Category: Business

The business community in Rubavu and Rutsiro districts have been urged to acquire loans to expand their businesses.

The call from FINA Bank, Rwanda’s leading SME bank comes amid government’s initiatives to strengthen the private sector especially the small scale and medium enterprises.

 Jean Philippe Manzi Gakuba, Fina bank’s Rubavu Branch Manager, said that the business community in the two districts should to take advantage of the available liquidity in the bank to access credit for their businesses.

The bank made the call, yesterday, in Rubavu District during a one day seminar to avail their new plans and consult with clients in regard to its products.

“We assure them (business people) of enough liquidity in the bank which they should take advantage”, he said, adding that many people were adamant to access credit from the banks after the global financial crisis.

With the current rise in inflation and increase in commodity prices, the bank is optimistic that its current 17.5 percent interest would remain unaltered to help businesses access loans easily.

The manager who was speaking during a one-week seminar, urged people with businesses to come up with business plans and forward them to the bank which would help to collect where necessary and acquire loans.

“This year we are targeting to give out Rwf2 billion in loans to small and medium enterprises,” he said. He added that in the first half of last year, no loans were given out while only a few were lent in the second half.

Tigo Rwanda, a telecom brand owned by Millicom Cellular International (MIC), recently inaugurated its mobile money services in Rwanda, targeted at subscribers with limited or no access to banking services.

Tigo Rwanda is the second mobile company to launch such a service after its major competitor MTN Rwanda launched its mobile money product last year.

Tigo has similar services in Ghana and Tanzania.

Rwanda’s rural areas have limited access to financial services, with the central bank saying only 1.7 million deposit accounts had been registered by December 2010 out of a population of 9 million.

With about 3.3 million mobile subscribers shared between MTN and Tigo as of January this year, Rwandan mobile users can utilise the technology to deposit and withdraw money and can pay electricity bills and school fees via text messages.

“Tigo Cash is basically a wallet on your mobile phone. You don’t have to have a bank account,” said Tom Gutjahr, Tigo Rwanda’s chief executive. To sign up for the service is free but one has to be above 18 years and a Tigo subscriber with a valid identity card.

Non Tigo subscribers will not be able to register for the service but can receive cash on their network from a Tigo Cash registered peson in any part of the country any time any day.

“If you are not a “Tigo Cash” user, you will still be able to receive money from other Tigo Cash users,” the CEO said.

Licensed to operate in Rwanda two years ago, MCL said Tigo Cash can send between $1 and $550.

John Sebabi, head of payment systems at Rwanda’s central bank, said the new service would deepen financial services.

“If the number of mobile phone exceeds that of bank accounts, then access to financial services is growing which is line with our objectives of increasing access to such services,” he said.

The Product Manager, Tongai Maramba announced that Banque Commerciale du Rwanda (BCR) would be the host of the Tigo Cash trust account.

 

Actis LLP, a London-based private- equity firm investing in Africa, Asia and Latin America, may sell its Rwandan bank to Kenyan lenders.

Banque Commerciale du Rwanda, based in Kigali, the capital, is “a natural acquisition for one of the bigger East African banks wanting to expand their footprint,” Peter Schmid, Actis’s head of Africa, said in a May 12 interview at the firm’s London office. “That’s a probable exit scenario. ”

Actis, which has $4.6 billion under management, bought an 80 percent stake of BCR in 2004 in a deal valuing the company at $6 million. The Rwandan government kept the rest of the previously state-owned bank. Kenyan lenders including Equity Bank Ltd. (EQBNK) and Kenya Commercial Bank Ltd. (KNCB) are expanding across East Africa, opening branches in Rwanda, Tanzania, Uganda and southern Sudan, as the region’s economies grow.

The Rwandan investment was Actis’s first in the country. Gross domestic product has expanded an average 7.5 percent annually from 2004 and 2009, according to the World Bank. About 30 percent of Actis’s capital is invested in Africa, Schmid said.

The Rwandan Stock Exchange “is a bit small for now” to list for an investment exit, Schmid said.

Rwanda held its first initial public offering in November when the state sold 25 percent of Brassieries et Lemonaderies du Rwanda SA, a unit of Heineken NV (HEIA), the world’s third-biggest brewer. The stock is the only company listed on the Rwandan Stock Exchange, which started trading on Jan. 31. Kenya Commercial Bank and Nairobi-based Nation Media Group Ltd., East Africa’s biggest media company, are listed on an over-the- counter exchange.

BRC increased profit almost four-fold in the nine months through September on reduced costs and higher revenue, Managing Director Sanjeev Anand said in December. Net income climbed to 1.7 billion Rwandan francs ($2.8 million) from 433 million francs a year earlier as sales rose 12 percent to 8.5 billion francs, he said. The bank expects full-year net income of 2.2 billion francs, Anand said.

In 2004, Actis was spun out of CDC Group Plc, a U.K. government-owned investor in developing markets that was originally started 60 years ago as the Colonial Development Corp., to raise money from government, insurers and pension funds to invest in African and Asian companies.

responsAbility Social Investments AG, an investment company based in Switzerland recently made local-currency loans totalling the equivalent of USD 2 million to microfinance institutions (MFIs) Middle East Micro Credit Company (MEMCC) of Jordan and Urwego Opportunity Bank (UOB) of Rwanda.

rAMLF invested approximately RWF 591 million (USD 999,000) in UOB. Created as a result of a merger between Urwego Community Banking
and Opportunity International Bank of Rwanda, UOB is a microfinance institution
headquartered in Kigali, Rwanda. Its services include loan and savings
products, business training, HIV/AIDS training and insurance coverage. UOB’s
shareholders include nonprofit organizations Hope International, Opportunity
International, World Relief and World Relief Canada. In 2009, UOB reported to
US-based, nonprofit Microfinance Information Exchange (MIX) total assets of USD
10.8 million, a gross loan portfolio of USD 6.4 million, return on assets (ROA)
of -6.57 percent, return on equity (ROE) of -16.5 percent and 33,900 borrowers.

Founded in 2003, responsAbility Social Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and markets in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. According to calculations based on data from the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.

The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. rAMLF reported to the US-based, nonprofit Microfinance Information Exchange (MIX) that it had USD 160 million in fund assets as of 2010. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMFL’s label in March 2011.

 

A gold mining firm, Simba Gold Corp, has announced initial drill results from the Miyove gold project, which is owned by Rogi Mining Limited, that the Company has an option to acquire. The Miyove gold project is located in northern Rwanda and comprises 2,937 hectares over the largest historic gold-producing areas in Rwanda.

 Highlights of the drill program to date include 24.69 metres averaging 0.61 grams per tonne (g/t) gold, including 7.54 metres grading 1.12 g/t gold in hole MY-11-02 and 1.21 g/t gold over 5.58 metres, including 2.15 g/t gold over 2.57 metres in hole MY-11-05.

 In March 2010, the Company completed its Qualifying Transaction granting it the right to purchase up to 100% of the issued and outstanding shares of Rogi in exchange for a total of up to US$2.75-million in cash and the issuance of up to 5.7 million shares to Rogi’s shareholders over a period of five years. Rogi mobilized a 3,000-metre drill program on the Miyove gold project in December 2010 and drilling commenced early in January 2011.

The Miyove gold project comprises three mineralised corridors, Karenda, Baradega and Masogwe all of which lie along a northwest – southeast mineralized trend over a six kilometre stretch. Drilling to date has focused on the Karenda zone, an area of historic production, and in particular on gold mineralization beneath previous trenches (2006-2009), gold mineralization based on an approximation of the 1980s United Nation drilling and on geological targets. To date, 1,279 metres have been completed in ten holes, from five drill sites. Drilling has been difficult on the Karenda Zone due to strongly oxidised and weathered rock conditions, complications with old workings and limitations of the drill equipment. The Company has received assay results for holes 1, 2, and 4 and partial results for holes 3 and 5.

The Miyove gold project is underlain by rocks of the central African Mesoproterozoic-aged Kibara orogen that extend from Katanga (Democratic Republic of Congo) in the south, to southern Uganda in the north. The Kibaran geology on the property consists of shale, siltstone, sandstone and rare conglomerate units. Mineralization is associated with multiple northwest-southeast-trending gold-bearing quartz veins and stockworks, and associated wall rock alteration comprising kaolinization and iron oxidation.

Rogi is well established in Rwanda, and complemented by contract personnel who have experience and knowledge in the country and the ability to conduct efficient and effective exploration programs. Samples were sawn and collected from the diamond drill holes and delivered by the Company to SGS Minerals Services, Mwanza, Tanzania. SGS undertook sample preparation and analysis for gold by fire assay with an atomic absorption finish on 30-gram samples. To date only gold assays have been received, however multi-element analysis will follow shortly.

Simba is an African-focused gold exploration company with an option to acquire a company that owns gold exploration rights within the Gicumbi, Burera, Rusizi and Nyamasheke Districts, and nickel exploration rights within the Kirehe District of the Republic of Rwanda. Simba’s principal property is the Miyove Gold Project located in the Gicumbi and Burera Districts.

 

As the country gears for a technological take off, young entrepreneurial Rwandans are seeking the emerging opportunities that go with this. One of this budding entrepreneurs is Akaliza Gara who has successfully launched her ICT business aptly named, ‘Shaking Sun’. According to Gara, the young company’s aim is to help businesses and individuals realise their ambitions through the use of innovative technology and modern expertise. They also seek to actively ’think outside the box ’and design and implement creative and practical uses of the technology available today. ’Shaking Sun’ offers, discounted or pro bono services to, nonprofit and charity organisations. In a recent interview with IGIHE.com’s Fiona Gasana, Miss Gara narrates the opportunities and challenges of the business recently held an exclusive interview with Miss Gara on how her firm is coping in the gung ho ICT business…….or not so much so. Below are the excerpts.

 IGIHE.com : Is there any particular reason you called your business, ‘Shaking Sun’ ? 

Gara : It was to get people thinking – to make them curious about what the business is about.

 What made you decide to take the leap and start your own business ?

I had so many ideas and in Rwanda entrepreneurship is really encouraged and supported by the government – especially in the field of ICT.

 How were you able to decide that now you are ready and it is the right time for you ? 

I had been working as a consultant for some time, but there was so much demand I decided it was time to form a team.

 Has it always been an ambition of yours ? 

Not really – I actually wanted to be an artist – more specifically a ,children’s book illustrator when I was young.

 Why in the ICT field ? 

There are so many opportunities in ICT – and technology is racing ahead so you always trying to keep up. It’s a great challenge.

 Isn’t there much competition ?

Not as much as there could be – I think many people haven’t realized what a gold mine this is.

 What makes your business different to others in the same field ?

With websites, we always offer training – we try to get our clients to feel a real sense of ownership about their product so we teach them how to use it and maintain it.

 Do you have specific groups of people you target ? 

No ! We hope there’s something for everyone.

 Who inspired you to actually venture in this domain ? 

Companies like Pixar and Virgin.

 Was it easy ? 

Sometimes it’s really difficult – but I like being my own boss !

 How did you go about getting started ?

I created a business plan several years ago and started calculating how much it would cost to set up and do business for one year. Then I started saving up and when I reached a certain point I registered and go started !

 What do you hope to achieve from your business ? 

The vision for our business is to be a symbol for positive change to millions.

 How do you think you could help or encourage other hopeful young entrepreneurs ? 

For people like me – young and single – I think this is a great time to take a leap. Once you get to a point where you have a family to take care of, it will become a much bigger risk. Take advantage of the unique place you are in right now.

 Are you excited about your business ? I’m really excited !

 Rwanda is fast becoming a country that is encouraging young entrepreneurs in all types of businesses eager to move forward. That’s true.

 With you as a perfect example, what kind of advice can you share with others to encourage them to go for their own ventures ? 

One – do the research first. Two – Make sure its something that you are passionate about. Three – Set achievable goals. Doing these three things can help see you through the really discouraging times.

 Does you being female in a mostly male dominated domain make it any harder ?

Not really ! I think it makes you stand out, which is a good thing.

 Did you have any difficulty putting together a team ? 

Well, I’d never done it before so I was nervous about making mistakes – especially conducting interviews ; I wanted to make sure I asked the right questions.

 How did you go about it ? 

For the website developers I took on interns for a three week program. It gave me time to see them work and to find out what kind of personalities they have. Then I selected the best from that group.

 Did you advertise for the positions needed ? 

Yes, on the website and on the Facebook business’ page.

 What advice can you give other hopeful young women who are interested in becoming entrepreneurs ? 

Do what you love ! It needs to be something you’re willing to fight for.

What would you say was a major hurdle in getting started ? 

Learning how to handle clients who don’t pay on time – that’s still a challenge !

 Any surprises you were not expecting ?

I was pleasantly surprised by the amount of support I’ve been offered from various sources.

 Any anxieties you have ? 

That I’ll burn out ! It’s been many long hours and working weekends.

 Do you have a time frame in which to attain certain set targets ? 

Yes, I have so many goals – but I’ll tell you more in a few months time – I can’t give away everything just yet ! 

 

The Kenya Commercial Bank (KCB) group Board of Directors has approved an additional Sh1.9 billion capital injection to support the growth of the bank’s struggling regional subsidiaries.

Group chairman Peter Muthoka said the increased investment is meant to help the subsidiaries speed up their financial performance, and yield better returns to the shareholders.

The beneficiaries of the new funding include KCB Uganda (Sh1.1 billion), KCB Tanzania (Sh225 million) and KCB Rwanda (Sh557 million). With the exception of KCB Sudan, these subsidiaries returned an accumulated net loss of Sh259 million last year, diluting the Group’s overall profitability.

Performed better

KCB Uganda reported a loss of Sh409 million, while KCB Tanzania and KCB Rwanda registered losses of Sh111 million, and Sh318 million, respectively. KCB Sudan, however, performed better than expected, returning a profit before tax (PBT) of Sh581 million.

“KCB Sudan reported a good profit last year, and is poised for better returns in 2011 whereas KCB Rwanda and KCB Uganda are moving closer to profit making. KCB Tanzania is now stable, and should become more profitable going forwards,” said Muthoka. He, however, said all regional subsidiaries would be expected to break- even this year.

Muthoka also said the KCB board would be reviewing the operations of each subsidiary as it seeks the right business model which delivers increased returns to the investors.

“The board has agreed to increase investment in the subsidiaries this year to enable them accelerate their financial performance,” Muthoka told shareholders during the bank’s 40th annual general meeting (AGM) in Nairobi, yesterday. Muthoka said the board has also approved wide-ranging business 

One of the largest car rental agencies in the world Europcar set up its operations in Rwanda in January of 2011 without much fanfare. But five months on, the company is already making Rwandans to stop and take notice. 

Going by the motto ’You rent more than a car”, the local agency consists of a management team, an operational team, marketing and sales team that have already managed to rapidly gain a huge client base. Some of the firms major clients within this short time span include international organisations, NGOs, the U.S Embassy as well as individuals who rent cars to travel for long distances.

The Europcar offices are adjacent to Gorilla Hotel in the plush Kiyovu estate in Kigali.

 The operations manager of the local agency is Leonard Mugisha, a suave Ugandan-born chap of Rwandan descent, who is convincingly adept at lionising his firm. After giving me a short summary of Europa cars history, I ask him what the benefits of renting a car from Europa car agency rather than another car agency in Rwanda or abroad.

“Firstly,the maintenance and servicing of the vehicles is one of our major responsibilities and we take seriously what we believe in, though we know how to keep our customers happy even while dealing with the competitive rates, we always remember our long term relationships have been due to our customer satisfaction,” he says.

 Europcar deals with millions of different types of cars every single day and for every car that is rented, the agency takes full responsibility for not only the insurance cover but also the delivery of the vehicle the customer has requested for. Mugisha told IGIHE.com that the vehicle with the highest demand in Rwanda is the Toyota Land Cruiser VXV8, especially by various organisations, private companies, as well as many of the CEO’S of corporate companies such as Tigo. Mugisha discloses that all these cars are 2010 models. 

The company rents a Toyota Land Cruiser VXV8 at Rwf 100 million, whether the car is brand new or second hand. Renting and leasing isn’t the only service the agency provides.

“A client may also hire qualified professional drivers to drive you during your lease of the car,” discloses Mugisha.

Europcar, a car rental agency that was established in 1945 in Paris, France, now has 145 different rental agencies across the globe, in the Caribbean, North America, the middle east, the United kingdom, Russia, Zimbabwe, Kenya, Uganda and now Rwanda. iin all these countries, there are over 2,825 different car models rented in 3,000 different locations.

Europcar, which has two divisions ; Europcar France and Europcar International, partners with a few of the great names in the car industry including Accor, Volkswagen, Thalys, Renault and Mercedes, as well as working with other partners such as Delta Air Lines and Easy jet. Their solid reputation for professionalism has made them the top third car rental brand in the world.

 The various prestigious awards that have over a decade placed themselves in their world trophy accolade include the number one and best car rental company in Europe and Africa in 2004 for three consecutive years and the world’s best leisure car in 2006.

One of leading rental car agencies in the world has come to Rwanda not to compete against us but with us, says Mugisha.

“Though we are still new, we are now working towards building a relationship with the government of Rwanda”, “I have personally seen what a great and diverse culture Rwanda has and we are hoping to recruit more Rwandans in order to enlarge the diversity of our agency. ”

“Like I said with Europcar agency you are renting more than just car,” he aptly recap.

 

Rwanda is targeting to reap US$ 25 billion in the next 50 years in the ongoing methane gas project in Lake Kivu if all the 60bn cubic metres of methane in the lake is extracted.

Dr. Natacha Tofield Pasche, an expert in limnology said the extraction of methane is a double achievement for the government as it would reduce the methane threats and also provide energy for economic growth.

Dr. Pasche who led a Franco-Swiss team of scientists studying the physicochemical characteristics of the lake observed that this would not only contribute to the development of the country but would also reduce the risk of cataclysmic explosion that would affect the people around the area.

“The extraction will reduce methane gas threats and also contribute to the economy of the country,” Dr. Natasha Tofield Pasche, a Limnology Expert at Kivu Power Generation Pilot Project said during the press visit at the site recently.

She illuminated that the main reasons for extracting methane gas in this lake are to ensure safety through removing methane and carbon dioxide, and protect the ecosystem by avoiding nutrient increase in the bio-zone as well as the economic gains of the country through generation of electricity among others.

Pasche said that the accumulation of the methane gas in the lake has lasted over 800 years. “This proves that there is enough methane to be extracted because if not extracted, it would destroy the stability of the lake and also explode which will affect the surrounding areas,” he disclosed.

At a moment ; Pasche, who also does the assessment of the methane project, said that the lake cannot explode since the gas pressure now stands at 55 percent of the saturation. She added that it would be dangerous if this was at the rate of 100 percent.

The Engineer Operator at Kivu Pilot Plant Project 1, Hodari Muhire, said that the Kivu Power Generation Pilot Project, which is 100 percent owned by the government of Rwanda was estimated to produce 4.5megawatts per hour but since it is the first time the project has been undertaken in the whole world, there were miscalculations by experts. He noted that the project currently produces only 2megawatts per hour which contributes 2.6 percent to the national grid.