Housing Puzzle Solved? Rwanda Civil Servants Getting Dream Homes

Urukumbuzi village at Kinyinya sector in Gasabo district

Alexandre Kayitare 32, graduated in 2010 and started working as a civil servant. His target was to build his own house in Rwanda’s capital Kigali within the first year of his employment. However, four years later, the financial maths huddle has dodged him. It is tricky. Very tricky indeed. He told KT Press that the only option is to keep in a rented house and if promoted to a higher job, probably with bigger salary, he could only purchase a plot of land. “Calculations are hard to make, considering the revenue of a civil servant,” says Kayitare. He ponders, “How could I own a house if half of my salary goes to my landlord?”. Saving…

Financial sector banks on ICT to improve service delivery

The banking sector is tipped to grow stronger.

The use of ICT in the country’s financial sector remains high on the agenda as efforts to bolster service delivery and deepen access to finance for all continue to record a positive performance. The sector, according to National Bank of Rwanda recorded more than 14 percent and 42 percent in growth and profitability respectively last year. Thus, the use of technologies as Amb. Claver Gatete, Minister of Finance and Economic planning says will play a key in the stability of the sector that has continued to remain liquid and profitable. “Improving services delivery through the use of ICT remains high on the agenda and should be embraced by all financial sector players,” the Minister said…

USA, UK Top Investors As Rwanda Registers $1.2 Billion In 2015

USA, UK Top Investors As Rwanda Registers $1.2 Billion In 2015

It is unusual for Medical Doctors to mobilise millions of dollars and invest in a multi-million dollar and bankable venture. In 2015, however, three big brains in global health, Drs. Paul Farmer, Peter Drobac, and Agnes Binagwaho; Rwanda’s Health minister, were able to mobilise enough money for what turned out to be Rwanda’s biggest investment of the year. Equipped with an array of academic and extensive expertise from implementation experts to educators from leading academic medical institutions, including Harvard Medical School and Tufts University’s Cummings School of Veterinary Medicine, the doctors established the University of Global Health Equity (UGHE). The world-class health sciences university, owned by Partners in Health, an American health organisation, is worth…

Moto-taxi Operators Furious As GT Bank Threatens To Auction Rwf150m Property

Moto taxi operators in Rusizi District

Hundreds of moto taxi operators in Rusizi district have learnt a good lesson the most painful way. Grouped under Cooperative de Taxi Moto de Rusizi (Comoru), about 400 moto taxi operators collect about Rwf82.6million per year from membership fees and a daily levy. “Every day, we contribute Rwf500, on top of Rwf2000 every month since 2012,” says Hamdunia Mugabushaka, a member of the cooperative. With this volume of funds flowing in steadily, they agreed to construct a 4-storied commercial building strategically located within Kamembe town. However, after completing two floors, cooperative members realised their funds were not sufficient to complete the entire building. They realised they needed more than just Rw80m. It was in 2012…

Atlas Mara completes acquisition of Banque Populaire

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The much awaited merger, equity acquisition and commencement of the operational completion between Banque Populaire du Rwanda (“BPR”) and BRD Commercial Bank Limited (“BRD Commercial”) into BPR has officially been completed. Agreements for the transaction were reached in October 2015. BPR, the name of the combined entity, will be Rwanda’s second largest bank by assets estimated at $325 million. It will also have the largest distribution of branches. Atlas Mara acquired BRD Commercial in October 2014. Atlas Mara will own 62 per cent of the combined entity before purchase of outstanding shares from investors who acquired the bank’s stock during its cooperative days. “After the transaction the local individual shareholders and Rabobank will remain the…

MFIs manages yet another good quarter, but bad loan worries aren’t over for the sector

MFIs manages yet another good quarter, but bad loan worries aren’t over for the sector

After registering an increase in the Non-performing loans-NPLs bad loans in the nine months of 2015, the sector says it priotizes bringing them (the bad loans) down 2016. According to central bank, the microfinance sector recorded an increase its bad loan to 7.8 percent in September 2015 up from 7.7 percent in September 2014 well above the bank’s benchmark target of 5 percent. “Our focus in the first quarter of 2016 is to help our members to reduce the Non-Performing loans,” Peter Rwema, acting Executive Secretary of Association of microfinance institutions in Rwanda-AMIR told this website. The association in collaboration with its members carried out a survey in the second quarter of 2015 to ascertain…

Central bank maintains key repo rate at 6.5 percent

 Rwangombwa during the interview with this newspaper last week.

The Central bank has maintained its key repo rate at 6.5 percent for the first quarter of 2016 in order to allow commercial banks to continue to lend to the private sector spurring economic growth. The decision, according to the Governor central bank John Rwangombwa is due to the economy that continues to project a positive outlook going forward considering also policy current policy stance. “This is also due to the fact that the current policy stance continues to yield expected positive results,” the Governor said while presenting quarterly financial results on Thursday in Kigali. He adds, “The committee will continue to monitor developments and take appropriate action as required.” Moreover, the good performance by…

Youth urged to venture into smart savings

CMARwanda urges Rwandan youth to save and invest through the Capital Market.

In order to secure their future, youth need to venture into smart savings that will guarantee sustainability, experts have urged. Eric Bundugu Deputy Executive Director of Capital Markets Authority-CMA noted that smart savings which includes tapping into the capital markets will help youth have a strong saving backbone. “They need to be educated on how to secure their future, this should be from programmes that ensure guaranteed savings,” he told this Website on Tuesday. Bundugu notes that a finically literate generation of the youth will ensure the country’s sustainable growth while solving challenges such as unemployment and poverty which still cripples the economy. “CMA is conversant that public education and awareness is an important regulatory…

New initiative to link farmer to banks electronically

This initiative will connect individual farmers and cooperatives with banks, agro -dealers, retailers, commodity processers, crop buyers, and other producers, creating a digital payments ecosystem.

Farmers as well as other players in the value chain will be able to link to banks digitally, thanks to the new initiative by Clinton Development Initiative (CDI), an initiative of the Clinton Foundation. The initiative is looked at to help boost farmers’ financial security while empowering them economically to make purchases with greater knowledge and ease. “We work to empower farmers in Rwanda – giving them the knowledge and resources to improve their yields, improve their profitability, and improve their livelihoods,” said Walker Morris, CEO of the Clinton Development Initiative in a statement on Tuesday. He adds, “This effort will connect individual farmers and cooperatives with banks, agro-dealers, retailers, commodity processers, crop buyers, and…

World Bank Loans Rwanda $95m To Reduce Power Cuts

World Bank Loans Rwanda $95m To Reduce Power Cuts

Rwanda on Tuesday got new financing from the World Bank to connect more than 72,000 new homes to national grid – as well as tackle biting power cuts that began last week when lines were damaged. The new $95m approved by the bank’s board will go to the Energy Utility Corporation Limited (EUCL). The financing will enable the agency connect more homes to network, rehabilitate the dilapidated Kigali’s 15KV distribution network to meet an increased demand. The loan will also reduce the frequency of electricity supply interruptions. Since the weekend, large parts of the country have been facing power cuts as technicians struggle to restore a damaged line which brings power from dams in western…