The government of Rwanda is in the process of selling at least 70% of its shares in Banque de Kigali to Barclays Bank.
“We are now engaged with Barclays bank and we hope to conclude this exercise in June,” Rwanda’s Finance Minister, Mr. James Musoni said recently. According to the minister, negotiations are well into the due diligence stage.
The deal comes over two years after the government increased its shareholding in Banque de Kigali from 36.5% to almost 99.8% after repurchasing 50% shares owned by Belgolaise, a Belgian bank that pulled out in 2005.
Its gross income increased by 20.8% from Rwf9.9bn ($18.3million) in 2006 to Rwf12billion ($22.1million) in 2007. Banque de Kigali closed 2007 with an increase of 44% in net profit from Rwf2.9bn ($5.4million) in 2006 to Rwf4.2bn ($7.8million). Deposits increased by 47.6% from Rwf69billion ($126.8mn) in 2006 to Rwf101.8bn ($187.1mn). Total loans in the year in question increased by 28.6% from Rwf37.8bn ($69.5mn) in 2006 to Rwf48.6billion ($89.4mn).
The Barclays team was in Kigali in the beginning of the year to assess the banks position.
If the deal is successfully brokered Barclays PLC, the third largest bank in the United Kingdom PLC and among the ten largest banks in the world by market capitalization ($94.79 billion), would be the fifth foreign bank to enter the Rwandan banking sector. Other foreign banks currently active are Actis, Access, Ecobank and Fina bank.