In a strategic move, Unguka Bank PLC has announced the acquisition of a substantial 90 per cent of its shareholding by LOLC Mauritius Holdings Limited (LOLC Mauritius) which is a subsidiary of LOLC Holdings PLC.
This landmark transaction, having received approval from the National Bank of Rwanda (BNR), marks a significant advancement in reshaping Unguka Bank's position in the Rwandan financial landscape. The acquisition is effective from the 14th of September 2023, emphasizing the forward-looking approach embraced by both LOLC and Unguka Bank.
LOLC Holdings PLC is a multinational financial conglomerate with a presence in 25 countries across Africa and Asia. LOLC has been at the forefront of providing inclusive financial services product offerings to its customers across the geographies that it operates in, thereby enabling its clients to meet their aspirations.
In addition to financial services, the diversified operations of the LOLC Group encompass manufacturing and trading, leisure, agriculture and plantations, technology, research and innovation, construction, and strategic investments.
The Group’s operations span across Kenya, Tanzania, Zambia, Zimbabwe, Malawi, Nigeria, Egypt, Sierra Leonne and Mauritius in Africa in addition to Rwanda while being poised to commence operations in Ghana and The Democratic Republic of Congo. In Asia, the Group has a presence in Singapore, Sri Lanka, Pakistan, Indonesia, Cambodia, Myanmar, Philippines, Maldives, Tajikistan, Kyrgyzstan, and Kazakstan.
As of March 31, 2023, LOLC Holdings PLC boasts total assets amounting to USD 4.8 billion, further cementing its position as a prominent player in the Micro and SME financial services industry across Asia and Africa. The conglomerate's proactive expansion throughout Asia and Africa highlights its unwavering dedication to fostering economic development within underserved communities.
Unguka Bank, incorporated in the Republic of Rwanda on January 30th, 2005, initially emerged as a Microfinance institution. The bank, originating from a collaboration of 214 Rwandan shareholders, commenced operations with a capital of FRW 321.1 million. Despite its humble beginnings with just two branches (Remera and Nyabugogo), the bank has flourished, operating through 14 branches nationwide.
Over the years, Unguka Bank has experienced comprehensive growth, with its share capital reaching FRW 5.1 billion and total assets scaling to FRW 32.2 billion by the end of June 2023. Furthermore, the bank recorded a net profit of FRW 728 million at the close of 2022.
This acquisition holds particular significance for Unguka Bank PLC, a pivotal participant in Rwanda's microfinance sector. As a well-established institution, Unguka Bank has solidified its role as an institution of financial excellence for the country's Individuals, and micro, small and medium enterprises (MSMEs).
The acquisition marks the dawn of a new era for Unguka Bank customers and other stakeholders, which will be , characterized by recapitalization, the infusion of best-in-class business practices, and an extensive overhaul of its IT systems and digital banking channels. By aligning its operations with the National vision for the MSME and Financial sector, Unguka Bank is poised to elevate its service delivery and augment its impact on Rwanda's economic landscape.
Building upon LOLC's success as an MSME and microfinance operator, coupled with its commitment to customer protection, risk management, and digital innovation, the conglomerate emerges as a catalyst for transformative change. As LOLC extends its footprint worldwide, its mission to empower individuals and MSMEs harmonizes seamlessly with the economic aspirations of its host countries. This acquisition stands for more than a mere change in ownership; it signifies a dedication to shaping the future of financial services in Rwanda.
Unguka Bank PLC extends its heartfelt gratitude to its esteemed customers, shareholders, dedicated staff, regulators, and all other valued stakeholders who have placed their unwavering trust in our institution for the last 18 years. This exciting new partnership with LOLC marks a pivotal juncture in our journey, opening doors to even greater horizons. We express our sincere appreciation for your steadfast support, and we are committed to reciprocating this trust with enhanced services and opportunities.
As we move forward with this transformative venture, Unguka Bank embraces the promise of a brighter future for all. We are confident that your continued faith in us will remain our guiding force in the times to come. With this new partnership, we extend an open invitation to all – customers, collaborators, and communities – to join hands as we strive to foster growth and prosperity together. This is not just a change in ownership; it is a testament to our dedication to shaping a more dynamic and inclusive landscape for financial services in Rwanda. Thank you for your trust, and we look forward to a future that we build hand in hand.