Category: Business

  • RDB Launches Program For Rwandan Exporters

    Rwanda Development Board in collaboration with TradeMark East Africa has launched a program to facilitate ten dynamic Rwandan companies export their goods to the neighbouring country, Uganda.

    The top ten companies are selected based on their quality products and will be helped to market their products on Ugandan market.

    This initiative comes after government approved the National Export Strategy and is the first phase of the implementation of RDB’s Rwandan Export Development Programme.

    “This is exactly the sort of practical hands-on support our companies need. I hope that many companies from all production sectors will contact us to participate in the MarketLink Uganda programme,” said Eusebe Muhikira, the Acting Head of the Export Promotion Department.

    “The MarketLink initiative aims to help develop business ties between manufacturers and buyers in the East African Community. In particular it aims to capitalize on opportunities for intra-regional trade and business arising from the formation of the EAC Common Market.” Mark Priestly, Country Director of TradeMark East Africa, the donor programme that is funding this pilot initiative.

    Following selection of the top 10 Rwandan companies, samples of their products will be taken to the Uganda by RDB staff.

    Then, together with the TraidLinks team in Uganda they will undertake an intensive on ground research exercise to find buyers, show them the products and get them interested in meeting with the Rwandan producers.

    Participating companies will then be taken to Uganda and introduced to their potential trade partners and each Rwandan company will have an itinerary of individual face to face meetings with a range of Ugandan businesses.

    Traidlinks is an Irish company with a base in Kampala, set up to promote enterprise development focusing strongly on growth and improving the productive and overall corporate competitiveness of businesses.

    Through TradeMark East Africa, a cost-effective regional aid delivery mechanism has been established that can focus on building long-term East African capacity.

    TradeMark East Africa provides a durable platform for scaling-up of Aid For Trade to East Africa.

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  • Rwanda’s Bank Gets Rwf 7.4bn Boost

    One of the largest banks in Rwanda has received a whooping boost of Rwf 7.4 bn from the African Development Bank (AFDB ).

    Bank of Kigali (BK) has signed a US$ 12m (Est. Rwf 7.14bn) line of credit and a US$ 500, 000 (Est. 297,500,000) grant agreement for technical assistance from the fund for African Private Sector.

    According to BK’s Managing Director, James Gatera the credit will improve the bank’s liquidity and its ability to support key economic sectors, such as infrastructure, manufacturing, agri-business and tourism.

    “I am pleased that BK is once again able to secure wholesale funding at competitive rates, this credit line will enhance the bank’s ability to increase provision of financial services in the country,” Gatera said.

    The technical assistance grant will strengthen the capacity of the Bank of Kigali as it pursues its strategy to bank the unbanked population and increase financial services in Rwanda.

    It will improve the Bank’s capacity, including designing and implementing environmental policy and aligning it to Rwanda’s commitment to environmental conservation for sustainable economic development.

    The AfDB’s financing and support to the Bank of Kigali is in line with the Rwandan government’s strategy to deepen the availability of banking services by supporting local Rwandan banks and microfinance institutions in their efforts to expand banking services to rural Rwandans.

    The Bank of Kigali has become one of the largest banks in Rwanda, now said to be well positioned to channel funding to micro- small- and medium-enterprises and infrastructure projects.

    The AfDB estimates that 2,075 jobs will be generated in the sub-projects financed with resources from the line of credit.

    Approximately 60 percent of jobs created will be for skilled workers and the beneficiary companies will likely increase their incomes by about 10 percent over the same period.

    Negatu Makonnen the AFDB Country Director noted that the credit line will boost the economic growth by not only generating employments but also business opportunities, especially for micro-small and medium enterprises.

    “The AfDB’s credit facility intervention will help Rwanda’s financial system by making long-term financing available to the Bank of Kigali and its clients, especially local small and medium enterprises” said Negatu Makonnen, AfDB’s resident representative in Kigali.

    “By supporting the growth of local companies, the line of credit will indirectly facilitate job creation and economic empowerment of the beneficiaries, including women and youth, through increased revenues, increased income, and increased capital,” he added.

    The AfDB’s public sector lending operations in Rwanda currently amount to USD 966 million, comprising multi-sector investments in agriculture, transport, human development, public utilities, finance, and industry, mining and environment.

    The AfDB has also approved five on-going multinational projects amounting to USD 179 million. From its private sector window, the AfDB is funding eight projects amounting to USD 87 million.

    This includes financial and technical assistance to the private sector through the Banque Rwandaise de Développement (BRD) and the Bank of Kigali, and direct financing of productive investment projects such as CIMERWA for cement production, and Kivuwatt Power for clean energy.

    The African Development Bank Group’s mission is to help reduce poverty, improve living conditions for Africans and mobilise resources for the continent’s economic and social development.

    With this objective in mind, the institution is assisting African countries – individually and collectively in their efforts to achieve sustainable economic development and social progress.

    In 2011, the Bank of Kigali became the second domestic company to be listed on the Rwanda Stock Exchange.

    It has a credit rating of A+/A1 by Global Credit Rating Agency from South Africa. In 2009 and 2010, the Bank of Kigali was recognized as the Best Bank in Rwanda by emeafinance, in addition to Bank of the Year by the Financial Times.

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  • WB Launches Rwanda’s Economic Update Report

    Different economic and financial specialists from World Bank(WB) and government of Rwanda have converged in a meeting to launch the second edition of the Rwanda’s economic update.

    Comments about the findings from a number of stakeholders are emerging as the house hold enterprises report.

    In a press release by WB has indicated that Rwanda has had resilience economic adversity and her growth prospects remains favourable.

    “This resilience is a result of sound macroeconomic management in times when regional and global shocks are having adverse consequences for many neighbouring countries,” Johannes Zutt the world bank country Director for Rwanda.

    The report titled resilience in the face of economic adversity: policies for growth with a favor on household enterprise predicts Rwanda’s 2011 growth at over 8 percent a growth rate that is stronger than forecast for Sub-Saharan Africa as a whole.

    It also indicate that Rwanda’s economic growth in the first half of 2011 was led by strong performance in the industrial and service sectors.

  • Book Review: East African Progress

    Title: East African Literature: Essays on Written and Oral Traditions
    Co-editors: Egara Kabaji, Dominica Dipio and J.K.S Makokha
    Publisher: Logos (Berlin, 2011)
    Volume: 510 pages

    Fostering the literary integration of East Africa

    As renewing of the economic, political and social integration of East Africa progresses steadily, the region’s distinguished literati are also rising to the occasion, so to speak.

    With this collaborative book, East African Literature: Essays on Written and Oral Traditions, the various contributors seek to “participate in the on-going process of cultural reawakening in East Africa”, among other things.

    Unlike previously when the East African Community (EAC) comprised of Uganda, Kenya and Tanzania, the literati are obviously aware that East Africa is wider and broader than that.

    Seasoned and younger literary critics and works from Rwanda, Burundi, Somalia, Djibouti, Ethiopia, Eritrea and Southern Sudan, many of whom are either based in their home Universities and others abroad temporarily and permanently, took part or are featured.

    “This collaborative book brings to the intellectual world of literary studies fresh reflections, perspectives and criticism on contemporary East African literature and orature.” It’s well known that East Africans have more similarities, like Swahili being the growing regional lingua franca, than differences.

    This extends to societal issues such as the traditional subjugation and subordination of women, which is discussed a great deal in this volume, as captured by the various representative writers and artists’ works.

    “The structure of this book moves from the general to the particular while capturing generic aspects of contemporary East African literature by way of a number of genres and examples.”

    From the view of body as text (“the unsaid”), to the form, style, content (theme and context), the esteemed literary scholars and critics unravel the information communicated by the suitable/selected literary works.

    The book commendably encompasses all genres with “focus on current stylistic trends, narratological issues and thematic concerns.” For their profoundly informative essays, the academics insightfully draw from established and emergent writers, poets, dramatists, and musicians in the region.

    In her essay, for instance, Dr Dominica Dipio, head of the Literature department at Makerere University, uses Julius Ocwinyo’s Footprints of the Outside and Goretti Kyomuhendo’s Waiting to examine the fictional rendition of Uganda’s troubled history.

    However, the image of women in art seems to attract more thematic concern, with most works and essays across the region analyzing the same issue. For example, Jairus Omuteche and Lenox Odiemo-Munara argue in their essays that unlike many other works in the region, Margret Ogola’s Place of Destiny and Elieshi Lema’s Parched Earth: A Love Story, from Kenya and Tanzania respectively, attempt to portray women and their struggle in a positive light.

    Language is taken as taken as a tool for advancing male dominance in society. Beth Mutugu, in her feminist perspective on several Swahili novels by the late popular Tanzanian novelist Ben Rashid Mtombwa, sees English and Swahili (the dominant African literary language, beside Amharic in Ethiopia) as inherently sexist; “the two languages are systems that embody sexual inequality.”

    Sexual inequality and discourse is also apparent in the form and style of a variety of oral poetry such as among the Borana in northern Kenya, and vernacular literary traditions across the region, like in the Nyatiti musical performance of the Luo community.

    But in Clara Momanyi’s essay on a popular Kiswahili play, Mama Ee, by Kenyan Feminist writer Katini Mwachofi, she raises concern about the “need to critique African literary works composed in Africa by African writers through the use of African feminism.”

    Other crucial issues tackled in this broad literary critique include the “alive and kicking” style of the Kenyan novels with Swahili code-switching, criticism of the political establishments, the HIV-AIDS scourge, style in children literature, and the transitional art of Somali drama “representing the experience of a society in a testing period of change.”

    This illuminatingly brilliant literary collaboration on East African Literature comes on the heels of other remarkable initiatives and works such as James Ogude and Joyce Nyairo’s Urban Legends, Colonial Myths: Popular Culture and Literature in East Africa, Performing Community: Essays on Ugandan Oral Culture also edited by Dominica Dipio, Lene Johannessen and Stuart Sillars, Kwani?, among others. The book can meanwhile currently be purchased from Amazon.com, and will soon be available in accessible bookstores in East Africa.

    Last but not least among all, the book’s editors are esteemed academicians worth applauding. J. K. S. Makokha teaches courses on African, Caribbean and South Asian literature in the Institute for English Philology, Free University of Berlin; Professor Egara Kabaji is the Director of Public Communication and Publishing, and a Professor of Literature, at Masinde Muliro University of Science and Technology; and Professor Dominica Dipio is current head of Literature Department in Makerere University.

    Higenyi is a Freelance Writer/Reviewer

    Email: higenyihassan@yahoo.com or

    hassanhigenyi@gmail.com

  • Rwandair To Launch New Routes

    The National carrier, Rwandair Chief Executive Officer John Mirenge has announced that the carrier will open new routes that will connect it to the world .

    In an exclusive interview with igihe.com, Mirenge said that this will make the country more accessible bringing growth and expansion for the business community, tourism sector, and leisure among others leading to the economic growth.

    “As a landlocked country the movement of people and goods is very vital not only for those who need to get out of Rwanda but also for those who need to easily access Rwanda,” Mirenge has said in his Kigali International Airport based office.

    Mirenge noted that one of the company’s key targets is to make the country accessible through opening new routes so that investors can access Rwandan market.

    He also added that RwandAir will also offer key and vital links between Rwanda and key hubs in the East African region, and to other destinations.

    Another benefit is local businessmen to access other markets in different parts of the world for exportation and also importation as a way which contributes to the development of the country.

    “By choosing a strategy to fly to key hubs, the national carrier has certainly laid a good network that will enable the positive growth already anticipated in tourism, and other key pillars to economic development like business and leisure,” Mirenge said.

    “For the country like Rwanda which is landlocked; to reach its growth and development, it needs to be accessible,”

    Mirege also said that as a national carrier it is a contributor to the national economy through the number of passengers transported in and out of Rwanda.

    “The number of passengers transported in and out of Rwanda, now averaging about 15, 000 passengers a month. We expect that with increase in frequencies to our destinations and as we introduce newer destination we will witness the national carrier contribute more both directly and indirectly.” He pointed out.

    Rwandair is a national carrier that is still in its infancy stages after the government fully owned it in 2010.

    According to its CEO, the carrier now owns seven aircrafts including recent introduced two Boeings 737-800 that are already operational, and that the staffing levels currently stand at around 540 employees with about 65% Rwandan citizens employed in commercial and other administrative positions.

    By the country’s vision 2020, the carrier intends to increase to 18 aircrafts.

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  • ICGLR Warns Of Indirect Rebel Support

    The International Conference on the Great Lakes Region (ICGLR) Program Officer in charge of democracy and good governance Silas Sinyigaya has warned of supporting rebel groups in DR Congo while buying illegal minerals.

    Sinyigaya was attaining a meeting to elect members of independent audit committee of ICGLR secretariat.

    “Whether one does it knowingly or unknowingly, in one way or another he ends up supporting those rebel groups in the jungles of DR Congo”

    “People who buy minerals should follow regulation put in place in accordance to the Lusaka declarations by heads of states, by following those regulations one can avoid buying minerals from negative forces,” Sinyigaya has said.

    Sinyigaya said that the 3rd part of the auditing system will enhance mineral certification and guarantee that mineral chains are conflict free.

    “All of these is being done to prevent negative forces access to minerals, illegal exploitation of minerals helps the groups finance their activities which destabilize the region,” Sinyigaya explained.

    He said that the rebel groups in DR Congo were benefiting from and striving to earn a living from these natural resources.

    Several countries among the 11 members of the ICGLR are working closely to eliminate the rebel forces to achieve regional security.

    The rebel groups hiding and carrying on several brutal attacks in DR Congo include Forces Democratiques de Liberation du Rwanda (FDLR) and Lord’s Resistance Army among others.

    In an effort to fight cross boarder smuggling of minerals, Rwanda’s minister of lands and mines Stanislas Kamanzi on Thursday handed over 80 tones of minerals to DR Congo government.

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  • Africa Now Profitable Investment Destination –Kagame

    President Paul Kagame has said Africa has become a profitable investment destination.

    Kagame who was addressing participants at commonwealth business forum in Perth, Australia said that Africa had in previous decades not considered for these kinds of ventures due to several turmoil.

    He told the forum that many African countries have economically developed tremendously and have attained political stability which would now give security to investments.

    “My country Rwanda managed to grow by 8% economically in the past ten years.” Kagame said.

    The economy of Rwanda has for the previous years, recovered from sharp downturn from 2.1% in 2000 and finance Minister John Rwangombwa has predicted to will continue its growth by 8.8% due to increased exports, expansion in the growth of services and construction sector.

    “In many times Africa has been taken as unstable continent to invest in but most cases including exaggerations because there is nowhere you can’t find these kinds of problems. Africa has now stood up to confront all these economic development challenges and seeking way forward to the sustainable development,” Kagame added.

    Giving an example of African countries that have been ranked in better positions in the world’s ease of doing business report, Kagame said Rwanda was ranked the 45th best country in ease of doing business among 183 countries across the world.

    He continued to say that Rwanda was ranked 143rd nation in doing business report by 2009 and then shifted to 58th position last year 2010.

    Kagame noted that this kind of development needed all African nations; there is a need for strong partnership between governments and private sectors.

    “Partnership between governments and private sector is the way forwards for sustainable development. It has been vividly realized that governments alone or private sector alone cannot develop with support from each other,” Kagame said.

    About 1000 global government & business leaders have participated in Perth, Australia meeting of guest speaker included President Paul Kagame while international business leaders invited included speakers expected to James Gatera, CEO & Managing Director, Bank of Kigali, Rwanda.

    Many of the dignitaries including Nigerian President Jonathan Ebele Goodluck hailed Kagame’s leadership also welcoming Rwanda into commonwealth heads of governments meeting (CHOGM) since it was her first time to attend the high profiled meeting.

    After this commonwealth business forum which is expected to end tomorrow, it will be followed by heads of government meeting on Friday.

  • Electricity Tariffs Will Reduce- EWSA

    The operations officer of the national electricity utility agency (EWSA) Nathalie Muteteri has affirmed electricity tariffs will decrease as the ongoing extraction of methane gas in Lake Kivu contributes to the current energy in the country.

    Officials from Rwanda Energy, Water and Sanitation Authority (EWSA) are in awareness campaign explaining residents around Lake Kivu, issues related to the extraction of methane gas and its extraction.

    “By 2017, at least 300 megawatts will have been extracted and other study are being conducted to see how to increase energy in the country so definitely tariffs will have to drop down,” Muteteri said in Karongi.

    Muteteri also calmed residents on the fear that methane gas will explode or make Lake Kivu to overturn saying that water surface of the lake overweighs the gas to cause such incidents.

    The lake’s seeming lethal combination of methane and carbon dioxide has continuously made residents fear for their lives, however methane gas is also Rwanda’s vital and promising energy source.

    Reports have suggested that Lake Kivu is one of the world’s three exploding lakes at serious risk of overturning, a process where huge amounts of carbon dioxide are released from the lake’s under surface, suffocating almost everyone residing around the lake.

    Experts have pointed out that there should not be any reason of panic, because the surface area of the lake is far larger than that of methane gas into the water and that extraction work is done by experts and so calling for no panic.

    It is not the first time residents residing around Lake Kivu get panic. Early this year, the State Minister for Energy and Water, Eng. Colette Ruhamya had to respond to them dispelling concerns that the extraction of methane gas and other fossil fuels from Lake Kivu would not harm biodiversity in the area.

    She said that several feasibility studies were carried out on how the extraction will be carried out without causing any harm and how effectively the waters can be separated from methane gas, which contains other fossil fuels.

    Ruhamya added that a Lake Kivu monitoring team was set up to keep a close eye on the activities in the lake.

    According to her, methane gas, carbon dioxide, petroleum, fertilizers, electricity and hydrogen sulphide are some of the fossils fuel that were discovered in Lake Kivu “but due to capacity constraints, Rwanda had to prioritized methane gas and electricity.

    Lake Kivu is said to be containing 65 billion cubic metres of methane (50 million tonnes of petrol) lying 250 metres under the water.

    The available electricity generation capacity in Rwanda in July 2009 is 69MW and is largely produced from hydro power and thermal sources.

    Overall power production has stabilized after severe power shortages in 2004 that caused massive load shedding all over the country, prompted the government to hire emergency power solutions and invest in increasing generation capacity.

    Generation capacity will be expanded to at least 130MW by 2012 mainly through investment in hydropower and methane gas to power projects.

  • Rwanda Plans Insolvent Law Awareness Campaign

    Despite major reforms in ease of doing business, Trade and Industry Minister Francios Kanimba has said that discussions are underway to kick-off awareness campaign on insolvency law.

    Resolving insolvency is one of the indices where Rwanda performed poorly in the ease of doing business report 2012 released yesterday by World Bank/International Finance Corporation (IFC).

    Minister Kanimba was commenting on the Doing Business report 2012 where Rwanda emerged 3rd in Sub-Saharan Africa and 45th among 183 countries across the globe.

    “There are some indicators where I am convinced that we have to do something to significantly improve, if I take indicator related to insolvency proceedings we are among the countries realy who are not performing well worldwide,” Kanimba said in an interview with igihe.com

    “You know we have enacted insolvency law but the reality is the public awareness campaign for people to know about the new law to start its enforcement has not really started, and we are now discussing on an action plan to see what we can do to move quickly on this indicator from where we are around 165 perhaps to come to a double digits rank instead of triple digits where we are now,” Kanimba added.

    Other indicators where Rwanda needs to improve include delaying contracts(39th) where it has not changed at all, protecting investors dropping from 28 last to 29th this year, while registering property falling by 20 positions from 41st last year to 61st this year and falling by 3 points in dealing with construction permits from 81st position last year to 84th position this year.

    However among 10 indices measured, only three of them Rwanda performed very poorly in t5he ranking of Sub-Saharan African countries including dealing with construction permits (13th ), trading across borders (31st ), 36th out of 38 countries in resolving insolvency while the rest of indices performing below 10 indices.

    Kanimba said that he is convinced that in two years to come, Rwanda will have gained significant improvements in the fallen indicators.

    “There are some indicators that made some countries that were below outdo Rwanda. This does not mean we did not reform but even other countries are reforming too and they are working very hard joining this competition to see what can be made for their doing business to improve,” He said.

    Kanimba called upon Rwandans not become complacent in this year’s score saying that there is a big room for improvement.

  • REPORT: Sub-Saharan Africa Improves Doing Business

    A new report from IFC and the World Bank finds that a record number of economies in Sub-Saharan Africa improved business regulations for local entrepreneurs in the past year.

    Released today, Doing Business 2012: Doing Business in a More Transparent World assesses regulations affecting domestic firms in 183 economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency, and trading across borders.

    This year, the rankings on ease of doing business have expanded to include indicators on getting electricity.

    The pace of regulatory improvements has picked up across Sub-Saharan Africa. Six years ago, a third of Sub-Saharan African economies made improvements to the regulatory climate for domestic firms.

    Between June 2010 and May 2011, 36 of 46 governments in the region implemented reforms in at least one of the 10 areas measured by the report.

    With three reforms, Rwanda has jumped a further 5 places, landing this year at position 45. Rwanda is third best performer in Sub-Saharan Africa, only behind Mauritius and South Africa.

    Rwanda made starting a business easier by reducing the business registration fees. And it eased firms’ administrative burden of paying taxes by reducing the frequency of value added tax filings from monthly to quarterly.

    Rwanda’s credit information system improved, as its private credit bureau started to collect and distribute information from utility companies and also started to distribute more than 2 years of historical information. Rwanda made transferring property more expensive, however, by enforcing the checking of the capital gains tax.

    “Entrepreneurship is constrained when regulation is too complex or onerous,” said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group. “With their impressive improvements this year, the governments of Sub-Saharan Africa are improving prospects for local businesses.”

    For the fourth year in a row, Mauritius was the easiest place in Sub-Saharan Africa for an entrepreneur to do business, with a global rank of 23.

    By implementing reforms in areas such as paying taxes, getting credit, starting a business, dealing with construction permits, registering property, and resolving insolvency, São Tomé and Príncipe, Cape Verde, Sierra Leone and Burundi are among the region’s most-improved economies for entrepreneurs.

    “Post-conflict economies such as Burundi, Liberia, and Sierra Leone are among those that have implemented broad regulatory reforms,” said Sylvia Solf, lead author of the report. “They demonstrate that despite challenges, economies can move forward to encourage entrepreneurship.”

    New data show that improving access to information on business regulations can aid entrepreneurs.

    In many Sub-Saharan African economies, getting essential information often requires meeting with an official, demonstrating that improving access to information remains one of the region’s areas for improvement.

    Over the past six years, 43 economies in Sub-Saharan Africa have made their regulatory environment more business-friendly.

    Recently, steps have also been taken to improve business regulation through regional coordination to overhaul a body of harmonized commercial laws—a legal reform requiring consensus from the 16 member states of the Organization for the Harmonization of Business Law in Africa (OHADA).