Business round-up

BK to introduce deposit taking ATMsBank of Kigali (BK), the country`s leading lender announced its plans to rollout new Automated Teller Machines (ATMs) that accept deposits. The Bank said the innovation aims at improving access to the Bank’s products and services. The development will make the Bank the first financial institution to introduce such banking technology. Financial institutions are currently using ATMs that only allow clients to withdraw. This service will allow transactions related to cash power payments, mobile phone top up and DSTV payments. BK’s Managing Director, James Gatera, said that last year, the bank installed more 20 ATMs from six that were in place in 2009. He also said that for this year, more 20 will be installed raising the number to 46. The bank also plans to launch more branches this year on addition to the 10 opened last year. This will bring its branches to 19 nationwide. PSF backs privatisation of Mombasa portIt was reported that the Private Sector Federation (PSF) is backing the privatisation of the Mombasa port, which is currently locked in a spotlight of inefficiency, congestion, surcharges and vessel-delays. Roger Munyampenda, the Chief Executive Officer of PSF said that any intervention to decongest and streamline operations at the port will be good for Rwanda as well. He noted that this should solve issues of vessel-delays and congestion and bring speed and reliability.The official said that what is important is cost effectiveness, efficiency in cargo clearing and the cargo surcharges Rwanda being a landlocked country. Integration of capital markets will improve EA economy- EAC officialThe Deputy Secretary General of EAC, Alloys Mutabingwa, said that the East African capital markets Integration will attract more investors to buy and sell securities in any of the five countries’ without restrictions. Mutabingwa had visited the Capital Market Advisory Council (CMAC) to assess its progress and readiness for integration, a process currently being conducted in all EAC capital markets. The official said that the country was doing well pointing out Bralirwa which he said recorded significant success due to the openness of the market. BRD takes over Housing BankRwanda Development Bank (BRD) completed the takeover of Rwanda Housing Bank (BHR), to promote the mortgage industry in the country Finance Minister, John Rwangombwa, said the move is to transform BHR into a mortgage financing facility. He explained that it will make the fund more sustainable with more capital to fund other financial institutions to revamp the mortgage industry. And according to him, the fund will be managed by BRD. He noted that this was the best move to take than government injecting money in the bank which he said was not worth it.Jack Kayonga, BRD’s Managing Director, said shareholders of both institutions agreed to put together assets and liabilities with a vision to enhance the capacity of BRD. He added that, through the takeover, BRD will be used as a vehicle to create a mortgage refinancing facility. RwandaAir eyes Gabon marketRwandaAir announced plans to launch flights from Kigali to Libreville the capital city of West Central African republic of Gabon. It will be launched on 30 April. This will mark the national carrier`s twelfth route. RwandAir said it will operate three weekly flights between Kigali, Libreville and Brazzaville. John Mirenge, CEO RwandAir, said the airline is dedicated to linking Central and West African cities to East Africa. MFIs told to craft new financial strategiesThe Central Bank said there is need for Microfinance Institutions (MFIs) to craft new financial strategies so as to deal with current bottlenecks towards financial inclusion. The Governor of the National Bank of Rwanda, François Kanimba, said that according to the current success of MFIs in promoting financial inclusion, especially the rural poor, there is need for new strategies to address the persistent gaps in service delivery. He added that new strategies and ideas will help boost the availability of financial services to poor people living in rural areasHe was speaking during a workshop on effective models for financial inclusion. The development comes at a time when central bank statistics show that only 21 percent of the Rwandan population has access to formal financial services yet Government targets 80 percent by 2017. Ends