Retail company Bugepro Ltd was voted the best performing small and medium enterprise in Rwanda, beating stiff competition from more than 100 companies.

Canopies Ltd, which deals in construction and telecommunications, came second, followed by retail company Hotpoint Appliances in third place and Nyakayaga Traders in fourth.

Agribusiness firm Agrotech was fifth while another retail company, Confianza Sarl, came sixth in the rankings.

The competition, organised to recognise the role played by SMEs in economic development, was sponsored by Nation Media Group’s publication Rwanda Today, the Rwanda Development Board (RDB) and the international audit firm KPMG.

Recognise and award businesses

To qualify for the competition, companies were required to have had a turnover of between Rwf50 million and Rwf6 billion, be not listed on the stock exchange, have three years of audited accounts and also not be a bank or financial institution.

Companies in the construction, manufacturing, information and communication technology (ICT), retail and hospitality sectors dominated the competition.

“Such competitions recognise and award businesses that have excelled, highlighting their strengths and weaknesses, and helping them make informed decisions about which areas to improve,” said Claire Akamanzi, acting chief executive officer of RDB.

Some businesses have registered continued growth amid unfavourable economic conditions, both locally and internationally, said Ms Akamanzi, adding that such competitiveness and innovation are critical in contributing to economic growth.

However, lack of access to capital is still a major bottleneck to the growth and expansion of businesses since 50 per cent of them plan to open shop in other countries in the region.

Solve lack of access to capital

The problem of access to finance is however easing in the region following the increasing number of commercial banks and private equity funds operating regionally.

“We now have more banks in Rwanda than before. Credit performance has been going up with equity funds such as Fusion Capital, which came this year, and Groffin Venture Capital, and all this will help solve lack of access to capital,” added Ms Akamanzi.

Unlike other SMEs, the recognition and ranking of these companies gives them leverage when negotiating for loans with financial institutions. Financial institutions have in the past harboured fears about lending to SMEs because of lack of collateral and the absence of a well-documented track record of access to credit.

“Financial institutions also use the database that comes out of the survey to approach these various companies and there is proof that companies have been able to acquire credit out of this exercise,” said John Ndunyu, the KPMG country manager in Rwanda.

Companies in the list of Top 100 that have grown beyond the SME level will be promoted to Club 101, which will mentor upcoming SMEs.

The government has also increased tax incentives for SMEs in order to help them grow further. Businesses with capital investment of less than Rwf2 million are exempted from taxes, up from Rwf1.2 million previously.

“The ranking of Top 100 can be used by these companies as a marketing tool whenever they are communicating about their products, and this can help boost their potential to attract investment and access credit,” said NMG’s Rwanda country manager, Philip Velese.

Elve Rutagengwa, the managing director of Access Ltd, whose marketing company scooped the Young Entrepreneur of the Year award, admits that small businesses still suffer from financing challenges.

“Due to lack of funds, we find ourselves unable to satisfy the demand in the market,” said Mr Rutagengwa.