Category: Business

Rwanda has been commended by development partners for effectively utilising grants and have pledged to contribute about Frw 297.9Billion as support to the national budget.

The Minister of Finance John Rwangombwa said, “Donors commend our different strategies that aim at boosting national economy to fight poverty.

We tried to downsize funds channeled directly to the national budget, and focusing on investment projects’ budgets. We also discussed on preparation of EDPRS phase 2 and their part they will have to play”.

This follows a meeting between government and budget support development partners in which they discussed the draft budget framework for the year 2012/13-2014/15, with future spending guided towards projects and programs that seek to further accelerate a pro-poor growth within sustainable framework.

The two day joint budget support review meeting also discussed strategic priorities and budget allocation for the fiscal year 2012/2013.

Rwangombwa said more funds have been allocated to potential investment projects, unlike in the usual budget where funds were injected directly into the national budget.

The meeting also placed emphasis on strategic issues relevant to the short and medium term development of Rwanda including; infrastructure development especially energy generation, private sector development and investment in feeder roads.

Nils Warner, the head of the Chair of Budget Support Harmonization Group, who is also the head of Germany development cooperation hailed the discussions Rwanda holds with her development partners on budget allocation.

Kenya Airways (KQ) has increased its frequencies in Mumbai from 7 to 10 aimed at catering for the demand between India and Africa. KQ is looking to be in 91 destinations in five years and 115 in 10 years.

To enable the expansion, the airline is relying on the delivery of new aircraft with a new Boeing 767 expected to enter into service in the next couple of weeks.

The airline plans to launch operations in eight other destinations this financial year after it acquires new aircraft to facilitate its expansion plans.

The airline is looking to increase its presence in Kenya and Africa by moving into Lamu, Eldoret, and Kilimanjaro in Tanzania, Malakal in South Sudan, Mauritius and Cape Town.

Also in the pipeline is Beirut in Lebanon besides the recently opened direct flights to New Delhi.

KQ has its eyes on capitalising on strong trade routes including introducing flights to other destinations in India and China. “We are looking at a selected number of other destinations in India.

We want to do it soon, with new equipment we can venture into more destinations, move long-haul,” said Mohan Chandra, the airline’s commercial manager.

The airline’s chairman, Evanson Mwaniki, said one of the destinations the airline was eyeing in India was Ahmedabad, the largest city in the state of Gujarat, India.

The National Bank of Rwanda (BNR), launched the construction of its Rusizi branch last Friday in Rusizi Town, Western Province, bordering Bukavu Town of the Democratic Republic of Congo.

BNR Vice Governor, Monique Nsanzabaganwa, laid the foundation stone at the site, assisted by the Governor of Western Province and the Vice Mayor of Rusizi District and other officials from the public and private sector.

Nsanzabaganwa said the opening of BNR branches in districts is aimed at taking services nearer to the people and other stakeholders like commercial banks. Bank of Kigali, Fina Bank and Kenya Commercial Bank are among those operating in the area.

Nsanzabaganwa however urged commercial banks to introduce services that target all the classes of the population, instead of targeting the salaried employees. She further advised the local people to form cooperatives and secure loans from banks for income generating activities.

Further she said the District Access to Finance Committees should be able to work with commercial banks to ensure that the general population gets sensitized on finance and banking.

The almost RwF 2 billion project in the centre of the town is being implemented by Real Contractors Limited, a leading local real estate and commercial construction company. The company donated RwF 300,000 towards the community-based health insurance scheme (Mutuelles) for 100 who cannot afford to pay.

Handing over the cheque to the beneficiaries, Charles Lugira, the company’s General Manager, said it was part of their corporate social responsibility and that the company gives this assistances to people in areas where it builds. “We have also contributed to government programmes like One Cow per Family Project (Girinka) and eradication of grass-thatched houses (Nyakasi),” Lugira, whose company is soon completing, building the BNR Rwamagana Branch, said.

Celestin Kabahizi, the Governor of Western Province said the BNR branch is a sign of the development of the province and appreciated Real Contractors for the donation towards health insurance scheme for the poor. He also thanked BNR its decision to build a branch in the district.

Rusizi Vice Mayor in Charge of Finance, Economic and Development, Marcel Habyarimana said the BNR branch is another addition to the developments in the district, particularly Rusizi town.

BNR works to ensure and maintain price stability, enhance and maintain a stable and competitive financial system and support Government’s general economic policies.

The Minister of Trade and Industry, Honourable Francois Kanimba has officially opened the Growing SMEs International Conference at LEMIGO Hotel in Kigali.

Minister Kanimba told the participants from different parts of the world that Rwanda is a favourable doing business destination recognized by World Bank and other international agencies.

The Minister said, on macroeconomic policies, Rwanda is the most stable in the region and has been Implementing Comprehensive governance reform agenda including; zero tolerance to corruption.

“This is not a slogan but a reality and we are close to attaining total compliance, “says Kanimba.

Over 36 speakers are expected to present at the conference launched under the theme, “Connect, Exchange and Invest.”

The Conference is centered on discussing policies and exchanging ideas about assisting SMEs in becoming competitive and export oriented. What role can government play to enhance the comparative advantages of SMEs or to alleviate their comparative disadvantages?

What role can government play to make SMEs competitive in Export markets? What are the best practices and how can we learn from the best players? The conference is intended to answer all these questions.

The Conference is organised by BiD NETWORK in conjuction with JCI-Rwanda and Rwanda Development Board (RDB).

Puma Energy LLC (“Puma Energy”) has acquired majority stake in KenoKobil Limited commonly known in Rwanda as KOBIL.

Patrick Meyer the Puma Energy head of Coporate Affairs at Global level told IGIHE that Puma Energy has signed an exclusive agreement with the key shareholders of KenolKobil Limited (“KenolKobil”) to acquire a majority stake in KenolKobil.

He explained that the exclusive agreement is conditional on due diligence, price confirmation and regulatory approval.

KenolKobil is listed on the Nairobi Securities Exchange, and is one of East Africa’s largest oil marketing companies operating across 10 countries in Africa.

Any subsequent transaction, which is conditional on due diligence and regulatory approvals, would add: US$ 2.5 billion of net sales; A strong asset base, including over 400 retail service stations and 180,000m3 of storage capacity;
Strong strategic fit with Puma Energy’s existing businesses;
Important new markets to Puma Energy’s African presence, including Kenya, Uganda, Rwanda, Ethiopia and Burundi; and a highly skilled employee base of 557 and a highly experienced management team.

Puma Energy was formed in 1997 focusing on emerging markets and has grown rapidly in the midstream and downstream oil sector. Headquartered in Switzerland, Puma Energy now operates in 29 countries around the world.

As well as operations in eleven countries across North and South America, Puma Energy has been working in Africa for a decade, and now operates in twelve countries across West, Central and Southern Africa. The company has oil storage terminals in northern Europe, the Middle East and South East Asia, with planned developments in India.

Puma Energy is one of the fastest-growing midstream and downstream oil companies in the world, and continues to invest heavily in Africa, strategically partnering across the continent with key emerging African players including Sonangol, the national oil company of Angola.

Finance Minister John Rwangombwa has disclosed that Rwanda’s economic growth will drop to 7.7% this year from 8.6% of 2011 as a slowdown in Europe curbs tourism and falling commodity prices reduce revenue.

Rwangombwa said in an interview Tuesday in Addis Ababa, Ethiopia, where he is attending the World Economic Forum on Africa.

Tourism is the largest source of foreign currency for Rwanda accounting for about $200 million annually.

“It is mainly about world economic shocks and how tourism will be affected,” Rwangombwa said. “Commodity prices are affecting our exports.”

Rwanda aiming at drawing more foreign direct investment while seeking to reduce dependence on commodity exports.

The export of coffee and tea has expanded an average of 8.4% annually in the five-year period that ended in 2011, according to the United Nations.

Rwanda Central Bank has room to leave interest rates on hold as the inflation rate should stay below 10% this year, Rwangombwa said.

Inflation accelerated to 8.2% in March from 7.9% in February.

The Bank of Rwanda raised its key lending rate by 50 basis points, or 0.5 percentage point, to 7.5% on May 4. It was the first increase in six months.

An investment forum that would bring together government and business leaders in Nigeria and Rwanda is planned to hold in Lagos from May 9th to 14th,2012.

The forum tagged Nigeria Rwanda Economic Summit is being put together by Limitless Minds Africa,in partnership with the Rwanda High Commission in Nigeria and the Nigerian Economic Summit Group NESG.

According to Limitless Minds Africa,the 5 day forum would bring together business leaders and influential decision makers in Nigeria,Africa and the diaspora.The event dubbed Embark would feature a Gala,holding on May 12,2012 at Expo Centre,Eko Hotel and Suites.

It would be an evening of high octave entertainment featuring the breathaking Ingazo Ngari dancers from Rwanda and Nigeria’s own 2face Idibia among others.

LIMITLESS Minds Africa is an organisation created to bring awareness about business opportunities in Rwanda, a ‘new’ country that has courageously risen from its ashes of the past to a dynamic and vibrant economy.

Rwanda also acts as a gateway to the East African Community, where a population of 130million people, free trade and transport across borders and common custom tariffs represent a new and exciting market for Nigerian businesses looking to expand into East Africa.

Limitless Minds Africa is committed to support initiatives that would boost mutual investment opportunities in Rwanda, Nigeria and in Africa. “Our goal is to provide a forum to showcases the abundant business opportunities waiting to be tapped into within the East African country as well as provide a forum for the exchange of ideas amongst business leaders.”

We are also committed to projecting the positive attributes of Africa as a continent as well encourage Africans to contribute their own quota to build the continent.

Ambassador Claver Gatete the Governor of Central Bank of Rwanda last Friday disclosed that Rwanda’s Gross Domestic product is expected to rise above 8.6% compared to 7.2% of the previous year.

The central bank governor noted that the economy is expected to grow faster in 2012 compared to 2011 subject to reforms in key agricultural and industrial sectors. These adjustments propelled the Economy’s expansion in 2011.

Amb. Gatete said, “We are more likely to exceed 8.6% growth of our GDP. We are seeing reforms on the industry side, in addition to the key reforms in the agricultural sector. The signs are good, by any means.”

Rwanda was least shaken by inflation than Kenya, Uganda and Tanzania where double digit inflation and weak currencies prompted authorities to increase interest rates to around 20 % in some cases.

Inflation in Rwanda was steady at close to 8%, the lowest in the region, helped in part by the reduction in fuel taxes and good harvest.

“Last year, our initial target was 7%, but by the end of the year, it was 8.6%. So this year we also hope it is going to be much better. And, even what we see in the first quarter then we are almost more optimistic.”

Amb. Gatete indicated that the economic growth figures for the first quarter would be released at the beginning of August.

In March, the International Monetary Fund (IMF) said Rwanda’s economy could expand by 7.5 to 8% in the next two years. The IMF however, warned of the risks of a revenue shortfall.

The Commissioner General of Rwanda Revenue Authority, Ben Kagarama said the tax body will establish a new tax assessment system in May.

The system includes electronic devices that will be freely distributed to the businessmen. 500 invoice devices will be freely distributed to the business premises effective May.

“The devices have already been used across the world including neighbours; Tanzania and Kenya have similar system in use,” Kagarama said.

Kagarama told press Friday that some business people are fond of tax evasion especially value added tax. The new system will facilitate both RRA and business people in accomplishing their duties.

RRA will be able to remote control daily activities of the businesses through the information delivered by the device.

Kagarama explained, “We have established special approaches of facilitations to the businesses in Rwanda; this is why in May we’re coming up with a new system that will enable us to evaluate the VAT payment.”

The device will be installed inside shops and other business consigns. Information recorded by the device will be directly transferred to the RRA receiver. “We will freely distribute the devices to businesses premises and train them how to use them,” Kagarama noted.

Kagarama said the first free 500 devices will be distributed in May.

He assured that there will be no concern with challenges RRA has already observed the practice and its impacts from other countries. RRA is ready for all sorts of inconveniences arising from the use of the devices.

He noted that some businessmen lose invoices after they pay-this is a problem to assessment of tax payment. Businessmen normally used to declare only the number of the invoices on which they pay the tax, which was very risky.

Businessmen will be able to distantly control their business and have the factual information. Those that will be given the device first are classified in high risky category of forgery.

The RRA has also established severe penalty to businessmen who will either try to operate outside the system or abuse the device to dodge the tax.

According to Kagarama, the new system is the complement to the previous one established in February where the payment and declaration is done online (internet).

On Monday 23 April, the Rwanda Stock Exchange (RSE) market started the week on a low profile recording a lower turnover of Frw 669,000 compared to Friday’s trading session.

Bank of Kigali (BK) and Bralirwa recorded each, 1 transaction of 200 and 2,000 shares which traded and closed at Frw125 and 322 respectively.

BK and Bralirwa shares remained unchanged from Friday’s closing price.

Kenya Commercial Bank (KCB) shares last transacted at Frw135 while Nation Media Group (NMG) shares last transacted at Frw 1,200.