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(BREITBART, RABOBANK) Rabobank Acquires 35% in Banque Populaire du Rwanda

KIGALI, Rwanda, June 13 /PRNewswire/ -- Following several rounds of successful negotiations, Banque Populaire du Rwanda (BPR) and Rabo Development signed a number of agreements on June 12th that will give Rabobank a 35% interest in BPR.

BPR, established in 1975, is Rwanda's leading retail bank with a nationwide network of approximately 130 branches and outlets throughout the country. Although BPR recently changed from a co-operative to a corporate structure, it has remained true to its co-operative roots, by retaining its widespread shareholder base of clients from throughout the country. The bank is unique in that over 600,000 client-shareholders jointly own the 65% majority of the bank.

The Rabo Development initiative started four years ago and has built on the long and successful co-operative history and tradition of the Dutch Rabobank Group. Rabo Development's mission is to help financial institutions in developing countries evolve into fully fledged, financially sustainable retail banks with a rural orientation. As part of this initiative, it acquires a minority interest in the capital of the partner bank and assigns senior Rabobank managers to the Board and the Management Team, who work closely with local managers. Rabobank also provides comprehensive technical assistance, allowing it to share its expertise with the partner bank.

Although Rabo Development is the strategic and largest shareholder in most of its ventures, it does not acquire a majority interest, as it wants the partner banks to remain largely locally owned. A good relationship with the local stakeholders and agreement on the mission and strategy of the bank are key ingredients for the partnership. Developing a strong, nationwide branch network and providing rural access to finance are crucial elements of this approach.

BPR will be Rabo Development's 6th partner bank following successful partnerships in Tanzania (National Microfinance Bank), China (United Rural Co-operative Bank of Hangzhou), Zambia (Zambia National Commercial Bank), Mozambique (Banco Terra) and Paraguay (Banco Regional).

The partnership with BPR is very special considering our mutual co-operative roots and the many similarities between our organisations. The Royal Netherlands Embassy in Kigali is showing its support for the partnership by making a substantial contribution towards the technical assistance costs. 'We are impressed by what BPR has already achieved in the recent past,' Arnold Kuijpers, Managing Director of Rabo Development, commented. 'The commitment of the Board of BPR and the support of the Central Bank to accommodate our partnership have been equally impressive.' Mr. Manasse Twahirwa, Chairman of the Board of BPR stated: 'We consider it an excellent opportunity to partner with Rabobank in order to make substantial progress in developing the Banque Populaire du Rwanda in the years to come.'

SOURCE Rabobank Group

Labels: BANKING, RABOBANK, RWANDA

posted by MrK @ 8:33 PM