Development Bank of Rwanda (BRD) signed a Memorandum of Understanding with multilateral financial guarantee institution, the African Solidarity Fund (FSA) In August 2, 2013 with an aim of enhancing cooperation in the areas of common interest, particularly in terms of financing medium and long term especially for SMEs.
This Framework Agreement was in line with FSA’s aim to participate in the economic development and the fight against poverty in its member states by facilitating the financing of investment projects in both the private and public sectors, and activities of micro-finance.
“The specific commitment under this agreement was to leverage on FSA support to the development of Rwanda private sector through provision of financial security ( in form of risk sharing on one hand, extension of term loans for a longer period of time and to allow projects being financially viable to provide guarantee facilities to short, medium and long-term loans.
In order to put this Memorandum Of Understanding into action, today June 23rd 2016, The Director General, FSA, Mr Ahmadou Abdoulaye DIALLO, Chief executive Officer of BRD Mr. Alex KANYANKOLE together with four BRD clients will sign their first contracts regarding the guarantee facility, risk sharing and extension of loan repayment period in a context of contributing towards developing economies of its member States. The above agreement also entails these two institutions, partnering to hold a joint mission of identifying, monitoring and evaluation of projects to be financed in Rwanda.
Clients Benefited on FSA guarantee facility and amount approved
|BMC Properties Ltd||Rwf 500,000,000|
|Novel Energy Ltd||Rwf 370,000,000|
|Rusizi Investment Corporation Ltd||Rwf 345,500,000
Client that benefited on the extension of repayment period and amount approved
Good Harvest Nursery and Primary School
Total Amount approved on both Facilities : Rwf 1,507,036,098
About the African Solidarity Fund
Renowned under its French acronym – Fonds de Solidarité Africain (FSA), has 13 African member states – Rwanda, Benin, Burkina Faso, Burundi, Central Africa, Ivory Coast, Gabon, Mali, Mauritius, Senegal, Chad, Togo, and Niger (which hosts FSA’s headquarters in Niamey).
The African Solidarity Fund was established in December 21, 1976 with the mission to facilitate the economic development of its African Member States acting as a catalyst for financial systems to allow the States and public and private on the one hand, access to credit to finance productive investment projects, and secondly, by facilitating the mobilization of local and foreign savings including interventions guarantee in the financial markets.