Rwanda Development Bank (BRD) expects to expand the Export Guarantee Fund (EGF) supporting exporters (EGF) where its capacity will grow from Rwf 8.5 to 15 billion to mitigate the balance of trade deficit.
In the first year, EGF had Rfw 500,000,000 from the government while BRD contributed Rwf 500,000,000 that would be used in three installments including increasing productivity, improving the market and exporting goods.
In the second year, the government provided Rwf 1 billion while BRD will also contribute Rwf 1 billion added to Rwf 7.5 billion from a German bank.
The National Bank of Rwanda (BNR) recently announced that within the first 11 months of 2016 , the gap between exports and imports reduced by 5.1% down from USD 1,602.21 million to USD 1.519.97 million.
This means that the value of imports was reduced by 2.4 % while exports increased by 6.1%.
As Rwanda signed agreements with German bank , the CEO of BRD Alexis Kanyankole said that the fund will help private investors to get facilities of accessing loans at reduced lower interest rate from the prevailing 18% or 19% to 11% and 12% accorded by the Fund.
Some small and medium entrepreneurs had been blaming the Fund for supporting only entrepreneurs with huge investments.
Kanyankole explained that the most important criteria for accessing support from the Fund is designing a bankable commercial project that is feasible.