Category: Business

  • Over Rwf 64.6m State Funds Lost

    The Ministry of local government (MINALOC) caused a loss to the government worth Rwf 64.6m, it has emerged.

    It was disclosed during the on-going inquiries by parliamentary Public Accountants Commission (PAC) into different government institutions and ministries implicated in the 2009/10 auditor general’s report for mismanagement of public funds.

    According to 2009/10 auditor general’s report Rwf9.7 billion ($16.3 million) could not be accounted for.

    The report cites lack of support documents, embezzlement or mismanagement of public funds in many of the government entities.

    About 36 public entities incurred wasteful expenditure amounting to Rwf 1,054,529,243 (2009: Rwf 610,396,260 in 27 institutions) that could have been avoided had they complied with laws, regulations and procedures in force.

    Wasteful expenditure was mainly incurred to pay penalties to Rwanda Revenue Authority for failure and/or delayed remittance of statutory deductions.

    According to a press statement released by the lower chamber of parliament the loss of Rwf 64.6m was due to failure to demand for timely payment of loans, debts of motorcycles which were given to executive committees in different districts not recorded in the books of accounts by June 30, 2010.

    Others included debts in cheques that were not banked and not recorded in books of accounts by June 30, 2010 and funds for Vision 2020 Umurenge Programme(VUP) which were paid to individuals instead of collective funding.

    The quizzed team from MINALOC led by Cyrille Turatsinze the Permanent Secretary accepted having poorly recorded and mismanaged state finances and vowed to revise their management of funds.
    It was also disclosed that a deal to supply 1000 laptops to the Ministry of Local Government turned into a counterfeit computers supply.

    The laptops worth Rwf493.6m of which an advance payment of Rwf 98.7m was made, were meant for local leaders at cell level, aimed at facilitating them to have proper service delivery.

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  • RRA Refutes Public Claims Over Tax Ignorance

    Following Sunday’s Rwanda TV and Radio’s live talk where a member of public called in complaining of lack of information about tax issues, the tax agency has refuted the claims saying members of public pretend.

    In an interview with Nkusi Mukubu Gerald the Director of Tax Payers Services Department at Rwanda Revenue Authority (RRA) said that his institution had a lot to ensure public awareness on tax related issues.

    “It is so unfortunate if they are complaining, however we have done much to make the whole country covered with tax education, of course I can’t say it is 100% but at least 98% which wouldn’t result into such complaints,” Mukubu said by cell phone.

    Mukubu said that RRA has been carrying out several tax education in the country citing different events in up country including one that was carried out in Burera District in Northern Province.

    “Taxation issues are complex, you can’t know all of it but some of the tax payers do exaggerate and fail to see what government is doing for them and so some pretend they have not received any tax education, just yesterday I received a call from Burera District the same area we carried out a workshop and had a celebration of tax payers day recognizing the best tax payers,” Mukubu added.

    He however revealed that some of them have fear of arrears of taxes not paid in the past three years and end up creating pretext that they have no information about taxes.

    Mukubu called upon the public to suggest the best channel and way RRA can help them to be tax educated.

    “We have a hotline 3004 which one call and get answered by an expert who answers almost every query, we have a system that they can use to pay taxes or ask anything about taxes but they can propose to us which way we can use, we can adjust, we are flexible,” he added.

    Rwanda Revenue Authority (RRA) has set a target of collecting at least Rwf 533.8 billion in tax revenues during the current 2011-2012 fiscal year.

    Recently, the Commissioner General of RRA, Ben Kagarama, during the last fiscal year, the tax body had set a target of Rwf 458 billion, which they surpassed by collecting Rwf 491 billion.

    Among the challenges Kagarama cited were mainly tax evasion, giving an example of taxpayers registered for Valued Added Tax (VAT) but who fail to issue VAT invoices.

    The RRA chief further noted that some traders use forged documents by under-declaring their taxes through a reduction in turnover.

    ENDS

  • Entrepreneurs Recieve Marketing Skills

    In partnership with International Finance Corporation (IFC Rwanda), the Centre for Business Solutions (CBS) is training Kigali entrepreneurs in marketing skills for their work and sales.

    Patrick Kagabo, the CBS manager told igihe.com that this training aims at enhancing entrepreneurs’ skills in dealing with their businesses.

    “We help them at enhancing their skills in doing their marketing system. It is good that people start understanding the role of these trainings that could change their way of working”, said Kagabo.

    He added that this helps increase their practical skills because most of them are used to theoretical skills got from schools.

    One of the trainers Jimmy Rutabingwa says that trainings opened their eyes as business people and this will help to make their businesses known.

    “These trainings will help us to get their eyes open as entrepreneurs.All of them will put this into practice and let me mention that time is now”, said Rutabingwa.

    One of the trainees, Christian Mutembe told igihe.com that he welcomed the initiative by the Centre for Business Solutions.

    “On my behalf, this training was successful. We got to know how to make things into practices. I get out of here with much knowledge and skills to improve my business”, stated Mutembe.

  • Press Release: Suzan Rice Touring RDB

    SUZAN RICE TAKES A TOUR OF THE RWANDA DEVELOPMENT BOARD’S ONE STOP CENTRE

    The United States Permanent Representative to the United Nations, Ambassador Susan E. Rice met with Senior Officials at the Rwanda Development Board (RDB) and some private sector investors in the ICT and Hospitality sectors to discuss and observe first-hand the current business environment in Rwanda.

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    At RDB, Ambassador Rice was taken around the investor One Stop Centre and various services including company registration, sector specific certifications and licenses, environment clearance and issuance of investment certificates, were explained.

    During the visit, it was explained that the Rwanda Development Board is not only a One Stop Shop for investors but a single point of contact for guidance on laws, policies, incentives, investment climate and trends, investment opportunities, costs of setting up a business, process of finding land and sector specific information.

    In addition, the One Center provides work permits and visas, tax exemptions and payment, construction permits, utilities and notary services.

    The Ambassador also heard from the private sector members about their experiences in doing business in Rwanda, their plans for the future and what is on their wish list.

    Ambassador Rice is in Rwanda on an official visit to various organizations and meets with Ministers and other dignitaries to witness Rwanda’s progress over the past several years, particularly in health, agriculture and in the economic sphere.

    ENDS

  • RDB Launches Program For Rwandan Exporters

    Rwanda Development Board in collaboration with TradeMark East Africa has launched a program to facilitate ten dynamic Rwandan companies export their goods to the neighbouring country, Uganda.

    The top ten companies are selected based on their quality products and will be helped to market their products on Ugandan market.

    This initiative comes after government approved the National Export Strategy and is the first phase of the implementation of RDB’s Rwandan Export Development Programme.

    “This is exactly the sort of practical hands-on support our companies need. I hope that many companies from all production sectors will contact us to participate in the MarketLink Uganda programme,” said Eusebe Muhikira, the Acting Head of the Export Promotion Department.

    “The MarketLink initiative aims to help develop business ties between manufacturers and buyers in the East African Community. In particular it aims to capitalize on opportunities for intra-regional trade and business arising from the formation of the EAC Common Market.” Mark Priestly, Country Director of TradeMark East Africa, the donor programme that is funding this pilot initiative.

    Following selection of the top 10 Rwandan companies, samples of their products will be taken to the Uganda by RDB staff.

    Then, together with the TraidLinks team in Uganda they will undertake an intensive on ground research exercise to find buyers, show them the products and get them interested in meeting with the Rwandan producers.

    Participating companies will then be taken to Uganda and introduced to their potential trade partners and each Rwandan company will have an itinerary of individual face to face meetings with a range of Ugandan businesses.

    Traidlinks is an Irish company with a base in Kampala, set up to promote enterprise development focusing strongly on growth and improving the productive and overall corporate competitiveness of businesses.

    Through TradeMark East Africa, a cost-effective regional aid delivery mechanism has been established that can focus on building long-term East African capacity.

    TradeMark East Africa provides a durable platform for scaling-up of Aid For Trade to East Africa.

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  • Rwanda’s Bank Gets Rwf 7.4bn Boost

    One of the largest banks in Rwanda has received a whooping boost of Rwf 7.4 bn from the African Development Bank (AFDB ).

    Bank of Kigali (BK) has signed a US$ 12m (Est. Rwf 7.14bn) line of credit and a US$ 500, 000 (Est. 297,500,000) grant agreement for technical assistance from the fund for African Private Sector.

    According to BK’s Managing Director, James Gatera the credit will improve the bank’s liquidity and its ability to support key economic sectors, such as infrastructure, manufacturing, agri-business and tourism.

    “I am pleased that BK is once again able to secure wholesale funding at competitive rates, this credit line will enhance the bank’s ability to increase provision of financial services in the country,” Gatera said.

    The technical assistance grant will strengthen the capacity of the Bank of Kigali as it pursues its strategy to bank the unbanked population and increase financial services in Rwanda.

    It will improve the Bank’s capacity, including designing and implementing environmental policy and aligning it to Rwanda’s commitment to environmental conservation for sustainable economic development.

    The AfDB’s financing and support to the Bank of Kigali is in line with the Rwandan government’s strategy to deepen the availability of banking services by supporting local Rwandan banks and microfinance institutions in their efforts to expand banking services to rural Rwandans.

    The Bank of Kigali has become one of the largest banks in Rwanda, now said to be well positioned to channel funding to micro- small- and medium-enterprises and infrastructure projects.

    The AfDB estimates that 2,075 jobs will be generated in the sub-projects financed with resources from the line of credit.

    Approximately 60 percent of jobs created will be for skilled workers and the beneficiary companies will likely increase their incomes by about 10 percent over the same period.

    Negatu Makonnen the AFDB Country Director noted that the credit line will boost the economic growth by not only generating employments but also business opportunities, especially for micro-small and medium enterprises.

    “The AfDB’s credit facility intervention will help Rwanda’s financial system by making long-term financing available to the Bank of Kigali and its clients, especially local small and medium enterprises” said Negatu Makonnen, AfDB’s resident representative in Kigali.

    “By supporting the growth of local companies, the line of credit will indirectly facilitate job creation and economic empowerment of the beneficiaries, including women and youth, through increased revenues, increased income, and increased capital,” he added.

    The AfDB’s public sector lending operations in Rwanda currently amount to USD 966 million, comprising multi-sector investments in agriculture, transport, human development, public utilities, finance, and industry, mining and environment.

    The AfDB has also approved five on-going multinational projects amounting to USD 179 million. From its private sector window, the AfDB is funding eight projects amounting to USD 87 million.

    This includes financial and technical assistance to the private sector through the Banque Rwandaise de Développement (BRD) and the Bank of Kigali, and direct financing of productive investment projects such as CIMERWA for cement production, and Kivuwatt Power for clean energy.

    The African Development Bank Group’s mission is to help reduce poverty, improve living conditions for Africans and mobilise resources for the continent’s economic and social development.

    With this objective in mind, the institution is assisting African countries – individually and collectively in their efforts to achieve sustainable economic development and social progress.

    In 2011, the Bank of Kigali became the second domestic company to be listed on the Rwanda Stock Exchange.

    It has a credit rating of A+/A1 by Global Credit Rating Agency from South Africa. In 2009 and 2010, the Bank of Kigali was recognized as the Best Bank in Rwanda by emeafinance, in addition to Bank of the Year by the Financial Times.

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  • WB Launches Rwanda’s Economic Update Report

    Different economic and financial specialists from World Bank(WB) and government of Rwanda have converged in a meeting to launch the second edition of the Rwanda’s economic update.

    Comments about the findings from a number of stakeholders are emerging as the house hold enterprises report.

    In a press release by WB has indicated that Rwanda has had resilience economic adversity and her growth prospects remains favourable.

    “This resilience is a result of sound macroeconomic management in times when regional and global shocks are having adverse consequences for many neighbouring countries,” Johannes Zutt the world bank country Director for Rwanda.

    The report titled resilience in the face of economic adversity: policies for growth with a favor on household enterprise predicts Rwanda’s 2011 growth at over 8 percent a growth rate that is stronger than forecast for Sub-Saharan Africa as a whole.

    It also indicate that Rwanda’s economic growth in the first half of 2011 was led by strong performance in the industrial and service sectors.

  • Book Review: East African Progress

    Title: East African Literature: Essays on Written and Oral Traditions
    Co-editors: Egara Kabaji, Dominica Dipio and J.K.S Makokha
    Publisher: Logos (Berlin, 2011)
    Volume: 510 pages

    Fostering the literary integration of East Africa

    As renewing of the economic, political and social integration of East Africa progresses steadily, the region’s distinguished literati are also rising to the occasion, so to speak.

    With this collaborative book, East African Literature: Essays on Written and Oral Traditions, the various contributors seek to “participate in the on-going process of cultural reawakening in East Africa”, among other things.

    Unlike previously when the East African Community (EAC) comprised of Uganda, Kenya and Tanzania, the literati are obviously aware that East Africa is wider and broader than that.

    Seasoned and younger literary critics and works from Rwanda, Burundi, Somalia, Djibouti, Ethiopia, Eritrea and Southern Sudan, many of whom are either based in their home Universities and others abroad temporarily and permanently, took part or are featured.

    “This collaborative book brings to the intellectual world of literary studies fresh reflections, perspectives and criticism on contemporary East African literature and orature.” It’s well known that East Africans have more similarities, like Swahili being the growing regional lingua franca, than differences.

    This extends to societal issues such as the traditional subjugation and subordination of women, which is discussed a great deal in this volume, as captured by the various representative writers and artists’ works.

    “The structure of this book moves from the general to the particular while capturing generic aspects of contemporary East African literature by way of a number of genres and examples.”

    From the view of body as text (“the unsaid”), to the form, style, content (theme and context), the esteemed literary scholars and critics unravel the information communicated by the suitable/selected literary works.

    The book commendably encompasses all genres with “focus on current stylistic trends, narratological issues and thematic concerns.” For their profoundly informative essays, the academics insightfully draw from established and emergent writers, poets, dramatists, and musicians in the region.

    In her essay, for instance, Dr Dominica Dipio, head of the Literature department at Makerere University, uses Julius Ocwinyo’s Footprints of the Outside and Goretti Kyomuhendo’s Waiting to examine the fictional rendition of Uganda’s troubled history.

    However, the image of women in art seems to attract more thematic concern, with most works and essays across the region analyzing the same issue. For example, Jairus Omuteche and Lenox Odiemo-Munara argue in their essays that unlike many other works in the region, Margret Ogola’s Place of Destiny and Elieshi Lema’s Parched Earth: A Love Story, from Kenya and Tanzania respectively, attempt to portray women and their struggle in a positive light.

    Language is taken as taken as a tool for advancing male dominance in society. Beth Mutugu, in her feminist perspective on several Swahili novels by the late popular Tanzanian novelist Ben Rashid Mtombwa, sees English and Swahili (the dominant African literary language, beside Amharic in Ethiopia) as inherently sexist; “the two languages are systems that embody sexual inequality.”

    Sexual inequality and discourse is also apparent in the form and style of a variety of oral poetry such as among the Borana in northern Kenya, and vernacular literary traditions across the region, like in the Nyatiti musical performance of the Luo community.

    But in Clara Momanyi’s essay on a popular Kiswahili play, Mama Ee, by Kenyan Feminist writer Katini Mwachofi, she raises concern about the “need to critique African literary works composed in Africa by African writers through the use of African feminism.”

    Other crucial issues tackled in this broad literary critique include the “alive and kicking” style of the Kenyan novels with Swahili code-switching, criticism of the political establishments, the HIV-AIDS scourge, style in children literature, and the transitional art of Somali drama “representing the experience of a society in a testing period of change.”

    This illuminatingly brilliant literary collaboration on East African Literature comes on the heels of other remarkable initiatives and works such as James Ogude and Joyce Nyairo’s Urban Legends, Colonial Myths: Popular Culture and Literature in East Africa, Performing Community: Essays on Ugandan Oral Culture also edited by Dominica Dipio, Lene Johannessen and Stuart Sillars, Kwani?, among others. The book can meanwhile currently be purchased from Amazon.com, and will soon be available in accessible bookstores in East Africa.

    Last but not least among all, the book’s editors are esteemed academicians worth applauding. J. K. S. Makokha teaches courses on African, Caribbean and South Asian literature in the Institute for English Philology, Free University of Berlin; Professor Egara Kabaji is the Director of Public Communication and Publishing, and a Professor of Literature, at Masinde Muliro University of Science and Technology; and Professor Dominica Dipio is current head of Literature Department in Makerere University.

    Higenyi is a Freelance Writer/Reviewer

    Email: [email protected] or

    [email protected]

  • Rwandair To Launch New Routes

    The National carrier, Rwandair Chief Executive Officer John Mirenge has announced that the carrier will open new routes that will connect it to the world .

    In an exclusive interview with igihe.com, Mirenge said that this will make the country more accessible bringing growth and expansion for the business community, tourism sector, and leisure among others leading to the economic growth.

    “As a landlocked country the movement of people and goods is very vital not only for those who need to get out of Rwanda but also for those who need to easily access Rwanda,” Mirenge has said in his Kigali International Airport based office.

    Mirenge noted that one of the company’s key targets is to make the country accessible through opening new routes so that investors can access Rwandan market.

    He also added that RwandAir will also offer key and vital links between Rwanda and key hubs in the East African region, and to other destinations.

    Another benefit is local businessmen to access other markets in different parts of the world for exportation and also importation as a way which contributes to the development of the country.

    “By choosing a strategy to fly to key hubs, the national carrier has certainly laid a good network that will enable the positive growth already anticipated in tourism, and other key pillars to economic development like business and leisure,” Mirenge said.

    “For the country like Rwanda which is landlocked; to reach its growth and development, it needs to be accessible,”

    Mirege also said that as a national carrier it is a contributor to the national economy through the number of passengers transported in and out of Rwanda.

    “The number of passengers transported in and out of Rwanda, now averaging about 15, 000 passengers a month. We expect that with increase in frequencies to our destinations and as we introduce newer destination we will witness the national carrier contribute more both directly and indirectly.” He pointed out.

    Rwandair is a national carrier that is still in its infancy stages after the government fully owned it in 2010.

    According to its CEO, the carrier now owns seven aircrafts including recent introduced two Boeings 737-800 that are already operational, and that the staffing levels currently stand at around 540 employees with about 65% Rwandan citizens employed in commercial and other administrative positions.

    By the country’s vision 2020, the carrier intends to increase to 18 aircrafts.

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  • ICGLR Warns Of Indirect Rebel Support

    The International Conference on the Great Lakes Region (ICGLR) Program Officer in charge of democracy and good governance Silas Sinyigaya has warned of supporting rebel groups in DR Congo while buying illegal minerals.

    Sinyigaya was attaining a meeting to elect members of independent audit committee of ICGLR secretariat.

    “Whether one does it knowingly or unknowingly, in one way or another he ends up supporting those rebel groups in the jungles of DR Congo”

    “People who buy minerals should follow regulation put in place in accordance to the Lusaka declarations by heads of states, by following those regulations one can avoid buying minerals from negative forces,” Sinyigaya has said.

    Sinyigaya said that the 3rd part of the auditing system will enhance mineral certification and guarantee that mineral chains are conflict free.

    “All of these is being done to prevent negative forces access to minerals, illegal exploitation of minerals helps the groups finance their activities which destabilize the region,” Sinyigaya explained.

    He said that the rebel groups in DR Congo were benefiting from and striving to earn a living from these natural resources.

    Several countries among the 11 members of the ICGLR are working closely to eliminate the rebel forces to achieve regional security.

    The rebel groups hiding and carrying on several brutal attacks in DR Congo include Forces Democratiques de Liberation du Rwanda (FDLR) and Lord’s Resistance Army among others.

    In an effort to fight cross boarder smuggling of minerals, Rwanda’s minister of lands and mines Stanislas Kamanzi on Thursday handed over 80 tones of minerals to DR Congo government.

    Ends