IFC Global Trade Finance Program Expands to Rwanda

*BCR becomes the first beneficiary
* Boosting International Trade Prospects for Local Businesses

The International Financing Cooperation (IFC), a member of the World Bank Group, announced on Thursday Novermber 29, that Banque Commerciale du Rwanda (BCR) is the first bank in Rwanda to join IFC’s Global Trade Finance Program.
According to a press release issued by the World Bank office in Kigali, IFC will issue guarantees of up to $2 million against the bank’s underlying trade transactions, covering payment risk and helping increase Rwanda’s global trade volumes.
The release notes that the transaction is IFC’s third in Rwanda in less than a year, reflecting a commitment to increasing activities that support the country’s sustainable economic growth.
IFC is focusing on mobilizing investments and providing advisory services in key sectors for maximum development impact, including financial markets, tourism, agribusiness, infrastructure, and construction.
“Working with IFC will greatly increase our capacity to facilitate trade between Rwanda and other countries, promoting the private sector and contributing more to economic development,” said David Kuwana, Managing Director of BCR. “We see this as a first step in a collaborative partnership with IFC.”
The IFC Global Trade Finance Program was launched in 2005 to support trade with emerging markets worldwide and promote flows of goods and services between developing countries. IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks and to enhance their trade finance coverage.
“Trade finance is part of IFC’s strategy to help Africa become fully engaged in global trade,” said IFC Executive Vice President and CEO Lars Thunell (Above), who signed the agreement during a two-day visit to Rwanda. “I look forward to working with BCR to create opportunities for economic growth.”
To date, the IFC Global Trade Finance Program has provided about $1.5 billion worth of guarantees to issuing banks in developing countries. The program has supported $2.2 billion in trade globally since 2005, of which $1.2 billion was trade involving a Sub-Saharan African nation. The program includes 29 issuing banks as participants in 15 countries of Sub-Saharan Africa, including such conflict-affected countries as Burundi, the Democratic Republic of Congo, Liberia, and Sierra Leone. In conjunction with Rwanda Investment and Export Promotion Agency (RIEPA), Lars addressed a press conference on FRIDAY November 30. Lars visit is to discuss with the Government of Rwanda and The private Sector, IFC activities and how best IFC can help Rwanda achieve its development objectives.