The company said that deliveries of battery electric vehicles (BEVs) jumped by 74.4 percent year-on-year, to more than 376,000 units, meeting the full-year target for all-electric vehicles in total sales of 15 percent.
“With our new, highly attractive and technologically outstanding vehicles, we were able to ramp up electromobility even more dynamically in 2023,” said Jochen Goller, member of the board of management of BMW AG.
This year, one in five of the company’s newly-built cars is set to be a BEV, and by 2025 the target is one in four. “We see continued high demand for our fully-electric products,” Goller added.
In China, the carmaker saw sales of the BMW brand and MINI rise by 4.2 percent, to almost 825,000 vehicles.
The acquisition follows the fulfilment of conditions precedent to the acquisition, including regulatory and corporate approvals and was completed on November 30, 2023. EGH now holds 198,250 shares representing 99.1250% of the issued share capital of Cogebanque, officially making Cogebanque its subsidiary.
On June 14, 2023, EGH publicly disclosed its entry into a binding term sheet for the acquisition of 91.93% of Cogebanque’s issued shares from the Government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Ms. Judith Mugirasoni (the sellers).
The completion of the acquisition was subject to various conditions, including confirmatory due diligence, execution of definitive agreements, regulatory approvals from the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission, and corporate approvals.
The Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana said, “The consolidation of Equity Bank Rwanda Plc and Cogebanque will create a stronger and more resilient banking institution better equipped to serve the needs of the people of Rwanda and will contribute to Rwanda’s economic growth and development. Additionally, this partnership demonstrates investors’ confidence in Rwanda’s economic potential and presents new opportunities for the financial sector to thrive.”
On July 28, 2023, EGH entered into a share purchase agreement with the Sellers by which it agreed to acquire, on completion, 183,854 shares at a price of Rwanda Francs 297,406 per share.
Simultaneously, EGH offered to acquire all the remaining shares from the rest of the Cogebanque shareholders, intending to acquire up to 100% of the issued shares of Cogebanque.
Equity Group Holdings Plc Managing Director and CEO, Dr. James Mwangi, said, “We are delighted to welcome Cogebanque’s employees and customers to Equity Group. Through our focus on innovation, cutting-edge technology, and superior service, we aim to provide enhanced financial services, improve lives, expand opportunities for wealth creation, and deliver significant value to all our stakeholders in Rwanda.
The eventual merger of Cogebanque and Equity Bank Rwanda will consolidate Equity Group’s position in Rwanda and support delivery of its overarching strategy, the Africa Recovery and Resilience Plan. The expansion of Equity Group’s business in Rwanda aims to bolster Rwanda’s financial services landscape and fortifies the Group’s commitment to catalyzing socio-economic development across the African continent.”
Dr. Mwangi went further to add, “By synergizing the operations of Cogebanque and Equity Bank Rwanda, EGH is strategically positioned to deliver an expanded array of competitive, customized financial services. This strategic alignment is designed not only to meet the diverse needs of our customers but also to catalyze economic growth, empower local communities, and contribute to the realization of the Group’s vision as Sub-Saharan Africa’s premier financial institution.”
According to its recently released results as at 30th September 2023, Equity Group Holdings reported deposits growth of 20% to Kshs1,208.6 billion up from Kshs 1,007.3 billion with subsidiaries contributing a 49% growth and Equity Bank Rwanda growing by 39%. Loans grew by 26% to Kshs 845.9 billion up from Kshs 673.9 billion with subsidiaries contributing a 46% growth, and Equity Bank Rwanda growing by 20%. Total assets grew by 24% to Kshs1,691.2 billion up from Kshs1,363.7 billion again with subsidiaries contributing 47% and Equity Bank Rwanda growing by 40%.
{{About Cogebanque}}
Cogebanque is a public limited company licensed by the National Bank of Rwanda to provide banking services in Rwanda. At the end of 2022, Cogebanque was the fifth largest bank in Rwanda as measured by reported book value of total assets and shareholders’ equity and served customers in the corporate, small- and medium-sized enterprise and retail customer segments through twenty-eight (28) branches, approximately six hundred (600) active bank agents and thirty-six (36) automated teller machines.
As at 31st December 2022, Cogebanque reported net assets of Rwf47.35 billion and profit after tax of Rwf9.06 billion.
{{About Equity Bank Rwanda Plc}}
Equity Bank Rwanda Plc is a wholly owned subsidiary of Equity Group Holdings Plc and is licensed by the National Bank of Rwanda to provide banking services in Rwanda. Equity Bank Rwanda ranked third amongst Rwandan banks in terms of reported total assets as at 30th September 2023 and served over 1,351,486 customers through a network of 18 branches, 3,880 agents, 23 ATMs and 1,775 merchants.
As of 30th September 2023, Equity Bank Rwanda Plc reported total assets of Rwf682.9 billion, and profit after tax of Rwf23.2 billion.
{{About Equity Group Holdings Plc and Equity Group}}
Equity Group Holdings Plc is a non-operating holding company with banking subsidiaries in Kenya, Rwanda, Tanzania, Uganda, South Sudan and Democratic Republic of Congo, a Commercial Representative Office in Ethiopia and non-banking subsidiaries in Kenya that are engaged in providing investment banking and stock-broking, insurance, custodial services, payment services and telecommunication services.
Equity Group Holdings Plc is listed at the Nairobi Securities Exchange and other regional exchanges with a market capitalization of KES. 1.34 trillion (USD 0.9bn).
Equity Group Holdings Plc reported a consolidated asset base of KES. 1.7 trillion (USD 11.4bn), deposits of KES. 1.21 trillion (USD 8.2bn) and 8,155.0a customer base of over 18.9 million customers as at 30th September 2023. Equity Group has a footprint of over 360 branches, 69, 656 Agents, over 950,000 Pay With Equity (PWE) Merchants, 34,844 Point-of-Sale (POS) Merchants, over 700 ATMs and an extensive adoption of digital and mobile banking channels.
The impressive profit is largely attributed to the exceptional services provided by its subsidiaries, including Bank of Kigali, BK General Insurance, BK TecHouse, and BK Capital Ltd. The financial figures were unveiled on Wednesday, November 29, 2023.
In addition to the nine-month results, BK Group recorded a profit of Rwf18.2 billion in the third quarter of 2023, marking a significant 19.8% surge compared to the corresponding period last year.
CEO Béata Habyarimana expressed her satisfaction with the sustained growth of the company, attributing the success to the collaborative efforts of its subsidiary companies. This collective strength has fortified BK Group’s position in the market, reflecting positively in the financial results.
Habyarimana conveyed optimism for continued growth in the fourth quarter of 2023, emphasizing the resilience and strategic initiatives contributing to the company’s upward trajectory.
Furthermore, Habyarimana announced that the board of directors has decided to distribute Rwf8 billion in dividends in December, reflecting the company’s commitment to delivering value to its shareholders.
The statistics further reveal that BK Group PLC’s total assets reached Rwf1,195.9 billion in the first nine months, reflecting a robust 13.3% increase compared to the corresponding period last year.
Additionally, customers’ balances and deposits totaled Rwf1,260.9 billion, further highlighting the strong financial standing of the company.
BK Group PLC continues to showcase resilience and growth, reaffirming its commitment to delivering value to both shareholders and customers in the dynamic financial landscape.
In this pursuit of success, while securing funding remains undeniably significant, the roles of innovation and astutely identifying market demands cannot be understated. This collective effort underscores the urgency of creating more avenues for growth and employment.
Among the examples of such endeavors, Vuba Vuba Ltd, a startup that emerged with a purpose, encapsulates the transformative power of innovative ideas.
The company, operating within the domain of food delivery services via a robust e-commerce platform, has emerged as a disruptor. The fruits of their labor are becoming evident, epitomized by their recent distinction as one of the top 20 finalists in this year’s prestigious [Africa’s Business Heroes (ABH)->https://africabusinessheroes.org/en/] competition.
ABH, a cornerstone initiative now in its fifth consecutive year, embodies the promise of surmounting challenges and propelling the continent toward greater heights. This ambitious Prize Competition, championed by the Jack Ma Foundation and Alibaba Philanthropy, resonates as a philanthropic beacon.
It aspires to support and ignite the ambitions of the next generation of African entrepreneurs across a spectrum of industries. The ultimate vision is to cultivate an economy that is both sustainable and inclusive, nurturing the continent’s future.
Rwanda’s unwavering participation in ABH since its inception in 2019 has yielded tangible results. Four Rwandan entrepreneurs have achieved coveted positions among the top 10 winners in the years 2019, 2021, and 2022, respectively.
Cumulatively, Rwanda’s triumphs have translated into a substantial grant amounting to over US$385,000, a testament to the program’s profound impact. This accomplishment serves as an inspiring precedent, illuminating the path for more Rwandan startups, as well as those from other nations, to seize the forthcoming five editions of ABH. The rewards that stem from active participation hold the potential to accelerate the growth trajectory of their enterprises.
The current year witnesses a remarkable surge in submissions to ABH, a testimony to the burgeoning entrepreneurial zeal across Africa. Amidst a staggering pool of 27,267 applications hailing from all 54 African countries, the CEO & Co-Founder of Vuba Vuba Africa Ltd, Albert Munyabugingo, stands tall. Alongside the remaining top 20 entrepreneurs, he has emerged from this competitive crucible. Among these contenders, Rwanda claims representation through a single entrepreneur within the ABH Top 20.
As the journey advances, these 20 visionary entrepreneurs inch closer to the pivotal moment when they will present their exceptional business propositions to global luminaries in Kigali this early September. The pitching session will ascertain the elite top 10, who will collectively share the substantial grant of US$1.5 million.
In an exclusive interview with IGIHE, Munyabugingo elaborated on his brainchild’s nuances, its potential impact on Africa’s entrepreneurship ecosystem, and the expedition that has earned him a spot among the top 20.
{{Excerpts: }}
{{1. Could you provide a brief overview of your company’s mission and the innovative solution it offers to the community?}}
{{Munyabugingo:}} [Vuba Vuba->https://www.vubavuba.rw/] is an e-commerce mobile app that provides a convenient solution currently for residents in Kigali, Musanze and Rubavu to order meals and daily essentials for delivery to their homes or offices in less than an hour.
{{2. Poverty reduction through entrepreneurship is a crucial goal, especially in African countries. How does Vuba Vuba Africa Ltd contribute to this goal, and what inspired you to start this venture?}}
Vuba Vuba contributes to poverty reduction through empowering entrepreneurs at an entry level in Rwanda to scale.
For instance, we work with more than 10 start-ups registered as restaurant businesses in Rwanda with no space for dining. They just cook and deliver through Vuba Vuba.
Since its launch in January 2020, Vuba Vuba has a team of 31 full-time employees, 100 delivery riders, and 50 casual workers.
Together, they have facilitated the delivery of more than 1,000,000 orders, maintaining an impressive daily average of 1,000 deliveries.
I co-founded Vuba Vuba Africa Ltd in January 2020 with my colleague Innocent Kaneza.
We wanted to build a strong local tech solution for e-commerce. The inspiration to start an e-commerce mobile app was to fill in the gap that was left on the market after Jumia exited the Rwandan market in 2019.
We believed we are the best fit for it and to build a strong local tech solution for e-commerce, we decided to retain Jumia’s former employees who had been left jobless. Last week we launched a new version of the app that we are very excited about as it speaks to growth.
{{3. Vuba Vuba Africa Ltd operates in the agri-food sector. Could you delve into the specific ways your company addresses challenges in delivery services and contributes to national development?}}
Vuba Vuba collaborates with fresh produce sellers to bridge the gap for clients facing time or distance challenges. Our services enhance access to fresh produce, empowering local businesses to reach a wider customer base. We are also working on connecting farmers with our partner restaurants directly.
{{4. Innovation plays a pivotal role in today’s business landscape. How do you foster a culture of innovation within your company, and what role has it played in your success?}}
At Vuba Vuba, we drive growth by incentivizing staff contributions. Our inclusive recruitment seeks innovative minds to tackle challenges head-on, fostering creativity and driving solutions for our business. From Junior positions, we allow sharing of ideas on how to tackle growth challenges.
{{5. You were recently selected as one of the top 20 entrepreneurs by the Jack Ma Foundation’s Africa’s Business Heroes initiative. Could you share your initial reaction when you found out you were among the top 20 out of over 27,000 applicants from across Africa?}}
The email came in late at night and it’s the first thing I saw in the morning; you can imagine the smile on my face since then. This is a huge milestone being selected to be supported by one of the world’s greatest pioneers of e-commerce, a sector in which I am.
{{6. How was the journey of participating in Africa’s Business Heroes? }}
Africa’s Business Heroes (ABH) is one of the biggest platforms one would love to be part of. To me, it is the first with so many giants in the entrepreneurship ecosystem in Africa and beyond. I have learnt more so far, have connected with great minds and even looking to continue doing so as we want to expand Vuba Vuba to more African countries.
{{7. The upcoming ABH event in Kigali sounds exciting. Can you please tell us about your expectations for pitching your business idea to global business legends and the potential impact winning the grant could have on Vuba Vuba Africa Ltd?}}
As we approach the pitching session, we are diligently preparing day and night, with the goal of winning the prize that would fuel our growth strategies. This encompasses broadening the range of products and services we provide, as well as extending our solution to reach a wider audience across the African continent.
{{8. Rwanda has been consistently successful in the ABH initiative, with several entrepreneurs emerging among top winners. What factors do you think have contributed to Rwanda’s success, and how can other aspiring entrepreneurs learn from this experience?}}
Rwanda as a country, has created a very promising environment with incentives for innovation and entrepreneurship generally for local and international companies looking at having Rwanda as their first market of operations as well as expansion. Vuba Vuba is a practical example of such companies. I have not had any business outside of Rwanda but from different conversations, Rwanda really works.
{{9. The entrepreneurial spirit in Africa seems to be growing rapidly. What advice would you give to young entrepreneurs who are looking to make a positive impact through their business ideas, especially considering the current economic challenges?}}
My advice to upcoming entrepreneurs is quite simple: build an impactful solution, spend time defining your processes, adapt your processes to your market, speak to your users/customers to understand their needs because I believe – as ABH’s theme states it, {{IT’S AFRICA’S TIME }} and we will have enough customers for different products if they are well designed for the market. If this works well, I strongly believe investment will follow you.
{{10. Lastly, for other entrepreneurs who might be considering participating in future editions of Africa’s Business Heroes, what key takeaways or insights would you like to share from your own experience?}}
My experience with ABH is that the application is long for a very good reason. It gives you time to go back to your business’ basics and understand them even deeper. From any sector you might be operating in, not necessarily tech, this is a very good platform for mentorship, meeting the right investors and connecting with fellow founders.
While applying, be real, do not fake numbers, [the ABH application->https://africabusinessheroes.org/en/] opens every year for another 5 years ahead from now.
The CEO of I&M Bank, Benjamin Mutimura credits the bank’s diverse business model, resilient balance sheet, and commitment to customer service for these results despite challenging macroeconomic conditions.
Net revenue reached Rwf21.5 billion, with a 4% increase in net interest income due to loan and investment growth. Fees and commissions rose by 22%, driven by digital adoption and an expanding customer base.
Foreign exchange revenue surged by 59%, while operating expenses grew by 26%, attributed to technological investments and inflation. The Non-Performing Loans ratio remained stable at 3.62%, demonstrating an improved loan book quality.
Total deposits increased by 10%, with MSME deposits growing by an impressive 36%. Around 72% of customer deposits were in current and savings accounts. To enhance MSME focus, I&M Bank formed a strategic alliance with FMO, a Dutch development bank, to establish the NASIRA Portfolio Guarantee for smallholders, youth, and women entrepreneurs.
Mutimura emphasized the bank’s commitment to economic recovery, innovation, digital solutions, and strong customer relationships.
The acquisition, valued at Rwf54.68 billion, propels Equity Bank to a prominent position among the local banking giants, now ranking as the second-largest bank in Rwanda in terms of portfolio size.
Dr. James Mwangi, the CEO of Equity Group, expressed his satisfaction with the deal, highlighting its potential to drive a 54% growth for Equity Bank Rwanda and increase its lending capacity from US$15 million to at least US$25 million. This boost is expected to greatly benefit entrepreneurs and loan applicants seeking financial support.
Dr. Mwangi emphasized that this acquisition goes beyond a simple sale; it signifies a collaboration that fosters economic and commercial development in the region, holding the potential to positively impact local economic players.
The acquisition of Cogebanque Plc by Equity Bank is also anticipated to stimulate the creation of various job opportunities.
Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, praised the spirit of collaboration between the two parties and celebrated the swift conclusion of the deal, with negotiations taking only one month.
According to Minister Ndagijimana, this acquisition will make a significant contribution to accelerating the country’s economic growth.
The merger was officially sealed on Friday, July 28, 2023, at the Ministry of Finance and Economic Planning premises, with the participation and signatures of Rwandan stakeholders, including the government, RSSB, Sanlam, and Judith Mugirasoni, the representative of Bertin Makuza’s interests.
According to a statement announcing the development, the acquisition of the fifth largest bank, and subsequent amalgamation of the business with that of Equity Group’s existing banking subsidiary in Rwanda, would position Equity Bank as the 2nd largest bank in Rwanda after the merger with a total combined assets market share of 18% and a deposits market share of 19% based on audited accounts as at 31st December 2022.
The transaction would solidify Equity Group’s systemic status in the region with the amalgamated Rwanda subsidiary joining Equity Bank Kenya and Equity BCDC in the Democratic Republic of Congo as banks with the second largest market share in their respective markets.
Commenting on the development, Dr, James Mwangi, Group Managing Director and CEO, Equity Group Holdings Plc said: “Rwanda’s 5-year average GDP growth rate at 6.5% ranks it amongst the 10 fastest growing countries in the world.”
“Rwanda’s economic growth is expected to be supported by a continued ease of doing business, recovery of global travel that will underpin its tourism and Meetings, Incentives, Conferences and Exhibitions (MICE) strategy targeting Foreign Direct Investments, regional integration, supporting trade and increasing contribution to its manufacturing sector.
An underpenetrated financial services sector, with private sector credit and GDP being below 30% provides a well-defined secular growth opportunity for the financial services Group,” he added.
Dr. Uzziel Ndagijimana, Rwanda’s Minister of Finance and Economic Planning has also welcomed the acquisition.
“Equity Group’s acquisition of Cogebanque reflects the trust and confidence placed in Rwanda’s economic prospects and the resilience of our financial industry,” he noted.
“The consolidation of these two institutions will undoubtedly contribute to the growth and stability of Rwanda’s banking sector, enabling us to provide better financial services to our citizens and facilitate economic empowerment,” added Dr. Ndagijimana.
By harnessing the power of technology, Bank of Kigali has simplified the tax payment process, enabling customers to save valuable time and effort.
Whether using the BK Mobile App on smartphones, Internet Banking on computers, or the user-friendly USSD-based service Mobiserve (*334#) on basic mobile phones, taxpayers can complete their payments swiftly and efficiently with just a few taps or clicks.
The advantages of utilizing Bank of Kigali’s digital channels for tax payments are manifold. Here are some key benefits that taxpayers can enjoy:
{{Convenience}}
Bid farewell to enduring long queues at the bank. With BK’s digital channels, customers can settle their tax obligations from anywhere, at any time, without the need for physical visits. This newfound convenience allows individuals and businesses to manage their tax responsibilities without disrupting their daily routines or professional commitments.
{{Time-Saving}}
Gone are the days of waiting in line or dealing with cumbersome paperwork. Bank of Kigali’s digital platforms offer a seamless experience, allowing taxpayers to complete their payments swiftly and efficiently. This time-saving advantage empowers customers to allocate their valuable time to other essential tasks, making their lives more productive and stress-free.
{{Security}}
At Bank of Kigali, the security of customers’ transactions is of paramount importance. Robust security measures, including state-of-the-art encryption protocols and multi-factor authentication, have been implemented to ensure the utmost protection of customers’ financial information. Taxpayers can rest assured that their personal data and payment details are safeguarded against any potential threats.
{{Accessibility}}
Bank of Kigali’s commitment to inclusivity is exemplified by its digital channels, catering to a wide range of customers. From smartphone users to those with basic or feature mobile phones, BK provides options that suit various preferences and technological capabilities. This accessibility ensures that individuals from all walks of life can easily fulfill their tax obligations without facing technological barriers.
By embracing Bank of Kigali’s digital channels for tax payments, both individuals and businesses can avoid the anxiety and rush typically associated with meeting tax deadlines. Instead, they can experience a seamless and convenient process that fits their schedule and helps them stay on top of their financial responsibilities.
Through its unwavering commitment to innovation and customer satisfaction, BK is paving the way for a more efficient and digitally-driven banking landscape in Rwanda.
The East African Community Regional Force (EACRF), which was deployed in eastern DRC last year, requires sufficient resources to fulfill its mandate.
The funding for these peacekeeping operations is expected to come from contributions by EAC member states and donors’ aid.
During an extraordinary EAC Heads of State Summit held in Bujumbura recently, Dr. Peter Mathuki, the Secretary-General of the bloc, announced that some countries have already provided their contributions.
In addition to partner countries such as Angola and Senegal, he disclosed that Kenya, Tanzania, Uganda have provided US$1 million. Meanwhile, Dr. Mathuki said that Rwanda has also pledged financial support.
The funding for peace initiatives will be channeled through the EAC Peace Facility.
Rwanda has welcomed this initiative and expressed its commitment to support it, although the exact amount of its pledge has not been specified, according to Alain Mukuralinda, the Deputy Government Spokesperson.
Despite the bloc’s determination to achieve lasting peace in eastern DRC, the availability of financial resources remains a significant challenge that requires sustainable solutions.
The EAC troops were initially deployed to the DRC for a six-month mandate starting from September 8, 2022. Their mandate was extended for an additional six months after its expiration on March 7, 2023.
DRC has been accusing Rwanda of backing M23 rebels, allegations which the latter refutes and calls for attention to draw emphasis on the real cause of security crisis in DRC.
Instead, Rwanda has advised the DRC to focus on resolving its internal problems rather than seeking excuses.
Rwanda is a member of the EAC but its troops are not part of the EACRF contingents due to the DRC’s decision to boycott their intervention.
Despite the situation, Rwanda has consistently expressed its willingness to contribute to efforts aimed at addressing the security problems in the DRC.
Billed as “the flagship startup and tech event of the world’s first digital society,” Latitude59 brought together over 400 investors and 800 startup reps in the Estonian capital of Tallinn, from 24-26 May.
As part of the conference’s speakers program, Mr Eazi discussed his tech and creative journey — and the prospects of the African orange economy via smart governance — in a roundtable with former Estonian president Toomas Hendrik Ilves.
While in Estonia, he also met with industry leaders and tech entrepreneurs, including Ahti Heinla, a founding developer of Skype and the founder and CTO of robotics company Starship Technologies; and Markus Villig, the founder and CEO of mobility company Bolt.
“My last-minute trip to Estonia ended up being one of my favorite 24 hours this year,” said Mr Eazi.
“At the conference, I spoke about my career and journey from founder to musician toan investor, with my own VC fund, Zagadat Capital, investing in tech businesses.”
That journey appears to be of great interest, as Latitude59 is not the only international business conference to host Mr Eazi recently. Earlier in May, he was a speaker at the 2023 Milken Institute Global Conference in Los Angeles, where he shared his views on African music’s role in developing and stimulating the continent’s creative economy.
Paramount on Eazi’s mind in Estonia was the potential for business alliances in tech. Estonia presently has the most start-ups per capita of any European nation. It is ranked first in the region for its business environment by the Emerging Europe IT Competitiveness Index.
“[Former president] Ilves shared how Estonia has been positioning itself to be friendly for tech founders and entrepreneurs through its digital e-residency program,” Eazi said. “You can set up your company digitally in Estonia, and become an e-resident.” Eazi, who via Zagadat Capital recently invested in Decagon, a company that trains engineers in Nigeria and pairs them with jobs worldwide, sees a major opportunity for African tech talent to gain a foothold in overseas markets such as Estonia.
“You have over 10 million smart, young people getting out of university each year in need of jobs. Now, Africa — not just Nigeria, but Kenya, Ghana, Benin, Rwanda, Tanzania etc — our continent has the prospect to become the highest net exporter of technology talent.”
While this was Eazi’s first visit to Estonia, he is not a stranger to the country’s business environment. His VC fund Zagadat Capital has already invested in the mobile payment service PawaPay, which employs a number of engineers in Estonia.
“I believe this is my first of many trips to Estonia, and I am excited at the fun stuff and ideas we will execute together,” he stated.
