Vision and Mission
Vision:
The Leader of productive investment and the most profitable Bank at the service of poverty reduction .
Mission:
The BRD’s mission is to become the Government’s investment arm financing the nation’s development objectives with a focus on the priority sectors of the economy.
Compared to other financing institutions of the country, BRD occupies the first rank in financing such investments. In fact, it regularly finances more than 80% of investments in primary and secondary sectors.
Objectives: In order to achieve that mission, BRD carries out the following operations on its own behalf, on behalf of the Government and public institutions as well as that of companies and individuals of the private sector:
To take active interest in the creation and Development of enterprises that can contribute to the economic development of the country, by way of direct or indirect participation to the capital, subscription of bonds, cash vouchers or equivalent and granting of short, medium and long term credits;
To provide technical support in the assessment and study of problems and projects of interest to the country;
To search for and study investment opportunities useful to the development of national economy;
To promote key enterprises that arises from national development plans ;
To render technical assistance to existing enterprises and those being formed, with regard to searching for solutions to all sorts of problems relating to their organisation, operation and management ;
To mobilise both internal and external resources for investment and financing of all banking operations;
To receive and manage all types of funds, whether special or not, public or private ;
To make all the other operations that directly or indirectly facilitate the fulfilment of its purpose.
The Rwanda Development Bank operates in all sectors of productive investment which generate added value and create employment.
In its credit policy, priority is given to the new technologies and export oriented projects.
Lending Conditions
General conditions
The main conditions for obtaining the Bank’s financial backing are as follows:
A feasibility study for the project (technical and financial).
Adequate technical capacities in the field of the project for which finance is being sought,
Capacity to manage the project,
Adequate market share to ensure a good turnover level, and project profitability
A minimum participation by the promoter varying between 30 and 50% of the cost of investment according to the size of the project. For expansion projects, the contribution of the Bank can represent the totality of the necessary investment.
Guaranties
The Bank must get adequate guarantees for the loans it gives out. These are usually in the form of:
Mortgages with title deeds,
A pledge of receivables,
The joint guaranty of spouse, associates, other partners…
A guarantee from the Government, a guarantee fund, a bank, other partners, foreign organisations, etc...
The pledge of material or financial resources, …
Accidents and fire insurance, etc.
Financial condition
Interest rate
The interest rate is negotiable between the Bank and the customer and takes into account the cost of resources used for the financing, the collateral security offered, the risk of the investment, the credibility of the investor and the economic and the social impact of the project. The rate currently varies from 12 to 16% according to the cost of resources.
Repayment period
The repayment varies and can be up to 10 years depending on the cash-flow projected for the project..
At present, the average repayment period is between 7 and 8 years, which makes the B.R.D. the country’s sole financing institution specialised in long term financing.
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