BPR steps up financing for key sectors as Musanze redevelopment gathers pace

BPR Bank Rwanda is set to increase its focus on financing agriculture, industry and hospitality in Musanze as the district pushes ahead with major urban and economic development projects. The bank identified the three sectors as key areas of growth in Musanze during a customer engagement held in the district on October 1, where it sought feedback from clients and local leaders on their development priorities. Patience Mutesi, Managing Director of BPR Bank Rwanda, said the consultations are helping the bank shape its next three-year strategy, as its current Transform Today Together strategy comes to an end this year. “In Musanze, we conducted an analysis to identify sectors that are developing. Agriculture is one of them, and we are committed to increasing lending to agriculture,” Mutesi said. She added that the bank also identified industry, particularly because of the industrial park in Musanze, as well as hospitality, as areas it intends to focus on over the next three years. ALSO READ: BPR Bank expects sustained growth after 35% profit jump driven by lending expansion Musanze redevelopment gathers pace The engagement comes as Musanze advances an ambitious redevelopment programme, with 47 buildings expected to be constructed by 2029 under the third phase of the town's redevelopment. Theonas Tugengwanayo, president of the committee responsible for the redevelopment of Musanze town, said BPR has already financed about Rwf15 billion worth of projects in the town. “BPR has played an important role because they organised this event, and that is not all. They previously mentioned the Rwf15 billion they have financed for the town,” he said. ALSO READ: 50 Forward: The story of BPR Bank’s brand transformation Musanze has completed around 70 buildings since the redevelopment programme began nearly a decade ago, according to Tugengwanayo. He said none of the completed buildings had been auctioned, describing this as a positive indicator for the town's redevelopment. Tugengwanayo observed that continued engagement between banks, the private sector and local authorities is important in ensuring that financing responds to the needs of investors. He cited changes in the valuation of land used as collateral as one example of how discussions between businesses and financial institutions can lead to changes that support investment. Meanwhile, Northern Province Governor Maurice Mugabowagahunde said Musanze is being positioned as a hub for tourism, agriculture and education. The province has identified 60 projects, including commercial buildings, hotels and a bus terminal, some of which have already started and others that authorities want accelerated before 2029. “All these projects need support. They need BPR to stay close to us, both through financing and through helping us assess and develop the projects,” Mugabowagahunde said. District seeks investment to drive growth Musanze District Mayor Claudien Nsengimana said the district's development ambitions require significant investment from financial institutions and the private sector. He said the district is targeting 80,000 jobs as part of the national target of creating 1.2 million jobs under NST2, which will conclude by 209. The mayor also highlighted the Musanze Industrial Park, saying the district needs more investment in manufacturing, while farmers need access to technology and financing to improve productivity. “We have lost perhaps 50 per cent of our potential production because we are not sufficiently using technology, yet there are ways we can improve agriculture through investment,” Nsengimana said. BPR's engagement with clients comes as the bank's financial capacity has expanded following its partnership with KCB. ALSO READ: BPR at 50: New loan products unveiled, commitment to financial inclusion reaffirmed Mutesi said BPR can now provide a single customer with up to Rwf52 billion based on its balance sheet, up from about Rwf25.8 billion in 2023. She said the increased capacity enables the bank to support larger projects while its customer engagements provide an opportunity to understand challenges faced by businesses. Bank seeks closer ties with customers The bank began the customer engagement series to listen to clients, appreciate their partnership and discuss its vision for the future. Mutesi said open communication and trust are central to the relationship between BPR and its customers. She recalled that during the 2023 merger between BPR and KCB, customers raised concerns including challenges related to loans and the availability of agents. According to Mutesi, the bank used the feedback to inform changes to its strategy and services. Musanze engagement is part of a wider series of customer meetings running from October 1 to November 6, aimed at gathering customer feedback and discussing BPR's future direction.

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BPR steps up financing for key sectors as Musanze redevelopment gathers pace