Hakuziyaremye had served as Deputy Governor of the National Bank since 2021. Her predecessor, John Rwangombwa, completed two six-year terms, having held the position since 2013.
Expressing gratitude for the appointment, Hakuziyaremye acknowledged the trust President Kagame continues to place in her.
In an exclusive interview with IGIHE, she shared her reaction to the new role, her priorities, and how the National Bank of Rwanda plans to address potential economic challenges.
QN: How did you receive the news of your appointment as the Governor of the National Bank of Rwanda?
ANS: It's not something you expect because the President of the Republic holds the authority to appoint the leadership of the National Bank. I received the news with joy and gratitude for the continued trust that the President has confined in me across different roles in serving Rwanda.
I have been the Deputy Governor for four years, so I am familiar with the institution. This new role is a continuation of our work, and I am committed to collaborating with my colleagues to fulfill our responsibilities.
QN: What does it mean to you to be the first woman to lead the National Bank of Rwanda?
ANS: This milestone is not about me; it reflects the country's commitment to gender equality. Our leadership has ensured that both men and women are given equal opportunities to contribute to national development.
Although I am the first woman to hold this position, two other women have previously served as Deputy Governors. Their contributions helped pave the way and demonstrated that women are capable of excelling in these roles.
QN: How are you preparing to take on this new responsibility?
ANS: These are significant responsibilities that no one can handle alone. Fortunately, I work alongside a capable leadership team and dedicated staff at BNR. Together, we will continue to deliver on our mandate.
Our work involves collaborating with other institutions to maintain economic stability. This is not new to us; we will continue to build on the solid foundation already in place.
The government's NST2 program urges us to accelerate economic development. We also have Vision 2050, which sets the ambition for Rwanda to become an upper-middle-income country. These goals guide our work, and we are determined to achieve them.
QN: What will be your main focus moving forward?
ANS: Our primary focus is maintaining financial stability and ensuring that market prices remain under control. Additionally, we aim to protect consumers of financial services and promote financial sector development.
With the rapid growth of digital financial services in Rwanda, we want to ensure these services remain accessible and affordable for everyone.
We also plan to advance the Kigali International Financial Centre (KIFC) initiative. Working with the Ministry of Finance and Economic Planning, we will continue attracting investors to strengthen Rwanda's financial sector.
Another priority is expanding the capital market. As the national bank, we facilitate the issuance of government bonds, and we want to encourage more public participation while ensuring the market provides the necessary financing for the country's development.
QN: How will you ensure Rwanda builds a resilient economy?
ANS: Rwanda's economy remains strong. Although inflation reached 14% in 2023, it has since dropped to an average of 4.7%.
The financial sector is stable and continues to grow, whether in banking, insurance, or microfinance. Capital adequacy and profitability remain solid indicators of a healthy financial system.
QN: Are there concerns that market prices will continue to rise?
ANS: No, the rate of price increases has significantly slowed and remains within the 5% target range. This level supports economic growth without major disruptions.
QN: What measures are in place to promote digital financial services?
ANS: We recently hosted the Inclusive Fintech Forum to explore ways to advance digital financial services. The government has adopted a new Fintech policy to strengthen the sector.
Our main goal is to enhance technological literacy in financial services, particularly in payments, banking, and insurance. We are also working on regulations to safeguard the financial system from risks such as cybercrime.
We want to empower Rwandan Fintech startups, particularly young innovators, by connecting them with major financial institutions. This will help them grow and achieve the global standards we aim for.
QN: What can be improved to promote money transfers?
ANS: We should take pride in the progress Rwanda has made, especially when considering the volume of money transferred through digital platforms like Mobile Money, banks, and microfinance institutions.
These transactions now account for 300% of the country's Gross Domestic Product (GDP). Fifteen years ago, this figure stood at just 0.3%, but it has increased significantly, especially during the COVID-19 pandemic, as more people turned to digital services.
This marked a turning point for the adoption of cashless payments, and we aim to ensure that those who have not yet adopted these methods are included.
Additionally, there is an ongoing e-cash project aimed at integrating banks and mobile money services. For example, a user with an MTN SIM card can now send money to an Airtel user without issues, and it is also possible to transfer money from a bank account to a mobile money wallet.
Our goal is to connect all these institutions, which will facilitate faster transactions and, we hope, reduce the costs associated with money transfers.
QN: How far along is the digital currency initiative?
ANS: It is a long-term initiative that we are approaching with caution. If and when digital currency is officially introduced, it must be a secure and beneficial tool for Rwandans.
The first phase of research has been completed, and we have engaged with various stakeholders and collected public feedback on the findings. This will inform a small-scale pilot test of the digital currency, which is our current focus.
We anticipate that in five or six months, we will present the results of this pilot. If the test confirms the potential we foresee, we will initiate a broader pilot involving a select group of Rwandan citizens.
The outcomes of this extended pilot will determine whether Rwanda fully adopts a digital currency. Research suggests that one of the most immediate benefits would be lower transaction costs for both domestic and international transfers.
Other countries that have introduced digital currencies have reported easier and more affordable cross-border trade. Additionally, digital currency could increase competition among payment service providers, driving innovation and better services.
QN: Why are there still significant concerns about digital currency?
ANS: The primary concern is that digital currency is a new concept. While research reports provide valuable insights, only through real-world trials we can identify and address potential risks.
This is why we are proceeding cautiously. Currently, 86 countries are conducting experiments and research on digital currency, and we continue to share knowledge and experiences with them.
For Rwanda, participating in this global effort is exciting but requires careful consideration. We want to avoid any unintended consequences that could arise from adopting digital currency.
QN: How is the BNR responding to global economic uncertainties?
ANS: Global changes are not new and will continue to occur. As the national bank, our approach is to employ highly skilled economists capable of conducting advanced financial analysis.
For example, when the COVID-19 pandemic emerged five years ago, no one had anticipated it. However, Rwanda successfully navigated the economic challenges and emerged stronger.
Similarly, we have adapted to the extreme price fluctuations caused by the Russia-Ukraine war and climate change, which continue to affect global markets. We understand that climate change, in particular, poses a significant threat to the agricultural sector, which in turn influences market prices.
Our ability to analyze economic data allows us to predict potential impacts of natural disasters and other shocks.
We collaborate with other institutions to mitigate risks early. Our current financial indicators suggest that we are maintaining economic stability. In the first three quarters of 2024, Rwanda's economy grew by 9%, placing us among the top 10 fastest-growing economies globally.
This growth gives us confidence that we can weather future changes. While we cannot predict everything, we have strategies in place to ensure the continued stability of our economy.
We remain optimistic that our economy will continue to grow steadily. Our projections indicate that inflation will be 6.5% this year and 4.2% next year, reinforcing our position of economic strength and stability.
IGIHE
