LONDON - The investment company Atlas Mara Co-Nvest, backed by the former Barclays chief executive Robert E. Diamond Jr., has agreed to a second investment deal in the African financial sector.
Rwanda’s government said Sunday that it had signed a non-biding memorandum of understanding with Atlas Mara to privatize the commercial arm of the state-owned Development Bank of Rwanda.
“This partnership is in line with Atlas Mara’s vision which is building a leading African financial services group,†Mr. Diamond said in a statement. ‘Rwanda is a model economy that will continue to benefit from the engagement of the private sector.â€
Atlas Mara views the investment as an opportunity to create a privately run financial services group in Rwanda, which will help the firm expand into the East Africa market.
The deal comes less than a week after Atlas Mara announced its first purchase in Africa.
Last week, the company said it would take a majoriy stake in ABC Holdings, which operates the African bank BancABC, and would acquire its controlling shareholder, ADC African Development Corporation, for about $265 million in cash and shares.
The agreement with the Rwandan government was signed on the 20th anniversary of the 1994 genocide by the Hutus of an estimated 800,000 members of the Tutsi ethnic group and Hutus believed to be sympathetic.
In recent years, the country has experienced a turnaround under its President Paul Kagame.
Ashish J. Thakkar, co-founder of Atlas Mara with Mr. Diamond, fled Rwanda during the genocide. Mr. Thakkar went on to build the Mara Group conglomerate, which has technology, manufacturing and real estate interests in 19 African countries.
“Rwanda is a country that holds a very special place in my heart,†Mr. Thakkar said in a statement. “I am proud to have this opportunity to play a role in creating access to capital for the millions of young Rwandan entrepreneurs like me.â€
