Category: Opinion

  • Rwanda: 3rd Easiest Economy to Do Business in Sub-Saharan Africa

    Rwanda’s performance in the Doing Business Rankings in recent years has been exemplary, drawing attention from international observers and investors alike. Improvements have been made across the board.

    The 2013 World Bank Doing Business Report has ranked Rwanda 52nd out of 185 countries. In the overall performance, Rwanda is still the best performing country in the East African region as well as 3rd easiest place to do business in Sub-Saharan Africa (1st is Mauritius which ranks 19th globally, 2nd is South Africa which ranks 39th globally, 3rd is Rwanda which ranks 52nd globally, 4th is Botswana at 59th globally and 5th is Ghana which ranks 64th globally.

    A non-Sub-Saharan African country that also performed well was Tunisia at the 50th position globally.

    According to the survey; 185 Economies are ranked on their ease of doing business. A high rank on the ease of doing business index means the regulatory environment is more conducive to the starting and operation of a local firm.

    The report, Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises found that from June 2011 to June 2012, 28 of 46 governments in Sub-Saharan Africa implemented at least one regulatory reform making it easier to do business-a total of 44 reforms.

    Rwanda particularly stands out as having consistently improved since 2005. A case study in this year’s report features Rwanda, which since 2005 has implemented 26 regulatory reforms (over half of Sub-Saharan Africa’s annual reforms) as recorded by Doing Business.

    Rwanda has been recognized for making improvements in two areas of regulations: Enforcing Contracts (39th) and Getting Electricity (49th).

    The country made enforcing contracts easier by implementing an electronic filing system for initial complaints whereas the country eased getting electricity by reducing the cost of obtaining a new connection by 30%. Rwanda’s ranking per indicator has improved.

    Looking at areas where Rwanda is still strong, the Starting a Business rank has remained the 8th easiest in the world, with Company registration taking only two procedures and the whole process of incorporation is concluded in just 6 hours. In ease of Paying Taxes, Rwanda is 25th easiest place globally.

    Rwanda recognizes that the momentum to reform should be maintained if not doubled and in particular where we have challenges.

    This is precisely why Rwanda managed to improve over the last ten years. Rwanda has moved from 150th in the 2008 report to now 52nd in the 2013 report with consistent reforms every single year.

    In comparison to her neighbors in the East African region, Rwanda still leads her partner states. Uganda is the second in EAC ranked at 120th globally, Kenya the third in EAC and ranked at 121st globally, Tanzania is fourth and ranked at 134th globally whereas Burundi comes fifth in EAC and ranked at 159th globally.

    Outside the EAC, but neighboring Rwanda is the DRC ranked at 181st globally.

    Beyond the Doing Business index, Rwanda’s performance is consistent with the World Economic Forum (WEF) Competitiveness index where for the second year running, Rwanda emerged among the top countries (3rd) in Sub-Sahara Africa.

    The Global Competitiveness Index (GCI) is based on 12 indicators that include the strength of the economy, education and social welfare, innovation among others.

    The Minister of Trade and Industry, Hon. Kanimba Francois welcomed the report. “We have seen consistent improvement, both in competitiveness and ease of doing business. Rwanda continues to be one of the top places to invest in Africa,” he affirms.

    “For all these records, Rwanda’s performance in this year’s index is a sign of the country’s commitment to achieving its economic goals,” said Clare Akamanzi, the Chief Executive Officer at the Rwanda Development Board (RDB).

    “This demonstrates Rwanda’s commitment and consistency in its vision of economic development. We will work very hard to address remaining challenges to make Rwanda even more attractive as a business destination,” she added.

  • RwandAir Recieves New CRJ900 Jet

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    Rwandair has added to its fleet a brand new CRJ900 Bombadier aircraft. Now Rwandair owns seven planes.

    It arrived at Kigali International Airport October 22.

    The CRJ900 aircraft is the first of its kind to operate in the east and central Africa.

    RwandAir Chief Executive Officer, John Mirenge, says the new plane will concentrate on regional routes.

    “We want to increase our destinations and by the end of this year we shall be operating in South Sudan, Cameroon, Zambia and Zanzibar,” he said.

    in the next six years, the National Carrier targets to expand its fleet to 18 planes.

    Minister of Infrastructure, Albert Nsengiyumva says, “The purpose of purchasing more planes is also to attract other airline companies.

    Besides, the number of passengers coming to Rwanda is increasing because of different destinations that RwandAir makes.”

  • Citadel Capital Voted Africa’s Leading Private Equity Firm

    Citadel Capital, the lead investor in Rift Valley Railway (RVR), has been voted Africa’s leading private equity firm for the fourth year in a row.

    The annual Private Equity International 300(PEI 300) ranked Citadel Capital top in Africa on the basis of the $3.5b it raised for investment projects on the continent between 2007 and 2012.

    The PEI 300 ranks similar equity funds globally and is in its sixth year.

    “Africa is long on opportunities but short on capital and management expertise. Since inception, we have focused on creating platform investments that offer solutions to pressing national challenges,” said Ahmed Heikal, the chairman of Citadel Capital.

    “With investments such as RVR of Kenya and Uganda and the Egyptian Refining Company, we are creating companies that will solve challenges and multiply trade flows.”

    Egyptian-based Citadel has raised and invested more than $4.9b in the Middle East, North Africa and East Africa since its inception in 2004.

    It has recently completed the finanacing for a five-year turnaround programme at RVR worth more than $330m.

  • Rwanda, Tanzania Sign Deal to Boost Cross-Border Trade

    Rwanda and Tanzania have signed an agreement to boost cross border trade by eliminating trade barriers.

    The deal was signed on October 17 in Kigali by Rwanda’s trade and Industry minister François Kanimba and the deputy minister for Industry and Trade in Tanzania, Gregory Teu.

    The agreement marked the climax of a bilateral meeting on elimination of non-tariff barriers (NTB’s) and the promotion of cross-border trade between the two countries.

    Mr Kanimba observed that Rwanda and Tanzania were important trading partners with a firm commitment to increasing trade and cooperation.

    “I hope with these relations, Rwanda and Tanzania will cooperate to further increase small trader cross-border business,” he said.

    Kanimba added that the agreement will further help the two countries remove barriers to trade and create a favourable business environment to facilitate trade.

    “It is important to eliminate all reported trade barriers and refrain from introducing new ones in order to cut the high cost of doing business and take advantage of all the benefits of regional integration,” he said.

    According to statistics, Tanzania was Rwanda’s seventh largest trading partner in 2011, accounting for four per cent of Rwanda’s international trade and 17 per cent of regional trade.

    Teu said “We expect from this bilateral relations, our citizens from the two countries to trade among themselves easily,” he said, adding that the elimination of non-tariff barriers will reduce the costs of doing business between the two countries.

    The Executive Secretary of Rwanda Long Distance Truckers Association, Theodore Murenzi, said: “I am happy that the two countries have agreed to eliminate NTBs which have been affecting us, especially because we lose money and time along the corridor which impacts on our businesses.”

  • Rwandair Expecting New Planes

    National Carrier Rwandair will recieve two new planes on Monday adding to its fleet with two new aircrafts from Bombardier Aerospace of Canada.

    Following a handover ceremony held at Bombardier’s Mirabel, Québec facility, on Friday, CRJ900 NextGen regional jets will touch ground in Rwanda at Kigali International Airport.

    John Mirenge, Chief Executive Officer of RwandAir,says, “This means a lot to us. It is an addition of two brand new aircrafts that have been added to our existing fleet of five, making it seven in total.”

    “This will give us more capacity in terms of seats that we can offer to our customers and it opens up capacities for us to extend our reach into further destinations within the African continent.”

  • Educating Girls Can Save a Nation

    When I was young, one of my best friends lived in my grandmother’s village. I saw Chrissie every weekend as we made our way through childhood — she in the village school and I in the town school.

    We finally came together as students in secondary school.

    Sadly, Chrissie studied with me for only one term, as her parents could not afford the school fee of $6. She returned to her village, married early and had more than a half-dozen children. She lives there still, locked in poverty.

    My parents, on the other hand, could afford the school fees, and I was lucky enough to finish my schooling and eventually to run a successful business. Now, I am president of Malawi.

    On Wednesday, I take the floor of the U.N. General Assembly as the second female president of an African country, and one of about 14 in the world, I am honored to bring my message of hope for Malawi and for Africa to the world.

    When I travel through my country and talk to the people, I see myself and Chrissie in the children I meet, who are bursting with intelligence and creativity and joy.

    But when I take the stage at the United Nations to represent my country, I also represent the parents of Malawi’s children, the women who fear the dangers of giving birth and the men who search desperately to find work to pay for their families’ basic needs.

    The bad news about Malawi is not news to anyone. About 85% of Malawians live in rural villages in extreme poverty; AIDS and malaria are rampant.

    A single crop failure can ruin so many. These development challenges are intertwined in the lives of Malawians, and we must fight for progress on many fronts if we are to lift my country from poverty.

    The journeys of women in my country — and in countries all over the developing world — are never easy.

    The health of our women in particular is central to many of our development challenges, and is an issue to which I have been devoted since I almost lost my life delivering my fourth child.

    It was only because I was fortunate enough to have access to a specialist in a hospital that I am alive today.

    Last year, I visited a hospital where a baby had just died. Born in the dark of night with no electricity, that child had the cord wrapped around her neck and no one had seen it. In clinics I see women waiting to give birth on the floors of the corridors because there is no other place.

    When I took office, I launched the Presidential Initiative for Maternal Health and Safe Motherhood, a project that I hope will reverse the poor access to reproductive health services for women in my country.

    Our girls, 15- and 16-year-olds, are having children themselves; they should be going to school, and we must support them and provide them with family planning education.

    When we empower women with education and access to reproductive health services, we can lift an entire nation. Women who can choose when to have children and how many they will have are more likely to complete their education, start small businesses and participate actively in society.

    And as I witnessed with my friend Chrissie, education itself is vital to give women that choice in the first place. This is why efforts to improve the lives of women and children reinforce efforts to strengthen our economy and reduce poverty.

    After the speeches of the world leaders are over, the U.N. General Assembly will come together to determine how it will tackle poverty and set benchmarks to measure progress in economic development.

    I will do everything I can to make sure that women’s reproductive health remains a central focus.

    We cannot afford to squander the potential of girls such as Chrissie any longer.

    The Author is President of Republic of MALAWI

  • Nigeria’s Domestic Debt Hits US$39.5Billion

    The Nigerian Debt Management Office ( DMO) has disclosed that at end June this year, the nation’s External debt stood at US$6.035Billion and Domestic debt at US$39.456Billion.

    It added that of the US$6.035 billion foreign debt commitment, the Federal Government’s portfolio is US$3.820 billion, while the balance of US$2.214 billion was the portion being held by States representing 63.30% and 36.70% respectively with total debt / GDP Ration of 18.32% far below the 40% threshold approved for countries in Nigeria category.

    The Director-General of the Agency, Dr. Abraham Nwankwo revealed this October 18, when the Senate Committee on Local and Foreign Debts visited the Agency on an oversight mission.

    Dr. Nwankwo added that the body had concluded the debt reconstruction exercise in all the 36 States of the Federation,including the Federal Capital Territory ( FCT), aimed at ascertaining their debt commitments.

  • Google Shares Drop 9%

    Google suffered an embarrassing gaff when its third quarter financial results were accidentally released early, which ultimately led to its stock price falling by more than $60 a share Oct. 18 while the markets remained open.

    Times got a bit rocky for Google Oct. 18 as the search company announced that its third-quarter profit totaled $2.18 billion, down from $2.73 billion a year ago.

    However, that wasn’t the worst of it – Google also suffered an embarrassing early release of its third-quarter Form 8-K report to the Securities and Exchange Commission’s Web site, which meant the financial data was accidentally available four hours before the stock market was set to close.

    That accidental report release triggered an early selloff in Google shares, with share prices dropping by about 9 percent before the sale of shares were eventually halted, according to a report by Barron’s.

    Google’s third-quarter revenue for the period ending Sept. 30, 2012, totaled $11.33 billion, which is lower than the expectations of a survey of financial analysts, who expected revenue of $11.87 billion.

    In his opening remarks during the earnings call with analysts, Google CEO Larry Page said the early report at 12:30 p.m. Eastern time was accidentally caused by the company’s financial printer.

    “I’m sorry for the scramble early today,” said Page. “Our printers have said that they sent out the release just a bit early.”

    Google’s revenue for the third-quarter is listed by the company at $14.1 billion, which is before the deduction of traffic acquisition costs totaling $2.77 billion. Q3 revenue for the same period one year ago totaled $9.72 billion.

    This was Google’s second quarterly earnings report since acquiring its Motorola Mobility unit in May for $12.5 billion. In its second quarter earnings report this past July, Google posted revenue of $12.2 billion, which was a 35 percent year-over-year increase from 2011.

    “We had a strong quarter,” said Page. “Revenue was up 45 percent year-on-year, and we cleared our first $14 billion revenue quarter. Not bad for a teenager,” alluding to the 14 years since Google was incorporated.

  • DRCongo: Revelator of Western Hypocrisy

    “There is no instance of a country having benefited from prolonged warfare. ” Sun Tzu, the Art of War

    A highly regarded observer recently posted on his blog the following: “A lie repeated a thousand times becomes information, repeated by authorities it becomes truth”. He was referring to the narrative on the DRC crisis situation, I couldn’t agree with him more.

    A couple of years ago, the Donor Community was consistent in describing the Democratic Republic of Congo as a failed state. Calls for a dramatic change in the political landscape of that country reached a record high when it came time to elect a new President.

    Such criticism from the West has come to be widely expected, as Western Powers often view themselves as morally superior and irreproachable champions of ideals of human rights and freedoms; this delusion of grandeur and sanctity governs their approach to the rest of the World, especially Africa, serving us our daily dose of dependency on aid with unwanted dictates of how we should behave while receiving it.

    The ‘white knights’ are there to protect us against “new” invaders, such as China, and serve the cause of our dependency to their systems; effectively convincing some of us Africans of our incapacity to come up with homegrown solutions to our problems, and our inability to come together in executing them for the benefit of our people. The truth stands at antipodes of this assessment, and they know that to be a matter of fact!!!

    It seems to me that their greatest fear is not to see us fail, but rather to see us succeed… without them! For it is true that we are more likely to turn away from them rather than turn the other cheek, and rightly so!

    Despite their grim depiction of Africa, a quick fact check on where we stand speaks of a totally different story; the reality is that Africa has steadily demonstrated exemplary growth, despite the current global crisis, with East Africa as its best performer in terms of economic growth; this is the result of almost two decades of stability, security and state capacity build up at a domestic and regional level.

    The East African Community is the best example to illustrate how regional integration has been beneficial for member states, in terms of economic growth, sustainable regional peace and security.

    That which was best understood by the founding fathers of the European Union after two World Wars and a continental one, didn’t escape our own analytical minds; the undisputable fact that strength lies in the numbers, that any given people are much stronger together than apart, that regional integration contributes towards economic growth, through peace and stability, and is, therefore, better than being at perpetual odds with your neighbors.

    The Great Lakes Region of Africa could easily attest to that fact, if not for the troublesome DRC! Somalia and Sudan, in contrast, are, respectively, two examples of how regional players saw it in their interest to make contextual assessments of each situation, resulting in realistic roadmaps leading to stabilization and conflict resolution. In both cases, the International Community has been loudly supporting the African initiatives.

    Why the different stance when it comes to DR Congo? Different strokes for different folks, you say? Not really. Truth be told, the mineral riches of this troubled land seem to have everything to do with this double standards ever changing approach; until recently, President Kabila was the bad guy who needed to be replaced… now he is the good guy whose ‘sins’ can be forgiven and forgotten, if only he would deliver the head of one Bosco Ntaganda on a silver platter to the International Criminal Court (ICC).

    With his Presidency at stake, arresting the ex-rebel General, previously integrated in the regular army (FARDC) as a result of a peace deal, became Kabila’s number one priority as re-elected president, even if it meant plunging the country back into the pits of Hell.

    It was either that or enlisting the assistance of the very country that helped broker the peace with the CNDP: Rwanda. After the visit of Belgian Foreign Minister in Kinshasa, it became crystal clear that the chosen path was war, as Kabila made the announcement of the end of AMANI LEO (which literally means Peace Today); the gloves were officially off.

    Deprived of the wise counsel of his one-time adviser Mwanke Katumba, may his soul rest in perfect peace, Kabila found himself surrounded with warmongers who were convinced of their ability to defeat the ex-CNDP fighters, whom they believed to be in a weakened state.

    This newfound confidence in their armed forces was based on the new training received from their Belgian counterparts; according to Kabila’s entourage, victory would be swift and unforgiving!

    It is fair to conclude that the peace-loving, lesson-giving Donors pressured a poorly advised Kabila into launching a war with the risks of political escalation and setting the whole region ablaze… in the name of the WELFARE of the Congolese people!

    Interestingly, Rwanda was asked to assist in the arrest of General Ntaganda, first by the DRC, then by the Donor countries, suggesting (and where is the evidence?) that he was frequently spotted tossing beers inside our borders.

    This proved to be unacceptable to Rwanda’s Leaders, who plainly refused to subscribe to the notion that a solution for the DRC would be produced as a result of arresting a stakeholder in Congolese internal affairs; moreover, the approach was more accusatory then anything.

    Not used to taking ‘no’ for an answer, the Donors Community retaliated by openly accusing Rwanda of aiding and abetting the M23 insurgents; yet, they (Donors) are the ones to carry the full blame for the ensuing human tragedy; thousands upon thousands have lost their lives and many more fled to neighboring Rwanda and Uganda, in spite of Kigali’s warnings of such inevitable ramifications.

    Those who say that Rwanda has vested interests in Congo are partially correct: we do! But not the mercenary kind; the mineral wealth of the DRC is, indeed, not ours to share, contrary to claims from cynics and critics.

    Rwanda’s interests lie in our own prospects for regional peace and the limitless potential for economic growth through the region of the Great lakes, through mutually beneficial economic cooperation, business partnerships and intra-regional trade.

    That is what Rwanda has been doing in the past and the vision remains unchanged. The truth is that Western Donors made a tactical mistake and are now trying to make Rwanda a scapegoat , digging the ditch deep enough to bury their own guilt.

    Threats of annihilation of the M23 rebel movement in the midst negotiations for the establishment of a dialogue, by and large favored by regional players, is as reckless as it is potentially destabilizing. Why the sudden obsession with the M23?

    The FDLR, made up of remnants of the army and militia that championed the 1194 genocide, in contrast, never attracted nearly as much mobilization, yet their reign of terror and record of ruthlessness is a secret to none.

    Most troubling though is the US and UK authorities willingness to go above and beyond the call of the duty sanctioning Rwanda for a crime, they, admittedly have no tangible evidence to prove. Calls from Rwanda to be treated with fairness have been met with frozen aid and fake smiles all across the board.

    I am not so saddened by the withheld funds as I am outraged by the ease with which baseless accusations are given weight in the West when it comes to anything African. Not racist, you say?

    I beg to differ. Race is the elephant in the room nobody ever wants to talk about, because it makes people ‘uncomfortable’… well, get over it! If you are not of color, for lack of a better term, you might want to try sucking up the minor discomfort it may cause in your life for it will never amount to the level of torment it causes in ours (the coloreds).

    Western mainstream media has been propagating fictions labeled as facts without so much as second guessing their veracity for the sake of making news. And after repeating these falsehoods a thousand times, the lie became information, and as pointed out by the blogger at the beginning of this piece, authorities relayed the information and made it ‘truth’.

    Once this train had left the station, there was no turning back; not the questionable profile of Steve Hege who single-handedly masterminded the ignominious UN report, and the whole mess that ensued… not even the tearful cries for justice and peace of the suffering masses of the Kivu region.

    So why should I, as an African analyst, believe in those who have no moral authority to bring about a viable solution in this crisis? I’d rather trust the region and its stakeholders to come up with a comprehensive and lasting solution. Not a single one of them, let alone Rwanda, can afford to have this ‘Damocles Sword’ hanging over our heads for much longer.

    The wisdom of Sun Tzu in the Art of War says it best: “There is no instance of a country having benefited from prolonged warfare”.

    Albert Rudastimburwa is a social commentator and media owner in Rwanda.

  • Burundi Revenue Collection up by 9.1%

    Burundi has recorded a huge leap in revenue collection rising by 9.1% annually at US$257.5 million tax collection in the nine months to September.

    The anti Corruption efforts are paying off in a largely corrupt East African country.

    Burundi Revenue Authority says, “The tax base grew with a registration of 5,000 new contributors who were in the informal sector and who didn’t pay tax before.”

    Monthly tax revenues collected in September this year fell to 41 billion francs from 44.5 billion francs in September 2011.

    The board said this was due to the government’s decision to suspend tax on basic food imports to the landlocked central African country, to ease the impact of soaring prices of essential commodities.

    The decision came into effect in May and will last until the end of December.

    In order to plug a US$64 million revenue deficit on the current 2012 budget, the government has raised taxes on beer, liquors, mineral water and other beverages.