Atlas Mara Limited is set to take over the Development Bank of Rwanda (BRD) on November 1.

The handover follows an advisory by Allen & Overy, a British legal practice firm that was looking into the deal on behalf of Rwanda Development Board (RDB) for the disposal of a 77 per cent stake in the bank.

The deal involves splitting the bank’s activities into two business entities; the commercial operations to be run by Atlas Mara, and its development work, to be retained by government, according to the memorandum of understanding signed between the  Government  and Atlas Mara Investment Company backed by former Barclays chief executive Bob Diamond. 

The consultancy firm confirmed on Monday that they were satisfied with   conditions and terms of the deal and that Atlas Mara Ltd had agreed to acquire the government’s shareholding in the commercial arm of the BRD.

Commenting on the transaction, London-based Allen & Overy partner Simon Toms said the deal was Atlas Mara’s first acquisition in Rwanda.

Toms said the deal was in line with the government’s efforts to encourage privatisation with the goal of attracting foreign direct investment and fostering economic development.

Financia experience

RDB chief operations officer Clare Akamanzi confirmed that the investment arm of the government was content with the advice from the consultancy firm.

Akamanzi said BRD is set to benefit from the vast experience of the shareholders of Atlas Mara in financial services management.

 The shareholders are Bob Diamond and Ashish Thakkar (founder of Mara Group).

On the signing of the memorandum of understating earlier in April, Finance and Economic Planning minister Claver Gatete said government was committed to privatisation to attract foreign direct investments and to boost economic growth.

"The Government of Rwanda is committed to privatisation in a sense that attracts foreign direct investments, gives investors good business opportunities and also boosts economic growth,” Amb. Gatete said.

"This is in line with the government’s decision to reform the Development Bank of Rwanda operations so that the bank can effectively serve its mandate.”

At the same signing, Alex Kanyankole, the BRD chief executive, said they were content that Atlas Mara was the right partner to move the development bank to the next level of growth and thereby have a sustainable commercial impact in the country’s economy.