MICROCAPITAL BRIEF: Urwego Opportunity Bank of Rwanda Receives $514k from Development Bank of Austria, “Partnership for Financial Inclusion” of International Finance Corporation (IFC), MasterCard Foundation

The Urwego Opportunity Bank (UOB), a microfinance institution (MFI) in Rwanda, will receive a donation of USD 514,000 from the International Finance Corporation (IFC), a member of the US-based World Bank Group, and the Oesterreichische Entwicklungsbank AG (OeEB), Austria’s development bank, to support the provision of financial services – including mobile services – particularly to women and small-scale enterprises [1]. The project, to be accompanied by technical and advisory services from IFC, has been launched under the “Partnership for Financial Inclusion,” a USD 37.4 million initiative of IFC and the MasterCard Foundation, a Canadian organization founded by the US-based payments firm MasterCard. Launched in 2012, the partnership aims to support microfinance and promote mobile financial services in Sub-Saharan Africa.

As of December 2012, UOB reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 24.8 million, a gross loan portfolio of USD 16.9 million, 42,400 active borrowers, deposits of USD 10.5 million, 165,100 depositors, return on assets (ROA) of 1.65 percent and return on equity (ROE) of 7.74 percent.

At fiscal year-end 2012, IFC reported 184 member countries and total assets of USD 76 billion.

As of 2012, OeEB reported total assets of EUR 347 million (USD 478 million).

By Nisha Koul, Research Associate

About Urwego Opportunity Bank of Rwanda: The Urwego Opportunity Bank is a microfinance institution that was created as a result of a merger between Urwego Community Banking and Opportunity International Bank of Rwanda. Its services include loan and savings products, business training and insurance coverage. OUB’s shareholders include nonprofit organizations Hope International, Opportunity International, US-based World Relief and World Relief Canada. As of December 2012, UOB reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 24.8 million, a gross loan portfolio of USD 16.9 million, 42,400 active borrowers, deposits of USD 10.5 million, 165,100 depositors, return on assets (ROA) of 1.65 percent and return on equity (ROE) of 7.74 percent.

About Oesterreichische Entwicklungsbank AG (OeEB): Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the official development bank of Austria since March 2008. OeEB provides long-term financing for the implementation of private sector projects in developing countries in an effort to promote sustainable development. OeEB also provides technical assistance to enhance the development impact of projects. As of 2012, OeEB reported total assets of EUR 347 million (USD 478 million).

About International Finance Corporation (IFC): A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. At fiscal year-end 2012, IFC reported 184 member countries and total assets of USD 76 billion.

About MasterCard Foundation: Based in Canada, the MasterCard Foundation is a private foundation with the goal of enabling people living in poverty to improve their lives with increased access to microfinance and education. The foundation was established in 2006 by a gift of shares from US-based payment processor MasterCard Worldwide during the company’s initial public offering. As of 2012, the MasterCard Foundation reported approximately USD 4.9 billion in assets.

Sources and Additional Resources:

[1] Information provided to MicroCapital by the International Finance Corporation, December 2013.

MicroCapital Story, December 17, 2013, “Partnership for Financial Inclusion of International Finance Corporation (IFC), MasterCard Foundation Donates $2.7m to AccessBank Tanzania, FINCA Democratic Republic of Congo (DRC) for Projects Including Mobile Banking,” https://www.microcapital.org/microcapital-brief-partnership-for-financial-inclusion-of-international-finance-corporation-ifc-mastercard-foundation-donates-2-7m-to-accessbank-tanzania-finca-democratic-repub/

MicroCapital Story, August 9, 2013, “Rwanda’s Bank of Kigali Announces New ‘mVisa’ Mobile Banking Service,” https://www.microcapital.org/microcapital-brief-rwandas-bank-of-kigali-announces-new-mvisa-mobile-banking-service/

MicroCapital Story, July 22, 2013, “FMO, International Finance Corporation (IFC), KfW Entwicklungsbank Invest $5.4m in AccessBank Rwanda,” https://www.microcapital.org/microcapital-brief-fmo-international-finance-corporation-ifc-kfw-entwicklungsbank-invest-5-4m-in-accessbank-rwanda/

MicroCapital Universe Profile, Urwego Opportunity Bank of Rwanda, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Urwego+Opportunity+Bank+%28UOB%29

MicroCapital Universe Profile, Oesterreichische Entwicklungsbank AG (OeEB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oesterreichische+Entwicklungsbank+AG+%28OeEB%29

MicroCapital Universe Profile, International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile, MasterCard Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard+Foundation

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