Bank of Kigali, a Rwandan commercial bank, and the Rwandan branch of Mobile Telecommunications Network (MTN), a South Africa-based internet and telecommunications company, recently entered into a partnership that will allow MTN subscribers who are also customers of Bank of Kigali to transfer funds between their Bank of Kigali accounts and MTN’s mobile payments platform, Mobile Money. This service allows customers to perform services such as domestic money transfers and utility and other service payments.
As of 2014, approximately 85 percent of the 3.8 million MTN subscribers in Rwanda were registered to use Mobile Money. As of January 2015, Bank of Kigali reported 70 branches , RWF 498 billion (USD 688 million) in total assets, RWF 252 billion (USD 348 million) in net loans, RWF 339 billion (USD 468 million) in deposits, a return on average assets of 4.3 percent and a return on average equity of 23.1 percent.
By Mathew Cerf, Research Associate
About Bank of Kigali
The Bank of Kigali (BK) is a Rwandan commercial bank that is licensed by the National Bank of Rwanda, the country’s central bank. BK was established in 1966 and offers various loan products, savings accounts and other financial instruments to the people of Rwanda. As of January 2015, Bank of Kigali reported 70 branches in operation, RWF 498 billion (USD 688 million) in total assets, RWF 252 billion (USD 348 million) in net loans, RWF 339 billion (USD 468 million) in deposits, a return on average assets of 4.3 percent and a return on average equity of 23.1 percent.
About Mobile Telecommunications Network (MTN)
Established in South Africa in 1994, Mobile Telecommunications Network Group (MTN) is a multinational telecommunications provider that offers voice and data communication services to individuals and businesses. MTN also operates Mobile Money, a money-transfer service that can be used on cellular devices. As of 2014, MTN reported total revenue of ZAR 146.9 billion (USD 12 billion) and total assets of ZAR 253.7 billion (USD 20 billion). As of 2015, MTN reported approximately 203.8 million subscribers in 22 countries in Africa and the Middle East.
About Mobile Telecommunications Network Rwanda (MTN RWANDACELL Limited)
MTN Rwanda (MTN RWANDACELL Limited) was established in 1998, as the Rwandan branch of South Africa based Mobile Telecommunications Group (MTN). As of 2015, the organization has approximately 3.8 million subscribers and its coverage extends to approximately 98 percent of the Rwandan population.
Sources and Additional Resources
[1] MTN Rwanda Press Release, “MTN Rwanda and Bank of Kigali accelerating financial inclusion through innovative channels,” http://www.mtn.co.rw/Content/Pages/370/MTN_Rwanda_and_Bank_of_Kigali_accelerating_financial_inclusion_through_innovative_channels
[2] MTN Rwanda, “About MTN”, http://www.mtn.co.rw/Content/Pages/15/About_MTN_Rwanda
[3] Bank of Kigali, “Selected Financial and Operational Data,” http://www.bk.rw/index.php/about-us/investor-relations/financial-information/selected-financial-operational-data
[4] MTN, “2014 Financial Statements”, http://www.mtn-investor.com/reporting/prelims_2014/fin-positions.html
[5] MicroCapital Universe Profile, “Bank of Kigali,” http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+of+Kigali+%28BK%29
[6] MicroCapital Universe Profile, “Mobile Telecommunications Network (MTN)” https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mobile+Telecommunications+Network+%28MTN%29
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