Rwanda | BCR to reward best SME’s in Rwanda
The management of Commercial Bank of Rwanda (BCR) has announced a new way of motivating best performing Small and Medium Enterprises (SMEs).BCR will reward institutions which have excelled implementation of the capacity building programs conducted by the bank.
At least 160 to 200 SME personnel are annually trained in a programme sponsored by BCR and The German Development Cooperation (GIZ) as part of the public private partnership programme.
The programme seeks to enhance SME skills in areas of essentials of accounting, booking-keeping, financial reporting and management, human resource, cash flow management and tax return filing.
These trainings are facilitated by professional bankers and financial experts- who are also BCR bank officials and hired experts in the banking and finance management sector.
The competition is due to start next month (May, 2012) and will involve all SME’s in the race for the lucrative prize which will see the winners get a special training programme in Kenya or South Africa.
“SME’s are the back bone of Rwanda’s progress, if this country is to progress, we must make SME’s strong and competitive. This will enable the SME’s to manage their businesses and more business will grow in the process. This in turn will also increase the government’s tax revenue and enable banks to recover money” BCR’s Managing Director, Sanjeev Anand explained.
Anand insisted that financial management and accounting are very essential for all business especially for SME’s, saying that the growth of all businesses must be based on a profound financial system of accounting.
BCR ha has also made a commitment to build that capacity of SME’s in Rwanda and on April 3, the bank launched a four day training programme to enhance the accounting skills drawn from Small and Medium Enterprises (SMEs) countrywide.
Anand said that the trainings will enable the SME’s to survive and manage their business, and reduce on the problems of most SME’s not being able to survive for long or even close due to lack of capacity and skills of management.
The Government of Rwanda has a vision to become a middle-income country In order to achieve this goal the medium term Economic Development and Poverty Reduction Strategy
(EDPRS) states that it must achieve an annual GDP growth rate of 8.1% and increase off-farm employment to 30% by 2012.
Small and Medium Enterprises (SMEs) and micro enterprises in Organization for Economic Cooperation and Development (OECD) countries account for over 95% of all firms, 60-70% of
Employment and 55% of GDP and create the majority of new jobs, indicating the impact SMEs have on employment. In contrast, currently over 80% of Rwandans are engaged in agricultural production. The SME sector, including formal and informal businesses, comprises 98% of the businesses in Rwanda and 41% of all private sector employment — though the formalized sector has much growth potential with only 300,000 currently employed. Most micro and small enterprises employ up to four people, showing that growth in the sector would create significant private sector non-agricultural employment opportunities.