Consultancy Services for the Assessment of Determinants of Loan Pricing by Financial Institutions and Their Impact on Access to Credit by Msmes in Rwanda
Confidential
Published 1 week ago · Expires 4 weeks from now
Job description
About the Organization
Access to Finance Rwanda (AFR) is part of the broader Financial Sector Deepening (FSD) network in Africa. AFR works to contribute to more inclusive and sustainable economic growth through financial inclusion and financial sector development by engaging with policymakers, regulators, financial service providers, and other market actors.
Background
Access to affordable credit is a critical driver of economic growth, financial inclusion, and private sector development. In Rwanda, financial institutions play a central role in providing loans to individuals and businesses in productive sectors.
The Government of Rwanda has implemented several initiatives to support Micro, Small and Medium Enterprises (MSMEs) in accessing finance and advisory services, including:
- Guarantee schemes
- Leasing facilities
- Agribusiness facilities
These initiatives operate under the Business Development Fund (BDF). Other ecosystem actors also support similar programs.
Problem Statement
Despite efforts by the Government and stakeholders to build an inclusive financial system, many MSMEs struggle to secure appropriate funding. Key barriers include:
- High cost of borrowing
- High collateral and documentation requirements
- Unsuitable financial products
- Risk aversion from financial institutions
- Lengthy procedures
Assignment Scope
This consultancy seeks to assess the determinants of loan pricing by financial institutions and analyze their impact on credit access by MSMEs in Rwanda.
Location
Kigali, Rwanda