Rwanda Business Seminar Rwanda’s Financial sector Paul van Apeldoorn Chief Commercial Offcier Banque Populaire du Rwanda Wassenaar, 23 September 2011

Content Rwanda Business Seminar Presentation About BPR BPR – Rabobank partnership Overview of the Rwandan Financial Sector Conclusion

About BPR 18 branches 109 sub-branches 61 outlets 1 600 staff

About BPR 1975: The first “Banque Populaire” is founded 1986: The various autonomous Banques populaires formed a:Union des Banques Populaires du Rwanda 2008, UBPR Turned into a full licensed commercial bank: Banque Populaire du Rwanda – BPR

BPR – RABOBANK Partnership July 2008, RABOBANK acquired a 35% stake in BPR becoming a strategic partner: Technical assistance program Management Services International Transfer Partnership Product Development Agro Cultural Value Chain Projects

BPR – RABOBANK Partnership September 2011 1,4 million customers A solid retail, SME and Corporate portfolio A widespread branch network State of the art mobile banking channel Growing ATM network Developed product portfolio for all segments F&A knowledge and project center Best financial institute and investor of Rwanda

BPR – Rabobank Partnership Rationale for Rabobank to invest in Rwanda Why Rwanda? Economy strongly agricultural based Stable environment Clear governmental vision Regional Focus (East Africa) Why BPR? Cooperative Background Agricultural Focus Natural Habitat rural and urban Customer base

Composition of the Financial sector in Rwanda 8 Licensed commercial banks Banque Populaire du Rwanda Banque Commerciale du Rwanda Bank of Kigali Kenya Commercial bank 1 Development Bank (BRD) Microfinance banks 122 Microfinance institutions Savings and credit schemes 8 Insurance companies 1 Public Pension fund A capital market 8

Foreign investments into the sector BPR 2004 2004 2005 2006 2007 2008 2009 2010 2011 Cogebanque

The Rwandan Banking sector at a glance Professionalizing with the entrance of reputable regional and international players. International: Rabobank. Regional: KCB, Equity, Ecobank Financially sound looking at key indicators Commercial banks indicators 2010 MLN USD Growth /2009 Balance sheet 1.214 25.9% Deposits 900 27.4% Net loans and advances 543 12.9% Profit after tax 22 mln USD in 2010 from 6,3 mln USD in 2010 Capital adequacy ratio 22.3% compared to the minimum requirement of 15%.

The Rwandan Banking sector at a glance (2) Improving Financial Results Ratio of liquid assets to total assets 55.6% Non-performing loans: 11.3% Increasing access to banking services: opening new bank branches: Introduction of mobile banking Extensive rollout of ATMs

Market Issues Limited interbank money market, however enough market liquidity to ensure loan growth; Limited currency hedge possibility, however stable USD / RWF exchange rate (EUR more volatile due to USD / EUR fluctuation); Internal market limited growth potential / cash flow expansion, however EAC partnership increases market size and Rwanda still in many cases net importer Staff quality, however improvement plans in place but that is a lengthy process Lending Interest Rate high compared to matured markets Quality of the loan portfolio Cost of funding Inflation

Product Portfolio Rwandan financial sectors offers a professional corporate product portfolio: Automated domestic transfers Automated and swift international transfers Long term Investment Loans (RWF / USD / EUR) Working Capital Facilities International Trade Financing Full Fledged Current Account Offering (RWF / USD / EUR / GBP)

Conclusion The Rwandan Investment Climate Challenges: Land locked Natural Resources Quality of skilled labor Purchasing power Internal market Commercial legal system needs development

Conclusion The Rwandan Investment Climate opportunities: Stable environment EAC membership Upwards market potential Financial support possibilities (Subsidy / Grant / Guarantees) Labor costs Climate Agricultural perspective

Conclusion The Rwandan Investment Climate The financial sector in Rwanda has reached a stage of development allowing it to support international and national investments and business developments Partnership with strong International Financial Institutes such as Rabobank (Triple A) secures professional international transactional services and trade finance execution.

Rwanda Business Seminar Thank you for your attention