Rwanda Development Bank capital hits Frw7b

Rwanda Development Bank has raised its share capital to Frw7 billion from Frw5 billion, paving way for the bank to increase its lending operations and to mobilise more resources.

Rwanda Development Bank has raised its share capital to Frw7 billion from Frw5 billion, paving way for the bank to increase its lending operations and to mobilise more resources.

This share capital increase, positions the bank among the few lending institutions in the country with such huge capital.

“Once you have a good capital base, it’s easy to mobilise resources and this is one of the core reason to increase our lending operations,” Théogen Turatsinze, director general of BRD said.

The capital will enable the bank finance its priority areas in the economy, especially coffee and tea.

This year BRD is to fund rural electrification projects in three regions in the country including the Eastern, Northern and Southern.

“The bank is now armed to take more risks in its investments,” Turatsinze said.

The bank’s portfolio has more than doubled in the last three years from Frw9b to Frw26b, as of December 2007, the turnover increased to Frw800 from Frw600m in 2006.

Turatsinze said BDR’s financing is demand driven in priority sectors of the economy including agriculture, ICT, tourism, education, export, water, health and energy.

In the last two years BRD injected Frw3.5b in construction of schools and hostels, 50 percent of this money was spent in rural areas.

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