Controversial former Barclays UK head set to acquire Rwandan bank
Development Bank of Rwanda head office in Nyarugenge District in
Kigali. Atlas Mara is buying 77 per cent stake in BRD.
By JOINT REPORT The EastAfrican
Posted Saturday, April 12 2014 at 15:04
IN SUMMARY
Atlas Mara is buying 77 per cent stake in BRD.
Atlas Mara plans to buy stakes in existing African banks.
With Atlas Mara going into commercial operations after the BRD
takeover, the private sector will have more options for relatively
affordable credit.
Atlas Mara, the banking venture set up by controversial UK banker Bob
Diamond and African billionaire Ashish Thakkar, has signed a deal to
acquire the commercial arm of Rwanda's state-controlled Development
Bank of Rwanda (BRD).
Atlas Mara is buying 77 per cent stake in BRD.
"This partnership is in line with Atlas Mara's vision of building a
leading African financial services group. Rwanda is a model economy
that will continue to benefit from the engagement of the private
sector," said Mr Diamond.
Mr Diamond is one of the most controversial bankers to emerge from the
financial crisis in the UK, and is the man ousted as boss of Barclays
after a direct intervention by the Bank of England.
The 32-year-old Mr Thakkar is the chief executive of Mara Group, a
conglomerate of IT, real estate and manufacturing companies with
operations in 26 countries, 19 of which are in Africa, employing more
than 7,000 people.
The two financiers are understood to have approached investors to
raise the $250 million necessary to set up the company Atlas Mara,
which plans to buy stakes in existing African banks.
Rwanda and the investors have signed a non-binding memorandum of
understanding to pursue a privatisation of BRD.
"Rwanda is a country that holds a very special place in my heart. It
is remarkable that today we signed this MoU with BRD, a great bank,
with even greater potential. I am proud to have this opportunity to
play a role in creating access to capital for the millions of young
Rwandan entrepreneurs like me," Ashish Thakkar was quoted by Britain's
Daily Telegraph as saying recently.
The BRD deal comes less than a week after Atlas Mara announced a deal
to buy a major stake in Botswana-based BancABC for $265m. Mr Thakkar
said that further deals are likely to be announced in the near future.
Atlas Mara's objective is to establish an African financial services
group. The company said that BRD is an opportunity for Atlas Mara to
create a privately run financial services group in Rwanda, which will
serve as a platform for the firm to expand into the East African
market.
Virgin market
Rwanda's financial sector is relatively virgin with limited banking
services and products, thus a small banked population.
The country's financial inclusion is currently below 25 per cent, but
with more financial institutions entering the market, government
targets over 70 per cent by 2020.
Analysts are upbeat that the Atlas Mara Group will revamp the
operations of BRD. The government privatised BRD to revamp its
operations which were suffering due to inefficiencies.
"The Development Bank in Rwanda, like in the region, has functioned
like parastatals with a lot of inefficiencies and with the commercial
operations. We expect to see more loans to the private sector with
improved conditions," said Prof Herman Musahara, an economist and
lecturer at the University of Rwanda.
According to the Monetary Policy and Financial Stability statement for
the first quarter of this year, credit to private sector rose by 13
per cent, from $1 billion by the end of 2012 to $1.2 billion last
year.
With Atlas Mara going into commercial operations after the takeover,
the private sector will have more options for relatively affordable
credit.
Rwanda's private sector, especially agriculture, which employs over 80
per cent of the population, is suffering from limited affordable
loans.
The BRD deal is the latest of a number of bids by foreign banking
institutions that are eyeing Rwanda's lenders. AB Bank Rwanda Ltd, a
member of international network of microfinance banks launched its
operations in Rwanda last year.
In 2012, I&M bank Ltd, a Kenyan bank, bought a stake in Rwanda
Commercial Bank (BCR) where it acquired 80 per cent equity from
private equity firm ACTIS, which was the majority shareholder from
2004.
Analysts said with more players in the market, Rwandans could enjoy
favourable interest rates. Currently, the average lending interest
rate is 17 per cent.
Kenya too has been awash with acquisitions and share deals involving
financial institutions.
Last week, Old Mutual announced it has bought a 67 per cent
controlling stake in Faulu Kenya -- the second largest deposit-taking
microfinance institution -- for Ksh3.6 billion ($42.4 million).
Late last year, Nigeria's Guaranty Trust Bank acquired the majority
stake in Fina Bank through a share purchase from current shareholders
and direct investment in a deal valued at $100 million (Ksh8.54
billion).
By Paul Redfern and Alex Ngarambe
http://www.theeastafrican.co.ke/business/Ex-Barclays-head-Bob-Diamond-set-to-acquire-Rwandan-bank/-/2560/2277126/-/j745aj/-/index.html
--
SIBOMANA Jean Bosco
Google+: https://plus.google.com/110493390983174363421/posts
YouTube Channel: http://www.youtube.com/playlist?list=PL9B4024D0AE764F3D
http://www.youtube.com/user/sibomanaxyz999
***Online Time:15H30-20H30, heure de Montréal.***Fuseau horaire
domestique: heure normale de la côte Est des Etats-Unis et Canada
(GMT-05:00)***
| Reply via web post | Reply to sender | Reply to group | Start a New Topic | Messages in this topic (1) |
.To post a message: RwandaLibre@yahoogroups.com; .To join: RwandaLibre-subscribe@yahoogroups.com; .To unsubscribe from this group,send an email to:
RwandaLibre-unsubscribe@yahoogroups.com
_____________________________________________________
More news: http://www.amakurunamateka.com ; http://www.ikangurambaga.com ; http://rwandalibre.blogspot.co.uk
--------------------------------------------------------------------------------------
-SVP, considérer environnement avant toute impression de cet e-mail ou les pièces jointes.
======
-Please consider the environment before printing this email or any attachments.
--------------------------------------------------------------------------------------
Sponsors:
http://www.afriqueintimites.com; http://www.afriqueintimites.com;
http://www.eyumbina.com/; http://www.foraha.net/
-=-=-=--=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-==-
Comments
Post a Comment