{{The Development Bank of Rwanda (BRD) has registered remarkable performances in funding developmental projects in the priority sectors of the Rwandan economy.}}
In an interview with the media, Manzi Benjamin the Director of Investments in (BRD) attributes the achievement to the practice of maintaining better management of the bank’s current portfolio that increased repayments from existing customers ultimately boosting financing of other new projects in the bank.
As a policy lending institution, Development Bank of Rwanda (BRD) is positioned to spearhead development of the economy through provision of financing to projects that speed up the development of the economy. The bank works in order to meet its mandate of playing the foremost role in development of the country.
Last year, the bank registered remarkable performances in funding developmental projects in the priority sectors of the Rwandan economy. This achievement was attributed to the practice of maintaining better management of the bank’s current portfolio that increased repayments from existing customers ultimately boosting financing of other new projects in the bank.
Much emphasis has been put on real estate development through financing developers however the bank is to start its affordable housing estate development soon after raising funds for this specific project to facilitate in closing the gap in the housing demand.
The bank has also strengthened its position of being at the forefront of financing SMEs of all kinds most especially agro-processing, manufacturing and services through collaboration with the Business Development Fund (BDF) which offers guarantees thus mitigating the major challenge for startups projects (lack of collateral/security to access finance).
The management of the bank will continue to solicit for more funds within the current financial year to consolidate the economy through access to developmental financing.
To review the bank’s performance in 2013 (with particular focus on status of investments financing), Mr. Manzi reveals tips on accessing investment loans, and re-affirms the bank’s commitment to increasing its investments in developmental projects in 2014 and other years ahead.
{{Role does the Investment department play in the growth of the bank and of the national development}}
{{MB}}: As a development bank that boosts the economy through availing financing, we engage our funds in priority sectors of the economy that engineer development of other sectors through value addition. In other words, BRD finances project promoters (entrepreneurs) as long as their project concepts are in line with developmental mandate of the bank.
Precisely, developmental projects are those that ‘add value’ to the locally existing or imported raw materials, provide employment for Rwandans as well as creating wealth by using imported technology as a tool to enhance knowledge and experience to Rwandans.
{{An overview of total investments made in 2013 and some of other achievements registered}}
{{MB}}: In 2013, we were satisfied with our performance as we achieved many of our set targets and we have high hopes for this year as well. Looking at our initial projections for 2013 in comparison with financing approvals, we had set a target of 45 Billion Rwandan francs for approval and achieved 60 Billion Rwanda francs worth of loan approvals thus a 130 percent achievement rate.
Among these, the biggest investment approvals were registered in the commercial and hotels, closely followed by manufacturing and industries, and agriculture and livestock sectors with 65 percent of approved loans disbursed to the beneficiaries.
In line with EDPRS II, these investments were to raise jobs to curb unemployment and in this regard, investments approved directly created an estimated 4,000 permanent jobs and 10,500 temporary jobs. It must be noted that there are so many other jobs created indirectly that were created though it is difficult to ascertain the specific number.
Our statistics showcase a positive trend on national revenue reserves with projected 8.8 Billion Rwandan francs worth of taxes realized from the total investment approvals made in 2013 as the nation drives to self-reliance.
{{The bank’s main focus of investment financing in 2014 and the years ahead as well.
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{{MB}}: Our focus still remains the same, we plan to pump more funds in developmental projects in the priority sectors as mandated to pave Rwanda’s development path.
To be precise, our focus will be on affordable housing as well as ensuring SME development to achieve the set targets on achieving more jobs and reduce poverty through raising the standards of living as mandated by the EDPRS II.
We will also focus on amplification of our refinancing system through which Microfinance institutions will be financially empowered to efficiently cater for prospective clients in need of small investment loans to facilitate SME growths especially targeting women and youth.
The bank is ready to make investments in green energy especially financing of micro-hydro power plants to boost the energy sector. We have signed an MOU with FONERWA (Environment and Climate Change Fund) to boost financing of this sector
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