IGIHE

Author: Léon

  • The deadline looms: How to declare and pay your 1st income quarterly prepayment tax

    The ongoing prepayment is based on sales made in January, February, and March 2024.

    Hajara Batamuliza, Commissioner for Domestic Taxes at RRA, explained that all individuals who earned profits or registered a business in 2023 and declared income tax for the first time in March 2024 are subject to this quarterly prepayment.

    “When we talk about profitable and taxable activities, there is no exclusivity. All individuals, including those who own vehicles such as motorcycles, trucks, taxis, or buses and are engaged in transporting people and goods as a profitable activity, are subject to this tax prepayment,” she said.

    “There are other sectors, such as businesses with diversified operations, service providers, and banks. All activities conducted in Rwanda, where a person received taxable income,” she added.

    For taxpayers under the real regime, you can make a declaration via the RRA website (www.rra.gov.rw). Click on “Declare Domestic Taxes,” fill in your TIN and password, and fill in the annexures if you have withholding taxes.

    Click on “Tax Declaration,” then on “New Declaration,” and search for First Quarterly Prepayment. On the declaration form, click on the declaration number. Click on “Enter Declaration” and fill in the required information on the declaration form, click ‘compare with the declaration,’ then submit your declaration.

    Micro-enterprises under the flat regime can declare their taxes by dialing *800#. Payments are made using mobile banking, Mobile Money, MobiCash, or Internet Banking.

    According to the Law establishing taxes on income, taxpayers must declare and pay a quarterly prepayment tax to the account of the Tax Administration by June 30, September 30, and December 31 of the year of taxable business activities.

    However, Article 8 of Law No. 020/2023 of March 31, 2023, on tax procedures, specifies that if a deadline falls on a public holiday or a weekend, the deadline is moved to the last working day prior to the holiday or weekend. This is the case for this month.

    “Taxpayers should be aware that the deadline is June 28. Our staff are ready to help taxpayers at all our offices across the country. I urge them not to wait until the 28th but to come earlier so we can assist them. Once they come late, it becomes difficult,” Commissioner Batamuliza added.

    Waiting until the last day can also lead to technological difficulties, which may result in late declarations and associated penalties.

    Article 82 of the law on tax procedures provides that a taxpayer who fails to declare and pay tax within the time limit provided by law pays such tax and is liable to an administrative fine of 20% of the due tax if the time limit for payment extends for a period not exceeding 30 days; 40% for a period ranging from the 31st to the 60th day; and 60% of the due tax if the taxpayer exceeds the time limit for payment by more than 60 days.

    A taxpayer who declares tax due within the time limit provided by law but does not pay that tax in the prescribed time limit pays the principal tax and an administrative fine of 5% of the due principal tax for a delay not exceeding 30 days; 10% for a period ranging from the 31st to the 60th day; and 30% if the taxpayer exceeds the time limit by more than 60 days.

  • Twenty-five University Students Excel in 2024 Capital Market University Challenge

    The Capital Market University Challenge is a competition designed to familiarize students from universities and higher learning institutions with the capital market business. It aims to cultivate a culture of saving and investment among participants, preparing them to become future investors and professionals in the industry.

    Among the standout winners of the 2024 competition were Jean Pierre Nshimiyimana, Esther Ashimwe, Vainqueur Irasubiza, Alphonse Majyambere, and Joel Rwambibi.

    The Capital Market University Challenge encourages students to embrace the culture of saving and investment that ensures sustainability. Participants are urged to explore opportunities in capital market products such as shares and bonds, as well as to consider collective investment through savings and investment clubs.

    “This award serves as motivation for students like myself still in university to begin thinking about investments and job creation through savings,” said Jean Pierre Nshimiyimana, the overall winner and a student at the University of Kigali. He plans to initiate an ICT-related project with the award he received.

    Esther Ashimwe, a student from the University of Rwanda and second-place winner, urged more female participation in future editions of the Capital Market University Challenge. “This competition boosts the confidence of girls, and increased female participation will lead to greater investment in the capital market,” she asserted.

    Thapelo Tsheole, CEO of the Capital Market Authority, highlighted the scale of participation in the 2024 Challenge, with 760 students from 37 universities across Rwanda taking part. He emphasized the programme’s role in nurturing future investors and professionals to the growth and sustainability of Rwanda’s capital market industry.

    “As Rwanda strives for self-reliance through mobilizing domestic resources for socio-economic development, active engagement in the capital market becomes increasingly vital,” Tsheole stated. He underscored the importance of investing in educational initiatives targeting students, young professionals, and potential investors.

    Pierre Celestin Rwabukumba, CEO of the Rwanda Stock Exchange, emphasized the benefits of investing in the stock market, describing it as a form of saving that yields annual returns and appreciates in value over time.

    Mr. Tsheole thanked partners such as the Bank of Kigali, BK Capital, and the Rwanda Stock Exchange for their commitment to organizing yet another successful edition of the Capital Market University Challenge.
    Mr. Thapelo Tsheole, CEO of CMA, awarded the trophy to Esther Ashimwe, the runner-up of the 2024 Capital Market University Challenge at a national levelGroup photo with winners

  • Reflections from a decade of expanding higher education for refugees – removing barriers at entry

    The third lesson we have learned in the last nine years is that our successes should be shared in order to multiply impact. While the lessons we’ve shared thus far focus on supporting refugee youth to succeed in higher education and transition to the world of work, the barriers to even accessing higher education are tremendous. Today, only 6% of young refugees have access to higher education, while the global average is 42% for youth not facing forced displacement. In most refugee hosting countries, language, cost, inconsistent or unavailable information on academic and scholarship programs, lack of support during the application process, and movement restrictions constrain the number of qualified young refugees who are able to participate in higher education opportunities.

    Kepler addressed access to our higher education programs for refugees through the creation of a preparatory program for high school students and recent graduates. Its early success pushed us in 2018 to create Iteme, bridge in Kinyarwanda, that provides digital and soft skills, advocacy and access to information, and individualized advising for youth to access any available tertiary or career opportunity. We recently added examination preparation to our program so our trainees can do well in national exams, a perquisite for entering higher education in the countries we operate in. There was a clear gap in services for many refugee youth at this pivotal transition, and Kepler saw an opportunity to use its expertise in support of the broader ecosystem.

    We wanted to do more and joined forces with a partner who had a clear vision to support displaced youth. In 2021, Kepler and the Mastercard Foundation partnered to expand the Iteme preparation program across Rwanda into Ethiopia and a third country soon to thousands of young refugees. We have served 1,364 students to date, 56% of whom are young women, and Iteme graduates have secured almost 600 scholarships to tertiary institutions. Our 2023 cohorts have already reached a 75% success rate in accessing tertiary education or employment opportunities. This is more than 12X the global average. Iteme graduates have gone on to study at numerous institutions beyond Kepler College, including Ashesi University, University of Rwanda, African Leadership University, and United States International University.

    Iteme was created to be low-cost and scalable while also providing guidance and support at the level of the individual. Kepler’s team recognized the complexities involved with everything from accessing and understanding online scholarship applications to applying for travel documents and we designed the program to allow for this level of intensive support. Program staff also support tertiary education partners to understand the complexities refugees face and what creative accommodations can be put in place.

    The Iteme staff are recent bachelor’s degree graduates from the communities we serve who complete a paid fellowship or internship, both of which allow them to gain relevant professional experience and build their resume. Kepler has found that the key to the Iteme experience is empowering refugee youth to give back to their communities while providing a living wage. The staff share common experiences with our students, understand their lived realities, and serve as role models.

    As we look to the future, our reflections on the past ten years serve as a guide for expanding access to higher education and employment for refugees, ensuring that more young people in vulnerable situations have the opportunity to achieve their potential and contribute to their communities. We are always happy to share our experience in order to multiply the opportunities and impact for the forcibly displaced. This is true solidarity.

    Editorial note: Nathalie Munyampenda is the Chief Executive Officer at Kepler
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  • Reflections from a decade of expanding higher education for refugees

    When Kepler, in collaboration with SNHU’s Global Education Movement, and with the support of the IKEA Foundation, opened a campus in the Kiziba refugee camp in Western Rwanda, we had a decade of experience supporting Rwandans from vulnerable backgrounds to access higher education and succeed in the job market. The fundamental question we faced was how to translate a proven model for high-quality education to employment into a low-resourced, isolated, and protracted refugee camp setting. Spoiler alert: We succeeded! Our Kiziba campus has served over 393 students to date, with 91% of 159 bachelor degree graduates employed, resettled or doing graduate studies.

    Kepler’s program in the Kiziba refugee camp mirrors what we offer on our campus in Kigali. So far we have also served 225 refugees on our Kepler campus in Kigali, with 78 already graduated. Admitted students participate in a foundation program, which equips them with the English, technology, and executive thinking skills necessary to succeed in the online bachelor’s degree program from SNHU or degrees from our very own Kepler College. Academic advisors regularly meet with students to further support their skills development through Kepler-created or curated modules. From day one, we focus on career readiness, modeling our classrooms after the world of work and providing explicit soft skills training.

    The secret sauce is balancing high expectations with flexibility. A core element of the Kepler model is instilling professional competencies early and maintaining high standards for their consistent demonstration. This begins with basic expectations, such as punctuality and timely communication for lateness or absences, including a plan for catching up on missed learning. Assignments must be submitted on time, and students revise their work until they achieve mastery, reflecting the skills expected by employers.

    However, working within the realities of daily life of refugees also requires significant flexibility. Our students face food insecurity, limited access to quality healthcare, and an ever-changing resettlement system while often bearing significant responsibilities at home. Our approach balances these realities with our goal of preparing students for professional success beyond the camp. We set a serious tone early on to shift students’ mindsets, emphasizing commitment through attendance and assignment completion in the first six weeks. We have clear non-negotiables to create a culture of high academic and professional expectations. Once students pass this initial phase, we provide more flexibility, including a mostly self-paced curriculum that facilitates leaves of absence for maternity, illness, or resettlement processes. At the same time, Kepler offers robust academic and mental health support, including weekly advising sessions, access to a full-time counselor, and specialized guidance for students at risk of dropping out.

    Alumna Divine Nyiraburanga’s journey illustrates Kepler’s balance between high expectations and flexibility. Married with a child and working as a volunteer teacher, she faced challenges with English and limited time for studies. Academic advisors worked closely with her, providing additional tutoring and guidance for managing her work load. When Divine’s second child arrived, she took a three-month maternity leave during which Kepler staff visited her to keep her connected with the community and provided resources to practice English. They helped her manage challenges, like arranging financial assistance for someone to bring her baby to campus for breastfeeding and making the decision to leave teaching to focus full time on her studies. The Careers team later secured a remote internship in Communications for her, allowing her to stay in the camp and care for her children. After graduating with a bachelor’s degree, Divine started a business importing traditional fabrics, which enabled her to move outside the camp and have the flexibility she wanted to focus on her family.

    Yesterday, I shared more on the lessons we have learned supporting refugees to transition to employment. https://en.igihe.com/education/article/reflections-from-a-decade-of-expanding-higher-education-for-refugees

    Editorial note: Nathalie Munyampenda is the Chief Executive Officer at Kepler

    Alex Buisse / Kepler

  • Reflections from a decade of expanding higher education for refugees – transitions to employment

    The second lesson we learned is that our model would not be successful if refugees could not find employment and take care of themselves and their families. Unlocking formal employment for our refugee graduates in Rwanda required a dual focus on advocacy and our usual robust skills preparation.

    This involved educating both employers and refugees on labor laws and processes. We found the most success when refugee students demonstrated their potential to employers before disclosing their status. Many alumni, both refugee and Rwandan, secure jobs at organizations where they began as interns. Internships are our most powerful tool to show employers that Kepler graduates possess the mindset and skills their companies need. Our Careers team encountered reluctance from employers to hire individuals with refugee status. However, in an internship setting, students can prove their competency before revealing their status. By the time a job offer is made, employers are unlikely to rescind it due to the candidate’s refugee status.

    Educating refugee youth on their legal rights, including the right to work, fosters self-advocacy, independence, and initiative. Kepler regularly discusses with its refugee students how and when to disclose their status to potential employers, walking through possible scenarios and responses. In more challenging policy environments, we are expanding employment options to include remote opportunities and emphasize quality entrepreneurship training and support.

    For us, employment for graduates with refugee status is critical because of the wider impact to both their refugees themselves and their families, as well as the community. Our Kiziba graduates were among the first refugees hired by humanitarian actors in Rwanda and are shaping a broader dialogue around employment and self-reliance for refugees. In all, nearly two-thirds of Kepler learners find social sector jobs that give back to their communities. In this way, Kepler’s is working to create decent employment for Africa’s young people, with a critical multiplier effect.

    Take Alumnae Claude Safari for example. His professional journey from Kepler Kiziba student to an experienced manager shows the importance of internships in the transition from education to career. While studying for his bachelor’s degree, Claude completed two mostly remote internships that allowed him to practice new skills in a professional setting while earning additional income. After graduating, Claude took a third internship with a logistics and global trade company in the capital, Kigali. He quickly impressed his employers and was given the position of Tally Clerk and later promoted to Warehouse Manager at another company.

    There are many stories like Claude’s. For us, employment outcomes remain our measurement of success. And we are working to do more in sharing our model with others. More on that tomorrow.

    Editorial note: Nathalie Munyampenda is the Chief Executive Officer at Kepler
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  • Kagame implores youths to embrace active politics

    The Head of Sate made the appeal on Monday, June 17, during a live interview on the National Broadcaster RBA where he addressed various global issues but also highlighted on the upcoming Presidential and Parliamentary elections slated for July 2024.

    Kagame advised youths who shy away from politics to think twice because all decisions made by countries in the world, whether good or bad, are as a result of politics.

    “There is no where you are going to run away from politics, this is a fact. You, especially the young people should join us and we combine efforts to strengthen the good politics,” he said.

    “The question is; can I succeed where others have failed? Can I be selfless, learn to do something and be present to help participate and contribute to the good policies? This is what is expected of you,” he emphasized.

    Kagame pointed out that as leaders, consensus and deeper cooperation among African countries should be fronted to collectively find solutions to problems affecting the continent, through different channels.

    “Africa has many challenges but the continent has even more opportunities and resources to steer its growth, no doubt about that. But it is always going to be politics that creates these gaps and loopholes which are used by those who want to exploit Africa and keep it underdeveloped,”

    He warned that if African countries remain divided and conflicting, as has been the norm, “then we are just keeping ourselves where the “haters” want us”.

    President Kagame’s remarks come just five days to the start of Rwanda’s Presidential campaigns in which he is also a participant.

    He was earlier this year nominated as the flag bearer of the ruling party RPF-Inkotanyi, to which he is also the Chairman.

    He has pledged to bring closer to the people more essential services such as schools, roads and other developmental infrastructure for the wellbeing of all Rwandans.

    “It is our business as leaders of our country because we know better, we want better, and it’s possible. We must do it and working together is going to be the starting point.”

    Kagame noted that whereas some African countries try to push for individual growth, it is until Africa unites as a whole that every country on the continent will become significant.

    The Head of Sate vowed to spearhead this unity by theoretically opening the discussion in public for those who know the right thing to do even though many of them may not show up to do it.
    Kagame advised youths who shy away from politics to think twice because all decisions made by countries in the world, whether good or bad, are as a result of politics

  • Liquid Intelligent Technologies Rwanda expands fixed broadband connectivity to users in upcountry regions

    Liquid Home has been at the forefront of connecting homes to fibre and providing high-speed internet connectivity across Africa since 2017. The expansion of the Liquid network in Rwanda is a significant step in achieving the vision of a digitally connected Rwanda. With Nyamata, Huye, Muhanga, and Rusizi joining several connected cities and estates in Kigali and upcountry, including the districts of Rubavu and Musanze, we are bringing the benefits of the digital age to more people. The fibre network deployment for other districts is also ongoing to increase fixed broadband penetration across the country.

    “Fixed broadband internet penetration is relatively low, and expanding our network to these previously unconnected districts provides more households and businesses with affordable, reliable internet, reaffirming our commitment to bridging the country’s digital divide. Our tailored package for users in these four regions makes the internet connectivity even more affordable and accessible” said Alexis Kabeja, Chief Executive Officer of Liquid Intelligent Technologies Rwanda.

    Users have access to an affordable package with 50Mbps internet speeds for only Rwf 20,000 per month, which provides them with the broadband connectivity they need to succeed in their daily busines. By extending further outside of the City of Kigali, Liquid Rwanda is empowering more citizens with the digital infrastructure they need to contribute to the country’s economic growth. As part of this initiative, we have made an exclusive package available to new subscribers in these upcountry regions. This package is designed to make high-speed, 24/7 internet access more affordable, with features such as unlimited data, free installation, and a dedicated customer support line.

    Driving internet penetration and bridging Rwanda’s digital divide is one of Liquid Rwanda’s key objectives and aligns with the company’s aim of a digitally enabled Africa in which no one is left behind.

    Liquid Intelligent Technologies, part of Cassava Technologies, operates in over 25 African countries. It offers a 110,000 km fibre network and satellite connectivity, providing high-speed internet, cloud, and cybersecurity solutions. Liquid serves public, private, and SME sectors with tailored digital solutions.
    Liquid Intelligent Technologies (Liquid) has announced the extension of its fibre network to Nyamata residentsAlexis Kabeja, Chief Executive Officer of Liquid Rwanda explaining to Nyamata residents how expanding Liquid’s network to these previously unconnected districts provides more households and businesses with affordable and reliable internet3_2i1a9872.jpg4_umuyobozi_mukuru_wa_liquid_intelligent_technologies_alexis_kabeja_yavuze_ko_iyo_internet_izagira_uruhare_mu_kwihutisha_iterammbere_ry_imijyi_yunganira_uwa_kigali.jpg

  • Shelter Afrique: A Case of Good Money After Bad – Is Status Quo an Option?

    Institutional Context and Transformation

    The new CEO’s tenure began with plans to transform Shelter Afrique into the Shelter Afrique Development Bank (ShafDB). However, Hann inherited an organization marked by over a decade of institutional instability, with several CEOs averaging two-year terms and a series of unresolved and recurring scandals. Since its creation forty years ago, Shelter Afrique has faced persistent financial difficulties, recording significant cumulative losses in recent years. Its total assets stood at a mere USD 270 million in 2022, a trivial amount for a pan-African institution whose mandate requires enormous resources, estimated in the tens or even hundreds of billions of dollars. This financial profile makes it difficult for Shelter Afrique to mobilize substantial financial resources due to a combination of institutional, financial, and operational weaknesses.

    Diverging Trajectories from Sister Institutions

    Shelter Afrique was established by the African Development Bank (AfDB) in 1982, alongside other specialized financial institutions for Africa’s key development sectors:
    – Habitat and urban development: Shelter Afrique
    – Intra and extra African trade: Afreximbank
    – Reinsurance: Africa-Re
    Since their creation, these institutions have experienced varying fortunes. By the end of 2022, Afreximbank’s total assets were USD 28 billion, while Africa-Re’s were USD 2 billion, respectively about 100 and 10 times larger than Shelter Afrique’s. This stark divergence highlights Shelter Afrique’s lagging progress. It raises questions about whether congenital flaws at inception continue to affect its persistent lack of effectiveness.

    Institutional Malaise

    Despite Hann’s arrival, Shelter Afrique struggles to gain momentum, partly due to significant arrears accumulated by shareholders and limited access to capital markets. Shareholders’ reluctance to support capital increases in 2013 and 2017 and the lack of interest from the other 10 countries that have yet to join the institution reflect underlying mistrust and indicate a lack of confidence in the institution’s future and capacity to deliver on its mandate and address the critical issue of housing and urban development. This situation is exacerbated by a lack of on-ground impact, recurring institutional crises, and scandals that have plagued Shelter Afrique for years.

    A Pivotal Moment: The Annual General Meeting (AGM) in Kigali

    The upcoming AGM to be held on 11-13 June 2024 in Kigali represents a crucial opportunity to address these persistent issues. Issues on the agenda will include modification of the statutes and formally transforming the institution into the Shelter Afrique Development Bank. This AGM could be pivotal in resetting and course-correcting the trajectory of the institution and catching up on lost time amidst an environment of institutional fragility and uncertainty.

    A Critical Dilemma for Shareholders

    With tightening fiscal space and numerous internal and external obligations, including increased debt servicing, member states with accumulated arrears face tough decisions regarding the optimal use of taxpayer funds. Before clearing these arrears, they must obtain satisfactory answers to a fundamental question: “What is the return on investment for their taxpayers, both as shareholders and beneficiaries of the investments made on their behalf?”

    Time for A Hard Look

    Given the current situation, it is essential for shareholder representatives to enforce a profound restructuring of Shelter Afrique to provide it with solid institutional foundations. Shareholders, partners, and financial markets are looking for strong signals from Kigali. This expected restructuring should involve all stakeholders and adhere to best practices in institutional governance and operational excellence. Alternatively, shareholders may consider setting up a new entity with the required corporate governance structure, financial resources, and operational capacity to address Africa’s enormous deficit in housing and urban development. It is incumbent upon them to take a hard look at the state of affairs and make the tough decisions required to meet the needs of Africans.

    The Enormous African Housing Deficit

    Africa’s population is projected to reach 2.5 billion by 2050, with around 60% living in urban and peri-urban areas, representing an increase of approximately 1.2 billion new urban dwellers. To meet these needs, Africa requires a robust Shelter Afrique. AfDB President Akinwumi Adesina estimated at a high-level forum for mayors during the 2023 Africa Investment Forum in Marrakech, Morocco, that investments in Africa’s housing sector should reach USD 140 billion annually, roughly 5.5% of the continent’s GDP. Clearly, as currently constituted and operating, Shelter Afrique, which was created to be the lead actor in the housing space, is not able to play that role and have the expected impact.

    Kigali: The Place for Bold Decisions and Decisive Actions

    Faced with the gaping mismatch between the institutional and financial capacity of Shelter Afrique and the enormous housing and urban development needs of the continent, the AGM in Kigali presents a crucial opportunity. It is hoped that shareholders will be inspired by Rwanda’s commitment to the highest standards of corporate governance, uncompromising focus on service delivery excellence, and accountability to taxpayers to make the bold decisions and take the decisive actions required.

    Future Prospects

    Given these enormous housing needs, what can Shelter Afrique achieve with its modest resources and accomplishments over more than four decades? Considering these figures and the current state of Shelter Afrique, what can be hoped for, and what should be done? The 44 member states, along with 10 other countries not yet part of the institution (including Egypt, Ethiopia, Sudan, and South Africa), seek concrete answers from a reformed Shelter Afrique.

    Conclusion

    Shelter Afrique stands at a critical juncture. To overcome its institutional and financial challenges, a deep restructuring cannot be avoided. The decisions made at the June 2024 assembly will be crucial for the institution’s future and for addressing Africa’s urgent and massive housing needs.
    Africans, both as taxpayers and as beneficiaries of effective housing and urban development solutions, deserve nothing less. Anything else would-be dereliction of duty.
    Shelter Afrique was established by the African Development Bank (AfDB) in 1982.