The Rwanda Defence Forces (RDF) revealed on Sunday, May 5, 2024, that the joint security team had managed to smoke out and kill a majority of the Al-Shabaab terrorists hiding in Odinepa, Nasua, Mitaka, and Manika forests during a one-week operation that started on April 26.
During the operation, only a few insurgents are reported to have escaped the military onslaught.
“From 26 April to 3rd May 2024, a joint operation of Mozambique army and Rwanda security forces was conducted against Al-Shabaab terrorist insurgents in their hideouts in the dense forests of Odinepa, Nasua, Mitaka & Manika, Eráti district, Nampula Province, Mozambique,” RDF stated, adding, “Only a few insurgents managed to escape via the Lúrio river.”
The Al-Shabaab insurgency began in October 2017 in Cabo Delgado province, northern Mozambique.
The group, known locally as Ansar al-Sunna wa Jamma (ASWJ), is distinct from the Somali group of the same name, but both believe in global jihad.
The insurgency began with the group expressing discontent over lack of economic benefits from natural gas in the region, allegations of government corruption and marginalization of local communities.
However, over the years that followed the rebellion escalated with the militia employing violent tactics, including attacks on civilians and security forces and destruction of property.
The Mozambique government struggled to contain the militia forcing it to seek military help from Rwanda and the Southern African Development Community (SADC).
Rwanda deployed its forces in 2021. In February 2022, RDF announced that the security forces had captured new terrorist hideouts in Nhica do Ruvuma and Pundanhar general areas west of Palma District.
At the time, the terrorists fled the new positions towards Muidube District inside the SADC Mission in Mozambique (SAMIM) designated sectors of responsibility.
RDF confirmed that the terrorists were seriously weakened by the joint forces’ actions but cautioned the residents to remain vigilant at all times.
Sudanese investors led by Mohamed Ali Abuelgasim from the Silverback Investment Group praised Rwanda’s conducive environment and sound investment policies, which have enabled many businesses to thrive.
“The time for Africa has come. The time for Africa is here today. Before, people were investing in the United States, Europe, Canada, and slowly, slowly, the Gulf countries. But we all have brothers, sisters, cousins, and friends in those countries, and today they are suffering in those countries. It’s not easy. It’s really difficult.
“When I talk to somebody in the United States and I tell them about my life here, they think I am lying. I tell them we have fantastic weather, people are respectful, and things get done. Rwanda works; the system is wonderful. It is extremely safe. They think I am lying… It’s very easy to sell this country because it has value, and we immediately identified that value, and that is why we are all here today with our families and businesses,” stated Abuelgasim.
Abuelgasim was speaking in Kigali on Saturday evening during a dinner between the local and Sudanese investors hosted by Khalid Musa Dafalla Musa, the Sudan Chargé d’Affaires in Kigali.
During the event, Ambassador Dafalla also hailed the strong ties between Rwanda and Sudan, affirming that Rwanda had offered fertile ground for Sudanese investors, who have ventured into different sectors including construction, services, energy, renewable energy, education, healthcare, food, farming, export and import.
The seasoned diplomat, who has only been in the country for about two months, emphasized that as the fastest-growing economy in the region, Rwanda remains a beacon of opportunity and potential.
“There are a lot of opportunities for investments in Rwanda. The economy has increased by two digits, inflation is going down and the exchange rate of foreign currency is stable. So there is a package of incentives for our private sector to invest in Rwanda,” the envoy stated, adding that Rwanda’s young, skilled and progressive population was an added advantage to investors.
At the same time, Ambassador Musa Dafalla noted that there were many areas of collaboration in Sudan where Rwandan investors can tap into.
However, he pointed out that some of these collaborations have been hampered by the ongoing war, which he expressed confidence would be over soon.
“Sudan, we are number six in the continent in terms of GDP. We are number three in terms of total area, measuring 1 million square kilometers. Before the war two years ago, our GDP was $ 52 billions. We have untapped natural resources. We have a big fertile agricultural land. We have a population of 45 million.
“We have very skilled labour. For example, we have almost 50 universities. Our graduates from the faculty of medicine produce 5000 graduates every year. So you can imagine the size of the economy and how active the private sector is. Unfortunately, the war disrupted the growth process. But very soon, it will be over,” said the ambassador.
He noted that once normalcy returns in Sudan, Rwandan investors could explore huge investments in the country.
“Sudan will come back to the right track. Right now, we are preparing the ground for the private sectors of each country to work together. When circumstances come back to normal, Sudan will have a big share of the economy and a big volume of trade exchange. I would like to emphasize that we have real potential to do business together,” added the ambassador.
“We have real incentives, we have real interest in joining hands to work together for the best interest of the private sectors as well as for both countries to work together.”
Abdoul Karim Icyihubuye, the First Secretary of the Rwandan Embassy in Sudan, also expressed his optimism that the power struggle in Sudan, pitting leaders of the Sudanese Armed Forces (SAF) and Rapid Support Forces (RSF), will be resolved to create a conducive environment for business.
“We are sure this [conflict] is going to be resolved very soon so that we can continue to do business between Rwanda and Sudan. We have a lot of products to export to Sudan and there are many products we can import from Sudan,” said Icyihubuye.
On behalf of the Rwandan investors, Shyaka Michael Nyarwaya, the Commissioner of Political Integration International Relations at Pan African Movement Rwanda, welcomed collaborations with the Sudanese business community, saying there would be mutual benefit if the two sides worked together.
“We are going to have MoUs, we are going to have shareholders in our companies, or we can do shareholding in companies. We cannot take this for granted,” said Nyarwaya, who has interests in the logistics sector.
According to the Central Bank, Rwanda’s economy is projected to remain strong and resilient with the country’s GDP expected to grow by 6.6 per cent in 2024 after recording a remarkable growth of 8.2 per cent to hit $35 billion last year.
Foreign investments registered in Rwanda last year grew by 50 per cent to hit $2.4 billion (RWF 3 trillion)
A recent report from the Rwanda Development Board (RDB) shows that the investments are expected to create more than 40,000 jobs in the next five years.
In a recent interview with IGIHE, Khan revealed that the initiative will be implemented in collaboration with the private sector.
The ambassador said he is in talks with the Minister of Trade and Industry, Jean Chrysostome Ngabitsinze, as well as some companies, including the Bank of Kigali and the Africa Organization of Technology in Agriculture (AOTA), to ensure the initiative takes off.
“Whenever I visit Rwanda, I see people working manually in the agricultural fields. My observation is that farmers lack the resources to purchase machinery such as tractors or plows. Therefore, I am currently in discussions with organizations like AOTA, as well as several other entities including the Bank of Kigali and other banks, to facilitate Rwandan farmers to acquire agricultural machinery from Pakistan,” the ambassador stated.
If the initiative succeeds, farmers will be facilitated to buy advanced agricultural machinery from the South Asian country and pay the cost in affordable instalments.
“We are thinking that on a commercial level, something is already happening, but we want to offer a package for the farmers of Rwanda so that they can buy machinery on easy installments.
“For example, let’s say we a tractor priced at around $7,000 to $10,000 (RWF 8-10 million), which includes a plow, cultivator, harvester, and other necessary machinery. We can divide the total cost into different installments, allowing farmers to make a down payment and then pay the remaining amount monthly or every two months. We will involve banks, companies, and guarantors so that this becomes a reality,” Khan said.
Khan affirmed that the agricultural machinery in Pakistan is suitable for the Rwandan hilly topography, as attested by a 26-member delegation that visited the country for a three-day expo in January of this year.
“The agricultural machinery of Pakistan is very suitable for the Rwandan topography. Rwanda is known as a country of a thousand hills, with a climate often described as eternal spring.”
“With numerous water springs and ample rainwater, combined with the undulating terrain, our machinery is perfectly suited. It’s neither too large to navigate the mountains nor too small to be ineffective. We offer a medium-range machinery that aligns perfectly with Rwanda’s geography, soil, climate, and weather,” he stated.
At the same time, Ambassador Khan praised the strong trade ties between Rwanda and Pakistan, which have contributed to the growing export of tea to Pakistan since he assumed office about seven months ago.
“When I arrived here six to seven months ago, our bilateral trade was $30 million annually, and now it has reached $70 million in just six months due to our efforts. One of the major exports from Rwanda to Pakistan is tea. Pakistan is a nation of tea drinkers. We typically consume tea five times a day; it’s not just a habit but a ritual, a custom, and a tradition,” the ambassador explained.
He emphasized on the need for local traders to take advantage of Rwanda’s strong ties with Pakistan and the large population of 250 million people to export more products including avocado, coffee and legumes among other agricultural products.
“I am urging Rwandans to consider Pakistan as one of their destinations — to visit, explore business opportunities, and sell their products. While tea exports are already thriving, coffee and avocados have great potential. Avocado exports have begun, but there is room for growth. Currently, we are purchasing Rwandan avocados from other countries at high prices. Why not sell them directly to Pakistan?” he posed.
“Pakistan is a country of 250 million people so it’s a huge market for Rwandan business persons and they can bring good quality but cheap Pakistani products to Rwanda also. If you want to have textile, Pakistani textile is one of the world’s best textiles and the price is not that expensive as compared to other countries.”
While praising President Paul Kagame’s progressive leadership, the ambassador also noted that Pakistan is ready for research collaboration with the agriculture departments in Rwanda to facilitate the cultivation of rice varieties from Pakistan.
He also revealed that there are ongoing discussions about a Pakistani company setting up a free economic zone in Rwanda. He said he had identified and recommended two pieces of land in Musanze and Huye for the construction of the facility aimed at promoting economic growth, attracting foreign investment, boosting exports, and creating jobs.
The company was established in July last year following a partnership between Kenya’s electric bus pioneer, BasiGo, and Rwanda’s AC Mobility, popular with the Tap&Go transport service.
Currently, the company’s electric bus service is in the pilot phase in Kigali, with four electric buses on the road since November 23, 2023. The company operates a charging station at Magerwa.
According to the Rwanda Development Board (RDB), BasiGo aims to deploy 100 e-Buses on Rwandan roads between 2024 and 2025, before further expanding the fleet to 200 by 2026.
RDB is a government institution, mandated to accelerate Rwanda’s economic development by enabling private sector growth.
The government aims to convert 20 per cent of the public bus fleet to electric by 2030.
Last year, RDB welcomed the BasiGo and AC Mobility partnership, terming it as a cost-effective and sustainable alternative to diesel buses.
“This partnership of public transport technology providers in the region will accelerate decarbonization of the sector in Rwanda while also alleviating the current public transport shortage. RDB is intentional in its support towards this investment and growing a thriving market for electric mobility solutions in Rwanda,” said Clare Akamanzi, who served as RDB CEO from February 2017 to September 2023.
BasiGo was founded in Kenya in 2021.
Before establishing its second market in Rwanda, the company led the introduction of electric buses in Nairobi’s public transport fleet.
The company has deployed 19 electric buses across various routes in the capital Nairobi. It aims to grow the fleet to 1,000 buses across Kenya, Rwanda, Uganda and Tanzania in the next three years.
The firm offers electric buses to private bus operators through a mileage-based leasing model dubbed Pay-As-You-Drive, which makes electric buses affordable for private bus operators to purchase and use.
The agreement was reached during a recent meeting in Mombasa, attended by Rwanda’s Minister of Infrastructure, Jimmy Gasore; Kenya’s Roads and Transport Cabinet Secretary, Kipchumba Murkomen; and Uganda’s Minister of State for Transport, Fred Byamukama.
Economic Advisor Roger Te Biasu represented the Minister of Transport of the Democratic Republic of Congo at the SGR Cluster Ministerial Meeting held on Friday.
CS Murkomen expressed his confidence that the agreement between the four countries would revive the railway project, which has been delayed by a lack of funds.
“This historic move seeks to enable joint resource mobilisation, expedite the completion of the construction of the remaining SGR sections from Naivasha in Kenya to Uganda, Rwanda, South Sudan and DRC, and develop a roadmap that will fast-track its implementation,” said CS Murkomen.
The initial plans were to extend Kenya’s SGR line from Naivasha to Kampala, Uganda, before extending it to Rwanda and South Sudan.
However, the project has faced a five-year delay due to a lack of resources.
At the Mombasa meeting, the four partners agreed to pursue resource mobilisation for the high-speed railway as a joint project.
“It was a challenge to do the project piecemeal, we cannot have SGR in Malaba to Kampala if Naivasha-Malaba is not complete. That is why we are seeing funds to ensure the sections are done simultaneously,” stated Minister Byamukama.
The construction of Kenya’s SGR cost $3.6 billion, financed by a loan from China’s Exim Bank. The SGR has significantly reduced the cost of transporting cargo from the Port of Mombasa to the hinterlands.
According to CS Murkomen, the Friday meeting also sought to harmonise the planning and development of inland water transport infrastructure in order to provide seamless multimodal transport services and speed up the review of the Tripartite Agreement on water transport on Lake Victoria.
“As a country, we seek to leverage private sector partnerships in the extension of our SGR line in an effort to, not only ensure seamless cross-border movement of goods and people, but also create special economic zones along the corridor that will transform areas with stop stations into economic hubs,” added Murkomen.
The launch, attended by government officials and stakeholders, underscores a transformative shift in rural economic development through digital technology.
The college is envisioned as a critical catalyst in elevating the livelihoods of farmers by harnessing the power of digital platforms and empowering them with the necessary skills to navigate new technologies.
During the inaugural event on Tuesday, Mr. Ling Ji, Vice Minister of the Ministry of Commerce, emphasized the government’s dedication to revolutionizing the countryside’s economic model through cutting-edge industrial innovations.
“Our concerted efforts to modernize and adapt our strategies ensure that our rural communities are fully integrated into the digital age,” Mr. Ling remarked.
Aligned with President Xi Jinping’s strategy to leverage e-commerce for boosting rural economies and increasing farmers’ incomes, this initiative has garnered substantial governmental support.
Already, e-commerce infrastructure has reached 1,429 counties, impacting over 150,000 rural communities and significantly enhancing their economic stature.
“E-commerce has fundamentally transformed rural life by making quality food more accessible and affordable, while also markedly increasing agricultural revenue,” Mr. Ling added.
The academy promotes a direct-to-consumer model that allows farmers to bypass traditional, often less efficient, supply chains, thus maximizing their earnings.
The rise of live streaming e-commerce has been particularly transformative. This innovative method connects farmers directly with consumers, allowing them to present and sell their products in real time.
The success of this approach is evidenced by the substantial increase in agricultural sales and overall revenue in rural areas.
Enhancements such as the integration of big data and direct delivery systems have further optimized the efficiency and scope of rural e-commerce.
“Utilizing big data, we can streamline the supply chain and deliver products directly to consumers, thereby enhancing the purchasing experience and significantly boosting farmer incomes,” Mr. Ling explained, highlighting the consistent growth in retail sales through e-commerce over the past six years.
Looking forward, Mr. Ling reaffirmed the government’s commitment to expand this successful e-commerce model throughout China.
“Our aim is to extend this development nationwide, enhancing both digital and physical commerce capabilities in rural areas,” he declared.
Future initiatives include comprehensive training programs for e-commerce entrepreneurs, talent development, and the deployment of modern commerce facilities, such as widespread adoption of online payment systems.
As China continues to dominate as the world’s largest online retail market—a position it has held for 11 consecutive years—the significance of these developments cannot be overstated.
In 2022 alone, e-commerce transactions in China totaled an impressive 43.83 trillion yuan (approximately 6.17 trillion U.S. dollars).
The online sales of physical commodities now account for over 25 percent of the nation’s total retail sales of consumer goods, signifying the e-commerce sector’s role as a pivotal force in China’s ongoing digital transformation.
With the employment numbers in the e-commerce sector soaring from 47 million to more than 70 million over the past five years, and Silk Road e-commerce collaborations extending to 30 countries, the Village Live Streaming Academy stands as a vital link in nurturing the next generation of rural entrepreneurs, poised to sustain and advance China’s leadership in the global digital economy.
During his campaign for presidency towards the end of 2023, he stated that if the M23 armed group were to attack the city of Goma, he would ask the Parliament for permission to declare war on Rwanda. He declared, “If their first bullet lands in Congo, in Goma or if an area is captured, I will convene Parliament and request permission to declare war on Rwanda.”
In March 2024, Tshisekedi indicated that he had paused the decision to declare war on Rwanda, choosing the path of dialogue instead, but he noted it was the last chance he was giving .
In an interview with Le Figaro on May 2, 2024, Tshisekedi claimed that M23 does not exist; instead, he alleged that they are Rwandan troops that invaded his country. This is an accusation the Rwandan government has consistently denied, maintaining that it does not interfere in the affairs of another country.
President Paul Kagame, in April 2023, explained that M23 is a group composed of Congolese who were deprived of their rights and labeled as foreigners, leading them to take up arms in 2012 to fight against a government that had abandoned them.
He pointed out that the resurgence of this group, which had disbanded in 2013, was due to unresolved issues.
In March 2024, representatives from Rwanda and the DRC met in Luanda, Angola, to discuss how to resolve the conflicts between the two countries and restore security in the Great Lakes region.
Tshisekedi announced that these representatives plan to meet again soon, but he emphasized that the DRC’s persistent demand is for Rwanda to withdraw its troops from their territory, as Rwanda has repeatedly stated that it does not send troops to another country illegally and respects its sovereignty.
He stated, “There is an ongoing dialogue initiative led by the President of Angola, João Lourenço. Our representatives will travel to Luanda in the coming days to seek a solution.My request is simple: that Rwanda withdraw its troops from Congolese soil.”
The journalist asked Tshisekedi if war with Rwanda is possible if the Luanda talks do not yield the desired solution by the DRC government, to which he replied that war is indeed possible.
Tshisekedi added, “Absolutely, war is possible; I cannot hide that. But I want to delay the deadline as much as possible, focusing our efforts and economy on developing the 145 territories of the DRC, rather than on military engagements.”
In a March 2024 interview with Jeune Afrique, when asked about Tshisekedi’s threat of war, President Paul Kagame responded that the President of the DRC is capable of implementing what he says, but he cannot control the consequences.
The head of state said, “Tshisekedi could do anything as long as he seems unaware of the consequences of his statements as President of the DRC. For me, I see it as a significant issue that I need to address. It means that one night he might wake up and do something you wouldn’t think was possible.”
The relationship between Rwanda and the DRC has been strained since the beginning of 2022, shortly after M23 militants resumed fighting in North Kivu.”
Rwanda ranks second on the African continent in terms of ease of doing business and 38th globally, according to the World Bank.
One of the attractive sectors that continues to mint profits for Kenyan firms listed on the Rwanda Stock Exchange (RSE) is the banking industry, which has attracted major Kenyan banks among the more than 20 banks, microfinance institutions, and rural savings and credit cooperatives operating in the country.
Equity Bank which opened a subsidiary in Rwanda in the fourth quarter of 2011 continues to thrive in the local market due to its focus on empowering and elevating communities at the grassroots level.
With headquarters at Grand Pension Plaza in the capital Kigali, Equity has expanded to open 46 branches and 56 ATMs across the country.
Equity Bank Rwanda was ranked third among banks licensed by the National Bank of Rwanda in terms of reported total assets, amounting to RWF 682.9 billion as of September 30, 2023.
The bank completed a merger with Cogebanque on November 30, 2023, increasing its total assets to RWF 989.7 billion, positioning itself as the second-largest bank in the country by asset base.
Additionally, the bank reported growth in its deposits, reaching RWF 749.7 billion, along with an expansion to 4,516 agents and 1,777 merchants.
Kenya Commercial Bank (KCB) is another banking giant from Kenya operating a subsidiary in Rwanda.
KCB Bank Rwanda, which entered the Rwandan market in 2014, completed the acquisition and merger of the Rwandan lender Banque Populaire du Rwanda (BPR) in 2021 and renamed it BPR Bank Rwanda Plc.
The merger which took effect on April 1, 2022, positioned BPR Bank Rwanda Plc as the second largest bank in Rwanda, before Equity acquired Cogebanque and became the second largest bank in Rwanda in terms of asset base.
BPR, with over 150 branches countrywide, registered RWF 25.8 billion in profit after tax in 2023. The lender also recorded a significant increase in its total revenue, marking a 13 per cent rise to RWF 81.1 billion. The customer deposits also rose by 33.4 per cent to hit RWF 589 billion.
In the same period, the bank’s total assets also registered a substantial growth of 15.2 per cent to reach RWF 860 billion.
Other Kenyan banks with subsidiaries in Rwanda are I&M Bank and NCBA.
I&M Bank Group from Kenya ventured into the Rwandan market in 2012 with the acquisition of the majority stake in Banque Commerciale du Rwanda (BCR).
I&M Bank Rwanda’s net profit for the year ending December 31, 2023, increased by 15 per cent, largely driven by growth across all business segments.
In audited financial results announced on March 22, 2024, the bank disclosed that its profit after tax rose to RWF 10.7 billion from RWF 9.3 billion in 2022 with the headline earnings rising by 18 per cent to hit RWF 46.7 billion.
On the other hand, NCBA began operations in Rwanda in 2017 with a micro-finance license.
In March 2018, the bank merged with Crane Bank and received a license in July 2018 to operate as Commercial Bank of Africa (Rwanda) PLC. The bank later changed its name to NCBA Bank Rwanda PLC on October 15, 2019, after the Board of Directors’ resolution to harness the strengths of NCBA Group PLC.
The bank recently announced a net profit of RWF 6 billion for the year 2023, an increase of 70 per cent compared to the 3.5 billion Rwandan francs recorded in 2022.
Besides the banking sector, a number of Kenyan companies are operating in Rwanda in different sectors including the media, where the Nation Media Group (NMG) leads the pack.
NMG, which was listed on the RSE in November 2010, mainly operates a regional paper, The East African, in Rwanda.
The company also operated KFM radio station before it shut down in 2016 over financial constraints.
NMG has operations in print, broadcasting and digital media in Kenya, Uganda and Tanzania. The brands include NTV Kenya, NTV Uganda, Daily Nation (Kenya), Taifa Leo (Kenya), Daily Monitor (Uganda) and Mwananchi (Tanzania), among other products.
Other sectors Kenyan companies have invested in Rwanda are construction, insurance, aviation, education, agribusiness, tourism and hospitality.
In the insurance sector, Britam Insurance in Rwanda traces its roots to Kenya and is among the leading insurance firms offering services to Rwandan communities.
In the education sector, Mount Kigali University was previously a campus of Mount Kenya University in Kenya. On April 20, 2023, after an elaborate process that lasted more than five years, it was granted full accreditation to operate as Mount Kigali University.
This statement emerged just after he praised the enduring strength of the US-Japan relationship during Prime Minister Fumio Kishida’s state visit.
Despite significant partnerships with India, the US has voiced concerns over human rights and religious freedom there.
The White House clarified that Biden’s remarks were not meant to offend either nation.
Addressing an Asian-American audience at a fundraising event, Biden emphasized the upcoming US election’s focus on “freedom, America, and democracy,” attributing economic struggles in China, Japan, Russia, and India to their xenophobic attitudes towards immigration.
The BBC sought responses from the US embassies in Japan, India, China, and Russia but received none immediately.
US commentators criticized Biden’s comments. Elbridge Colby, ex-deputy assistant secretary of defense, expressed on X (formerly Twitter) that respectful communication is essential with key allies like Japan and India.
While Japan, India, and China host relatively few foreign workers, Russia relies significantly on migrant labor. Economic conditions vary across these nations, with India notably surpassing the UK as the world’s fifth-largest economy in 2023.
The White House denied any derogatory intent behind Biden’s statements, with national security spokesman John Kirby highlighting Biden’s commitment to US immigration policies and the value he places on international alliances.
Sadanand Dhume of the American Enterprise Institute noted that Biden’s remarks might resonate negatively in India, especially during a nationalist surge, potentially reinforcing perceptions of Biden’s unfriendliness towards India.
A recent US State Department report criticized India for significant human rights issues, which India rebuffed as biased.
Dhume suggested that the fallout from these comments is likely a minor disturbance and won’t deeply impact US-Indian relations.
Concurrently, Japan is adjusting its strict immigration policies to mitigate its declining population.
Biden, known for labeling Donald Trump as xenophobic in the 2020 campaign, faces criticism for his increasingly restrictive immigration measures amidst bipartisan dissatisfaction with his management of the US-Mexico border issues.
The event organized by the United States Agency for International Development (USAID) under the Feed the Future Initiative brought together more than 80 select MSMEs, often excluded from financing by commercial banks.
Representatives from Equity Bank and the Bank of Kigali attended the event held at the Four Points by Sheraton Hotel in Kigali, where they had an opportunity to showcase products targeted at the groups.
The event also offered the MSMEs an opportunity for agribusinesses to pitch their businesses and initiate Business-to-business (B2B) partnerships to expand their businesses.
The Bank of Kigali’s presentation focused on working capital facilities and how the bank can support agri-MSMEs to access working capital for daily operations.
The other products the bank showcased touched on financing for land acquisition, post-harvest activities, irrigation equipment, as well as the purchase of vehicles.
The bank also took the MSMEs through various unsecured facilities aimed at supporting their cash flow.
Alexis Bizimana, the Head of Agribusiness at the Bank of Kigali, said the bank offers different financing products for MSMEs, with interest rates ranging from 8 to 18 per cent per annum.
“We have different loan schemes for commercialization and delisting for agriculture transformation targeting production at an interest rate of 8 per cent. The second one is export growth funds, where we support surety for exporters at an interest rate of 12 per cent. We have an economic recovery fund for agri-processing available at 6 to 8 per cent. If we have customers under these categories; they are going to get concessional funding. Otherwise, if you come at a commercial rate, we give at an interest rate of 16 to 18 per cent,” explained Bizimana.
Michael Baingana, the Director of Finance and Investment at Hinga Wunguke, a USAID Feed the Future support program that enhances agriculture productivity and monetization, said there are still gaps that banks could take advantage of and develop more products targeting MSMEs in the agriculture sector.
“We thought that perhaps we could bring them [MSMEs] to the forefront because they potentially have some very good businesses in agriculture. We have people in production, processing, and other input suppliers, mostly women, people living with disabilities, and youths,” said Baingana.
“We are trying to see if the banks could unlock, in terms of understanding the potential in agriculture, and perhaps come up with new projects that could even help them make money from potentially very redundant but productive sectors.”
Uwera Emma, the Founder and Managing Director of I&J company, a seed company producing maize and soybeans, was among the MSMEs who attended the event.
She lauded the networking initiative, saying it helped raise awareness about financial products targeted at entrepreneurs like her.
“There are some financial institutions and banks doing things that are very beneficial to us, but you find that we are not aware. For instance, the bank I am using can only give me RWF 5 million without collateral, but these ones go up to RWF 17 million at an interest of about 9 per cent,” stated Emma.
Jessica Spence, the Economic Growth Office Director at USAID, emphasized that access to inclusive financing is crucial to improving food security and driving the economy.
“Most assessments show that one of the biggest problems is that financial institutions do not understand the agricultural sector and have limited products that speak to the needs of actors within the agricultural sector,” stated Spence, adding, “The good news is that financial institutions are beginning to crack the nut.”
