East African Business Week

KIGALI, RWANDA - Different lenders are providing US$9.7 million funding opportunities to Micro, Small and Medium Enterprises (MSMEs) in Rwanda to increase access to finance.
The loans are expected to boost growth of MSMEs and create more jobs for Rwandans. Government estimates that there are more than 70,000 MSMEs in the East African country.
A pool of organisations has committed $7.2 million in equity investment in a new SME fund to increase access to finance for medium enterprises in Rwanda.
Business Partners International (BPI), a South Africa based financier will host the fund dubbed BP Rwanda SME Fund. The fund will be based in Kigali and Rwandans are expected to run it.  
BP Rwanda adds to other BPI units in Africa including one in Kenya, Madagascar and Mozambique. IFC says it has so far invested $10.7 million in these three BPI units.
The new SME Fund targets to make equity investments of between $50,000 and $1 million in medium enterprises. It will also provide business advisory services to customers.
The Fund shareholders include Rwanda Enterprise Investment Company (REIC) with equity of $4 million, International Finance Corporation (IFC) with $1.6 million, DOEN, a Dutch Non Governmental Organisation with $1.1 million and BPI is investing $500,000.
BPI will continue to raise more funds to increase the SME fund's size to $8 million according to CEO Nazeem Martin.
In a separate deal, IFC is providing a $2.5 million loan to Urwego Opportunity Bank of Rwanda (UOB), the first microfinance bank in the country.
IFC Director for East and Southern Africa Mr. Jean Philippe Prosper said in addition to financing, through business advisory services such as business management and business plan conception, IFC helps SMEs in Rwanda to become better borrowers.
The loan is expected to increase the Bank's lending capacity to MSMEs. Women are expected to benefit from the loan. UOB provides loans as small as Rwf50, 000($82.9) to borrowers, according to CEO Jeffery Lee. The Bank is also introducing micro-insurance, according to Mr. Lee.
He said the bank's lending rates depend on the level of risk perception but they are in the range of 18% and 20%.  Normally small borrowers are not asked to provide collateral.