The Bank of Kigali (BK), a commercial bank based in the Rwandan capital, has announced the development of three microfinance products that will allow rural populations to acquire loans without collateral. BK expects to introduce a women’s entrepreneurship account, a youth entrepreneurship savings account and a senior citizens’ account .
To help in the development of the three new products, news website allAfrica.com reports that BK has mobilized USD 20 million from the French Development Agency (AFD in French), USD 5 million from the European Investment Bank and an anticipated additional USD 12 million from an unnamed international development bank [2,1]. Further information regarding the terms of these deals are not available.
Banks are also reportedly looking to gain access to an existing government guarantee fund, which would cover 50 percent of non-performing loans disbursed for agricultural purposes. Further details on this fund are not available .
By Rohan Trivedi, Research Associate
About The Bank of Kigali (BK):
The Bank of Kigali (BK) is a Rwandan commercial bank that is licensed by the National Bank of Rwanda, the country’s central bank. BK was established in 1966 and offers various loan products, savings accounts and other financial instruments to the people of Rwanda. As of December 31, 2010, BK had total assets of USD 332 million.
About The French Development Agency (ADF):
The French Development Agency is a bilateral development finance institution that was founded in 1941 and is responsible for disbursing official development assistance to underdeveloped countries. In 2009, AFD made commitments of USD 9 billion to approximately 60 countries.
About The European Investment Bank:
The European Investment Bank (EIB) was created in 1958 as the long-term lending bank of the European Union. In addition to supporting projects in EU member states, its main priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. In 2010, the EIB approved projects with a total value of USD 110 billion. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.”
Sources and Additional Resources:
 allAfrica.com: “Rwanda: BK to Accelerate Rural Financial Inclusion”, http://allafrica.com/stories/201105270137.html
 Africa Investor: “Bank of Kigali to float shares”, http://www.africainvestor.com/article.asp?id=8843
MicroCapital Universe Profile: Bank of Kigali, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+of+Kigali+%28BK%29
MicroCapital Universe Profile: French Development Agrency (AFD): http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=French+Development+Agency
MicroCapital Universe Profile: European Investment Bank (EIB), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank+%28EIB%29
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