Category: Business

Rwanda has received a US $ 12m loan (est. Rwf 8bn) to help in the improvement of Agricultural activities aimed at increasing agricultural products.

The loan given by World Bank will be used to support various projects like land husbandry, water harvesting and hillside irrigation.

The minister of finance and economic planning John Rwangombwa signed on behalf of the Rwandan government, while Omowunmi Mimi Ladipo on behalf of the World Bank.

Rwanda’s minister of agriculture, Dr. Agnes Kalibata said that the projects aimed at increasing the productivity and commercialisation of hillside agriculture, enhancing food security and the livelihoods of the population.

“These are broad projects. They have been introduced in three districts of Karongi, Nyanza, and Gatsibo, but we have other projects to even help other districts that are facing low productivity due to hilly topography”. Kalibata said.

Omowunmi Ladipo said that Rwanda has had several partnership with World bank in promoting agriculture productivity, adding that this is the 17th financing agreement.

ENDS

A Study by a Swedish agency, Forum Syd suggests that Money taken illegally from the developing world is worth 10 times annual global aid budgets, according to a recent study by a Swedish agency, Forum Syd.

Tax evasions by multinational companies in Africa is so vast that tax analysts believe that if the money were paid, most of the continent would be “developed” by now.

But, lacking a sophisticated tax code, or the people qualified to enforce tax laws, many African countries continue to lose money that could solve most of its financial problems.

The governor of Rwandas central bank (BNR) Gatete Claver revealed that Rwanda is on the 1st position in the region and the 3rd among 46 countries of the sub-Saharan region in regards to Economic freedom.

The rankings have been published by ‘Heritage Foundation’ in collaboration with ‘Wall Street Journal’ on 13th January 2012.

‘Heritage foundation’ in collaboration with ‘Wall Street Journal’, comparing with the last year 2011, shows that Rwanda improved with 2.2% and got 64.9%. Rwanda ranks 59th globally.

The report indicates that Rwanda attained this position for having made an effort in the fight against corruption, freedom of the currency use and facilitating the investors in their business.

The first 10 countries in the world according to the report, the 1st is Hong Kong, Singapore, Australia, New Zealand, Switzerland, Canada, Chilli, Maurice Island, Ireland and USA is the 10th.

Tourism sector has topped Rwanda’s exports with 25.5 percent over the total exports score of 31.7 percent revenue into Rwanda’s economy.

Figures published by Ministry of commerce indicate that the fast growing sector earned the highest figure at US$251 million in 2011.

Presenting the state of the Rwanda’s economy Francois Kanimba, the Minister of Trade and Industry, said that exports increased by 31.7 percent, from US$564.6 million in 2010 to US$743.5 million in 2011.

Kanimba said it was mainly mainly boosted by improvement in the mining, tea and coffee sectors, as well as receipts from tourism.

However, imports were still 33.9 percent higher than exports, owing to poor performance by local industries which made it inevitable to increase imports.

Imports skyrocketed to over US$1.08bn in 2011 compared to the previous year’s US$1.05bn.

“We still have a lot of work to do in the local industrial sector; many industries are struggling to operate and indeed, some of them may close down,” Kanimba said.

“However, government policy is to facilitate those that can be revived to cut their costs of production and begin contributing to local production, which in turn will help to reduce importation.”

According to Kanimba the government decided to bail out 25 local medium scale industries and 15 small ones under a programme that will continue through 2012 to bridge trade deficit.

Ten new plants commenced operations in 2011 as well as a number of small food processing plants in the rural areas hence contributing to the overall performance of the economy.

He also said that there was no tangible gain from the East Africa Community’s (EAC) resolution to impose taxes on sugar imports from outside the bloc yet the region faced a heavy sugar scarcity.

“We requested our EAC counterparts to consider the removal of taxes on sugar imported from outside the bloc as an incentive to increase supply and stabilise sugar prices in the local markets,” Kanimba said.

EAC imposed taxes on sugar imports from outside the bloc to protect sugar traders in the region.

However Rwanda’s trade with EAC has improved with exports to the region elevating to US$107 million by September 2011 from US$105 million in 2010.

“Among other things, regional trade was facilitated by the opening of Nemba One Stop Border Post with Burundi following the 24 hour operations at Gatuna. Other border posts to commence construction in 2012 include Kagitumba-Mirama Hills and Rusumo Border,” Kanimba added.

The government also expressed optimism on key bilateral investment deals with Congo Brazzaville, North America and China.

Under the Bilateral Investment Treaty with the USA signed in 2008 by President Paul Kagame and former US President George W. Bush, Rwanda was able to export products worth US$52 million in 2010.

Under the agreement, Rwanda has the opportunity to export over 5,000 units of products duty free into North America.

On top of that, China opened up its market for up to 4,000 products from Rwanda on duty and quota free basis.

ENDS

Vendors at Kicukiro market are being relocated to the newly built Kabeza market since the site will be used to construct a modern bazaar valued at Frw 3billlion in the next 18 months.

The director of land in Kicukiro district Claude Rwakazini, urged vendors to cooperate in the relocation process since construction of the modern market was in line with the city’s master plan.

“Putting up this market isn’t enough since this year we want to construct modern buildings from Sonatube round about all the way to the district headquarters,” Rwakazini remarked.

He added that the market will have the capacity to accommodate 1000 units for traders dealing in various businesses and services.

However, some vendors are hesitant to relocate to Kabeza market citing the long distance and high rent charges.

Augustin Macumu among the shareholders of Kabeza market noted that the vendors are misinformed because new traders are given a grace period of four months and pay later at a negotiable renting fee.

“The idea of our market was to give space to hawkers whose activities had become a nuisance in town. Some up to now have not paid but we hope that they will do so when their business blossoms,” said Macumu.

The National Police together in collaboration with Rwanda Revenue Authority have seized a man for smuggling into the country products worth approximately Frw 1, 200, 000, as reported by RRA Nyabugogo branch.

Jean Claude Ntakirutimana was found with 788 boxes of vinegar together with 30 pairs of shoes with no accompanying legal documents authorising their importation.

On Arrest, Ntakirutimana said that he liaised with another person in Kampala-Ugamda and reached an agreement of helping him to sell products in Rwanda.

Ntakirutimana claimed it was the first time he engaged in business activities.

His driver Ferdinard Bizimana, who drove the products, told press that he normally brings related products and takes them to Burundi and that this time he was hired by Ntakirutimana to transport similar products into Rwanda.

Congo-BrazzaVille Agriculture and fisheries Minister Matson Mampouya Hellon is in Rwanda to cement the recent agreed bilateral relationship between the two countries.

Mampouya has had an agreement and signed MoU with his Rwandan counterpart Dr Agnes Kalibata to have mutual cooperation between the two Ministries.

This follows the renewal of bilateral relations between the two countries after 27 years which the recent state visit of his president Denis Sassou Nguesso to begin cooperation in the areas of Agriculture, Trade, Natural Resources and Human settlement, ICT development, tourism among others.

The two countries entered the pacts during the second Joint Permanent Commission (JPC) meeting held in Kigali. The first session of JPC last held in August 1984.

During the meeting, the Minister of Foreign Affairs and Cooperation, Louise Mushikiwabo, and her Congolese counterpart, Basile Ikouebe, resolved to move beyond signing agreements but be followed by action.

Mapouya has also been received by Prime Minister Pierre Damien Habumuremyi accompanied by Rwanda’s Permanent Secretary in the Ministry of Agriculture and Animal Resources Ernest Ruzindaza.

Hosted by his counterpart Dr Agnes Kalibata, the two signed MoU Monday December 12, 2011 to strengthen cooperation in fishing industry between the two countries.

The MoU allows Rwanda to share its experiences in cage and tank fisheries while also helping to improve imports and exports for both nations.

Rwanda has shown potentially developed in the area of fresh water fish but as a land locked country does not have access to the types of salt-water fish that Congo Brazzaville has, making this relationship mutually beneficial for two countries to establish supply to each other.

During his stay, Minister Mampouya visited various fishing activities across the country. He returns to Congo Brazzaville on Wednesday, December 14, 2011.

In his interview with the press, the Minister Mampouya said that discussions with Prime Minister Pierre Damien Habumuremyi focused on collaboration between Congo and Rwanda.

Mampouya added that his visit was also intended to inform the Prime Minister the nature of agreement with his counterpart from Rwanda.

The Permanent Secretary in the Ministry of Agriculture and Animal Resources Ernest Ruzindaza said that the Congo would like to improve fish farming, and Rwanda, which has taken a major step in this area, is ready to support them in this process.

With an annual production estimated at 100 000 tonnes per year, Congo says Rwanda’s experience will enable Congo-Brazzaville to reduce the rate of imported fishes.