Kigali, Rwanda, November 22, 2010—IFC,
a member of the World Bank Group, today announced the disbursement of its
first local currency loan in Rwanda to support agribusiness and help increase
the country’s wheat flour supply. This loan is made possible through a
swap with Rwanda’s Central Bank.
IFC’s loan will offer $2.5 million equivalent in Rwandan francs to Bakhresa
Grain Milling Rwanda Limited, a flour-milling company in the capital Kigali.
The proceeds will be used to purchase trucks to transport wheat from
Dar es Salaam to Kigali.
“Through this loan we can access long-term financing to expand our operations
and efficiently increase the supply of wheat to Kigali,” said Mounir Bakhresa,
Managing Director of Bakhresa Grain Milling Rwanda.
IFC provided $8 million earlier this year to Bakhresa to build a flour
mill in Kigali with a capacity of 250 tons a day. The new mill is
expected to be commissioned by early next year.
The swap follows an agreement with the National Bank of Rwanda in December
2009 enabling IFC to provide Rwandan-franc denominated loans for the country’s
emerging private sector. IFC usually offers local currency loans
by entering into swaps with major international banks. There are
currently no banks in Rwanda that can provide long-term swaps, so the National
Bank of Rwanda will provide IFC with local currency through swaps until
a commercial swap market develops.
“The swap agreement enables the National Bank of Rwanda and IFC to collaborate
in further developing the country’s financial markets and support the
growth of the private sector,” said François Kanimba, Governor of the
National Bank of Rwanda.
Jean-Philippe Prosper, Regional Director of Eastern and Southern Africa,
said: “This transaction supports our strategy in Africa to develop
specific financing tools that meet the needs of our local clients and helps
support key sectors such as agribusiness. By working with the Bakhresa
Group, IFC is able to create more opportunities for sustainable economic
growth in Rwanda.”
IFC hopes to replicate offering local currency loans in other countries
that do not yet have a swap market.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.