Letshego Rwanda has started operating as a deposit-taking microfinance institution after getting approval from the central bank.

Kungu Gatabaki, the Letshego chairman and independent non-executive director, said the development is an opportunity for the institution to bring unbanked masses into the formal financial services sector by providing them tailor-made products.

"We want to support client’s efforts to save and transact through a comprehensive suite of financially inclusive products,” Gatabaki, said during the launch in Kigali last week.

Tom Kocsis, Letshego’s director noted that deposit-taking will diversify the financial institution’s core operating model and help them strengthen financial inclusion agenda, as well as provide funding to low-income earners and small businesses.

Jonathan Gatera, the National Bank of Rwanda director general for financial stability, urged the institution to embrace financial regulations and develop products that meet market needs.

"We are confident that you will play a key role in mobilising savings. However, you must also develop financial services and products which meet the needs of our people… this has been a challenge for most financial institutions across the country,” Gatera said.

Lestshego Rwanda was established in 2004 and has been operating as a regulated credit-only microfinance institution.