These are the COVID-19 relief measures Rwanda’s government is offering to SMEs

The government of Rwanda has taken proactive steps to mitigate the economic effects of the COVID-19 pandemic on the country's economy. In an exclusive interview with CNBC Africa, Minister of Finance and Economic Planning Uzziel Ndagijimana highlighted the key measures being implemented to support businesses, especially small and medium enterprises (SMEs), during these challenging times. The government has set up a $100 million COVID-19 relief fund as part of its economic recovery plan. The primary objective of this fund is to offer financial support to the most affected businesses, enabling them to access affordable capital to restart and resume their operations. Specifically addressing the hard-hit tourism sector, the fund includes a special package for hotels. Given the prolonged recovery period expected for the hotel industry, the fund allows for the restructuring of hotel loans, extending repayment periods, and lowering interest rates. Minister Ndagijimana stressed that the fund caters to businesses of all sizes, provided they can demonstrate viability pre-pandemic and show a minimum 50% loss in turnover due to the pandemic. The fund will be managed by the central bank, which will then lend to banks and microfinance institutions to provide low-interest loans to eligible businesses. Small and micro-enterprises will also benefit from long-term guarantees under this relief initiative. Looking ahead, the government aims to raise additional funds to reach a total of $200 million in relief efforts. In addition to financial support, Rwanda is implementing other fiscal measures to support businesses and individuals. Increased public spending on agriculture aims to ensure food security, while social protection programs have been expanded to include more people, particularly those in the informal sector. The government is also investing in public works projects to create jobs, stimulate domestic demand, and boost overall economic activity. Further incentives, such as the postponement of tax payments, are being offered to businesses to alleviate financial burdens. Minister Ndagijimana emphasized the holistic approach taken by Rwanda to address both the social and economic aspects of the crisis. Banks in Rwanda have already begun restructuring loans to support businesses during the lockdown, and the new recovery fund will provide additional support in this regard. Beyond domestic efforts, Rwanda has accessed international loans, with a recent loan from the IMF being utilized for immediate relief, while other pre-planned loans from institutions like the World Bank will support the country in the coming year. Minister Ndagijimana clarified that the additional funding received will bolster the country's ongoing response to the pandemic and economic recovery efforts.