Financial Products & Programs

1. Financial Products & Programs Helping small businesses to start, grow & succeed

2. Business lines • Started in September 2011 • Has a total of 114 staff – 95% are youth • BDS and Financial Services – Private Equity and Venture Capital About BDF

3. Business lines Guarantees Credit Guarantees for liability of promising SMES to Lenders 4 Financial Products Aim to encourage SMES & lenders to invest in specific sectors Grants SACCO Refinancing Provide subsidized loans to SACCOs For refinancing Provide a flexible hybrid financing product designed to address the individual needs of SMEs Quasi Equity Finance

4. Types of guarantees: 1. Guarantee Program • Guarantees for fixed Assets/ Investment loans • Guarantees for working capital loans • Solidarity Guarantees

5. Key features • Eligibility: • All MSMEs, individuals, associations, coops & Cos. • Categories of Investments: • All sectors of investment that last over 1 year • Property, plant, equipment, land, buildings, motor vehicles, furniture, fixtures, livestock, cottage industries, refrigerators • Maturity: Maximum to 10 years • Risk Coverage • 50% - 75% range of total risk on investment loans • Guaranteed Amount: • Limited to Rwf 500 m in agriculture • Limited to Rwf 300 m in all other sectors (Non- Agri.) Guarantees for fixed Assets

6. Key features • Eligibility: • All MSMEs, individuals, associations, coops & Cos. • Categories of Investments: • All sectors of investment lasting less than 1 year • Short term agric. Campaigns, trading & commerce • Maturity: Maximum to 1 year for Agric. Campaign • Maximum to 3 years for trading MSMEs • Risk Coverage • 30% of total risk for ST agric. Campaign • 50% of risk for trading MSMEs • Guaranteed Amount: • Limited to Rwf 500 m in agriculture campaign • Limited to Rwf 2.5 m for working capital loans Guarantees for working capital

7. Products : Export Guarantee Facility • Pre-shipment Credit Guarantee. • Export Production Credit Guarantee • Post-shipment Credit Guarantee • Export Performance Guarantee.

8. Pre-shipment credit guarantee: This facility supports an exporter for purchasing, manufacturing, processing and packing of goods meant for export against a letter of Credit/Confirmed/firm Order. • Post-shipment Credit Guarantee: This facility supports an exporter to enable him receive advances against expected export proceeds for continuity of export transactions and replenishment of working capital. • Export Production Credit Guarantee: This facility supports exporters pre-shipment stage to a supplier/producer/manufacturer of goods against firm contract or agreement of sale with an exporter. • Export Performance Credit Guarantee: This Facility to covers loss in connection with the financial institutions issuance of Bid Bond, Performance Bonds, Advance Payment Bonds and guarantees in lieu of retention of money Cont’ of products

9. Key features • Eligibility for PFIs • Be fully licensed by the Central Bank; • Demonstrate commitment to excellence and a good understanding of BDF’s requirements; • Provide dedicated staff to specialize in BDF financial access programs; • Sound financial competence and position with continuing good character and reputation; • Be granting credit facilities to exporters relating to export production or pre-shipment, or post shipment of exports of goods and services, priority being given to high value and value added exports from Rwanda. Eligibility Requirements

10. Key features • Eligibility for Borrowers • Registered Rwandan engaged in production and export of goods and services from Rwanda ; • Own viable commercial projects • Has applied for a credit facility from a financial institution relating to export production or pre-shipment or post shipment finance on which the financial institution has sought a guarantee cover from the Fund. Cont’ Eligibility Requirements

11. Key features • Eligibility for Credit Facilities and Products • Advances granted against firm export orders; • Advances granted to supplier/producer/manufacturer of goods against firm contract or agreement of sale with an exporter; • Advances granted in respect of deemed export transactions; • Eligible products are Rwandan exports of goods and services, priority being given to high value and value added exports Cont’ Eligibility Requirements

12. Key features • Risk Coverage • Pre-shipment Credit Guarantee. 75% • Export Production Credit Guarantee 75% • Post-shipment Credit Guarantee 75% • Export Performance Guarantee 75% • Note: Amount not exceeding Rwf 500M for Agribusiness projects and Rwf 300M for Non Agribusiness projects • Duration • Pre-shipment Credit Guarantee. 270 days • Export Production Credit Guarantee 270 days or * • Post-shipment Credit Guarantee 60 days • Export Performance Guarantee 270 days Scope of the Guarantee

13. Key features • Guarantee Fees • Pre-shipment Credit Guarantee. 1% • Export Production Credit Guarantee 1.5% • Post-shipment Credit Guarantee 0.75% • Export Performance Guarantee 0.75% Cont’ Scope of the Guarantee

14. Swiss Agency for Development and Cooperation and its implementing Agency called Skat Consulting Rwanda Ltd, are rolling out the credit guarantee fund that facilitate SMEs who are in construction material(Bricks and Tiles ) to get access to credits through BDF as Fund Manager. • The overall objective is to the project is to minimise the impact of building material production on the Environment while improving the livelihoods and working conditions in construction sector. Credit Guarantee on Construction Materials

15. Key features • Recommendation from Skat Consulting Rwanda Ltd • Viable business plans approved by PFIs that deal in construction materials( bricks and tiles) • Credit amount is limited to Rwf 20,000,000 per individual, company or cooperative • 50% of Risk Coverage Eligibility Requirements

16. Youth Mentality • M&E Challenges

17. THANK YOU