Enablis East Africa and Bank of Kigali (BK) signed an agreement that will enable the former’s entrepreneurs to access loans from the latter.
Enablis will provide a guarantee that will allow BK to consider the entrepreneurs’ funding application favourably.
According to the deal, which is worth Rwf480m, an Enablis member entrepreneur is allowed to borrow up to Rwf60m from BK.
Enablis will provide 50 per cent guarantee of the total amount borrowed, hence enabling entrepreneurs to receive financing without raising collateral that would otherwise be required by the bank.
“This agreement is an important milestone for both parties and it is the third arrangement of its kind in East Africa, following the one in Kenya and Tanzania,” said Enablis Global Chair.
The firm aims to support entrepreneurial talent through a platform for networking, capacity building and access to a pool of advisors.
BK’s Managing Director, James Gatera, welcomed the partnership, saying that it will boost the lender’s micro lending segment.
“The partnership will help improve access to finance for entrepreneurs and ensure sustainability of their businesses through capacity building and development which comes with a guarantee scheme,” Gatera said.
He further mentioned that the partnership would address the many challenges facing entrepreneurs in the country.