Development Finance in Rwanda

At a glance

The main development-finance routes for businesses and projects.^1,2,3,4

Source: Development Bank of Rwanda: Products and Services (April 2025); Ministry of Public Service and Labour: Guarantee Programme; Rwanda Green Fund: About Ireme Invest; Deutsche Gesellschaft für Internationale Zusammenarbeit: Ireme Invest Circular Economy Programme (October 2025)^1,2,3,4

BRD is a development bank, not a deposit-taking bank. The National Bank of Rwanda classifies development banks as non-deposit-taking institutions that mobilise funds primarily to finance development projects and programmes. The minimum paid-up capital for this category is FRW 50 billion. For businesses, the distinction is practical: BRD’s role is development finance rather than everyday deposit banking.⁵

What BRD finances

BRD offers short-, medium- and long-term investment loans for projects in sectors it identifies as priorities for Rwanda: agriculture, exports, manufacturing, infrastructure, energy, housing and education. A business seeking direct project finance can explore this route. The scale and term of a loan depend on the project and the relevant product; the sector list alone does not mean every proposal qualifies.¹

BRD’s published products and services also include:¹

• Lines of credit to commercial banks, microfinance institutions and SACCOs, which on-lend to final beneficiaries.
• Trade-finance and payment facilities, including international transfers through SWIFT, documentary credits or letters of credit, and stand-by letters of credit.
• Guarantee funds, including the SME Guarantee Fund, the African Solidarity Guarantee (FSA) and the Rural Investment Facility.
• Advisory and capacity-building services for business promoters who need help developing bankable business plans or managing projects.

Source: Development Bank of Rwanda: Products and Services (April 2025)¹

A company that needs a loan from a local lender can ask whether that bank, microfinance institution or SACCO participates in a BRD line of credit. This differs from applying directly to BRD for project finance: the participating institution lends to the final beneficiary. BRD also describes trade-finance instruments for clients involved in trade, while its advisory services can help promoters develop a business plan or manage a project.¹

How SME guarantees work

The published BDF programme works through partner financial institutions. A business seeks a loan from a participating institution, and the guarantee covers part of the required guarantee or lending risk. This can help a borrower obtain finance, but the guarantee is not itself a loan from BRD or BDF. The programme lists small and medium businesses, individual entrepreneurs, companies and cooperatives as eligible applicants. In July 2025, the government announced a strategic decision to integrate BDF into BRD; the release described intended benefits, including faster guarantee processing and wider outreach.^2,6

Published BDF guarantee categories distinguish fixed-asset investment from working-capital borrowing.²

Source: Ministry of Public Service and Labour: Guarantee Programme²

Fixed-asset guarantees apply to business investments lasting more than one year. Working-capital guarantees cover shorter-term activity, including agricultural campaigns, trading and commerce. Before approaching a lender, identify the use of the borrowing, the activity and the required amount. Then compare them with the relevant category, maturity and limit. The published figures are programme terms; applicants should establish which terms apply to their application through the institution handling it.²

Green finance through Ireme Invest

Ireme Invest is a government green-investment facility established through a partnership between the Rwanda Green Fund and BRD, and launched at COP27 in 2022. It has two connected windows. BRD manages the Credit Facility, which provides soft loans and credit guarantees. The Rwanda Green Fund manages the Project Preparation Facility, which helps projects and companies move from feasibility towards bankability.^3,4

The Project Preparation Facility offers several types of support:³

• Non-repayable grants can support proof-of-concept work, prototype development and reducing project risk.
• Recoverable grants function as zero-interest debt facilities. They have a two-year grace period, followed by flexible repayments over the next three years. If the full amount remains unpaid after five years, the outstanding obligation may be converted into equity following a valuation.
• Equity investment, co-investment and patient capital can support green businesses and projects with high growth potential.

Source: Rwanda Green Fund: About Ireme Invest³

Applicants must be registered in Rwanda and hold a valid Rwanda Development Board certificate. They must operate in, or be transitioning towards, green and sustainable solutions. Eligible sectors include clean energy, smart mobility, sustainable cities, climate-smart agriculture, and waste and the circular economy. The facility also assesses scalability, economic impact, environmental and financial viability, and corporate governance. Consider the project’s stage: preparation support is aimed at developing bankability, while the Credit Facility provides loans or guarantees.^3,4

BRD’s finances and sustainability-linked bonds

BRD’s audited statements report total assets of FRW 1.015 trillion at 31 December 2025, compared with FRW 782.9 billion a year earlier. Loans and advances rose from FRW 476.4 billion in 2024 to FRW 675.6 billion in 2025. The bank recorded profit after tax of FRW 23.1 billion for 2025. These are bank-wide balance-sheet and results figures, not an indication of how much finance is available to an individual applicant.⁷

BRD’s sustainability-linked bonds connect financing terms with portfolio and development targets.⁸

Source: OECD: The Development Bank of Rwanda’s Sustainability-Linked Bond⁸

BRD issued its first local-currency sustainability-linked bond in September 2023, raising FRW 30 billion, and issued a second bond of the same size in September 2024. The OECD describes the bonds as a way to mobilise private capital and support BRD’s lending capacity. Their coupon has a step-down structure: depending on how many targets are met, payments can decrease by up to 40 points. World Bank International Development Association funds provided credit enhancement for both issues, reducing investor risk and helping BRD borrow at lower cost.⁸

The bond indicators are not loan terms for individual businesses. They describe targets for BRD’s portfolio and development outcomes. The financial statements also show that the bank’s funding includes borrowings, special funds and grants. For a prospective borrower, these figures explain how BRD operates at institutional level; eligibility and finance still depend on the product and application.^7,8

Choosing a finance route

Match the financing need to the product before approaching a lender or facility:^1,2,3,4

• For a project in a BRD priority sector, define the project’s purpose and financing requirement, then explore the direct investment-loan route.
• If you intend to borrow through a local lender, ask whether it participates in a relevant BRD line of credit.
• If guarantee requirements are a barrier, classify the borrowing as fixed-asset investment or working capital and compare it with the published category, coverage, maturity and amount limit.
• For a green project, consider whether it needs project-preparation support from the Rwanda Green Fund or a loan or guarantee through Ireme Invest’s Credit Facility.

Source: Development Bank of Rwanda: Products and Services (April 2025); Ministry of Public Service and Labour: Guarantee Programme; Rwanda Green Fund: About Ireme Invest; Deutsche Gesellschaft für Internationale Zusammenarbeit: Ireme Invest Circular Economy Programme (October 2025)^1,2,3,4

Prepare a concise description of the business or project, its sector, intended use of funds and the type of finance sought. For an Ireme Invest application, check the registration and green-activity criteria and consider whether the project is ready for credit or still needs preparation support. BRD lists advisory services for promoters developing bankable business plans or managing projects. Confirm current product terms with BRD or the financial institution handling the application.^1,2,3,6