With time government will pull out of Simtel, the country’s electronic payments network consortium paving way for the company to be run by the private sector.

The development comes after shareholders sourced a strategic investor, African Development Corporation (ADC). The investor has acquired a controlling stake and pumped $3,5m (about Frw1.9 b) to recapitalise the company.

"With the new partnership, we will be able to build on the existing structures expand the number of ATM, number of terminals and extended services,” Rogers Munyapendi, the Simtel chief executive said.

After adjusting shareholding to accommodate ADC, now commercial banks’ and other financial institutions including Rwanda Commercial Bank, Housing Bank, Ecobank, Fina Bank, Cogebank, Rwanda Development Bank and Bancor have 24 per cent shares, government through the national bank has 8 per cent while ADC has 70 per cent—majority stake.

The governor of central bank, François Kanimba, said that before government pulls out, the Treasury is to release Frw1 billion to improve electronic transactions in the country. The World Bank has promised to contribute $650,000 (Frw354 million).

Simtel will start offering Visa Access Point (VAP) — a credit card authorisation interface for higher volume services. A Real Time Gross— an online system for settling transactions for financial institutions especially banks, and an automated clearing house will be effective. 

Munyampenda, said the system required massive investment, expertise, software development, capacity building and that’s what ADC is bringing on board.

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