CGC To Develop Credit Guarantee Framework For SMEs In Rwanda

KUALA LUMPUR, Dec 3 (Bernama) -- Credit Guarantee Corporation Malaysia Bhd (CGC) and the Business Development Fund (BDF) of Rwanda has signed a Memorandum Of Understanding (MoU) to collaborate on the development of credit guarantee framework for small and medium enterprises (SMEs) in Rwanda. With the signing of the MoU, CGC shall offer assistance and guidance to BDF to develop, design and review the credit guarantee framework to support the development of SMEs in Rwanda. CGC will also be providing technical assistance in the development of the credit guarantee schemes, policy guidelines and other operational matters, it said in a statement issued following the signing ceremony here Thursday. CGC President and Chief Executive Officer Mohd Zamree Mohd Ishak said the collaboration between CGC and BDF would enable CGC to share its 43 years of experience and expertise in SME financing and overall SME development in Rwanda. Mohd Zamree said that the collaboration would also enable CGC to share and transfer its knowledge and experience to BDF through on-the-job trainings, research, publications and study visits. CGC regularly host study visits for the development financial institutions from Asia, the Middle East and Africa. In 2015, CGC hosted study visits from the Alliance for Financial Inclusion (AFI) that had 41 delegates from 33 countries and also delegations from Bangladesh, Egypt, Japan and Korea. "Many developing countries that do not have credit guarantee institutions are observing CGC as a model and success story and want to emulate it in introducing the guarantee mechanism in their respective countries. "This is not just an acknowledgement of CGC's expertise but also of Malaysia’s capabilities in SME development," Mohd Zamree said. CGC has been at the forefront of SME development not only in Malaysia but also at international level, assisting countries such as Papua New Guinea, Mongolia, Timor Leste and other countries in the Middle East and Africa. "Rwanda and Malaysia share a long and warm friendship. Today, we are taking another step to further strengthen the relations. The MOU marks a milestone in formalising a partnership not only between BDF and CGC, but also between both countries," BDF Rwanda Chief Executive Officer Innocent Bulindi said. "The Government of Rwanda has recently enhanced BDF's mandate to support SMEs. In this regard, BDF is undergoing a transformation to strengthen its capacities, especially in developing the right skill set and expertise to deliver its new mandate. "It is indeed an honour for BDF to have the opportunity to learn from CGC's experiences, strategies and successes which have been accumulated over time in such a high calibre institution," he said. Since its inception in 1972, CGC has availed more than 430,000 financing to SMEs valued over US$13.25 billion (RM56 billion), benefitting about 315,000 SMEs. --BERNAMA