The government is set to sell its stake in the Rwanda Housing Bank (BHR), according to a top Ministry of Finance official. The bank will be sold off by the end of the year in order to strengthen the local mortgage industry.

John Rwangombwa, the Permanent Secretary in the Ministry of Finance and Economic Planning said that government is trying to invite strategic investors with potential to buy into the bank.

Government is planning to sell off all its 69.07 percent shares it owns in the bank. According to information obtained by Business Times, International Finance Corporation (IFC) is among the investors who have shown interest.

"Selling of the government owned shares aims at restructuring the bank to make it effective in serving the long term government objective of strengthening the mortgage industry in Rwanda,” explained Rwangombwa who also doubles as Secretary to the Treasury.

The Rwanda Housing Bank, which currently acts as a primary mortgage lender in the country, will turn into mortgage liquidity facility to finance mortgage lenders like commercial banks.

"With the global financial crisis easing internationally, the timing to sell the shares is not bad but incase it persists we can adjust,” added Rwangobwa without divulging into the details of the sale.

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