Opening Doors for Rwanda's Smaller Businesses

A new generation of entrepreneurs is building a dynamic economy in Rwanda, where IFC is helping provide the financial support and specialized business training they need to succeed

IFC’s recent $2.5 million investment in Urwego Opportunity Bank of Rwanda will help improve access to finance for smaller businesses and other borrowers, especially those living and working in rural areas. 

The investment, a five-year, local currency loan, will allow Rwanda’s only regulated microfinance bank to increase lending to smaller businesses, building a foundation for economic growth and job creation in a country where half the population has no access to financial services.
 

The Urwego Opportunity Bank’s lending portfolio includes standard loans and innovative products, including a home improvement loan and a bicycle loan.

Jeffery Lee, President of Urwego Opportunity Bank, said, “IFC’s investment will allow us to provide longer term financing to support portfolio growth, and fund longer tenor products. UOB aims to increase financing options for micro, small and medium enterprises in rural areas. We believe that a regulated approach to microfinance is most effective to maximize outreach and support entrepreneurial activities among the poor.”

‘Times of Business’

One entrepreneur who has benefitted from IFC’s efforts to strengthen smaller businesses in Rwanda is Annette Karenzi, owner of the Elegencya, a small hotel in the country’s capital, Kigali.

Annette recently completed business training using Business Edge and the SME Toolkit, courses that were developed by IFC together with IBM and local partners, which tackle a variety of topics including budgeting, marketing, and management skills.

Using these training tools, Annette learned how to use a business plan to chart her future.

"When I was growing up, business was basically for people who were not fortunate enough to finish school or get government jobs,” Annette said. “But gone are those days. Today we are in times of business.”

Helping small and medium enterprises access loans and other support is a strategic priority for IFC in Africa because …lack of access to finance is a key constraint to economic growth and a barrier preventing people from moving out of poverty.
 

IFC’s investment compliments the Government of Rwanda and DfID’s ‘Access to Finance Rwanda’ (AFR) program, aimed at increasing access to formal financial services from 21% to 30% by 2014.

For more information contact:
Neha Sud
Communications Officer
Nairobi, Kenya
Email: nsud@ifc.org