The central bank, the National Bank of Rwanda (BNR), Friday opened a new branch in Rwamagana town.

BNR Governor John Rwangombwa and Eastern Province Governor Odette Uwamariya officiated at a function graced by senior government officials and the business community.

Rwangombwa said the branch would be used as a backup for the Kigali head office in case of emergency.

"This branch will have capacity to backup the head office in Kigali…Its proximity to the headquarters of the central bank is also an added advantage,” he said.

Rwangombwa added that the branch is intended to ensure continuity in business in case of an emergency; and was privileged to have enough capacity to carry out transactions without a help from head office.

"In fact, we don’t have to send money to this branch, because Eastern Province, just like the Northern Province, has enough money to use. They are able to meet their demand and send the balance to Kigali,” he said.

The governor noted that the Province had the lowest number of people living under the poverty line and a vibrant business community as a result of the government’s efforts to fight poverty.

Apart from the Asian Tigers, Rwangombwa said, only Rwanda has been able to reduce poverty at a faster rate of 12 percent.

"We have been reducing poverty steadily since 2006. More banks have been coming up hence increasing competition, which is healthy for clients. The environment that the bank creates will reduce interest rates with time”.

Meanwhile, the business community commended the crucial role access to financial services can play in socio-economic development of rural communities.

Jean de Dieu Nkurunziza, a renowned businessman in Kayonza District said that extending financial services to rural communities was timely. He noted that the specialized banks would be able help farmers and businesses access financial services easily, hence allowing them to make profits.

"That we have services of BNR at our door-steps is great news. Most of our transactions go through it…we are paid through the bank or asked to pay money in the central bank when bidding for government tenders. So, a modern branch near us is an important development,” he said.