SMGF Ltd is a financial institution under the supervision of the National Bank of Rwanda (BNR), aimed for supporting refinancing of Micro Finance Institution (MFI’s), SME’s and Cooperatives.
SMGF is licensed to grant direct credit to MFI’s and SME’s operating in Rwanda as well as granting direct credit (Guarantees) obtained by them from local banks.
SMGF is classified among the non-banking financial institutions, operating as a lender and partner for certain operations with the banks and with public and international social funding facilities. For example in 2012 a convention has signed with UNDP and UNCDF to contribute in the process of increasing access to financial services to unbanked population.
The contribution of SMGF on BIFSIR programmes or financial inclusion programmes managed to sensitise MFI’s clients to expanding their financial services to unbanked population, while maintaining their performance as a financial institution. Particularly SMGF refinanced distinguished MFI’s such as COOPEC INKUNGA, PFUNDS TEA SACCO and DUTERIMBERE to mention but a few.
Among these MFI’s, COOPEC INKUNGA has extremely increased their loan portfolio up to 1 billion as well as PFUNDA TEA SACCO which raised their clients from 2000 members expands to 5000 new unbanked populations as results of mobilization programmes, building capacity of their agents through training and strengthening their lending programmes. It has committed to support PFUNDA TEA SACCO in order to satisfy their new unbanked populations and continue to contribute to supporting DUTERIMBERE MFI’s which have focused on women, so that they can get access to financial services. Training MFI’s has been done through our partners Aquadev.
So far SMGF managed to achieve 32,000 new unbanked people by end of 2014 as planned. From 2008 - 2013 SMGF has increased its loan portfolio from 100 Million up to more than I billion Rwandan francs basing on rotation of clients while maintaining non-performing loan at 0% which was an outstanding achievement compared to other financial institutions.