Rwanda raises Frw15b with Treasury bond

m_National Bank of Rwanda (BNR)

The government of Rwanda successfully issued a three year fixed coupon treasury bond worth Frw15 billion. Rwanda sold a three-year Treasury bond worth 15 billion francs ($20.25 million) at a rate of 11.80 percent, the central bank said late on Wednesday. Proceeds of the bond, which attained a subscription rate of 176.39 percent, will be used to fund various infrastructure projects. The East African nation also uses the issuance as a way of developing its capital markers. The bond will be listed for trading on the stock exchange, the central bank said. It added that next issue will be in February next year when it will offer a 5 year Treasury bond. ($1 = 740.7700…

CBA applies for a license to operate in Rwanda

Commercial Bank of Africa head office.

Kenya’s largest privately owned Commercial Bank of Africa has applied to national Bank of Rwanda for a license to operate in Rwanda, making Kenya largest investor in the country’s financial budding financial sector. The Bank said to be the largest retail lender in Kenya plans to kick off its operations in the first half of 2016, once the licensing process is done, which will make it the first   bank from Kenya to enter the market. “We are in the final stages of applying for a banking license in Rwanda with expectations to be operational in the early part of next year,” Isaac Awuondo, the group managing director told the East African newspaper in Kenya. The…

Bank of Kigali records Rwf 16bn net profit

Bank of Kigali headquarters in Kigali

Bank of Kigali, the country’s largest bank by asset base announced a profit of Rwf 16 billion in the nine months of 2015 from Rwf 14 recorded by the bank in the same period in 2014, keeping the bank profitable throughout the year. In the nine months of 2015, Bank of Kigali recorded a net interest income of Rwf 33.9 billion up from rwf 29.0 billion in same period 2014, with Net operating income growing to Rwf 41, 7 billion compared to Rwf 38, 7 billion in the nine months in 2014. In the same period the bank’s interest income grew Rwf income43.9 billion by September 2015 from 38.4 billion while Interest expense also grew…

Nyabihu: Banks urged to do more to teach ‘financial literacy’

Angela Mukaminani, vice-mayor for economic affairs in Nyabihu district

Angela Mukaminani, vice-mayor for economic affairs of Nyabihu district asked financial institutions to do more to teach ‘financial literacy’. This comes after some customers use the loan for the purpose it was not meant for, hence failure to pay back. “Some residents think that a loan is like a gift but it’s a burden,” said the vice-mayor. “Before giving out the loan, first train the customers on how to use it.Dont be excited about giving them money and forget to warn them,” added. Some bank during the meeting with the vice mayor highlighted that using the loan for a different reason than it was intended for leads to loss.  

Rwandan Kids Raise Rwf400m In Bank Savings

Rwandan Kids Raise Rwf400m In Bank Savings

Sometime in 2013 on a busy morning at Saint André primary school in Muhanga district, Uwase Noella Chartine 12, was attentive in her grade four maths’ class. Suddenly three men entered her class accompanied by the head teacher. The head teacher asked Chartine’s teacher to halt the lesson for an urgent message to be delivered to his pupils. “We are here to tell you how you can own your money and buy things you like,” said one of the men. Pupils got more interested. The man continued to tell them that he was leading a team of bankers who wanted to teach them how to save. The maths class turned into finance lesson. Pupils were…

Hopes For Rwanda Cooperative Bank Frustrated

Hopes For Rwanda Cooperative Bank Frustrated

Small and Medium Enterprises have to wait longer to access lower cost funds as plans to operate the much awaited Rwanda’s first cooperatives bank continue to delay. The bank, according to the Rwanda cooperative Agency-RCA, perhaps, might begin operations early in 2016, but that is still ‘hopes’, and not an ultimate plan. Members of Rwandan cooperatives had in May told KT Press that they didn’t expect the project to “come through” almost a year after President Paul Kagame had promised to have this bank operational. About 4000 cooperatives with 2.5 million members across the country are coordinated by the Rwanda cooperative Agency-RCA. They urgently need a bank from which they can borrow at lower interest…

RSwitch awarded international security standard certification

Daniel Barrientos, RSwitch Chief Executive Officer

Rswitch, a Millicom International Payments Solution Company serving as the national e-payment switch of Rwanda has been awarded with the international security standard certification, second year for its platform that continues to meet international standards. The latest version of Payment Card Industry Data Security Standards (PCI DSS) compliance certification re- affirms the company’s commitment to offer secure card processing solutions in compliance with global standards. “With this recertification, we trust that our customer confidence will be elevated with the assurance of a higher level of protection of their data and in turn safeguard our brand and our reputation,” said Daniel Barrientos, RSwitch Chief Executive Officer in a statement on Monday. He adds, “We at RSwitch believe in…

MFIs take savings culture campaign to children

A child saving at Sacco: Children have been encouraged to save at an early age.

In bid to bolster savings culture, the Association of Microfinance Institutions in Rwanda-AMIR is targeting students as one way of instilling in them the culture of saving at an early age. Peter Rwema, the Executive Secretary of the Association that brings together Microfinance institutions says that campaign will bring more confidence among young people to be able to save, since this will help them in the future. “Schools are among our targets because we want to inculcate saving culture into young people,” he said in an interview with this website on Tuesday. He adds, “When we encourage young people to have at an early we are creating sustainable savings that could help financial institutions to…

Rwandan CEOs In Back Door Lobbying Ahead Of Nairobi Summit

Rwandan CEOs In Back Door Lobbying Ahead Of Nairobi Summit

CEOs in Rwanda are ganging up against unfavourable cross-border trade policies within East African region. A meeting in Kigali between members of the business community and their lobby organ, the Private Sector Federation, listed policies that hinder penetration into the EAC. Deliberations from the meeting will be handed to President Paul Kagame who is expected to attend the 11th Northern Corridor Integration Projects summit this weekend, Saturday 17. The Northern Corridor Integration projects brings together Rwanda, Uganda, Kenya and recently admitted South Sudan. The business community believes President Kagame will be able to make a case in their favour at the summit. “For instance if Bank of Kigali wants to establish shop in Kenya or…

Farmers to wait longer for sector tailored insurance products

Agriculture is still considered a risky sector by the financial industry, a situation that has affected its growth.

The central Bank says that the insurance sector posted growth in its profit by 14.7 percent in the first half of the year compared to 14.6 percent in June 2014. Despite this, the sector is missing out in the agriculture sector which is regarded as most risky thus   posing a challenge to extend insurance products to the sector that contributes 30 percent to GDP. The biggest problem with the famers is that the risk is really too high,” said John Rwangombwa, Governor of the central bank while speaking to journalists last week. He adds, “It is not easy to gauge the level of risk with farming dependable on natural factors.” With changing climate and other…