The sponsor is Business Partners International (BPI), established in 2004 as a joint venture between IFC and Business Partners Limited, a South African risk financier of SMEs. Based in Johannesburg, South Africa, Business Partners has made over 35,000 investments in SMEs in South Africa to the value of about $1.2 billion and has facilitated more than 500,000 employment opportunities.

BP Rwanda has a target equity investment commitment of $8.0 million and IFC expects to invest up to $1.6 million in equity in the Fund.

1.60 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	0.0
Equity	1.60

* These investment figures are indicative

The Fund will be located in Kigali, Rwanda. Investments will be made in SMEs all over the country, although the majority are expected to be in the greater Kigali area.

The Fund is expected to have significant development impact by: - Encouraging economic development of private sector by increasing the flow of risk capital to small and medium-sized companies in Rwanda. - Providing much needed growth and expansion capital and value-enhancing advice to companies located in Rwanda, which currently lack access to both. The resulting stronger companies are expected to generate above-average rates of job creation. - Improving companies' sustainable development by helping the Fund to introduce best pratice corporate governance and E&S standards.

Through its investment and participation in the Advisory Committee, IFC will have the following roles: - Assisting the Fund mobilize additional funding and reach its second closing. - Structuring the commercial and legal terms to best in class market practices. - Providing additional industry expertise, know-how and network by nominating a local, Kigali-based, IFC representative to the Fund's board and through close cooperation with IFC's local office.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC analyzed the fund’s expected portfolio and sectors of investment, which include SMEs providing business, manufacturing, tourism and trade related services with average transaction sizes between USD150, 000 and USD250, 000. S&E risks and impacts of SMEs typically financed by BP in other countries evolve around labor and working conditions, ensuring adequate occupational health and safety, and environmental issues such as effluents, waste and hazardous materials management. Based on the analysis of the potential social and environmental risks associated with the expected portfolio and considering IFC’s investment, the IFC Exclusion List and the National laws and regulations have been determined as the Applicable Performance requirements for this project.

IFC also reviewed the funds existing Social and Environmental Management System (SEMS), and capacity to implement the same. It was found that while BP Rwanda is a new Fund; both existing BP Funds in which IFC has invested are in compliance with all S&E requirements, including the development and implementation of a SEMS, which will be utilized by BP Rwanda. The quality of S&E due diligence undertaken and staff capacity at existing BP Funds were also found to be adequate, and the Funds are reporting regularly.

As a category FI investment, and based on the review, the Fund will be required to (i) Provide a notification to IFC with regard to the adoption of the Social and Environmental Management System (SEMS), currently utilized by other BP subsidiaries, and the designation of the S&E Officer, prior to commitment; (ii) Commit to implement the SEMS to ensure that its activities are in compliance with the Applicable Performance requirements; (iii) Provide S&E training to investment staff; and (vi) Submit a periodic report to IFC as per a format to be provided by IFC.