Category: Economy

{Maize farmers say the price tagged to a kilogram of maize is not in commensurate with the efforts expended in the growing the crop. }

This manifested yesterday during talks held between the Ministry of Trade and Industry, Ministry of Agriculture and Animal Resources, representatives of maize farmers’ cooperatives and institutions in charge of buying maize harvest seeking together how to collectively find markets without hurdles.

Members of the Rwanda Grain and Cereals Corporation (RGCC) explained that it doesn’t pay below Rwf 170 or 180 depending on the quality of maize adding that the price is determined based on information from farmers.

“We first talk to farmers before signing agreements with their cooperatives to buy available harvest,” said Bahati Wenceslas, the CEO of RGCC.

East African Commodity Exchange also said that they pay between Rwf 160 while the and 185 depending on maize quality.

The president of Rwanda maize farmers association, Evariste Tugirinshuti said that the price does not match efforts of farmers and requested to raise the price to Rwf 200.

“We have realized that a farmer invests between 145 and 163 per kilo. We would rather a farmer be paid Rwf 200 to avoid losses,” he said.

The Minister of Trade and Industry Francois Kanimba said that the price ceiling for maize is Rwf 170 per kg.

“We sat together with farmers’ cooperatives and produce buyers. We realized that the investment of a farmer ranges between 120 and 140 per kilo and confirmed that the price must not go below Rwf 160,”he said.

He said that paying a farmer between Rwf 170 and Rwf 180 ensures that they do not incur losses. Maize from Uganda, he said, is bought at between Rwf 170 and Rwf 180 per kilo.

The Ministry of Agriculture revealed that 908,723 tons of maize are expected in the agricultural season 2016 A.

{The Minister of Agriculture and Animal Resources, Dr. Gerardine Mukeshimana, says that the widening challenges in the agriculture sector are emanating from especially climate change and decline in agricultural research.}

Dr. Mukeshimana explains that agriculture was mostly affected by climate change where strange pests and insects emerged and spread crop diseases. General decline in research, especially when Rwanda Agricultural Research Institute (ISAR) was phased out and replaced with Rwanda Agriculture Board (RAB) has also fed into poor crop performance.

“The research severely declined. Most of the challenges result from inadequate performance of RAB; they did not produce improved seeds and fertilizers successfully, neither did they carry out research on current crisis to provide a remedy,” she said.

The minister says that they are putting in more efforts to promote research as a way of sustainably attaining good harvest.

Over 11 million Rwandans depend on agriculture and animal husbandry representing 85% of the population.

The budget reserved for agriculture has been increased from Rwf 90 298 698 305 billion in 2013/2014 to Rwf 102,870 277 395 billion in 2015/2016 national budget. However, last year the sector faced the effects of pests and diseases damages that immensely affected crop performance.

{Residents of Nyabitekeri sector in Nyamasheke district say they have a fertile land, get good yields per unit area, but are faced with acute lack of market centers from where they can sell their produce. The old market they used to work from is no longer operating well.}

Talking to the media, the residents said that they used to sell their food commodities from Nyamitaka market which was mismanaged. They say, local leaders on a number of occasions intermittently closed the market center and clients tended towards ignoring it in the long run. Today, clients go to distant markets, taking them about three hours reach.

“A pool of sellers attracts a pool of buyers who used to come early in the morning. However the situation has changed since the first seller reaches the market center at 1:00 pm,” said Dunia one of the market vendors.

“In the past, Congolese would come in Nyamitaka to buy food and other items but they no longer come; instead they go to Mukoma small market,” said another resident.

The administration of Nyabitekeri sector says that the former market will soon become a big trading center and port.

“You have seen that the Nyabitekeri market is located only five meters away from Lake Kivu. We want to make this location a port and relocate the market somewhere else,” said the executive secretary of Nyabitekeri sector, Niyonzima Jaques.

Residents do complain of traveling long distances that take them three hours to the markets in Bushenge sector or cross the lake heading for Resero market located in Kagano sector.

{Last year 7,262 cars worth Rwf 62,795,837,834 were imported to Rwanda and paid over Rwf 25 billion in taxes.}

Rwanda Revenue Authority (RRA) says that most of the imported cars were bought on second hand market.

In an interview with IGIHE, RRA has said the imported vehicle categories included tractors, 381 having the capacity to carry more than 10 passengers, 5,498 reserved for public transport , 1,238 for cargo while other 73 cars were ordered for particular purposes.

Raphael Tugirumuremyi, the RRA Deputy Commissioner General in charge of customs said the cars have the value of more than Rwf 62 billion and have paid over Rwf25,358,220,188 billion in taxes.

It was resolved by the regional council of ministers of trade held on 22nd May 2015, countries have agreed on the increase of taxes on second hand cars.

The new measures put into consideration the value in the year of manufacturing, depreciation which is calculated at; 20% after one year, with five years a car loses 55%, six years 60 %, seven years 65%, eight years 70%, 75% at nine years while all cars bought after ten years of manufacturing lose value of 80%.

{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 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.

{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.