The Ministry of Finance and Economic Planning of Rwanda (MINECOFIN), the Rwandan government’s authority on finance; Access to Finance Rwanda (AFR), a Kigali-based investment company that promotes financial inclusion in Rwanda; and Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW), a German development bank, recently have launched the Microfinance Challenge Fund Rwanda (MCFR), which will deploy EUR 3 million (USD 3.98 million) as loans to support microfinance institutions (MFIs) in Rwanda. Partner MFIs will also receive technical assistance to be provided by MCFR.
At an event celebrating the official launch of MCFR, German ambassador to Rwanda, His Excellency Mr Peter Fahrenholtz said that “the purpose of the challenge fund is to help more people and small businesses achieve greater and more effective access to a deeper financial system in Rwanda”[1]. Dr. Klaus Müller, KfW’s director for Eastern Africa, the Democratic Republic of Congo and for the African Union, said that “the Challenge Fund is expected to bring significant added value at the micro level by expanding financial services to MSMEs [micro-, small and medium-sized enterprises] in rural areas”[1].
AFR is funded by the United Kingdom’s Department for International Development, the World Bank Group and KfW. Financial information on AFR is not publicly available. Frankfurt am Main-based KfW collaborates with local financial institutions in approximately 60 countries. KfW made new financing commitments of EUR 1.7 billion (USD 2.3 billion) through the first three fiscal quarters of 2013 and reported total assets of EUR 476 billion (USD 651 billion) as of October 2013.
By Alíz Crowley, Research Associate
About Ministry of Finance and Economic Planning (MINECOFIN), Rwanda
The Rwandan government’s Ministry of Finance and Economic Planning (MINECOFIN) was established in 1997 upon the merger of the Ministry of Finance and the Ministry of Planning. As of 1999, MINECOFIN also assumed responsibility for international development cooperation. MINECOFIN aims to maintain a stable macroeconomic environment, low inflation, moderate budget deficits and sustainable public debt in Rwanda.
About Access to Finance Rwanda (AFR)
Headquartered in Kigali, Access to Finance Rwanda (AFR) is an investment company that aims to promote financial inclusion in Rwanda. AFR was established in 2010 by the government of the United Kingdom, the Rwandan Ministry of Finance and Economic Planning (MINECOFIN) and the National Bank of Rwanda. As of 2014, AFR is funded by the United Kingdom’s Department for International Development; the World Bank Group; and Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW), a German development bank. The aim of AFR is to support financial inclusion in Rwanda with particular attention to women and young people as well as to contribute to institutional capacity building within the financial sector of the country. Financial information on AFR is not publicly available.
About Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW)
Headquartered in Frankfurt am Main, Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW) is a state-owned development bank in Germany. KfW has three goals: to reduce poverty, to make globalization “fair” and to conserve natural resources. KfW collaborates with local financial institutions in approximately 60 countries, including microbanks, commercial banks, village savings banks, non-governmental organizations and regional microfinance funds. KfW made new financing commitments of EUR 1.7 billion (USD 2.3 billion) through the first three fiscal quarters of 2013 and reports total assets of EUR 476 billion (USD 651 billion) as of October 2013.
Sources and Additional Resources
[1] Press Release Provided to MicroCapital by Access to Finance Rwanda
[2] Access to Finance Rwanda Website, About AFR
[3] Ministry of Finance and Economic Planning (MINECOFIN), About
MicroCapital, June 11, 2014, International Finance Corporation (IFC) Signs Deals with AB Bank Rwanda, IHS Holding of Nigeria, Urwego Opportunity Bank of Rwanda to Expand Microfinance, Telecommunications
MicroCapital, May 28, 2014, Amret Receives $10m Loan from Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW) for Micro-, Small, Medium-Sized Enterprises (MSMEs) in Cambodia
MicroCapital, April 16, 2014, International Finance Corporation (IFC) Commits Support Worth $300k to Back Newly Licensed AB Bank Rwanda, 8th Member of Access Microfinance Holding
MicroCapital Universe Profile: Ministry of Finance and Economic Planning (MINECOFIN), Rwanda
MicroCapital Universe Profile: Access to Finance Rwanda (AFR)
MicroCapital Universe Profile: Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW)
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