{"id":107551,"date":"2025-08-15T15:12:19","date_gmt":"2025-08-15T15:12:19","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/committee-established-to-oversee-bdf-transition"},"modified":"2025-08-15T15:25:17","modified_gmt":"2025-08-15T15:25:17","slug":"committee-established-to-oversee-bdf-transition","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition","title":{"rendered":"Committee Established to Oversee BDF Transition"},"content":{"rendered":"

Africa-Press – Rwanda. <\/strong><\/span>A national oversight committee has been established to supervise and guide the transition process for integrating the Business Development Fund (BDF) into the Development Bank of Rwanda (BRD), the Ministry of Finance and Economic Planning announced in a statement to The New Times.<\/p>\n

The committee includes representatives from the National Bank of Rwanda (BNR), the Ministry of Finance and Economic Planning, the Ministry of Trade and Industry, the Business Development Fund (BDF), and the Development Bank of Rwanda (BRD), among others.<\/p>\n

\u201cA committee chaired by BRD is overseeing the due diligence and integration processes and is preparing a detailed transaction plan,\u201d the statement reads in part.<\/p>\n

ALSO: BDF integrated into BRD as govt targets efficient business financing<\/p>\n

According to the ministry, the core mandate of the BDF \u2013 supporting access to finance \u2013 will remain after the integration. However, delivery is expected to improve through greater collaboration with SACCOs and the private sector.<\/p>\n

The Ministry of Finance explained that the integration primarily aims to improve efficiency and eliminate overlaps, as BRD, which already owns 45 percent of BDF, is now launching its own guarantee fund.<\/p>\n

\u201cIt is important to highlight that BRD held around 45 percent of BDF\u2019s shareholding. In parallel, with support from KfW and the World Bank, BRD has initiated the creation of its own guarantee fund. BRD currently accounts for a significant portion of BDF\u2019s total guarantee portfolio,\u201d the ministry noted.<\/p>\n

The ministry added that BRD\u2019s new strategic plan has enhanced its operational efficiency and strengthened its client outreach by leveraging SACCOs and other financial institutions.<\/p>\n

It remains unclear whether BDF will retain its current mandate under the integration, whether its management team will be dissolved, or whether the institution itself will be disbanded as BRD shifts focus to its new guarantee fund.<\/p>\n

However, the ministry clarified in its statement that \u201call existing agreements and guarantees will remain valid\u201d and that the transition team is tasked with ensuring business continuity, minimizing any disruption for clients and partners.<\/p>\n

Kampeta Sayinzoga, BRD\u2019s CEO, said it is too early for BRD to provide detailed updates on the ongoing integration process, adding that more clarity is expected in about two months.<\/p>\n

In the meantime, BDF remains operational, with its current management and staff still in place.<\/p>\n

Greater efficiency expected<\/p>\n

The Ministry of Finance stated that the integration of BDF into BRD is expected to lead to greater efficiency for those seeking guarantees, while also streamlining public investment.<\/p>\n

Key bottlenecks to be addressed include slow operations, inefficient resource use, limited adoption of digital tools, restricted SACCO reach, and rigid procedures.<\/p>\n

\u201cThe integration will ensure operational efficiency, resource optimization, agility, digitalization, and the development and empowerment of SACCOs and financial institutions,\u201d the ministry noted.<\/p>\n

According to the statement, BDF\u2019s scope has gradually evolved \u2013 from primarily offering credit guarantees to de-risk direct lending \u2013 to also providing direct loans, such as leasing and start-up financing.<\/p>\n

This evolution created overlaps with the very financial institutions BDF was established to support, leading to duplication of roles.<\/p>\n

BRD now plans to centralize these services and provide more effective support to financial institutions, including SACCOs and banks.<\/p>\n

What beneficiaries say<\/p>\n

Entrepreneurs have identified long loan-processing times as a key bottleneck that should be addressed during the integration of BDF into BRD.<\/p>\n

Currently, BDF guarantees 50 percent of a loan, and up to 75 percent for special categories such as women, youth, genocide survivors, and people with disabilities. However, loan processing often takes longer than expected.<\/p>\n

Dieudonne\u0301 Niyodushima, Co-Founder of Exodus Farm Ltd\u2014an agribusiness firm that has benefited from BDF financing\u2014shared his experience with the lengthy application process, attributing the delays to fragmented communication and a lack of clear, upfront guidance.<\/p>\n

He said his loan process took two years.<\/p>\n

\u201cWhat mostly delays the loan process at BDF is that requirements are not provided all at once. You apply, and they ask for a business plan. Once that is submitted, they request proforma invoices. Then a bank statement. After that, a valuation report of the collateral,\u201d he explained.<\/p>\n

\u201cNext, you are asked for a board resolution with shareholders, which then has to be notarised, among many other things. If they could provide a comprehensive checklist at the beginning, it would really help,\u201d he added.<\/p>\n

He emphasised that if BDF provided a complete list of required documents upfront, applicants could prepare everything in one go, significantly reducing processing time.<\/p>\n

\u201cFor example, for a programme like Leasing, they could state clearly that it targets youth and women within a certain age range, and that the required documents are A, B, C, D… That way, applicants would know exactly what to prepare and could submit it all together, making the process much faster,\u201d he suggested.<\/p>\n

Clementine Mukandayisenga, a woman entrepreneur who produces wine and juice from sugarcane and passion fruit, has called on the government to fully guarantee loans provided by BDF.<\/p>\n

\u201cWe want BDF to change the way it operates. Some entrepreneurs have been discouraged. I tried to apply for a loan but gave up because it took too long. When the application process takes six to eight months, it becomes discouraging,\u201d she said.<\/p>\n

BDF had previously assured entrepreneurs that they would not need to present collateral since the loans were guaranteed. However, Mukandayisenga noted that equipment purchased through the loans was later treated as collateral.<\/p>\n

\u201cIt was a challenge because that equipment would eventually be auctioned, in addition to other properties being sold,\u201d she explained.<\/p>\n

\u2018Ensure fair distribution of loans\u2019<\/p>\n

MP Theogene Munyangeyo, Chairperson of the Parliamentary Committee on Economy and Trade, said that once integrated, BDF\u2019s services must be fairly distributed to enhance access to financing across the entire country.<\/p>\n

\u201cWe observed that youth and women in some regions were not accessing support. BRD should ensure skills and support reach remote areas and that many people across the country have access,\u201d he said.<\/p>\n

\u201cPreviously, loans and guarantees were concentrated in certain areas, or larger loans were given to a few individuals, contrary to BDF\u2019s original mandate,\u201d he added.<\/p>\n

The Auditor General\u2019s report revealed that BDF had, in some cases, provided guarantees to large enterprises not aligned with its core mandate, supporting SMEs without adequate collateral.<\/p>\n

The National SME Development Policy defines SMEs as enterprises not exceeding Rwf75 million in net capital investments, Rwf50 million in annual turnover, and 100 employees.<\/p>\n

However, BDF\u2019s policy allowed for projects with capital investment ceilings of up to Rwf500 million, contradicting the national policy.<\/p>\n

As a result, the report found that BDF had provided credit guarantees worth more than Rwf25.1 billion to finance 217 large enterprises, despite its original SME-focused policy.<\/p>\n

This accounted for 51 per cent of total credit guarantees \u2013 over Rwf49.2 billion \u2013 provided between 2011 and August 2019.<\/p>\n

Munyangeyo also called for greater order in the system, noting past instances of scammers impersonating BDF staff to solicit money from project owners seeking funding.<\/p>\n

For More News And Analysis About Rwanda<\/span> Follow Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Rwanda. A national oversight committee has been established to supervise and guide the transition process for integrating the Business Development Fund (BDF) into the Development Bank of Rwanda (BRD), the Ministry of Finance and Economic Planning announced in a statement to The New Times. The committee includes representatives from the National Bank of […]<\/p>\n","protected":false},"author":84,"featured_media":107550,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,15],"tags":[7211,758],"class_list":["post-107551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-bdf","tag-rwanda"],"yoast_head":"\nCommittee Established to Oversee BDF Transition - Rwanda<\/title>\n<meta name=\"description\" content=\"A national oversight committee has been established to supervise and guide the transition process for integrating the Bu ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Committee Established to Oversee BDF Transition\" \/>\n<meta property=\"og:description\" content=\"A national oversight committee has been established to supervise and guide the transition process for integrating the Bu ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition\" \/>\n<meta property=\"og:site_name\" content=\"Rwanda\" \/>\n<meta property=\"article:published_time\" content=\"2025-08-15T15:12:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-08-15T15:25:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/08\/sm_1755258802.471804.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"642\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Committee Established to Oversee BDF Transition\",\"datePublished\":\"2025-08-15T15:12:19+00:00\",\"dateModified\":\"2025-08-15T15:25:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition\"},\"wordCount\":1157,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/08\/sm_1755258802.471804.jpg\",\"keywords\":[\"BDF\",\"Rwanda\"],\"articleSection\":[\"all news\",\"Economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition\",\"url\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/committee-established-to-oversee-bdf-transition\",\"name\":\"Committee Established to Oversee BDF Transition - 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