Rwanda Finance Services Sector

Rwanda Finance Services Sector is still at its infancy and for that matter , any investment in Banking , Micro finance or any other monetary institution is very profitable.

Overview of Finance Sector

Investmernt Opportunities

• $200M of equity capital supporting $1B in total assets

• Estimated 12% of the population had a bank account in 2007

• 20% sector growth rate in 5 years driven by:

GoR enforcement of banks meeting international banking standards

The “Financial Sector Development Program” which increased the minimum capital requirement from $2M to $8M and requires banks to prove they are qualified before receiving a charter.

• Policy, strategy and incentives in place to develop capital markets.

Interest rates in line with the region

Key players

• The banking sector is comprised of eight commercial banks, one primary microfinance bank, one discount house, one development bank and one mortgage bank.

Commercial banks represent 76% of the economy’s total financing while micro finance institutions serve 88% of depositors and 90% of borrowers

The microfinance sub sector consists of more than 50 relatively small institutions where 11% of Rwandan assets and 3.5% of the population hold accounts

The 3 largest local banks are:

• Banque de Kigali (BK) (100% govt. owned)

• Banque Populaire du Rwanda (BPR) (98% private)

• Banque Commercial du Rwanda (BCR) (80% private)

• Ecobank, Access Bank and Kenya Commercial Bank (KCB) are among the international banks with a presence in Rwanda.

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