HomeAbstract of 3rd-globalcmeClosing the Capital Gap for Kigali SMEs: Digital Credit, Credit Guarantees and Blended-Finance Pathways

Closing the Capital Gap for Kigali SMEs: Digital Credit, Credit Guarantees and Blended-Finance Pathways

  • Jun 3, 2026
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Abstract Book of the 3rd Global Conference on Management and Economics

Year: 2026

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Closing the Capital Gap for Kigali SMEs: Digital Credit, Credit Guarantees and Blended-Finance Pathways

Ndayisenga Jeanne

ABSTRACT:

Small and medium enterprises (SMEs) in Kigali face persistent financing constraints that hinder growth, formalization and job creation; this paper evaluates practical, Rwanda-specific financing methods digital lending with alternative credit scoring, targeted credit-guarantee facilities, blended-finance structures, supply-chain and e-invoice financing, and capacity-building linked to advisory services and assesses how they can be combined to expand affordable capital for urban SMEs. Evidence from Rwanda and comparable programs shows that well-designed digital credit models that use alternative data and algorithmic scoring reduce information asymmetry and increase approval rates for young, asset-light firms. Credit-guarantee facilities implemented in partnership with the Development Bank of Rwanda and backed by multilateral partial guarantees have demonstrably mobilized commercial lending by lowering perceived bank risk and crowding in private capital. Blended-finance packages, which layer concessional capital and technical assistance with commercial loans, have successfully scaled Micro, Small and Medium Enterprises financing in Rwanda and provide a template for replicable urban SME programs. Complementary measures fintech regulatory sandboxes, interoperable digital payments, collateral-registries, and lender capacity building are identified as enablers that improve loan terms and monitoring. The paper concludes with a prioritized, implementable menu for Kigali policymakers and financiers: (1) launch targeted guarantee windows for women-led and youth enterprises; (2) scale digital credit pilots tied to advisory services; (3) deploy blended funds for green and manufacturing SMEs; and (4) strengthen public-private coordination to monitor impact and credit quality. These interventions are positioned as practical, scalable steps to close Kigali’s SME financing gap and promote inclusive urban growth.

Keywords: Blended Finance; Credit Guarantees; Digital Lending; Financial Inclusion; Kigali Smes