Microfinance is an indispensable instrument for alleviating poverty in
Through its revolving fund, the
"Refinancing MFIs primarily aims at rural development as per the second Economic Development and Poverty Reduction Strategy (EDPRS II) objectives.
"The MFIs have contributed to the multiplier effect through financing micro-projects that promote value addition and generate revenues through taxes. They also increase employment, as well as entrepreneurship, which are in line with the Bank's financing mandate" Manzi said in an interview with Business Times this week.
Because of the nature of MFIs operations and lending, it is easier for them to extend loans (as small as Rwf100,000 or less) to micro-projects since the MFIs are located all over the country.
Manzi added that since 2010, the bank has pumped over Rwf10 billion into refinancing MFIs, including Coopedu, Zigama CSS,
Samuel Munyankuburwa, the managing director of Goshen Finance, said they have been accessing credit facilities from BRD since 2010.
"We look forward to continue growing our relationship with the bank. Their terms are easy to go with which enables us to borrow and pay without experiencing difficulty," he said.
Munyankuburwa said they were reviewing their current loan performance to see whether they can increase their portfolio in order to reach out to more financially under-served segments of the population.
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