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SME Fund Presentation

March 2026
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What We Offer

What the Rwanda SME Growth Fund offers SMEs

01

Flexible Capital Solutions

  • Senior secured & unsecured debt (first-ranking)
  • Embedded equity upside: warrants, kickers & PIK features
  • Selective equity only where clear exit is identified
  • Self-liquidating structures, capital recycled on repayment
02

Strategic Partnership

  • Long-term investment horizon (5–6 years avg; up to 10 years max)
  • Patient capital aligned with growth journey
  • Access to pan-African network & markets
03

Technical Assistance & Support

  • Business capacity building programs
  • Financial management strengthening
  • ESG framework implementation

All investment offerings made by Enko involve risk – capital is at risk and projected upsides are not guaranteed.

Target Companies

Target Companies

The Rwanda SME Growth Fund focuses on established, growth-stage SMEs in Rwanda. 80% target allocation to four priority sectors; 20% to other high-growth sectors (max 30% per individual sector).

Sector Allocation
Priority Sectors (4)Max 80%
Other High-GrowthMax 20%
Per Individual SectorMax 30%

🌾 Agro-Processing

Grain milling, food processing, value addition

Max 30%

🏭 Manufacturing

Consumer goods, industrial products, packaging

Max 30%

🏗️ Infrastructure

Construction, logistics, warehousing

Max 30%

⚡ Energy

Renewable energy, energy access, distribution

Max 30%

🚀 Other High-Growth

Tourism, healthcare, telecom, financial services

Max 20%
Ticket Size & Instruments

Ticket size and instruments

Investment Range

RWF 1.0–7.5 Bn

Per transaction, disbursed in tranches (Fund in US$). Up to RWF 15.0 Bn with co-investment.

Total cost of capital ~19–20% indicative (RWF)
Risk-free + spread 600–700 bps gross
Running coupon ~15%
Embedded upside (warrants, kickers, PIK) gross IRR ~19–20%

Investment Instruments (primarily senior debt):

  • Secured Debt
    First-ranking, asset-backed
  • Senior Unsecured Debt
    First-ranking, cash flow based
  • Capital Recycling
    Repaid capital can be redeployed
  • Convertible Features
    Embedded equity upside in debt
  • Equity Warrants & Kickers
    Embedded upside mechanisms
  • Payment-in-Kind (PIK)
    Deferred interest features
  • Selective Equity
    Only with pre-identified clear exit
Eligibility Criteria

Eligibility Criteria

SME Definition & Eligibility Criteria

🏭

Revenue

  • Rwandan-registered companies
  • Meaningful annual revenue and proven commercial traction
💰

Financial Requirements

  • 3 years positive EBITDA (ideally above RWF 300M)
  • Debt/EBITDA below 3.0x
🌾

Prioritised Sectors

  • Agro-processing
  • Manufacturing
  • Infrastructure
  • Energy & services
  • Tourism
📈

Business Stage

  • Min. 3 years of operations
  • EBITDA positive
  • NOT early-stage or pre-revenue
💼

Funding Need

  • Entities able to absorb RWF 1.0–7.5 Bn
  • Funding deployed in tranches aligned with milestones
⛔

Exclusions

  • Greenfield / early-stage / pre-revenue companies
  • Listed companies / sovereign debt
  • Full IFC exclusion list applies
What Makes a Compelling Deal

What makes a compelling deal

Beyond eligibility, what we evaluate:

📈

Track Record

Demonstrated ability to deliver on business plans and contracts.

💰

Repayment Clarity

Identifiable cash flows to service debt; clear exit or repayment path.

⚖️

Governance & Transparency

Willingness to adopt board oversight, reporting and audit standards.

👥

Management Quality

Experienced team with clear growth vision.

🎯

Market Position

Competitive advantage or market leadership.

🚀

Growth Potential

Clear path to 2–3x revenue in 5 years.

🌱

ESG Alignment

Commitment to sustainable business practices.

📊

Financial Discipline

Audited financials and internal controls.

How We Add Value

How we add value

💼 Financial Expertise

  • $1.5 billion AUM across Africa
  • 17 years of SME investment experience
  • Proven track record: 10%+ net IRR in private equity
  • Structured 200+ deals across 20+ African countries

🌍 Local Knowledge

  • Rwanda office operational since 2023
  • Licensed by CMA Rwanda (AM/011/CMA/2024)
  • Understanding of local regulations
  • Strong relationships with RDB, BRD, local banks

⚖️ Governance & Best Practices

  • Board representation and strategic guidance
  • ESG framework implementation (IFC PS standards)
  • Financial reporting and controls strengthening
  • Audit and compliance support

🚀 Growth Acceleration

  • Access to 6 African offices and networks
  • Strategic introductions to partners & customers
  • M&A and exit planning support
Collateral & Risk Mitigation

Collateral & Risk Mitigation

How we approach security and collateral requirements

🏠

Accepted Collateral

  • First-ranking security
  • Real estate & movable assets
  • Receivables, share pledges & cash flows
⚖️

Coverage Ratio

  • Assessed case-by-case
  • Cash flow coverage often more important than asset cover
🤝

Guarantee Schemes

  • BRD guarantee facilities may be used where eligible
  • Available to bridge collateral gaps
💲

Interest Rate Breakdown

  • Rate: ~15–16%
  • Mgmt. fee: 2.5% (steps to 2% after $50M or 18 months)
  • Reserves: ~4%
  • Total: ~19–20%
⏳

Loan Terms & Grace Period

  • 5–6 year avg tenor (up to 10 years max)
  • Up to 18–24 months grace period
  • Maturity within fund term
📊

KPI & Reporting Requirements

  • Quarterly financials & annual audits
  • Jobs created & ESG metrics
  • Revenue growth tracking
Process

Process

From First Meeting to Disbursement: ~12 weeks

1
2 weeks

Initial Screening

  • Preliminary discussion of business & financing needs
  • Review of financial summary and business plan
  • Assessment of fit with investment criteria
  • Term sheet indication if aligned
2
3 weeks

Due Diligence

  • Financial analysis and modeling
  • Legal, tax and regulatory review
  • ESG screening and risk assessment
  • Management interviews and site visits
3
3 weeks

Investment Committee

  • IC presentation and approval process
  • Final structuring and pricing
  • Negotiation of key terms
  • Agreement on covenants and reporting
4
4 weeks

Legal & Closing

  • Legal documentation preparation
  • Collateral perfection and registration
  • Board and shareholder approvals
  • Disbursement in agreed tranches
Total Timeline
~12 Weeks
Application to
First Disbursement
Required Documents & Application

Required Documents & Application

What to prepare before submitting an application

📂

Financial Documents

  • 3 years audited accounts
  • Management accounts
  • Cash flow projections (3–5 years)
📜

Legal & Corporate Documents

  • Certificate of incorporation
  • Ownership structure
  • Shareholder agreements
  • Licenses
📋

Business Plan & Use of Funds

  • Strategic growth plan
  • How funding will be deployed
  • Key milestones
🏷️

Collateral Documentation

  • Asset valuations
  • Land titles
  • Insurance certificates
  • Pledge documentation
👥

Management Team

  • CVs of key executives
  • Board composition (if existing)
  • Organisational chart
📅

Timeline & How to Apply

  • Submit via Enko Capital Rwanda
  • Approx. 12-week process from application to disbursement
Impact

Impact

Alignment with Rwanda's Development Priorities

📈 Economic Growth

  • Supporting 15–20 businesses by 2027
  • Deploying US$50M (target) in productive sectors
  • Contributing to GDP growth through SME financing

👥 Job Creation

  • Direct: new jobs in portfolio companies
  • Indirect: value chain employment
  • Focus: youth & women employment opportunities

🌱 Climate & Sustainability

  • Alignment with Rwanda's Green Growth Strategy
  • IFC Performance Standards (IFC PS) compliance
  • ESG metrics tracking and improvement support

⚖️ Gender Equality

  • Support for women-owned/led businesses
  • 2X Challenge gender finance criteria (where applicable)
  • Female employment creation targets
UN SDG Alignment
SDG 5 — Gender Equality SDG 8 — Decent Work & Economic Growth SDG 9 — Industry, Innovation & Infrastructure
Fund Structure & Governance

Fund Structure & Governance

Rwanda-focused US$50M fund: roles, governance and key investment limits

🏛️

RSSB's Role

  • US$30M anchor investor
  • Represented on the LPAC (advisory committee)
💼

Enko Capital's Role

  • Investment Manager: ECRL
  • GP: Enko SME Fund Rwanda Ltd
  • Sourcing, DD, IC approval, monitoring & TA
🏦

Partner Banks

  • Disbursement via licensed Rwandan commercial banks
  • Direct lending by Enko also possible
🔍

Governance & Reporting

  • Annual audited reports
  • Quarterly updates
  • LPAC oversight
  • Independent Investment Committee
🤝

Key Investment Limits

  • Max 10% per company (or US$10M while Fund <US$100M)
  • Max 30% per sector
  • Max 30% for refinancing
💰

Fund Size & Target Businesses

  • US$50M target fund size (USD-denominated)
  • 15–20 portfolio companies
  • Across priority sectors
Frequently Asked Questions

Frequently Asked Questions

How is this different from a local bank loan?
The Fund offers longer tenors (5–10 years vs typical 1–3 year bank loans), flexible structures including grace periods of up to 24 months, and embedded equity upside features. Unlike banks, we also provide hands-on technical assistance, ESG support, and strategic introductions through our pan-African network.
Is this a private equity fund looking to buy Rwandan businesses?
No. The Fund primarily provides debt financing, not equity buyouts. Our instruments are mainly senior secured and unsecured loans that are repaid over time. We only take selective equity positions where a clear exit is pre-identified, and we do not seek controlling stakes in portfolio companies.
Why are startups and early-stage companies excluded?
The Fund targets SMEs with 3+ years of operations and positive EBITDA to ensure debt can be serviced. Early-stage businesses are better suited to venture capital or grant funding.
Next Steps

Next Steps

Ready to explore partnership opportunities?

Contact: Enko Capital Rwanda Ltd, Kigali

Licensed by CMA Rwanda

1
This week

Schedule Initial Meeting

30–60 minute discussion of your business, growth plans, and financing needs.

2
Within 1 week

Information Sharing

Provide recent financial statements, business plan, and key company documents.

3
1–2 weeks

Preliminary Assessment

Our team evaluates fit with investment criteria and provides initial feedback.

4
3–5 weeks

Begin Due Diligence

If aligned, we initiate formal due diligence and move toward term sheet.