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AfDB approves US $20-million line of credit to the Development Bank of Rwanda
The Board of Directors of the African Development Bank (AfDB) approved on Wednesday, May 17, 2017, a line of credit (LOC) amounting to US $20 million to the Development Bank of Rwanda (BRD) to finance projects or enterprises in various transformational sectors including in agriculture, energy and manufacturing, affordable housing and energy financing sectors, and aims to accelerate broad-based and sustainable economic transformation and poverty alleviation in Rwanda.
The facility will help strengthen and scale up support to critical sectors in Rwanda as well as support efforts to the realization of the Government of Rwanda’s development objectives under its “Vision 2020” that seeks to boost key priority sectors in Rwanda, and which will in turn provide broad-based economic development, employment opportunity and alleviate poverty. The facility will enhance BRD’s long-term liquidity and its ability to provide financing on appropriate terms to projects in these key priority sectors of the Rwandan economy. The LOC will have positive development impacts including availing scarce long-term liquidity and will support the growth of Rwandan businesses, including small and medium enterprises in the privates sector that have great potential to play an important role in social and economic development.
BRD, the only development finance bank in Rwanda, was established to finance Rwanda’s economic development objectives. In 2014, it reorganized its operations and repositioned itself to focus on the core mandate of supporting the country’s development. BRD’s strategy is implemented through the use of instruments such as loans, leasing, equity financing, guarantees, trade finance, capacity building and technical support. BRD has maintained a solid financial track record. It is well ranked by the Association of African Development Financial Institutions.
BRD seeks to spearhead Rwanda’s economic transformation and makes it a preferred private-sector development partner to the AfDB. The facility is well aligned to the AfDB’s Ten Year Strategy, as well as the Bank’s High 5 Strategic Agenda (High 5s) of Light up and power Africa, Industrialize Africa and Feed Africa.
This will be the fifth intervention by the AfDB to BRD which evidences AfDB’s continued long-term support to Rwanda’s economic transformation journey.