In its bid to raise general impact activities, Rwanda Development Bank (BRD), has begun an awareness campaign based on a seven-year strategic plan to emphasize in affordable housing, Energy and Export promotion, improve charity on student loan financing and improved recovery of students loan as well as support agriculture sector.
Speaking during a press conference marking the beginning of the campaign BRD’s CEO Eric Rutabana, said that the campaign will boast the level of awareness of the economic sectors managed by the bank.
“The campaign is in line with the National Strategic 2017-2024 social transformation pillar, aimed at moving toward a modern Rwandan household setting a priority area by facilitating and developing an affordable housing where the BRD will play a role as a development bank,” he said.
“It was revealed that the primary beneficiaries of the housing project are Rwanda household, which are unable to access long-term housing finance.” the CEO said.
The project expects to focus primarily on the household with monthly incomes ranging between Rwf 200,000 and Rwf 700,000, while the primary target segment which may qualify for mortgage loans under the GoR’s strategy on affordable housing finance and loans for homes will be in the range of Rwf 10-35millions.
The bank CEO further said, the Rugarama Este has been launched with 2850 units and construction will be done in phases with the whole project expected to be completed in 48 months.
Since the Development took over the mandate of managing student loans and bursaries in compliance with provision Law No 44/2015 of 14/09/2015, it bank has recovered Rwf 7.7 billion in a period of 3 years.
For over seven years before the students’ loan financing and recovery stood at Rwf 12billion, the recovery is from 70,000 Rwandans who were loaned Rwf 80 billion to pursue higher education.
The Development bank says that is using different strategies by identifying loan beneficiaries in their respective work places all over the country while partnering with different players like RRA to locate the employments and business with the help of MFOTRA.
Over Rwf 3.4 billion is set to be recovered this year, the bank officials further mentioned.
Renewable Energy Fund (REF)
About the Renewable Energy Fund, the bank signed a grant agreement with the International Development Association represented by the World Bank.
“The objective of the Renewable Energy Fund is to electrify 445,000 households and small businesses in the rural and peri-urban areas through off-grid technologies.
The fund operated under four windows which include; On-lending through SACCO’s, Commercial banks, direct lending to off-grid projects and through direct leading to off-grid solar companies.
Only 376 households and 3 small businesses have been connected via the scheme, but a strong awareness campaign has started involving the local government at Provincial, district, sector and Cell levels in partnership with key stakeholders the Ministry of Agriculture.
BRD states that it has a target of to electrify 445,000 households which represent 27.79 percent of the total household in the off-grid zones, and 33. Percent of the households remaining to be connected in the off-grid zones.
Export Growth Facility (EGF)
The EGF project is designed to facilitate export financing under different products which namely; investment catalyst fund aimed at encouraging private sector investment in export-oriented production.
Under the Matching Grant facility, companies will be supposed to penetrate foreign markets while BRD will provide this facility with a grant limit which cannot exceed USD 100,000 per project.
Through the Export Credit guarantee funding, the bank intends to enhance the financial capabilities of exporters while Guarantee Cover will be provided by the Development bank to an approved commercial bank. BRD will equal 75 and 80 percent of the amount of the principal amount guaranteed.
To enhance the creditworthiness of exporters supporting short-term payment guarantee with different facilities specifically for; Pre-shipping credit export production of 60 days, Post-shipment credit and Export performance guarantee of 270 days.