FINA Bank Rwanda (FBR) and KfW Entwicklungsbank Development Bank have signed a financial agreement worth Rwf 490.4 million to develop Rwanda’s Micro, Small and Medium Enterprises (MSMEs).
The funds will be used for the apprenticeship and training programs in order to help ensure the successful implementation of FINA Bank’s microfinance program.
KfW supports FINA Bank in its future efforts to become increasingly active in the field of microfinance and the promotion of the private sector. In same context, early this year, a subordinated loan contract, worth Rwf1.6 billion (€ 2 million) was entered between the two institutions.
FBR’s Managing Director, Steve Caley said that they are very grateful to have KfW officials in the country to tap from their knowledge.
“They have done a very good job by training not only our staff but also the SMEs we lend money. This gives us confidence that the funds will be well spent because by this we know that the loans are given to trained people,” Caley added.
The fund’s objective is to enhance access of MSMEs to credit and to build a profitable and sustainable Small and Medium Enterprises (SMEs) lending business in a downscaling approach.
This approach includes the establishment of a specialized microfinance department in FBR and aims at cash flow-based lending instead of normal banking security.
The Director of KfW Kigali Office, Stephan Klingebiel said that Micro, Small and Medium Enterprises are important target group when it comes to sustainable economic development.
“By this, we are very glad working together with FINA Bank to strengthen these enterprises in giving them the opportunity to access credits and doing business,” Klingebiel said.
KfW Entwicklungsbank is acting on behalf of the German government and is responsible for the implementation of German Financial Cooperation.
FINA Bank is an SME bank with a network of branches in Rwanda, Uganda and Kenya.