In the quiet hours of January 3, 2024, a significant chapter unfolded in the financial landscape of Rwanda. Equity Bank accomplished a historic merger—a meticulous process that spanned 30 days, symbolizing a global first.
Hannington Namara, Managing Director of Equity Rwanda, steered this remarkable journey, leveraging their seasoned expertise to ensure its success.
“What we are now doing is what we call post-merger stabilization. If there is one person who says the system locked me out and my credentials are not working but those are small issues that we may resolve within minutes. But the rest of the merger processes, including legal mergers, is done. We don’t need, we don’t have anything remaining,” said Namara.
“The merger combines the strengths of both entities, positioning us to deliver even better access to competitive and tailored financial services, aiming to improve the lives and livelihoods of the people of Rwanda,” expressed Dr. James Mwangi, EGH’s Managing Director and CEO.
The formal announcement by Equity Group Holdings PLC (EGH) regarding the merger of Cogebanque and Equity Bank Rwanda, effective December 31, 2023, marked a pivotal moment in EGH’s strategic growth initiatives.
In adherence to Rwandan law, Equity Bank Rwanda assumed all previous Cogebanque business operations, including assets, rights, privileges, and liabilities. Cogebanque, in turn, ceased to be an EGH subsidiary.
Post-merger, EGH retained a 99.816% shareholding in Cogebanque, with the remaining shares distributed among three other stakeholders.
In the weeks following the merger, Cogebanque’s branches underwent a transformation into Equity Bank Rwanda, symbolizing a unified commitment to providing enhanced financial solutions in Rwanda.
“This merger combines the strengths of both entities, positioning us to deliver even better access to competitive and tailored financial services, aiming to improve the lives and livelihoods of the people of Rwanda,” reiterated Dr. James Mwangi.
He added, “Through the resources of the combined entities and the Group, we aim to support regional economic development, transcending borders and fostering collaboration among nations.”
Post-merger, the merged entity aims to expand wealth creation opportunities while upholding service excellence, innovation, and financial inclusion.
Dr. Mwangi extended gratitude to regulatory authorities, shareholders, management, staff, and stakeholders who supported this transformative process.
“Through the resources of the combined entities and the Group, we aim to support regional economic development, transcending borders and fostering collaboration among nations,” Dr. Mwangi emphasized.
Equity Bank Rwanda, a subsidiary of Equity Group Holdings Plc, emerged post-merger with impressive statistics, serving over 1,491,273 customers through an expanded network of 46 branches, 59 ATMs, 4,516 agents, and 1,777 merchants.
As of September 30, 2023, Equity Bank Rwanda reported total assets of RWF 682.9 billion and profit after tax of RWF 23.2 billion, while Cogebanque reported total assets of RWF 305,460,532 and profit after tax of RWF 5,630,504 within the same period.
Beyond the financials, this merger enhances the national presence of the combined entity, offering a broader network that caters to diverse geographic locations.
Equity Group Holdings Plc, as a non-operating holding company, now spans banking subsidiaries in Kenya, Rwanda, Tanzania, Uganda, South Sudan, and the Democratic Republic of Congo.
Simultaneously, in the heart of Kigali, the Equity Bank Towers are reaching for the skies, representing a significant investment and commitment to the Rwandan financial landscape.
This state-of-the-art infrastructure, valued at over US$100 million , is poised to become a beacon of financial empowerment.
“The Equity Bank Towers project combines our commitment to economic development with a hub for financial inclusion, technological innovation, and a catalyst for economic growth,” Dr. Mwangi affirmed.
As the towers rise, so does the promise of a brighter financial future for Rwanda.
The project aligns with Equity Group’s vision to champion socio-economic prosperity in Africa, with tangible investments that echo the commitment to building a robust and inclusive financial ecosystem.
The Equity Bank Towers, upon completion, will stand not just as a physical structure but as a symbol of progress, resilience, and the unwavering commitment to shaping a better tomorrow for all Rwandans.
