Abstract: The purpose of this study was to examine the effect of horizontal foreign direct investment in the banking industry on the business growth of Rwanda a case of Equity bank Rwanda; one of the foreign subsidiaries in Rwanda. The objectives of the study included among others; to examine the effect of bank investment on business growth, to identify the influence of bank loans on business growth, to analyze the effects of bank technological services on business growth, and to ascertain the influence of loans on profitability. The researcher used a case study. The researcher used primary and secondary methods as sources of data for the research while the collected data were analyzed by editing, coding, tabulation and SPSS software. The target populationwere the business class customers of Equity bank Rwanda subsidiary taking a sample size of 189 customers. The sample size was arrived at using simple random sampling technique and the researcher used Slovin’s formula [n=N/1+N (e)2] to find the sample size. The formula is sometimes called Sloven’s formula and was formulated by Slovin in 1960. In the findings, it was established that the respondents complained of limited Equity bank branches in different parts of the country. It was discovered that business loans had boasted the respondents’ investments. Small businesses were highly preferred by the business customers. Some guidance on how to use the loan was given to the customers. It was discovered that high taxes were reducing the respondents’ profits. Agent banking was operating in the cities and city suburbs but very rare in rural areas. There were few customers undertaking corporate businesses; interest rates on business loans were very high; there was limited use of credit cards, PoS and Telecos. The charges for a debit card at Equity bank Rwanda were very high compared to what other banks in Rwanda charged. The study recommended the following to both the bank and policy makers; increasing agent banking business in rural areas, introducing mobile banking to upcountry areas, opening up more branches and outlets in all parts of the country, advertising widely all Equity bank Rwanda technological services to the public, reducing the costs of using technological services and finally giving both local and foreign investors tax holidays as well as lowering taxes.
Keywords: Horizontal Foreign Direct Investment, Equity Bank Rwanda Subsidiary, Business Growth.
Title: Effect of Horizontal Foreign Direct Investment in the Banking Industry on Business Growth, (A Case Study of Equity Bank Rwanda Subsidiary)
Author: Kalinganire Peter, Dr. Olweny Tobias, Dr. MbabaziMbabazize
International Journal of Thesis Projects and Dissertations (IJTPD)
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