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Business Partners International Rwanda SME Fund
Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number 29948
Rwanda (IDA)
Sector1Private Equity/Venture Cap Fund - Country
Environmental categoryFI
Date SPI disclosedApril 6, 2011
Projected board dateMay 15, 2011
Previous EventsInvested: February 1, 2012
Signed: June 8, 2011
Approved: May 16, 2011
  Overview     Sponsor/Cost/Location     Development Impact     Contacts     Attachments  

Project description
The proposed project is to establish an $8 million investment fund, Business Partners International Rwanda SME Fund (“BP Rwanda”), capable of delivering finance and technical assistance to local SMEs in a commercially sustainable manner and generating an acceptable return to investors in the Fund.

BP Rwanda represents the fourth IFC investment in a local investment fund managed by Business Partners International (“BPI”). To date, IFC has invested $5.0 million in BP Kenya (IFC project no. 23826) and $3.7 million in BP Madagascar (IFC project no. 23825). A third fund, BP Mozambique (IFC project no. 26028, $1.6 million) is Board approved and expected to become operational in the second quarter of 2011.

The Fund aims to overcome the main obstacles in providing finance to smaller SMEs, namely: (i) lack of collateral and weak enforcement for debt providers; (ii) lack of upside opportunities for equity investors; (iii) high cost of appraisal; (iv) lack of controlling positions; and (v) limited exit potential.

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