I&M Bank Rwanda has borrowed Rwf8.7 billion from the International Finance Corporation (IFC) to lend to small businesses.

This is expected to boost job creation and economic growth as small and medium businesses account for 98 per cent of the businesses in Rwanda.

Specifically, the financing will be available to small and medium enterprises involved in tourism, energy, and agribusiness, to support their growth.

“We shall explore new sectors like tourism, energy, and agribusiness while continue to exert considerable influence on existing businesses,” said Robin Bairstow, CEO I&M Bank Rwanda.

However I&M Bank say it has managed to build a solid SME portfolio by training them in financial skills. And to reduce the exposure, the bank is tapping the Business Development Fund (BDF), guarantee fund.

“Expanding SME financing especially in developing economies where risks are higher is an important pillar of IFC strategy,” said Oumar Seyid IFC regional director for Africa.

“This facility will allow I&M Bank Rwanda to reach underserved SMEs in Rwanda and have a significant impact on growth and job creation,” he said.

The funding targeted to grow the SME loan book is the second this year. In February, I&M Bank Rwanda and Development Bank (BRD) of Rwanda and have secured €24 million (about Rwf25 billion from the European Investment Bank (EIB).