Author: Wycliffe Nyamasege

Inside Kenyan companies minting billions in Rwanda

Rwanda ranks second on the African continent in terms of ease of doing business and 38th globally, according to the World Bank.

One of the attractive sectors that continues to mint profits for Kenyan firms listed on the Rwanda Stock Exchange (RSE) is the banking industry, which has attracted major Kenyan banks among the more than 20 banks, microfinance institutions, and rural savings and credit cooperatives operating in the country.

Equity Bank which opened a subsidiary in Rwanda in the fourth quarter of 2011 continues to thrive in the local market due to its focus on empowering and elevating communities at the grassroots level.

With headquarters at Grand Pension Plaza in the capital Kigali, Equity has expanded to open 46 branches and 56 ATMs across the country.

Equity Bank Rwanda was ranked third among banks licensed by the National Bank of Rwanda in terms of reported total assets, amounting to RWF 682.9 billion as of September 30, 2023.

The bank completed a merger with Cogebanque on November 30, 2023, increasing its total assets to RWF 989.7 billion, positioning itself as the second-largest bank in the country by asset base.

Additionally, the bank reported growth in its deposits, reaching RWF 749.7 billion, along with an expansion to 4,516 agents and 1,777 merchants.

Kenya Commercial Bank (KCB) is another banking giant from Kenya operating a subsidiary in Rwanda.

KCB Bank Rwanda, which entered the Rwandan market in 2014, completed the acquisition and merger of the Rwandan lender Banque Populaire du Rwanda (BPR) in 2021 and renamed it BPR Bank Rwanda Plc.

The merger which took effect on April 1, 2022, positioned BPR Bank Rwanda Plc as the second largest bank in Rwanda, before Equity acquired Cogebanque and became the second largest bank in Rwanda in terms of asset base.

BPR, with over 150 branches countrywide, registered RWF 25.8 billion in profit after tax in 2023. The lender also recorded a significant increase in its total revenue, marking a 13 per cent rise to RWF 81.1 billion. The customer deposits also rose by 33.4 per cent to hit RWF 589 billion.

In the same period, the bank’s total assets also registered a substantial growth of 15.2 per cent to reach RWF 860 billion.

Other Kenyan banks with subsidiaries in Rwanda are I&M Bank and NCBA.

I&M Bank Group from Kenya ventured into the Rwandan market in 2012 with the acquisition of the majority stake in Banque Commerciale du Rwanda (BCR).

I&M Bank Rwanda’s net profit for the year ending December 31, 2023, increased by 15 per cent, largely driven by growth across all business segments.

In audited financial results announced on March 22, 2024, the bank disclosed that its profit after tax rose to RWF 10.7 billion from RWF 9.3 billion in 2022 with the headline earnings rising by 18 per cent to hit RWF 46.7 billion.

On the other hand, NCBA began operations in Rwanda in 2017 with a micro-finance license.

In March 2018, the bank merged with Crane Bank and received a license in July 2018 to operate as Commercial Bank of Africa (Rwanda) PLC. The bank later changed its name to NCBA Bank Rwanda PLC on October 15, 2019, after the Board of Directors’ resolution to harness the strengths of NCBA Group PLC.

The bank recently announced a net profit of RWF 6 billion for the year 2023, an increase of 70 per cent compared to the 3.5 billion Rwandan francs recorded in 2022.

Besides the banking sector, a number of Kenyan companies are operating in Rwanda in different sectors including the media, where the Nation Media Group (NMG) leads the pack.

NMG, which was listed on the RSE in November 2010, mainly operates a regional paper, The East African, in Rwanda.

The company also operated KFM radio station before it shut down in 2016 over financial constraints.

NMG has operations in print, broadcasting and digital media in Kenya, Uganda and Tanzania. The brands include NTV Kenya, NTV Uganda, Daily Nation (Kenya), Taifa Leo (Kenya), Daily Monitor (Uganda) and Mwananchi (Tanzania), among other products.

Other sectors Kenyan companies have invested in Rwanda are construction, insurance, aviation, education, agribusiness, tourism and hospitality.

In the insurance sector, Britam Insurance in Rwanda traces its roots to Kenya and is among the leading insurance firms offering services to Rwandan communities.

In the education sector, Mount Kigali University was previously a campus of Mount Kenya University in Kenya. On April 20, 2023, after an elaborate process that lasted more than five years, it was granted full accreditation to operate as Mount Kigali University.

May 3, 2024
Bridging the gap: Banks meet Rwanda Agri-MSMEs to discuss inclusive financing

The event organized by the United States Agency for International Development (USAID) under the Feed the Future Initiative brought together more than 80 select MSMEs, often excluded from financing by commercial banks.

Representatives from Equity Bank and the Bank of Kigali attended the event held at the Four Points by Sheraton Hotel in Kigali, where they had an opportunity to showcase products targeted at the groups.

The event also offered the MSMEs an opportunity for agribusinesses to pitch their businesses and initiate Business-to-business (B2B) partnerships to expand their businesses.

The Bank of Kigali’s presentation focused on working capital facilities and how the bank can support agri-MSMEs to access working capital for daily operations.

The other products the bank showcased touched on financing for land acquisition, post-harvest activities, irrigation equipment, as well as the purchase of vehicles.

The bank also took the MSMEs through various unsecured facilities aimed at supporting their cash flow.

Alexis Bizimana, the Head of Agribusiness at the Bank of Kigali, said the bank offers different financing products for MSMEs, with interest rates ranging from 8 to 18 per cent per annum.

“We have different loan schemes for commercialization and delisting for agriculture transformation targeting production at an interest rate of 8 per cent. The second one is export growth funds, where we support surety for exporters at an interest rate of 12 per cent. We have an economic recovery fund for agri-processing available at 6 to 8 per cent. If we have customers under these categories; they are going to get concessional funding. Otherwise, if you come at a commercial rate, we give at an interest rate of 16 to 18 per cent,” explained Bizimana.

Michael Baingana, the Director of Finance and Investment at Hinga Wunguke, a USAID Feed the Future support program that enhances agriculture productivity and monetization, said there are still gaps that banks could take advantage of and develop more products targeting MSMEs in the agriculture sector.

“We thought that perhaps we could bring them [MSMEs] to the forefront because they potentially have some very good businesses in agriculture. We have people in production, processing, and other input suppliers, mostly women, people living with disabilities, and youths,” said Baingana.

“We are trying to see if the banks could unlock, in terms of understanding the potential in agriculture, and perhaps come up with new projects that could even help them make money from potentially very redundant but productive sectors.”

Uwera Emma, the Founder and Managing Director of I&J company, a seed company producing maize and soybeans, was among the MSMEs who attended the event.

She lauded the networking initiative, saying it helped raise awareness about financial products targeted at entrepreneurs like her.

“There are some financial institutions and banks doing things that are very beneficial to us, but you find that we are not aware. For instance, the bank I am using can only give me RWF 5 million without collateral, but these ones go up to RWF 17 million at an interest of about 9 per cent,” stated Emma.

Jessica Spence, the Economic Growth Office Director at USAID, emphasized that access to inclusive financing is crucial to improving food security and driving the economy.

“Most assessments show that one of the biggest problems is that financial institutions do not understand the agricultural sector and have limited products that speak to the needs of actors within the agricultural sector,” stated Spence, adding, “The good news is that financial institutions are beginning to crack the nut.”

May 3, 2024
Kenya gets new military chief weeks after General Ogolla’s death in air crash

In new appointments announced on Thursday, May 2, President Ruto promoted Lieutenant Gen Charles Muriu Kahariri of the Kenya Navy to the rank of General and named him the country’s new military chief.

CDF Ogolla, 61, and his colleagues died after a military helicopter they were travelling in crashed at the Sindar area in Elgeyo Marakwet County on April 18.

The investigation into the deadly crash, led by officers from the Kenya Air Force, is ongoing.

In Kenya, the position of CDF rotates among the Kenya Army, Kenya Navy, and Kenya Air Force. This rotation is in accordance with rules established by the retired Chief of General Staff (CGS), Daudi Rerimoi Tonje.

The late General Ogolla came from the Air Force. He succeeded General Robert Kibochi, who was from the Kenya Army. General Kibochi, who retired after 44 years in the military, had taken over from General Samson Mwathethe of the Navy.

{{Further military changes in Kenya
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In the Thursday changes, the Kenyan Head of State also promoted Major General John Mugaraval Omenda to the rank of Lieutenant General and appointed him Vice Chief of the Defence Forces. Until his appointment, Lieutenant General John Mugaraval Omenda served as Kenya Air Force Commander.

Further, President Ruto posted Major General Fatuma Gaiti Ahmed to Kenya Air Force and appointed her Commander. Similarly, Major General Paul Owuor Otieno has been posted to the Kenya Navy and appointed Commander.

Further, President Ruto upheld the Defence Council recommendations and made promotions, postings and appointments of KDF officers.

Major General Thomas Njoroge Ng’ang’a has been posted to National Defence University and appointed Deputy Vice-Chancellor Administration and Finance while Brigadier Peter Nyamu Githinji has been promoted to Major General and appointed Senior Directing Staff, Air at National Defence College.

Brigadier Jattani Kampare Gula has been promoted to Major General and appointed Managing Director Kenya Meat Commission.

Brigadier George Okumu was also promoted to Major General and appointed Managing
Director Kenya Ordnance Factories Corporation and Food Processing Factory.

The changes also saw Brigadier Samuel Kosgei Kipkorir named the new Deputy Commander Kenya Air Force.

May 2, 2024
Beyond gorillas: Inside diverse reasons travelers flock to Rwanda

While the perception of foreigners visiting the country has always been centered around leisure, tourism, and enchanting trips to gorilla sites, it’s interesting to note that more than half of the foreigners who visited Rwanda in 2023 (51.1%) did so for business purposes.

The growth can also be linked to a significant number of foreign investments registered in Rwanda, which also grew by 50 per cent to hit $2.4 billion (RWF 3 trillion) in 2023. These investments are projected to create more than 40,000 jobs in the next five years, according to the Rwanda Development Board.

The latest statistics from RDB show that 22.2 per cent of persons who entered Rwanda in 2023 were in transit to various destinations worldwide.

Another 11.2 per cent of the foreigners visited Rwanda for holiday and recreational purposes, with the majority of this number comprising 25,927 gorilla visitors.

Notably, the number of gorilla visitors in 2023 marked a 29.4 per cent increase from 2022, the highest number of gorilla visitors recorded in Rwanda’s history.

Gorilla tourism is a major revenue earner for Rwanda, with tourists paying at least US $1500 per person to see gorillas in the country. This fee covers the gorilla trekking permit, which grants access to the park and the gorillas.

Rwanda netted $620 million (RWF 793 billion) in tourism revenue in 2023, representing a 36 per cent growth compared to 2022.

Meanwhile, 6 per cent of the foreigners who visited Rwanda in 2023 were in the country for official missions, while 3.9 per cent of the visitors were there to attend conferences and other international forums.

Another 3.7 per cent of the visitors were in Rwanda for unspecified reasons, 1.3 per cent for education purposes, and 0.6 per cent were in the country for medical reasons.

May 2, 2024
Gov’t pledges to strengthen regional INGSA research and training hub in Rwanda

Rwanda Prime Minister Édouard Ngirente made the commitment on Wednesday, May 1, 2024, during the official opening of the 5th edition of the International Network for Governmental Science Advice Conference at the Kigali Convention Centre.

“Our Government has accepted to support the establishment of a regional unit of the International Network for Governmental Science Advice currently hosted by the University of Rwanda,” Ngirente stated.

“It is expected that this unit will expand its operations to support the creation of functional networks at a regional level and serve as a hub for capacity development for Africa,” he added.

The conference brings together policymakers, practitioners, national academies, scientific societies, and researchers to share experiences, build capacities, and develop theoretical and practical approaches to the use of scientific evidence in informing policy at all levels of government.

INGSA research and training hub was established in the University of Rwanda in 2022. The government’s support is expected to spur its development and expansion to greater heights.

In his speech, the prime minister emphasized that the government recognizes the significance of science, technology, and innovation in all sectors as crucial drivers for promoting social welfare and sustainable development in the country, in line with the vision to become a high-income nation by 2050.

“Aligned with our Vision 2050, science is expected to play a key role in Rwanda’s journey towards becoming an upper-middle-income country by 2035 and a high-income country by 2050, ensuring high standards of living for all Rwandans,” he stated.

As part of efforts to build a knowledge-based economy, the Prime Minister asserted that the government has made huge investments at all levels of education, from primary and secondary education to tertiary institutions of learning.

“Our goal is to develop our human capital by providing comprehensive trainings in different fields of science. Through this approach, we prepare our workforce with the necessary skills to meet the demands of both private and public labor markets,” the prime minister noted.

“The Government of Rwanda has established the institutional arrangement that is needed to create an environment conducive for science development and innovation. This in turn translates into new technologies needed to support the economic growth of the country.”

He reiterated that science advice is critical in policy and decision-making efforts to address the world’s pressing challenges and called for collaborative efforts to increase the capability and resilience of global science advisory organizations and national systems such as INGSA.

“To achieve this, collaborative efforts are essential. We must foster synergy across all levels of governance, ensuring better coordination between our systems. By doing so, we pave the way for effective decision-making,” he concluded.

The 5th edition of the International Network for Governmental Science Advice Conference, themed ‘The Transformation Imperative – Expanded Evidence for Inclusive Policies in Diverse Contexts,’ has attracted delegates from more than 50 countries.

It’s the first time that Africa is hosting the high-level conference, previously held in Brussels, Belgium; Tokyo, Japan; Montreal, Canada; and Auckland, New Zealand.

Rémi Quirion, the President of INGSA and Chief Scientist of Québec, termed the conference as unique moment for not just the African continent but the Global South.

“The first meetings in New Zealand, Montreal, Tokyo, and Brussels were more about talking with people from the North. What is unique here, for the first time in the Global South, for the first time in Africa, learning from African colleagues, learning from the experts in Rwanda in terms of science advice, that is one of the main objectives of this meeting. But also, we want to connect with our colleagues from the Global South. The African colleagues learning from the ones in Asia, and ones from Latin America, and so on,” Quirion stated.

He also lauded Rwanda’s young generation as a great resource in national and economic development, insisting on the need to empower them.

“One of the strengths in Rwanda is its young generation, more so than what we see in North America and Europe. It’s a natural resource. It’s amazing. But we need to make sure that they have access to education. If they are interested in science advice, science diplomacy, or research, they can pursue these fields and have good jobs in academia or other industries,” he said.

On his part, the Minister for Education, Gaspard Twagirayezu, said Rwanda is excited to host the conference and reiterated the need to maintain the network and strengthen the hub in Rwanda.

“The conference holds significance for us. As a government, we want to build an advanced economy by 2050, and this will happen based on the quality of our human capital, with science and technology at the base of everything that we do. This means we value science advice in government policy, and we are even more excited about how we are going to strengthen our hub here in Rwanda,” the minister averred.

May 1, 2024
President Kagame condoles with Kenyans as death toll from floods hits 179

President Kagame, in a message to Kenyan Head of State William Ruto on Wednesday evening, said Rwanda stands with the people of Kenya during these trying times.

“My sincere condolences to you my brother, President William Ruto and the people of Kenya, for the families displaced and the lives lost in the ongoing mass flooding in Nairobi and other parts of the country. Rwanda stands in solidarity with you and the country in this difficult time,” President Kagame stated.

Kenya confirmed on Wednesday that 179 people have lost their lives since March when the long rains started. The victims include 164 adults and 15 children.

The victims of the floods include residents of Mai Mahiu whose homes were washed away in the wee hours of Monday morning, claiming more than 70 lives and injuring scores of
others.

Water Cabinet Secretary Zechariah Njeru told the local media that the incident was a result of a blocked railway line tunnel preventing proper flow of water through River Tongi.

So far a total of 90 people have been reported missing in Kenya, while 125 people have been injured and are receiving treatment in health facilities across the country. Additionally, at least 31,341 households have been displaced, affecting 195,011 people.

Government Spokesperson Isaac Mwaura warned that April is the peak of the long rains, and the rainfall will continue to cause flooding and disrupt social and economic activities.

“We call upon all Kenyans to remain vigilant, adhere to safety guidelines and observe flood alerts. Furthermore, all Kenyans are requested to cooperate fully with emergency responders and local authorities during evacuations or rescue operations, especially in areas mapped out as high-risk areas,” Mwaura stated.

The floods have also been wreaking havoc in Tanzania in recent weeks, killing more than 150 people and injuring over 200 others.

Tanzania Prime Minister Kassim Majaliwa told Parliament last Thursday that more than 10,000 houses have been damaged and more than 200,000 people affected.

May 1, 2024
Top 10 investment sub-sectors generating most jobs in Rwanda

Latest statistics from the Rwanda Development Board (RDB) show that manufacturing is expected to create 9,900 new job opportunities over the next five years, accounting for a quarter of the jobs projected to be created in the next five years.

According to RDB, investment commitments registered by the Board in 2023 are expected to generate 40,198 job opportunities by 2029. The investment commitments grew by 50 per cent to reach $2.4 billion (RWF 3 trillion) compared to the previous year.

RDB forecasts that the agriculture sub-sector will continue to thrive, contributing to the creation of 7,600 jobs over the same period.

Real estate is expected to create 6,200 new jobs by 2029 while the agro-processing sub-sector will contribute some 4,400 jobs to the economy.

Additionally, the construction sector will generate 2,700 jobs while the accommodation and food services sub-sector will create 2,600 job opportunities over the next five years.

Electricity, gas, steam, and air conditioning supply are poised to create an additional 1,500 new job opportunities, followed by the arts and entertainment sub-sector, where approximately 600 opportunities will be generated.

The financial and insurance sectors, along with administrative and support service activities, are expected to generate 500 and 200 jobs respectively over the next half-decade.

It is also worth noting that most of the new jobs in the real estate, arts and entertainment, recreation, manufacturing, and construction sectors will be created in the capital Kigali, which attracted investments worth $2.1 billion (RWF 2.7 trillion). This accounts for 83.4 per cent of the total investments registered in 2023.

The Eastern Province which attracted investment worth $262.9 million (RWF 336 billion) in 2023 will create new job opportunities in administrative and support service, manufacturing, electricity, gas, steam and air conditioning supply, agriculture, forestry and fishing sub-sectors.

The Northern Province with investments totalling $60.8 million (RWF 77.8 billion) is expected to create new jobs in agro-processing, manufacturing, accommodation and food service activities and mining and quarrying.

Jobs in agriculture, forestry, fishing, real estate, agro-processing, manufacturing, transportation and storage, energy, accommodation, and food services will contribute to the creation of new jobs in the Southern and Western provinces, which attracted investments totalling $46.9 million (RWF 60 billion) and $40.6 million (RWF 52 billion) respectively.

May 1, 2024
Kigali Special Economic Zone has generated over 16,000 permanent jobs – RDB

Latest statistics from the Rwanda Development Board (RDB) show that KSEZ contributed to the creation of 1,300 jobs in the Rwandan economy last year.

Established in 2007, KSEV aims to accommodate various industries, including heavy and light manufacturing, large-scale industrial plants, those needing robust national/international communication networks and firms requiring close collaboration.

Additionally, it caters to wholesalers, chemical, pharmaceutical and plastic industries, as well as warehousing, telecommunications and other services.

The latest report from RDB shows that 243 companies operating within KSEZ have collectively contributed $460 million (RWF 590 billion) in export revenues since its inception.

Last year, the total revenue generated from goods and services exports amounted to $3.5 billion (RWF 4.4 trillion), representing an increase of 17.2 per cent compared to 2022.

The top 10 exports from Rwanda were unwrought gold (incl. gold plated with platinum), zirconium ore, tin ore, tungsten ore, cement, malt extract, wheat or meslin flour, cereal flours, coffee, and tea.

The United Arab Emirates (UAE) received the lion’s share of exports, amounting to 56.9 per cent, primarily consisting of goods such as minerals and horticulture products.

The Democratic Republic of Congo (DRC) was second, accounting for 10.4 per cent of the exports, followed by China (5.0%), Hong Kong (2.6%), and the United Kingdom (2.2%).

National carrier, RwandAir, transported a total of 4,595 tons of cargo, with the majority of shipments destined for Dubai, the United Kingdom, and Belgium.

The export cargo increased by 22.7 per cent in 2023 compared to the previous year.

RDB attributes the growth in export cargo to increased capacity out of Kigali to the UAE market and increased frequency of flights out of Kigali to London, which presented opportunities for more cargo shipments out of Kigali.

The opening of the route to France also contributed to the growth of the export sector in 2023.

April 30, 2024
51% of individual enterprises registered in Rwanda in 2023 are owned by women

A new report released by the Rwanda Development (RDB) shows that more than half of the individual enterprises registered in the country last year were owned by women.

Among 73,381 individual enterprises registered in 2023, 51 per cent are owned by women. Further, 34 per cent of domestic companies registered had female majority shareholding.

RDB attributes this to ongoing efforts to achieve greater gender balance in the private sector and promote women in business. This includes training and other empowerment forums and conferences organized by the Board targeting women groups.

The women-led investments were part of the $2.4 billion (RWF 3.08 trillion) new investment registrations recorded in the country last year, marking a 50 per cent growth compared to the previous year.

According to RDB, 83.4% of all investments were directed to Kigali City, with the Eastern Province, which came in second, attracting 10.6% of the investments $262.9 million (RWF 337 billion).

Northern Province attracted 2.5% of the investments totaling ($60.8 million to finish third, while Southern Province and Western Province attracted 1.9% ($46.9 million) and 1.6% ($40.6 million) of the investments respectively.

Kigali attracted huge investments in real estate, arts, entertainment and recreation, manufacturing and construction, while the Eastern Province attracted investments in administrative and support services, manufacturing, electricity, gas, steam and air conditioning supply, agriculture, forestry and fishing.

The Northern Province registered significant investments in agro-processing, manufacturing, accommodation and food service activities and mining and quarrying while the Southern Province attracted investments in agriculture, forestry and fishing, real estate, agro-processing and manufacturing.

Some of the top investments recorded in the Western Province are transportation and storage, electricity, gas, steam and air conditioning supply, accommodation and food services activities and agro-processing.

The investments are projected to create at least 40,000 jobs in the next five years.

In 2023, the investments resulted in the creation of more than 2,000 jobs. Specifically, TekExperts generated over 500 jobs for software engineers, Kivest Ltd contributed 408 jobs through agricultural projects, and C&D Leather Shoes Production Plant added 500 jobs. Additionally, RwandMoz Ltd created 134 jobs for the Aquaculture project.

RDB says the majority of the new jobs will be created in manufacturing, agriculture, forestry, fishing, and real estate activities sectors.

April 30, 2024
Kenya Airways suspends flights to DRC over continued detention of its staff

In a statement on Monday, April 29, KQ Managing Director and CEO Allan Kilavuka said the arrest of the two staffers had affected the Kenyan national carrier’s operations, making it unable to support flights to Kinshasa, the capital of DRC.

The suspension will take effect on Tuesday, April 30, 2024.

“The continued detention of our employees has made it difficult for us to supervise our operations in Kinshasa, which include customer service, ground handling, cargo activities, and generally ensuring safe, secure, and efficient operations,” Kilavuka stated.

He also demanded that the detained staff be “treated humanely and respectfully during this unlawful detention.”

KQ had earlier announced that the affected members of staff were arrested at the airline’s airport office in Kinshasa on April 12, 2024, over missing customs documentation on valuable cargo that was to be transported on a KQ flight.

Kilavuka lamented that attempts to secure the release of the staffers had proved futile due to the continued disregard of court orders by the local authorities.

The CEO said on Monday that the airline will continue to cooperate with authorities in DRC and Kenya to ensure the matter is resolved.

“We ask that the Military court’s direction that they be released to allow due process to be respected so that our innocent staff can return to their families and everyday lives without harassment,” the CEO said on Monday, further apologizing to customers whose flights have been affected.

{{KQ denies any wrongdoing
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KQ, while protesting the arrest and detention of the employees last Friday, denied any wrongdoing, insisting that the cargo under question had not cleared the cargo to be airlifted.

“The cargo was not on the airside for transportation and, therefore, not in the possession of KQ as the logistic handler was still completing documentation before handing it over to KQ. This cargo was still in the baggage section undergoing clearance when the security team arrived and alleged that KQ was transporting cargo without customs clearance.

“All efforts to explain to the military officers that KQ had not accepted the cargo because of incomplete documentation proved futile,” Kilavuka lamented.

The CEO maintained that Kenya Airways adheres to international best practices in handling and transporting cargo.

“We have stringent processes and compliance checks known as ’Ready for carriage’ to ensure any cargo ferried on our flights meets all the statutory requirements across our destinations. All our logistics partners must comply with these measures before KQ accepts any cargo,” he added.

April 29, 2024