Rwanda’s export industry could be stimulated by the Development Bank of Rwanda’s (BRD) initiative to reduce interest rates for local exporters.
Alex Kanyankole, the BRD Chief Executive officer, said “The interest rates will be reduced from 16.5% to 10% to facilitate the export sector and to re-energize the Export Growth Facility fund and boost competitiveness of the country’s export sector.”.
Kanyankole, said the move is designed to help the small and medium entrepreneurs (SMEs) with a turnover of at least $ 50,000 and $1million to have smooth access to credit and hence translate into more job opportunities and contribute to poverty reduction and a faster economic growth.
Last year the government channeled funds, through the Development Bank of Rwanda (BRD), to facilitate exporters especially the SMEs have access to credit.
To implement this facility, BRD has agreed that, this facility will be made available to identified export oriented SMEs through a selected number of partner financial institutions such as BPR, I&M Bank, Eco Bank and Urwego Opportunity Bank.
Meanwhile, Benjamin Manzi, BRD’s Head of investments, said the Bank will provide technical assistance to stakeholders to help boost their capacity to develop products that respond to SMEs needs.
The funds intended to facilitate firms in the horticulture, agro-processing, artisanal mining and manufacturing sectors, so we want to ensure that we assist players in this sector to become more innovative and boost their productivity and encourage private sector investment in exportation,” Manzi said.
Government also plans to enhance honey, handcrafts and horticulture production and exports as part of the new strategy. The local export industry has been hold back due to the lack of affordable credit facilities, limited markets, high taxes, and lack of skilled manpower.