Kirehe: Saving associations commended for sustainable development

Kirehe: Saving associations commended for sustainable development

Members of Banguka, an association for lending and saving in Nyabikokora cell, Kirehe sector of Kirehe district commended the association for enabling them connect electricity to their homes in addition to acquiring property. Residents revealed this while the district prepares to launch ‘special savings week’ scheduled to take place between on October 25-31. A special savings week is under the theme “Save today and secure your future” aims at reminding and educating citizens about the importance of saving. Association members said they have purchased land, livestock, pay school fees for children and take good care of their families. Members revealed that forming credit and saving associations was initiated by Care International, a humanitarian organization fighting…

SACCOs can boost financial Inclusion

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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…

Kirehe to launch special savings week

Kirehe to launch special savings week

To entrench a savings culture among Rwandans, a special savings week under the theme “Save today and secure your future” is to launched in Kirehe district dedicated towards reminding and educating citizens on the importance of saving. According to Jean de Dieu Tihabyona, the vice mayor for finance and economic development, the special savings week will involve several initiatives including awareness campaigns talk shows interviews with stakeholders and the public among others. The campaign is scheduled to take place between on October 25-31. He added that financial institutions should play an important role by educating target groups about the services and the products they offer. “You need to prove your competence and lure them to…

MFIs eyes children savings to boost savings culture

MFIs eyes children savings to boost savings culture

There is optimism that   promoting children savings would spur a culture of savings thus  translating into financial inclusion, a  milestone the country is  looking at  to  leapfrog its economy  in  middle income  status. This means that encouraging children to join formal banking systems will help the children to grow with the culture of savings, something that gives a stronger financial backbone the economy. “When  we are teaching our  children  discipline , we should always include the financial  discipline  which will help  them grow into  responsible  citizens,” said Rita Ngarambe, Executive Secretary  of Association of Microfinance institutions  in Rwanda-AMIR Encouraging savings at a tender age on the other hand helps the financial institutions to have enough…

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…

Nyamasheke: BDF making dreams come true

Nyamasheke: BDF making dreams come true

Four months ago, the Business Development Fund (BDF) was launched Nyamasheke district. The BDF is now giving opportunities of Nyamasheke residents with a long time dream of owning a small or medium sized business. In an exclusive interview with Speaking with Valens Tugirimana, head of BDF in Nyamasheke district said, “The BDF will allow every residents, who has a good business plan but no collateral, to access loans. We believe that this initiative will add to the number of SME’s in the country, lowering the unemployment rate and increasing wealth” Tugirimana urged residents to utilise the opportunities Business development Fund brings into the district. BDF-Nyamasheke is in its campaign to sensitise residents on making business…

SACCOs asked to reduce non-performing loans

Heads of cooperatives in Eastern province during the meeting RCA

  Managers of Savings and credit co-operatives (SACCOs) have been advised to strengthen lending mechanisms to reduce on the rate of non-performing loans. Director General of Rwanda Cooperatives Agency (RCA)The call was made by Damien Mugabo during a meeting with SACCOs in Eastern Region. Mugabo expects that with this in mind, SACCOs could lower their non-performing loans (NPLs) to about 5%. “SACCOs authorities have to change the way the way the offer loans. They have to make sure that the people who secure loans have the capacity and also evaluate their project and if things go well, then we can hopefully bring our NPL levels down” The warning comes after SACCO NPLs in Eastern province…

Access bank registers Rwf369 million net profit decline

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Access  bank  has  registered a  net profit  decrease  of Rwf369 to Rwf360 million  in the first half of the year  down from  Rwf729 million  in the same  period under review   in 2013, indicating almost  50 percent decrease. Whilst, the bank’s total assets   climbed to Rwf50.6 billion up from Rwf48.9 billion by end of December  last year. The bank saw its loan book portfolio growing to Rwf14.5 billion in 2014 up from Rwf13.2 billion by the end of last year which was pushed by mortgages that climbed to Rwf5.1 billion by end of June up from Rwf1.9 billion in 2013. On the other hand, Treasury loans saw an increase of Rwf1.6 billion by end of June…

Tax bases grows 16% after govt introduces tough rules

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Barely six months after the introduction of Electronic Billing Machines, Rwanda revenue authority (RRA) says the results are impressive. Speaking at this year’s tax payers’ day celebration on Saturday, the commissioner general of RRA, Richard Tushabe, said the machines are helping the government increase its tax base. The commissioner also said the tools have helped cut down time spent screening books of accounts. “Auditors used to spend hours investigating and going over massive documentation, but with the EBM, audits are easily conducted,” he said. Tushabe also said RRA is now able to catch tax evaders with less effort. The same technology is used in countries such as Sweden, Germany, Greece, Ethiopia and Kenya to combat…

BK in 35% half year profits

Bank of Kigali

Bank of Kigali (BK) has announced its annual half profits posting a more than 30 percent profit as compared to last year’s results. Bank of Kigali also the first bank to be listed on the stock exchange is proving to be a hit for its investors with its increased rise in net income.   The bank’s net income from banking activities increased to Rwf30.6 billion from Rwf25.2 billion during the period. Its loan book also expanded, with equipment loans taking the largest share, increasing from Rwf54.6 billion last year to Rwf81.4 billion by end of June. Mortgage loans dropped to Rwf44.1 billion, from Rwf49.1 billion last year, indicating a Rwf5 billion decline. Treasury and consumer loans…