Category: Economy

{The Ministry of Agriculture and Animal Resources (MINAGRI) has revealed a plan to undertake a survey aimed at seeking to sustainably resolve the matter of rivers flooding Bugarama valley.}

Rice farmers in Bugarama valley have been lamenting over rivers flooding and ravage fields of rice .These Rivers devastating their lands are Rubyiro, Katabuvuga among other rivers surrounding Bugarama valley.

Nkundineza Emmanuel, one farmer who talked to IGIHE said that rivers deposit stones in their fields which destroy their land.

The permanent secretary in MINAGRI, Innocent Muhayimana revealed a plan of undertaking a study to solve the matter. He said this on March 6, 2016 when he visited Katabavuga River.

“We are going to extensively undergo a study aiming at solving the matter of water and other mountains debris flowing to rivers and deported to fields. The delegation will help us to find what can be done to counteract such erosion affecting Bugarama valley,” he said.

He said that the study must be undergone this year to be implemented.

The vice mayor of Rusizi district in charge of development , Innocent Musabyimana has advised them to seek a machine facilitating to process debris from one of the flooding rivers in this Autumn season.

{Lack of fish preservation facilities is affecting fish production and profitability among the fishing population on Lake Kivu and fish traders in Budiki market of Gihundwe sector. Fish-mongers say that once they fail to clear off the fish stock on the same day, they are certain of making losses since the fish just rot.}

They have appealed to Ministry of Trade and Industry to provide either cooling facilities, drying technologies or fish-milling facilities so they can add value on the catch. The business is dominated by women.

“We already knowledge of how we can preserve our fish for sale to distant markets but we have no means of harnessing the technologies. The project would have started if we had a partner,” said Simbarikure, one of the fish mongers.

The MINICOM officer in charge of cross-border trade Rurezamfizi Apollinaire promised to advocate for the provision of fish preservation facilities to the people of Gihundwe cell.

A total of 538 men and women come together in three cooperatives in Gihundwe cell selling fish amounting to 4 tons every week, mainly to Democratic Republic of Congo.

{Rwanda is putting in more efforts to support the Made in Rwanda program as a way of addressing challenges caused by the balance of trade deficits. }

Statistics from the National Institute of Statistics (NISR) indicate that from January to September 2015 Rwanda imports were valued at USD1, 384,310,000 and USD426,200,000 for exports.

During the launch of Made in Rwanda expo held at the Gikondo Private Sector Federation (PSF) grounds on Friday, the Minister of Trade and Industry, François Kanimba said that ‘the program is aimed at mobilizing Rwandans and foreigners to use products made in the country to offset bad trading patterns.

Kanimba said MINICOM’s survey findings last year indicate that Made in Rwanda program will enable the country save up to 18% of money spent on imports.

“We have realized that we have the ability of reducing expenditures on imports to the tune of almost USD450 million through import substitution by producing locally,” said Kanimba.

He said that production of cement and other construction materials will play a big role in reducing the gap in trade deficit. He gave an example of Cimerwa which has now turned to mass production since it increased six folds its production to satisfy the Rwanda market.

Some Rwandans say that made in Rwanda cement is expensive which deters them from buying it. Industry captains argue that products are expensive because of high transport costs and inadequate capacity to manufacture in bulk within a short time.

The director of Hollanda Fair Food, a company which makes Chips, told IGIHE that some Rwandan products are expensive but have unique characteristics and high quality.

He said the government of Rwanda shall continue supporting manufacturers and identify why foreign products are preferred so that, if they are policy related, they can be pragmatically addressed.

Promoting SMEs can have an impact of saving USD 124 million in import substitution.

The chairperson of Private Sector Federation, Benjamin Gasamagera has requested Rwandans to consume more home products and urged industries in Rwanda to produce in a way that meets international standards.

{The National Bank of Rwanda says that much as they realize that interest rates in Rwanda are high and slow down private local investments, they cannot superimpose a ruling rate as it is determined by market forces. }

In a discussion held between BNR and MPs to discuss monetary management policy, parliamentarians realized that there’s a direct correlation between high lending rates and increasing public auction of mortgaged property, as borrowers fail to service their loans in stipulated time frames.

Hon Emmanuel Mudidi, an MP, said that high interest rates are in most cases attributed to the risks involved in lending.

The BNR governor, John Rwangombwa, explained that their involvement in determining lending interest rates can destabilize financial sector performance.

“The bank only sets interest rate ceiling based on source of finance and required benefits. BNR ensures banks build channels through which people can make deposits. We have few financial institutions in Rwanda which can provide long term loans such as Rwanda Social Security Board and some insurance companies, so it’s not possible to put a ceiling on those that provide short term loans,” he said.

Rwangombwa highlighted that when the demand for loans is higher than the supply, market forces set a high interest rate.

The lending interest rate currently stands at between 15% and 16% .

Rwangombwa revealed that they are working closely with banks to reduce non-performing loans, reduce lending interest rates since persistent high interest rates to destabilize the banking sector.

{Maize famers in Bugarama agro-zone, Rusizi district, have called on the authorities to avail them with maize milling plants to enable them add value to their produce for sale and own consumption, instead of offering it cheaply to middlemen who return and sell to them expensive processed flour.}

“Establishing a maize processing plant would motivate farmers to increase the yields, enable easy obtainment, value addition, avoiding post-harvest waste and better prices,” said one of the farmers, Mbarubukeye Claver, in an exclusive interview with IGIHE.

The agronomist of Rusizi district, Marie Alice Bayizere, says the district administration will keep advocating for investors to establish the said maize mill.

“There is no maize mill in the area; but farmers should not seek for its establishment from the government but from private investors who should be convinced of the quantities and quality of maize produced in the area,” says Bayizere.

Maize farming in Bugarama valley is practiced by farmers from Nzahaha sector, Bugarama, Muganza, Gikundamvura, Nyakabuye and Gitambi sectors with members working together in different cooperatives.

{The National Bank of Rwanda (BNR) has observed that with the low economic performance and falling of international prices of commodities that Rwanda exports will mean a low pulse of growth. }

The governor of BNR, John Rwangombwa said that banks continue to be among the top of sectors boosting Rwanda’s economy. The later occupies 67% of Rwanda financial markets leaving 17.1% for insurance companies and 6.6% for micro finance institutions.

“Rwanda’s economy had a good performance in the first three trimesters of 2015, realizing an increase of 6.1% in the first trimester, 7.1% in the second and 7.6% in the third trimester,” he said.

Economic indices indicate that economic growth reached at 7.0 % in 2015 and in 2016 BNR expects the economic growth at 6.3%.

Devaluation of US dollar to Rwandan franc hit an all time low at 7.6% in 2015 from 3.6% in 2014 while the cost of one dollar rose from Rwf 649.37 to Rwf 747.41.
“It is the first time Rwanda Franc lost value in such way in the past ten years.

However, the situation is not critical compared to neighboring countries in the region,” he said.

The Euro gained against Rwandan Franc by 3.2% and the British Pound Sterling by 2.8%. Compared to Kenyan and Ugandan shillings Rwandan franc gained weight against Kenya Shilling by 4.6%, 13.5%to Ugandan shilling.

{Fishermen on Lake Kivu on the Rwanda side of the shores in Nyamasheke district, have expressed concern over the declining catch due to use of poisonous traps by their Congolese counterparts, a method that is negatively impacting aquatic life.}

Some fishermen in Nyamasheke have also been sighted in the practice.

“Illegal fish traps have been reduced among Nyamasheke residents, but are still rampant among Congolese who illegally fish from the Rwanda waters,” said Alex Nshimiyimana, one of the fishermen, requesting for intervention from authorities.

The president of Lake Kivu Fishers’ Association, Eliezel Ndahayo said that the illegal traps mostly affect small fish populations.

“The illegal fishing methods are a menace to the entire industry which have been eradicated from seven of the ten sectors of Nyamasheke that touch the Kivu shoreline. The problem now remains with handling Congo fishermen,” he said.

Nyamasheke is among the five Rwanda districts bordering Lake Kivu.