IFC to Inject US $4.8 Million in Rwandan Private Education Sector

The International Financing Corporation (IFC), an affiliate of the World Bank Group, is to provide US$4.8 million lending support to schools and education services providers in Rwanda, an IFC press statement issued on Friday has disclosed.

According to the statement, the initiative, in partnership with the Rwanda Development Bank (BRD), is designed to help improve the business environment for private education in the country.

“The support is in consideration of enormous challenges facing private education in the country,” the statement said.

The IFC Director for Sub-Saharan Africa, Thierry Tanoh, said “this initiative demonstrates IFC’s effective combination of investments and advisory services in undertaking small-scale projects that have a high development impact.”

IFC will also design a comprehensive advisory programme to help strengthen the financial, management, and educational capacities of private schools and develop an independent provider of education services.

The director general of BRD, Théogène Turatsinze, confirmed the IFC support in an interview on Friday.

He noted that the partnership will enable the bank to increase its education portfolio to US $ 13 million while minimizing risk.

IFC will also provide advisory services to help the bank build capacity to conduct due diligence of educational institutions and monitor its portfolio.

Despite a strong demand for private education, a priority for the Rwandan government, most private school operators do not have access to long-term loans locally. This hinders their ability to grow or operate effectively.

In the financial year 2007, IFC committed US $10 million to investments in Rwanda, thereby growing its investment portfolio to US$10.8 million as of June 2007.

Source African Press Agency

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