Experts urge banks to ease requirements to finance more SMEs

Rwanda bank

With over 100,000 Small and Medium enterprises-SMEs across the country with bankable businesses, banks, experts advise  should  ease their requirements to  increase credit going to   the  country’s fastest growing sub sector. Despite the recent efforts to bolster credit flow SMEsbanks stilldemand requirements that most SMEs due to their nature of operation (startup stages) cannot manage. “While it is a fact that the banks must conduct due diligence in their lending and be risk averse, there needs to be fresh thinking around the lending policy,” said Sam Kebongo, Project Management and Entrepreneurship Development Consultant The rethinking according to experts would go along   commercial banks understanding the structure of SMEwhile   taking a step to educate their clients  …

Districts urged to seek financial alternatives

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There is a need for Districts to look at alternative financing In order for Districts to deliver for the second Economic Development and Poverty Reduction Strategy (EDPRS2) which focus at   moving the economy to middle income. Amb. Claver Gatete, Minister of finance and economic planning says that districts are undertaking ambitious   development   projects which need more financing than central Government   budgetary   disbursements or few revenue sources. “You (districts) need to devise alternative revenue sources if you are to deliver,” said Gatete Most development projects districts such as   construction of roads, rural electrification,and agriculture mechanization are bigger and need   more sources of funding for their execution. Apart from budgetary disbursements, districts rely on collections from property,…

Kayonza: Sacco, a bridge to sustainable development

bridge to sustainable development

  Residents of Nyamirama sector in Kayonza district commend Sacco for fostering their social economic development, saying their lives changed after they started working with Sacco. This is because at first some residents considered working with financial institutions to be a privilege for the rich and the literate, which discouraged them from saving the little they get. However, residents negative attitude changed after the government started setting up financial institutions in rural areas of Rwanda to enable all residents access financial services. One Samuel Gatare from Nyamirama sector in Kayonza district says that he was poor before working with Sacco, revealing that he has achieved a lot by accessing Rwf200,000 loan which he invested agricultural…

Government to issue a ten year Treasury bond 

Government to issue a ten year Treasury bond

The government is set to issue a ten year Treasury bond worth Rwf10 billion, National of Bank of Rwanda has announced in a statement. The statement signed  by the  Bank’s Governor, John  Rwangombwa, the  bond  is  meant  to finance  infrastructure  projects  and   development of capital   markets. The   national Bank of Rwanda behalf of Government of Rwanda invites bids for 10 year fixed coupon treasury   bond,” the Governor said in a statement. The bond FXD 2/2015/10 years to be issued on 27 May, 2015 will be hosted on Rwanda Stock Exchange. While, Central  Bank  says  the  secondary  trading  in multiples  of Rwf100,000 will  commence on Tuesday  02/06/2015 on  Rwanda Stock exchange. The  statement  also  notes that …

Foreign aid dependence could affect economic growth

Foreign aid dependence could affect economic growth

Emerging uncertainties in the global economy are gradually taking a toll on Rwanda, with the latest growth outlook being pegged at 6.5 percent for 2015 and 2016, down from 7 percent last year. This is a result of its heavy dependence on aid, which fluctuates in times of uncertainties, and tax receipts, which stood at 9.8 billion francs ($14.2 million) in 2014. This is short of the 416.1 ($604 million) billion forecast. “The donor aid is unpredictable and it’s very small. It’s shrinking every day,” said Claver Gatete,the minister for finance and economic planning. Foreign aid accounts for almost 20 percent of the Rwandan budget with, foreign loans also constituting 13 percent, meaning 33 percent…

Rusizi: Microfinance institutions urged to improve customer care

Rusizi: Microfinance institutions urged to improve customer care

Leoncie Kankindi, the vice mayor for finance and economic development in Rusizi district advised them to listen to and value consumer feedback to enhance service delivery and satisfy customers’ needs. Kankindi was speaking during a training working of over 30 bank managersfrom Rusiziand Nyamasheke yesterday. The workshop was organised by the Association of Microfinance Institutions in Rwanda “Customers should be treated fairly and respectfully if you are to operate profitably and attract more clients,”Kankindi told the managers. He noted that micro-finance institutions needed to improve in some few areas to provide better services and attract new clients. Jean Marie Vianney Nzagahimana, the coordinator of Micro finance institutions in Rwanda (AMIR)urged -financial institutions to always ensure…

BDF to open 13 offices more offices countrywide

BDF to open 13 offices more offices countrywide

The Business Development Fund (BDF) is planning to open all its Business Development Centers (BDCs) before the end of this month (April), its CEO Innocent Bulindi said. 17 BDCs are already operational, while the refurbishment of 13 others is in the final stages. “BDCs play a significant role in offering a lot of business advice to small business operators and working with the local authorities towards the promotion of business development and entrepreneurship,” Bulindi said. The BDCs will also act as branches of BDF, which has so far been working with business development advisers and entrepreneurship development advisers in the districts, mainly to help entrepreneurs to acquire loans. Bulindi explained that small business operators who…

Microfinance to look at harnessing professionalism

Microfinance to look at harnessing professionalism

As the  microfinance day closes  in,  professionalism  is  the  main focus  in a bid to  bolster  the sector  needed to boost  the  financial  access mainly by rural folks. Peter  Rwema, acting   executive secretary   of  Association of Microfinance Institutions in Rwanda-AMIR  believes says that   day will help  in   highlighting the performance  of the sector in terms of professionalism  as well  as  best  practices to  ease  service delivery. “This is the time we  access  ourselves  on  how  far we have gone  in promoting  inclusive  c micro finance based on  best practices,”  he said The day Running  under the theme; Promoting inclusive micro- FINANCE with professionalism in Rwanda” is slated for   7th May   will  up  the sector’s  professionalism…

Nyamasheke: Extend banking to rural areas, banks told

Nyamasheke: Extend banking to rural areas, banks told

Charles Bahizi, vice mayor for economic affairs in Nyamasheke district has urged financial institutions to extend their services to all Ghanaians, especially those in the rural areas. This was revealed on April 10, during the access to finance forum meeting to discuss on reasons behind residents low turn up to work with financial institutions. That, he said, would be one of the surest ways to promote growth and reduce poverty in the country. It’s in this regard that it was decided during the meeting that an open day be organized that financial services are showcase their services to residents. Vice-mayor Bahizi reminded financial institutions that good customer care is what makes a customer king and…

Experts root for competitiveness in microfinance Institutions

Experts root for competitiveness in microfinance Institutions

Experts’ believe thatincreased competiveness within the microfinanceInstitutions-MFIs will improve the   sector’s abilityto bank the rural folks, thus increase   financial inclusion. Rita Ngarambe, Executive Director, AMIR consult Ltd says that   helping MFIs  sector to boost its competitiveness and provide customer orientedproductsthat will result into a strong   and vibrant sector that is able to finance rural   growth. “Competition should pave way for better services and increased access to financial    services by people mainly those in rural areas,” she noted Ngarambe believes that    when    microfinance institutions look at   embracing competition and   become innovative to bring out   customer centered services, access to finance by the unbanked population   will be easier. The MFIs   that  are in  microfinance sector   also composed …