MIGA, IFC, and Bank of Kigali Partner to Boost Trade in Rwanda
June 20, 2023—Bank of Kigali has joined IFC's Global Trade Finance Program (GTFP) and become one of 240+ issuing bank partners of IFC under this program. This makes the Bank of Kigali the first active bank in Rwanda under IFC's GTFP, which supports the growth of trade finance in the country. This is also the first project under the MIGA IFC Trade Finance initiative where MIGA and IFC jointly support selected public banks in emerging markets for cross-border trade flows.
The $20 million trade finance facility from IFC which will be issued as a guarantee for Bank of Kigali will complement the Bank's capacity to deliver trade finance solutions and assist in developing new trade partnerships with foreign correspondent banks. Through this initiative, IFC will support Bank of Kigali on its strategy focusing on financing SMEs and women businesses in Rwanda.
"Trade finance is paramount in ensuring accessibility, which promotes growth and sustainability in economies," said Makhtar Diop, IFC's Managing Director. "Supporting SMEs and women in business is a priority for IFC, and we will work with Bank of Kigali to promote the trade finance needs of SMEs and women-owned businesses in Rwanda."
"We are excited to join the network of IFC's GTFP Program. By partnering with IFC through its Global Trade Finance Program, Bank of Kigali will have an enhanced access to GTFP network for its trade finance liquidity and limits need, and eventually be able to support local businesses grow and reach new markets," said Dr. Diane Karusisi, CEO of Bank of Kigali.
"Supporting state-owned banks is core to MIGA's mandate, and we are very pleased be able to provide additional trade finance guarantee capacity to the IFC in support of the economy of Rwanda," said Hiroshi Matano, Executive Vice President of MIGA. "MIGA hopes to be able to collaborate with IFC in other markets as well."
The GTFP extends and complements the capacity of banks to deliver trade financing by providing risk mitigation in new or challenging markets where trade lines may be constrained. In fiscal year 2023, IFC has issued more than $9 billion in guarantees under the program, close to 70 percent in low-income and fragile countries.
Through the GTFP bank network, local financial institutions can establish working partnerships with a vast number of major international banks in the program that can broaden access to finance and reduce cash collateral requirements. This enables the continued flow of trade credit into the market at a time when imports may be critical, and the country's exports can generate much-needed foreign exchange.
About Bank of Kigali
Bank of Kigali Plc. is the largest commercial bank in Rwanda by total assets. The bank has strategically positioned itself as the leading commercial financial institution in Rwanda, boasting a diversified portfolio of services allowing it to seamlessly serve a wide breadth of clients, including individuals, SMEs, large corporations, as well as other financial institutions in the region. In 2022, Global Credit Ratings affirmed Bank of Kigali's long-term and short-term national scale ratings of AA+(RW) and A1+(RW) respectively, with a stable outlook.The Bank has won several back-to-back international and regional banking awards from Euromoney, The Banker, EMEA Finance and recently was awarded "Best Bank in Rwanda 2023" by Global Finance for the third consecutive year, demonstrating its unwavering commitment to excellence in the banking sector.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About MIGA
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued more than $70 billion in guarantees across 122 developing countries in support of more than 1,000 projects.
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