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Co-operative Bank Rwanda

From Wikipedia, the free encyclopedia
Co-operative Bank Rwanda
IndustryFinancial services
Founded2018 (expected)
HeadquartersKigali, Rwanda
ProductsLoans, Savings, Investments

Co-operative Bank Rwanda or Rwanda Co-operative Bank is a proposed commercial bank in Rwanda. It is expected to broaden "financial inclusion" in the country, working through the Umurenge Saccos and increasing financial services in rural areas.[1]

Overview

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In July 2014, approximately 2,500 members of the Rwanda Cooperative Agency (RCA) met Paul Kagame, the President of Rwanda during an event called “Meet The President”. At that event, held in Kigali, the country's capital city, the president instructed the minister of trade and industry to establish a cooperative bank, in the shortest time possible.[2]

Under guidelines by the National Bank of Rwanda, the minimum capital required is Rwf5 billion (US$6 million).[1][2] There are approximately 8,000 cooperatives (community cooperatives) in Rwanda, according to the RCA. The cooperatives are prepared to provide 60% of the needed start up capital.[2]

Also, there are an estimated 480 Saving and Credit Cooperatives, (Umurenge SACCOs) in the country.[2] These Saccos are being courted to provide the remaining 40% of the required start-up capital. Also, the Saccos need to be linked to a common computer system, in order to serve as branches of the proposed bank. When the bank becomes operational in 2018, as expected, its lending rates are planned to be lower than the commercial banks.[2][3]

Ownership

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While the ownership details are being worked out, the owners will include (a) Unmurenge Saccos (b) other Rwanda cooperatives (c) other Rwanda entities. The Rwanda government requires that all shareholders in the bank be Rwandan.[2][4]

Branches

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It is expected that some of the offices of the 480 Saccos in the country will become branches of the proposed bank, after the completion of computerization and linking of their operations.[5]

See also

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References

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  1. ^ a b RCA (2013). "Cooperative bank needs Rwf 5bn to start". Kigali: Rwanda Cooperative Agency (RCA). Archived from the original on 4 August 2017. Retrieved 18 July 2017.
  2. ^ a b c d e f Ngabonziza, Dan (22 May 2017). "Rwanda Revises Saccos System to Allow Cooperative Bank Kick Off". Kigali: KT Press Rwanda. Retrieved 18 July 2017.
  3. ^ MINICOM (27 January 2015). "Plan to establish a co-operative bank to merge SACCOs is near completion". Kigali: Rwanda Ministry of Trade & Industry (MINICOM). Archived from the original on 2 August 2017. Retrieved 18 July 2017.
  4. ^ Mugisha, Stevenson (18 August 2016). "Rwanda: New Co-operative Bank to Incorporate SACCOs". Rwanda Focus via AllAfrica.com. Kigali. Archived from the original on 23 September 2016. Retrieved 18 July 2017.
  5. ^ Kwibuka, Eugene (23 January 2017). "Cooperative bank to be operational this year: Government". New Times (Rwanda). Kigali. Retrieved 18 July 2017.
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