Rwanda Development Bank

admin

Development Bank of Rwanda is commonly known by its French name Banque Rwandaise de Développement (BRD) and it is a development bank in Rwanda. It is one of the banks licensed by the National Bank of Rwanda, the national banking regulator.

Overview

The bank began its operations in 1967 as a long-term financial services provider with the financing geared towards national development projects. The results of April 2011 show that the total asset valuation of the bank was approximately US$122 million (RWF: 72 billion) with shareholders equity of approximately US$42.3 million (RWF: 25 billion)

History

Development Bank of Rwanda “BRD” is a public company with a share capital of RWF: 7,808,931,000 registered at the Office of the Registrar General whose company code is n° 1000003547. BRD was incorporated on 5 August 1967. The period between 1967 and 1987 saw the institution invest heavily in pick-up trucks, finance and the finance of grinding mills.

Between 1988 and 1994, the bank expanded its services to the provision of loans in agro-industries, particularly tea and manufacturing, artisans and micro-enterprises. Furthermore, between 1995 and 2000, the bank underwent re-structuring, re-organization and re-capitalization, to repair the damage incurred during the 1994 Rwanda Genocide.

Since 2001, the bank has increased its focus on financing rural development projects, since 90% of the Rwandan population is rural.

On October 16, 2014, BRD announced that it had completed its internal reorganization. This process included spinning off its commercial banking business into a new subsidiary that would be sold off to Atlas Mara Co-Nvest Limited. This subsidiary was incorporated to run the commercial loan portfolio, BRD’s Insurance brokerage firm and a piece of a commercial plot adjacent to BRD’s Kigali headquarters. As at October 18, 2014, the newly formed Commercial Bank was yet to be given an official name and was awaiting a commercial banking license from the National Bank of Rwanda.

Acquisition

In April 2011, BRD got a 100% controlling interest in Housing Bank of Rwanda. BRD is in the process of absorbing the assets, liabilities and staff of HBR. After re-organization, BRD has commenced retail banking operations. In addition, it has begun underwriting mortgage products originated by other commercial banks in the country, in an attempt to increase home ownership in Rwanda.

At the time of takeover, HBR’s total assets were valued at about US$23.7 million (RWF: 14 billion).

Subsidiaries

The bank has two subsidiaries, owned 100%, namely:

BRD Development Fund – A development fund

Housing Bank of Rwanda – Development Bank of Rwanda took full control in April 2011 

Ownership

The bank’s stock is owned by the following sovereign and corporate entities:

Development Bank of Rwanda Stock Ownership’ Rank Name of Owner

1          Government of Rwanda

2       Rwanda Public Enterprises

3     Private Institutions in Rwanda

4      Agence française de développement (AFD)

5      German Investment Corporation (DEG)

6     Netherlands Development Finance Company (FMO)

7     Administration Générale de la Coopération au Développement of Belgium (AGCD)

8    Bank of Tokyo

Sectors of Operation

The sectors include the following:

Agriculture & livestock;

Manufacturing industry;

Education and Health care;

Energy and Water;

Hotel and Tourism;

ICT;

Transport and related facilities;

Exports;

Real Estate

Micro-finance

Products & Facilities

The Development Bank of Rwanda put great products in front of their customers. These Products are:

Investment Financing

Loans;

Leasing;

Equity;

Refinancing;

Capacity Building;

Advisory

Branches

To bring services closer to the people, the bank maintains branches at the following locations:

Main Branch – Kigali

Kayonza Branch – Kayonza, Eastern Rwanda

Musanze Branch – Musanze, Northern Rwanda

Nyanza Branch – Huye, Southern Rwanda

Governance

As of August 2015, the following constitute the Board of Directors of the bank:

Francis Mugisha – Chairman of the Board

Athanase Rutabingwa – Director

Agnes Kanyangeyo – Director

Eric Rwigamba – Director

Antonina Kayitesi Rutembesa – Director

De Wandel Erwin – Director

Cyrille Hategekimana – Director

John Bosco Sebabi – Director

The following are members of the Senior Management Team at Development Bank of Rwanda, as of August, 2013.

Alex Kanyankole – Chief Executive Officer

Benjamin Manzi – Director of Investments

Emmanuel Murangayisa – Director of Finance

Juvenal Kalema – Director of Credit Administration

Peter Rwambala – Director of Corporate Affairs

Jean Claude Iliboneye – Director of Operations

Hector Mutijima – Director of Risk and Compliance

Innocent Bulindi – CEO of BRD Development Fund (BDF)