Govt banks on community processing centers to boost SMEs

Govt banks on community processing centers to boost SMEs

  In a bid to  increase  local production and  address challenges  the Small and Medium enterprises-SME cluster is  facing, the  government  is  has started  community  processing Centers-CPCs. The Minister of trade and Industry Francois Kanimba said that the processing centers will increase   SME contribution to the national economic development in line with government programs. “The ministry    initiated the CPC concept in 2012 as a mechanism to address the challenges SMEs are facing and boost local production capacity for recapturing local, regional and international market,” he said The   processing   center are seen by  government as  role  model   centers to help boost the creation of more  SME  in   processing cluster  to   boost  production  needed to   increase   exports…

Gikonko: « Impambasacco » fait ses preuves

Gikonko: « Impambasacco » fait ses preuves

Les producteurs de riz du secteur de Gikonko, District de Gisagara, ont créé une coopérative d’épargne nommée « Impambasacco »et ils affirment que, depuis, le niveau de vie de leurs familles ne cesse de s’améliorer. Au début, chaque  producteur épargnait individuellement un peu d’argent de sa production. Après, ils se sont rassemblés et ont même intégré d’autres membres qui ne sont pas nécessairement producteurs de riz, afin derenforcer leur coopérative. Alphonse Nzabirinda, l’un de ces agriculteurs, a affirmé que cette coopérative est une solution aux problèmes liés à la pauvreté car ils peuvent désormais obtenir des crédits bancaires et développer leurs projets. Ignace Kayumba, Secrétaire Exécutif du Secteur de Gikonko, a expliqué que ces producteurs de riz…

Shareholders in banks struggling to make profits

Shareholders in banks struggling to make profits

Despite being an impressive leap and a show of how sound Rwanda’s financial sector is, banks are still facing low profitability, a turn-off for banks that may want to enter the market in the future. Banks’ return on average equity (ROAE), a measure of their profitability for the first nine months of last year stood at 10.9 percent, according to National Bank of Rwanda’s (BNR) last month monetary policy statement. This is lower compared to banks in neighboring East African Community countries, Kenya, Uganda and Tanzania which have their ROAE at above 25 percent. Lawson Naibo, chief operating officer of Bank of Kigali (BK) attributes the low profitability in the market to continued “pressure” on…

Microfinance sector needs to boost performance – Experts

Microfinance sector needs to boost performance - Experts

Financial experts say detailed information on loan products will ease the hiked percentages, following the central bank announcement that the microfinance sector’s non-performing loans rose to 7.7 percent in the third quarter of the 2014 from 6.8 percent. The increase   in   Non-Performing Loans-NPLs which h ate in  profit margins of the sector, according to Central Bank  is likelyto affect the positive performance    of the sector  looked on  to  boost financial inclusion for all mainly  rural folks. Accordingly, the sector clients  which   most of them  have  little or  no background  in education  take  loans without  first understanding  their  conditions, thus  end up  failing to  pay back, something that would  be  increasing  NPLs. “because most  people are…

Microfinance institutions urged to incorporate regional charters

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Regional microfinance institutions are poised to benefit from regional integration, if they apply for an observer status at the East African community secretariat. Innocent Safari, the permanent secretary, Ministry of East Africa community affairs has said. The advice follows plans by sector players to move towards integrating legal and regulatory frameworks during last year’s C.E.O’s summit in the country. During the summit, top micro finance managers resolved to explore ways in which laws, regulations and supervisory frameworks governing the sector can be harmonised to enhance cross-border business. However, according to Safari, there is need for the sector through their East Africa Microfinance Institutions Network (EAMIN) to apply for an observer status at the EAC secretariat…

Banks cry foul in 2014, hope for better 2015

Banks cry foul in 2014, hope for better 2015

The banking industry is struggling to register profits despite heavy investment that the players have injected into their operations over the years. Over the past nine months, Kenya Commercial Bank set aside Rwf1.2 billion to cater for bad loans and injected Rwf1.1 billion as additional capital. However, the bank has registered a staggering Rwf4 billion loss. Equity Bank in 2013/2014 financial year capitalised its operations to the tune of Rwf5 billion and set aside Rwf306 million for bad loans. However, the bank registered a loss of Rwf2.2 billion. GT Bank, a Nigerian bank, which recently acquired Fina Bank, also registered a loss of up Rwf821 million this year. “Most banks are considering or have already…

Rusizi: Barishimira ibyo bagezeho babikesha gukorana na za SACCO

Rusizi: Barishimira ibyo bagezeho babikesha gukorana na za SACCO

Bamwe mu baturage bo mu murenge wa Nyakarenzo mu karere ka Rusizi bakorana na SACCO Abesamihigo y’uwo murenge barishimira iterambere bagezeho barikesha gukorana n’icyo kigo cy’imari iciriritse. Mubyo bavuga bagezeho birimo kuba abagore bararetse gukesha amaramuko guhinga no gusaba abagabo babo ibyo bakeneye byose ubu bakaba barayobotse umwuga w’ubucuruzi. abaturage bo muri uyu murenge wa Nyakarezno bavuga ko bagobotswe na SACCO nyuma yo kuyigana bagashira ubwoba bakayakamo inguzanyo bashoye mu bikorwa byo kwagura ubucuruzi bwabo ndetse n’abandi  byatumye bava mu nzu za nyakatsi bakubaka izigezweho. HABIYAREMYE Domisiyani na NYIRABAKUNGU Florentina bavuga ko Sacco yabahaye inguzanyo bazikoresha mu mishinga itandukanye kuburyo batabura uko bikemurira ibibazo ibyo aribyo byose. BENINKA Charlotte umucungamutungo wa SACCO ya Nyakarenzo avuga…

Burera: Bagaragaza impungenge zituma bamwe batseta ibirenge mu kubitsa muri SACCO

Burera: Bagaragaza impungenge zituma bamwe batseta ibirenge mu kubitsa muri SACCO

Abaturage batandukanye bo mu karere ka Burera batangaza ko hari abadashishikarira kubitsa amafaranga yabo muri za SACCO ngo kuko bazifata nka bya bigo by’imari iciriritse (Microfinances) byakoreye mu Rwanda bikaza guhomba, amafaranga y’abaturage agatwarwa na ba bihemu banze kwishyura ibyo bigo by’imari. Abaturage bavuga ko ibyo bigo by’imari bindi byari byegerejwe abaturage, byatangiye bitanga serivisi zijya kumera nk’iza SACCO. Ngo ariko byaje kugira imikorere mibi ituma bihomba bifunga imiryango, bamwe mu baturage baburiramo amafaranga yabo byari bibabikiye. Nubwo hari bamwe mu baturage bashishikariye kubitsa muri SACCO abandi bo baracyagendera kuri ayo mateka mabi ibyo bigo by’imari bindi byabasigiye, bumva ko SACCO nazo zishobora kumera nkabyo. Mu giturage abatabitsa muri SACCO ngo bahitamo kujya mu bimina,…

Microfinance banks would foster access to credit for SMEs

Microfinance banks would foster access to credit for SMEs

Financial Institutions like Microfinance Banks are seen as vital channel through which   Small and Medium enterprises-(SMEs) mainly in rural areas can access credit to expand their businesses. Due to their nature of operation, rural SMEs which  are  mostly  household  enterprises  depending  on   meager family  capital have been finding it difficult to   woe banks to extend credit to them with the latter seeing the country’s budding sector  as risky  to lend to. While on the other hand microfinance Institutions may not have enough line of credit to   lend to the entire sector which as well as enough resources to   ensure   loan recovery as well as supporting the borrower technically to avoid defaulting. “Their service delivery   is  …

Financial constraints cripple Umwalimu Saccos loan book growth

Financial constraints cripple Umwalimu Saccos loan book growth

Despite   registering a huge profit    last year mainly  driven  by   increased loan  book as well as  dropping  Non  performing loans-NPLs,  Umwalimu  Sacco  says  lack of financial  capacity  is   hampering the growth   in its loan  book . To extend to   its clients, the country’s teachers Savings and credit cooperatives relies on the returns from the loans disbursed as well as teachers’ savings which is not enough to   satisfy the increasing demand. “The financial capacity of the institution is still   low, specifically in covering or supporting the teachers’ loan demands,” said Joseph   Museruka, the Sacco’s Managing Director This according to Museruka   is also attributed to  low interest rate that  stands  at 11 per cent which   drive   more …