Banking sector buoyant as net profit rise by 54 percent

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The banking sector remained   profitable in 2014 recording a net profit increasing by 54.3%, a positive outlook that   provides optimism for a better performance this year. The sector  that  dominates the   financial sector  is looked at to   boost  access to credit  by  private sector to  drive  economic growth needed to  push the  country  to  middle income   by 2020. Central Bank  statistics indicate that  the  sector’s  net profit  after tax for the industry rose to Rwf34.94 billion December 2014    up from   rwf22.64 billion  in the same period in 2013 while its Return on assets  (ROA) and return on equity (ROE) stood at 1.9% and 10.8% respectively. “From stability and robustness perspective, the sector is sound and…

Nyabihu: Rural banks urged to priorities loans to farmers

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Angela Mukaminani, the vice mayor for finance and economic development of Nyabihu district has called on rural banks to give priority to farmers in their loan allocations to assist small farmers acquire loans to invest in agriculture. She made the appeal on Feb, 17, in a meeting with farmers and financial institutions that operate in the district. She required banks and related financial institutions to grant more loans to agriculture-related sectors, saying the current credit supply for the countryside remains insufficient and that it is hard for farmers to access bank loans. She indicated that majority of farmers were located in the rural areas where rural banks operated, and as such there was the need…

Nyabihu: Inzego z’ibigo by’imari n’amakoperative zirasabwa ubufatanye

Amakoperative arahamagarirwa gukorana n’ibigo by’imari kandi izi mpande zombi zikarangwa n’ubufatanye mu rwego rw’iterambere.

  Ibi bikaba byagarutsweho na Mukaminani Angela,umuyobozi w’akarere ka Nyabihu wungirije ushinzwe iterambere ry’ubukungu n’imari,mu nama ya “Access to finance” yahuje ibigo by’imari n’amakoperative,kuri uyu wa 17 Gashyantare 2015 mu karere ka Nyabihu. Bamwe mu bibumbiye mu makoperative y’ubuhinzi n’ubworozi,ari nayo akunze kuboneka mu karere ka Nyabihu,usanga bavuga ko usanga bigorana ko amwe mu mabanki yakorana nabo akabaha inguzanyo z’ubuhinzi. Musana Paul,umwe mu bayobozi b’imwe mu makoperative akorera mu karere ka Nyabihu,avuga ko iyo amakoperative y’ubuhinzi akoranye neza n’ibigo by’imari kandi nabyo bikayorohereza mu mikoranire,bikayaha inguzanyo ku gihe usanga bagera ku iterambere rirambye. Aboneraho gushimira ibigo by’imari bigira uruhare rufatika mu gukorana n’amakoperative y’abahinzi harimo Banki ya Kigali avuga ko ashima cyane bitewe n’uruhare yagize…

Rwanda’s trade Deficit continues to widen

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  The country’s  trade deficit  continued to worsen  in  2014  widening by  7.5 percent, despite a  positive outlook  the economy  registered in the  same  period under review, the Central Bank   has  indicated. The bank  through  its monetary policy and financial stability  statement  for February  2015, showed  the deficit expanding   to USD 1,799.54 million by end of December    last year up from 1,674.38 million 2013 driven by   increased import receipts. Accordingly, formal imports value increased to USD 2,399.3 million representing   6.8% while  volumes   increased by  3.7%, mainly driven by   consumer goods (+4.9%), while  energy and lubricants (+3.4%),   capital goods increased  by 3.0%, while  intermediary goods recorded (+2.9%). The  Central bank says that the  rise in import…

« L’aide internationale est plus politique…, le marché des capitaux est indépendant » – Kagame

« L’aide internationale est plus politique…, le marché des capitaux est indépendant » - Kagame

Lors de la réunion qui s’est tenue à Kigali du 12 au 13/02/2015, ayant comme objectif d’analyser « l’évolution des marchés des capitaux en Afrique de l’Est », le Rwanda se veut comme pays qui mise plus sur le marché des capitaux que sur l’aide internationale. Différentes hautes autorités du Rwanda, des investisseurs ainsi que des experts nationaux et internationaux ont participé à cette réunion. Lors de l’ouverture officielle de cette réunion, et comme il s’agissait de déterminer si le marché des capitaux est le mieux approprié pour résoudre les problèmes de pauvreté par rapport à l’aide internationale, les leaders rwandais dont le Président Paul Kagame ont montré à ces participants  dignitaires internationaux en visite au Rwanda,…

Pan-African banks are improving competition – IMF

The IMF Director General meeting President Paul Kagame on her recent visit to Rwanda

With  their  presence in around  36 countries and Rwanda  inclusive , the pan African Banks  have triggered access to  higher skills and expertise, access to capital especially for continental  trade projects as well as  diversification of resources. For example, the emergence of eco bank   in Rwanda   increasing innovation and use of technologies in the country’s financial sector such as continental electronic payments systems, upgrade of the local payment systems something that triggers a cash lite economy. “These banks are driving innovation, enhancing financial inclusion, and in some cases have contributed to lower costs,” a report by IMF stated A renewed impetus for regional integration, coupled with the success of mobile payments in Kenya was propitious…

Cooperative bank needs Rwf 5bn to start

Francois Kanimba

The proposed cooperative bank   requires an initial deposit of Rwf 5 billion for its establishment, the Minister of Trade and Industry Francois Kanimba said. The Minister said that   the    bank, once established will provide a financial backbone to savings and credit cooperatives, which have been instrumental   in rural financial inclusion. Cooperatives are instrumental in providing opportunities for productive employment, as well as offering health care, education, potable water, improved sanitation, roads, and market access, while giving a stronger “voice” to rural groups. “Under the arrangement, Umurenge Saccos will raise 60 per cent of the capital, while the remaining 40 per cent will be provided by the strategic investor,” Kanimba said. “Therefore, the challenge is to…

Nyabihu: Abakorana na SACCOs bariyongereye

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Abagana za SACCOs mu karere ka Nyabihu bariyongereye, n’ubwizigame buriyongera  kandi bigenda bibafasha mu iterambere n’imibereho myiza yabo. Kuzamura imibereho y’abaturage kwa SACCO bivugwa binyuze mu buhamya bwa bamwe mu baturage kandi bikanagarukwaho na Hatangimbabazi Theodore ushinzwe amakoperative n’ishoramari mu karere ka Nyabihu. Kuri ubu,bamwe mu bagannye ibigo by’imari bakirinda gusesagura duke babona ahubwo bakatuzigama,bamaze kugera ku rwego rwiza rw’iterambere n’imibereho myiza. Nsabimana Jean de Dieu ni umugabo w’imyaka 28 y’amavuko utuye mu murenge wa Bigogwe mu karere ka Nyabihu. Yatangiye akoresha igare mu kazi k’ubunyonzi naryo ritari irye. Yaje gukorana na SACCOs ajyana make make ,agera ku mafaranga 400 y’u Rwanda yabonaga asaguka  kuyo yishyuraga nyir’igare ku munsi,hashize igihe aza kwigira inama y’uko yabona…

Govt banks on community processing centers to boost SMEs

Govt banks on community processing centers to boost SMEs

  In a bid to  increase  local production and  address challenges  the Small and Medium enterprises-SME cluster is  facing, the  government  is  has started  community  processing Centers-CPCs. The Minister of trade and Industry Francois Kanimba said that the processing centers will increase   SME contribution to the national economic development in line with government programs. “The ministry    initiated the CPC concept in 2012 as a mechanism to address the challenges SMEs are facing and boost local production capacity for recapturing local, regional and international market,” he said The   processing   center are seen by  government as  role  model   centers to help boost the creation of more  SME  in   processing cluster  to   boost  production  needed to   increase   exports…

Shareholders in banks struggling to make profits

Shareholders in banks struggling to make profits

Despite being an impressive leap and a show of how sound Rwanda’s financial sector is, banks are still facing low profitability, a turn-off for banks that may want to enter the market in the future. Banks’ return on average equity (ROAE), a measure of their profitability for the first nine months of last year stood at 10.9 percent, according to National Bank of Rwanda’s (BNR) last month monetary policy statement. This is lower compared to banks in neighboring East African Community countries, Kenya, Uganda and Tanzania which have their ROAE at above 25 percent. Lawson Naibo, chief operating officer of Bank of Kigali (BK) attributes the low profitability in the market to continued “pressure” on…