Development Bank of Rwanda (BRD) has entered into a $10-million (about Rwf7 billion) agreement with the Africa Export-Import Bank (Afrexim Bank) to boost the former’s lending to the private sector.
The deal was signed Tuesday in Cairo, Egypt, at the sidelines of the inauguration of Afrexim Bank’s headquarters and unveiling of the new president of the bank.
Alex Kanyankole, the BRD chief executive, and Emmanuel Murangayisa, the BRD chief financial officer, signed on behalf of the development bank in the presence of Sheikh Saleh Habimana, Rwanda’s envoy to Egypt, according to a statement.
Speaking after signing, Kanyankole commended the consistent support Africa Export-Import Bank offered to BRD and also appreciated the existing excellent mutual cooperation between the two banks.
“We are honoured to receive this amortising term loan facility that will be utilised to boost BRD’s efforts in providing long-term financing to acceptable sub-borrowers engaged in trade related activities in Rwanda, particularly small- and medium-scale enterprises,” said Kanyankole.
Kanyankole said “Afrexim Bank has consistently played a commendable role in strengthening the capital base of African Development Finance Institutions (DFIs), and this facility boosts our liquidity enabling increased access to finance for Rwandan businesses.”
Since 2012, Afrexim Bank has granted $15 million to BRD – in addition to the $10 million received on Tuesday.
In line with meeting the Vision 2020 and the second Economic Development and Poverty Reduction Strategy targets, BRD has strengthened its resource mobilisation efforts to facilitate its ambitious target of achieving authorised loan portfolio of Rwf65 billion (up from the Rwf60 billion registered in 2014) to finance private development projects during this year.
The Africa Export-Import Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors to finance and promote intra- and additional -African trade.
The bank’s two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organisation, and the Charter, which governs its corporate structure and operations.
About the bank
The African Export-Import Bank was established in Abuja, Nigeria, in October 1993 by African governments, African private and institutional investors as well as non-African financial institutions and private investors for the purpose of financing, promoting and expanding intra-African and extra-African trade. Afrexim Bank seeks be the trade finance bank for Africa, to stimulate a consistent expansion, diversification and development of African trade.
The bank also seeks to ensure a profit-oriented, socially responsible financial institution and a centre of excellence in African trade matters.