Musanze -The Business Development Fund (BDF), has pledged to extend guaranteed funds, credit lines and advisory services to upcoming small and medium enterprises (SMEs) in the country.
The CEO, of BDF, Innocent Bulindi, disclosed this, over the weekend, while meeting people from the private sector, banks, heads of cooperatives and business consultants from the Northern and Western provinces.
The meeting aimed at enhancing the lending mechanisms of financial institutions.
BDF offers up to 50 percent as a guarantee fund for the SMEs. It also offers an agricultural guarantee fund which covers productive projects developed in the agricultural value chain, working through banks and microfinance institutions.
“We are here to encourage MFIs, SACCOs, and banks to lend the highly needed credit to the SMEs. This is a sector highlighted as high risk, so in case these SMEs don’t fulfil the required obligations, we offer collateral,’’ Bulindi said.
The Fund was established by the government to stimulate the provision of financial services, mobilise resources for SME promotion, and stimulate bank credits for agricultural projects.
Emeritha Mukeshimana, who started her business with Rwf15m under the financial security of BDF, said that she has managed to emerge the best maize producer in Gakenke District.
“I used my plot of land to solicit for a loan, BDF offered me security. I have managed to support my family and my business has steadily grown,’’ Mukeshimana said.
The president of a maize producing cooperative, COAMIV, Thadeo Nibishaka, said that after successful establishment, they will request for over Rwf200m and begin producing for export.