{"id":114185,"date":"2025-10-29T14:18:45","date_gmt":"2025-10-29T14:18:45","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/brd-launches-shabuka-low-interest-loan-initiative"},"modified":"2025-10-29T14:46:27","modified_gmt":"2025-10-29T14:46:27","slug":"brd-launches-shabuka-low-interest-loan-initiative","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/economy\/brd-launches-shabuka-low-interest-loan-initiative","title":{"rendered":"BRD Launches Shabuka Low-Interest Loan Initiative"},"content":{"rendered":"

Africa-Press – Rwanda. <\/strong><\/span>The Development Bank of Rwanda (BRD) has launched \u2018Shabuka\u2019, a new financing initiative designed to increase access to affordable loans and build capacity for women-led and women-owned businesses.<\/p>\n

The initiative, whose name translates to \u201cBe Proactive\u201d, offers flexible collateral requirements and low-interest loans ranging from Rwf100 million to Rwf2 billion, at an annual interest rate of 12 per cent for up to 10 years.<\/p>\n

The bank\u2019s officials said that this is a significant drop compared to the current market average of around 17 per cent interest rate.<\/p>\n

The Development Bank of Rwanda CEO Kampeta Sayinzoga delivers her remarks at the launch of \u2018Shabuka\u2019 in Kigali<\/p>\n

The product was launched on Tuesday, October 28, at Kigali Serena Hotel, in the presence of BRD\u2019s partners, clients, members of the Private Sector Federation (PSF) Women\u2019s Cluster, and women entrepreneurs from across the country.<\/p>\n

Participants attend the launch of the Development Bank of Rwanda’s \u2018Shabuka\u2019 on Tuesday, October 29. Photo by Keza Kellya<\/p>\n

Commercial bank loans typically require 100 per cent collateral on loan requests, alongside other fees throughout the application process. ‘Shabuka’ reduces this barrier as applicants will provide only 15 per cent collateral. The collateral can also be the value of the project or business funded by the loan. Businesses whose collateral value is below 15 per cent will simply top up the difference.<\/p>\n

BRD officials said the product was inspired by women\u2019s proven track record of responsible borrowing, timely repayment, and strong contribution to Rwanda\u2019s economy.<\/p>\n

\u201cWe reduced both interest rates and collateral after realizing that women have brilliant, income-generating ideas but are often hesitant to seek financing due to high upfront costs and rigid requirements,\u201d said Kampeta Sayinzoga, the CEO of BRD.<\/p>\n

The Development Bank of Rwanda (BRD) has launched \u2018Shabuka\u2019<\/p>\n

\u201cEvidence shows that women repay their loans diligently. That\u2019s why Shabuka was born to create a practical path for women to scale their businesses.\u201d<\/p>\n

Sayinzoga encouraged women entrepreneurs to think big and leverage this opportunity, noting that BRD aims to double women\u2019s access to loans, from the current 15 per cent to 30 per cent of its total portfolio.<\/p>\n

According to the National Institute of Statistics of Rwanda\u2019s (NISR) National Gender Statistics Report 2024, women make up 51.5 per cent of Rwanda\u2019s population, yet their share of bank loans remains relatively low, rising modestly from 7 to 8 per cent in 2024, compared to 10 to 13 per cent for men.<\/p>\n

\u201cShabuka aims to address key challenges faced by women entrepreneurs, high collateral demands, equity requirements, and short loan tenures,\u201d said Justin Ndatabaye, Head of Business Development at BRD.<\/p>\n

Ndatabaye added that their non-financial support, including mentorship and business training, will form a critical part of the initiative, helping women-led startups strengthen management and financial skills.<\/p>\n

Eligible businesses should be at least 40 per cent owned or led by women, and operate within BRD\u2019s priority sectors, including agriculture, exports, manufacturing, energy, housing, education, transport, ICT, and the digital economy.<\/p>\n

The business should also be focused on growth and sustainability with social economic impact, with an existing or projected annual turnover of Rwf5 billion.<\/p>\n

\u201cHaving a loan elsewhere does not disqualify an applicant,\u201d Ndatabaye clarified. \u201cThe goal is to help women scale their operations, not to refinance existing debts.\u201d<\/p>\n

Ndatabaye added that ‘Shabuka’ is an informed research initiative, stressing that the loan limit might change relatively to time and increase of funds in the ‘Shabuka’ fund.<\/p>\n

Women entrepreneurs welcome the move<\/p>\n

Celine Tahaninka, Managing Director of TahaCel Company Ltd, a nationwide cooking gas supplier, appreciated the government and BRD\u2019s continuous efforts in addressing women\u2019s challenges in business.<\/p>\n

\u201cCollateral has always been a major obstacle,\u201d she said. \u201cWith Shabuka, BRD has made it easier for us to grow. Allowing women to access loans even while servicing others will accelerate our businesses.\u201d<\/p>\n

The initiative, whose name translates to \u201cBe Proactive\u201d, offers flexible collateral requirements and low-interest loans ranging from Rwf100 million to Rwf2 billion<\/p>\n

Donanta Mukahirwa, the representative of the leading private sector in North Province, and a businesswoman, who started her business career in 1975, described it as a truly \u2018proactive approach.\u2019<\/p>\n

\u201cThe long repayment period is a game-changer. When loans mature too quickly, even good projects can fail,\u201d she said. \u201cThe interest rate is fair, and it gives us room to plan sustainably.\u201d<\/p>\n

By 2028, ‘Shabuka’ aims to increase BRD\u2019s women lending portfolio from Rwf6 billion to Rwf60 billion, ensuring that at least 30 per cent of the bank\u2019s financing benefits women-led enterprises.<\/p>\n\r\n