Author: IGIHE

  • A payments platform to support economic growth

    Lack of shared rules and regulations, cross border trade tariffs and lack of infrastructure remain major barriers to economic growth in Africa. According to the World Bank, the African market remains highly fragmented, which limits the movement of goods, services and people across borders. The United National Economic Commission for Africa has also recently highlighted the need to boost intra-African trade to deliver development across the continent and speed up Africa’s economic transformation.

    {{African payments, via international banks}}

    While the transport of goods and services is critical for Africa’s development, enabling the movement of capitalto support trade and development within Africa is equallyimportant. According to SWIFT data, only 12.8% of commercial payments from Africa went directly to other African countries, even though the final destination of more than 20% of these payments was within the continent. A large proportion was settled internationally, including 37.2% in the United States. This international financial intermediation is costly, and takes time.

    Pan-regional payment systems operating within harmonised legal and regulatory frameworks of regional economic areas will make intra-regional payments easier, faster and cheaper. This will help to increase cross-border trade within regional communities such as the East African Community (EAC) or the Southern Africa Development Community (SADC). Competitive local payment services will alsohelp to reduce the need for international financial intermediation thereby keeping African transactions within Africa. It will also help to increase access to financial services. Looking beyond high value transactions, the addition of low value intra-regional payments could also extend benefits to consumersby enabling the creation of new products and services that could increase financial inclusion.

    Policy makers have recognised the role that payment systems and other infrastructures play in fostering and deepening economic development; therefore, over the last 5 years, many African countries have invested in their financial market infrastructures (FMIs). The World Bank too has prioritised the development of payment systems as a crucial component of its work to reduce poverty and boost prosperity.

    Several pan-regional payment systems already exist, including SIRESS in SADC,which went live with the first four SADC countries in 2013, and the East African Payment System (EAPS), which was established by the EAC also in 2013.

    {{Focus on East Africa}}

    The EAC, which includes Uganda, Kenya, the United Republic of Tanzania, Rwanda and Burundi, was established to strengthen economic, political, social and cultural integration in order to improve the quality of life of people in East Africa. TheEAC intends to realise thisby increasing competitiveness within the region, creating value-added products, and boosting trade and investment.

    To help achieve these ambitions, Kenya, Tanzania, Uganda and Rwanda implemented the multicurrency regional payment system, EAPS, which links the domestic payment systems in each country. This makes cross-border fund transfers much easier within the Community, supporting the free movement of goods, labour and services.

    The EAPS platform, launched in November 2013, is underpinned by the high value payment systems at each country’s Central Bank (called real time gross settlement systems) which operate on the SWIFT messaging network for safe and secure delivery of payment and settlement messages. It enables banks to make or receive cross-border payments seamlessly in their respective local currencies. A key aim was to reduce the cost of financial transactions, which would in turn help to increase the trade flows that are critical for economic growth.

    Over the last four years, the members of EAPS have reaped several benefits from using the platform.

    The system supports all member currencies and simplifies the process of transferring funds cross-border by reducing commission and other charges. For example, previously when a Kenyan bank wanted to send funds to a bank in Tanzania, it would need to change Kenyan shillings into dollars via a foreign intermediary bank, and then into Tanzanian shillings on the other side. EAPS removes this step, allowing direct currency exchange, therefore lowering the cost of doing business across the region.

    Transaction times havealso been significantlyreduced. While a payment used to take up to two days, it can now take place in only a few hours. By using SWIFT, EAPS also benefits from the highest levels of security, resiliency, standardisation and automation.

    The ambition for EAPS is that it will be the platform of the future, enhancing efficiency, continuing to reduce settlement times and lower transaction costs, therebyencouraging greater levels of trade within the region and furthering economic growth.

    Currently four countries are connected to EAPS, andBurundi is scheduled to join the platform later this year. The realisation of such a large regional economic bloc has great strategic and geopolitical significance. Encompassing some of the most vibrant economies in Africa with a combined population of more than 150 million people, a land area of 1.82 million square kilometres and a combined gross domestic product of $146bn, EAPS will play a key role in boosting the economies of the East Africa region.

    Denis Kruger

    {{The writer is the Head of Sub-Sahara Africa, SWIFT}}

  • AMIR leads celebrations of Microfinance Week

    This year’s activities will include CEO Round Table meetings, selection of best performing institutions (Microfinance Institutions/ MFIs and SACCOs), Media reporting tour, as well as journalist awards and involvement of sector partners mainly in the area of client protection and education. The involved partners are SEEP Network and Rwanda Governance Board (RGB).

    The SEEP Network has been collaborating with AMIR since 2016 to lead the Responsible Finance through Local Leadership and Learning Programme in Rwanda, which aims at promoting client protection and education.

    CEO Round table meetings will be taking place in all provinces in districts of Musanze, Karongi, Kigali; Nyanza, and Rwamagana on different dates.

    Client protection will be one of the criteria used in selecting best performing MFI/ SACCO.

    On the other hand, Media Reporting Tour is expected to be conducted across the country, where journalists will be collecting inspiring and success stories from MFIs managers and clients to educate society, especially on demand and service provision through sharing best practices with respect to client protection and education.

    CEO roundtable meetings bring together all MFI/SACCO managers, partners, local authorities to discuss achievements, emerging issues in the sector, recommendations and way forward.

  • Rwanda peacekeepers construct classrooms in Darfur

    The school is located at EL SIREAF Locality, in Northern Darfur.

    The humanitarian project by the Rwandan Peacekeepers comprises of construction of a fence (120mx90m), one block of two classrooms, two latrines, four rehabilitated classrooms and an administration office. The school has now, after the project, a capacity to accommodate over 400 students.

    The project was sponsored by UNAMID and implemented by Rwanda Peacekeepers deployed in Sector North Darfur as part of the Mission’s Quick Impact Projects programme.

    In his remarks, the Guest of Honor Mr ABDOMAJID Mohammed, representative from State Ministry of education, appreciated the great effort by Rwanda peacekeepers who constructed and rehabilitated the EL SIREAF High Secondary School for Girls.

    “We ensure you that we will maintain this work for coming generation to be a symbol of peace and love between people of Sudan and Rwandans” he said.

    The UNAMID Head of Office Sector North, Mrs SUNAINA Lowe, who presided over the inauguration and handover ceremony commended the courage and effort of Rwanda Peacekeepers and its significant contribution and sustained commitment to the UN Peacekeeping operations.

    On behalf of the Rwanda Peacekeepers, CO of RWANBATT49, Lt Col David MUSIRIKARE, said that the project is very useful because the existing school was old.
    He mentioned that it was a challenge for the school administration to manage the security of the school especially the movement of students and other people entering inside without control.

    “This project will positively impact both the local community and UNAMID; it will also employ people settled in the area reducing the security threat to the school beneficiaries”, Lt Col David MUSIRIKARE said.

    The handover ceremony was attended by delegations from the Government of Sudan, UNAMID officials, peacekeepers and local communities.

    The guest of honor officially launching the event
    Rwanda peacekeepers inaugurated and handed over new constructed classrooms to EL SIREAF High Secondary School for Girls
  • Karongi Environmental Museum boosted with natural history objects

    The museum was established in 2015, focusing on renewable and non-renewable energy.

    In the first phase, the ministry relocated different animal mummies of crocodiles, snakes, birds, monkeys, butterflies, zebra and gorillas among other animals found in Rwandan parks.

    Also relocated are minerals like aluminum, colta, wolfram among others found in Rwanda.

    The museum consists of three components; the first for energy, the second for animals and mining and the third for plants like trees and herbs used for traditional healing

    Speaking at the event last week, the Minister for Sports and Culture, Julienne Uwacu said that new objects will help boost visitors.

    “Increasing objects will also help to increase visitors” she said adding that students will be able to visit the museum and see what they learn in theory.

    She said that the more people visit the museum the more they will understand the importance of environmental conservation.

    The Environmental Museum head, Andrew Ndabaga said that 20,000 people used to visit the museum per year and optimistic that the number will increase following new changes.

    “People are attracted to different aspects; someone who will not understand energy affairs will visit animals section or minerals or gardens,” he said.

    INMR will also relocate snakes currently located in Natural History Museum.

  • 2,981 appealed 2016/2017court decisions to Ombudsman

    While presenting the report to Parliament today, the Ombudsman, Anastase Murekezi explained that 1,934 (64.9%) cases were not handled in 2015-2016 while 1,047 (35.1%) were received in 2016-2017.

    Murekezi said that of the cases that were appealed, a total of 1,033 were assessed and 67, equivalent 6.5%, were revised through the Supreme Court.

    A total of 966, making 93.5% cases, the report indicates, had no injustice cases identified.
    The report says that there are many cases which were not assessed in 2016-2017 because of the overwhelming numbers in contrast to a small staff to scrutinize the files.

  • Prosecution to line 70 witnesses against Rwigaras

    The defense team started by protesting that the Nyarugenge court should not be in charge of handling the hearing and trial, urging that the case should be taken to Kacyiru Primary Court.

    The court however ruled that Nyarugenge Intermediate Court shall be able to handle the case.

    When prosecution was asked to provide audio recorded evidence supporting allegations against the trio as entered on the charge sheet and file, they instead asked that one part of the hearing should be held in-camera to protect people who provided the testimonies.

    Prosecution said that they have twenty audio recordings as evidence against the accused, eight of which, if aired in the open, could affect security of the people in question.

    Prosecution also said that audio recordings have names mentioned, some of who are still under investigations and their revelation can obstruct further investigations and that they have testimonies from 70 witnesses but whose names, they said, they could not reveal for security purposes.

    One of the defence lawyers, Gatera Gashabana said that he was worried of audio recordings which his clients were not asked about during investigations or before prosecution.

    He said that audios were not legally taken and therefore to qualify before court, but the presiding judge said that qualification of the recordings is another case that could be handled on its own merit.

    Gashabana welcomed the act of listening to all the audio recordings in-camera as the allegations are based on the said audios.

    Defence lawyer Pierre Celestin Buhuru reminded that they were denied audios in different times for them to prepare defence, he said that nothing they can be supporting on their clients since they will have hear audios only in court.

    He also insisted that all audios should go in-camera so that they will not be surprised during the hearing.

    The presiding judge admitted that hearing for some audios can go in-camera but denied to mention names of testimony givers.

  • 150 young entrepreneurs for capacity building

    The programme aims at supporting youth entrepreneurs into building competitive bankable ideas and businesses that impact development.

    The founder of the organization, Justin Zoradi said they target to promote young entrepreneurs into businessmen of vitality, contributing to the meeting of national development goals. “We need entrepreneurs who are ready to acquire new skills.

    The beneficiaries will get trained in four entrepreneurship components in four months. On graduation, we shall invite different investors from across the World and encourage them to invest in these projects,” he said.

    He said that Rwanda is prioritizing attraction of new investments and her youths’ thirst for entrepreneurship should be quenched through innovativeness to foster job creation.

    The 150 projects were selected under the programme dubbed ‘Accelerate Academy’, where 350 projects of youth aged between 18 and 32 competed.

    Copin Fabrice Bien Aimé, an online-based businessman said that during first days, he has been able to understand and explain clearly his business idea to the group.

    “First of all, it is important to understand your business, how you operate it, budgeting, planning and be able to explain your business to a client or investor,” he said.

    The Musanze District based basket (agaseke) weaver, Souzane Murekatete said that she has been able to understand the value chain, setting prices and good resources management.

    “Take an example; I didn’t know how much it costs me to put one basket on the market, but after considering invested time and raw materials I use, I realized that it costs me Rwf10,000. So, I need to know the price I should set to be able to earn a profit and pay taxes,” she explained.

    The last session of this programme ended in June this year by selecting eleven projects engaged in shoe making, food processing and tourism related businesses. All business in total gained a boost of $26,000.

  • Roots of change: Make migration work for rural development

    Indeed, migration has since our earliest days been essential to the human story — the source of multiple economic and cultural benefits. But when migration is out of extreme need, distress and despair, it becomes another story. Forced migration is rooted in conflicts, political instability, extreme poverty, hunger, environmental degradation and the impacts of climate change.

    In these situations, people have no choice other than to move.

    This year’s slogan for World Food Day (16 October), “Change the future of migration. Invest in food security and rural development”, addresses the structural drivers of large movements of people in order to make migration safe, orderly and regular.

    This is all the more pertinent today because the numbers of hungry people are on the rise again after decades of progress.

    According to the 2017 State of Food Security and Nutrition report (SOFI), 815 million people suffered from hunger in 2016, an increase of 38 million people compared to 2015 (777 million). This was largely due to conflicts, droughts and floods around the world.

    In fact, conflicts have driven northeast Nigeria, Somalia, South Sudan and Yemen to the brink of famine and triggered acute food insecurity also in Burundi, Iraq and elsewhere. Globally there are now around 64 million people forcibly displaced by conflict and persecution, the highest number since the Second World War. Furthermore, drought, due to an unusually powerful El Niño, has sharply reduced access to food in much of Africa.

    Rural households often bear the brunt of these drivers. Most of the world’s poor live in rural areas, and many rural youth, especially in sub-Saharan Africa, migrate in the absence of productive opportunities.

    But let’s set the story straight: Despite widely held perceptions, most of those who migrate remain in their countries of origin. There are around 763 million internal migrants worldwide, one in every eight people on the planet with the majority moving from the

    countryside to cities. Of the 244 million international migrants recorded in 2015, one-third came from G20 countries and consisted of people who moved to pursue more productive opportunities. South-South migratory flows are now larger than those from developing to the developed nations.

    {{Make migration a choice }}

    Conflict, rural poverty, and climate change, all demand increasing attention as they drive up distress migration as a last resort, which generates a tangle of moral, political and economic problems for migrants, their eventual hosts and the transit points in between. We all have roots and few of us wish to sever them. In fact, even in the most extreme situations, people would rather remain at home.

    Inclusive rural development can help on all fronts, curbing conflict, boosting sustainability and making migration a matter of choice rather than desperation.
    Decent employment opportunities – which can be generated by productive agriculture and supporting activities ranging from seed research and credit provision to storage infrastructure and food processing businesses – are urgently needed to convince a fastgrowing number of young people in rural areas that there are better fates than hazardous journeys to unknown destinations.

    Migration itself is part of rural development, seasonal migration is closely linked to the agricultural calendars, and remittances are a huge force for improving both rural welfare and farm productivity. Migrants’ contribution to development needs to be recognized and cherished, as they are the bridges between countries of origin, transit and destination.

    FAO is working to address the root causes of migration. This means promoting policy options that favour vulnerable people. It includes youth job training and inclusive access to credit, crafting social protection programmes that offer cash or in-kind transfers, specific measures to support those returning to rural areas of origin, and offering assistance for the provision of seeds, fertilizers and animal-health services, fine-tuning early warning systems for weather risks and by working for sustainable natural resource and land use.

    As co-chair in 2018 of the Global Migration Group, comprising 22 UN agencies and the World Bank, FAO will advocate for solutions that make migration an act of choice and not a desperate last resort. Agriculture and rural development have a key role to play in this.

  • Eight dead, three injured in mining quarry accident

    Speaking to IGIHE yesterday, Muhanga District Mayor, Beatrice Uwamariya, confirmed the incident saying that all the eleven affected people were practicing illegal mining.

    “Eight died instantly, but three were taken to Kabgayi Hospital for medical care. We found eleven in total, but were are not sure whether more people were inside,” she said.

    Uwamariya said that more search is being carried out to confirm whether there are no more victims.

  • Central Bank advises on auction processes

    The statement was made on Friday during a meeting between Rwanda Development Board (RDB) and players in the tourism industry from the private sector and other government institutions working closely with the sector.

    Tourism sector investors claimed that they are charged high interest rates on loans as well as inaccessibility to long-term loans, charged undocumented fees on loans and become worse when they fail to repay in the due period, getting their properties auctioned.

    In reacting to investors’ concern, the vice-governor of BNR, Dr. Monique Nsanzabaganwa said it is improper for auctions of mortgaged properties to be carried out in a process that is not transparent which breeds impropriety.

    “There are times when there are injustices and corruption in the auctioning process; sometimes when you pay much attention on how it all went you get confused. This is a big issue that needs to be addressed by all concerned institutions,” she said.

    She said that it is wrong for bank employees to decide on how the auction should be conducted where they get some kick-backs; she cautioned that it is a problem that should be taken care of if they want to rebuild the image of the sector.

    The Chief Executive Officer at RDB, Clare Akamanzi said that they are going to form a joint committee by RDB, Ministry of Finance, BNR and Private Sector Federation (PSF) that will monitor banks’ loan recovery process.

    “Our government promotes investment, tourism and private sector; I think that when we propose tangible ideas, the government will embrace them,” she said.

    Nsanzabaganwa (L) and Rwanda Revenue Authority Commissioner General, Richard Tusabe
    Participants in the meeting