CGC and BDF partner to develop credit guarantee framework for SMEs in Rwanda
The partnership will strengthen efforts from the government of Rwanda to improve access to credit.Malaysia's Credit Guarantee Corp (CGC) and Rwanda's Business Development Fund (BDF) have signed a memorandum of understanding (MoU) to collaborate on the development of a credit guarantee framework for Rwanda's small and medium-sized enterprises (SMEs).
Under the agreement, CGC will offer assistance and guidance to BDF to develop, design and review the credit guarantee framework to support access to finance for small businesses in the country.
CGC will also be providing technical assistance in the development of the credit guarantee schemes, policy guidelines and other operational matters, the institution said in a statement.
"Many developing countries that do not have credit guarantee institutions are observing CGC as a model and success story and want to emulate it in introducing the guarantee mechanism in their respective countries," CGC president Mohd Zamree Mohd Ishak said.
"This agreement is not just an acknowledgement of CGC’s expertise but also of Malaysia’s capabilities in SME development," he added.
The partnership will strengthen efforts from the government of Rwanda to improve access to credit.
Outstanding credit to the private sector in Rwanda grew by 26.6 per cent year-on-year in August this year compared to a 15.5 per cent year-on year
increase recorded in August 2014, according to figures from the Central Bank of Rwanda. New credit to the private sector increased by 9.2 per cent year-on-year.
Governor John Rwangobwa told Rwanda Focus that the central bank's accommodative policy, implemented a year ago, has had a positive impact on economic growth, while inflation remains low.