Blue opens in Rwanda

Promises to lend workers Blue Financial Services, a South African Microfinance Institution (MFI) has opened a branch in Kigali as part of its expansion drive on the African continent. Rwanda became the 12th African country, the MFI has set foot, after recently opening in Swaziland.

Thursday, August 28, 2008
Vincent Karega.

Promises to lend workers

Blue Financial Services, a South African Microfinance Institution (MFI) has opened a branch in Kigali as part of its expansion drive on the African continent. Rwanda became the 12th African country, the MFI has set foot, after recently opening in Swaziland.

In Rwanda, the MFI announced that it plans to lend  $600,000 (Frw329.1 m) to be workers and $100,000 (Frw 54.9m) to be invested in infrastructure development. National Bank of Rwanda (BNR) granted the MFI a licence to operate as a non-deposit taking institution.

Management of Blue is targeting to open 8 branches countrywide before the end of 2009. The amount invested in the Rwanda is part of the $10m (Frw5.5 b) Blue Finance Services acquired from Overseas Private Investment corporation (OPIC).

Grant Chittenden, Chief Finance Officer of Blue Financial Services said they were attracted to Rwanda because of the political stability, fast growing financial sector and reforms in doing business.

Vincent Karega, the State Minister for Industry and Investment Promotion, applauded Blues’ entry into the Rwandan market, saying the move would increase competition in MFIs.

The minister also added that Small and Medium Enterprises would access capital to finance their investments.

Morné Reiders, Blue Investor Relations Manger said, they are currently negotiating to benefit from the $27 m (Frw14.8 b) OPIC has set to invest in Africa.

This would help the company up its investment stake in other three African nations this year. Equity investors in Blue include International Finance Cooperation, American Insurance Group (AIG), invesetec, STANLIB and ECP.

Blue, founded in 2001, currently has over 173 branches and 1790 employees in 12 African countries.

As of February 29, 2008, Blue R1.1 b (Frw77.6 b), outstanding loan of R482 m (Frw33.9 b)—total assets. 

The company is also listed on the South African JSE securities exchange and recently cross-listed on Botswana Stock Exchange.

Reiders said, the company will decide cross-listing on either the Uganda securities exchange, Kenya stock exchange Tanzania stock exchange or the Rwandan bourse in three years time.

Ends