The Private Sector Federation and the African Solidarity Fund have signed a new agreement to enable Rwandan businesses access loans through ASF-supported credit facilities for investment projects that are covered to the tune of 80%. The new partnership also covers startups who can ask for ASF as collateral. Existing firms can also ask for refinancing or a third-party management fund to help them revitalize their operations.
“This partnership means a lot to the private sector, especially those affected by Covid-19, which sometimes made it harder for them to pay back the loans or get capital to startup businesses,” said Robert Bafakulera, director-general of African Solidarity Fund.
How Startups In Rwanda Can Access The Credit Guarantee
Rwandan startups can access the credit guarantee more easily by becoming part of the Private Sector Federation Membership community. For more information, visit their website here (https://www.psf.org.rw/index.html)
A Look At What African Solidarity Fund Does
The African Solidarity Fund, also known by its French abbreviation — Fonds de Solidarité Africain (FSA) — is a multilateral and financial guarantee agency that was founded during the 1976 France-Africa summit in Bangui, Central Africa.
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The Niger-based organization has 14 members, the majority of whom are members of regional organizations like as ECOWAS, SEDEAO, and COMESA.
Benin, Burkina Faso, Burundi, Côte d’Ivoire, Gabon, Guinea-Bissau, Mali, Mauritius, Niger, Rwanda, Senegal, Chad, and Togo are among them.
Tourism, mining, farming, telecommunications, energy, health, and transportation are just a few of the industries supported by ASF.
In addition to the foregoing, the fund serves as a consultancy entity for firms in its member states.
The guarantee financing amount for the 45-year-old body ranges from $ 200,000 to $ 22 million, with 0.5 to 2.5 percent of the security costs per year.
The body was valued at $ 26.8 billion in 2020.
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Prior to this collaboration, the Niger-based fund collaborated with a number of Rwandan financial institutions, including Bank of Kigali, BRD, and Access Bank, among others, and supported a total of 28 projects throughout the country.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer