The development was announced at the launch of the second phase of the Economic Recovery Fund officiated by Prime Minister Dr. Edouard Ngirente on Wednesday 18th May 2022 in a ceremony held at Kigali Serena Hotel.

The fund was created in June 2020 to mitigate effects of COVID-19 with initial Rwf100 billion to support sectors of the economy hit hard by COVID-19 pandemic.

The fund supported teachers, drivers, hotels and medium enterprises among others during lockdowns.

Beneficiaries of the fund launched in 2020 were given a three-year tenor.

Of these funds, Rwf42 billion was disbursed to 13 hotels across the country.

In public transport, the Government disbursed Rwf7.7 billion to 56 people to clear outstanding debts owed to banks and received additional support of Rwf11 billion.

The education sector also received Rwf13 billion funding distributed among 116 private schools including universities.

Among others, Rwf11 billion was disbursed to 156 companies from the private sector affected by COVID-19.

A total of 52,000 small and medium enterprises also benefitted from the fund with Rwf6 billion.

Speaking at the launch of the second phase, Prime Minister Ngirente highlighted that the first phase played a tremendous role in the recovery process of the country’s economy.

He underscored that the fund will draw special emphasis on supporting new investments or those seeking to expand existing businesses to remain relevant to the country’s economic recovery.

The Premier presented the status of the economy focusing on the current increase of commodity prices and also showing the measures taken by the Government of Rwanda to ensure that Rwandans do not continue to suffer from the burden of rising prices.

Among others, he noted that the prevailing inflation is a global concern and is related to various challenges including trade logistics, the war in Ukraine, and the on-going Covid-19 Pandemic.

Prime Minister Ngirente highlighted that the first phase played a tremendous role in the recovery process of the country's economy.