CBA came as the 16th commercial bank on the local market and becomes the 11th owned foreign-owned bank in Rwanda.
At the end of 2016, CBA had got approval to operate in Rwanda as a micro-finance bank.
With headquarters in Nairobi, Kenya and 56 years of experience in financial sector, the bank operates in East African countries including Uganda, Tanzania, Kenya and Rwanda. It also operates in Ivory Coast. The bank’s total asset is $2.5 billion as by December 2017.
While launching the bank’s activities in Rwanda on Monday, CBA Group Managing Director, Desterio A. Oyatsi expressed great optimism on Rwandan market, as a country that has significantly economically developed and raised the Gross Domestic Product (GDP) by 7.2% from 2000 to 2017.
“That is why we observed long-term economic stability and we decided to invest in Rwanda. Until today, we have invested $9.5 million in Rwanda and will increase as we continue to expand our activities,” he said.
He said that the bank targets to use ICT services for all clients, with the ambition to dominate every market of the country they operate from.
In November 2012, CBA in partnership with Safaricom introduced M-Shwari, a programme which facilitated many clients in terms of saving and credit services in Kenya. The similar programme dubbed M-Pawa was introduced in Tanzania in partnership with Vodacom. Also the same programme was introduced in Ivory Coast.
“In 2016, we partnered with MTN in Uganda and launched MoKash which currently has over three million subscribers. In February last year, we extended our partnership with MTN and launched MoKash in Rwanda. We have reached a remarkable progress as we have 700,000 subscribers,” Oyatsi explained.
He said that they are committed to partner with Rwanda to achieve her goals. CBA investment in the country is in line with their targets to become the leading financial institution in Africa.
Central Bank Governor, John Rwangombwa said that there are opportunities on Rwandan market as there are a number of people who do not access bank services.
“CBA entered the market when the country committed to take financial services closer to people. As the 2016 financial scope shows, 89% of populations have access to financial services, 68% embraced reliable financial services, but, only 26% means 1.5 million people use bank services,” he explained.
The Minister of Finance and Economic Planning, Amb. Claver Gatete said that the commencement of CBA in Rwanda is a significant milestone in country’s financial sector.
“This event is also of great significance in the integration of the East African Community,” he said.
He said that the Government of Rwanda adopted Vision 2020 with the ultimate goal of transforming the country into a middle- income nation.
“In light of global shocks characterized by volatile commodity prices and financial market volatility resulting in massive capital outflows Africa needs strong and sound financial institutions to achieve its development agenda. The role of a developed financial sector towards economic growth and development is vital. The financial sector mobilizes savings and allocates credit across other sectors that are needed by private sector player,” he explained.
He said a developed financial sector provides not only payment services, but also enables firms and households to cope with economic uncertainties by hedging, pooling, sharing and pricing risks.
The event was also attended by Kenya’s Minister of Foreign Affairs and International Trade, Monica Juma who is in Rwanda for the African Union Summit.
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