AFIRR – Access to Finance for Recovery and Resilience also known as ERF2, is a project designed by the Government of Rwanda (GoR) to support renewed investment for post COVID-19 economic growth. The total project funding is $257.50 million. The benefits below shows the criteria: $8M Microbusinesses credit line: To be implemented by BDF to provide loans to micro-businesses via PFIs, namely (SACCOs) and Microfinance Institutions (MFIs). This sub-component will finance loans for working capital and investments related to business expansion and new ventures in all sectors of the economy. $37.5M Refinancing credit line: The refinanced option will be 35% of the facility at 5% for a tenor of 15 years with a possible grace period of 3 years. Eligible sectors will be specified by Government at a later stage. Investment Line of credit (USD150 Million for 15 years with a 3 years’ grace period):
  • For small businesses (turnover < RwF500 million): The ERF 2 will be lending up to RwF500 million at an interest rate of 8%. They can access a BDF guarantee coverage up to 50% or 75%.
  • For Medium businesses (turnover >RwF500 million < RwF1 billion): This financing will be blended with ERF 2 participation of 60% at 8% interest rate and 40% of PFIs/BRD funds at market rate. This facility will be capped at RwF 2 Billion per company and a BDF guarantee coverage up to 50% guarantee.
  • For Large businesses (turnover > RwF1 billion): This financing will be blended with ERF 2 participation of 60% at 8% interest rate and 40% of PFIs/BRD funds at market rate. This facility is capped at RwF5 Billion and can access a BDF guarantee of up to 50%.
Working capital (USD10 Million for 5years with a 1 year’s grace period):
  • For small businesses (turnover < RwF500 million): The ERF 2 will be lending up to RwF300 million at an interest rate of 8%. They can access a BDF guarantee coverage between 50% or 75%.
  • For Medium businesses (turnover >RwF500 million < RwF1 billion): 8% for any amount ≤ RwF300 Million. Blended: ERF 2 participation of RwF300 million at 8% and remaining part at Bank’s rate for any amount ≥ RwF300. They can also access a BDF guarantee coverage of 50% or 75%.
  • For Large businesses (turnover > RwF1 billion): Blended: ERF participation of RwF300 million at 8%. There is no BDF guarantee on this component. Large business with Working capital need of less than RwF300 Million, they will be served at the bank’s rate.
Implementation by BDF $40M Risk-sharing Facility: Partial Credit Guarantee and de-risking schemes with the objective of reaching SMEs in sectors most hit by the COVID-19 pandemic, as follows: $30M Partial Credit Guarantee Scheme: This sub-component aims at strengthening the operations of the BDF’s Partial Credit Guarantees (PCG) scheme to offset collateral requirements by PFIs to facilitate the SMEs financing. The guarantee window will have a coverage of 50% to 75% with a special treatment to the targeted groups mainly: women, youth, people living with disabilities, vulnerable survivors of the Genocide against Tutsi of 1994, and veterans will benefit a risk Coverage up to 75%. $10M Bridge Lending Window – BLW: To provide short-term lending to climatic shock-affected vulnerable SMEs. This window will also provide a backstop insurance mechanism to protect BLW’s capital from depletion. This will include reviewing eligible insurance products available in Rwanda, collaborating with an insurance broker to support the structuring and procuring of a backstop product, and working with the insurance companies to oversee payouts into the BLW following severe shock periods/scenarios.
How/where to access HATANA ERF 2 The funds are accessible through your respective commercial banks, BRD and BDF for micro-enterprises. Who can access the funds? The project will support viable and potentially viable businesses in all sectors with priority to Made in Rwanda and their value chains • Construction Materials • Agro-processing • Textiles and manufacturing • Other light manufacturing subsectors For more info about the Fund, please download below The AFIRR Project Implementation Manual
JYA MBERE PROJECT– Socio-Economic Inclusion of Refugees and Host Communities in Rwanda Project (SEIRHCP), is a project designed by the Government of Rwanda through the ministry in charge of Emergency Management (MINEMA) with the aim of improving access to basic services and economic opportunities for refugees and host communities and supporting environmental management, in target areas in Rwanda. SEIRHCP was approved on April 30, 2019, and became effective on August 14, 2019. The project is financed by an IDA credit of US$35 million (of which US$25 million is from the IDA18 Regional Sub-window for Refugees and Host Communities or RSW), and an IDA grant of US$25 million from the RSW. In June 2021, an Additional Financing grant in the amount of US$20 million was approved to scale up the original project through expanding investments in access to basic services and economic opportunities in response to the social and economic impacts of COVID-19. The SEIRCHP is composed of four components, namely, Access to Basic Services and Socio-economic investments implemented by districts and RTDA, Economic Opportunity implemented by the Development Bank of Rwanda, Environmental Management, and Project Management/M&E implemented by MINEMA. Component 2 (Economic Opportunity) has a total funding of US$12,000,000. This component supports the implementation of the government’s commitment to improve refugee self-reliance. It seeks to expand economic opportunities and promote access to finance and private sector investment in five districts hosting refugee camps and five urban districts. The goal is to increase access to finance and to promote self-employment or job creation projects for both the host community and refugees. Beneficiaries of the project/ component two: Beneficiaries are entrepreneurs from the refugee population or Rwandan community who have business ideas that they can implement in the 5 districts hosting refugee camps in Rwanda (Gatsibo, Kirehe, Karongi, Nyamagabe, and Gisagara) and refugees’ residents in urban areas namely City of Kigali, Bugesera District, and Huye District. Beneficiaries can be cooperatives, individual entrepreneurs, and companies (Small and Medium Enterprises (SMEs) and micro-entrepreneurs). Joint activities between refugees and host communities are encouraged. The activities of Component 2 are: Providing a matching grant to Refugees and eligible Rwandan entrepreneurs with viable projects and Capacity building to improve the business skills, entrepreneurship, and access to finance for refugees, host communities, BDAs, Cooperatives, and participating entities in order to expand their capacity to develop financially viable project proposals. Matching grant amount: BRD will transfer the matching grants to Participating Financial Institutions and will be given to beneficiaries as follows;
  • 30% will be given to beneficiaries with a loan amount above 25 million
  • 40% will be given to beneficiaries with a loan amount above 5 million to 25 million
  • 50% will be given to beneficiaries with a loan amount of 5 million or below
How/where to access Jya Mbere funds: The funds are accessible through your respective commercial banks, Microfinance Institutions, and Sacco. Eligibility to final Beneficiaries
  1. Refugees and host communities in districts hosting refugee camps
  2. Cooperatives
  3. RCA Certificate.
  4. Good Cooperative governance (Leadership, policies & procedures)
  5. Track history of good Financial Management (audited financials with non-loss position) unless newly created cooperatives.
  6. Own contribution of at least 10% of the total project cost.
  7. Project complies with requirements on social and environmental safeguards.
  8. All interventions should be implemented in the targeted districts.
  9. Qualify to access a loan from a Participating Financial Institution.
  10. At least 10% of the project’s employment or value chain benefiting refugees, and cooperative membership includes at least 10% refugees.
  11. Micro-Enterprises
  12. Complying with District regulations for doing business.
  13. Possess trading license
  14. Quality to access loan from a Participating Financial Institution.
  15. At least 10% of the project’s employment or value chain benefiting refugees.
  • SMEs, Compagnies and MSMEs
  • In addition to conditions fulfilled by Micro Enterprises, possess a certificate of domestic company registration.
  • At least 10% of the project’s employment or value chain benefiting refugees.
  • Urban Areas (Kigali City, Huye and Bugesera)
  • Urban Refugees
  • Refugees residing in Urban areas
  • Complying with District regulations for doing business.
  • Possess trading license
  • Quality to access loan from a PFI.
  • At least 10% of the project’s employment or value chain benefiting refugees.
  • Host Community businesses in Urban areas
  • Complying with District regulations for doing business
  • Possess trading license
  • Quality to access a loan from a Participating Financial Institution.
  • Resident in targeted Urban areas.
  • Joint businesses and cooperatives between host community members and refugees.
  • At least 10% of the project’s employment or value chain benefiting refugees.
For more information about the matching grant, please download it on this link
Under the new Strategic plan of the Bank, a new department in-charge of Special Projects and Infrastructure was created to cater for strategic projects that don’t fall under priority sectors of the Bank. The Bank will primarily focus on financing projects that enhance rapid development of infrastructure as well as other strategic projects that will promote economic transformation of Secondary Cities and their respective population in partnership with the government and other stake holders on projects that act as catalysts for development of different parts and sectors of the economy. The key sectors to be financed specifically include public infrastructure as well as strategic projects where the government needs financial institutions to come in and bridge the gap where necessary. The Bank offers different products (including loans, equity, leasing, refinancing) and services (including advisory, capacity building and technical assistance) at a prevailing interest rate of 16% per annum.