Rwanda’s economy maintains 7.4% growth, despite a staggering trade deficit

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Rwanda’s economy has maintained a steady growth of 7.4% thanks to a booming service industry which rose by 22.4% from 12.6% in the first quarter. Central Bank Governor, John Rwangombwa said private sector financing grew by 47.8% from 12.4% of 2013 in the same period. Central bank Chief Economist, Dr. Thomas Kagabo, attributes said liquidity into commercial banks was a major tool that allowed them to lend more and remain stable. Meanwhile all construction projects that had been put on complete hold at the end of 2013, have contributed 8%. Manufacturing made a turnover of 13.1%. Rwanda is experiencing growth while recovering from a meltdown that dragged the economy to 4.7% in 2013 due to…

Fitch Ratings Upgrades Rwanda to ‘B+’; Outlook Stable

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Fitch Ratings has upgraded Rwanda’s Long-term foreign and local currency Issuer Default Ratings (IDR) to ‘B+’ from’B’. The Outlooks are Stable. The issue ratings on Rwanda’s senior unsecured foreign and local currency bonds have also been upgraded to ‘B+’ from ‘B’. The Country Ceiling has been upgraded to ‘B+’ from ‘B’ and the Short-term foreigncurrency IDR affirmed at ‘B’. KEY RATING DRIVERS The upgrade of Rwanda’s IDRs reflects the following key rating drivers and their relative weights: High Economic growth prospects are strong. GDP growth averaged 6.9%in 2009-2014 in a stable macro environment, supported by structural reforms. In 2014, Fitch expects real GDP growth to be 6.5% and to increase to 7%-8% in the medium…

Rwandan banks growing exponentially, but not taped into abundant opportunities

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KIGALI-RWANDA-Rwanda’s banking sector, regarded as a virgin industry, recorded modest profits in the first quarter of 2014, thanks to a cash-hungry economy recovering from the 2013 slump. The sector recorded Rwf700m in total profits during the first three months to hit Rwf8.8 billion (approx. $10m) measured against last year’s Rwf8.1b, Rwanda’s central bank announced two weeks ago. However, due to a mild contraction caused by aid suspension, only Rwf1.06 trillion (approx. 1.5b) deposits were recorded from Rwf866.4billion (approx. 1.2b) of same period 2013. The loan portfolio helped the industry bounce back from the slump, increasing to Rwf269.8 billion (approx. $384m) in the first five months from Rwf185.1 billion (approx.264m) of 2013 due to a slight…

Rulindo: abakora umwuga w’ubucuruzi barasabwa kwagura ubucuruzi bwabo bagana ibigo by’imari n’amabanki

m_abakora umwuga w’ubucuruzi barasabwa kwagura ubucuruzi bwabo bagana ibigo by’imari n’amabanki

Bamwe mu bacuruzi mu karere ka Rulindo,barasabwa kwagura ubucuruzi bwabo bukaba ubucuruzi bw’umwuga, kandi butanga inyungu zigaragara,aho guhora bakora ubucuruzi butabavana aho bari mu bukungu. Nk’uko bikunze kugarukwaho n’umuyobozi  wungirije w’aka karere ka Rulindo,Murindwa Prosper,ngo ikiza ni uguhitamo ibyo umuntu acuruza ,kandi abona ko bizamuzanira inyungu igaragara, ku buryo umucuruzi abasha kwiteza imbere,agateza n’igihugu imbere muri rusange. Ibi yabibasabye mu nama yagiranye na bamwe mu bacuruzi bo muri aka karere ,mu murenge wa Base,mu mpera z’icyumweru gishize,aho bari bahuriye hamwe ngo barebere hamwe uburyo bakwagura ubucuruzi bwabo,bakorera hamwe,biyubakira inzu y’ubucuruzi,mu rwego rwo kurushaho gukora neza no kwiteza imbere. Uyu muyobozi kandi yagiriye inama aba bacuruzi yo  kwagura ubucuruzi bwabo ,barushaho kugana ibigo by’imari n’amabanki bikorera…

Nyabihu: Financial institutions in savings culture promotion

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Residents in Nyabihu district have embraced saving with Umurenge Savings and Credit Cooperative (Sacco), a government initiated community microfinance programme as the fast way to social economic development. Keeping money in SACCO gives one chance to acquire a loan after some time and venture into income generating activities. “Saving with Sacco offers security and adds profit on the money deposited. Money kept at home can be spent unnecessarily,” said Jean De Dieu Harerimana, a resident.  “I keep my money on a savings account. This increases my savings and gives me chance to access a business loan any time,” said Theoneste Mudasunikwa, a cattle farmer “Saving is the key to social economic development. Every resident should…

BRD appoints new board chairman

L-R Francis Mugisha, the new Board Chairman hands over a

The Development Bank of Rwanda (BRD) has approved the appointment of Francis Mugisha as the new Board Chairman to consolidate and oversee the next phase of the bank’s mandate of financing private sector investments aimed at poverty reduction. Mugisha replaced Bernard Ndungu, the previous board chairman, who was relieved of his duties upon request from the bank’s shareholders. Mugisha is a chartered Management Accountant by profession and current president of the Institute of Certified Public Accountants of Rwanda (iCPAR), who has also wide knowledge and experience of previously serving in various other capacities during past tenures as a BRD board member. In a related development, Dr. Daniel Ufitikirezi, the current Director General at RSSB was…

Gatsibo: Rugarama Residents embrace saving culture

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Residents of Rugarama sector in Gatsibo district have embraced the saving culture, responding to a call by the local authorities; banks and small financial institutions operating in the area. This comes following the increase in the number of SACCOs and banks that operate in Gatsibo district. Commenting on the importance of saving, Jeanne Nyiramatabaro of Rugarama sector reveals that saving has improved the social and economic standards of some residents. Another resident, Pacifique Mukanoheri highlights that one doesn’t need to have lots of money to embrace saving culture. “One can save even when they are low income earners,” she said. Talking to www.twizigamire.com, the executive secretary of Rugarama sector Consollée Urujeni stressed the possibility of…

I&M Bank records high profit growth

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I&M Bank has experienced a growth in loans and advances of 25 per cent to Rwf 65.6 billion of which more than 60 per cent was availed to small medium enterprises (SMEs) and retail clients. Customer deposits grew from Rwf85.8 billion to Rwf94.1 billion sighting almost a 10 percent increase as the bank registered more than 2000 new accounts. Total deposits grew from Rwf86.6 billion in 2012 to Rwf99 billion in 2013. Overall total shareholder equity also improved substantially from Rwf15.5 billion in 2012 to Rwf18.7 billion in 2013. Apparently the bank (formerly BCR) was rebranded in 2013 to I&M Bank. The bank earned Rwf4.5b profits after tax in 2013 as compared to Rwf4.2b in…

Gisagara: Youth cooperatives urged to hold onto saving culture

Youth cooperatives urged to hold onto saving culture

Cooperatives for youth in Gisagara district have been called on to work putting in mind savings in order to attain better living condition and a promising future. The call was made by RDB during a three week youth training that started on February 10th 2014 in Gisagara district. The training was organized by Gisagara district in partnership with Rwanda Development Board (RDB). The aim of the training is to prepare youth into forming and managing cooperatives and to become future entrepreneurs. Jean Marie Vianney Mahoro, a member of Icyerekezo cooperative (for mass production of tree seedlings) says that they have learnt a lot from the training like recording income and expenditure, making project proposals and…

Gisagara: VUP workers vow to take on saving

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Direct support beneficiaries and residents employed in VUP program in Gisagara district have been called on to adopt saving culture that would help fighting poverty. In this programme, poor and elderly residents are given direct support, others given loans to set up income generating projects while others are employed in VUP activities. François Hakizimana, coordinator of VUP in Kigembe sector in Gisagara district said last week that saving is not much embraced but all efforts are being put in sensitizing residents to save. Apart from beneficiaries of direct support, residents employed in VUP program find it hard to embrace saving culture because they think saving is for people that earn a lot of money. Gaspard…