BPR Bank signs MoU with ADHI Rwanda to help customers own affordable homes at Bwiza Riverside estate

By Théophile Niyitegeka
On 2 November 2022 at 02:55

BPR Bank Rwanda, the second largest bank in Rwanda has made a step further to support customers’ growth after signing a Memorandum of Understanding (MoU) with ADHI Rwanda, a subsidiary of ADHI Corporate Group to provide mortgage loan facility to customers willing to own houses at Bwiza Riverside Homes estate.

BPR Bank Rwanda Plc is the second largest bank in Rwanda created out of the merger of KCB Bank Rwanda plc and Banque Populaire du Rwanda (BPR) last year while ADHI Corporate Group is a real estate company which uses modular parts pre-made in a factory for faster and more affordable construction.

This method addresses climate change concerns while providing homes that are well-suited to African climates.

ADHI Rwanda runs a Rwf100 billion eco-friendly housing project dubbed ‘Bwiza Riverside Homes’ whose first phase was launched in February this year in Karama, Kigali sector of Nyarugenge District in Kigali City.

The estate expected to give a boost to urban settlement in Kigali, is part of a project to build 2700 affordable housing units.

The project to be completed in five phases came at a time when the government of Rwanda seeks to address low and middle-income communities’ housing challenges with an aim to create 150,000 new dwellings annually to meet the projected demand of 5.5 million dwellings by 2050.

Speaking at the signing ceremony held in Kigali City, the Managing Director of BPR Bank, George Odhiambo said that the agreement aligns with the lender’s ambitions to create an impact to the community it serves.

He underscored that the partnership will last as long as ADHI will be constructing houses.

“BPR Bank is the bank of people. Our customer base is diverse. One of the challenges the country face is decent and affordable housing. This means that many of our customers need houses and we want to come in between and support them,” he said.

“Housing or ownership is something that some people live a life-time without acquiring. One of the greatest impacts we can create in a society is to provide decent houses. We are the bridge where we give them money to acquire the house and pay us over many years.

Our mortgage loan stretch up to 20 years. So, someone whose income is not so high can acquire a house and pay gradually. This is the contribution want to make in partnership with ADHI,” added Odhiambo.

He disclosed that the bank has engaged with many partners from various parts of the world for the last few years to help the growing population own homes but many of them died at the point of concept.

Odhiambo commended ADHI Rwanda for having reached a great milestone to break the ground and begin implementation, which has become a key enabler for the deal to materialize.

Odhiambo further stated that the MoU gives relief to customers who would hardly build houses.

“We are pleased to know that you have made this a reality. This is something that many of our customers that we fund for their personal development do not necessarily come to buy houses because they are out of their reach, To know that there is someone in town who can just deliver a house in a few weeks, or months is a big achievement for us and our customers” said Odhiambo.

As Odhiambo revealed, BPR Bank has over 1.5 million customers of whom ten thousands are rightfully qualified to start getting those houses for staying in or for investment.

ADHI Chairman, Soleman Idd said that BPR Bank becomes the only regional partner for the ongoing project and encouraged the lender to get involved in more relevant activities including training offered to young people to construct ecofriendly buildings.

Normally, an individual willing to buy a house at Bwiza Riverside was required to pay 10% upfront.

According to ADHI Chairman Vice President, Mme Soleiman Sadiya, the MoU removes the barrier as the mortgage loan can be provided without down payments.

“BPR is coming as the only bank that can finance the full ownership. You will only start paying your mortgage, the moment you have your keys. It is like you are having a house as a rental that will become yours in 20 years. This is the difference from other banks. What BPR is doing is very important for us as developers and for the customers,” she said.

The first phase of Bwiza Riverside estate is expected to be completed in July next year and will be comprised of 270 housing units.

Hassan Adan Hassan, the Managing Director of ADHI shaking hands with the Managing Director of BPR after signing the MoU.
BPR MD underscored that the partnership will last as long as ADHI will be constructing houses.
Hassan Adan Hassan, the Managing Director of ADHI signing the MoU.
ADHI Chairman, Soleman Idd has said that BPR Bank has become the only regional partner for the ongoing project.