Category: Economy

  • MINECOFIN pledges improvement in tax payments

    The Ministry of Finance and economic Planning (MINECOFIN) says collecting local government taxes through Rwanda Revenue Authority (RRA) will improve service delivery albeit some challenges that should be addressed.

    The Minister, Amb. Claver Gatete highlighted the benefits yesterday as he met the parliamentary commission in charge of budget and economic performance to discuss the revised 2015/2016 budget.

    Members of Parliament had earlier on sighted challenges encountered in the process of collecting taxes at various levels yet they are a great source of the country’s revenues.

    Gatete informed the committee that on several occasions, people were forced to pay local government taxes instead of inviting them into compliance and therefore evasion was rampant. RRA, he said, was brought into the equation given its experience in tax education and collection to improve performance and using modern technologies.

    The officer in charge of fiscal decentralization, Jonathan Nzayikorera, said that the pessimism that targets would not be achieved is being challenged since there’s proper planning.

    In the last calendar year 2015, all districts put together earned Rwf 18 million from taxes, a 2% increase from the previous year.

    The reforms introduced in the recent past to increase tax base include; tax education, use of modern technologies, e-taxation and regular audits.

    “If we employed tax collectors in districts it would require Rwf 8 billion for salaries. Paying this amount as salary from gathered Rwf 17 billion is not doable,” said Nzayikorera.

    He said that there are talks between banks to seek how they can waive off fees charged to taxpayers that do not have bank accounts.

    MPs observed that there are times when the Electronic Billing Machines fail to get connected thus affecting business performance and tax collection.

    The Ministry of Finance and economic Planning,Amb.Claver Gatete

  • Japan supports Rwanda’s drive to improve agricultural productivity through irrigation

    Japan supports Rwanda’s drive to improve agricultural productivity through irrigation

    The Japanese government has launched a project of digging a 14.9 meter-high dam which is expected to provide water for irrigating 300 hectares in Rugenge and Remera sectors, Ngoma district.

    The project to cost Rwf 9.5 billion will facilitate farmers, through irrigation, to increase production in both marshlands and upland farming.

    Irrigation will be carried out on 265hactares of upland farms growing, mainly, fruits and vegetables while 35 hectares in marshland will be for rice growing.

    The Minister of state for agriculture, Tony Nsanganira, who visted the site yesterday, said that the project will boost agricultural productivity especially fruits and vegetables.

    A representative of the Japanese embassy in Rwanda, Tomio Sakamoto, said that the project is one among projects his country is supporting in addition to education and technology.

    Ngoma Irrigation Project has two main components; the Irrigation infrastructure that includes the dam whose height measures to 14.9m with a capacity of 960,000m3 plus 3 regulation tanks, two irrigation canals with the main having 28km and the second with 27 km.

    dam.jpg

  • Nkombo island potentials get unlocked as electricity connections attract new small scale local investments

    Nkombo island potentials get unlocked as electricity connections attract new small scale local investments

    Nkombo Island, in Lake Kivu, is saturated with captivating beauty, a beauty that has been splashed on her endearing face and surface by creation—the silent ripples that create mobile glows as they consume the cast rays of the sun, the luxuriant green vegetation that drunkenly leer about and the abundant aqua life—all give the island a unique glamour that had been neglected for long.

    In the past, that beauty was not matched with development. The activities were slow, residents were almost all immersed in fishing and transport, in more crude ways than modern, using manually oared canoes, taking sluggish lazy strides in the direction of development.

    When, however, the island was connected to the national electricity grid in April 2011, by the Electricity Access Roll Out Programme (EARP) under the Rwanda Energy Group (REG) it, gradually, began shaking off its time-long signs of poverty and the residents are grasping every opportunity with an unwavering glee.

    The Sector Executive Secretary, Victor Sebagabo, says getting electricity has helped the people of Nkombo in various ways. “For some services, we had to travel long distances. When one needed salon services, he or she had to walk a distance of five kilometers. Today the sector has got salons, metal workshops and other businesses that use electricity. The sector has got at least one cereal and grain milling machine per cell which has been very vital for residents to have their harvests like cereals maize, rice, soya and cassava processed,”says Sebagabo.

    Today, according to information from the Sector office, 46% of Nkombo Island residents have access to electricity, which is a clear indication of growth and above the national average of 24%.

    The executive secretary says the delivery of social services has improved. “Take the sector’s Group Scolaire St. Peters Nkombo; the school has since got a laboratory installed with equipment which helps students carry out practical studies in science related subjects. Nkombo Primary School is benefitting from the One Laptop Per Child Program, with over 150 laptops which have helped much in introducing pupils to ICT at an early age.

    Nkombo has a Vocational and Technical College (VTC) which trains in electrical engineering, carpentry, and tailoring. These courses require workshops with machines which are run by electricity, making access to power very vital for the effective imparting of skills.

    Nkombo sector seated on 21 square kilometers has a population of 17,375 people, in five cells. The sector has one Health Center and one Post de santé, three primary schools, three secondary schools and one high institution of learning ( Groupe Scolaire St. Peters Nkombo).

    “At the Island we invite investors to acquire land and construct hotels in order to provide accommodation for tourists who may wish to visit the area and develop our sector further. There is a lot of land that investors can purchase and develop.”

    One such hospitality undertaking is the Nkombo Guest House now in the final stages of completion and to be launched soon and put on the market for important guests to have an executive place for accommodation.

    The Vice Mayor Kankidi Leoncie, economic affairs, Rusizi district, sums it in very certain terms. “Schools, healthy centers, homes, shops in most of the parts of Nkombo have accessed electricity. Lives of Rwandans in the sector have changed so tremendously that even the youths who always migrated to Kigali have now picked much interest in living in their home areas and work to develop their villages. Today only two sectors in Rusizi don’t have electricity but installation plans are underway.”

    Ndarayabo Andrea, 58, a tailor living in Nkombo who started the tailoring business in 1980 is proud of using electricity to boost business. “I started business with only two manual sewing machines with which I would do business in busy trading centers. When Nkombo Island was connected with electricity, I got an idea of expanding my business there. Because I believe in modernity and advancement, I bought two electric sewing machines in 2012 and shifted my business from Nyabitekeri in Nyamasheke to Nkombo.

    “In Nkombo, I found the business more competitive. Because originally people used to travel a long distance to Kamembe Township for sewing, my coming to Nkombo was very much welcomed and I got very many customers. Today the business has grown. I have four machines and employ 3 other tailors. The business has become very profitable since each one of us is able to make between Rfw 5,000 to 15,000 per day.”

    Electric machines, he explains, are used to make very good garments which “I sell at good prices, between Rfw 3,000 to 15,000 a piece. I have a well built home, with a family of five children who are living happily with full support from the business.”

    Mukashyaka Marie runs a stationary shop ‘Mini Secretariat Neza’ in Nkombo. She says electricity connection brought her business to Nkombo. “I have successfully expanded my business. I have a modern computer, a photocopier, and a photo printer which are fetching good money.”

    I am Ngeranyenimana Jean Paul, working in Bigoga, Muhongo sector where I repair different gadgets. Work as a technician was not easy for me before the introduction of electricity in our area. I used to do small tasks like repairing phones, radios, and small machines. With electricity connection, I have managed to buy all the instruments I need to repair radios, hoofers, TVs, decoders, DVDs and I also do car wiring. As the business expands, I have been encouraged to do more reading and learning in the same field which I should say has improved my skills.

    A panoramic view of Nkombo Guest House

  • Rwanda to benefit from G20 sustainable mitigation interventions

    Rwanda to benefit from G20 sustainable mitigation interventions

    Twenty richest countries (G20) have started up a project of ‘Tropical Agriculture Platform’ which aims at promoting agriculture in developing countries to help them cope with challenges affecting agriculture including climate change.

    Over 100 experts including researchers and others involved in seeking markets of agricultural harvest from over eight countries, have convened in Kigali to seek ways of promoting agriculture in developing countries through emulating some good practices from developed countries.

    The Rwanda minister of Agriculture and Animal Resources, Dr. Gerardine Mukeshimana, has said that agricultural practices have got to change and adapt to climate change with sustainable mitigation interventions.

    “The forum is meant to discuss how to better improve agriculture and seek ways of availing avail research findings to farmers and other interested individuals as well. These are not completed by one person or a single institution,” she said.

    Mukeshimana says that countries located in tropical region have distinct agricultural challenges exacerbated by climate change.

    “This requires combined efforts between people facing similar challenges to find sustainable solutions,” she added.

    She said that Rwanda has already gained many achievements in the improvement of agriculture including the program of ‘Twigire Muhinzi,’ (Let farmers be self reliant), agribusiness and supplying quality seeds, among others, emphasizing the need of learning from others’ experiences.

    The FAO Country Representative in Rwanda, Attaher Maiga, said that the project has started in eight countries including Rwanda.

    “Rwanda has a bright vision and. It is an exemplary country in agricultural reform and increasing harvests to counter food shortage and poverty,” he said.

    Maiga says that statistics indicate that over 800 million people across the World suffer from food shortage but comments that the number is getting lower.
    He finds that held meetings bring innovations and research to cope with the matter but supported by countries’ governance.

    Among those plans, Rwanda and other 7 countries including Angola, Ethiopia, Burkina Faso; Bangladesh, Laos, Guatemala and Honduras have recently received 26 Euro million to boost the capacity of agricultural and create innovations in the sector.
    Rwanda will receive one million Euro in that project expected to last three years and half.

    20 rich countries of the World this year include Australia, India, Argentina, France, China, Canada, Russia, Brazil, Deutsch,Indonesia,Arabie Saoudite, South Africa , Mexique, Italy, Japan, US,Turkey,England,South Korea and European Union.

    The Minister of Agriculture,Mukeshimana Geraldine talking to Dr Ahamed Khondake from Bangladesh

  • DP World granted concession to develop logistics centre in Kigali, Rwanda

    DP World granted concession to develop logistics centre in Kigali, Rwanda

    Global marine terminal operator DP World announces that it has been granted a 25 year concession to develop and operate a new logistics centre in Kigali, Rwanda.
    The DP World Kigali Logistics project is a Greenfield concession agreement and the first phase will be built on 90,000m² (969,000 sq ft) with a 12,000m² (129,000 sq ft) container yard and a 19,600m² (211,000 sq ft) warehousing facility. Estimated annual capacity is 50,000 TEUs and 640,000 tonnes of warehousing space. Total project cost is estimated at $35 million, and further development will be phased in line with demand growth.

    Rwanda aims to enhance the country’s logistics industry to support the export of products for regional and international markets. The DP World Kigali Logistics Centre is expected to significantly contribute to the development of this strategy.

    DP World Chairman HE Sultan Ahmed Bin Sulayem said DP World is delighted to have been granted this concession in Kigali, Rwanda. “We are excited by this opportunity to use our expertise to build best-in-class infrastructure to ensure the continued development and growth for Kigali and the wider economy.”

    DP World Group Chief Executive Officer Mohammed Sharaf said DP World continues to be optimistic about the outlook for Africa and are proud to expand footprint in the region. “We aim to further develop the logistics sector through DP World Kigali Logistics to help meet the country’s 2020 vision of creating a strong domestic logistics services operator in the region.”

    The partnership is further strengthened by Rwanda’s economic transformation in recent years, consistently delivering over 7% GDP growth and today it is also ranked as the most competitive country in East Africa by the World Economic Forum’s global competitiveness report.
    DP World Chairman HE Sultan Ahmed Bin Sulayem

  • Rusizi rice farmers demand better farm gate prices

    Rusizi rice farmers demand better farm gate prices

    Various farmers from Bugarama valley have said that the farm gate prices for their produce are so low compared to the inputs they do apply, including fertilizers, efforts expended and the gestation period.

    Farmers made the appeal to parliamentarians on a tour to identify citizens’ challenges and make advocacy.

    “We cultivate and get good harvests. However; we are challenged by the low prices,” said Joviane Ndabahimye.

    Uwamariya Verena, another rice farmer also said that they have a good harvest but the prices are dissapponting.

    The development comes at time since Rusizi district leadership in collaboration with rice farmers’ cooperatives and industries processing rice put a ceiling of Rwf 270 down from Rwf 272 per kg.

    Léoncie Kankindi, the deputy mayor of Rusizi district said that the prices set are based on the initial price of the Ministry of Trade and Industry.

    A parliamentarian, Mwiza Espérance said that they are going to embark on talks with cooperatives to understand the issue deeply and address it accordingly.

    “Farmers have demonstrated how their efforts do not fully get compensated through the farm-gate prices. We are continuing to tour other locations so that we will sit together with cooperatives to hear how they can resolve the matter,” she said.

    Bugarama valley in which cooperatives of farmers grow rice covers an area of 1500 hectares.

    Parliamentarians talking to Rusizi rice farmers along Bugarama valley

  • China’s economic growth slumps to 25-year low

    China’s economic growth slumps to 25-year low

    World’s second-largest economy grew 6.9 percent in 2015 with further declines expected as global tumult continues.

    China’s economy grew 6.9 percent in 2015, GDP figures released on Tuesday showed, the lowest level of growth in 25 years.

    Chinese leaders are trying to reduce reliance on trade and investment by nurturing slower, more self-sustaining growth based on domestic consumption and services.

    But the unexpectedly sharp decline over the past two years prompted fears of a politically dangerous spike in job losses. Beijing responded by cutting interest rates and taking other steps to shore up growth.

    Full-year growth for 2015 was the lowest since sanctions were imposed on Beijing following its crackdown on the Tiananmen Square pro-democracy movement caused growth to plummet to 3.8 percent in 1990.

    The October-December growth figure was the lowest quarterly expansion since the aftermath of the global financial crisis, when growth slumped to 6.1 percent in the first quarter of 2009. Growth in the July-September quarter of 2009 was 6.9 percent.

    “The international situation remains complex,” said Wang Bao’an, commissioner of the National Bureau of Statistics, at a news conference. “Restructuring and upgrading is in an uphill stage. Comprehensively deepening reform is a daunting task.”

    Tony Nash, chief economist at the Complete Intelligence Consultancy firm, said while it was a setback for the global economy, China’s economy still grew more robustly than most countries.

    “China has structural issues and the GDP figures deviated from the plan, but growth at 6.9 percent is not something to lose sleep about,” he told Al Jazeera.

    Professor Hu Xingdou from the Beijing Institute of Technology said the official figures provided a more optimistic view than the actual situation in China.

    “It is an estimation and the samples they collected for the statistics almost all came from state-owned enterprises. Therefore, the result will be higher than the real situation,” Hu told the DPA news agency.

    One analyst noted that the decline in growth is likely to continue.

    “The current state of the economy is not very good. I predict next year’s growth will be as low as 6.5 percent,” said He Xiaoyu, professor at the Central University of Finance and Economics in Beijing.

    Source:Al Jazeera:China’s economic growth slumps to 25-year low

  • Umurenge SACCOs to boost cashless economy with new MobiCash partnership

    Umurenge SACCOs to boost cashless economy with new MobiCash partnership

    Sector Savings and Credit Cooperatives (Umurenge SACCOs) are set to further increase financial inclusion in Rwanda with their latest partnership with electronic payment services provider, MobiCash Limited.

    The Rwanda Cooperative Agency (RCA), which regulates SACCOs has given MobiCash the go-ahead to have all SACCOs use its electronic payment gateway to offer financial services to the people, a move which the agency believes will boost financial inclusion while promoting a cashless economy simultaneously.

    “Since SACCOs are closer to the people at grass-root level, it will now be easy for people to use MobiCash’s technology to carry out transactions such as making their Rwanda Revenue Authority (RRA) payments (both fiscal and non-fiscal) at their convenience,” said Francisca Mukakarangwa, the Director of the SACCO Coordination unit at RCA.

    She added that the use of MobiCash will also enable the SACCOs register more ofthe unbanked and underbanked population.

    “We urge more people to embrace the technology through SACCOs in order to improve access to financial services,” she said.

    There are currently 416 Umurenge SACCOs spread out across the country out of which 122 so far have signed up to use the MobiCash platform.

    MobiCash’s technology span covers a wide variety of uses and offers services that can be used whether or not one has a bank account or a mobile phone.

    The platform is completely mobile network agnostic (independent of Mobile Network Operators) and can bank the entire spectrum of a country citizenry using biometric authentications.

    Pascal Nyagahene, the MobiCash Rwanda Chief Executive Officer said they are committed to bringing fundamental innovation, convenience and easy access to banking and payment services to “everybody” especially those not served by financial institutions and regardless their financial status (the Unbanked), thus deepening the financial sector.

    Among thefinancial services supported by the MobiCash platform include the payment of all Rwanda Revenue Authority (RRA) fees (both fiscal and non-fiscal) such aspayment of Visas and passports, cash-in and cash-out transactions, money remittance and other Value Added Services like purchase of airtime from all mobile networks, pre-paid electricity (cash power) and pay television subscriptions.
    “We want as many people to use MobiCash to transact at their convenience,” he noted.

    MobiCash, which was licensed to provide mobile financial services by the National Bank of Rwanda (BNR) in September 2014, is a viable option for the payment of government services and seeks to provide a platform for both public and private sector institutions for people to make electronic payments.

    Today, the company has over 350 agents spread out across the country, providing a reliable agency banking model to Rwandans, thus deepening financial inclusion further.

    To have an account with MobiCash, one just needs to go to their nearest MobiCash agent and start transacting.

    Nyagahene said that they use people’s identification, which provides optimum security to their accounts from fraud, in that everyone has a unique identification that can’t be stolen.

    “We found the use of biometric identification as the way to go because of its many advantages and protection from cyber theft which is often linked to the weak nature of passwords when it comes to electronic payments,” Nyagahene explained.

    Commenting on the use of the platform, Sam Nsengimana, an accountant at Ijabo SACCO in Kicukiro district said the platform was easy to use for most of their clients and that it presented another revenue stream for SACCOs through the sharing of commissions earned on transactions using MobiCash.

    “We hope more people continue to use the platform, thus increasing on our earned commissions for our cooperative members to share,” he noted.
    About MobiCashLimited.

    MobiCash Rwanda Ltd is a secure cashless mobile financial platform. Its commitment is to bring a fundamental innovation with convenience and easy access to banking and payment services to everybody including those not served by financial institutions regardless their financial status; thus, deepening the financial sector.

    MobiCash solution offers a refreshing approach to mobile payment that overcomes the challenges of cashless payment. It uses multi-factor authentication mechanisms such as; fingerprint, Near Field Communication (NFC) Cards and Voice biometric technology to bank entire populations.

  • Western Province farmers advised on agricultural exports

    Western Province farmers advised on agricultural exports

    The National Agricultural Exportation Board (NAEB) in collaboration with Western Province has encouraged farmers to increase the quality and quantity of cash crops for domestic consumption and exports.

    Western province holds 50% of Rwanda’s agricultural exports including tea, coffee, pyrethrum, vegetables, fruits and flowers among others.

    Farmers have been requested to increase the harvest of coffee and tea from 8 tons to 12 tons per year.

    The mobilization follows farmers who misallocated donated farmyard manure where some sold fertilizers or used them in other agricultural activities which reduced the harvest.

    The Director General of NEB Amb. Kayonga George William said that they are ready to support farmers from Western province to increase the harvest since it is helpful for themselves and the country in general.

    “We will facilitate them to access seeds, follow up their fields, and empower cooperatives’ management to make sure that expected aid reaches farmers as a bid to increase harvest per hectare.”

    Uzaribara Denys, the president of Pfunda Cooperative which plants tea said that they will respect guidelines to increase the harvest.

    “We have started and the yields started increasing. We have started harvest 10 tons per hectare and we are ready to increase efforts to make sure provided fertilizers enhance productivity,” he said.

    He further unveiled a plan to collaborate with local leaders and industry owners to increase both the quality and quantity of cash crops.

    Even though farmers plan to boost the harvest, they are still faced with challenges of finding seeds to replace damaged ones, inadequate farmland and poor state of roads hampering transportation of harvest from the field.

    Based on farmers’ requests, NAEB revealed a plan to organize study trips whether in Rwanda and abroad to emulate best experiences from others.

    The  Director General of NEB Amb. Kayonga George William speaking to the media

  • West Africa counts economic cost as Ebola outbreak ends

    West Africa counts economic cost as Ebola outbreak ends

    Gold miner Dauda Kamanda has never been rich, but before Ebola hit Sierra Leone he was getting by selling the nuggets he unearthed to traders who exported them across Africa and the Middle East.

    Then, one by one, his Lebanese and Senegalese clients in the northern district of Koinadugu fled as the deadly outbreak gripped the country in 2014, and Dauda’s $500 (460-euro) monthly income disappeared.

    “After the buyers fled, I had to take a part-time job carrying luggage at the lorry park for people going to the capital,” he told AFP.

    As the world awaits the announcement on Friday that the worst-ever Ebola epidemic has been beaten in west Africa, the three most affected countries of Liberia, Guinea and Sierra Leone are taking grim stock of the devastation wrought on their economies.

    Already fragile after years of civil war, dictatorship or coups, the epidemic has devastated the mining, agriculture and tourism industries in the region, where more than 11,000 people died from Ebola.

    Strong recent expansion has been curtailed in Guinea and while Liberia has resumed growth, Sierra Leone is in a severe recession, according to the World Bank.

    The bank estimates the regional economic damage to have been $2.2 billion over 2014-15 and has mobilised around $1.6 billion for Ebola response and recovery efforts.

    CRISIS

    Fuelled by foreign investment in its mineral wealth, Sierra Leone had made considerable progress in recovering from a brutal 11-year civil war and its economy grew by 11.3 per cent in 2013.

    But Ebola slashed growth to four per cent in 2014 and the economy contracted by a massive 21.5 per cent in 2015, according to Finance and Economic Planning Minister Kaifala Marah.

    “The traditional growth-driving sectors — agriculture, mining, et cetera — were severely disrupted,” he told AFP, adding that the damage had been exacerbated by a slump in iron-ore prices, the main international export.

    Around 7,500 jobs were lost by the closure of two mines run by African Minerals and London Mining, which both went into administration.

    A World Bank report released last June said employment had returned to pre-crisis levels, although employees were working fewer hours and earning smaller wages.

    In Guinea, where small enterprises and the informal economy are heavily reliant on imports, the closing of air borders that accompanied the crisis were crippling.

    “I often went to Dubai and Bangkok to buy gold chains and my shop was always well stocked,” businessman Fatou Balde told AFP in Conakry.

    “I had a lot of customers, especially among retailers, but now the shelves are empty.”

    Growth of 2.3 per cent in 2013 slowed to 0.6 per cent in 2014, although financial institutions expect the Guinean economy to expand by 4.3 per cent in 2016.

    In Liberia, 12 per cent of businesses surveyed during the peak of the crisis have since closed down, according to the London-based International Growth Centre (IGC).

    IMPORTS

    Like numerous entrepreneurs interviewed by AFP, 45-year-old Amadou Diallo, who imports goods from Guinea to Liberia, said the closing of borders at the height of the crisis and an exodus of foreign investment had put him out of business.

    “After the first outbreak we had to start over. It was hell really. We could no longer go for goods out of the country, we had to survive on the money we had,” he said.

    The US Agency for International Development funded a mobile phone survey of 30,000 people across Liberia and Sierra Leone in the first six months of 2015 to find out the impact of Ebola on their finances.
    In Sierra Leone 70 per cent said their household incomes had dropped since June 2014 while the figure was 60 per cent in Liberia.

    Yet respondents were confident about job markets recovering, in a note of optimism echoed by ministers in Sierra Leone, who expect the economy to stabilise this year and recover strongly to 19.6 per cent growth in 2017.

    A further reason for hope, says Dianna Games of South African business consultancy Africa At Work, is the relative good health of the regional economy.

    She noted in a recent commentary for the Johannesburg-based newspaper Business Day that growth for the broader Economic Community of West African States is forecast at seven per cent for 2016.

    “Ebola’s effect has been minimal because the three worst-affected countries comprise less than two per cent of regional gross domestic product,” she said.

    Source:Daily Nation:West Africa counts economic cost as Ebola outbreak ends