{"id":63200,"date":"2024-01-17T16:49:39","date_gmt":"2024-01-17T16:49:39","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/im-bank-swedish-embassy-sign-guarantee-agreement-to-empower-rwandas-msmes"},"modified":"2024-01-17T17:34:07","modified_gmt":"2024-01-17T17:34:07","slug":"im-bank-swedish-embassy-sign-guarantee-agreement-to-empower-rwandas-msmes","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/economy\/im-bank-swedish-embassy-sign-guarantee-agreement-to-empower-rwandas-msmes","title":{"rendered":"I&M Bank, Swedish Embassy sign guarantee agreement to empower Rwanda’s MSMEs"},"content":{"rendered":"

Africa-Press – Rwanda. <\/strong><\/span>I&M Bank, a financial institution in Rwanda, has officially entered into a strategic partnership with the Embassy of Sweden in Kigali to bolster the growth and resilience of Micro, Small, and Medium Enterprises (MSMEs) in Rwanda.<\/p>\n

According to a press release from the bank, the agreement was signed on January 16, 2024, in Kigali, with the presence and endorsement of I&M Bank CEO Benjamin Mutimura, the Head of Development Cooperation at the Embassy of Sweden, Martina Fors Mohlin, and Access to Finance Rwanda (AFR) CEO Jean Bosco Iyacu.<\/p>\n

I&M Bank CEO Benjamin Mutimura, the Head of Development Cooperation at the Embassy of Sweden, Martina Fors Mohlin<\/p>\n

during the signing ceremony in Kigali.<\/p>\n

Under the strategic partnership, the Swedish Embassy and I&M Bank established a risk-sharing facility through a portfolio guarantee aimed at mobilising lending for MSMEs in Rwanda.<\/p>\n

The guarantee is expected to facilitate $5 million (more than Rwf6 billion) lending to eligible customers and support MSMEs to overcome collateral requirements.<\/p>\n

Access to Finance Rwanda, as the strategic partner of the facility, will work closely with I&M Bank by providing technical assistance, supporting optimal utilisation of the guarantee, and monitoring impact and capturing learnings.<\/p>\n

Eligibility criteria<\/p>\n

To be eligible for the guarantee, MSMEs must demonstrate a strong potential for job creation, with a special emphasis on women and youth entrepreneurs. Additionally, businesses should be registered and operational in Rwanda, having been in existence for at least two years with a positive track record.<\/p>\n

The Head of Development Cooperation at the Embassy of Sweden, Martina Fors Mohlin during the signing ceremony in Kigali<\/p>\n

Sectors set to benefit from the guarantee should contribute to job creation and green growth. They include agriculture and agri-business, environmentally sustainable management, light manufacturing, logistics, ICT, export-oriented SMEs, tourism and hospitality, renewable energy, and circular economy.<\/p>\n

Mutimura expressed enthusiasm about the partnership, stating, “This collaboration with the Embassy of Sweden exemplifies our commitment to fostering the growth of MSMEs in Rwanda.\u201d<\/p>\n

\u201cBy providing a substantial portfolio guarantee, we aim to address the challenges faced by these enterprises, especially in the context of collateral, and empower them to contribute significantly to the country’s economic development,” he observed.<\/p>\n

The Swedish Embassy Representative highlighted the Swedish government \u0301s dedication to supporting impactful development initiatives in Rwanda.<\/p>\n

The partnership is expected to bolster the growth and resilience of Micro, Small, and Medium Enterprises (MSMEs) in Rwanda<\/p>\n

“Our partnership with I&M Bank aligns with our mission to promote inclusive and sustainable economic development in Rwanda. By providing guarantees to MSMEs, particularly those in key sectors, we strive to create a positive impact on job creation, gender equality, and youth entrepreneurship,” Mohlin said.<\/p>\n

Iyacu underscored the fact that this is the first client-centric portfolio guarantee scheme in Rwanda that was adequately designed in close collaboration with market actors to address collateral constraints faced by youth and women-owned MSMEs and those located in rural areas of Rwanda.<\/p>\n

Well thought-through procedures have been designed to ensure high guarantee utilisation by MSMEs and within reasonable turnaround time, the press release indicated.<\/p>\n

As noted, the initiative builds on I&M Bank’s continued commitment to supporting MSMEs in Rwanda. Recently, the bank launched a partnership with African financial services group Old Mutual, enabling MSMEs to access insurance premiums and other offerings. Notably, the Agiserera asset finance campaign provides up to 100 per cent financing with a remarkable turnaround time of 24 hours.<\/p>\n

Mutimura invited stakeholders and potential beneficiaries to engage with I&M Bank to explore the opportunities offered by this collaboration, saying, “We are eager to align our efforts to ensure that the Portfolio Guarantee Agreement makes a meaningful impact on the MSME landscape in Rwanda.”<\/p>\n\r\n