The Microfinance Support Project allowed this man to obtain a loan to start up his local business.

Access to Timely Financing for Rwandan Entrepreneurs

Jean-Claude Ndayambabaje is a 24-year-old entrepreneur in Kigali. He is a young man, but already he runs an Internet café with ten computers and an Internet connection. “When people around me find out my age,” he says, “they often ask, "Who helped you get started?" I tell them it was Agaseke Business Financial Centre. It's different from any other institution. It has easier, more flexible requirements than banks do.”

Agaseke (“small basket”) Financial Centre for Entrepreneurs (CFE Agaseke) opened in Kigali in December 2003. This innovative institution was established with assistance from the Canadian International Development Agency (CIDA) and Développement international Desjardins (DID) through the Support to Microfinance project in Rwanda. This project promotes Rwanda's economic growth. It also supports governance, one of the five areas of focus specified in Canada's International Policy Statement—A Role of Pride and Influence in the World.

CFE Agaseke was created to offer specialized financial services to small businesses and micro-enterprises in Rwanda, a clientele often ignored by traditional banks. “Every month, CFE experts come to see how our businesses are doing. They give us advice and review our books, to make sure we keep accurate records. CFE helps its clients to create and properly manage income-generating projects, activities that are of real benefit to the community,” explains Mr. Ndayambabaje.

Supporting Private Sector Development

By supporting private sector development, CFE keeps a key engine of the community's economy running. CFE also contributes significantly to local ownership and poverty reduction. Marie Claudine Mukamabano runs a small decorating business in Kigali. She, too, has benefited from CFE Agaseke's support. She says this institution has changed the lives of many aspiring entrepreneurs since it came on the scene. “A lot of people here have ideas for starting up a business,” she adds, “but they don't have the means to put their ideas to work.”

Clients

CFE Agaseke attracts about 700 new clients each month. The institution now does business with some 15,000 people. Its loan portfolio is worth about $1 million, and 40 percent of its loans are made to women. CFE has six branches. Three are in Kigali, the capital of Rwanda. The other three are in the provinces of Butare, Gitarama, and Ruhengeri. Jean Thiboutot, a professional with DID, served as CFE's director general for its first 17 months. “Clients come mainly from the business and service sectors. They are evenly distributed among all ages,” he reports. “They say they are very happy to have services available close to home, with extended business hours. They also feel confident, because procedures are automated, and the National Bank of Rwanda guarantees their loans.”

Employment Opportunities

CFE Agaseke also represents an attractive employment opportunity for young women and men in Rwanda. Its six branches have a total staff of about 50. Employees are mostly young, with the majority still under 30. When they join CFE, they receive training and support to enhance their professional skills. Some even have access to training programs overseas. All receive financial assistance to encourage them to continue their education in fields related to their work.

In addition to the support that CFE Agaseke provides, and again with help from CIDA, Développement international Desjardins is working with the National Bank of Rwanda to develop a legal and regulatory framework to govern Rwanda's entire microfinance sector.