The government has approved an additional $80 million (approximately Rwf118 billion) in financing to help businesses access affordable loans, cover operating costs and invest in expansion. The approval was published in the Official Gazette on October 15, through Law No. 052/2026 of October 9, which ratifies a financing agreement with the World Bank’s International Development Association (IDA). ALSO READ: House approves Rwf137bn World Bank loan for business financing The funding is the second additional financing for the Access to Finance for Recovery and Resilience Project, launched in 2021 to help businesses recover from the economic disruption caused by the Covid-19 pandemic. “The project has helped many businesses, but we continue to receive applications from businesses that meet the requirements and need additional financing to access affordable loans. In response, IDA agreed to provide Rwanda with additional financing,” Finance Minister Yusuf Murangwa recently told the Chamber of Deputies. ALSO READ: Govt approves Rwf5 billion scheme for SME growth He said the financing would be repaid over 40 years, with an 11-year grace period and zero interest. What will the money finance? The agreement allocates $31.5 million to direct lending and loans through financial intermediaries for working capital and investment. ALSO READ: Lower House approves Rwf500bn financing to drive job creation The funding will help businesses meet operating costs, purchase assets and expand their activities. Micro and small enterprises will also be able to access credit through microfinance institutions to meet urgent liquidity needs. A further $14 million will capitalise a partial credit guarantee facility intended to reduce the risks lenders face when financing small and medium-sized enterprises (SMEs). Another $3 million is earmarked for a bridge-lending facility to help vulnerable SMEs meet debt-servicing costs when affected by relatively frequent and moderate shocks. The largest allocation, $30 million, will support a junior credit enhancement facility designed to help participating financial institutions lend to SMEs and large companies through financing arrangements involving private investors. Who will implement the project? The Development Bank of Rwanda (BRD) will implement the project’s main financing components. Beyond lending, the programme provides for technical assistance and business development services to enterprises with growth potential. It will also support institutional capacity-building, awareness campaigns and monitoring of the project.
