East African Business Week (Kampala)
Daniel Karibwije
16 October 2006
Byumba — The commercial bank of Rwanda (bcr) has invested Frw62million (about US$110,000) in a newly re-opened rural branch in the northern province town of Byumba.
Located 60km from Kigali city in Gicumbi district, bcr aims at bringing services closer to the population in line with their business slogan - '....with pleasure!'
The Byumba site has a modern banking hall. Presentation of service has been fine-tuned to modern standards.
New staff with customer service care expertise have been recruited to give the rural folk a taste of the new image.
All bcr branches are now interconnected and the refurbished branch is set to encourage the "local community to stop keeping money under their mattresses and pillows for the good of Rwanda's economic growth," says a local official.
During the launch held at the Byumba bcr branch on October 6, the managing director appealed to the local community to begin banking their money.
"We do not have cash in the bank to lend. For it to work for the economy, it has to be banked," Mr. David Kuwana, a bcr top official, told Business Week. In rural Byumba, bcr is looking at providing services to the upcoming rural business community who, previously, had to travel long distances to Ruhengeri in the north and Kigali for banking services.
A recent diagnostic trade integration study on Rwanda, shows that small and medium enterprises (SMEs) play a crucial role in national development, contributing to over 80% of economic activity.
The SME sector plays a dominant role in growth and poverty alleviation but significant barriers still remain in the sector.
To bridge the gap, bcr, during the reopening ceremony, took the opportunity to unveil a new product line called 'Tradeline' which will narrow the gap of inaccessibility to finance.
Targeting registered businesses, Tradeline will support clients involved in trading and in need of finance to supply goods specified in contracts that have already gone through a tender process to recognised buyers.
"This is a short term facility available to customers that have a contract to supply goods to an established company," the marketing and communication manager at bcr, Mr. Hannington Namara explained to Business Week.
The bank provides short time finance for up to three months and no security is required for processing the loan facility.
What is needed is accompanying documentation to show that the tender has been awarded and procurement process is underway.
Loans issued under Tradeline should be used to pre-finance orders from reputable companies. The amount financed is between Rwf1million ($1,700) and Rwf20million ($35,000).
This is the maximum exposure for any single customer.
The bank covers a maximum of 70% of the order excluding advance payments and goods will be covered by a clear insurance that is negotiated by the bank.
The insurance cover includes insurance of stock against fire, loss or damage or theft and life cover for a customer. The interest rate is 5% of the loan and is paid upfront.
Byumba branch has been customer tailored to bring a sense of comfort and convenience to the rural community so that they do not feel neglected.
The Governor of Northern Province in Rwanda, Mr. Rucagu Boniface, was on hand to cut the tape and mark a fresh beginning.
The reframed branch in Byumba reflects that bcr keeps its promises to customers by providing the best atmosphere for quality banking services everywhere they go.
The branch is part of a network of seven other branches in Rwanda; Ruhengeri, Gisenyi, Cyangugu, Butare, Kigali and Novotel form the other arms.
bcr also has two sub branches in Nyabugogo and Remera in Kigali.
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