Tag: a_doingbusiness

The effects of a liberalized market in Rwanda are beginning to manifest through the ongoing silent commercial war among mattress manufacturing companies in the country and those from East African member countries, Igihe.com has learnt.

Rwandaform a former monopoly of mattress products in Rwanda has now embarked on a campaign aimed at eradicating poverty beddings in form of make shift grass cushions onto which most poor families retire.

The company’s director Patrick Makuza says that the mattresses will be issued on credit to vulnerable groups.Makuza rather encourages those in need of mattresses to group themselves into cooperatives making it easier for them to access credit in banks. Those that purchase mattresses in bulk will receive a discount.

“Currently we’re working on how to implement this program, but our main aim is to have all Rwandans sleeping on quality mattresses,” he remarks arguing that Rwandaform mattresses are not only durable but also ensure ones physical health.

Makuza attacked those selling mattresses produced from neighbouring countries at very low prices compared to those of Rwandaform describing them as fake the very reason they are sold at extremely low prices.

In the last few years mattresses from neighbouring countries especially Uganda and Tanzania have amplified competition in the Rwanda market through offering prices Rwandan clients consider affordable compared to Rwandaform mattress prices.

However, Makuza claims, “the cheap mattresses are often substandard and that can lead to back pain when used. He adds that Rwandaform provides orthopaedic mattresses used by those suffering from back pain and can also be used by those who are not ill to help reduce fatigue”.

Efforts to reach for comment from the Rwanda bureau of standards were unsuccessful, as most could not answer their phones.

Lack of vital information about products and services on demand in the foreign markets,language barrier and high transportation costs continue to hinder efforts of Rwanda businesswomen from accessing the larger global market…

Rwandan women entrepreneurs through a specialized training program-Access Program, funded by the Canadian government are slated to enhance their access to a wider global market for their products and services.

“This Access Program aims at supporting women businesses through facilitating trade and making them understand the constraints they are facing”, explains Sebastien Turrel chief commercial officer of centre du commerce international.

“We are not supporting them financially but technically through knowledge training, market access , providing them online resources and online promotion”, Turrel explains.

For the start, 60 women entrepreneurs have been selected by Rwanda Development Board and the private sector federation. The selected women already have established businesses including handcraft businesses, horticulture and textile and leather.

The targeted women managers include those already exporting or with exporting potential and national trade organizations. The program is in line with ITCs mandate of supporting private sector development, strengthening capacities of women-owned businesses building a network of strong partners and accessing foreign markets among others.

The program specifically aims at increasing the capacities of public and private partners in beneficiary countries, directly supporting women entrepreneurs to be export ready and accessing foreign markets with innovating products, contributing better revenues and improved services.

Women at the training explained that challenges including language barrier and Lack of proper knowledge on what the market demands in terms of quantity, quality, and products continued to hinder their access to foreign markets.

While voicing her concern, Ntibagwire Donatille, managing director of Floris, a company that specializes in the sale and exportation of fruits says “transportation of our products to overseas markets is expensive , that’s why the prices of our products are higher than those of some of our competitors such as in Uganda. The same product that is sold in Uganda could almost be one dollar cheaper than here she says”.

Ntibagwire explains,“The current demand for our products is due to popularity of organic products in Europe but the situation could be much better”. She adds that the high transportation costs would be solved through increased government subsidies similarly done in other countries.

She also points out that they need to be more aware of some the market demands and what they are asking for.

This weeklong program drew experts from Cameroon, Senegal, Uganda and South Africa that will train Rwanda women entrepreneurs in components such as business counseling export training, trade information and access to foreign markets. A total of more than 800 women have been trained across Africa.

By: Igihe.com Reporter

Export opportunities await honey producers in Rwanda following the increasing demand of the country’s high quality honey on the international market.

According to the Rwanda Bureau of Standards (RBS) Director General Dr. Mark Cyubahiro Bagabe, Rwanda honey is on high demand in big markets of the Middle East and Europe. “But the challenge is the low production volume”, he notes with concern.

In response to increasing export, quality Dr. Bagabe reveals that, “RBS has adopted a multiple-pronged approach aimed at ensuring compliance of Rwandan honey with international Standards”.

The Bureau has since offered training to local honey producers on the aspects of producing quality honey targeting the whole value chain. Currently RBS has certified five honey-processing companies and some are already exporting their products.

Dr. Bagabe advises farmers to opt for high volume beehives that would increase quantity of honey produced. During harvesting, farmers are advised to avoid using smoke (smoke contains a chemical dioxin) feared to be a cancer agent(carcinogenic).

Florida Uwamariya the Accounts administrator of Rwanda beekeeping services center has told Igihe.com, “Our sector has registered remarkable growth. Beekeepers are enjoying the fruits of their work and the sales volume has been ever increasing.”

Uwamariya notes that honey quality improved after farmers received training in methods of safe extraction, post harvest honey management and packaging. “We are looking at how we can maintain hygiene and quality honey processing and setting up scale processing equipment to upgrade the quality standards and produce”, she said.

The International demand for Rwanda honey is largely credited for its naturalness much of which comes from the country’s endowed forest and eco system. Uwamariya says that the demand for Rwanda honey is expected to boost incomes of women that are mainly involved in the honey sector.

The former German president Prof.Horst Köhler recently announced his intentions to invest in Rwanda inspired by the country’s sustainable development.

“I have particularly chosen to invest in Rwanda because of the country’s sustainable development compared to other countries in the region,” Kohler noted while emphasizing that the proper investment atmosphere seen in Rwanda has motivated him and mobilised other German investors to consider investing in Rwanda.

Köhler also met with President Paul Kagame at village urigwiro.

According to Foreign Affairs Minister, Louise Mushikiwabo , the former German leader wants to contribute to the development in the region where Rwanda is located, “Kohler wants to know much about the ongoing regional integration and devise appropriate ways of partnering with the region’s investors”.

Köhler of the Christian Democratic Union in German was first elected in May 2004 and was re-elected five years later in May 2009. He also led the International Monetary Fund (IMF).

During his east African tour Köhler also a distinguished economist held high level round table discussion held to address East African Community (EAC) integration, under the theme “Ambition for and reality of the EAC in globalized world.

Köhler said, “the EA Monetary Union will never happen in 2012 or anytime soon and the process should never be rushed,” he said, adding that if the project is to be executed carefully and practically, then the EAMU should happen in ten-years or so from now, that is if the European Union experience is anything to go by”.

“We started negotiations in 1991 and the European Monetary Union only got established in 1999 and the single currency coins began rolling out in 2001, which means it was a decade-long process,” said the former German President.

Today, the RSE did not record any transaction as brokers were bidding and offering at different prices. BRALIRWA shares closed the day at Rwf 220; unchanged from yesterday’s closing price.

Yesterday, the total turnover was Rwf 2,524,000 not Rwf 2,820,000 as reported from 11,200 BRALIRWA shares traded in 3 transactions at Rwf 230 and Rwf 220. BRALIRWA shares are trading ex-dividend since Monday 13th June, 2011.

The KCB and NMG counters did not record any transaction today and their share prices remained unchanged from yesterday’s closing prices of Rwf 175 and Rwf 1200 respectively.

At the end of formal business hours, there was an outstanding bid of 10,000 BRALIRWA shares at Rwf 215 each and outstanding offers of 6,400 BRALIRWA shares and 1,900 BRALIRWA shares at Rwf 230 and Rwf 220 respectively. There
was also an outstanding offer of 2,100 KCB shares at Rwf 180 each.