16th March, 2016Mike Coates

GBRW Delivers Major Capacity Building Project for the Development Bank of Rwanda

GBRW was delighted to have been retained by the Development Bank of Rwanda to undertake a comprehensive capacity building project sponsored by the African Development Bank. The Development Bank of Rwanda (BRD) is the national Development Finance Institution (DFI), tasked with enhancing access to finance with a view to achieving Rwanda’s strategic economic and social development goals.

GBRW supported the Bank in adopting the Balanced Scorecard approach to strategic management, and in adapting their monitoring and reporting systems to reflect the strategic plan. A comprehensive review of the five-year financial plan was also provided, along with a multi-currency forecasting tool. The financial accounting policies and procedures were comprehensively reviewed with support in implementing a revised budgeting process. The Treasury business and operating model were extensively improved, and guidance provided on alternative approaches to balance sheet management. Finally, the Financial Crime Prevention function (encompassing Anti-Money Laundering, and Politically Exposed Persons and Sanctions compliance) was thoroughly reviewed.

GBRW provided an expert team of five consultants to cover the range of subject matter. Delivery included a suite of revised policy and procedure manuals specifically for the Finance function, Treasury and Asset and Liability Management (ALM) and ALCO, and Financial Crime prevention, including specific policies for Anti-Money Laundering (AML), Sanctions and Embargoes, and Politically and Financially Exposed Persons (PEP and FEP). The Financial Crime policies were subsequently developed into a comprehensive and accessible toolkit for staff to use in their day-to-day activities, including an e-learning course covering Financial Crime prevention.

The financial planning tool was instrumental in helping the Bank better understand and forecast its foreign exchange mismatch risks. GBRW worked with the Bank to develop Balance Sheet Management strategies to assist in the practical hedging of FX risk. This included supporting the Bank in exploring the potential for supplementing its capital base with a domestic and/ or foreign bond placement, and to assess the options for hedging hard currency borrowing with FX derivative products.