The European Investment Bank (EIB) has agreed to support a new lending initiative by Bank of Kigali to back private sector investment across Rwanda.
According to a statement, the EIB will provide €28m (approx Rwf24 billion) alongside another €28m to be provided by Bank of Kigali for the nationwide programme.
This represents the first Rwandan operation under the EIB’s second East and Central Africa Private Finance Facility, a €230-million regional lending scheme that supports private sector investment in Rwanda, Burundi, Uganda, Tanzania, Kenya and the Democratic Republic of Congo.
The European Investment Bank is Europe’s long-term lending institution, owned directly by the 28 European Union member states and the world’s largest international public bank.
“Rwanda’s medium term goal is to build a private sector led economy, support job creation and ultimately transform people’s livelihoods. This, to us is a very important transaction that will back Bank of Kigali’s efforts of expanding access to finance for private investment; we are looking forward to working closely with the European Investment Bank,” Dr. Diane Karusisi, CEO Bank of Kigali is quoted in the statement as saying.
Speaking on behalf of the European bank, Pim van Ballekom, the EIB Vice President responsible for Rwanda said it was a privilege for them to be part of the programme.
“We are pleased to build on our strong track record in East Africa through this new initiative that will unlock economic opportunities and create jobs across Rwanda. Bank of Kigali has been recognised for innovation and commitment to financial inclusion and this new partnership reflects our shared desire to support private sector investment essential for economic growth in Rwanda,” said Ballekom.
Micheal Ryan, the Head of Delegation of the EU to Rwanda pledged continued collaboration between the EU and Rwanda’s partners to spur economic development in the country.
Under the new initiative, private sector entrepreneurs and companies will be able to use loans in Rwandan francs to invest and expand activities across a range of sectors.