Behind Rwanda’ s socio-economic development is a steady and sound financial sector. It is one of the few countries in the world that has sustained fast economic growth, vigorous reductions in poverty, and a narrowing of inequality.
The financial sector has been on the rise in recent years, and its steadiness, structure, and competence ameliorated significantly due to enforcement regulations by the Central Bank.
Key to this success has been numerous measures taken by the government to manage debt effectively and enforce monetary stability by maintaining a flexible yet stable exchange rate. In parallel, the National Bank of Rwanda has fortified and stabilised the financial sector while helping to push for reforms that catch the attention of foreign investment.
Rwanda’ s financial sector has made great strides towards becoming modern. The sector is stable, well capitalised, profitable and liquid. It consists of a wide and growing array of institutions- Banks, microfinance institutions, savings and credit cooperatives( SACCOs), insurance companies, and pension funds, and is becoming increasingly diversified.
In terms of assets, the banking sector continues to take over the financial system with 66.9 percent, followed by the pension, insurance, and microfinance sectors with 17.1 percent, 9.7 percent, and 6.3 respectively.
Rwanda’ s immediate priorities are to increase long-term savings and increase credit to the private sector to 30 percent of GDP. This will be attained by enhancing savings mobilisation, particularly long-term savings and mobilisation of long-term capital for investment.
The government has started to issue regular bonds to deepen the capital market and lengthen the yield curve, with the longest maturity today being ten years.
There are currently more than 17 licensed commercial banks in Rwanda as well as a number of microfinance institutions and rural savings and credit cooperatives. The sector is overseen by the National Bank of Rwanda.
The banking sector has seen tremendous growth over the past five years and seen
There are currently more than 17 licensed commercial banks in Rwanda as well as a number of microfinance institutions and rural savings and credit cooperatives. The sector is overseen by the National Bank of Rwanda. increased participation by multinational banks as well. Key players in the banking sector are Access Bank, Banque Commerciale du Rwanda, Banque de Kigali, Banque Populaire du Rwanda, Ecobank, and KCB. Key players in the insurance subsector are AAR, COGEAR, CORAR, RAMA, MMI, SONARWA, and SORA.
Needless to say, Rwanda has been described as an ideal investment destination for financial services.
Opportunities
• Commercial bank products and services particularly in rural areas
• Competitive loan facilities
• Agricultural products / services financing
• Development banks especially to finance SMEs
• Microfinance opportunities
• Mortgage financing
• Investment banking services
• Training of financial sector professionals
• Insurance services, re-insurance
• Equity and bonds purchases at Rwanda ' s capital market
• Provision of life policies and other innovative insurance products such as agriculture and medical schemes
• Special financing solutions i. e. private equity funds
• Institutional and human capacity building in the capital and financial markets. •
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