Category: Opinion

  • Traders at Nyarugenge Market Frustrated

    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.

  • BCR, SORAS Deal to Offer Mortgage Loans

    The Banque commerciale du Rwanda (BCR) June 3, launched a new product to its clients. The product is a mortgage loan for people with middle to low incomes.

    The mortgage product will be possible for borrowers who have the affordability to repay the loan but don’t have the deposit required (20%)through a partnership between BCR and SORAS.

    When one goes to BCR and asks for a mortgage loan, the bank will first seek for insurance from SORAS, it is after getting it that the key to the house is given to the client.

    The new product was announced during a meeting today at BCR head office involving the South African society (HFGA) led by the M.D of BCR Sir Sanjeev Anand, the Chief Executive Officer of SORAS Sir Benjamin MBUNDI, the Head of Retail Banking Sir Benjamin MUTIMURA and the Chief executive officer of HFGA (Home Finance Guarantors Africa Reinsurance) Dr. Charlene Lea.

    The meeting highlighted a new mortgage loan product, the Collateral Replacement Indemnity (CRI) for people earning middle to low gross income of 2 million and below per month taking a mortgage loan of a property below Rwf 55 million where the borrower will be paying 50% of his net income.

    Unlike other mortgage loans this one favors borrowers in middle to lower income helping them acquire their own homes.

    The individual in search of a loan will then deposit 1% and BCR will purchase the insurance premium cover of 4% to SORAS to cover up to 19% of the required deposit that actually enables BCR customers to borrow up to 99% of the property price where interest ranges from 14.5 to 15.7%.

  • ICC Court Marks 10 Years

    On 1 July 2002, the first three staff members of the International Criminal Court (ICC) entered the ICC’s building in The Hague, the Netherlands. On that day, the ICC’s founding treaty, called the Rome Statute, entered into force.

    Ten years after that modest beginning, the ICC has turned into a major international institution, securing justice for victims when it cannot be delivered at the national level.

    121 States have ratified the Rome Statute, and another 32 countries have signed it, indicating their intention to join the treaty.

    The ICC is working in seven situation countries, and monitoring developments in seven others on several continents, turning the principles of the Rome Statute into reality.

    In March this year, the ICC delivered its first judgement in a case concerning the use of child soldiers in the Democratic Republic of the Congo.

    Six cases are in the trial stage and nine others in pre-trial phase. These proceedings are testimony that impunity for genocide, war crimes and crimes against humanity is no longer tolerated by the international community.

    The victims are a vital part of the ICC’s work. Thousands of victims have been given a voice in the arena of international justice, where their rights are upheld and their suffering recognised.

    The ICC’s proceedings have emphasized, on a global scale, that children cannot be used as soldiers during hostilities, that sexual violence as a weapon of war is an unacceptable international crime, and that those in positions of power must safeguard the fundamental human rights of people caught in conflict.

    Support for international justice is growing around the world every year. Everywhere, people want peace, justice, rule of law and respect for human dignity.

    The ICC represents the voluntary gathering of nations in a community of values and aspirations for a more secure future for children, women and men around the world.

    However, rather than rejoice over our accomplishments, it is far more important that we recognise the shortcomings and the obstacles that remain, and redouble our commitment to further strengthen the Rome Statute system in order to move closer to our ultimate goals.

    If we act wisely, pulling our strength together, we can prevent terrible suffering before it takes place.

    The ICC is the centrepiece of the evolving system of international criminal justice, but the most important aspect of the fight against impunity takes place in each country, society and community around the globe.

    Domestic justice systems must be strong enough to be able to act as the primary deterrent worldwide, while the ICC is a “court of last resort”, a safety net that ensures accountability when the national jurisdictions are unable for whatever reason to carry out this task.

    In a spirit of solidarity, the States Parties to the Rome Statute have expressed their commitment to work together to ensure that this principle of complementarity is effective.

    Another crucial aspect of the ICC is the cooperation of states and the enforcement of the Court’s orders. The ICC has no police force of its own.

    The Court relies entirely on states to execute our arrest warrants, to produce evidence, to facilitate the appearance of witnesses and so on.

    Unfortunately, several suspects subject to ICC arrest warrants have successfully evaded arrest for many years. Political will and international cooperation is crucial in order to bring these persons to justice.

    While we work together to prevent impunity and to ensure accountability, we must remember that international criminal justice is one piece in a bigger framework for protecting human rights, suppressing conflict and working for peace and stabilisation.

    It is vital that other essential elements of conflict prevention and post-conflict recovery are present where needed, alongside international justice mechanisms.

    Only when accompanied by education, democracy and development, can justice truly help prevent the crimes of the future.

    Let us cherish our spirit of solidarity as we look forward to the ICC’s next decade, celebrating our achievements and acknowledging the challenges that remain ahead.

    We must be united in our resolve to defeat impunity and the lawlessness, brutality and disdain for human dignity that it represents.

    At this crucial juncture, we must continue the fight against impunity with renewed resolve and increased vigour. We cannot rest until every victim has received justice.

    On the 10th anniversary of the International Criminal Court, I call on states, organisations and people everywhere to join this shared mission of humanity.

  • Rwandan Traders Dominate Dar es Salaam Trade Show

    Traders from Rwanda have overshadowed Tanzanians at the 36th Dar es Salaam International Trade Fair in Dar es Salaam, Tanzania.

    The Rwandan dealers have specialised in setting pavilions of handicraft products made in Rwanda.

    They are said to have done enough preparations for setting pavilions to exhibit their commodities.

    Commodities on exhibition ranged from clothing materials, foot-ware, computer accessories, electric and electronic equipment, building materials to various forms of cellphones and automobile spare parts.

    Chinese traders have also meticulously presented their pavilions and products at the famous Kikwete ground, which was occupied by the Tanzania Health and Social Welfare ministry in 2011, is now occupied by Chinese dealers who have erected over 50 pavilions.

    Tanzania’s acting director general of TanTrade, Samuel Mvingira, says the Chinese had fielded more than 20 companies adding that, “This time there are many Chinese and Rwandese exhibitors.

    In fact, they have overtaken others in terms of preparations.

    There are some exhibitors from China that have failed to occupy pavilion spaces.”

    Mvingira said, Tanzanians did not show up in big numbers, including private and public institutions.

  • US Bill Pushes For Special waiver On African Garments

    In both the US senate and House of Representatives, a new bill has been introduced seeking to advance the extension of a special waiver aimed at allowing duty-free importation of African garments made using fabric from other countries.

    The Bill was tabled last week by a group of senior lawmakers from both houses raising hope for textile exporters including some East African countries where production of cotton remains insufficient.

    The rule popularly known as the Third-Country Rule of the preferential African Growth Opportunity Act (AGOA) initiative is scheduled to lapse in September threatening to lock out the bulk of textile imports from eligible African states.

    “This is a win-win legislation that builds upon our nation’s goal of strengthening economic relations with Africa, while ensuring that our regional trade agreement with Central America and the Dominican Republic continues to succeed,” Senator Orrin Hatch, an Utah Republican.

    The legislation seeks to renew the waiver until September 2015, when the entire AGOA will be up for renewal.

    Without the Third-Country Rule, countries that manufacture garments from imported fabric would be locked out of the lucrative US market.

    Though the Act originally covered the eight-year period from October 2000 to September 2008, amendments by then US President George Bush in July 2004 extended it to 2015.

    “This must-do legislation has strong bipartisan and broad industry support. It will benefit US global competitiveness, aid US employment and global development, and strengthen our ties with 55 US trading partners in Africa and the Western Hemisphere,” House Ways and Means Committee Chairman Dave Camp, a Michigan Republican, said in a statement.

    Also the US Secretary of State Hillary Clinton says President Barack Obama’s administration favours extension of the trade rule that has helped to improve trade with Africa under the AGOA initiative.

    The apparel firms accounted for 80.3% of the 32,251 employees at the Export Processing Zones (EPZ) by end of 2011, the Economic Survey 2012 shows.

    For example, to make cotton-based garments, textile firms in Kenya have to obtain 90% of cotton from regional markets such as Tanzania, Uganda, Sudan and Egypt.

  • Rio+20: Opportunity For Rwanda to Lead on Access to Energy For All

    The United Nations Conference on Sustainable Development was launched on 20 June in Rio de Janeiro, Brazil twenty years after a major summit on Environment and Development that was held in the same city.

    The Rio+20 conference is expected to attract more than 50.000 people from international institutions, NGOs, civil society and the private sector as 120 world leaders confirmed their presence.

    During three days, participants will debate on how to make sustainable development a reality for seven billion people today, and to define a future we want for nine billion by 2050.

    Rio+20 is an opportunity to secure renewed political commitment for sustainable development, a chance that must be seized if we want to meet the needs of the present without compromising the ability of future generations to meet their own needs.

    Sustainable energy is one of the key priorities of Rio+20. The United Nations General Assembly declared 2012 as the International Year of Sustainable Energy for All.

    It called on the UN Secretary-General Ban Ki-moon to organize and coordinate activities to increase awareness of the importance of addressing energy issues in a sustainable manner.

    In response, the UN Secretary-General launched a global initiative on Sustainable Energy for All (SE4ALL).

    The initiative aims at mobilizing global action from governments, the private sector, and civil society around three objectives: ensuring universal access to modern energy services, doubling the rate of improvements in energy efficiency, and doubling the share of renewable energy in the global energy mix, all to be reached by 2030.

    Sustainable energy, a key component of sustainable development, is energy that is produced and used in ways that will support long-term human development in all its social, economic and environmental dimensions.

    It enables economic growth and equitable development, and is essential to realizing the Millennium Development Goals (MDGs), reducing poverty, and reducing the risks of climate change.

    Achieving sustainable energy for all is not simply an option, it is a future worth to be chosen.

    For the last decade, Rwanda has witnessed a spectacular economic growth. The country is on track in terms of achieving the MDGs and millions have been lifted out of poverty.

    Severe challenges remain, however, in the energy sector. Only 11% of the population has access to electricity and 86% relies on firewood as the main source of energy.

    Rwanda identified access to electricity as one of the main drivers of economic development and poverty reduction. As part of the EDPRS 2, the Government of Rwanda is seeking to heavily invest in the energy sector.

    In addition, in its national strategy “Green Growth and Climate Resilience” the Government of Rwanda lays out a clear and plausible path to achieving the ambitious development targets of Vision 2020 in a way that is sustainable.

    In doing so, focusing on sustainable energy by developing its green economy is the choice that must be made. Investing in right technologies, designing the right policies and creating the right policy framework and incentives needed to expand sustainable energy access to all are crucial for the Rwanda’s future.

    It must mobilize international and public support for the goal, as well as encourage the private sector to innovate and invest.

    Rio+20 and the SE4ALL initiative provide great opportunities for Rwanda to provide global leadership in the development of a greener, more equitable and more sustainable world.

    By making the right choices today, Rwanda will be able to demonstrate that green growth, poverty reduction and sustainable energy go hand in hand.

    The United Nations in Rwanda stands ready to support the efforts of the Government of Rwanda to provide access to sustainable energy for all.

    The Author is UN Resident Coordinator/UNDP Resident Representative a.i.

  • Who Will Pick Up The Pieces?

    When Presidents Kagame and Kabila met in Goma on August 9th 2009, marking the end of more than a decade of hostilities between Kigali and Kinshasa, it was historical.

    Both leaders had decided to turn the page and literally work together towards making this region a conflict free zone, prosperous in nature and conducive to mutual business opportunities. According to many well-advised observers, this was to be the first step of a long and difficult journey.

    To make this a reality, both sides had to make a show of goodwill towards the other, and by doing so prove that they were ready to go the extra mile for the sake of common interests.

    This was the logic behind Rwanda’s intervention when Laurent Nkunda was marching on Goma during the war between Kinshasa and the CNDP. Rwanda would later go a step further by supporting the idea of casting aside General Nkunda for the sake of better integration of the CNDP in the new Congolese landscape.

    The message was loud and clear: Kigali wanted nothing more than being in the best of terms with Kinshasa and proved it.

    But with so many casualties and victims of war, so many people displaced and so much hate propaganda for so long, who in their right mind would bet on such a horse? How do you reconcile a people in such a context of fear, hate, ignorance, and worries of possible revenge killings that could potentially escalate in a never-ending cycle of violence in the region?

    The leadership of both countries did in fact put in place different mechanisms meant to monitor and reinvent the future for both countries. The joint military operations and the Joint Permanent Commission (JPC) are the results of this vision. And both sides have appreciated the deliverables.

    The FDLR has been pushed back and partially neutralized, the CNDP case was resolved through political means and their combatants integrated in the FARDC and the road for a closer economical integration is well underway thanks to the JPC.

    The DRC, being only at the early stages of a post conflict society, has been under constant pressure from the International Donors Community through their local representatives; external powers that differ most often than not in perspective and vision on how to handle the “under reconstruction” DRC.

    Even the best intentioned amongst them seems to only focus on areas of self-interest and fail to consider the local and regional dynamics and contexts.

    Their failure to do so constantly puts at great risk a much too young and fragile peace. Case and point: Kenneth Roth, Executive Director of Human Rights Watch. In a show of absolute disregard to the more than inappropriate timing, this not so ‘gentle’ man tweeted President Kagame to encourage the arrest of General BoscoNtaganda during the 18th commemoration of the 1994 Genocide of the Tutsi.

    The timing chosen by MR. Roth goes way beyond insensitivity towards the plight of survivors of the Genocide (as this was his only message addressed to Rwanda from that organization); it was clearly meant to create a buzz at a time where all eyes were on Rwanda.

    Ultimately, this move only goes to show the mercenary nature of such organizations claiming to be guided by humanitarian sentiments for the greater good of mankind.

    A heavily criticized presidential election in DRC gave the Western donors’ society the opportunity to exercise quite some pressure and maintain a grip on the newly re-elected President Kabila.

    France for instance threatened to cut back on development cooperation and to move the next Francophonie Summit scheduled to be hosted by the DRC to another country. Really?!!! As if France was a criminal free country! Last time I checked, it was and still is a safe haven for genocide perpetrators and war criminals.

    The pressure on President Kabila went up ten levels when he was asked to hand out General BoscoNtaganda who had previously integrated the National Army three years ago alongside other CNDP combatants as part of the process to restore the authority of the central government and peace in the Kivu.

    Despite the presence of so many UN troops on the ground, the international community was not ready to do the job; the responsibility was left to the Congolese. Amani Leo, UmojaWetu, the integration and pacification of Eastern Congo was to be sacrificed on the altar of Western Donors.

    The war that ensued from this pressure is today indeed jeopardizing the process of pacification and reconstruction started in 2009. The number of victims, deaths and rapes and the displaced populations has simply skyrocketed as a result of this.

    Is this the outcome expected by the ICC, HRW and the West?
    How will this all end? Who will pick up the pieces of a broken down DRC? How close are we of falling back to square one? For now Kinshasa is not healing the wounds but rather deepening them.

    More actors have now taken center stage. FDLR fighters are very active again and so are the militia, the Mai Mai and others, putting the Congolese populations of the Kivu at more risk, while making life impossible for President Kabila.

    How deep do we have to descend in horror? If the Congolese government persists in this conflict it will be even more difficult to move out of it; like quicksand it will drag the DRC deeper into problems. And a small movement like the M23 or otherwise will have all the reasons to grow and challenge Kinshasa.

    During the last High-level meeting of the JPC in Kigali, the Congolese Foreign Affairs Minister said, and I quote: “…if love exists, it needs to be shown or materialized”, end quote. What more can Rwanda do to show the “love”?
    Rwanda’s support went far beyond what normally is expected from a close friend.

    Reasonably, President Kabila should know that in the short or the long run he can count more on Rwanda and the region than on the International Community.

    A homegrown solution is worth much more than Washington, Paris and Brussels, ICC or HRW’s vision of the future for the DRC. On that inevitable day when the eventually turns away from them, the Congolese will be left with only their neighbors to contend with. So I ask you again: “Who will pick up the pieces?”

  • African Tobbacco Farmers Oppose WHO Ban

    Tobbacco has for several decades been produced in Africa and contributing to rural employment and economic development on the continent.

    African tobacco growers are lobbying their governments to resist the World Health Organisation’s ban on tobacco arguing that it will affect them economically.

    This came up at an International Tobacco Growers’ Association-Africa meeting held recently in Zambia.

    Tobacco growers opposed the ultimate eradication of tobacco growing as recommended by WHO’s Framework Convention on Tobacco Control draft policy.

    The growers emphasised the need for African governments to assist tobacco farmers that are affected by the drop in demand for the crop as a result of smoking reduction strategies and changing consumer preferences.

    “By restricting the available land for tobacco farming, denying farmers political and commercial rights to engage with governments through tobacco boards or commissions and ban leaf auctions, these advocate groups directly threaten jobs and livelihoods of millions of farm families worldwide,” said ITGA in a statement.

    “We are concerned that, while some working group members push for a cap on tobacco production and restriction on the amount of land available to tobacco farming, the FCTC has failed to provide credible options for governments seeking to help farmers diversify to other viable crops or livelihoods in anticipation of a potential reduction in demand for tobacco.

    “We note with great concern that the working group responsible for these proposals is being driven by health officers with little to no real world knowledge of agriculture, tobacco farming, or the challenges faced by farmers and farm workers living in rural areas,” said ITGA.

    The ITGA challenged the FCTC to involve the tobacco farming communities at every stage of policy development and implementation.

    The association urged governments to defend the interests of tobacco farmers that provide employment and income for many African farmers and families by rejecting the draft policy recommendations for Articles 17 and 18 and urging other governments to reject recommendations that destroy tobacco farmers’ livelihoods;

    “We urge governments to request the Working Group for Articles 17 and 18 to revise its draft policy recommendations, to seek input from tobacco farmers’ organisations and agricultural policy specialists on specific, detailed and credible options for diversification with alternative crops,” ITGA said.

    The association challenged tobacco farming communities to collectively defend their land, jobs and livelihood from efforts to deny the right to produce the legal crops that better assure their economic pros-perity.

    “We reaffirm the right of farmers to choose to grow tobacco for a living and recognise that tobacco provides a secure and stable income for hundreds of thousands of African farmers,” said the association.

    The ITGA represents millions of tobacco workers and farming communities in Zimbabwe, Kenya, South Africa, Tanzania and Zambia.

    The association recognises that tobacco has been produced in Africa for generations and acknowledges its contribution to rural employment and economic development.

  • Africa’s Growth Outlook is Good

    In the past, when the global economy weakened, sub-Saharan Africa fared very badly. Not so in recent years.

    While the global economy spluttered last year, the region notched up five per cent growth, with some low-income countries growing even faster.

    Even in the depths of the global economic recession in 2009, most countries in the region carried on growing.

    So, what is different now? And what are the chances that the region’s solid growth performance will continue even if the world economy runs into further problems – for example, if euro zone financial problems intensify or oil prices surge again?

    My assessment is that, despite these global risks, the outlook for sub-Saharan Africa remains positive.

    Consider first what has happened since the eruption of the global financial crisis nearly four years ago.

    While output in many advanced economies has yet to return to pre-crisis levels, growth in sub-Saharan Africa has stayed within sight of the boom period of 2004-08, when low income countries’ growth averaged 6%.

    However, some middle income countries in the region – including South Africa – have been more severely affected by global problems, reflecting their closer integration into the world economy.

    Since the global crisis began, only emerging Asia has outpaced the growth of sub-Saharan Africa among the world’s major regions—and the IMF expects a broadly similar outcome in 2012, with sub-Saharan Africa growing by about 5 ½%.

    Despite strong adverse shocks in recent years linked to political strife, repeated droughts, and the global crisis, Kenya still fared quite well, recording robust growth rates of 5.8% in 2010 and 4.4 % in 2011.

    Moreover, fiscal discipline has been maintained even with strong spending pressures, public debt levels remain sustainable, financial inclusion has made remarkable progress, and recent inflationary pressures are being addressed through a tightening of monetary policy.

    These developments testify not only to the resilience of Kenya’s private-sector led economy, but also that economic reforms implemented with the support of the IMF’s Extended Credit Facility have started paying real dividends.

    This is a very welcome change from sub-Saharan Africa’s low growth and economic crises in the 1980s and 1990s.

    Clearly, many factors lie behind this increased resilience. The region is, by and large, more stable politically; commodity prices have moved in favour of many of its exporters; and, crucially, most governments have pursued prudent economic policies and growth-supporting reforms.

    In particular, economic policies in the last decade have been directed firmly toward economic stability and market liberalisation.

    Inflation has been generally tamed, foreign reserves have risen, and debt burdens have been reduced – thanks, in part, to debt relief.

    As a result, investment levels have risen steadily, banking systems are playing an expanded role in attracting savings and providing loans, and the adoption of new technologies is boosting labour productivity.

    Robust economic policies also served sub-Saharan Africa well when the global crisis hit. Because inflation was low, and government fiscal positions were generally sound, countries were able to take measures to offset the sudden drop in demand for their exports.

    Strong domestic deposit bases largely insulated African banking systems from global financial stresses.

    As long as growth remains robust, governments should focus on improving their fiscal positions and build up sufficient cushions to be able to respond in the event of further global shocks.

    Gudmundsson is the IMF Resident Representative, Nairobi Kenya

  • AfDB Injects US$18M to Boost Infrastructure in Africa

    The African Development Bank (AfDB) has approved a USD 18 million private equity investment in infrastructure in sub-Saharan Africa.

    The recipient of the investment is the InfraCo Sub-Saharan Infrastructure Fund (ISSIF), aiming at target capitalization of USD 200 million of equity with a first closing of USD 100 million expected third quarter 2012 to participate in greenfield and brownfield infrastructure projects.

    The ISSIF will catalyze additional funds for infrastructureprojects, which will create employment and bring essential skills and technical knowledge to sub-Saharan Africa.

    Infrastructure requirements in the sub-Saharan market are estimated at USD 94 billion annually over the next decade.

    This considerable deficit severely impedes Africa’s economic development. The power and transport sectors are especially lacking in investment.

    Population growth and increasing urbanization has left many countries with a power shortage.

    The lack of regional transport infrastructure has resulted in vastly greater import/export and transport costs in Africa than in other countries.

    African governments, traditionally the main investors in basic infrastructure, would greatly benefit from private sector investments to fill the gap.

    Hence, the ISSIF represents a key alternative for private-led financing for the infrastructure sector in Africa.

    The ISSIF is sponsored by InfraCo Limited, a donor-financed fund launched by the Private Infrastructure Development Group and EleQtra LP, a group of companies specializing in the development, financing and ownership of greenfield infrastructure projects.

    The ISSIF will provide scarce equity capital for infrastructure projects, create jobs and enhance the transfer of knowledge in Africa.

    These infrastructure investments are crucial to release constraints on long term sustainable growth and private sector development.

    Tas Neside Anvaripour, AfDB’s manager of the infrastructure finance division said: “Buttress by a strong pipeline due to Infraco’s role as a project developer, ISSIF is expected to have immediate access to quality projects and help them to get to bankability stage”.