BDF and SACCOs strengthen collaboration for improved financial services in Northern Province
On Wednesday, January 23, 2025, a meeting was held in Musanze District between the Business Development Fund (BDF) and SACCOs in the Northern Province. The discussions aimed to enhance their collaboration to deliver better financial services to citizens and clarify the process of providing guarantees and loans through BDF via SACCOs.
This initiative, which began last week, seeks to engage stakeholders on operational improvements and effective partnerships to ensure high-quality financial services for Rwandans. Specifically, it targets supporting project owners, youth, women, and other groups in accessing BDF-backed loans to address collateral challenges.
Dubbed “Birashoboka na BDF” (It’s Possible with BDF), the program spans all provinces, starting in the Southern Province, moving to the Eastern Province, and the City of Kigali, and now reaching the Northern Province.
During the event, awards were given to SACCO leaders excelling in collaboration with BDF. Safari Justin, Manager of Iteganyirize SACCO in Remera Sector, Musanze District, was among the awardees. He emphasized that collaboration between SACCOs and BDF could help achieve shared goals.
“We urge everyone present to take ownership of disseminating this information to citizens. There are numerous opportunities provided by the government through BDF that must reach the people. As SACCOs, our role is to raise awareness and ensure citizens understand how to access collateral and loan opportunities. Being closer to the community, we must bridge this gap,” Safari stated.
The meeting also highlighted challenges, such as some SACCOs failing to honor agreements with BDF, leading to repayment delays. Safari attributed this to lapses in implementing contractual obligations.
BDF CEO, Vincent Munyeshyaka, addressed these issues:
“In our collaboration with SACCOs, BDF channels funds to support their members. When repayment delays occur, we engage SACCOs to find solutions. During this meeting, SACCOs reported outstanding repayments totaling RWF 24 million, which they committed to clearing within a week.”
Regarding loan disbursement to citizens, the first phase of the program was successful, as all eligible projects received funding. However, the second phase faced budget constraints, with RWF 10 billion missing out of the RWF 18 billion requested. This shortfall underscored the need to increase the national budget allocation for the initiative. Consequently, the third phase will allocate RWF 30 billion, part of which will address the second phase’s funding gaps.
Launched in 2021 in response to COVID-19’s economic impacts, this program has been instrumental in driving investment in new projects and reviving those adversely affected by the pandemic.
Additionally, the meeting emphasized the importance of granting loans without extra charges disguised as fast-tracking fees (bribes) to enable beneficiaries to utilize the funds effectively. This approach aims to boost investments and improve citizens’ livelihoods.
The “Birashoboka na BDF” initiative, launched in November 2024, seeks to expand BDF’s reach, enhance service delivery, and strengthen partnerships with stakeholders.
