News Column

Rwanda : MICROFINANCE refinancing best tool for BRD to boost outreach to rural investment

July 25, 2014

When used properly, microfinance which can build the capacity of the poor masses to generate jobs and produce wealth in a sustainable way, is being seen as an indispensable tool to alleviate poverty in Rwanda.

As the Rwandan Government's investment arm, the Development Bank of Rwanda (BRD), through its revolving fund, had already identified the refunding and the capacity building for microfinance institutions (MFIs) as one of the chief pillars that will support the growth of the sector and enhance MFIs operations and performance.

Since the BRD has Rwf15 million mark as the least amount it can lend to an individual or a business, it does not reach a certain class of prospective clients' mostly small-and-medium enterprises (SMEs), which equally invest on financially-viable projects but with small amounts of fund.

Hence, microfinance refunding is the best tool for BRD to boost its outreach to rural investment with greater impact on both depth and width.

A senior official of BRD said the bank concentrates on amplification of its refunding system through which MFIs have been financially empowered to ease SME growth, particularly targeting women and youth.

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Source: TendersInfo (India)

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