Category: Business

Sudan is experiencing financial constraints as the price of the U.S. dollar on black market for hard currency jumped on Thursday to 5.95 as the country’s central bank further devalued the local pound in renewed efforts to plug the gap with the unofficial trade.

The Central Bank of Sudan CBS announced on Thursday that it was fixing a new exchange rate of 5.65 for commercial banks and Forex bureaus alike in order to narrow the gap with the black market rate.

CBS said the new rate will be followed by decreasing it to 4.4 following the Eid holiday.

Commercial banks have already started using the new rate but there is no information on whether Forex offices did too.

CBS allowed in May government-licensed Forex bureaus to determine their own rates in buying and selling currencies.

However, the situation changed little as Forex offices kept hiking their rates to match value in the unofficial trade while failing to meet the demand due to the small supply they receive from CBS.

Sudan has been struggling to narrow the gap between the official and black market rates of foreign currency exchange which has been widening since the country lost its main source of hard currency revenues due to the secession of the oil-rich South Sudan last year.

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Market reports indicate that Kenya’s top quality Tea has dropped in price for the first time on the global trading market in seven weeks to US$4.06/Kg at auction this week from US$4.07/Kg last week, market participants have said.

Kenya is the world’s biggest exporter of black tea and the crop is one of its largest foreign exchange earners. It fetched US$1.27 Billion in 2011.

The Mombasa-based Africa Tea Brokers (ATB) said in a market report that Best Broken Pekoe Ones TEABP1-BEST-KE sold at US$3.92-US$4.20/Kg from US$3.88-US$4.25 last week.

Best Pekoe Fanning Ones TEAPF1-BEST-KE fetched US$3.74-US$4.00/Kg from US$3.67-US$3.96/Kg at the previous sale.

It said 102,796 packages were offered for sale, with 17.1% going unsold. Last week, 98,514 packages were offered with 13% left unsold.

The report said Pakistan, Afghanistan, Kazakhstan, Russia and Sudan showed strong demand, as did Egyptian Packers.

Yemeni Packers, Middle Eastern countries and UK Were also said to have been active at the auction.

About 37 Investment licenses have been issued to Foreign Investors that applied to invest in China.

China has been too restrictive to foreigners interested in doing business in china keeping the communist vast state a no go zone to foreigners.

By easing restrictions on foreign investors seeking to put their money into the Chinese markets, Beijing’s latest financial sector reforms seek to boost a slowing economy.

The securities regulator late Friday published new rules allowing qualified institutional investors to hold up to 30% of shares in any domestically listed company, up from 20%.

The new rules will make it easier for foreign groups to obtain the status of qualified institutional investor, and thus enter the Chinese market, said the China Securities Regulatory Commission.

Foreign investors will now also be able to put their money into China’s interbank bond market and high-yield bond market, said the regulator.

The steps should lead to “more long-term foreign investment on China’s capital markets,” according to a statement from the regulator.

China has introduced a series of reforms to open up its financial markets in recent months in the hope of boosting its economy, which grew 7.6% in the second quarter, its slowest pace for more than three years.

Authorities hope to modernise the economy in which a dominant role is still played by state-run banks and huge public companies.

Fresh foreign capital could inject much-needed vigour into the country’s markets.

The benchmark Shanghai index ended Thursday at 2,126.00 points, its lowest close since March 9, 2009, according to Dow Jones Newswires.

New applications for foreign investors have been sped up recently, with the securities regulator approving 37 new qualified investor licences for the first six months of this year compared with 29 for the whole of last year.

Flower Investors are increasingly focusing on relocating to Uganda where they say the cost of doing business is much lower and favourable as opposed to Kenya where they have been operating.

Kenya Media reports that the Kenya Flower Council (KFC) is worried of the costs of doing business in Kenya, even when the sector’s export returns continue to plunge due to the financial crisis in the Eurozone.

KFC is also alarmed by rigid tax legislation, declining revenues, climate change and political instability in Kenya.

“Investors are adopting a wait and see attitude,” says KFC Chief Executive Officer, Jane Ngige. Some have shown an interest in Uganda because it is presently looking more attractive than Kenya.”

Details from KFC indicate that the sector registered a steady growth of about 10 per cent between 1995 and 2008 in tonnage, but presently there is a 1.7% slowdown.

“The reasons for this are several but a reduction in investment due to the Kenyan currency (shilling) remaining stronger than the pound and euro increases input costs, fuel, airfreight, fertilisers, chemicals and labour wages,” says Richard Fox, Director of Finlays Horticulture.

The RSE market today (Friday) recorded a lower turnover of Rwf 9,253,100 compared to yesterday’s trading session.

Bank of Kigali (BK) counter recorded 3 transactions of 70,000 shares which traded between Rwf 126 and Rwf 135 whereas Bralirwa counter registered 2 transactions of 700 shares traded between Rwf 359 and Rwf 365.

on Thursday the market had registered a total turnover of Rwf 44,160,200 from 210,500 BK shares and 43,700 BRALIRWA shares traded in 12 deals.

BK share price closed down Rwf 1 at Rwf 135 and Bralirwa share price remained unchanged from yesterday’s closing price of Rwf 365. KCB shares last transacted at Rwf 140 while NMG shares last transacted at Rwf 1,200.

At the end of formal trading hours, there were outstanding bids of 3,505,300 BK shares between Rwf 125 and 130 and outstanding offers of 514,800 shares between Rwf 135 and Rwf 136.

On BRALIRWA counter, there were outstanding bids of 1,600 shares between Rwf 357 and Rwf 360 and an outstanding offer of 134,000 shares at Rwf 375.

This week the RSE market recorded a higher turnover compared to last week’s trading session.

The total turnover for this week was Rwf 2,385,914,800 from 13,883,100 BK shares and 1,400,800 BRALIRWA shares traded in 38 deals compared to last week’s trading session which recorded a turnover of Rwf 236,157,800 from 942,700 BK shares and 334,600 BRALIRWA shares traded in 33 deals.

The African Development Bank (AfDB) has approved US$15 Million equity investment in the African Trade Insurance Agency (ATI) to increase its capital base.

This contribution will allow ATI to increase its provision of trade, credit and political risk insurance products that encourage foreign direct investment and trade in Africa.

Based in Nairobi, Kenya, ATI was founded in 2001, under an International Treaty by African Member States at the initiative of Common Market for Eastern and Southern Africa and with the technical and financial support of the World Bank.

ATI has a mandate to increase investment and trade in Africa through the provision of medium-long term credit and political risk insurance as well as other risk mitigation products to African countries and related public and private sector actors.

The AfDB’s equity investment in ATI will increase its capital base and allow the underwriting of more business in trade, political and credit insurance to meet strong demand as well as to enhance overall profitability.

“ATI uses innovative risk mitigation instruments to catalyze private sector financing into a range of critical sectors from core infrastructure to trade finance” said Tim Turner, AfDB Private Sector and Microfinance Director.

Tim Turner, the director of the AfDB’s private sector department, added, “By 2014, the total value of trade and investment projects in Africa supported by ATI is forecast to be as high as US$ 8.6 Billion.

ATI further provides political risk and credit insurance targeted at infrastructure and construction projects in Africa, crucial for development in Africa.

By 2014, 37 infrastructure projects should be supported by ATI per year with a total value of US$4.6Billion.

This level of investment and trade will generate many additional jobs on the continent”.

Rwandans and people of Mali are the least likely to make mobile money transactions compared to other money transfer modes in sub-Saharan Africa. This was revealed in a survey by a US-based research group Gallup Inc.

The report titled “Payments and Money Transfer Behavior of Sub-Saharan Africans” released in June indicates that 24% of Rwandans that transferred money in 2011 used mobile money services.

Accodring to the report, Kenyans and South Africans were the most likely to having made any transactions in the 30 days prior to the survey (76% and 69%, respectively), while residents in Rwanda and Mali were the least likely to do so (24% and 27%, respectively).

Uganda(53%) is second to Kenya(76%) in the number of people that use mobile money transactions. Statistics also show that only 44% of Tanzanians embraced mobile money transfer. The survey was conducted in 11 countries.

South Africans and Kenyans were also the most likely to only have used non-cash (electronic) channels (18% and 15%, respectively). In all other countries, fewer than 1 in 10 respondents used only electronic payment channels.

In Mali, Rwanda, and Sierra Leone just a handful of respondents reported this (1%-2%).

However, even in South Africa and Kenya, the two countries with the most advanced payment markets, respondents were more likely to report that they only used informal cash payments than to have used only electronic payment methods; 31% of South Africans and 22% of Kenyans used only informal cash payments in the past 30 days.

These shares translate into 10.9 million and 5.2 million potential consumers, respectively.

The fact that cash transactions are still prevalent even in Kenya, where mobile money penetration is nearly complete, is likely due to some people carrying money or sending it with traveling relatives to save on the money transfer fees rather than to lack of coverage within the country.

Residents of Sierra Leone were clearly the most likely in the region to exclusively make cash transactions (47%).

The study finds huge differences in payment behavior between educational groups- More than 8 in 10 (83%) of respondents with high levels of education had made any transactions in the 30 days prior to the survey, compared to 6 in 10 (59%) of respondents with average levels of education and 4 in 10 (41%) of respondents with low levels of education.

The highly educated were almost 6 times as likely as those with the lowest levels of education to have made only non-cash transactions (23% vs. 4%, respectively).

Youngest respondents (15-18 years) were less likely than older respondents to have made any transactions (36% vs. 50%-54% of other age groups).

The youngest were also less likely to have used only electronic channels (3% vs. 7%-9% of other age groups). The survey did not find significant differences in payment behavior of men and women.

Focusing on differences between various levels of urbanization, large city dwellers and those living in suburbs of large cities more often reported to have made a transaction than residents of rural areas or small towns.

More affluent respondents and city dwellers were also more likely than the poor and rural residents to have only made electronic transactions.

That said, high shares of large city dwellers, those living on more than $2 a day and the richest 20% and of the population made only informal cash payments (34%, 28% and 27%, respectively) implying a large underserved market among all groups.

IGIHE, Ltd. has joined Global Entrepreneurship Week – Rwanda as its Official Media Partner, helping the fledgling movement to double the impacts of its first year, with a 2012 campaign target of 25,000 participants.

Global Entrepreneurship Week will be celebrated from 12-18 November, when dozens of local partners are expected to organize local, national, and global activities which inspire people everywhere to explore their potential as self-starters and innovators.

These activities, from large-scale competitions and events to intimate networking gatherings, will connect participants to potential collaborators, mentors and even investors.

Outreach is currently underway to enlist these local partners in addition to sponsors, advisers, and champion entrepreneurs.

As part of the agreement with GEW-Rwanda, IGIHE will help to develop the campaign’s communication plan and to manage media relations throughout the country. IGIHE Co-Founder and CEO Meilleur Murindabigwi had this to say about the newly-minted partnership:

“IGIHE is pleased to partner with GEW once again as we believe in its goals and objectives of promoting entrepreneurship in Rwanda; GEW is a youths centered initiative and we are proud to be part of the 2012 campaign as the exclusive media partner. GEW 2012 will surely be a success – it’s bigger, better and we urge all Rwandese mostly the youths to come on board.”

For more information on Igihe, visit www.igihe.rw or email [email protected].

To get involved in Global Entrepreneurship Week – Rwanda, email the national host at [email protected].

About Global Entrepreneurship Week – Rwanda

Global Entrepreneurship Week (GEW) is the world’s largest celebration of entrepreneurship – engaging 7.5 million people each November through tens of thousands of activities around the world.

In 2011, Rwanda joined 122 other countries to participate in this incredible movement for the first time, reaching 12,000 people through twenty-six local events.

In 2012, GEW-Rwanda has partnered with IGIHE, LTD. (Official Media Partner) to reach upwards of 25,000 people through fifty different activities around the country.

Hosted nationally by the Babson-Rwanda Entrepreneurship Center, the initiative is powered globally by the Ewing M. Kauffman Foundation, sponsored by Dell and the NYSE Euronext Foundation, and enjoys the support of dozens of world leaders, hundreds on national hosts, and a growing network of 24,000 partner organizations.

For more information, visit www.unleashingideas.org, and follow GEW-Rwanda on Facebook or Twitter.

About IGIHE, Ltd

IGIHE LTD was formed in 2009 under an umbrella of university students from the various Rwandan campuses – NUR, KIST and KIE – and started operations with the premier brand, www.igihe.com.

This was a pioneer online news website that has built a reputable media brand that revolutionalized the Rwandan media platform.

IGIHE LTD is at the forefront of promotion of usage of ICT in the Rwandan media landscape; through facilitating our audience to access fast and reliable news through the internet.

We inspire the Rwandan youths to work hard to achieve their dreams by embracing entrepreneurship.

Currently, IGIHE LTD has considerable media brands – www.igihe.com (premier brand, number ranked online website with highest traffic & has up-to-date news in Kinyarwanda, English & French); www.igihe.tv (an online live streaming portal); www.wikirwanda.org (portal with a wide range of Rwandan history); and has a sister print version, Ikinyamakuru IGIHE (newspaper).

In addition to providing a variety of other ICT related services such as internet solutions, website Content development, Website design and maintenance, Online advertisements – to mention but a few.

The state of business performance at the new and modern Kigali city market ( formerly Nyarugenge Market)is appalling following several complaints from traders of lack of clients.

City dwellers are reluctant to entering the mega complex claiming they don’t like going through the security check points and scanners at entry points.

The traders have also told IGIHE that they are failing to make any substantial sales of their products thus unable to pay montlhy rent for their shops in the Modern complex.

That they find themselves still having the products they started with in February due to lack of clients.

Traders say that after moving into the new market they expected more clients because there was more order but the situation didn’t really go as they expected, instead the number of clients dropped.

“Clients choose not to enter the building for fear of walking through security machines and metal detectors. Also there is less packing space,” Said Cancilde Mukashema a trader at the market.

Through observation, women don’t appreciate the fact that their handbags are checked, they tend turn back back whenever they are asked to open their handbags.

Mukashema said people carrying large sums of moneey are not willing to open their bags adding that they would rather go to other places in the city where they arent subjected to security checks.

Others outside the market told IGIHE that they fear entering the complex because its modernly furnished thus assume that products sold in there are expensive.

A survey showed that there are more empty stalls and shop spaces in the mega complex because some traders left to setup their business in other parts of the city.