I&M Bank
Rwanda Plc has signed a partnership agreement with the Kaizeninvest Center to
facilitate those in the education sector to get loans at low interest rates.
The agreement was
signed on November 29, 2024.
The partnership
aims to increase investment in education, including general education, TVET,
secondary education and other different levels, as they receive loans through
I&M Bank's EduFinance program.
Educational
institutions want loans for use in various things, such as expansion, purchase
of certain materials, etc. at an interest rate of 12% from the existing 17%.
The CEO of
I&M Bank Rwanda Plc, Benjamin Mutimura, expressed that they prioritized
supporting education because it is the foundation of the country's development.
He said,
“Education is not an ordinary sector, it is the backbone of the country's
development. At I&M Bank we are ready to provide financial solutions. It
will help companies to provide quality, productive education in order to
promote and increase investment.”
He pointed out
that the program will bring down the interest rate on loans by 5% from the
usual one, something that will make the investors to be afraid about the loans.
He said, “It is a
great step to see a 5% interest rate cut. If someone was paying a loan at 17%
interest and is going to pay it at 12% it is a big deal. We believe that the
result will also reach the teachers and students."
This partnership
between I&M Bank and Kaizeninvest reinforces the desire to develop the
education sector as an important pillar in the development of the country.
The CEO of
Kaizenvest, Lalvani Jetu J.T, expressed that they are determined to cooperate
with I&M Bank Rwanda Plc in order to solve the problems that often arise in
education.
He said, “Access
to capital is often a major problem for non-government microfinance
institutions but we are working to change that by providing financial
solutions. The signed partnership agreement is a significant step forward that
will help us reach more schools and provide the necessary support for
development.”
He pointed out
that these loans make a difference in helping educational institutions expand
their facilities, increase the number of students and make children have a
better place to learn.
He emphasized
that they are determined to work in this way in order to help children get the
opportunity to learn and prepare a better future for everyone.
This partnership
comes at a time when many educational institutions are struggling to meet their
financial needs due to the long-term impact of various epidemics including
Covid-19.
It is expected
that it will have a positive impact in the field of education, increase the
capacity of institutions to provide quality education and make a significant
contribution to the development of Rwanda.
I&M Bank
continues to prove itself as an important partner in the field of education and
development of small and medium enterprises (MSMEs), in various economic and
other sectors.
Kaizenvest is an
investment management company in developing countries, aiming for the future of
education and employment.
The company
manages private equity and credit investments, mainly in countries in South
Asia and Sub-Saharan Africa, and operated in South Africa.
He decided to
focus on education and technology.
CATALYZE
EduFinance Rwanda is a USAID project that is raising more than $6,045 million
to support the education sector in Rwanda.
