New EIB - Bank of Kigali cooperation to support RWF 60 billion private sector investment in Rwanda

On the margins of the Africa CEO conference, the European Investment Bank, the long-term lending institution of the European Union, and Bank of Kigali agreed their largest ever cooperation to support new business investment across Rwanda.

Under the agreement, the European Investment Bank will provide RWF 30 billion to support investment by Rwandan firms engaged in a range of productive sectors. This credit line will address the need for longer-term business funding, essential to accelerate economic growth, creating skilled jobs, increasing export revenues and improving tax revenues for national socio-economic development.

The RWF 30 billion of new financing from the European Investment Bank will be matched by Bank of Kigali and unlock a total of RWF 60 billion of new private sector investment across Rwanda.

“Accelerating private sector investment is crucial to create jobs, unlock opportunities and enable businesses to succeed and the European Investment Bank is committed to supporting private sector investment in Africa. In recent years, companies across Rwanda have benefited from excellent cooperation between the European Investment Bank and the Bank of Kigali. The new RWF 60 billion engagement agreed today, our largest ever cooperation with the largest commercial bank in Rwanda, will ensure that many Rwandan companies build on their strengths and contribute to sustainable economic development in the heart of Africa.” said Ambroise Fayolle, Vice President of the European Investment Bank.

The European Investment Bank has provided RWF 63 billion to private sector investment in Rwanda in cooperation with the Bank of Kigali since 2009. Previous engagement has directly supported the creation of an estimated 760 new jobs.

This new European Investment Bank-backed credit line is built on this proven success and represents the first dedicated support for investment in foreign currency. This reflects the investment needs of internationally active companies and reduce currency exchange costs faced by the Rwandan private sector.

Original source: EIB
Published on 25 March 2019