In a bid to boost Rwanda’s economic recovery and support emerging businesses, the Rwanda Development Board (BDF) has allocated over 30 billion Rwandan Francs to SACCOs (Savings and Credit Cooperatives) across the country.
The funds aim to provide small and medium-sized entrepreneurs—especially those in rural areas—with the capital they need to grow their businesses and improve their livelihoods.
Vincent Munyeshyaka, the Director General of BDF, is urging small business owners, particularly youth, women, and people with disabilities, to approach their local SACCOs and take advantage of these loans. The loans, which come with an annual 8% interest rate, are designed to help businesses recover and thrive, particularly those impacted by the economic downturn caused by COVID-19.
“This initiative was introduced by the Government of Rwanda to stimulate the economy and encourage new investments. We have allocated 30 billion Rwandan Francs, with 5 billion available for use between now and June 2025. We will begin accepting loan applications from SACCOs soon after our awareness campaign,” Munyeshyaka said.
SACCOs in Kigali City are expected to disburse a significant portion of these funds, as 80% of business activities in the country are concentrated in the city. However, recent data shows that Kigali has lagged behind other regions in terms of loan distribution, receiving only 7% of the total loans issued by SACCOs over the past 18 months.
One SACCO leader who has received praise for her efforts is Mapendo Olive, the Director of Gisozi SACCO in Gasabo District. Mapendo has been instrumental in encouraging business owners in local markets to take out loans after BDF provided the necessary collateral. Thanks to this initiative, more than 500 market vendors and small business owners have been able to expand their operations and recover economically from the pandemic.
“These loans have been a game-changer for small businesses in our area. A total of 972 million Rwandan Francs has been distributed, and the repayments are going well. The businesses that have received this support are slowly regaining their footing, and the local economy is starting to recover,” Mapendo said.
In Muhima, Nyarugenge District, another SACCO leader, Marie Chantal Twagirimana, shares similar success stories. Hundreds of traders in her area have been able to transform their businesses thanks to BDF’s collateral support. As a result, she expects even more entrepreneurs to come forward for loans in the coming months.
BDF is encouraging SACCOs to prioritize environmentally sustainable projects and is offering loans up to 5 million Rwandan Francs, to be repaid over five years. Priority is given to women, youth, and people with disabilities, with BDF offering collateral of up to 75% of the loan amount to those groups.
“By focusing on these key sectors, we can create a more inclusive and sustainable business environment,” Munyeshyaka emphasized.
In addition to supporting SACCOs, BDF is also working with other banks and financial institutions, where people can also access collateral for their loan applications. Since its inception 13 years ago, BDF has provided a total of 92 billion Rwandan Francs in collateral, which has enabled financial institutions to lend out a total of 228 billion Rwandan Francs to local businesses.
As Rwanda continues its journey of economic recovery, BDF’s funding program is offering critical support to entrepreneurs who are the backbone of the country’s economy. By empowering small businesses with access to capital, the initiative is helping to create a more resilient, inclusive, and thriving economic future for all Rwandans.
