Africa-Press – Rwanda. The Rwandan government has decided to integrate the Business Development Fund (BDF) into Development Bank of Rwanda (BRD), the Ministry of Finance and Economic Planning announced on Thursday, July 31.
The ministry says the move is aimed at creating a stronger, more efficient institution better positioned to deliver greater value to entrepreneurs and businesses nationwide. BDF’s mandate was mandate to support small and medium enterprises without sufficient collateral for bank loans.
“This strategic move combines BDF’s grassroots reach and focus on Micro, Small, and Medium Enterprises (MSMEs) financing with BRD’s robust infrastructure, sector expertise and large-scale lending capabilities. It reflects the government’s commitment to streamline service delivery and improve institutional effectiveness,” reads part of a statement announcing the decision.
Targeted benefits for businesses, it said, include faster credit guarantees. This is expected to ensure reduced processing times for entrepreneurs seeking loans through partner banks and microfinance institutions.
Tailored financing includes flexible options for startups, growing businesses, and large-scale projects.
Expanded outreach will ensure improved access in rural and urban areas through digital platforms and local presence.
The integration, according to the statement, is part of the broader national initiative to enhance access to finance for private sector development, in line with the National Strategy for Transformation (NST2) and Vision 2050.
To-date, BDF has supported over 40,000 businesses with credit guarantees, while BRD has financed key sectors like agriculture, manufacturing, and infrastructure.
It has contributed to the creation of 330,000 jobs since its inception in 2011.
“Together, they form a stronger institution to advance Rwanda’s economic ambitions. The newly strengthened BRD will continue to serve as Rwanda’s leading development finance institution, driving inclusive growth across the country,” the ministry said.
The fund had faced challenges in the management of the Credit Guarantee initiative that was initiated to address SMEs challenges of insufficient collateral to access credit.
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