Author: IGIHE

{Members of Parliament have expressed dismay over the way budget allocated to districts is utilized with some having failed to even spend a half despite the fact that there are many projects meant to be executed but are stalled. }

This was unveiled yesterday during the general assembly in which parliament received a report from Deputies’ Committee on National Budget and National Patrimony on visits held in various districts assessing the execution of the budget.

The assessment is conducted before setting the new budget to identify how the previous budget was utilized, whether the district has debts or other problems.

Constance Mukayuhi Rwaka, the chairperson of the parliamentary standing committee on Budget and National Patrimony revealed that there are gaps in spending practices and delays by partners to transfer pledged funds which arrests the progress of district projects.

“There has been poor utilization of funds budgeted for the financial year 2016 / 2017 which leaders attribute to late receipt of funds.

Honourable MP Constance Mukayuhi Rwaka reiterated that there is a new draft law expected to ease the way Rwandans pay taxes which will enable districts to find adequate budget.

The deputy speaker of lower parliament chamber, Mukama Abbas explained that some public institutions have not yet sent funds they owe to districts yet the annual budget remains with only two months to close.

“Why don’t such public institutions release the money which doesn’t belong to them? How do districts operate under such circumstances?” he wondered.

MP Muhongayire Christine unveiled that they realized a gap in the budget of development activities where only 34% was used and called for strategic measures in addressing the issue.

“You have presented that some launched projects get jeopardized in process. All such funds should be poured in the budget on time to fast-track execution of the projects,” she said.

“It should be better to complete existing projects other than launching others that will be jeopardized during execution,” she added.

MP Kalinijabo Barthélémy stressed the need to make a clean tax payers’ register in collaboration with Rwanda Revenue Authority to enable districts do proper budgeting based on real statistics other than expecting huge amounts they will not be able to collect.

{Kigali city is set to exploit the land on which Deutche Welle international radio operated for 53 years before closing doors. }

This has been unveiled by the director of urban planning and construction in the City of Kigali, Eng. Fred Mugisha in an interview with IGIHE.

“We have reserved the land for trasmission mast infrastructures. Such masts will be either owned by radios or telecommunication companies,” he said.

The said land where Deutche Welle radio was, had been leased to German which she handed back to Rwanda last year.It had been leased since 1963.

{The Ministry of Finance and Economic Planning (MINECOFIN) has allayed worries of Members of Parliament who raised concerns on trade and investment cooperation agreements signed with foreign countries wondering whether it benefits investors without considering Rwanda’s interests.}

The worries were allayed yesterday as MINECOFIN presented to parliament a draft law that intends to do away with double taxation.

Rwanda and Morocco signed 22 cooperation agreements when King Mohamed VI visited Rwanda in October 2016.

The agreements include projects of building a pharmaceutical plant in Rwanda, African Institute of Technology, buying 76.1% shares in Cogebanque at USD 41 million and establishing a Mutual Fund worth USD 300 million to be invested in various projects among others.

Some of the clauses in the agreements spell out removing double taxation and barring tax fraud.

Inquiring into how such agreements benefit the country MP Nkusi Juvenal wondered: “It is usual to sign business cooperation agreements between countries with bilateral cooperation. They are not the first agreements to be ratified. How is the situation in countries with which we signed agreements? Do these companies come to operate in Rwanda? Don’t they prefer paying taxes home other than bringing taxes to Rwanda? Don’t they concentrate on their home’s interest and found ourselves supporting them other than benefiting from agreements.”

MP Gatabazi Jean Marie Vianey said “I want the minister to give details on benefits we obtain from signed agreements.”

Dr. Uzziel Ndagijimana, the Minister of State in charge of Economic Planning in the Ministry of Finance and Economic Planning (MINECOFIN) who represented the government explained that follow up is made to turn agreements into profitable interactions.

“When the government of Rwanda signs such agreements with a foreign country, it targets common interest and particular benefits to tax payers and Rwandans running businesses in the foreign country. Agreements that remove double tax taxation and barring tax fraud help us to promote economic relations with the country we signed agreements,” he said.

“Agreements also bring benefits through information exchange,” he added.

{Bralirwa, Rwanda’s largest brewer and soft beverage company has unveiled a plan to increase the production of brewing inputs from within the country to cut down on foreign exchange spent on importing the same. This follows a huge decline in the profit margins that fell by 80.3% last year where the company earned over Rwf 1.3 billion profit in 2016 compared to more than Rwf 7.1 billion in 2015. }

The sales of drinks, in total, reduced by 1.4%; from 1,809,000 in 2015 to 1,784,000 hectoliters in 2016.

In a press conference yesterday, the Managing Director of Braliwa Victor Madiela unveiled three major reasons that triggered the decline of the firm’s performance.

“The first is monetary depreciation in Rwanda which seriously affected prices of our raw materials. As you know, 60% of our materials are imported. These include malt, sugar and labels. We pay for them in hard currencies which don’t often face depreciation like Euros or Dollars,” he said.

Madiela attributed the second cause of profit margin decline to investments Bralirwa has been making for years, building the plant’s capacity for long term benefits. In 2012, Brwalirwa invested $41million in its Gisenyi brewery branch and Kicukiro soft beverage branch in Kigali city. It also involves the project of manufacturing soft drinks packaged in plastic bottles.

He explained that the other cause of margin decrease is related to Rwanda’s monetary depreciation citing the price of investment along with obtained loans when the value of a dollar is low yet payments of the loan extend even the dollar value is increased.

Bralirwa got a USD 35 million loan of which 25 million came from International Finance Corporation (IFC).

{{Plans to raise profits }}

Madiela has explained that several projects were made while others are being undertaken promising to bring in better tangible results. He unveiled that raising costs for drinks which have been constant for five years will be part of initiative to boost revenues.

“Firstly, we increased prices of soft drinks from August last year and alcoholic drinks in January,” he said.

“Secondly, we are revising our internal spending mechanisms. It doesn’t mean we will stop releasing money but will be more frugal,” he added.

Madiela pointed out an example where Bralirwa has cultivated a large piece of land in Kayonza district in collaboration with MINIMEX under BRAMIN project to produce maize used in brewing. He said that Bralirwa uses 40% of local products but targets 60% by 2020.

Madiela unveiled that some cereals including wheat are still imported but have started planting them in Rwanda and had the first harvest last year.

The brewer will also unveil new drinks to create diversity and boost profitability.

{President Paul Kagame has called for urgency in the implementation of the African Union reforms adopted at the last African Union Summit in January this year.}

The Head of State was speaking in Conakry, Guinea at the invitation of President Alpha Conde, the current Chairperson of the African Union. Alongside President Kagame were President Idriss Deby of Chad, and African Union Commission Chairperson Moussa Faki Mahamat.

{{Read President Kagame’s full speech below:}}

Good morning. It is a pleasure to be back in Conakry.

I would like to begin by thanking our brother, President Conde, the Chairperson of our Union, for inviting us for this important consultation on the institutional reform of the African Union.

I also thank his predecessor, President Deby, for being with us today, and for having initiated this new chapter of reform.

As you know, under their dynamic leadership, the Assembly of Heads of State adopted a wide-ranging decision this past January that is going to make the African Union more relevant and fit-for-purpose. Under the leadership of President Deby, and now President Conde, we are seeing this take root.

Implementing these measures is critically important for Africa. We take it very seriously and this is why President Conde has brought us here today.

We intend to review the implementation timeline and ensure that the new Commission has the resources needed to move forward at full speed.

I am pleased to say that Chairperson Moussa is off to a good start. He has made reform a priority. As the Heads of State mandated to supervise the process, we stand ready to provide him and his team whatever support they need, as we continue the reforms as necessary.

Allow me to take this opportunity to remind you of the main components of the reforms, and most importantly the reasons why they were adopted.

First, the African Union will focus on key priorities with continental scope, while empowering Regional Economic Communities to take the lead where they are best placed to do so.

Second, re-align African Union institutions to deliver on those key priorities.

Third, connect the African Union more closely to citizens, so our people feel they have a stake in its work.

Fourth, manage the business of the African Union more efficiently and effectively, notably in how Summits are conducted and how personnel are selected.

Finally, finance the African Union sustainably from our own resources. Beyond the details, it’s really about embedding a mindset in this institution of always striving to do the best for our people.

The basis for the urgency of these measures is clear. The global context is changing rapidly. Standing united, with a common vision of our continent’s interests and aspirations, we can bend the trail of history in Africa’s favour.

There are two priorities to focus on in the time ahead, leading up to the next Summit.

First, we need to accelerate the decision to finance the African Union with a levy on eligible imports. Everything else flows from this and we cannot afford to get bogged down.

The second priority is to move quickly with those reforms, which can be implemented right away.

One example is speaking with one voice, when Africa as a whole engages with external partners. Nobody benefits from the confusion inherent in the current method of doing business. The Chairperson of the Commission and the Chairperson of the African Union should take the lead.

Another example is to agree on a binding mechanism to ensure that Member States are held accountable for respecting key African Union decisions, such as the ones on financing and institutional reform.

These would be strong signals that we are serious about doing things differently.

The mood for change is already there and we have a clear roadmap. Let’s capitalise on it, prioritise the next steps, and keep up the good momentum.

In that spirit, I look forward to welcoming Chairperson Moussa, as well as African Union Foreign Ministers and Permanent Representatives, in Kigali in early May for an extensive briefing on reform implementation.

Let’s work together to shape the future we want for Africa.

I thank you.