By EMMANUEL RUTAYISIRE
The East African
Posted Saturday, March 9 2013
- The loans are meant to finance small and medium enterprises in the agricultural sector and electricity rollout in rural Rwanda.
- Rwanda’s SME segment has been exhibiting a high appetite for investment capital over the past couple of years even as most local financial institutions continue to shun it, considering it a high-risk area.
Rwanda’s recent aggressive borrowing saw lawmakers raising concerns last week over the surge in the country’s cost of debt hurting the economy, which is also facing pressures from global economic uncertainties and aid suspensions.
Analysts view these as strategic decisions, particularly borrowing to finance SMEs, which account for 90 per cent of the businesses in Rwanda and 84 per cent of private sector employment.