Kigali, Rwanda, 28 May 2018 - IFC,
a member of the World Bank Group, today announced a $10 million subordinated
loan to I&M Bank (Rwanda) to strengthen the bank’s capital base, and
help it increase lending to small and medium enterprises, promoting job
creation and economic growth in Rwanda.
IFC’s investment will focus on supporting
smaller businesses operating in Rwanda’s tourism, agriculture, and trade
and commerce sectors, the backbone of economic growth in the country. Services
account for about half of Rwanda’s gross domestic product, while agriculture
generates 31.5 percent.
I&M Bank is the oldest financial institution
in Rwanda, and one of its largest. By promoting increased access to finance
for underserved SMEs, I&M Bank is supporting the Government of Rwanda’s
Vision 2020, a strategy that aims to transform the country into a knowledge-based,
middle-income country, and a regional technology and finance hub.
Robin Bairstow, Chief Executive Officer of
I&M Bank Rwanda, said, “We are delighted with the continued partnership
between IFC and I&M Bank. We have built a solid SME portfolio, and
by training our clients in financial skills' workshops, we have seen their
businesses strengthen and grow. Thanks to IFC’s support, we will explore
new and evolving sectors like tourism, energy and agri-business, while
continuing to exert considerable influence on existing businesses.”
Oumar Seydi, IFC Regional Director for Africa,
said, “Expanding SME financing, especially in developing economies where
risks are higher, is an important pillar of IFC’s strategy. This facility
will allow I&M Bank to reach underserved SMEs in Rwanda, and have a
significant impact on growth and job creation.”
SMEs account for 98 percent of all businesses
in Rwanda, and contribute more than half of its total gross domestic product.
However, most lack sufficient access to finance, leading to an estimated
$1.2 billion finance gap. IFC’s loan will promote access to finance for
SMEs, and other underserved market segments in Rwanda.
IFC is playing a significant role in improving
financing for SMEs, which are a source of growth, jobs and innovation.
However, access to finance remains a leading constraint to SME growth in
Sub-Saharan Africa, where 350 million new jobs will be needed in the next
20 years. Small businesses account for 30 to 60 percent of the gross domestic
product and 67 percent of jobs in the region. Globally, in 2016, 400 of
IFC’s SME finance clients extended an estimated eight million SME loans.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org
About I&M Bank Rwanda Ltd
Established in 1963, I&M Bank
Rwanda (formerly Banque Commerciale du Rwanda Limited - BCR) is a leading
Financial Services Provider with a regional presence in Africa. In
Rwanda, the company's product offering includes Business Banking, Personal
Banking, Institutional as well as Corporate Banking. The Bank has a proven
track record in pioneering innovative financial services and supporting
the Republic of Rwanda’s strategy for Financial Inclusion.