According to the signing agreement yesterday, the fund, first regional financing under EIB East Africa COVID-19 Rapid Response Facility, will be managed by Bank of Kigali (BK).
The bank will provide new credit lines for Rwandan companies of which a minimum of 30% financing will target female economic empowerment.
“COVID-19 pandemic has disrupted Rwandan businesses which has led to a negative economic impact on our country. The European Investment Bank partnership with Bank of Kigali and KCB-Rwanda will ensure that businesses can continue to invest and more specifically, targeted support will also improve access to financing by companies that contribute to the economic empowerment of women and girls,” said Minister of Finance and Economic Planning Uzziel Ndagijimana at the signing of the agreement.
”I congratulate all those who have enabled Rwanda to be the first country to benefit from the EIB’s East Africa COVID-19 Response Facility. I also commend EIB’s support in the context of COVID-19 response through the support to National Health Referral Laboratory Project which will complement other investments that Government and European Investment Bank are jointly making in the sectors of Energy, Water and Sanitation.”
Dr. Diane Karusisi, Bank of Kigali Chief Executive Officer said the deal is a valuable partnership.
“We are delighted to partner with the European Investment Bank in financing Rwandan businesses that were affected by the pandemic, especially women-led businesses. The funds provided will enable our clients to stay afloat and continue progressing steadily even after the COVID-19 crisis. This facility clearly compliments the Government of Rwanda and Bank of Kigali’s efforts to stimulate the country’s economic recovery,” Karusisi said.
Under this arrangement, Bank of Kigali will receive EUR 40 Million, and will contribute a matching EUR 40 Million to the program. KCB will receive EUR 15 Million. The streamlined financing programme will contribute to job creation and support firms in sectors most impacted by COVID-19 challenges.