Category: Business

The ministry of commerce and trade has encouraged the youth to be business oriented after their studies; this will be conducted through songs competition organized by MINICOM.

“The youth should be aware of programs that the ministry plans for their better future,” Albert Bizimana told Igihe.com.

The best way to suggest business to youth, is to first study their likes and dislikes, that is why MINICOM prearranged a music competition to gather youth, the competition will bring onto stage Masamba, Dieudonne Munyanshoza known as Mibirizi, Augustin Mwitenawe, Butera, Alphonse, Samputu Jean Paul and so many more.

Albert further told igihe.com, “a small project by Rwandan youth to be supported and implemented is our aim. We support and supervise their activities. The victor will scoop Rwf2 million, the second Rwf1million whereas the third will take Rwf500,000.”

Asked on the conduct of nominations, Albert said all artists would record songs from various studios and submit on CD from which judges will determine the best one for the award.

Albert urges artists to register for the reason that prizes are good and this will also improve their ways of living and create awareness with their fans and also facilitate some in setting up small business.

The winners will be awarded at the end of this month.

More than Frw140million has been lost by the Moto taxi business in the month of August alone following the Police crackdown on motor cycles on the roads. According to motor taxi men, in a period of two weeks, a motor taxi earns over Frw70,000.

According to National Police report, over 70% to 80% of the road accidents arise from Moto taxis and therefore a result of putting much effort to reduce on the problem.

Chief Supt. Vincent Sano (C/o) of Traffic Police recently impounded over 1000 Moto taxis in August due to lack of full requirements.

However, the Moto Taxi men are unhappy with the operation saying that it is not fair and that instead, police should devise other possible ways of handling the issue.

Robert Imanishimwe, a moto taxi man working in the zone of Nyabugogo said, “We know well the police is doing its work but most of these bikes you see on the road are acquired through credit from the bank and if taken, that means you might even fail to raise money to repay the bank loan and end up in prison something that will hinder development.”

“I think the best way is to issue to defaulters a contravention notice and then continue with the business in order to be able to pay the fine asked and the loan as well.” Imanishimwe has all requirements and was speaking on behalf of his colleagues.

Martin Nihabose of Remera zone also noted, “When a Moto is impounded and taken, there is no security for it; that is during loading it on the lorry and offloading it because the police has no mercy at all, and that means it can be damaged in the process.”

Another Moto taxi man who declined to reveal his names but operating at Nyarutarama with incomplete requirements for his motorcycle said, “police these days has no mercy on us and I don’t know why, any small requirement missing; the bike is taken and kept for over two weeks which I think is not fair at all because most of us depend on this business.

This means that wherever I see police, I speed past the checkpoint or make a U-turn immediately something risky to the passengers.

The Private Sector Federation (PSF) has started training employers on negations in industrial relations which will enable them to interact well with their employees.

One of the trainers, Dirk Joosse, a senior consultant in the Association of Employers in Netherlands believes that employers ought to be flexible towards their employees if they wanted to improve their business productivity.

“In salary negotiation for instance, an employee might want a rise in order to cope up with the inflation which has affected the cost of living and in such a cases the employer should freely negotiate on the amount to be added despite the terms in the contract,” he said.

He added, “I mean if the employee is working in good conditions he will be motivated and work better”.

For bosses who are big-headed that also take lightly matters affecting their workers, a solution for such situations can be found in trade unions.

However, Joosse advised Rwandan employees to form themselves into vibrant trade unions since it facilitates advocacy for some of the issues affecting them.

“In some institutions you may find there’re no safety tools for those working in risky areas and likewise companies where employees don’t have medical insurance, the reason advocacy is essential, especially in pushing for the changes,” said.

His fellow trainer Jean Mukunzi who’s also an expert in industrial relations was quick to note that Rwandan labor laws suggest that in a company where there are more than eleven employees, there should be at least one representative to voice their concerns to the employer.

“Normally, the employees’ representative is a worker nominated by the employees and should communicate any problem his colleagues are facing,” he remarked.

Mukunzi also commended Rwandan laws but criticized a slow pace in implementing some of the policies which are essential.
He referred to the 80% salary insurance cover given to women who extend their maternity leave for extra six months.

“In Rwanda maternity leave was reduced from 12 to 6 weeks, where in the latter case, they get 100% of their salary while those willing to extend for 6 more weeks get 20%.

“That’s why there was a law meant to have an insurance cover for the remaining 80%, if this is implemented even those wishing to extend their maternity leave will receive their full salary,” he advised.

Besides heightening competitiveness in tourism, wildlife conservation and emerging among the top ‘Doing business Reformers, Rwanda is most attractive destination for workers from the East African Community (EAC) compared to the 4 member states of the bloc, a new study has shown.

According to the study, conducted by M.A Consulting Group, Rwanda has the highest labour market efficiency, the survey carried out in 2009 to assess the impact of the EAC Common Market protocol on an economic comparative study in terms of conduciveness to the labour force.

The other significant aspect is the attractive professional remunerations and timely payment by the Rwandan employers in both public and private institutions compared to the other member states where demoralized workers repeatedly demand for arrears in vian.

According to the Minister in charge of East African Affairs Monique Mukaruriza, The findings in the report will enable government to initiate development strategies to guide negotiations on the regional market protocol.

The minister said this while making keynote at the validation meeting of the final report where she emphasized the need to prepare the Rwandan labour market for competition against their counterparts from neighboring states.

“Workers in the services sector should become innovative and tap the better skills from the other EAC partner countries,” Mukaruliza observed.

The study highlighted the impact of the Common Market Protocol on other sectors, especially free movement of goods, services, capital within the regional five member states, a bloc that analysts believe has a serious socio-economic development potential.

The report also indicates that EAC trade regime has a net positive welfare effect on the Rwandan economy compared to the other members.

The Minister in charge of Trade and Industry Francois Kanimba who is former Governor of Central Bank said that much emphasis should focus on diversifying domestic production to widen export base as member countries advocate for free movement of goods and services.

The Common Market Protocol was signed by the EAC Heads of State on 20 November 2009 but economic pundits believe the common market protocol is taking snail’s pace to due to unnecessary bureaucracy.

By: Igihe.com Reporter

Champion Investment Corporation (CHIC) boss Tharcise Ngabonziza has said regulating sugar prices is on course and soon the initial price of sugar will be attained and stabilized across the country.

The above mentioned CHIC is a registered company comprised of 67 Rwandan successful businessmen who have recently been tasked by the Ministry of Trade and Industry to devise ways of regulating escalating sugar prices.

Ngabonziza the CHIC chairman board of directors told Igihe.com in an interview that they have taken charge of the situation by buying all the sugar direct from Kabuye Sugar Works and selling it to retailers.

“What we have done is eliminating the intermediary traders because they would still want to obtain more profits and hence speculators emerging. We are selling it directly to retailers other than wholesalers and of course the situation has not yet normalized, the price of the sugar has now gone to Frw 1,000 but in some places it is at Frw 800,” Ngabonziza said.

He added,“we have also made a list of businessmen who will act as our agents in different business centers where final consumers can simply recognize and go for their cheap sugar”.

He further explained that the imported sugar from Tanzania and Uganda has also decreased from Frw 48,000 to Frw 41,000 and it is expected to decrease more.

Recently the government decided to waive 100% taxes on imported sugar from outside the East African Community bloc in a bid to reduce the escalating sugar prices.

Rwanda has also written to the member states requesting to waive taxes on imported sugar from outside the bloc and the decision is yet to be reached.

According to Francios Kanimba the Minister of Trade and Industry who called for a press briefing recently, Rwanda’s decision a head of member states joint decision aimed at getting immediate solution due to emergency situation that prevailed.

The escalated prices were due to the scarcity of sugar in the country which made wholesalers dictate their own prices.

Sugar from outside the region attracts Customs duty of 25 per cent and a VAT of 18 per cent. Sugar scarcity that caused its inflation has become a global issue, noting that several factors like floods in the world’s sugar production countries aggravating the problem.

Several factors have also affected world’s sugar production countries like Brazil, India and political instability in Egypt which resulted in low production of sugar with available huge demand in the new markets like South Sudan and DR Congo.

Sugar crisis is expected to prolong than the predicted period due to drought in East Africa Community bloc.

Rwanda is facing a shortage of around 30,000 tons of sugar with current consumption standing at an annual 40,000 tones which has been covered by imported sugar from Tanzania, Uganda, Kenya, Zambia and Malawi.

Tanzania, Uganda, Rwanda and Kenya together consume more than 1.5 million tons of sugar per annum.

Globally, consumption is forecast to grow at the rate of 2.19 per cent to 165 million tons of raw sugar.

However, world sugar production has been revised downwards in the recent past (2008/2009) to 149.3 million tons raw value.

Information reaching Igihe.com indicates that Consumer prices in country’s urban areas rose to 7.14% in July as food prices climbed, especially in vegetables, meat and non-alcoholic beverages. The Inflation accelerated from 5.82% in June.

According to a consumer index report issued by the National Institute of Statistics of Rwanda (NISR) today, Food and non-alcoholic beverage prices rose by 1.14%, while transport and education costs went up during the period as well.

It is also noted that the increase of 1.14% in prices of Food and non-alcoholic beverages is primarily attributable to the price increase of 1.87 per cent of vegetables, 2.5% of Non-alcoholic beverages and 0.45% of meat.

“Local goods increased by 6.62% on annual change with a monthly change of 0.47%, while prices of the imported products increased by 9.20% on annual change with a monthly change of 0.12%, while prices of the fresh products had a positive annual change of 8.25% between July 2011 and July 2010,”according to the report.

The majority of economic analysts point the sharp rise of Inflation to poor food harvests and higher prices of oil in the region.

By:Igihe.com Reporter

A Monetary Policy and Financial Stability Statement released recently by the central bank indicates that there has been an increase in Rwanda’s exports and imports both in volume and value in this year’s first half.

According the 34-pages statement, exports and imports are key indicators of economic activities that have contributed to the country’s economic growth and believed to keep it stable despite the prevailing uncertainties in the regional economy.

The region has faced Fuel and food inflation and prolonged drought that have drastically reduced production.

“Export volume and value recorded a significant increase of 58.2% and 48.1% respectively while imports volume and value increased by respectively by 13.2% and 14.6%,” the statement reads in parts.

However, despite the strong increase in exports, the trade deficit deteriorated to US $ 587.5 million against US $ 543.7 million recorded at end of June 2010. However,the coverage of imports by exports has increased to 20.9% end June 2011 from 16.2% end June 2010.

It is believed that when informal cross border trade is included, this coverage rate of imports by exports rises to 25%.

The main Rwanda export commodities remain the traditional ones such as coffee, tea and minerals representing 72% of total export values during the first half of 2011.

The monetary policy and financial stability statement released and distributed by central bank (National Bank of Rwanda),indicates that Tea exports recorded good performance with an increase of 4.1% in volume from 12,811 tons in January-June 2010 to 13,331 tons in January-June 2011 and an increase of 10.1% of value.

The mining sector has also contributed to growth both in economy and increase in exports as it continues to grow till this first half of 2011 recording an increase of 54% to 163.2 % in value reaching USD 72.5 million from USD 27 million respectively due to a significant increase in global prices by more than 70% in average.

Non-traditional export products have also shown a good performance, mainly due to the increase in export of live animals, vegetables, mineral water, beer, cosmetics products and textile products.

It is indicated that major part of these non-traditional exports went to DR Congo and Burundi except handcrafts that are mainly exported to developed countries like USA and UK.

Rwanda’s informal trade balance is said to be overall in surplus dominated by DR Congo on export side and Uganda on import side.

Rwanda’s import products are dominated by agriculture and animal products while imports are dominated by products such as maize flour, sugar, onion, banana for cooking, ground nuts, soap products, cleaning products, cement to mention but a few.

Rwanda’s total trade value with its neighboring countries recorded an increase from US $ 278 million to US $ 567.5 million in 2010, driven mainly by imports.

On the other hand this year’s imports seem to have slowed down due to a decline in imports of cereals and vegetables resulting from the drought that affected the region, and the increase in the domestic production.

It has been projected that Rwanda’s economy is likely to rise beyond the initial projection despite the expected adverse impact of rising fuel and food prices.

According to the IMF estimates of June 2011, the global economy continues its recovery process led by emerging and developing countries while developed countries, economic activity remain sluggish.

This year the global economy is expected to grow by 4.3% down from 5.1% in 2010 and in developed countries, economic growth is projected at 2.2% while in the emerging and developing economies it is expected to reach 6.6%, as compared to 3.0% and 7.4% respectively in 2010.

BY:Igihe.com Reporter

Kigali City Council represented by its Mayor Fideli Ndayisaba has signed a construction deal of three commercial complexes worth over Rwf 41bn with local investors.

The Rwandan investors are three companies formed by successful local businessmen that jointly registered their investment companies including Champion Investment Cooperation (CHIC), Genimo and Kigali Real Estate Developers.

“Our goal is to realize a dream of making Kigali City a destination of investment and make it a modern city,” Ndayisaba said before signing agreements with the three companies.

“Investment in Rwanda is not only for foreign investors but also potential Rwandan investors. They are bringing capital formation,” Ndayisaba added.

Ndayisaba says the construction of three commercial complexes will contribute to the new shape of a required modern city and contributing to the realisation of the Kigali city Master Plan.

He also said that all these complexes will be constructed where government owned property have been because it gives priority to investors.

“The Government encourages investors and gives a green light to investment, that is why government gives a way her own property,” he emphasized.

Ndayisaba warned that no one will be allowed to continue construction of these estates if there are no planed infrastructures in place first because of previous mistakes of poor city planning which have to be corrected.

The projects expected to be completed in three years include a 12-storey commercial complex worth Rwf 25bn to be built at Muhima Technical School (ETO Muhima).

The Muhima project belongs to Champion Investment Cooperation (CHIC), a consortium of 65 traders in Kigali trading centre.

Tharcisse Ngabonziza, the head of CHIC, says each member of their joint company will contribute about Rwf 70 million for the project of completing the 12-storied complex which will have shopping malls, hotels and a hospital.

The school will be relocated to Kicukiro College of Technology (KCT) for Kigali International Academy in Kicukiro District.

Other projects are an eight-storied Apartment hotel worth US$15m (approx Rwf 8.9b), to be built at the former military court premises in Nyarugenge District and Kigali Tower valued at US$12.6m (approx Rwf 7.5b) to be constructed at the former office of tourism (ORTPN) headquarters, also in Nyarugenge District.

The apartments Hotel will be built by GENIMMO Group, a subsidiary of SORAS insurance company, while Kigali Tower, owned by Kigali Real Estate Developers.

The three complexes were purchased at Rwf 1.374bn with two plots to accommodate 12 storied complexes and one with the one for GENIMMO to have 8 storied houses.

Robert Bapfakureka, the Chairman of Kigali Real Estate Developers, says their project will be co-funded by a Ugandan based investment group Mukwano Industries commonly known for plastic, soap, cooking oil products.

Digital Opportunity Trust (DOT), an international NGO in partnership with Business Development Centers has awarded certificates to the 80 participants trained at Gatenga, Kicukiro district.

DOT enables people to access and apply business information and communications technologies (ICT), to create education, economic and entrepreneurial opportunities.

Exclusively speaking to igihe.com, Emmanuel Nzeyimana, DOT Rwanda Program Manager noted, “the main issue of these trainings is to fight poverty but with the use of Information Technology.”

“Our intension is to empower women and the youth particularly with capacity to develop business skills because some of the business people we train have little knowledge to develop businesses and we want to reduce the problem,” he added.

Pierre Cerestine Ubitsemunda a father of four children says, “I have spent four years with the project of rearing rabbits and chicken but operating on a small space. After the training, I leant that, the place where I was working from was so small and now I have to widen my business because I feel I have all the skills due to the knowledge obtained here.”

Emanuel Munyentwari of ‘Business Agricole et Veterinaire’ who has spent 13 years in business from gatenga Sector kicukiro district noted, “I am a high school dropout and all these years I never knew how business can be expanded. So after the 1 month training together with my wife, we have managed to start up another project of samosa processing with the use of modern technology while using a machine that will produce over 8000 samosas per hour.”

He added that he got the idea with the use of internet research of which he studied during the training.

DOT has since trained 2000 people on empowerment, technology and business skills.