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

2. 2 Business lines About BDF 20-Oct-15  Started in September 2011  Has a total of 114 staff – 95% are youth  BDS and Financial Services – Private Equity and Venture Capital

3. 3 Business lines 4 Financial Products Guarantees Grants SACCO Refinancing Quasi Equity Finance Credit Guarantees for liability of promising SMES to Lenders Aim to encourage SMES & lenders to invest in specific sectors Provide subsidized loans to SACCOs For refinancing Provide a flexible hybrid financing product designed to address the individual needs of SMEs 20-Oct-15

4. 1. Guarantee Program Types of guarantees: 4  Guarantees for fixed Assets/ Investment loans  Guarantees for working capital loans  Solidarity Guarantees 20-Oct-15

5. Guarantees for fixed Assets 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.) 5 Key features 20-Oct-15

6. Guarantees for working capital 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 6 Key features 20-Oct-15

7. Export Guarantee Facility Products : 720-Oct-15 Pre-shipment Credit Guarantee. Export Production Credit Guarantee Post-shipment Credit Guarantee Export Performance Guarantee.

8. Cont’ of products  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 820-Oct-15

9. Eligibility Requirements 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. 9 Key features 20-Oct-15

10. Cont’ Eligibility Requirements 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. 10 Key features 20-Oct-15

11. Cont’ Eligibility Requirements 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 11 Key features 20-Oct-15

12. Scope of the Guarantee Risk Coverage Pre-shipment Credit Guarantee. 75% Export Production Credit Guarantee 75% Post-shipment Credit Guarantee75% Export Performance Guarantee75% 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 12 Key features 20-Oct-15

13. Cont’ Scope of the Guarantee Guarantee Fees Pre-shipment Credit Guarantee.1% Export Production Credit Guarantee1.5% Post-shipment Credit Guarantee0.75% Export Performance Guarantee0.75% 13 Key features 20-Oct-15

14. Credit Guarantee on Construction Materials 1420-Oct-15 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.

15. Eligibility Requirements 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 15 Key features 20-Oct-15

16. Challenges Youth Mentality M&E 1620-Oct-15

17. THANK YOU