BDF urged to strengthen support for agriculture and livestock projects
For 13 years, the Business Development Fund (BDF) has been operating in Rwanda, facilitating small and medium-sized enterprises (SMEs) and entrepreneurs in accessing financial services.
In 2024, BDF started a nationwide campaign under the theme “BIRASHOBOKA NA BDF (It’s Possible with BDF).” The campaign underscores the accessibility of financial services, economic empowerment, and wealth creation through BDF-supported or guaranteed projects in collaboration with its partners. The campaign, which started in November 2024, will run for three months, concluding in January 2025.
BDF’s objectives include increasing the number of beneficiaries of its services and streamlining its operations. Over the three months, BDF plans to allocate RWF 2.5 billion in guarantees, with RWF 600 million supporting SACCOs and Microfinance Institutions. Other services, including agribusiness and leasing, have been strategically targeted, with RWF 1.5 billion allocated to the CDAT initiative to expedite its rollout before transitioning to the next phase.
On Friday, December 20, 2024, BDF continued its campaign in the Northern Province, focusing on its contribution to national development. This aligns with the government’s agenda to boost economic growth, create jobs, and reduce poverty under frameworks like EDPRS (2008) and subsequent NST1-NST2 plans.
Youth involved in agriculture and livestock projects expressed concerns about limited access to BDF’s services compared to other sectors. Northern Province Governor Maurice Mugabowagahunde echoed these sentiments, emphasizing the region’s lag in benefiting from BDF’s initiatives. He remarked, “From the data BDF shared, over RWF 200 billion has been disbursed nationwide through financial institutions over the years. However, only RWF 23 million has been allocated to individuals in the Northern Province under BDF-backed projects. This disparity might stem from a lack of awareness or reluctance to present viable projects.”
Agricultural projects have received minimal support, with agribusiness initiatives granted RWF 1.5 billion across 211 projects, compared to other sectors that have received higher prioritization.
BDF leader Vincent Munyeshyaka stated that the organization is ramping up nationwide awareness campaigns to ensure citizens, particularly youth and women, are informed about the available opportunities for self-reliance and development. Established in 2011 by the Government of Rwanda and the Development Bank of Rwanda (BRD), BDF aims to support and empower small and medium-sized entrepreneurs by easing access to financial services. This includes providing loan guarantees of up to 75%, especially for youth and women.
BDF collaborates with 98% of financial institutions in Rwanda. Since its inception, it has supported 18,000 projects at a total cost of RWF 191.6 billion, while compensating RWF 4.1 billion to financial institutions for failed projects.
