The Development Bank of Rwanda (BRD) has unveiled a new loan product exclusively for women, offering financing from RWF 100 million to RWF 2 billion at an interest rate of 12%, repayable over up to 10 years. The initiative, launched on October 28, 2025, aims to expand women’s participation in business by reducing traditional barriers to financing.
This is the first loan facility in Rwanda specifically designed for women. Justin Ndatabaye, BRD’s Head of Business Development, explained that last year only 15% of the bank’s loans were granted to women. “We wanted to understand why women were not applying for loans,” he said. “After discussions, we discovered that the main challenges were related to providing sufficient collateral and the high interest rates and short repayment periods often imposed by banks and microfinance institutions.”
To address these challenges, BRD introduced the “Shabuka” loan, tailored to women’s financial needs. The program targets projects led by women or businesses where at least 40% of ownership is held by women and women are represented on the board of directors. Borrowers are required to provide only 15% collateral, compared to the 100% usually demanded by commercial banks. “What we finance is what we take as collateral,” Ndatabaye explained. “If we buy you machinery or construct a commercial building for your business, those assets become your security.”
Business leaders have welcomed the initiative. Donatha Mukanyarwaya, who has been in business since 1975, highlighted the benefits: “In most banks, the interest rates are high and repayment periods are short. With this loan, the interest rate is lower, and the repayment period is longer. That will help our businesses grow instead of constantly struggling to repay loans quickly.”
The Shabuka loan is provided directly by BRD, without requiring partnerships with other financial institutions. This allows women who already have loans with other banks to apply. Celine Tahaninka, CEO of Tahacel Company Ltd, said the program addresses a key barrier: “Sometimes you win a big contract that exceeds your current capacity, but you can’t secure additional financing because you’re already listed in CRB. This program eliminates that barrier and will significantly empower us.”
All additional fees, such as processing and commission charges, are included in the 12% interest rate, making repayment simpler and more transparent. The facility is open to women and women-led businesses operating in sectors such as agriculture, manufacturing, energy, infrastructure, housing, health, education, transport, and technology.
The “Shabuka” program is set to empower Rwandan women entrepreneurs, providing them with access to finance, reducing dependency on traditional collateral requirements, and fostering growth across diverse industries.
