BRD and FAGACE sign cooperation agreement to support the private sector

{This Wednesday 21st May 2014, Development Bank of Rwanda (BRD) signed a cooperation agreement with the African Guarantee and Economic Cooperation Fund (FAGACE) to facilitate the financing of the short and medium term investment projects through the provision of financial security – particularly to small and medium enterprises (SMEs) in Rwanda.}

The signing took place in the BRD boardroom, with – the Chief Executive Officer (CEO) of BRD, Mr. Alex Kanyankole, and the Managing Director of FAGACE, Mr.Henri-Marie Dondra- representing the two parties.

In his remarks, Mr Kanyankole said, “Our cooperation focuses on two financial products – the guarantee line and the projects’ co-financing; which will facilitate BRD to effectively finance productive investments with special emphasis on SMEs.”

Kanyankole further explained: “The co-financing arrangement offers owners of medium and long term investment project with attractive financial conditions such as lower average interest rates and financial security to enhance their credit worthiness”

On his part, Mr DONDRA expressed his immense pride and commitment to supporting DFIs with financial support in FAGACE member countries which is crucial in ensuring access to funding for development projects.

“The private sector in Africa faces enormous challenges such as access to finance due to lack of collateral. Therefore, FAGACE works with DFIs such as BRD, to provide financial capital and security to the private sector aimed at contributing to poverty reduction through job creation” said Dondra.

This new area of cooperation is a revision of an earlier agreement signed in 2007, in which FAGACE extended a guarantee line of 1.1 Billion Rwandan francs to BRD.
Known by its French acronym, FAGACE (Fonds Africain de Garantie et de Cooperation Economique) is an International public institution for Economy and Finance, that has a mission to contribute to the economic and social development of its 14 member states including Rwanda.

The Development Financing Institutions (DFIs) – such as BRD – benefit from FAGACE’s different financial products that include financial security, interest subsidization, extension of the loan duration, direct financing equity participation and funds management on behalf of third parties.