Category: Business

  • TMEA in $7.5m fund for integration-boosting projects

    Trade Mark East Africa (TMEA) has launched a $7.5 million fund to finance innovative projects from the five East Africa partner states that focus on eliminating challenges that hamper regional trade.

    TMEA is a multi-donor funded agency that provides support for increased regional trade and economic integration. It seeks to accelerate the implementation of East African Community (EAC) protocols towards regional integration.

    The project dubbed ‘’Trade Mark East Africa Challenge Fund’, was launched mid this week in Kigali by Mark Priestly, the Rwanda country director for the agency.

    The fund will run for a period of three years, targeting private sector and civil society organizations.

    “A Challenge Fund such as this provides a great opportunity for us to approach business directly and tap into the well of creativity and entrepreneurship that exists out there,” Priestly said during the launch.
    Several challenges such as non-tariff barriers, compositeness and supply side constraints still hamper the region’s fragile trade scenario, he said.

    “In particular, we are looking for innovative and new ideas for stimulating trade and overcoming the trade challenges that Rwanda and the region face,” he asserted.

    The grant invests in innovative projects started by the private sector and civil society organizations that can boost regional trade among the partner states. The fund has already been introduced in Kenya and Tanzania and would soon be launched in Burundi and Uganda, he further noted.

    Rwanda’s Minister of Trade and Industry, Francois Kanimba, said the fund was a timely initiative that would boost the country’s efforts to transform its economy to a service-based one through increased exports.

    “This initiative will open the door to businesses which have innovative projects but have so far been unable to finance them due to the inherent risk involved,” the minister underlined.

    The fund focuses on projects likely to deliver policy and institutional change, enhancing ability to deliver systematic change. “It’s a niche fund that compliments other funds in operation,” the minister observed.
    Kanimba said the challenge fund was an opportunity for Rwandans to compete regionally in accessing the funds to develop their businesses.

    “You have to work hard to be able to get a significant share (of the funds). You will be competing with other regional applicants,” he emphasized, reminding interested applicants to submit their proposals on time.

    Some of the projects to be given priority include manufacturers who set up an innovative supply chain to source raw materials like cotton and vegetable oil seeds from other EAC countries, or telephone companies reducing calling costs by investing in new technologies that overcome infrastructure constraints, he added.

    On the picture: TMEA’s CEO Frank Matsaert, Finance Minister John Rwangombwa and EAC Minister Monique Mukaruliza. (photo Abraham Rumanzi)
    The Guardian

  • NPD Cotraco to go regional

    NPD-Cotraco is a Rwandan construction company that has since 1996 provided real estate construction, civil engineering works and the manufacturing of construction materials. However, beyond construction, the Rwandan-based company has a good image for quality in the East and Central African regions, helping to expose Rwanda to the outside world. In an interview session with Hope Magazine, the company’s Director General, Jean Gatarayiha, highlighted the company’s path to its current status.

    Hope: Briefly give us an overview of NPD Cotraco

    GM: NPD-Cotraco is a civil engineering company that is purely owned and run by Rwandans. Often people get use to foreign companies executing construction activities in our country but we are here to offer what they can offer and to give much more in terms of quality. Concerning the business position of the company, NPD Cotraco has grown steadily over the years and we anticipate further development as well as the realization of our goals. In 2011, our turnover was over Rwf15 billion, a 100 per cent increase from 2009 when the same value was at Rwf7 billion. This year, we are targeting to raise our turnover to about Rwf20 billion.

    Hope: Which product mainly distinguishes you from other construction companies?

    GM: Here in Rwanda, we are pioneers in the construction sector and we have the finest quality products that best suit our market. None of our products are inferior to the other and this makes it difficult to single out a single product to top the list. However, if I had to single out one I would choose a product like our concrete electric poles. These electric poles are purely made from concrete and steel bars giving them a high level of durability estimated to last for about 50 years, compared to wood or metallic poles used elsewhere in the region that last for about 3 to 5 years. However, I will generally note that all our products are of the utmost quality and we at NPD Cotraco want to contribute towards building a beautiful Rwanda by offering outstanding construction materials.

    Hope: Name a few achievements the company has accomplished thus far?

    GM: Since our start, the journey has never been easy. We have encountered a number of challenges but due to our persistence, we have managed to get to where we are today. Our main achievement is our survival through all of these setbacks, and emerging as a major contributor towards the building of our nation. I could not have imagined we would grow to a point where we could start the construction of an asphalt road of any size and complete it. We have constructed more than 56km of asphalt road across the country and that number will grow to over 70km after we complete our current project in Kigali. We expect to complete the 34km project in Kigali before the end of October this year. This is something we are proud of; that Rwandans can accomplish the things we used to think only foreigners could do.

    Hope: What factors contribute to your current success?

    GM: You know it takes the courage and solidarity of many people to make something happen. Unity and a team spirit are the strengths we have always built upon. There is an important understanding between the management and stakeholders of this company. Whenever we go to the board with certain suggestions, they never let us down but have on many occasions backed us up, which is the seed for our current status. However, we also depend very much on the support of the government. For instance, the Minister of Transport of the Ministry of Infrastructure recently paid us a visit to thank us for our contribution to the construction industry of the country. Through the Minister, the government pledged to continue support.

    Hope: There still exists an imbalance between exports and imports internally, what’s your contribution to eliminating this disparity?

    GM: Although we started with the target of first satisfying the local demand for our products, we are now set to start exporting our expertise in construction as well as the construction materials we produce. Recently, we began improving our capacity both in the machinery we use and the skills of the personnel we employ. Today we are proud to say that before the end of the year, we expect to have more than 80 per cent of our work mechanized. This not only includes increases in production by over 10 times but also serves to ensure a consistent standard of quality products. It is worth noting that more than 98 per cent of our staff engineers are from Rwanda, which is a result of training them and helping them acquire skills.

    I can also share with you that we have already started competing for construction tenders in the region. We were voted the best in a CPGL tender to construct 42km of asphalt road that will connect different points in the Democratic Republic of Congo. We are also engaging in partnership agreements with companies in Kenya, Uganda and Tanzania, which might see these companies importing our electric poles and/or have NPD-Cotraco open subsidiary factories in some countries of the region.

    Hope: What are your targets for the next five years?

    GM: We want to be the leading civil engineering works company not only in the region but also on the entire African continent. I would be more than happy to see Rwandans undertaking construction of roads all over the continent and beyond because thus far we have shown the willpower.

    Hope: How much have you donated towards societal development?

    GM: First, I need to inform you that our products, above everything, are environmentally friendly. For example, our electric poles are made from concrete and can be recycled after they expire. Moreover, we are engaged in social responsibility activities like rehabilitating impassable roads. Also, wherever we work from, we often build essential infrastructure like electricity and help to distribute it to local citizens.

    Hope: What is the principal challenge you face as a company?

    GM: One of the biggest challenges that we often face is that of electricity, mainly in the rural regions. However, the government is in the process of solving this hurdle and we believe that it will soon be history.

    Hope: What is your advice to those engaged in the same trade as you?

    GM: My advice to other businesses is quality needs to be the priority. When you ensure the services and the products you offer are of a good quality, profits will always follow.

  • Rwanda 63rd on Global Competitiveness List

    Rwanda is ranked 63rd among 144 countries assessed in the 2012-2013 Global competitiveness Report.

    This proves there has been a great improvement by Rwanda which was ranked 70th in the 2011-2012 similar Rankings.

    This year’s Report features a record number of 144 economies is the most comprehensive assessment of its kind.

    The report contains a detailed profile for each of the economies included in the study as well as an extensive section of data tables with global rankings covering over 100 indicators.

    According to the report, Global growth remains historically low for the second year running with major centers of economic activity—particularly large emerging economies and key advanced economies—expected to slow in 2012–13, confirming the belief that the global economy is troubled by a slow and weak recovery.

    As in previous years, growth remains unequally distributed. Emerging and developing countries are growing faster than advanced economies, steadily closing the income gap.

    The International Monetary Fund (IMF) estimates that, in 2012, the euro zone will have contracted by 0.3% , while the United States is experiencing a weak recovery with an uncertain future.

    Large emerging economies such as Brazil, the Russian Federation, India, China, and South Africa are growing somewhat less than they did in 2011.

    At the same time, other emerging markets—such as developing Asia—will continue to show robust growth rates, while the Middle East and North Africa as well as sub-Saharan African countries are gaining momentum.

    The best ten economies include; Switizerland(1st), Singapore(2nd),finiland (3rd),Sweden(4th), Netherlands(5th), Germany(6th), USA(7th), UK(8th),Hong Kong(9th), Japan(10th)..

    In East Africa,Rwandan emerged top at position 63rd meanwhile Kenya scooped (106th) position,Tanzania(120th),Uganda(123rd) and Burundi also the last on the global rankings list at (144th).

  • Kenya Airways to Suspend 1500 Employees

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    Kenya Airways is expected to suspend between 650 to1500 employees a move which has forced the Countrys Prime Minister Raila Odinga who has directed the airline company to suspend the planned retrenchment.

    Odinga said the airline should prepare a brief explaining some of the issues raised by workers.

    Employees of Kenya Airways had on Thursday petitioned the government to intervene in the impeding layoff.

    Odinga said the petition had raised a number of pertinent questions regarding the planned retrenchment and whether the Company’s is applying good corporate practice.

    For instance, it is unclear whether Kenya Airways has explored all available options for reducing its wage bill including introducing pay cuts,” the letter read, adding that it was not clear whether the Company has engaged the Aviation and Allied Workers Union (AAWU) in discussions over the planned staff rationalization.

    “Employees of Kenyan origin are facing retrenchment while jobs for foreign nationals performing similar duties are protected. In the recent past, similar Public Companies such as Orange Telkom Kenya that have undertaken massive employee retrenchment entered into negotiation with the workers union and agreed on a settlement package that was mutually acceptable to both parties and the Government,” the letter read.

    NMG

  • Eastern Province to Double Honey Production

    Rwanda Agriculture Board (RAB)has donated equipment worth Frw2.750Million to Honey Producers in Karangazi, Nyagatare district and urged them to increase honey production in the area.

    Kayihura Agaba Fred in charge of development of honey production in the area revealed that the province intends to harvest over 84 tones of honey in 2012 alone.

    Currently only 40 tons are produced annually in the province but Kayihura urges all those engaged in honey production to increase their yields to double the output.

    Sirikare Diyonizi a bee farmer commended the support provided by RAB saying the equipment will aid bee farmers improve their practices.

    He however, urged RAB to provide capacity building to the bee farmers in the area.

  • Rwanda Lifts Ban on Pyramid Scheme

    Rwanda has lifted a ban on operations of an asian pyramid scheme QuestNet which conducts its business operations through Independent Representatives (IRs) and its eCommerce based business model that does not need a physical office.

    QuestNet had been banned in 2009 on the basis of contravening companies and Tax laws of Rwanda.

    An Investigation launched by the National Bank of Rwanda quickly saw the company banned by order from the finance minister.

    However, Rwanda’s Minister of Finance and Economic Planning, John Rwangombwa scripted a letter allowing QuestNet to resume its operations in Rwanda by first adhering to specific conditions.

    The conditions include; registering the company in Rwanda, obtaining a physical address, registering as a taxpayer, making monetary transfers in line with the country’s laws, declaring members of the QuestNet chain to tax authorities, and storing the items being sold in a warehouse in Rwanda.

    “Upon review of your request to lift the ban on your business, and after consultations with different stakeholders, we hereby lift the ban and allow your company to resume operations as long as you abide with the conditions,” wrote Minister Rwangombwa.

    QuestNet is actually a pyramid scheme and is already banned is several American and Asian countries.

    It quickly established what it describes as a “life changing vehicle”, but what is considered by most a life destroying scam, in Africa.

    QuestNet says it sells two products. One of them is the Bio Disc, a miracle filter which ‘energises’ water.

    The other is the Chi Pendant, which is supposed to protect and therefore vastly improve your well-being by banishing ‘bad waves’ such as those from microwaves, mobile phones and radiations from other electronics.

    In 2010, FRANCE 24 editorial team examined QuestNet’s activities.

    It was discovered that Questnet is a non-sustainable system in which the products are phoney and the salespeople deceived.

    The QuestNet managers con potential salespeople into believing that they will easily find others willing to sell the products too and therefore receive regular commission.

    However, while the first few of those involved do earn some money from the system – an outcome used to convince others that it works – they soon become too many salespeople and not enough buyers to purchase the product.

    The system is illegal in many countries, including France, Belgium and Canada.

    The geographical origin of QuestNet is unknown, although online records show that the company originated in the US, when it worked under the name of “Gold-Quest International”, selling coin collections to indigenous Americans.

    In 2008 the assets of “Gold-Quest International” founder were frozen after a court order.

    Today, the company is making tracks in Africa. Its first targets were Uganda, Kenya and Rwanda, where it tried to commercialise coasters that supposedly protect you from contracting HIV.

    The sale of the products is fraudulent and targets the poorest of society – those who are desperate to make money quickly.

    The scam destroys relationships, because it’s to family and friends that recruited salesmen then sell the scheme to themselves.

    They convince their friends into indebting themselves in order to enrol in the scheme, and later find themselves responsible for both their own and their friends’ financial struggles when the pyramid collapses.

  • New Taxi Tarrif Announced

    The Rwanda Utilities and Regulatory Agency RURA have announced new tariffs for hiring vehicles and taxi charges.

    It has been stated that for every Kilometer in a taxi (taxi voiture or special hire taxi), passengers will be charged Frw500 per kilometer.

    Airport Taxis have been charging Frw509 per kilometer.

    Non Airport Taxis have been charging Frw433 per kilometer. Hiring a Taxi per day had been cost at Frw42,000.

    RURA has also directed that all taxis be fitted with gadgets that can record distance travelled from which passengers shall be charged. Or passenger shall be charged according to time spent in the car.

    The tariff has been changing since 2005 although there have been disagreements between taxi operators and the regulatory agency RURA.

    In 2005, Airport taxi charged Frw3000 per hour and by then hiring the taxi for a day used to cost Frw20,000.

    In 2008 the tariff was adjusted to Frw 4000 charged per hour for airport Taxi and Frw30,000 charged for hiring the taxi for the whole day.

    In 2011 the charges for hiring Airport taxi was adjusted to Frw4,000 per hour and Frw 40,000 per day.

    During the meeting, participants failed to agree on specific time a taxi should wait for a passenger.

    Kayitare Deogratias representing Kigali Taxi Services told the meeting that normally taxi operators wait for the passenger for only 15 minutes. After that, the passenger is charged Frw50 on extra 15 minutes.

    He said this was always notified to the passenger before using the taxi services.

    However, RURA was of the view that passengers should not be charged ‘Waiting Time’ before a clear position is adopted.

    Ndikuriyo Innocent representative of Airport taxi operators commended the new tarrifs which he said would reduce disagreements with passengers.

  • 50 Cent Appeals to Young African Entrepreneurs

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    U.S. Rapper 50 Cent is looking for business partners from Africa, to be the sole distributors of his energy drink SK in their respective countries.

    His intention is to choose a partner in every country in Africa, to work closely with him on marketing and selling the brand in their respective state.

    SK, which stands for Street King, is an energy drink developed by the musician and businessman to not only provide a body boost, but also raise cash for starving populations in Africa.

    “Giving back to hungry children with every shot we sell is only part of the story. I’ve been fortunate enough to travel across Africa, and one thing I’ve learned is that it is filled with vibrant, young entrepreneurs who are eager to cultivate a sustainable business sector that will fuel growth for their future.

    That’s why I’m giving African entrepreneurs the chance to bring SK to their country,” said the rapper in a statement.

    50 Cent recently visited Somalia and Kenya, where he toured schools in Somalia and Kibera slum Nairobi.

    “Everyone thought that we would expand immediately to Europe or South America. But if you know SK, you know the vision has always been to support my roots in Africa,” he said.

    “I’ve had so much interest coming from Africa since I’ve launched SK. That’s why I’m opening up submissions to entrepreneurs across the continent to become distribution partners.”

  • Experts Warn on EAC Single Currency

    Before East African community adopts a single currency, regional Economic experts want concrete means established indicating how the regions central bank will be funded.

    The Experts also urged on clear policies on how accounting and reporting standards will be harmonised as the region plans to adopt a single currency.

    Bank of Uganda governor emeritus Leo Kibirango was quoted by Newvision saying, “Until concrete means are found to provide central banks with clear and efficient ways to assess trends and developments in domestic and external economies, it may be challenging to proceed with the 2012 deadline .”

    “The monetary union would render all players thinking East Africa and would restrict independent action in pursuit of national economic objectives,”he added.

    He explained that there is risk that smaller states with marginal projects could be sidelined in preference for states with more robust proposals in the absence of clear policies.

    State leaders in the East African Community (EAC) recently announced 2012 as the year of a common currency in Tanzania, Rwanda, Burundi, Kenya and Uganda, but central bank leaders in these countries may still lack the tools to implement the monetary union.

  • Ethiopia gets Boeing 787 Dreamliner

    A Boeing 787 Dreamliner aircraft has been delivered to Ethiopia becoming the second country after Japan to take delivery of the Dreamliner.

    Sources say the Ethiopian Dreamliner is built from lightweight material, rather than aluminium aimed at saving fuel. Ethiopian Airlines has bought 10 of Boeing’s flagship aircraft.