Microfinance banks would foster access to credit for SMEs

Microfinance banks would foster access to credit for SMEs

Financial Institutions like Microfinance Banks are seen as vital channel through which   Small and Medium enterprises-(SMEs) mainly in rural areas can access credit to expand their businesses. Due to their nature of operation, rural SMEs which  are  mostly  household  enterprises  depending  on   meager family  capital have been finding it difficult to   woe banks to extend credit to them with the latter seeing the country’s budding sector  as risky  to lend to. While on the other hand microfinance Institutions may not have enough line of credit to   lend to the entire sector which as well as enough resources to   ensure   loan recovery as well as supporting the borrower technically to avoid defaulting. “Their service delivery   is  …

Financial constraints cripple Umwalimu Saccos loan book growth

Financial constraints cripple Umwalimu Saccos loan book growth

Despite   registering a huge profit    last year mainly  driven  by   increased loan  book as well as  dropping  Non  performing loans-NPLs,  Umwalimu  Sacco  says  lack of financial  capacity  is   hampering the growth   in its loan  book . To extend to   its clients, the country’s teachers Savings and credit cooperatives relies on the returns from the loans disbursed as well as teachers’ savings which is not enough to   satisfy the increasing demand. “The financial capacity of the institution is still   low, specifically in covering or supporting the teachers’ loan demands,” said Joseph   Museruka, the Sacco’s Managing Director This according to Museruka   is also attributed to  low interest rate that  stands  at 11 per cent which   drive   more …

Non- performing loans affecting banking sector

Non- performing loans affecting banking sector

  The banking industry is considering a recapitalisation to shore up its profitability levels, which are rattled by high operating costs and non-performing loans. The industry is struggling to register profits despite increased spending on operations over the past couple of years in addition to attracting high levels of investment. Some lenders including Kenya Commercial Bank (KCB), Equity Bank and GTbank have been forced to make loan loss provisions to cater for the loans written off their balance sheets. “Most banks are considering or have already added more capital into their operations as profits are being weighed down by high non-performing loans and high operation costs,” said Maurice Toroitich, managing director of KCB Rwanda. On…

SACCOs urged to integrate ICT, boost efficiency

SACCO

  Despite the recent growth in the performance   sheet of the savings and Credit Cooperatives –SACCOs, there is a need to integrate technology to help increase efficiency in serving their clientele. The SACCOS are seen as vital tools to drive financial inclusion especially banking the unbanked in rural areas, something that has promoted government to put   in much efforts   to boost their capacity. Accordingto Fin scopeSurvey 2013, “Use of technology    in the SACCOS is important and this will solve some of the challenges like Non Performing Loans,” said Damien Mugabo, Director General, Rwanda Cooperative Agency-RCA Mugabo says that with the recent linking of the Sacco’s to the credit Reference bureau has played a key role…

KCB to offer more mortgages

KCB to offer more mortgages

Kenya’s Commercial Bank, the largest lender by assets, plans to offer mortgage-backed securities on the local bourse to help developers raise funds to build new housing units, its chief executive said. There are less than 30,000 mortgages in Rwanda against a potential of 1 million, according to the government, and a severe shortage of houses has driven up prices. KCB, which also operates in Tanzania, Uganda, South Sudan and Burundi, has previously said it has a target of writing 1 million new mortgages, in a country where annual demand for housing outstrips supply by about 100,000 units. The bank, one of the biggest mortgage lenders in Kenya along with Housing Finance, said it was working with…

Microfinance in Rwanda targets rural financial inclusion

m_Microfinance in Rwanda targets rural financial inclusion

In a bid to boost the country’s efforts to   bank the unbanked, Letshego Rwanda Limited has launched products likely to increase rural financial inclusion. The products, which will see people easily accessing financial services in rural and peri- urban communities countrywide, include current, fixed and savings deposit taking. “Deposit taking in Rwanda will diversify Letshego’s core operating model and provide a key step towards developing of our financial inclusion agenda, with an emphasis on the rural areas,” said Bernard Kivava, Chief Executive Officer. The products, according to Kivava   will help Letshego Rwanda Limited in diversifying its business in markets where it can align with and contribute to the Government’s agenda of financial inclusion with the…

SACCOs can boost financial Inclusion

map_rw

There is optimism  that   as  savings and credit cooperatives-SACCOs continue to register   positive  outlook  in regard to savings and  access to credit  by rural folks, creation of  a  SACCO  cooperative Bank would  bolster the  inclusion efforts. The  savings and credit cooperatives registered  a positive outlook in  mobilizing  savings that  grew to  Rwf 36.7 billion  by December  last year up from  Rwf 6.3 billion in the same period  under review in  2010. With this  growth,  experts  believe that  establishment of  the  cooperative   bank would  increase  liquidity to Saccos  thus boost    inclusion as well  as access to credit  mainly in  rural  areas. “In the future the establishment of a SACCO Cooperative Bank will play a critical role…

Kwizigamira si ugusagura ahubwo ni ukwizirika umukanda – Sembagare

Kwizigamira si ugusagura ahubwo ni ukwizirika umukanda – Sembagare

Umuyobozi w’akarere ka Burera, Sembagare Samuel, asaba abaturage bo muri ako karere cyane cyane urubyiruko kugira umuco wo kwizigamira kuko bizabagoboka mu gihe bazaba bageze mu bihe bikomeye cyangwa se bageze mu za bukuru. Sembagare asaba ibi abanyaburera mu gihe hari bamwe batazi kwizigamira icyo ari cyo kuburyo usanga hari abarya amafaranga yose bakoreye ntihagire na make babitsa mu bigo by’imari. Umuyobozi w’akarere ka Burera avuga ko kwizigamira bigomba kuba umuco ku banyaburera bose ngo kuko kuba hari ibihugu byateye imbere ari uko bifite abaturage basobanukiwe n’icyo kwizigamira ari cyo. Agira ati “Kwizigamira no kwiteganyiriza si ukuba uhaze. Ntabwo uzigama aba asaguye. Iyo urebye mu bihugu byateye imbere umuco wo kuzigama n’abana barawubatoza, no mu…

Nyamasheke: Ibigo by’imari byasabwe gufatanyiriza hamwe n’izindi nzego mu guha serivisi nziza ababagana

Nyamasheke: Ibigo by’imari byasabwe gufatanyiriza hamwe n’izindi nzego mu guha serivisi nziza ababagana

Mu nama ngarukagihembwe yahuje abayobozi b’akarere, ab’imirenge, abahagriye ibigo by’imari binini n’ibiciririste ndetse n’inzego z’umutekano zikorera mu karere ka Nyamasheke, tariki 01 Ukwakira 2014, biyemeje gutahiriza umugozi umwe mu gukurikira uburyo ababagana barushaho kwishimira serivise babaha. Umuyobozi w’akarere wungirije ushinzwe iterembere ry’ubukungu , Bahizi Charles, yavuze ko abahagariye ibigo by’imari basabwe gukomeza gucunga neza ibyo bigo bayobora bakihatira gutanga serivise nziza ku babagana babakira neza kandi bakabagezaho amakuru bakeneye n’icyo ibyo bakenera muri ibyo bigo bizabamarira. Bahizi yasabye abafite ibigo by’imari kugenzura neza niba ibyo batangira amafaranga bikoreshwa ibyo yateganyirijwe, bakamenya uburyo abakiriya babo bishyura amafaranga ku gihe ndetse n’ababa batishyura neza hakabaho uburyo bw’ibiganiro bituma hamenyekana impamvu bidashoboka. Bahize yasabye abayobozi b’ibigo by’imari kumenyekanisha…

Central Bank keeps repo rate at 6.5% to boost borrowing

Central Bank keeps repo rate at 6.5% to boost borrowing

The national bank of Rwanda (BNR) has announced its key repo rate will hold steady at 6.5 percent to maintain strong economic growth and robust lending. In June, the central bank cut the rate by 50 basis points from 7.0 as it seeks to enable the country’s economy to continue on the 8 percent average GDP growth over the past ten years. “There is no need of further reducing it because the level is sufficient enough to give results we wanted. We don’t have any pressures on the inflation,” central bank Governor John BNR Governor John Rwangombwa said on Wednesday, a day after the figure was released. He would not comment on how long it…