Rwanda - Banque Rwandaise de Developpement Project

Report No. 1008a-RW p.e _ n Appraisal of the Banque Rwandaise de Developpement June 24, 1976 Development Finance Companies FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties Its contents may not otherwise be disclosed without World Bank authorization  Currency Equivalent (1975) 1 US$ = RwF 92.84 ABBREVIATIONS BRD Banque Rwandaise de Developpement CCCE Caisse Centrale de Cooperation Economique CEFEB Centre d'Etudes Financieres, Economiques et Bancaires DEG Deutsche Entwicklungsgesellschaft KfW Kreditantstalt fur Wiederaufbau UNIDO United Nations Industrial Development Organization UNDP United Nations Development Program FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY APPRAISAL OF THE BANQUE RWANDAISE DE DEVELOPPEMENT (BRD) Table of Contents Page No. ABBREVIATIONS BASIC DATA SUMMARY ................................................. i-ii I. INTRODUCTION ............................................ 1 II. THE ENVIRONMENT ......................................... 1 The Economy .....................1................... The Manufacturing Sector .................. 3 Government Industrial Policies ..... .......... . 4 Tourism .............................. 6 The Financial Environment ................. 7 The Central Bank (Banque Nationale du Rwanda) ...... 7 Commercial Banks ..................... 7 Term-Lending Institutions ................. 8 Peoples' Bank (Association de Banques Populaires) .. 8 Interest Rate Structure ........................... . 8 III. THE COMPANY ............................................. 11 Background ......................................... 11 Ownership .......................................... 11 Board of Directors ............... .. ................ 12 Management ....... .............. .................... 12 Organization and Staff ............. .. .............. 13 Policy Statement ................ .. ................. 13 Interest Rates ................. .. .................. 13 Procedures ..................... .................... 13 Promotional Activities ............. .. .............. 14 Auditors ....... ............... ..................... 14 IV. OPERATIONS AND FINANCE .................................. 15 Operations ..................... .................... 15 Resources ..................... ..................... 16 Loan Portfolio ................... .................. 16 Equity Portfolio ....... ........... ................. 16 Financial Situation .............. .. ................ 16 Financial Results ................. ................. 17 This report was prepared by Mlessrs. Philippe Beuzelin and Louis Currat following their visit to Rwanda in November 1975. This document has a restricted distribution and may be used by recipients only in the performance of their omcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  -2- Page No. V. PROSPECTS ............................................... 17 Business Outlook ............... .. ................. 17 The Company's Strategy ............. .. .............. 18 Forecast Operations ............. .. ................ 19 Resource Requirements and Proposed IDA Credit ..... 20 Spread for BRD/Financing of Technical Assistance ... 21 Financial Projections .............................. 21 VI. CONCLUSIONS AND RECOMMENDATIONS ......................... 21  -3- LIST OF ANNEXES 1. RWANDA - Interest Rate Structure 2. BRD - List of Shareholders 3. BRD - Board of Directors 4. BRD - Organization Chart 5. BRD - General Policy Statement 6. BRD - Term Loans Approved (1971-1975) 7. BRD - Equity Investments (1967-1975) 8. BRD - Loans Approved by Sector, by Year and by Term (1971-1975) 9. BRD - Summarized Balance Sheets (1971-1975) 10. BRD - Summarized Income Statements (1971-1975) 11. BRD - Borrowings by BRD as of December 31, 1975 12. BRD - Resource Position as of December 31, 1975 13. BRD - Project Pipeline as of end of October 1975 14. BRD - Assumptions for Financial Projections 15. BRD - Projected Operations (1976-1980) 16. BRD - Projected Income Statements (1976-1980) 17. BRD - Projected Balance Sheets (1976-1980) 18. BRD - Projected Cash Flow Statements (1976-1980) 19. BRD - Past and Projected Financial Ratios (1971-80) 20. BRD - Estimated Disbursement Schedule for the Proposed Credit   - i - BASIC DATA on Banque Rwandaise de D6veloppement (BRD) YEAR OF ESTABLISHMENT: 1967 OWNERSHIP (As of December 1975) In Millions % of Total of RwF Capital Public Sector 115.5 55.5 Gouvernement Rwandais 63.3 30.4 Caisse Sociale du Rwanda (CSR) 26.5 12.8 Office des Cultures Industrielles du Rwanda (OCIR) 25.6 12.3 Domestic Private Sector 47.9 23.1 Banque Commerciale du Rwanda 17.0 8.2 Banque de Kigali 17.0 8.2 Brasserie et limonaderie du Rwanda 6.7 3.2 Other local enterprises (14) 7.2 3.5 Foreign Institutions 44.6 21.4 DEG 19.0 9.1 Caisse Centrale de Cooperation Economique 19.0 9.1 Bank of Tokyo 6.6 3.2 TOTAL 208.0 100.0 HISTORICAL OPERATIONAL DATA (RwF million as of December 31) 1971 1972 1973 1974 1975 Approvals Long-Term 17.9 - 35.0 41.9 136.6 Medium-Term 26.6 21.5 30.5 121.2 64.7 Short-Term 9.2 o.6 - - TOTAL 53.7 22.1 65.5 163.1 201.3 Disbursements Long-Term 17.9 - 35.0 0.7 55.8 Medium-Term 26.6 21.5 26.5 2.9 41.4 Short-Term 9.2 o.6 - - _ TOTAL 53.7 22.1 61.5 3.6 97.2  - ii - BASIC DATA on Banque Rwandaise de Developpement (BRD) OPEmATING HESULTS (RwF million as of iecember 31) 1971 1972 1973 1974 1975 Gross Income 7.8 16.3 16.1 12.5 31.0 Administrative Expenses 0.9 1.9 2.8 7.1 10.3 Financial Expenses 1.2 1.1 1.1 1.1 4.1 Net Profit 5.4 6.7 7.3 314 9.3 Net Profit/Average (a) Net Worth (%) 9.5 11.2 7.4 1.9 413 Net Profit/Share Capital (5) at (a) Year-end 10.8 13.4 6.5 1.6 4. FINANCIAL POSITION: 1971 1972 1973 1974 1975 Total Assets 238.9 275.6 280.5 351.2 5LOh6 Net Worth 56.7 63.4 133,8 212.1 224h_7 Debt/Equity 3c2:1 2.5:1 0.9:1 0.6:1 1.2:1 INT.itESbT