KIGALI - Zigama-Credit and Savings Society (Zigama-CSS), yesterday, announced a net profit of over Rwf 3 billion for the year 2010.

Presenting the 2010 financial statement, during a General Assembly at Rwanda Defence Forces (RDF) headquarters, Lt. Col. Innocent Gashugi told the session chaired by the Minister of Defence, Gen. James Kabarebe, that the profit target of Rwf 2.6 billion was surpassed.

The 2009 financial report showed that the military savings scheme exceeded the target of Rwf 1.9 billion to earn over Rwf 2 billion, in profits.

Gashugi said that in terms of liquid investments and cash, a targeted Rwf 9 billion was surpassed to attain Rwf 11.7 billion; representing a 34 percent increment, compared to the previous year.

Capital and reserves also exceeded expectations as over Rwf 13 billion was targeted yet Rwf 14 billion was realised.
As part helping advance beneficiaries’ welfare, Gashugi said Zigama-CSS disbursed over Rwf 29.5 billion in loans to its members last year.

Zigama predominantly caters for members of the Rwanda Defence Force and National Police, but it is also open to the public.

Of the loans given out, Gashugi added, construction took the biggest chunk (63%) – with loans of over Rwf 18.6 billion. Zigama-CSS also disburses loans for agriculture and business.

Last year, consultants advised Zigama-CSS that it was strategic to continue operating as a cooperative to protect and achieve its mission of providing affordable services to members.

It was argued that if it becomes a commercial bank, it would be exposed to full regulation and business practices that no longer apply to it.
A team was set up to negotiate with the National Bank of Rwanda (BNR).

The Chairman of the Board of Directors, Dr. James Ndahiro, said that during discussions with BNR, it was acknowledged that Zigama CSS’s activities have an effect on the whole economy.

"We agreed that we become a bank minus, or a cooperative plus. We agreed that we will follow guidelines and regulations, but there would be some exceptions on what we are required to do,” said Ndahiro.

"What they mainly request us is transparency, constant reporting. The principle we agreed on is that Zigama CSS remains a cooperative that sticks to its initial mission [members’ welfare].”

For long-term sustainability, Zigama CSS is working to adopt and comply with BNR guidelines. 

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