Category: Business
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Faster border crossing for goods set to boost Rwanda’s international trade
The project aims to streamline cross-border trade by removing Non-Tariff Barriers (NTBs) and automating trade processes, providing a much-needed boost to Rwanda’s economic growth. A key component of the new project is the automation of cross-border trade processes.
Rwanda has already implemented an Electronic Single Window system to simplify international trade, and the project will enhance this system further. The upgraded system will allow businesses to submit all required import and export documents through a Single Transaction Portal without physically visiting different agencies.
Approvals will be granted within 24 hours, and traders will benefit from advance clearances for their goods. The Commissioner General of the Rwanda Revenue Authority, Ronald Niwenshuti, expressed confidence in the project’s ability to simplify trade processes.
“RRA has embraced technology not only for customs modernization but also for its entire operations. This phase of Rwanda’s Electronic Single Window builds on the very impactful and successful first phase, and we are confident that it will simplify service delivery and further reduce the cost of doing business with Rwanda,” he said.
Boneza Ubucurizi is implemented by IBI, a U.S. business that works with local experts to drive the interventions. Jackie Zizane, Chief of Party, acknowledged the spirit of collaboration and commitment among stakeholders, which she believes will be vital to achieving the project’s objectives.
“We recognize the importance of partnership and cooperation in overcoming the challenges posed by non-tariff barriers. I believe that this collaborative effort will drive significant progress in promoting cross-border trade and economic growth in Rwanda,” Zizane stated.
Keisha L. Effiom, the USAID Mission Director for Rwanda and Burundi, highlighted the significance of a strong private sector for Rwanda’s development.
“Projects like this one are key for development: with its laser-focus on fixing the obstacles, it will bring benefits to the private sector, the government, and the Rwandan consumers,” she noted.
Effiom emphasized the holistic approach that USAID takes towards development, saying, “When the private sector grows, the country as a whole prospers, because businesses reinvest their earnings into operations and local communities.”
NTBs are obstacles that increase the cost of doing business, unrelated to the direct payment of tariffs. For landlocked Rwanda, issues such as paperwork and wait times along the major transport corridors to Mombasa and Dar es Salaam ports are a significant burden.
Goods are often delayed for days at border points, resulting in higher costs that ultimately affect consumers.
As such, the Rwandan government has established National Monitoring Committees on NTBs to identify and eliminate these barriers.The Feed the Future Rwanda Trade Facilitation project will work closely with these committees, strengthening Rwanda’s strategy for removing NTBs and improving the overall trade environment.
Another major improvement is the expansion of ASYCUDA World, the Rwanda Revenue Authority’s customs software, which will include new features like an Advance Ruling Mechanism. This mechanism allows customs decisions to be made online before the goods even reach the border, reducing wait times and improving efficiency.
The Feed the Future Rwanda Trade Facilitation Activity is a four-year project funded by the United States through USAID, with a budget of $5 million. Its goal is to eliminate NTBs, increase the automation of cross-border trade, and promote seamless and efficient trade processes that benefit Rwandan businesses and consumers alike.
By improving the efficiency of trade and reducing the costs associated with border crossings, this initiative will position Rwandan companies for greater success in international markets and contribute to the overall economic growth of the country.
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Dangote topples Rupert to reclaim title of Africa’s richest man
Rupert, the chairman of the Swiss-based luxury goods company Richemont and the South Africa-based company Remgro, made headlines in late August after toppling Dangote, who had topped the list for years.
However, the latest Billionaires Index published by Bloomberg on September 8, 2024, shows that Dangote has reclaimed the top spot with a total net worth of $13.2 billion, compared to Rupert’s $13.1 billion.
The Bloomberg Billionaires Index is a daily ranking of the world’s richest people. The figures are updated at the close of every trading day in New York. Another popular ranking platform is Forbes magazine, which ranked Dangote as Africa’s richest man for the 13th year in a row in January this year.
Before overtaking Dangote last month, Bloomberg reported that Rupert’s net worth had surged by $1.9 billion to $14.3 billion over the past year, placing him 147th globally, 12 places ahead of Dangote.
The latest ranking, however, shows that both billionaires’ wealth has fallen, with the Nigerian’s fortune dropping by $1.84 billion this year. He currently ranks 159th globally, while the South African ranks 163rd.
The decline in Dangote’s wealth over the past year has been attributed to Nigeria’s challenging economic environment, where his conglomerate primarily operates.
Nigeria is grappling with a high inflation rate, which stood at over 30% in August. The removal of fuel subsidies by President Bola Tinubu when he assumed office in 2023 is said to have contributed to the high inflation and the sharp fall in the value of the naira, which has significantly affected Dangote, whose wealth is largely tied to assets denominated in the local currency.
Dangote, 66, made his wealth in the cement and sugar industries. In recent years, he has expanded his empire with investments in oil, gas, and fertilizer plants.
On the other hand, Rupert and his family are known for their company Richemont, which deals in luxury goods such as jewellery, watches, fashion, and accessories. The company owns various brands, including Cartier, Montblanc, Vacheron Constantin, and IWC Schaffhausen.
Additionally, the South African’s Remgro Ltd has interests in healthcare, consumer products, financial services, infrastructure, industrial, and media sectors.
Besides Dangote and Rupert, other African business magnates listed among the top five include Nicky Oppenheimer (South Africa), Nassef Sawiris (Egypt), and Natie Kirsh, with fortunes of $11.1 billion, $9.42 billion, and $9.14 billion, respectively.
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Prime Insurance’s medical revenue hits over RWF 2.5 billion in six months
Since the launch of Prime Insurance medical cover in December 2021, Prime Insurance medical insurance is growing at a promising rate thanks to the partenrship with service providers in this space.
In 2023, Prime Medical Insurance generated RWF 3.5 billion, while by August 1, 2024, it had already earned over RWF 2.8 billion.
Col (Rtd) Eugène Murashi Haguma, the CEO of Prime General Insurance, emphasized that medical insurance plays a crucial role in the well-being of the population and should be improved to provide clients with quality services.
He stated, “Insurance is a way for many people to pool their money together. The money they contribute is not ours; it belongs to our clients. What we aim for is to ensure that people never lack medical care because we manage that money well and provide treatment until the agreed-upon term ends.”
Mike Byusa, the Commercial Director at Prime General Insurance, noted that the growth of medical insurance at the company is promising, as it accounted for 20% of the total income in the first six months of 2024.
He mentioned that discussions with their partners aim to assess how well the services are received, exchange ideas, and determine where to focus efforts for further improvement.From the discussions, he revealed that Prime Insurance identified areas for further enhancement, such as speeding up the reimbursement process for medical claims, accelerating service delivery, and improving communication with partners.
Umutoni Carine, a representative from a hospital working with Prime Insurance, highlighted that meetings with the company’s management reinforce collaboration and are expected to improve.
She said, “It is a good initiative for Prime Insurance to bring us together to exchange ideas. These discussions are beneficial for expanding our cooperation. We talked about suggestions and areas needing more effort, and we hope these will be addressed.”Aimé Lambert Kadende Shyaka, an employee at Kipharma Pharmacy, emphasized that both parties should work to strengthen their cooperation, particularly in stabilizing fluctuating medicine prices in the market.
In the six months ending June 2024, Prime General Insurance earned over RWF 11.6 billion, with RWF 2.5 billion coming from medical insurance.Prime Insurance anticipates that by the end of 2024, it will generate over RWF 4 billion from medical insurance services.
Currently, Prime Medical Insurance offers individual and family medical insurance services, as well as coverage for various organizations.
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Heifer supports Rwandan farmers with 15 tractors
Heifer International provided this equipment through the ‘Mechanization for Africa Initiative,’ a project that offers agricultural machinery on a loan payment plan. This initiative has been operational in three African countries since 2022, and Rwanda becomes the fourth, following Uganda, Kenya, and Nigeria.
The handover event was officiated by the State Minister in the Ministry of Agriculture and Animal Resources, Eric Rwigamba, who expressed that the project is expected to accelerate agriculture in Rwanda.
He said, “It will help farmers cultivate faster and on time, enabling them to achieve higher yields. When you look at a farmer cultivating 10 or five hectares, they can hire manual labor, but often the delay causes them to miss the rainy season.”In the next phase, an additional 15 tractors will be distributed to help farmers cultivate larger areas in a shorter time, increasing both the quantity and value of the yield.
Heifer International’s Vice President for Africa, Adesuwa Ifedi, stated that the organization is pleased to launch this program to uplift Rwandan farmers and noted that in other parts of Africa where it operates, the initiative has already advanced the level of local farming.
She said, “It helps farmers cultivate larger areas, which translates into higher income. We are pleased that, over the last two years, this program has improved agriculture in other countries. For instance, one testimony we received here was from a farmer who increased his cultivation from one hectare to five hectares thanks to the machine.”
Heifer International’s Director in Rwanda, Verena Ruzibuka, mentioned that the project will also create job opportunities for the youth across the country by connecting them with farmers who need these services.
However, Ruzibuka urged more partners to join the initiative to assist more farmers in accessing these loans.
She said, “We’ve provided the initial funding for the project, but we encourage financial institutions to explore how they can also get involved. We’ve seen interest from other donors, but we invite more partners to join us on this journey to help provide mechanization for more farmers.”
{{Modus operandi}}
Heifer International will provide the tractors in collaboration with a company called Hello Tractor, which connects the owners with farmers in need. A farmer who requires the tractor must cultivate at least 500 hectares annually, and cooperatives must have 500 hectares under cultivation.
Farmers are required to make an initial payment of 5% of the machine’s cost and sign a contract with Hello Tractor, which outlines the terms and conditions of collaboration. They typically pay for three to five years; after which they own them outright. Those who meet the criteria can register on the Hello Tractor website, undergo an assessment, and be connected with the providers.
A facility for machine maintenance will soon be built in Kayonza District in the Eastern Province.
Each tractor provided has a value ranging from Rwf45million to Rwf50 million. They come with large plows that can cultivate, harvest, and perform other functions depending on the farmer’s needs. -
Irembo sets sights on private sector in expanded service offerings
Speaking during a media engagement in Kigali on Wednesday, September 4, 2024, Irembo’s Chief Operations Officer, Patrick Gategabondo, said the expansion strategy aligns with the company’s vision of providing a unified platform for all types of services.
Irembo, established in 2014, is renowned for developing and maintaining IremboGov, a one-stop portal for e-governance services and the gateway to Rwandan government services. Some of the new services on the platform include applications for import permits, business operator licenses, premises registration services, the legalization of public documents from Rwanda to be used abroad (Apostille), and ID replacement for diaspora residents, among others.
As part of its expansion strategy, Irembo has obtained a Payment Service Provider (PSP) license from the Central Bank, which enables the company to offer secure and efficient digital payment solutions through its platform, Irembopay.
“We’ve seen how our collaboration with the government has effectively addressed challenges in government-to-citizen and government-to-business services. We believe this approach will be even more impactful in solving business-to-citizen and business-to-business needs,” Gategabondo stated.
As part of its expansion strategy, Irembo has also set its sights on markets beyond Rwanda’s borders, aiming to forge broader partnerships and extend its influence regionally and internationally, particularly the Global South.
“Irembo was a brainchild of the new Rwanda, but when it began being developed, we immediately understood that there was no way we could build a solution that does not extend beyond just Rwanda. So, one of the absolute plans and dreams we have is to build something so intelligent that it will actually help build other continents,” Gategabondo explained
Considering that there are more or less similar issues in terms of access and reaching out to citizens this development seeks to replicate the model available in Rwanda in other places including Central, Western, Southern, Eastern Africa, and beyond.
“We have a strong belief that we are on the right path, and hopefully, if we can move forward soon enough, we’ll be able to reach the next level,” Gategabondo said, emphasizing the company’s future plans.
IremboPay is a digital payment gateway that allows companies and other organizations to receive digital payments. It supports various payment options and is integrated with telcos, mobile money, and credit or debit cards.
Kevin Kabera, the Business Development Manager at Irembo, told IGIHE that the service, which has primarily been operational for government institutions, has now begun expanding into the private sector.
“Now that we’ve secured the license from the Central Bank, we are currently engaging different private companies to start supporting them with digital payment collections,” Kabera revealed, adding, “Irembopay is fully integrated with Momo, Airtel Money, different banks and cards.”
The recent certification from the National Bank of Rwanda (NBR) allows Irembo to compete with other payment gateways in the market.
In the recent past, Irembo has established significant strategic partnerships to broaden its service offerings and reach new markets.
One major collaboration is the partnership with Old Mutual Rwanda, which aims to create an easy-to-use online platform where people can explore and purchase insurance products without the need for in-person consultations.
According to the management, the collaboration with the insurer represents Irembo’s significant move into the private sector, which focuses on providing digitized insurance services.
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RwandAir achieves 80% revenue growth in 2023 amid post pandemic recovery
This increase follows a period of declining revenue for the airline, as it earned RWF 334 billion in 2019, dropping to RWF 300 billion in 2020 and RWF 271 billion in 2021, due to the significant impact of the COVID-19 pandemic on the transportation and tourism sectors.
The report also reveals that the government provided RwandAir with RWF 192.3 billion in 2023. The company CEO, Yvonne Manzi Makolo, told The New Times that the airline experienced an exceptional economic recovery since the easing of the pandemic.
She stated, “The International Air Transport Association (IATA) forecasts indicate that air travel will triple in the next 20 years. The opportunities for continued growth are substantial. Our recent development is based on three factors: a significant rise in tourism, investment in cargo transport, and Kigali’s growing role as a hub for various activities.”
Makolo confirmed that RwandAir has been a key pillar in advancing Rwanda’s tourism, connecting Africa with other continents such as Europe and the Middle East through various routes.
She said, “The airline has become a crucial component in the government’s tourism development initiatives; the country welcomed 1.4 million tourists in 2023, nearly tripling the number received in 2021. Besides the regular tourists visiting various parks and cultural sites, Kigali is now the second most popular city for hosting conferences in Africa, after Cape Town. This tourism growth is closely linked to our routes.”
She emphasized that RwandAir has made Kigali a highly accessible destination for travelers from many countries across different continents.
{{Focus on Air Cargo Transport}}
Makolo noted that the airline’s air cargo transport program will continue to be a priority to boost exports. The 2023 report from the Rwanda Development Board (RDB) shows that air cargo transport increased by 22.7%, reaching 4,595 tons. The main destinations for cargo include Dubai, the UK, and Belgium.
She said, “Promoting air cargo transport is part of government’s strategy to connect Rwanda with the world through trade. Recently, two cargo flights to Dubai and Djibouti were launched and we expect to announce more routes in the near future as new aircrafts are acquired to support this growth.”
Air cargo flights from Rwanda mainly transport agricultural products to Europe, the Middle East, and the rest of Africa, while imports by air to Rwanda include goods such as medicine and industrial equipment.
Makolo also mentioned that Kigali International Airport has started receiving a significant number of passengers transiting to other countries, now accounting for 60% of all passengers using RwandAir flights.She said, “We increased our flights to Europe, enhancing connections between Africa and the world, and we also launched daily flights from London starting in May 2024.”
Makolo affirmed the continued efforts to turn Rwanda inti a central hub for travel in Africa, connecting various regions, and doubling its flight operations within the next five years while providing excellent services.
She added that the airline’s plan to launch new routes is ongoing, with a focus on expanding into new markets that could enhance growth in Africa. Exploring business opportunities is a key focus for advancing tourism, transportation, and trade.
According to information from RwandAir website, the airline has a fleet of 14 aircrafts that comprises four Boeing 737-800NG, two Boeing 737-700NG, two CRJ900NG, two Bombardier Q-400NG all in dual class configuration, and three Airbus A330s.
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SKOL Brewery Ltd joins the United Nations Global Compact initiative
The UN Global Compact is a call to companies everywhere to align their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption, and to take action in support of Sustainable Development Goals (SDGs).
SBL is proud to announce a move to join thousands of other companies in Rwanda and globally committed to taking responsible business action to create the world we all want.
“In line with our commitment to these principles, SKOL Brewery Ltd is proud to join the UN Global Compact, reaffirming our dedication to sustainable and responsible business practices that drive positive change both locally and globally,” said Eric Gilson, SKOL Brewery Ltd.’s General Manager.
As the company continues to expand and innovate, Gilson says that participation in the UN Global Compact will serve as a guiding framework for ensuring that their growth is aligned with the highest standards of corporate responsibility.
Launched in 2000, the UN Global Compact is the largest corporate sustainability initiative in the world, with more than 20,000 companies based in over 160 countries, and more than 60 Global Compact Networks.
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Rwanda’s Producer Price Index fell by 5.4% in July
The report released on August 31, 2024, shows that the decline was primarily driven by a 6.9% decrease in manufacturing activity prices, which contributed to the overall reduction.
The PPI is a crucial economic indicator that tracks the average change in prices received by domestic producers for their goods and services. Unlike consumer price indices, the PPI reflects price movements from the seller’s perspective, providing early insights into inflationary trends before they reach consumers.
Despite the downturn in manufacturing, the report highlighted contrasting trends in other sectors. The mining sector saw a 1.5% increase in prices.
Generally, this means that businesses in Rwanda paid less for goods and services used in their production processes.
On a monthly basis, the general PPI increased by 0.8% from June to July 2024, mainly due to a 1% rise in manufacturing activity prices.
Further analysis revealed that the local PPI, which measures prices for goods produced and sold within Rwanda, fell by 7.1% year-on-year in July 2024. This was largely due to a 9.1% drop in manufacturing prices. However, on a monthly basis, the local PPI saw a 0.9% increase, driven by a 1.2% rise in manufacturing prices.
The export PPI, which tracks prices for goods produced in Rwanda and sold abroad, decreased by 1.3% year-on-year in July 2024. This decline was mainly due to a 5.2% drop in coffee product prices, despite a 4.1% increase in tea prices and a 1.5% rise in mining prices.
On a month-to-month basis, the export PPI rose by 0.5%, with tea prices up by 1% and coffee prices up by 0.5%.
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Meet Emmanuel Tuyisenge, the visionary builder nominated for the Africa Business Heroes award
As the CEO of Temaco Builders, Tuyisenge is the only Rwandan who has made it to the top 20 finalists in the prestigious Africa Business Heroes (ABH) competition 2024.
He has contributed to the creation of some of Rwanda’s most iconic projects, including the external design of Amahoro Stadium and the development of the Nyandungu ECO Park.
Tuyisenge is now poised to take his success to new heights, bringing pride to his country and setting a powerful example for future generations of Rwandan entrepreneurs.
Temaco Builders began over a decade ago with a small team of inexperienced but dedicated individuals, including Tuyisenge himself. What started as a modest venture has grown into one of Rwanda’s leading construction companies, known for its innovative approaches and commitment to excellence.
“With the construction boom in Rwanda and the support from the government promoting ‘Made in Rwanda,’ we’ve been able to make a significant impact,” Tuyisenge says, reflecting on his company’s journey.
“To date, we’ve paved over 150,000 square meters, served more than 5,500 clients, and trained 400 young individuals. Our focus has always been on delivering top-notch, long-lasting products crafted with innovation in mind.”
Tuyisenge’s leadership has been instrumental in positioning Temaco Builders at the forefront of Rwanda’s construction industry. His ability to foresee and adapt to market trends has allowed the company to not only survive but thrive in a competitive environment.
The work on Amahoro Stadium, for instance, involved not just the execution of a high-profile project but also the integration of new technologies and design principles that set a new standard for construction in Rwanda.
Similarly, the Nyandungu ECO Park project showcases Temaco’s commitment to sustainability, aligning with global trends in environmental conservation and urban development.
The ABH competition, now in its 6th edition, is one of the most adored platforms for entrepreneurs across Africa. This year, over 2,000 entrepreneurs from various sectors across the continent vied for a spot in the competition. After a rigorous selection process, the pool was narrowed down to the top 50, and finally to the top 20, where Tuyisenge now proudly represents Rwanda as the sole finalist.
The ABH initiative is designed to recognize and support entrepreneurs who are making significant impacts in their communities, solving pressing problems, and contributing to a more sustainable and inclusive economy.
“The ABH competition has been a journey of learning and growth,” Tuyisenge reflects. “It’s not just about winning; it’s about the exposure, the networking, and the opportunity to connect with like-minded entrepreneurs across Africa. Being in the top 20 is an incredible honor, and it motivates me to push even harder to achieve my goals and make a difference.”
Tuyisenge’s success in the ABH competition is a source of national pride for Rwanda. It highlights the country’s growing reputation as a hub for entrepreneurial talent and innovation. His works are a testament to the potential for Rwandan entrepreneurs to create lasting change.
These projects not only enhance Rwanda’s infrastructure but also embody the spirit of progress and sustainability that is at the core of the country’s Vision 2050 development plan.
As a private-sector youth leader, Tuyisenge has been instrumental in supporting local entrepreneurs through various initiatives. These include TV and radio shows aimed at educating the public about entrepreneurship, training sessions that equip young people with the skills they need to succeed.
“Our goal is to lead the way in innovation, sustainability, and community development. With the support of the ABH competition, we are confident that we can achieve even greater things,” he affirms.
Temaco Builders’ innovative solutions address some of the pressing challenges in the construction industry, recognizing the issues of low-quality paving and sanitation.
The company has developed products that not only meet community needs but also align with global sustainability goals, with a focus on recycling concrete waste materials.
The creation of the Ecoteto toilet chair has provided a dignified solution for individuals with physical limitations in rural areas, further underscoring the company’s commitment to social impact.
As Rwanda’s representative in the top 20 of the ABH competition, Tuyisenge’s journey highlights the country’s growing reputation as a hub for entrepreneurial talent.
His work on Rwanda’s major projects coupled with his innovative approach to construction, positions him as a leader not only in Rwanda but across Africa.
His story is one of visionary leadership, transformative impact, and the promise of a bright future for Rwandan entrepreneurship. His success is a testament to the power of innovation and serves as an inspiration for the next generation of Rwandan entrepreneurs.
Since 2019, six Rwandan entrepreneurs have received a total of $485,000 in funding from the Alibaba initiative, the organizers of this event.
They include Albert Munyabugingo, founder of Vuba Vuba; Francine Munyaneza, founder of Munyax Eco; Yvette Ishimwe, founder and CEO of IRIBA Water Group, and Kevine Kagirimpundu, co-founder and CEO of UZURI K&Y.
The only Rwandan to have come closest to winning the overall crown is Christelle Kwizera, founder of Water Access Rwanda who finished third in the 2019 edition.
This year, the semifinal will take place in Cairo, Egypt in October and the grand finale will be held in Kigali in December 2024.
