This week, Business Development Fund (BDF) launched as an autonomous company that will support the establishment and growth of Small and Medium Enterprises (SMEs).
The Fund, that has been managing Rwf11billion, will now act as a credit guarantee facility, offer lines of credit and matching grants, as well as advisory services to SMEs.
The spectrum of services offered by the Fund, would not have come at a better time. According to the Private Sector Federation, the failure rate of SMEs stands at 82 percent, with many of them not surviving their first year of operation, mainly due to lack of skills.
The Fund’s services, especially advisory, will complement traditional commercial banking services.
Understanding clients’ needs and aspirations through business advise and related services goes a long way in boosting the relationships between the Fund and the business community, which is key to the performance of the business.
With the SMEs able to access all the services, there is no doubt they will not only survive, but will also generate profit, offer employment, stimulate the growth of the private sector and facilitate the country’s development as SMEs are considered the engine of the economy.