One hundred and sixty representatives from banks and Microfinance Institution (MFI’s) in Rwanda are currently undergoing an intensive 3-month credit awareness qualification. The training stems from a need identified by Central Bank of Rwanda for deeper credit knowledge at banks and MFIs in the wake of making financial services available to SMME’s and individual entrepreneurs. Compuscan Academy, a specialist credit training company, won the tender to deliver the training to over 160 learners across the sector and commenced the project in Kigali in May 2012.
Representing Compuscan Academy at the launch of the training in Kigali, Mike Malan, Managing Director of Compuscan CRB Ltd Uganda, spoke about the benefits of training programs in the specialist areas of credit and discussed the tangible results that the Academy has witnessed in the field of credit management and micro-finance skills development. “Training projects such as these have done much for improving the credibility of the banking and microfinance sector with many institutions, in particular smaller and more vulnerable ones, formalising and improving their credit practices, processes and procedures. We have also seen, which of course is an expected outcome, that lenders have changed processes and procedures to ensure greater levels of compliance to credit legislation and regulatory requirements after having attended related training programs.”
Director of Financial Stability for the Bank of Rwanda (BNR), Mrs Joy Ntare, further discussed prior losses in the sector and the impact on lending brought about by the Genocide in Rwanda. She recalled that NPL percentages were in excess of 30% but have been steadily recovering and that they currently represent 8% of loan books at risk. BNR has a direct interest in ensuring that the economy continues to recover and that the correct policies and interventions are stimulated which she cited as key factors for BNR’s involvement in pursuing the credit training. In addition, Rwanda as a country has also embarked on establishing its first private credit bureau with new regulations which has been a key reason for ensuring that all users are well equipped with the knowledge needed to make better and more precise credit decisions or write off determinations.
It is hoped that this training will equip credit professionals with the ability to make sound lending decisions thus increasing access to credit for both the unbanked and under-banked while also reducing risk and loss for credit providers. As the associated risk that comes with providing credit to this market (the risk of default) is considerably high, institutions, and in the case of Rwanda, The Central Bank, have realised the need for training that will equip bank and MFI employees with the ability to make sound lending decisions and manage their loan books optimally. Likewise, it is envisioned that the training will have a similar effect in Rwanda to that of comparable training which has taken place in South Africa and see an improvement in the credibility of the microfinance sector.
The training programme offered by Compuscan Academy is divided into two separate course programmes aimed at both credit officers and risk managers of banks and microfinance companies in Rwanda. The first training programme, The Fundamentals of Credit Processes, is aimed at all credit officers and focuses on the fundamentals of credit targeting, credit application analysis and decision making, credit structuring and documentation, credit administration and recovery as well as workouts, legal collections and write-offs.
The second programme, The Fundamentals of Credit Portfolio and Risk Management, is being attended by credit and risk managers who will learn about portfolio targeting and structuring, portfolio risk and return considerations, credit supervision, compliance with regulatory portfolio reporting and risk management requirements.
Compuscan Academy is proud to add Rwanda to the already extensive list of African countries in which it has a presence and encourages training participants to grow both personally and professionally from the training opportunity. It is our vision that, together with the African Development Bank Group, Compuscan Academy will transform the lending environment in Rwanda and drive the financial economy of the country to new heights.
For more information please contact Compuscan Academy on firstname.lastname@example.org or call 021 888 6000. You can also visit our website www.compuscanacademy.co.za
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