On Monday November 30, 2020 PS Olivier KAYUMBA officiated the signing ceremony of subsidiary financing agreement between the Development Bank of Rwanda (BRD) and AEC Rwanda Trustee Company Ltd that expressed interest to implement component II of socio-economic Inclusion of Refugees and Host Communities Project referred to as Jya Mbere Project.

This component II (Economic Opportunity) will support implementation of the government’s commitment to improve refugee self-reliance. It is being implemented by BRD and aims to contribute to refugee economic integration and economic growth in the six districts hosting refugees by promoting entrepreneurship and employment for host community members and refugees.

Officiating the signing ceremony, PS Olivier KAYUMBA said the Government is keen to ensure the sustained provision of long-term finance to support the inclusion of Refugees and Host Communities.

“In light of the massive socio-economic impact of the COVID-19 pandemic both on a global and domestic level in Rwanda, the government acknowledges that refugee and host communities have equally been impacted, therefore fast and substantive action is necessary to help preserve employment, and a continuation of life cycles in the camps and the communities they engage with in a daily basis.” PS KAYUMBA noted.

Speaking at the signing ceremony, Kampeta Pitchette Sayinzoga, Chief Executive Officer at the Development Bank of Rwanda (BRD) reiterated the Bank’s commitment to effectively implement and operationalize this project.

“Refugee and host communities in Rwanda deserve such initiatives. BRD is embarking on reconnecting with our mandate as a typical Development Finance Institution as we appropriately align with the Rwanda National Strategy for Transformation (NST1) and the Sustainable Development Goals (SDGs). We thank the first financial institution AEC that has become the first applicant to work with us in implementing this initiative and we encourage other financial players to approach us and apply in order to widen the pool as reach more potential beneficiaries.” CEO Kampeta stated.  

Component two of Jya Mbere project will support implementation of the government’s commitment to improve refugee self-reliance. Projects by beneficiaries shall comply with the requirements of Participating Financial Institutions (PFIs) in applying for loans and meet the terms and conditions.

Matching-grant ceilings will vary depending on loans. Beneficiaries who will get a loan less than 5 million Rwandan francs, 50% of loan will be matching grant. Beneficiaries who will get loan varying between 5 and 25 million Rwanda francs, 40% of loan will be matching grant. And finally those will get above 25 million, 30% of loan will be matching grant.

Participating Financial Institutions are either banks, microfinance institutions or SACCOs. Beneficiaries will access the matching grant through these PFIs for activities that will generate employment and economic development in the target districts if they qualify for loans from the latter.

Joint activities between refugees and host communities are encouraged. Beneficiaries are entrepreneurs from the refugee population or Rwandan community who have business ideas that they can implement in the six districts hosting refugee camps in Rwanda. Beneficiaries can be cooperatives, individuals’ entrepreneurs and companies Small and Medium Enterprises (SMEs) and micro entrepreneurs.