This archive report was first published on 4 September 2021.
Published on September 4, 2021, Equity and KCB's expansion into Rwanda is expected to bring more competition to the country's banking market, benefiting customers.
Big banks in Rwanda, including market leader Bank of Kigali and BRD, will face stiff competition in financing big investment projects in the country.
The acquisition of BPR Atlas Mara by KCB group to form BPR Bank will give the new entity a strong balance sheet, enabling it to expedite big investment projects without requiring capital reinforcement.
‘I don’t think the merger will complicate anything in the market in terms of competition, but their combined strength will make the new bank stronger, it is good for the market to have banks with big balance sheets and this is what the merger brings,’ said Hannington Namara, the Equity Bank managing director.
Financial analysts, however, think that the country’s financial market is still too fragmented to live up to its expected impact on the economy.
‘A market like Rwanda needs four big banks if we are going to become a financial hub. There should be more acquisitions, it’s taking long but it is what will eventually happen,’ said Konde Bugingo, a financial sector expert.
