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COVID-19: Rwanda reimposes lockdown in parts of Kigali City
Rwanda has reimposed lock-down in parts of Kigali in a bid to prevent the spread of the coronavirus in other areas. Moreover, the Central Bank has announced that commercial banks have restructured loans amounting to about $679.5 million in a move to mitigate Rwandans from making monthly payments. During the same time, Equity Group Holdings ended its negotiations to acquire the banking businesses owned by Atlas Mara in Rwanda, Tanzania, Zambia, and Mozambique. Hudson Kuteesa, journalist with The Newtimes for more joins CNBC Africa for more.
Fri, 26 Jun 2020 14:42:31 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Rwanda reimposes lockdown in parts of Kigali city following a resurgence of COVID-19 cases, signaling a proactive approach to contain the virus
- The Central Bank of Rwanda restructures loans worth over $670 million to assist struggling businesses, particularly in sectors like transportation and hospitality
- Equity Group Holdings ends negotiations to acquire Atlas Mara's banking businesses, opting to focus on customer support and liquidity amidst the pandemic, while Andela shifts to a fully online operation, reflecting the growing trend of digital transformation
Rwanda has recently announced the reimposition of a lockdown in parts of Kigali city in an effort to curb the spread of COVID-19. Hudson Kutisa from The New Times Rwanda provided insights into these developments in a recent interview on CNBC Africa. The decision to enforce a 15-day total lockdown in six villages within Kigali comes after a resurgence of over 20 cases in the city, a stark contrast to the previous belief that the virus was under control in the capital. The move indicates a proactive approach by the government to contain the spread of the virus and prevent a wider outbreak. While the situation in Kigali is being closely monitored, there have been improvements in other provinces that were previously under lockdown. The reduction in cases in these areas is a positive sign, but the government remains vigilant and may consider additional lockdown measures if necessary. In a separate development, the Central Bank of Rwanda has announced the restructuring of loans worth over $670 million to ease the financial burden on businesses. This move is aimed at supporting struggling sectors such as transportation and hospitality, which have been hard hit by the pandemic. The restructuring of loans involves providing businesses with payment holidays and flexible repayment terms to help them recover from the economic impact of COVID-19. The initiative is expected to provide much-needed relief to businesses and ensure their sustainability during these challenging times. On the banking front, Equity Group Holdings recently terminated negotiations to acquire the banking operations owned by Atlas Mara in Rwanda, Tanzania, Zambia, and Mozambique. The decision is a strategic move by Equity to focus on enhancing customer support and liquidity amidst the ongoing pandemic. While the acquisition was initially seen as a potential opportunity for expansion, the parties involved have decided to part ways, citing reasons related to the current business environment. The development may have implications for Equity Bank's growth strategy, but the company remains optimistic about seeking alternative growth prospects in the future. Additionally, fintech company Andela has announced the closure of all its physical offices across Africa, opting to transition to a fully online operation. The decision reflects a shift in the business model towards a remote working environment, aligning with the trend towards digital transformation and virtual collaboration. Despite initial expectations, Andela's decision to go virtual underscores the challenges faced by traditional business models in adapting to rapidly changing market dynamics. The move highlights the evolving landscape of technology-driven businesses and the need to embrace digital innovation for long-term sustainability. The developments in Rwanda's lockdown measures, loan restructuring, acquisition negotiations, and business models reflect the dynamic nature of the current economic environment and the strategic decisions being taken to navigate through a period of uncertainty and change.
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