KIGALI : Bank of Africa Group S.A, a continental financial institution, has acquired majority stake in local micro-finance bank, Agaseke Bank.

The bank now has a controlling shareholding of 90 per cent, statements from both financial institutions indicate.

The buyout means Agaseke will now trade as an affiliate of the Bank of Africa Group, and will rebrand to Bank of Africa Rwanda Group effective October 13, according to the statements.

According to a statement from Agaseke Bank, the total share capital of the bank has been increased from Rwf2 billion to Rwf6.6 billion thanks to the new deal.

Agaseke Bank assured its clients that the changes in shareholding structure of the institution would lead to improved services, and more resources for the private sector.

“This will enable the bank achieve its mission of extending a variety of professional financial services and products in Rwanda and on international market,” the bank added.

The Bank of Africa Group said in its statement that it was committed to transforming Agaseke Bank into a commercial bank.

“Having obtained a commercial banking license for Bank of Africa Rwanda and increased its capital to the required level, the Bank of Africa Group will transform the new subsidiary into a fully-fledged commercial bank and ensure it becomes a significant player in the Rwandan market,” the statement added.

Agaseke Bank was previously owned by the Soras Insurance Group in 2014 and has $14 million in total assets, with a network of 13 branches and some 100 staff.

The Bank of Africa Group operates in 17 countries across the continent, including Uganda, Kenya, Tanzania, Ethiopia, Togo, Mali, Ghana, Ivory Coast and Senegal.

The group also has one branch in France and the DR Congo. It has one financial corporation, one leasing company, one brokerage firm, two investment companies, one asset management company and one Group representative office in Paris, among others.

Since 2010, the Bank of Africa Group has been majority-owned by BMCE Bank, the second largest private bank in Morocco.