Portfolio company
Banque Commerciale du Rwanda |  |
|---|
Company website | www.bcr.co.rw |
Business sector | Financial services |
Country of operation | Rwanda |
Market | Africa |
Investment status | Current portfolio |
Investment type | Growth capital |
Date of original investment | 2004 |
Office | Nairobi, Kenya |
Background
Banque Commerciale du Rwanda (BCR) was formed in 1963 and is Rwanda's second largest commercial bank. BCR provides a variety of banking services to commercial and retail customers, operating a seven-branch network headquartered in Kigali. Prior to Actis's investment BCR was 100% government owned. BCR currently controls an estimated 25% market share, which has increased from 20% when Actis invested.The Rwanda Central Bank rates BCR as the country's best bank and the business was also awarded Bank of the Year 2006, Rwanda, by The Banker magazine. BCR is focused on delivering growth by targeting the SME and retail client base with innovative products, and developing a strong relationship with the NGO sector. Over the last five years the Rwandan banking sector has been growing at a rate of 10% per annum and is expected to continue to grow on the back of economic growth and increasing banking penetration.
Their needs
Following the announcement by the Government of Rwanda to privatise BCR, Actis saw a significant opportunity to buy the bank and use it as a platform to leverage the growth and development of the Rwandan financial sector. BCR was looking for an international investor with banking expertise and the ability to improve management and develop the bank.Our solution
Actis's privatisation bid was supported by its experience of investing in financial institutions throughout Africa and globally and its ability to contribute to building and deepening financial sectors in emerging markets.In December 2004, this paid off with a successful bid, giving Actis an 80% stake in the business and making this Rwanda's first financial institution privatisation. The Government of Rwanda retained a 20% shareholding in the bank.
BCR needed to improve its capital adequacy, so Actis structured its investment to boost the bank's as Tier 1 capital, thereby bringing it in line with regulatory requirements.
Actis's added value
Actis is now working to position BCR as the leading commercial bank in the country. Actis has introduced a number of individuals with significant international and African banking experience to the management team drawn from Actis's strong network of contacts in the financial institutions sector.Actis is working with the management team to build on the bank's strong heritage to grow the corporate and retail business significantly and to focus on enhanced customer service. This will include the introduction of innovative products, such as leasing, SME lending and housing finance products.
Actis is also working with BCR's management to improve corporate governance, train management and staff and improve systems and controls at the bank to create a strong platform for growth.