December 18, 2023: The Government of Rwanda together with the Development Bank of Rwanda (BRD) and KfW, acting on behalf of the Federal Republic of Germany, signed a grant agreement to establish a new partial credit guarantee facility called “Export Credit Guarantee Facility” (EGCF) to support employment creation in both growing and export-oriented small and medium sized enterprises (SMEs) in Rwanda, including women-led companies. The signing ceremony at MINECOFIN was attended by several high-level authorities from various institutions, among them Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana, CEO of BRD Ms. Kampeta Sayinzoga and the Parliamentary State Secretary of the German Federal Ministry of Economic Cooperation and Development (BMZ), Dr. Bärbel Kofler.

A grant of total EUR 15.6 million (approx. Frw 20 billion) is made available by the German Financial Cooperation, implemented by KfW on behalf of the German Government. The facility will furnish the banking sector through BRD with tailor-made guarantee products, incentivizing them to provide higher financing volumes and longer tenures to their clients, and hence enhancing their access to finance and other financial services.

The establishment of the EGCF is a continuation of a long-lasting and successful relationship between BRD and KfW which inter alia also introduced the Export Growth Facility (EGF), a vehicle which provides adequate financial services to SMEs through the Rwandan banking sector since many years.

Speaking after the signing event, Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana welcomed the EGCF and expressed his expectation that it will allow Rwandan businesses to access new markets and expand their operations, ultimately increasing the country’s overall export revenues.  “ECGF will help to create new jobs and foster economic growth by providing a more stable business environment that will support the economic empowerment of the Rwandan people,” Minister Ndagijimana added.

Kampeta Sayinzoga, CEO of BRD, highlighted BRD is deeply committed to fostering sustainable economic development within the region and beyond. ECGF aligns with the Bank’s overarching goal of promoting inclusive growth through strategic interventions in key sectors such as manufacturing, agriculture, and technology- especially SMEs seeking to venture into export markets. Through tailored financial solutions and advisory services, BRD aims to empower SMEs with the tools they need to compete internationally and contribute significantly to trade diversification and job creation. This facility plays a pivotal role in mitigating risks associated with international trade. By providing credit guarantees to exporters and financial institutions, we are enabling businesses to expand their global reach and seize opportunities in foreign markets.

Dr. Bärbel Kofler, Parliamentary State Secretary of the German Federal Ministry for Economic Cooperation and Development (BMZ) commended the innovative approach of the EGCF as a testimony to the continuing strong ties between Germany and Rwanda and the long-lasting collaboration between KfW and BRD in the area of Financial Systems Development. She particularly welcomed the improvement of access to finance for women-led enterprises as a contribution to the new strategy on feminist development policy, which is of particular importance to the German Government.