Alex Rosen, the Managing Director of VIEBEG Medical Ltd(L) and Dr. Diane Karusisi, CEO of BK at the signing
Bank of Kigali (BK) and VIEBEG Medical Ltd. have signed a landmark financing partnership aimed at facilitating access to medical equipment and supplies for private healthcare service providers and empowering the sector with the resources needed to enhance healthcare services in Rwanda.
The partnership agreement is a new venture into the healthcare domain, where the bank plans to provide financing solutions for the acquisition of medical equipment, support for healthcare providers to improve service delivery and in the long term ensure economic stability and growth in the healthcare sector.
The signing of the partnership agreement, held on June 6, 2024 was penned by both parties represented by BK CEO, Dr. Diane Karusisi and Alex Rosen, the Managing Director of VIEBEG Medical Ltd.
Dr. Diane Karusisi explaining the importance of the partnership to transform lives
Dr. Diane Karusisi said that the partnership negotiations have been in the pipeline for a full year and reaching the finishing line of putting this on paper is remarkable for the bank that seeks to lead the agenda of transforming lives in Rwanda.
As a bank providing financing for the equipment supplies, Karusisi said that they lack the expertise to know which equipment is recommended and that is where VIEBEG expertise will come in as a leading company in medical supplies in Rwanda.
Alex Rosen and Dr. Diane Karusisi (Right)
“We believe that together we can support these clinics. Overall as Bank of Kigali, we want to transform lives and it starts with good healthcare,” Karusisi said.
“We have to do what we have to do, which is what we do best- financing business and eventually provide better healthcare for Rwandans and we are all beneficiaries if we can get good treatment and up-to-date medical equipment,” “We believe it is a win-win partnership and at the end of the day, everyday Rwandans are going to benefit from this.”
Alex Rosen
Alex Rosen said that VIEBEG, which was founded in 2018 has experience in the healthcare supply chain and has expanded from dental and medical supplies to consumer goods and pharmaceuticals- becoming the largest supplier in the country.
However, considering the biggest challenges in the medical system- lack of access to resources, equipment, doctors, consumable healthcare products; the company has collected feedback from clinics who say that they lack financing for products and equipment.
This resulted in reaching out to banks in Rwanda and BK was one of the banks that quickly came onboard to provide a solution – equipment financing.
“The combination of that, as said it is the finish line of the start processes, is to sign the agreement, start with equipment financing and make sure that as much as possible, preventable death due to lack of healthcare, equipment and facilities is avoided,” Rosen said.
How Will This Work?
VIEBEG will supply the needed medical equipment and supplies for private medical facilities and BK will provide up to 80% financing of the equipment’s value.
Viebeg Medial Ltd and Bank of Kigali officials who witnessed the partnership signing ceremony
Private clinics and health facilities across Rwanda will be able to apply (through BK or VIEBEG) for the facility and the funding for medical equipment or supplies will be provided by VIEBEG with up-to-date health products coming from its global network in Europe, China, India among others.
There will be no collateral for applicants seeking this financing facility but VIEBEG will verify (the applicant’s capacity to sustain the facility) and the repayment duration will be up to 5 years.
Olivier Watrin, the Chief Information Officer at VIEBEG said that they will guarantee standards and supply of the requested medical products with due diligence but also provide biomedical technicians to maintain the equipment for a lifetime.
This kind of approach (model) is expected to be extended to the public sector however it will also enable Rwanda to cut down on issues of purchasing substandard medical equipment and having idle medical equipment as indicated by the Auditor General’s financial reports for some years.
