MICROCAPITAL STORY: Non Profits World Relief, Hope International, and World Relief Canada Merge Operations in Rwanda With Opportunity International to Create Urwego Opportunity Microfinance Bank

Opportunity International, a global microcredit lender offering small business loans, savings, and insurance, will be bringing its financial and technological knowledge to Rwanda with the start of new bank Urwego Opportunity Microfinance Bank (UOMB). Opportunity International’s recently established commercial bank Opportunity International Bank Rwanda, will be merging operations with the Urwego microfinance program, established by World Relief, a Baltimore-based agency that specializes in rebuilding communities in the aftermath of war and natural disaster. The partnership also includes long time financial partners of Urwego, Hope International, a global, faith-based, non-profit organization, and World Relief Canada

According to the press release on the venture, UOMB of Rwanda, headquartered in the central district of Kigali, will open a new banking hall in early fall. The combined operation has offices in 27 of the 30 districts in Rwanda, more than 28,000 loan clients and over 3,000 savings clients. UOMB has USD 4.5 million in equity capital and a loan portfolio of USD 1.7 million. The merger of Urwego and Opportunity
International Bank Rwanda will save upwards of USD 2 million in start up costs for Opportunity International’s expansion into Rwanda. As a result of the merger, the company is named UOMB and is jointly supported and owned by all parties.

Opportunity International has already introduced ATM ‘smart card’ technology in other parts of Africa – and has seen an increase in savings activity as a result (For further information on their smart card technology, refer to a previous Microcapital Article). Eventually, participants will be able to access their money through ATM cards at their local branch.

Urwego, established in 1997 as a World Relief program, is a microfinance institution which provides its clients services such as loans, voluntary savings, as well as training and consulting. Their total assets reached USD 1,891,537 as of end 2006, with a debt/equity ratio of 16.82%.

–Monica Sharma, Research Assistant

Additional Resources:

World Relief: www.wr.org.

The Mix: www.mixmarket.org. Washington, D.C.

Press Release: World Relief, World Relief Canada and HOPE International partner with Opportunity International to open microfinance bank for Rwanda’s poor

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