Rwanda currency to weaken on dollar demand

Central bank Governor: John Rwangombwa

The national bank of Rwanda (BNR) expects the local currency to weaken by five percent this year but said there was little cause for concern, and warned that the bank would crack down on speculative trade by forex bureaus. John Rwangombwa, the governor central bank noted that the franc, which has lost about 4 percent to the dollar since January, has lost ground due to the global dollar strength and a high import bill. The franc has fared better than regional currencies – the Ugandan shilling has lost about 23 percent against the dollar this year, while Kenyan shilling has weakened about 12 percent. “We expect the depreciation to be around 5 percent. There is…

Kigali City contributes Rwf 25 million to Agaciro Development Fund

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In an effort to contribute towards Agaciro Development Fund, the city of Kigali employees extended Rwf 25 million through theMinistry ofFinance and Economic Planning (Minecofin). Speaking at the handover this week, the mayor of Kigali city,FideleNdayisaba said that employees   have beenputting aside part of their salary in order tocontribute to the development fund, a noble move to dignify the country. “We are committed to keep on contributing to this sovereign wealth fund every year as part of dignifying our nation and protecting the future generation,” Mayor Ndayisaba said while handing over the cheque. The fund is the country’s first solidarity fund that was started in 2011 by Rwandans as one way of improving the level…

BPR shareholders to lose stake

BPR shareholders to lose stake

Thousands of Shareholders in Banque Populaire du Rwanda (BPR) are to lose their shares in the Bank if they don’t register by this month’s deadline of July 18. Ephraim Turahirwa, the BPR chief executive officer said there are 590,292 shareholders as per the lender’s articles of association, “most of whom have ‘unknowingly’ owned shares in the bank”. The bank started as co-operatives in 1975, and transformed to a commercial bank in 2008. “Some of the shareholders died during the 1994 Genocide against the Tutsi, others due to natural causes. Therefore, there is a large number of people out there with shares in BPR, but are not aware of this fact,” Turahirwa stated. He said many…

Financial sector resilient-Rwangombwa

Financial sector resilient-Rwangombwa

The country’s financial sector has gone through a transformation process towards being a more resilient and stable which creates many opportunities for global investors, says John Rwangombwa, the governor of the National Bank Rwanda (BNR). The Central Bank Chief who was speaking at a news conference shortly after BNR quarterly Financial Stability Committee (FSC) and Monetary Policy Committee (MPC) meetings noted that Rwanda’s financial industry remains sound and stable and even shown signs of growth in what have continued to be troubled economic times. “There is a need to continue strengthening the supervisory functions to support the development of financial institutions and ensure diversification of financial products,” he said. Rwangombwa stated that, MPC decided to…

Rwanda’s trade deficit narrows by 6 percent

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The country’s  trade deficit   narrowed  by  6.0 percent  in the first five months of  2015  compared to the same period  2014,an  impressive   outlook   that  kept  the economy  resilient. The contractionfrom  U$ 722.5 6 million in the  first five months  of 2014 to  U$ 679.22 million in the same period  this year, according to central bank is as a result of   a decline in formal imports that fell  by 5.1  percent   in  value  in  the  first  five  months  of 2015. With   this decline, formal exports were   able to cover 25.2 percent of formal imports in the first quarter of 2015 compared to   24.5 percent coverage in the same period 2014, and this is despite a slight…

Rwanda inflation declines

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Rwanda’s gross domestic product (GDP) grew 7.6 percent in first quarter 2015 from a year earlier, helped by expansion in the agriculture, services and industrial sectors, the statistics office has said. In a statement, the National Institute of Statistics (NISR) said, the agriculture sector grew by 4 percent for the first quarter of this year, while the industry sector grew 7 percent and the services sector grew by 8 percent. According to statistics released last week exports increased by 10.22 percent when comparing to the same quarter of 2014 while imports decreased by 1.75 percent over the same period as of last year. The total value of exports is 101.90 million U.S. dollars, imports is…

Eco bank group records U$ 5.82 million in profits

Eco bank group records U$ 5.82 million in profits

The Eco Bank group has recorded a profit worth U$ 5.82 million for the year 2014, an outlook that   shows a resurgent bank that is able to bolster access to finance across borders on the continent. By the end of December 2014, the pan African bank group that also operates in Rwanda registered US$24.2 billion in total assets and US$2.7 billion in total equity. Accordingly, of the total profit U$ 0.87 million was transferred to special reserves while U$ 4.85 million to retained earnings. “Our accounts for FY 2014 have shown a resurgent Ecobank, which enjoys the confidence of all its stakeholders. We can expect similar positive performance for 2015,” said Emmanuel Ikazoboh, Ecobank Group…

Master card enters Rwandan market

Master card enters Rwandan market

Cogebanque has become the first bank in the country to issue the internationally acclaimed master card in a move seen as part of the Bank’s efforts to expand its clientele base and products variety. Four new master cards were set to be issued by the bank as of yesterday and thus will enable tourists and foreign investors to go cashless a move promoted by the economy. Speaking at the launch of the cards at the company headquarters, Flory Rukokora, the head of electronic banking at Cogebanque noted that the company aims to give consumers variety regarding their choices. “With the launch of these four cards our target aims to give consumers in the country more…

Nyamagabe: Banks should support small scale enterprises

Banks should support small scale enterprises

John Kagarama the coordinator of BDF urged local banks operating in Nyamagabe district banks to extend greater assistance to small and medium scale entrepreneurs to become successful. He said that small enterprises usually collapse due to poor management. Therefore, banks or microfinance institutions are duty bound to advice and guide such ventures to overcome obstacles and steer them on the correct path. Kagarama was addressing BDA representatives, SACCOs as well as small scale traders from different sectors of Nyamagabe district.   Banks should focus attention on small scale entrepreneurs as they are the backbone of not only the rural economy but also the economy of the country. “Banks should devote themselves towards uplifting, this segment…

Assessment to gauge public financial management

Assessment to gauge public financial management

The government   has commissioned   a central and local government public expenditure and financial Accountability (PEFA) assessment that   will   put into perspective the country’s Public Financial Management (PFM) system. The   assessment  will  examine     the  capacity  for   fiscal  discipline  , efficient   resource allocation and   proper  service delivery while  benchmarking  them    on   international  standards. “The Government is committed to putting in place strong accountability systems,” said Claver Gatete, Minister of Finance and Economic Panning The minister believes that this will, “ensure effective implementation of policies and the achievements of intended outcomes by supporting fiscal discipline, strategic allocation of resources and efficient service delivery”. The need for  rapid reforms   that was  highlighted  in the  two  previous  assessments  in 2007…