Actis, the emerging markets private equity firm, is to sell its interest in Banque Commerciale du Rwanda, which it acquired as part of the Rwandan government's privatisation program in 2004, to French and German development finance institutions, among other buyers.
Actis, the emerging markets private equity firm, is to sell its interest in Banque Commerciale du Rwanda, which it acquired as part of the Rwandan government’s privatisation program in 2004, to French and German development finance institutions, among other buyers.
Proparco in France and and DEG in Germany will be joined by Kenyan regional bank I&M Bank in the purchase.
Actis made its initial investment in BCR via two funds, Actis Africa Fund 2 and The Canada Investment Fund for Africa. It has an 80% stake in the bank, with the rest still State owned..
Since the investment BCR has strengthened its management team and board, and broadened activities including SMEs, mortgage finance, and innovative leasing and savings products.
Actis senior partner Paul Fletcher said of the sector in Rwanda: “There has been extraordinary progress in the past eight years with the creation of a growing and competitive financial services industry at the heart of a thriving economy.”
Actis has almost $1.5bn, or about 30% of its total assets, invested across 18 African countries.
Selling its stake in the bank is not part of a withdrawal from the continent. It still has over $300m invested in East Africa, and plans investing at least $200m more over the next four years.
Its investments include Ugandan electricity distributor, Umeme, and bank DFCU, Kenyan power generator,Tsavo, plus Nairobi Business Park, and Capital Properties in Dar es Salaam.
It employs 32 investment specialists in Cairo, Johannesburg, Lagos, London and Nairobi.