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

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

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

4. 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

5. 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

6. 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

7. 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

8. 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

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

10. 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%.

11. 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

12. 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

13. 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)

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

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

16. 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.

17. Rwanda Business Seminar
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