said the cooperative had previously applied for loans but failed to meet the requirements. She said members would now work on improving their records and setting clear goals to demonstrate the cooperative’s performance and meet financing criteria. She plans to share the lessons with members who did not attend the training and discuss how the cooperative could tailor its plans to meet financing requirements. Supporting businesses and job creation Majyambere said I&M Bank had been working to strengthen its MSME offering since 2019, aiming to support not only established businesses but also smaller enterprises that need relatively modest amounts of capital to purchase stock or expand. The bank also tracks employment among its borrowers, whose businesses have contributed to more than 3,000 jobs so far, overall.
