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Project Information

Summaries of proposed guarantees are provided prior to Board consideration and final contract signing, and therefore are subject to change. Project briefs are disclosed after contract signing and do not reflect subsequent modifications (e.g., changes in guarantee amount).
Project Name Banque Rwandaise de Development S.A.
Guarantee Holder ADC Financial Services and Corporate Development
Investor Country Mauritius
Host Country Rwanda
Sector Financial Services
Gross Exposure ($million) 5.85
Fiscal Year 2009
Status Proposed
Project Number 7675
Environmental Category FI
Date SPG Disclosed August 19, 2008
Project Board Date September 04, 2008

Project Description

This summary covers an investment by ADC Financial Services & Corporate Development (ADC) of Mauritius in Banque Rwandaise de Developpement (BRD). BRD—Rwanda’s development bank—is owned by the Government of Rwanda, bilateral development agencies and private investors. ADC has committed $6.5 million equity to acquire a 25 percent stake in BRD through a capital increase, and applied for a MIGA guarantee of approximately $5.85 million. The proposed guarantee will cover the investment for up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

Environmental Categorization

BRD has two main business lines: lending to SMEs and making equity investments in greenfield businesses that are seen to be central to Rwanda's growth. The latter activity may have social and environmental impacts. The project is thus categorized as FI under MIGA’s environmental and social sustainability policy and will need to establish a Social and Environmental Management System to ensure it meets MIGA’s requirements under the Performance Standards. The project enterprise has agreed to formulate and apply a draft Management System within six months and finalize it within 12 months of signing MIGA’s guarantee contract. The investor will inform MIGA of the content of this Management System, and MIGA will monitor BRD’s performance on the basis of this System.

Development Impact

Fostering broad-based growth in economic activity and in the private sector is important for Rwanda’s continuing economic recovery. BRD plays an important role in the creation and development of companies and products that can contribute to the economic development of Rwanda, by providing capital as well as cash vouchers, subscribing to bonds, and granting short, medium and long-term credits. This project is expected to have a positive impact on Rwanda’s economy by providing BRD with the necessary capital to increase its lending portfolio in the country, thereby helping it to increase its support for SMEs and greenfield businesses.

Rwanda is an IDA-eligible country. MIGA’s participation in the project would, therefore, be aligned with the agency’s priority of supporting investment into the world’s poorest nations. If MIGA proceeds with the project, it will be underwritten through the agency’s Small Investment Program.


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