IGIHE

Category: Business

  • BK named best bank in Rwanda by Global Financial Magazine

    This year’s edition is the 29th since Global Finance launched annual awards for the World’s Best Banks.

    The winners of this year’s awards are banks that attended carefully to their customers’ needs in difficult markets and accomplished strong results while laying the foundations for future success.

    Bank of Kigali is among honorees for the year 2022 from 36 African countries.

    Winners have been chosen in more than 150 countries and territories across Africa, Asia-Pacific, the Caribbean, Central America, Central & Eastern Europe, Latin America, the Middle East, North America and Western Europe.

    The overall Best Bank in Africa is Standard Bank. Other banks that emerged winners in respective countries include Bank of Kigali in Rwanda, Centenary Bank in Uganda, CRDB Bank in Tanzania, CAC International Bank in the Democratic Republic of Congo (DRC) while NCBA was ranked the best bank in Kenya.

    All selections were made by the editors of Global Finance after extensive consultations with corporate financial executives, bankers and banking consultants, and analysts throughout the world. In selecting these top banks, Global Finance considered factors that ranged from the quantitative objective to the informed subjective.

    The Global Finance has also indicated that the overall Best Bank in the World will be announced in the summer and published in October, along with the Best Global Banks in more than a dozen key categories.

    In light of the existing situation in Ukraine, Global Finance has decided not to assign Best Bank awards in countries directly involved in the current conflict.

    “With the financial world in a state of turmoil from Russia’s invasion of Ukraine, corporate leaders face a new set of challenges concerning the choice of their banking relationships,” said Joseph
    D. Giarraputo, publisher and editorial director of Global Finance. “Following on the enormous difficulties wrought by the pandemic, these changes demand increased attention to global commercial relationships. Our awards support decision-makers in selecting the best financial partners.”

    Banks were invited to submit entries supporting their selection. Objective criteria considered included: growth in assets, profitability, geographic reach, strategic relationships, new business development and innovation in products. Subjective criteria included the opinions of equity analysts, credit rating analysts, banking consultants and others involved in the industry.

    Global Finance regularly selects the top performers among banks and other providers of financial services. These awards have become a trusted standard of excellence for the global financial community.

    Bank of Kigali headquarters.

  • BPR Plc merges operations with KCB Bank Rwanda

    This means the two banks will now operate as a single entity named BPR Bank Rwanda Plc, with KCB Group as the majority shareholder with effect from 1st April 2022.

    The combined bank will become the second largest bank in the Rwanda banking industry and gives KCB Group a stronger edge in deepening the ongoing Group strategy to scale regional presence.

    Commenting on the development, KCB Group CEO and MD Joshua Oigara said: “BPR as we know it today has a lot of potential. The success of this business will build on our era of undisputed leadership in the market and contribute towards Rwanda’s economic success journey. I am confident that we can re-write Rwanda’s next chapter of development and economic growth.”

    “The success of this integration now allows our customers to enjoy exciting retail and wholesale offerings and the wide branch network is an opportunity for us to roll out products and services to MSMEs and the rural community,” he added.

    Subsequently, the BPR Bank Rwanda Plc Board has approved a new organization structure for the integrated entity which takes effect immediately subject to governance approvals obtained from the National Bank of Rwanda (BNR). Mr. George Odhiambo, a seasoned banker has been appointed as the Managing Director BPR Bank Rwanda Plc. George was the Managing Director of KCB Bank Rwanda.

    “The structure has considered the necessity of smooth post-integration transition with minimal business and human capital disruption whilst retaining key talent resources as well as alignment to the KCB Group Structure for support and governance,” said Mr Oigara.

    The new entity has a new trademark and registration operating as BPR Bank Rwanda Plc; a new approved organizational structure; aligned products and services for the market; integration of core banking system; credit process automation and rebranded branches and customer touch points amongst other deliverables.

    BPR is a strong retail and SME Bank with the largest branch network in the sector and a long history spanning over 45 years in Rwanda.

    The merger will provide current KCB Rwanda’s customers with access to a larger network of branches and agents across the country, while BPR’s customers will benefit from best-in-class digital capability, transactional banking solutions, trade finance expertise and international banking offering from KCB.

    KCB Group CEO and MD, Joshua Oigara.

  • E-commerce in Rwanda: A conversation with a pioneer

    Picture a world without e-commerce. A world in which every purchase demands physical presence of the buyer; where one sets for the market with only hope that products will be available; where dear ones from afar cannot cherish us with presents; where parents and caregivers cannot get supplies without compromising on other responsibilities; where the busy have to spare time (and fuel) for shopping despite the activity not requiring their presence. That is a world without e-commerce.

    Fortunately, our world is different. Shopping is faster, cheaper, convenient, and provides more choices to the consumer. How did we get here? Yvette, an e-commerce pioneer in Rwanda and the founder of Murukali, takes us back to the challenges and solutions of the early days, and her business’s partnership with Vanoma.

    How did you come to start an e-commerce business?

    I had the idea to start Murukali when I couldn’t find any place to order supplies for my family while on maternity leave. Back in 2015, mobile payments weren’t nearly as ubiquitous as they are today, and home delivery as a service was rare.

    What was the idea, and what challenges did you face?

    The idea was to make shopping possible from anywhere at the touch of a button. We wanted to make sure anyone could sort through quality-controlled products, pay, and have them delivered without leaving their home or workplace. While it might sound like a no-brainer today, this was 2015, and people were skeptical it could be done in Rwanda, to say the least.

    Every new business faces challenges, but ours had them twofold. On one hand, we had to build an e-commerce business, but given the state of infrastructure, we also needed to build a logistics arm as well. It was a significant challenge, especially with capital allocation at that point.

    What were the problems in delivery?

    Delivery companies of the time were unreliable. For instance, one company opened up shop and left after a short time, some other companies would directly compete with us and steal some of our customers, and bureaucracy at the post office wouldn’t allow us enough flexibility and fast response to our clients’ needs. So in the end, the better option was to make delivery an in-house service.

    How did the pandemic affect the business, and how did you manage?

    The pandemic was a challenging time in many ways. During lockdowns, people turned to e-commerce for almost all shopping, and we saw around a 40% increase in business. That meant more people to serve, and this time they had fewer options and reliability was at a premium.

    It was then that I came across Vanoma (Nisawa at the time). They were young people with a focus on delivery and a degree of professionalism I was yet to see in the business. The company had the technology to order a delivery online which significantly sped up our process and reduced room for human error. The drivers were also reliable and communicated problems to help serve our customers better. Vanoma has made the business a lot easier to manage since one can focus all resources on the e-commerce side of the business with added security that delivery is taken care of.

    What would you tell sellers still reluctant to embrace e-commerce?

    I would say e-commerce makes it much easier to promote and sell products. Many producers sell exclusively through their physical stores and partnerships with supermarkets. These stores can only market so many products, and with many suppliers available, conflicts of interest can arise. Predictably, when producers introduce new products, customers rarely notice. With e-commerce, it is a lot easier to advertise new products with even more control of the brand message. E-commerce also affords you a suite of digital marketing tools to connect directly to people. Through social media and other means, you can easily reach as many people as you like with the news and offers. Moreover, people can see product details and buy instantly from wherever they are.

    In terms of sales, e-commerce brings more predictability. Things such as heavy rains and storms can easily cut the customer supply. This can be dreadful, particularly with fresh food sellers and bakeries where a day without sales means a whole inventory wasted. Rush hour traffic jams are also getting worse. If you consider numerous stops people have to make including dropping/picking up kids or going to the gym, it becomes clear that there simply isn’t enough time to shop conveniently. Put simply, sellers are missing out on customers just because of accessibility issues even on regular days. Online sellers can expect the same amount of orders regardless of weather or traffic conditions.

    Where do you see the future of e-commerce in Rwanda?

    I see a bright future for e-commerce in Rwanda. Some of the hardest challenges have almost completely been solved: mobile payments are ubiquitous and companies like Vanoma ensure a smooth delivery experience. There is untapped potential for youth employment and value creation for people of all levels of wealth. This is something I think businesses and the government can work together to bring to fruition.

    Even though the sector has seen dramatic growth, we still need mindset shifts in order to involve as many people as possible. Out of habit, some people are yet to see the benefits in convenience and saving time that e-commerce affords. E-commerce customers through platforms like ours have a much wider selection of goods and prices. Sellers too could gain much from having their products listed online for anyone to see, not just the few that can make it to the physical store.

    What advice would you give to aspiring e-commerce entrepreneurs?

    As for all entrepreneurship, it is important to give yourself time. Results do not show up on the first day, and, in fact, they usually take years to materialize. When you’re starting a business, mute both the inner and outer critics for about five years and see where the journey takes you. Feedback is important, but a bias towards optimism is crucial, especially in the rough first days. As for e-commerce, a lot of work has been done to ease the business for both sellers and buyers. Experiment with many things, and see how your customers respond. E-commerce also evolves rapidly. It, therefore, pays off to keep an eye out for useful innovation from across the world.

    E-commerce businesses have been facilitating delivery of goods particularly during COVID-19 pandemic.

  • Find out reasons why you should venture into horticulture in 2022?

    The recent report of National Agricultural Export Development Board (NAEB) shows that Rwanda generated US$444.8 million (over Rwf447 billion) from agriculture in 2020/2021 fiscal year.

    Apart from tea and coffee, fruits and flowers are among businesses generating huge returns in the country. Of the horticultural produce exported within the region in 2020, vegetables came on top with 62.5% of total earnings while fruits accounted for 37.25%. At the global market, earnings from vegetables stood at 37.49% while fruits accounted for 62.75%.

    The figures reflect how agriculture presents huge opportunities with high returns and gives optimism that the country’s ambitions to promote agricultural exports are being achieved.

    The Government of Rwanda continues to facilitate cross border traders through implemented measures and agreements with partner countries.

    It is against this backdrop that Rwanda has signed trade agreements with member states of the Common Market for Eastern and Southern Africa (COMESA). The country also signed similar agreements countries from the European Union and East Africa among others.

    All these agreements are expected to remove barriers restricting farmers’ access to markets, improve their livelihoods and enhance their contribution to national economy as well.

    Considering the aforementioned agreements as well as high demand and profitability of horticultural produce, we thought it could be your turn to tap into available opportunities and become a millionaire.

    This article elaborates some areas of investments in horticulture that could make 2022, the beginning of a new era for a prosperous future.

    Passion Fruit

    Passion fruit is an ideal product to grow on Rwandan soil.

    Varieties grown in Rwanda are Passiflora edulis (Purple passion fruit) and Passiflora flavicarpa (Yellow passion fruit), Sweet passion fruit, Giant passion fruit, Banana passion fruit.

    Passiflora Edulis (Purple passion fruit) which grows between 6 to 8 months in Rwanda is the most appreciated on the European market.

    Demand for Passion fruit in the European market is estimated at about 375,300 tonnes per year, which translates to about $861 million every year.

    As per report released by ‘Manufacturing Africa report’ recently in 2022, the export of passion fruit to the EU can fetch a gross profit margin of 48%, assuming a wholesale price of US$4840 per tonne.

    This report also indicates that the transport costs to the EU is approximately US$1800/tonne if the exporters take advantage of Rwandair subsidized tariffs.

    Jackson Mugisha, the CEO of Jacks Business Group, a company that works with investors to cultivate Passion fruits, says that the fruit is highly demanded on the market and promising to generate high profit.

    “If you want to enter into the passion fruit business it is better to work with experienced companies/farmers that embraced best practices because it is more reliable,” he says.

    There are other cooperatives like ‘Coopedush’ which works with many farmers to promote and generate returns from passion fruit business.

    NAEB also says that Passion fruit is good crop promising to bring quick profit to the farmers.

    Passion fruits mainly grown in Gakenke, Rulindo, Gicumbi, Musanze and Burera districts.

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    Chia Seeds

    Chia seed is an organic product that has been farmed in Rwanda for the past four years. This is one of the few crops that a farmer grows with market assurance as farmers sign a contract with buyers before.

    Chia seeds became widely popular in Rwanda after Bertrand Nkurikiyimana from Akenes and Kernels started this project in Ngoma in 2022.

    The companies founded by Rwandan diaspora in Belgium and Zambia as an initiative to invest in homeland and contribute to national economy, Akenes and Kernels Ltd and Api organic Rwanda work with Rwandan farmers to grow the crop for exportation.

    As the leading exporters of chia seeds in Rwanda, they first sign contracts with farmers as potential buyers.

    One of the farmers who works closely with Akenes and Kernels, Fabrice Mukwiye said: “Chia seeds are profitable in a short period of time because their demand is high on the market.”

    Between 800kgs and 1200 kgs can be harvested on one hectare. One kilogram is costs Rwf 3000.

    They are used for various purposes prompting high demand in the European and Latin American market. Among the many benefits, Chia seeds helps with blood pressure and reduce the risks of heart diseases, to name a few.

    Currently Chia seeds are grown in Kirehe, Bugesera, Kayonza, Nyagatare and Rwamagana districts.

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    Chili/hot pepper

    Chili is in high demand on the European and Chinese market.

    Some of the varieties grown in Rwanda are the Rwandan bird eye chili, Red chili, Orange chili, Yellow chili and Habanero.

    According to the ‘Manufacture Africa report’, European demand for chilli is roughly 1.5 million tonnes per year, which translates to about US$ 2.7 billion, while China needs 78,500 tonnes at a value of US$56 million.

    The same report showed that the export of Fresh Chili to the EU can fetch a gross profit margin of 49%, assuming a wholesale price of US$ 4,360/tonne.

    The transport cost to the EU is approximately US$ 1,800/tonne if the exporters take advantage of RwandAir’s subsidized tariffs.

    Chili Farmers in Rwanda, reveal they can easily expect half a million Rwandan Francs per week for every 21 Acres of Land farmed.

    Some of small holder farmers are working with Gashora farms, the biggest Chili exporter in Rwanda that landed a deal to supply 50,000 tonnes of dried chili worth $100 million to China as local partners.

    As per NAEB’s annual report for 2019/20, chili was produced on 881.2 Ha at different sites of Rwabicuma, Muyanza, Musha, and different scattered individual farms located in Ndengo sector of Kayonza district and Kabare sector, Nyagatare, Kicukiro, Bugesera and Rusizi district.

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    Macadamia Nuts

    Macadamia presents a significant investment opportunity for export oriented investors servicing the global market.

    A single Macadamia tree bears fruit in 4-5 years, and the profit becomes higher as it gets bigger, one single tree can bear between 50-75kgs.

    A Rwandan Farmer that harvests 50-75kgs can expect the profit between Rwf17,500-26,000 in case a kilogram is sold at rwf350.

    According to NAEB, there are two processing firms in Rwanda namely; Norlega Macadamia Rwanda Limited and Rwanda Nut.

    Norlega Macadamia Rwanda Ltd supplies to local clients such as Hotels, supermarkets and RwandAir.

    This type of crop is highly demanded globally and mostly exported to Kenya, Japan and Turkey. A kilogram is generally sold at US$10-20.
    NAEB shows that Rwanda produces about 16,000 metric tonnes that generate US$30 million annually.

    This nut is currently grown in the Southern, Eastern provinces and the southern part of Northern Province.

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    French beans

    Fresh beans are a profitable crop for which there is a year-round demand. French beans from Rwanda are mainly exported to the United Kingdom, Belgium, France and Dubai.

    At least 10 tonnes can be harvested on one hectare and sold at Rwf500 per kg.

    NAEB says that processing of the French beans, including canning and freezing, has not yet started in Rwanda. This could be a good business idea and opportunity for investors.

    The report released in 2020 by a Netherland based firm named ‘Traide’ indicated that Rwanda exported 451,000 tonnes of French beans in 2018 that the export continues to grow exponentially.

    Gicumbi district in the Northern Province is the leading producer of French beans.

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  • Mobile Money Rwanda Ltd begins New Year with ‘Biva MoMotima’ campaign

    Since its inception in 2010, Mobile Money has evolved in the financial technology space in Rwanda and has transitioned from operating solely as a monetary sending and receiving channel to offering a myriad of digital financial solutions.

    MTSetting “Biva MoMotima” campaign in motion, MoMo Rwanda Ltd is spreading love through a total donation of Twenty-Five Million Rwandan Francs, that will go towards supporting community projects in all five Provinces in Rwanda, with a special focus on children affected by stunting. As a first of many “from the heart” initiatives to come, MoMo Rwanda Ltd is spreading the love through this campaign to the most vulnerable.

    Speaking at the launch of the “Biva MoMotima” campaign at Mobile Money Rwanda Ltd offices, Chantal Kagame, Mobile Money Rwanda Ltd Chief Executive Officer said: “In the busyness of everyday life, our customers have found unique ways to stay connected to their loved ones. We are pleased to see the role Mobile Money plays in maintaining connections during birthdays, weddings, among other special occasions or simply on regular days, whether through sending surprise gifts through MoMo or paying utility bills on *182# for someone else who is facing challenging times.

    It is transactions such as these, that show MoMo is more than just a digital financial platform, it represents heart-felt gestures. That’s why during this campaign, we want to share the love with those who need it most.”

    Over the years, Mobile Money Rwanda Ltd has introduced essential services and products such as payments (MoMoPay, Bill & Utility Payment, Taxes, Insurance, Transport, Bulk Payments), Bank services (push/pull, Mokash), local and international transfers, Open API to the public that made Rwandan lives a whole lot easier. This is reflected in the continuous exponential growth of MoMo services adoption on a year-on-year basis countrywide.

    During the Go Green Drive, Mitwa Ng’ambi, MTN Rwanda Chief Executive Officer highlighted “Every year, climate change continues to threaten us as individuals, as a country and globally. Being a global issue, we have a part to play in Last year alone, the number of 30-day Mobile Money subscribers grew to above 4 million and the number of transactions reached 939million contributing to Rwanda’s cashless agenda.

    “While we are proud of the solid performance of Mobile Money, we are truly excited that this campaign brings to life the heart of Mobile Money. We are here to brighten up lives and contribute to the sustainable growth of this country,” emphasised Kagame.

    About Mobile Money Rwanda Ltd

    Mobile Money Rwanda Ltd is MTN Rwanda’s FinTech subsidiary, established on 27th April 2021 to provide and manage Mobile Money services in Rwanda. The company has over 30,000 Mobile Money agents and 60,000 MoMoPay merchants across the country.

    The penetration of Mobile Money has seen a continuous rise with the enhancement of existing offerings such as MoMoPay, MTN m-Ticketing as a digital user-friendly ticketing solution, Tap&Go payments for bus services, Bill Payments, Bulk Payments, Electricity purchase, Payment of Government services, Bank Push & Pull, MoKash Loans & Savings, and more.

    MTN Rwanda Headquarters. Net Photo

  • EABC boss sheds light on outcomes of participation in 24th Rwanda International Trade Fair

    RITF has grown by leaps and bounds becoming a strategic platform through which major businesses from around the world have penetrated the Rwandan market. This is made possible through organizing Business to Business meetings as well as Business to Government meetings.

    The event mainly showcases products in various sectors such as ICT, banking and finance, agribusiness, arts and crafts, infrastructure, Automotive and general trading.

    The recent trade fair which took place from 9th to 30th December 2021 at Gikondo Expo Ground in Kicukiro District of Kigali City, attracted new participants including the East African Business Council (EABC) headquartered in Tanzania.

    Speaking to IGIHE; the Executive Director of the East African Business Council (EABC), John Bosco Kalisa has shed light on reasons that attracted the council’s participation and anticipated outcomes.

    Kalisa revealed that he has had plans to promote the council’s visibility through participation in different exhibitions held in EAC, which he hopes are being attained gradually.

    Kalisa was appointed the Executive Director in June this year. Following his appointment, the council has participated in three regional exhibitions including the ones held in Tanzania and Rwanda.

    “The participation helps me to make a step further towards fulfilling my pledge for citizens of the East African community. We also plan to attend more exhibitions in other EAC member states,” he said.

    Kalisa went on to explain that creating room for increased investments in one of EAC partner states EAC is part of the council’s mandate.

    The participation in exhibitions is also considered an opportunity to lure investors where it has started yielding good results. For instance, Kalisa explained, it has received different businesspeople interested to become EABC members that some of them have started filling forms preceding their admissions.

    “Many people miscomprehend EABC as the bloc for large businesses only which is not true. Small businesses are not excluded. Every willing trader is permitted to join. This is the kind of mobilization we have been carrying out at this expo,” he said.

    Kalisa further disclosed that the campaign in partnership with host countries has been fruitful evidenced through attracted new countries.

    “EABC has conducted mobilization in partnership with Rwanda’s Private Sector Federation. You have seen that this expo has attracted Mozambique, the democratic Republic of Congo, Kenya and Tanzania. Such sensitization is usually a result of joint efforts between EABC and the host country,” he underscored.

    EABC was established in 1997 with the mandate of representing and promoting the interests of the EAC business community, provide value-added services that enhance trade and competitiveness, and to participate actively and positively influence legal and regulatory formulation to improve the business environment.

    It also seeks to reduce trade barriers in the region.

    Commenting on his projections, Kalisa said that he has very challenging projections to take the council to greater heights and expressed optimism to have them achieved within his five-year tenure.

    “If God grants me more days of life, I intend to raise the intra trade within EAC from 15% to 40%. It is a hard task to achieve but I believe that God will give me strength to make it happen,” he stressed.

    The Executive Director of the East African Business Council (EABC), John Bosco Kalisa.The pavilion of DRC at the 24th RITF.Mozambique also participated in the exhibition held in Rwanda through join sensitization between EABC and Rwanda's PSF.

  • Equity Bank recognized as the leading Bank in Rwanda by The Africa Banker 2021

    The Bank of the Year Awards celebrates the best of global banking and are regarded as the industry standard for banking excellence. The 2021 edition highlights those institutions that have taken a lead over their peers in terms of performance, strategic initiatives and response to the COVID-19 pandemic. Equity Bank Rwanda was recognized for its solid commitment to the country’s small and medium-sized enterprise (SME) community during a challenging year for the country’s economy.

    In the period under review, Equity Bank Rwanda increased its Tier 1 capital by 27% from Rwf 36.2 Billion in 2019 to Rwf 46 Billion in 2020, assets grew by 25% from Rwf 276.1 Billion in 2019 to Rwf 345.3 Billion in 2020, and net profits by 20% to a double digit of Rwf 11.1 Billion from Rwf 9.2 Billion from the previous financial year. To demonstrate a healthy portfolio, Equity’s non-performing loan ratio reduced to 3.58% compared to 3.99% in 2019.

    According to The Banker, the 2021 edition of the awards set out to recognize institutions that have risen to the challenge and come through the worst of the COVID-19 pandemic stronger and more resilient. Banks have reacted quickly, changed their ways of working and how they deliver services to customers.

    Importantly, institutions have rethought their purpose and role in society, effectively supporting the business and financial interests of their customers when needed most.

    While acknowledging the win, Equity Bank Rwanda Managing Director, Hannington Namara said, “We are greatly honoured and humbled to receive this recognition of Bank of the Year Rwanda 2021 award by The Banker. The award is a clear demonstration of a bank that remains relevant even during the trying times. A testament of operating true to our commitment to provide inclusive financial services that transform livelihoods, give dignity, and expand opportunities for wealth creation.”

    The performance was mainly driven by strategic initiatives that were positively impactful to the society during the pandemic year.

    The Bank established partnerships with Enterprise Partner Solutions (ESP) and Mastercard Foundation in the creation of a COVID-19 Recovery and Resilience program which committed US$2.5 million to support small and medium enterprises (SMEs) in the tourism and hospitality sector being one of the hardest- hit sectors.

    This is in line with the business focus on being at the frontline in building the economy better and stronger. So far, the program has supported 120 SMEs in the two sectors both financially and technically at all stages of maturity, plus their value chains.

    The Bank further supported SME customers affected by the COVID-19 through loan restructures and signed a $10M guarantee agreement with African Guarantee Fund to cover 50% of all SMEs exposures that were restructured including new SME loans.

    This was in a bid to support the SMEs business to recover with resilience.

    Plans are also in place to partner with all UN organisations in Rwanda and other partners willing to work with the Bank to support customers recover. These include partnerships to support the young people through the Young Africa works program in deal Mastercard.

    To ensure seamless digital operations, and to boost its trade finance offering and in compliance with the Government’s law N° 63/2007 to stop any manual tendering, Equity got an off-the-shelf solution to automate the processes. This has shown a rise in compliance and more SMEs are using the platform. In addition, the Bank has created several trade finance products that target SME customers and retail markets.

    The Bank continues to lead in digital transformation journey through innovation.

    Equity Rwanda upgraded its Eazzy Suite, which include EazzyBanking App, Equity USSD *555#, EazzyNet, EazzyBiz, EazzyLoan and EazzyAPI that have delivered an unmatched increase in use over time. By end of 2020, 92% of all transactions were conducted outside brick and mortar. Leveraging off technology, local offerings are availed to a global setting through Diaspora Banking department to individuals working and living abroad.

    Through EazzyNet Online, EazzyBanking App and Fintech integration with International Money Transfer Operators (IMTOs) who include World Remit, Ria, Transfast, Terra, Hello Paisa, Wave, Small world, Money Gram, Western Union, Home Send, Thunes, Ping express, and PayPal. These enabled Diaspora remittances to rise by 378% in 2020 from Rwf 13Billion to Rwf 62Billions while commissions grew by 330% from Rwf 162Million to Rwf 697Million in the same period.

    The Bank envisages that the trends will continue to disrupt thus the strengthening of technology capabilities through increased investments in specialist human and technological resources to ensure cutting edge products and services.

    The Bank of the Year Awards 2021 by the Banker, a monthly international financial affairs publication owned by The Financial Times Ltd, is a continental awarding showpiece that recognizes and acknowledges excellence in the banking sector drawn from the world’s leading financial institutions. They are judged on their ability to deliver returns, gain strategic advantage, and serve their markets. In 2020, Equity Bank’s South Sudan, DRC and Rwanda subsidiaries emerged winners in the Bank of the year category.

    About Equity Bank Rwanda

    Equity Bank Rwanda began its operations in 2011 and is registered as a commercial bank by the National Bank of Rwanda. The Bank has its Head Office located in Kigali, with a foot-print of 15 branches and is supported by 3173 agents, 1861 merchants and a network of 22 ATMs.

    Equity Bank Rwanda is a subsidiary of Equity Group Holdings Plc, a financial services company listed at the Nairobi Securities Exchange, Uganda Securities Exchange, and Rwanda Stock Exchange. In addition to Equity Bank Rwanda, the Group has banking subsidiaries in, Kenya, South Sudan, Uganda, Tanzania, DRC, and a Commercial Representative Office in Ethiopia. It has other subsidiaries in investment banking, insurance, telecom, fintech and social impact investments.

    Equity Group is the largest bank in the region in assets of Kshs 1.2 trillion (USD 12 billion). It is also the biggest bank in deposits, market capitalization of USD 2billion and with a customer base of over 15 million customers. The Group has a footprint of 337 branches, 58,756 Agents, 34,941 Merchants, 691 ATMs and an extensive adoption of digital banking channel.

    The Banker Top 1000 World Banks 2021 ranked Equity Bank 754 overall in its global ranking, 62nd in soundness (Capital Assets to Assets ratio), 55th in terms of Profits on Capital and 20th on Return on Assets. The Banker’s Top 100 African Banks 2020 placed the Bank in position 7 overall among the top 10 Banks in Africa, 5th place on soundness, position 9 on growth performance, 8th on return on risk and position 6th in terms of profitability and on leverage category.

    In the same year, Moody’s gave the Bank a global rating of B2 with a negative outlook same as the sovereign rating of the Kenyan government due to the Bank’s strong brand recognition, solid liquidity buffers and resilient funding profile, established domestic franchise and extensive adoption of digital and alternative distribution channels. Equity Group Holdings Plc is regulated by the Central Bank of Kenya.

    Equity Bank has been recognized as the leading Bank in Rwanda by The Africa Banker 2021.

  • I&M Bank Rwanda registers Rwf 5.4 billion after tax profit

    Among others, the bank registered a profit after tax of Rwf5.4 billion, reflecting a 46% growth over last year.

    According to the lender’s management, the growth has been supported by increased net interest income which rose by 21% from the levels in 2020, closing the period at Rwf 20 billion.

    The operating income for the Bank increased to Rwf24 billion, a 15% increase year on year.

    Commenting on the financial results, Mr. Robin Bairstow, the CEO of I&M Bank (Rwanda) PLC said that the results highlight the bank’s efforts in improving digital infrastructure in line with its strategy and aspiration to be Rwanda’s leading financial partner for growth.

    “We will continue building state-of-the-art digital platforms and growing the MSME sector which significantly supports the Rwandan economy,” he noted.

    During the period under review, the Bank’s balance sheet and income metrics improved on the backdrop of a solid capital base and liquidity.

    The Bank’s asset base rose to Rwf 435 billion, reflecting a 4% year on year growth as a result of an increase in the loan book and investments in government securities.

    The Bank’s customer lending portfolio also grew by 6% to Rwf 217 billion in September 2021 (Rwf205 billion in September 2020).

    Besides, the quality of the loan book improved with the Non-Performing Loans (NPL) ratio of 3.6 %.

    The Bank closed the period with Rwf298 billion of customer’s deposits, and a loan-to-deposit ratio of 73%. The Liquidity coverage ratio stood at 415% as at end September 2021

    Among others, the Shareholder’s Equity of the Bank grew to Rwf 60 billion, up from Rwf 54 billion as at 31st December 2020.

    The Bank’s net fees and commission income also increased by 14% on the back of income from digital products and an increase in off balance sheet income.

    The Bank improved its cost-to-income ratio to 60% from 64% for the year before, while also maintaining a positive cost/income jaws (after impairment) of 11%.

    The total operating expenses for the Bank was at Rwf14 billion, which reflected a 6.7% year on year increase on account of increased investment in digitisation while bank’s loan impairment charges for the period stood at Rwf 1.5 billion, which is 20% lower year on year, in light of improved macroeconomic conditions and despite a challenging start of the year for all stakeholders.

    Commitment to creating value

    Commenting on the Bank’s commitment to create long term value to all the stakeholders, the CEO Mr. Bairstow said that underpinning performance is the lender’s commitment to being thereour customers and for the community it serves.

    “Throughout this pandemic period, we lent our full weight on safeguarding the lives and livelihoods of our staff through implementation of remote working, as well as conducting staff wellbeing and mental-health programs. For our customers, we created long term value by leading from the front in the fight against COVID-19 through moratoria, government supported lending and other support measures.

    Through the IFE grant, the bank has helped to retain over 1,900 jobs in 139 MSMEs,” he revealed.

    Continued investment in digital solutions

    Speaking on the Bank’s commitment to continuously support innovation through offering digital solutions to customers, Mr. Bairstow said: “We have significantly sustained our contribution in the financial sector over the years. We remain committed to diversifying our financial services and leveraging on existing opportunities to better serve the Rwandan population through investments and partnerships in new technologies.”

    He further stated that the bank’s efforts in supporting the growth of the MSME sector was recognized with the Product Innovation of the Year Gold Award at the Global Finance Awards 2021 organized by the SME Finance Forum in partnership with International Finance Corporation (IFC) for delivering outstanding products and services to our SME clients and segment.

    “Our MSME division has recorded a customer base growth of 65% over the last year. We will continue to make major investments in digital technology in line with the I&M Group strategy that places digitisation as a key growth accelerator,” he stressed.

    In Q4 the Bank plans to continue investing in digital products and services as well as supporting its customers so as to manage net interest income.

    It also seeks to continue applying cost management best practices to ensure that healthy margins are maintained.

    About I&M BANK (RWANDA) PLC

    Incorporated in 1963, I&M Bank (Rwanda) Plc. is the oldest Bank in Rwanda. It is today one of the leading players in the industry with a strong footprint across the country.

    The Bank, which is listed on the Rwanda Stock Exchange (RSE), is a subsidiary of I&M Group PLC, a leading regional financial services group in Eastern Africa. I&M Group PLC has other banking subsidiaries in Kenya, Tanzania and Uganda as well as a joint venture in Mauritius and is listed on the Nairobi Securities Exchange.

    I&M Group has a long history in banking and has established a wide network of correspondent banks across the globe and enjoys a strong relationship with leading international Development Financial Institutions.

    I&M Bank Rwanda headquarters.

  • Equity Group Holdings registers 85% growth in pre-tax profit

    Resilience in execution of an offensive and defensive strategy saw regional subsidiaries grow their Group contribution to deposits to 42% up from 40%, revenue to 37% up from 30% and profit before tax to 26% up from 21%. Agility saw the 27% growth in total funding deployed into public and private sectors resulting in 36% growth in lending.

    Diversification driven by a regional approach with operations in 6 countries helped in diversifying sovereign risks and a currency mix risk of 56.6% local currency and 43.4% foreign currency risk mitigating exchange and translation risks. An inclusive business model for all market segments and sectors of the economy and segments and class of the population demography helped to mitigate loan book quality and performance leading to an NPL of 8.9% compared to Kenya industry performance of 13.9% NPLs.

    The offensive growth strategy has seen a 23% growth in net loans and advances and a 62% growth in investment in Government securities resulting into a 29% growth in interest income. The growth in earning assets have been funded by a 48% growth in long-term funds of Kshs.104.8 billion up from Kshs.70.7 billion and a 27% growth in customer deposits of Kshs.875.7 billion up from Kshs.691 billion driving total assets growth of 27% to Kshs.1.184 trillion up from Kshs.933.9 billion.

    Higher quality non funded income grew faster at 29% to Kshs.31.4 billon up from Kshs.24.3 billion than net interest income which recorded a 23% growth to Kshs.48.5 billion up from Kshs.39.3 billion. FX-trading income grew by 40% to Kshs.5.6 billion up from Kshs.4 billion. E-commerce revenue grew to Kshs.953.5 million up from zero. Bond trading income increased to Kshs.2.6 billion up from Kshs.2.2 billion.

    The Group is increasingly shifting from its legacy brick and mortar model of fixed cost structure of branches and ATMs to variable cost, self-service model of client’s own electronic devices or third-party infrastructure. Out of the 975.1 million transactions processed for the 9 months of the year, only 30.1 million transactions or 3% of all transactions were handled at the legacy bank by branches and ATMs with the digital bank handling and processing 945 million transactions or 97% of all the transactions with the self-service customers’ own device mobile channel handling and processing 90% of digital transactions.

    “Increasing mobile internet and e-commerce are becoming the preferred channels of choice for payment processing and lifestyle fulfillment with 74% of customers opting for cashless transactions, “said Dr. Mwangi the Group CEO while releasing the results.

    Merchants digital payments ‘Pay with Equity” (PWE) transactions grew by 408% from 3.1 million transactions to 15.8 million transactions while the value of the transactions grew by 392% from Kshs.17.1 billion to 84.1 billion. Retail personal internet (Eazzy Net) transactions grew by 287% from 400,000 transactions to 1.5 million transactions with value transacted growing by 404% from Kshs.16.6 billion to Kshs.83.5 billion. Corporate internet banking transactions grew by 42% while the value of transaction grew by 77%. Eazzy App transactions grew by 82% while the volume transacted grew 153%. “Covid has acted as a tail wind to the adoption of digital banking making us transform into a Big Tech in the financial services sector” added Dr. Mwangi.

    The Group has continued to closely manage the COVID-19 accommodated loans of Khs.171 billion. Loans worth Kshs.122 billion have resumed repayment, Kshs.4 billion has been downgraded to NPL and provided for (Under stage 3) with Kshs.45 billion constituting 7% of the total outstanding gross loan book of Kshs.608 billion remaining under Covid-19 moratorium.

    “We are glad we accommodated our customers to adapt to the COVID-19 environment, to adjust, repurpose and retool their businesses to be fit for purpose in the new normal. This not only kept the lights of our economies on, but helped a lot of businesses survive, retain their employees, support their families and reduce transition of a health pandemic into a social an economic meltdown” added Dr. Mwangi.

    Close management of the loan book and strong customer relationship management saw improvement of the PAR (Portfolio at Risk) to 8.9% down from 10.8% with NPL (Non-performing loan) provision coverage improving to 91.2% up from 86% and a coverage of 104% with loan credit guarantee facilitation. The improvement in quality of the loan book and its management had a significant impact on the financial performance of the Group driven by reduction of cost of risk from 4.8% to 1.4% to record a 68% reduction of loan loss provisions to Kshs.4.6 billion down from Kshs.14.3 billion helped record a 3% decline in total operating expenses.

    The growth of Group total funding grew by 27% driven by growth in customer deposits by 27% up from Kshs.875.7 billion from Kshs.6.91 billion was matched with a slower pace of growth of loan book of 23% up to Kshs.559 billion from Kshs.453.9 billion. Liquidity ratios strengthened to 59.5% up from 55.7% as a result of increased investment in Government securities which grew by 62% to Kshs.361.3 billion up from Kshs.222.8 billion.
    “The strong liquidity position puts us in a pole position to take advantage of market opportunities while deployment into higher yielding asset class with a revenue growth opportunity and better yields and margins.

    Efficiency gains resulted in improved cos to asset ratios and cost to income ratio despite the lag in deployment of growth funds to high yielding assets. Best improvements were noted in the more mature subsidiaries of Kenya, Uganda and Rwanda.

    Efficiency gains enhanced Group return on Equity to 24% up from 16.9% while return on assets improved to 3.2% up from 2.5%.

    Equity BCDC in DRC continued to offer confidence of good investment decision. Deposits grew by 51%, assets by 47%, revenue by 94%, profit before tax 150%. Cost to asset ratio improved from 7.7% to 4.5% while return on Equity improved to 11.1% u from 10%. Giving us strong confidence in our DRC story. We continue to confront the challenges of our subsidiaries in Tanzania and South Sudan

    “We are releasing these results at a time that we have taken lessons from our business model of economic and social twin engine. We have confirmed that a shared value business model is economically viable and sustainable. Doing well can go hand in hand with doing good. Our corporate social arm, Equity Group Foundation has scaled its operations to reach a spend od US$513 million in social investment programs, reaching 37,000 secondary school Wings to Fly scholarships, 17,000 University scholarship under the Equity Leadership Program, 3,000 TVET scholarships and 700 Global university scholarships, while 46 Equity Afia clinics are now operational with 572,707 patients visits. To support global initiatives to combat climate change, we have planted 7.1 million trees and financed and distributed 303,000 clean energy products,” said Dr. Mwangi.

    “To help build back better and support the world’s focus on purpose we have scaled our financial inclusion programs reaching 2.3 million women and youth with an 11-week financial training programs. We have supported 2.24 million small scale farmers to convert into agri-businesses trained 317,000 MSMEs in entrepreneurship and accessed them Ksh.111.5 billion in credit facilities while offering our Group infrastructure to support disbursement of Kshs.92.7 billion in cash transfers to over 3.4 million households,” added Dr. Mwangi.

    Inspired by the work of the Equity Group Foundation and the success of the COVID-19 response programmes, where we contributed US$1.7 million to support public and faith based hospital with Personal Protection Equipment’s (PPEs) and accommodating our borrowers with principal plus interest repayment breaks of up to 3 years. We are launching an ambitious US$5 billion business and private sector COVID-19 recovery program.

    The audacious post Covid-19 recovery program entails supporting 5 million SMEs with loans up to Kshs.0.5 trillion to accelerate recovery and growth and growth post COVID-19 with a view of creating 25 million direct jobs and another 25 million indirect jobs. The initiative is in partnership with governments of the 6 countries we have operations in and will centre on promotion of cross border trade under the East African community and African Continental Free Trade Area protocols. The program has won the support of United Nations (UN) under the sustainable development goals template, Development Banks, Mastercard Foundation under our Young Africa Works partnership and the Private Sector business actors” added Dr. Mwangi.

    Dr. Mwangi the Group CEO has said that increasing mobile internet and e-commerce are becoming the preferred channels of choice for payment processing and lifestyle fulfillment with 74% of customers opting for cashless transactions.

  • Five Rwandan women making it big in small business

    Today we take a look back on the stock of different initiatives designed to support entrepreneurs and forge the way forward to foster their contribution to the society in different aspects.

    The African Management Institute (Rwanda) is one of the actors in the business ecosystem proud of enabling ambitious businesses across Africa to thrive, through practical tools and training.

    AMI Rwanda has worked with a range of businesses and organisations to support entrepreneurs and managers build and grow their businesses across Rwanda including Mastercard Foundation, Rwanda Development Board, The Rwandan Chamber of Women Entrepreneurs, RwandAir, Radisson Blu, The Rwandan Chamber of Young Entrepreneurs among others.

    Partnering with organisations such as Rwanda Girl Guides allows AMI to work with women-led businesses and support them on their journey to push boundaries, build industries and create jobs.

    Through the partnership, 487 female entrepreneurs from across the country have attended and completed AMI’s Business Survival Bootcamp programme. The bootcamp teaches participants how to adapt their business to the current challenges and connects them with a network of peers. Through the Rwanda Girl Guides Association partnership, AMI will train around 1,000 women-owned businesses.

    To date, women make up 43% of all participants in AMI’s Business Survival Bootcamp in partnership with the Mastercard Foundation, and the journey continues.

    Five of them have shared what inspires them and tipped aspiring entrepreneurs facing constraints occasioned by COVID-19 pandemic on the way to success.

    These include Pacifique, Vanessa, Nadine, Valentine and Claudine among others who participated in African Management Institute (AMI) programmes through an innovative partnership with the Rwanda Girl Guides Association.

    The beneficiaries have shared their experience and what being entrepreneurs means to them.

    Pacifique Igiraneza, Shop Owner in Kicukiro, Kigali

    For Pacifique Igiraneza, being an entrepreneur comes with a great sense of responsibility. She is determined to leave a mark in her community as she works hard to achieve her goals.

    “Do not give up. If you haven’t yet started your business, start with what you have, you will keep growing step by step,” says Igiraneza.

    Vanessa Umutesi, Isaro Ltd, Nyarugenge

    Vanessa Umutesi says that running owning business gives her a sense of purpose and courage. She dreams big and is happy with what she has achieved so far.

    “Don’t just sit back and be too afraid of running a business. What matters is the idea you have in mind. Work hard to achieve your goals and build a better future for yourself,” says Umutesi.

    Nadine Umwali, Poultry Farmer in Nyamagabe

    Nadine Umwali is a poultry farmer and proud that her business supports her family, community and her country. She is pleased with the progress her business has made and that young people have started to look up to her.

    “It’s good to be self-employed. Starting a business doesn’t require a lot of capital. All you need is a great idea. It is also important to take part in different business training programmes as they are not demanding and you learn a lot. I encourage you to be confident and start your own business,” says Nadine.

    Valentine Ishimwe, Clothes Wholesaler in Nyarugenge

    Ishimwe is proud that she can now rely on herself and is able to save money to invest in future projects.

    “Don’t be discouraged when your business isn’t going well. It’s part of the hustle. Business is like our daily lives, you may be happy today but sad tomorrow. Therefore, we have to be resilient and work hard,” says Valentine.

    Claudine Mukandayambaje, Copy Shop Owner, Karongi

    Mukandayambaje is a passionate entrepreneur who celebrates her wins as they come and is eager to continue working hard to grow her business.

    “Keep on doing good work because it makes a difference in the community. Don’t ever give up even if you face losses, that’s just how business works. The best is yet to come,” says Mukandayambaje.

    The African Management Institute uses a unique approach to equip entrepreneurs with tools to build their businesses, help companies train their teams and run work readiness programmes for young people starting their careers. Online resources are combined with hands-on experience to support individuals participating in AMI’s programmes.

    When COVID-19 hit in March last year, our programmes at AMI shifted from a blended model to fully virtual, and focused on supporting as many MSMEs as possible, leveraging our existing virtual engagement experience and robust online learning platform and content.

    We focused on supporting business owners not just to thrive, but to survive and keep their doors open.

    Do you want to celebrate Women Entrepreneurs in Rwanda with us? Here are a few actions you can take:

    ● If you are the owner of an MSME in Rwanda – learn more about our Business Survival Bootcamp and Survive To Thrive Programme to take immediate action to protect your business’ resilience through fundamental business skills.

    ● If you’re a former participant or current AMI participant in one of our programmes, reach out to other entrepreneurs to share this article and motivate them to take the next steps to build resilience and skills for their businesses.

    ● If you’re an organisation or institution that wants to scale your impact and reach more MSMEs, contact our partnerships team at rwanda@africanmanagers.org

    ● Follow AMI Rwanda on social media (Twitter, Facebook, Instagram) or call our helpline on 1000 and learn more about our latest updates.

    Ishimwe is able to save money for future projects.Nadine Umwali is a poultry farmer.Mukandayambaje is a passionate entrepreneur.Pacifique Igiraneza says that being an entrepreneur comes with a great sense of responsibility.Vanessa Umutesi says that running own business gives her a sense of purpose and courage.