COPEDU, a local micro-finance institution, plans to issue members additional shares to boost its capital and enable them to invest in activities and technologies that will further improve their operations and income, according to Olivier Rukundo, the company secretary.

He said the firm will create more shares (the number is yet to be determined), depending on the current shareholding as part of its 2017-2020 strategic plan.

Rukundo said: "By creating shares each year we will be getting Rwf500 million up to 2020 as a result of the initiative.”

The shareholders approved the 2017-2020 strategic plan during their general assembly last week in Kigali. COPEDU has 15,077 shareholders, with a total of 3,148,159 shares. Its share is worth Rwf400.

Rukundo said the Rwf405.7 million total dividend members were supposed to get for the year ended December 31, 2016 will now be turned into equity. The money represents 100 per cent net profit the microfinance made last year, the official said.

The share issue date is yet to be determined, according to Rukundo.

Meanwhile, the microfinance has recorded a significant growth in profits for the year ended December 31, 2016. The co-operative’s gross profit rose from Rwf458.3 million in 2015 to Rwf601.4 million last year, indicating a 31 per cent increase from 25 per cent in 2015. Its net profit was Rwf405.7 million, according to Emilienne Kabega, the chairperson of COPEDU.

Kabega said the growth in earnings was driven by use of new technological facilities that improved efficiency and service delivery.

"We adapted new financial technologies like use of ATM cards and Internet banking, as well as increased the number of agents countrywide which enabled us to serve customers better, faster and efficiently,” he said in a statement.

Festus Gasigwa, the director general of COPEDU, said customer deposits rose 25.5 per cent, while the loan book also increased 25.5 per cent with total assets up 24.5 per cent.