Kigali, Rwanda/Washington, D.C., May
22, 2008—IFC, a member of the World Bank Group, will support lending
to schools and education services providers in Rwanda, in partnership with
Banque Rwandaise de Développement. This is the first initiative of its
kind in Rwanda, which is designed to help improve the business environment
for private education.
IFC will invest up to 2.6 billion Rwanda
francs (about $ 4.8 million) in a risk-sharing facility, which will enable
the bank to increase its education portfolio to 7 billion francs (about
$ 13 million). IFC is also designing a comprehensive advisory program to
help strengthen the financial, management, and educational capacities of
private schools and develop an independent provider of education services.
IFC will also provide advisory services to help the bank build capacity
to conduct due diligence of educational institutions and monitor its portfolio.
Despite a strong demand for private
education—a priority for the Rwandan government—most private school operators
do not have access to long-term loans locally. This hinders their ability
to grow or operate effectively. The new risk-sharing facility will provide
local operators with access to long-term financing and enable them to build
additional facilities and purchase equipment.
IFC will share the risk with Banque
Rwandaise de Développement. This initiative is modeled after similar facilities
in Ghana and Kenya, where IFC has also mobilized local currency financing
in support of private education.
Théogène Turatsinze, Director General,
Banque Rwandaise de Développement, said, “This partnership gives us the
opportunity to expand our support for Rwanda’s education sector, while
minimizing risk. It will enable us to increase our education portfolio,
develop further expertise in the sector, and help private schools expand
Thierry Tanoh, IFC Director for Sub-Saharan
Africa, said, “This initiative demonstrates IFC’s effective combination
of investments and advisory services in undertaking small-scale projects
that have a high development impact.”
Guy Ellena, IFC Director for Health
and Education, said, “Working with a local financial institution enables
IFC to reach a larger number of schools than we could have done directly.
This investment will help the Banque Rwandaise de Développement lower its
risk. We hope this approach can be replicated throughout Africa.”
IFC’s strategy in Rwanda focuses on
mobilizing direct investment in key sectors, including tourism, infrastructure,
financial markets, agribusiness, and construction to maximize impact. IFC
also supports local small and medium enterprises through advisory services,
helping build entrepreneurial skills, improve the business climate, and
increase access to finance with innovate products such as leasing and trade
In FY07, IFC committed $10 million to
investments in Rwanda, thereby growing its investment portfolio to $10.8
million as of June 2007.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC's vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
About Banque Rwandaise de Développement
BRD was established in 1967 as a development
finance institution with a mission to promote economic development in Rwanda.
Its shareholders comprise the government of Rwanda, local public institutions,
international development finance institutions, and the private sector.