The agreement, signed on Wednesday 18th October 2023, signifies the commitment of both parties to work together in achieving the common goal of improving financial stability and the well-being of key communities as per need in Rwanda.
Karake Julius, the Country Manager for SPENN in Rwanda, emphasized that the cooperation aligns with Rwanda’s national plan to harness technology’s potential across sectors.
"What we want is to see every Rwandan comfortable in accessing and paying for services through technology," Karake stated.
This partnership will leverage SPENN’s innovative financial technology and MINICT’s mission to drive economic growth through information technology, communication, and innovation policies.
This agreement is a game-changer for SPENN, marking a pivotal moment in the company’s history.
It is poised to drive substantial revenue growth by facilitating the efficient disbursement of governmental funds, a mission that resonates deeply with SPENN’s core values. At full scale, the value of this agreement is anticipated to propel the earnings into positive profit on a group level of SPENN technology A/S, enhancing its financial stability and sustainability.
Commenting on the development, Jens Glaso, CEO at SPENN, commented, “We are excited to partner with MINICT to advance financial inclusion and empower communities in Rwanda. This Agreement sets the stage for meaningful collaborations that will create positive economic impact and drive innovation in the country.”
Paula Ingabire, Minister of ICT stated that this partnership reflects Rwanda’s dedication to leveraging technology and innovation to enhance economic growth and reduce poverty in Rwanda.
“Together with SPENN, we will work towards achieving our mission and improving financial opportunities for all Rwandans,” she noted.
Gordon Kalema, the Director General of Digital Transformation at MINICT emphasized that the agreement signifies a significant leap in technological adoption, opening doors to other companies striving to elevate social welfare standards.
The Scope of agreement will cover five main initial projects:
Empowering Educators and Teachers
Through this agreement, SPENN will collaborate with the Ministry of ICT and other government institutions in education and to uplift the socio-economic welfare and enhance the financial stability of educators and teachers in Rwanda.
This collaboration will include tailored financial products, loan disbursements, and financial literacy training programs for health workers as well.
Enhancing Bursary Disbursement
SPENN will partner with the Development Bank of Rwanda (BRD) to integrate with the MINUZA platform, facilitating bursary disbursement and repayments to University of Rwanda students within and outside Rwanda.
BRD will utilize SPENN’s credit scoring algorithm to improve loan repayment rates and ensure efficient fund disbursement.
Financial Tools for Health Post Personnel
SPENN will seek collaboration with the Society for Family Health (SFH) to provide access to financial tools for health post personnel, including operators and managers of health posts managed by SFH.
Rwanda Community Abroad Support
SPENN is dedicated to supporting the Rwandan diaspora by enabling free-of-charge remittances from Nordic banks to Rwanda. This initiative aims to alleviate Rwandan franc depreciation and promote financial activity and investment within Rwanda.
SPENN Rwanda plans to introduce a multi-currency wallet, enabling users to hold different currencies in one wallet, facilitating seamless and cost-effective cross-border transactions between African countries.
Both parties are committed to exploring additional mutually beneficial projects that drive financial literacy and accessibility to the digital economy, aligning with their vision to make financial services accessible for everyone as per need.
As part of this important strategic move, SPENN’s management is diligently assessing its current operations to align them more closely with the focus on governmental disbursement. This shift reflects SPENN’s dedication to optimizing its operations and capitalizing on the tremendous potential within this sector.
To bolster this transformation, SPENN is placing a strong emphasis on cost efficiency. The management is rigorously focusing on cost reduction to ensure that resources are allocated judiciously, thereby minimizing expenditure associated with implementing this project.
This disciplined approach is expected to position SPENN favorably, primarily through the generation of float fees resulting from the governmental disbursement process.