October 26, 2023 | Kigali, Rwanda
Rwanda and Poland through its Development Bank (BGK) have signed a financing agreement EUR 23million (Frw 29 billion) to support the dairy sector. The agreement marks the first sovereign financing provided by a Polish Bank.
The long -term loan will be used to purchase a milk cooling system from a Polish manufacturer, Faspol, after the export contract for the delivery of milk cooling installation with additional equipment and construction components concluded between the Exporter (Faspol) and Importer (Rwanda Agriculture Board).
“The buyer`s credit for Rwanda is a cutting-edge financing when it comes to the Polish banking sector. Due to that the Poland-Rwanda trade relations will open for a new chapter as Rwanda is considered one of the friendliest countries for doing business in Africa. I am glad that the Polish development bank supports Polish exporters and, at the same time, responds to the developmental challenges of African countries,” - says Marek Tomczuk, member of the management board, BGK.
The delivery of nearly 400 installations to local milk collection points is intended to reduce milk losses due to improper storage and increase production capabilities and access to dairy products. Thus, it is of strategic importance for the socio-economic development of Rwanda.
“The agreement we are signing today is a testimony of the fast growing bilateral cooperation between Rwanda and Poland. The two parties are exploring more opportunities for economic cooperation,” says Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning
The loan is secured by the Polish export credit agency’s (KUKE) insurance policy. It covers, among others, results of political developments and events defined as force majeure.