In Rwanda, you can register a business in six hours. It is also very easy to get credit, according to the World Bank’s Ease of Doing Business index which ranks the East African country second when it comes to getting credit. The very good credit situation is getting better, with a new lending initiative by the Bank of Kigali set to back private sector investment across Rwanda.
“Rwanda’s medium term goal is to build a private sector led economy, support job creation and ultimately transform people’s livelihoods,” said Dr. Diane Karusisi, CEO Bank of Kigali. “This, to us is a very important transaction that will back Bank of Kigali’s efforts of expanding access to finance for private investment; we are looking forward to working closely with the European Investment Bank” .
The multilateral financial institution will support the new initiative by providing EUR 28 million ($30.8 million) alongside EUR 28 million being provided by Bank of Kigali for the nationwide programme.
“The European Investment Bank supports private sector investment across Africa. We are pleased to build on our strong track record in East Africa through this new initiative that will unlock economic opportunities and create jobs across Rwanda,” said Pim van Ballekom, European Investment Bank Vice President responsible for Rwanda. “Bank of Kigali has been recognised for innovation and commitment to financial inclusion and this new partnership reflects our shared desire to support private sector investment essential for economic growth in Rwanda.”
Under the new initiative private sector entrepreneurs and companies will be able to use loans in Rwandan francs to invest and expand activities across a range of sectors.