Bank of Africa to open subsidiary in Rwanda
The group is now present in every member country of the East African Community.Bank of Africa has acquired a 90 per cent stake in the capital of Agaseke Bank, a Rwandan microfinance operator.
The Pan-African banking group, which is planning to transform Agaseke into a commercial bank, enters Rwanda, the last country in the East African Community where it didn't have a presence.
"After receiving our commercial banking license and increasing its capital, the BOA Group will transform its new subsidiary into a commercial bank and will implement its business model in the course of 2016 in order to rapidly become a significant player in the Rwandan banking landscape," the company said in a statement.
Rwanda counts eleven commercial banks. According to the African Economic Outlook report, in 2014, the three main banks represented 45 per cent of loans, 47 per cent of deposits and 46 per cent of assets.
The financial sector grew in recent years, but the depth of the financial market remains the lowest in the Community of East Africa and access to financial services remains a major problem. Recent figures indicate that about 80 per cent of the population has no access to financial products.