IGIHE

Category: Business

  • Entrepreneurs’ Lifestyle: Freedom comes with responsibility

    Entrepreneurs are, by nature, risk takers and know it may culminate into serious or negative results, but they always see the positive and remain forever optimistic. If the decision was the right one, the benefits and results offer a great deal of personal satisfaction and a wonderful sense of achievement.

    If entrepreneurs only realised the extent of the risks that they take on a daily basis, they would probably not take these decisions, or be much more cautious and research the matter to a larger extent before making the call. But, a call needs to be made. Unlike in the corporate environment where a team, commission and task groups of specialist in disciplines debate a solution, running your own business means making decisions by yourself. It may be tough, but it is also great, exciting and satisfying. You make the decisions; the buck stops with you. No reporting. No writing of motivations. Complete freedom to do what your gut tells you.

    However, the freedom also comes with responsibility. The decisions taken will influence the position or situation not only for yourself but also others around you. You have to understand how your decisions will affect you, your business, your staff, your clients and your community at large.

    Entrepreneurs are free to make decisions but are they really free? Not really. You may not have to report to a line manager, but you have other bosses. The most important boss in the life of an entrepreneur is his or her customer. They dictate. If you do not satisfy their needs, you have no business. So they are your bosses. They call the shots. They have options. They have the money in their pockets and as they say, “a customer is the king”. Other bosses are the Government (think of SARS as an example or the laws you need to abide by), your family responsibilities and those who work for you. Your suppliers are also bosses.

    Yes, entrepreneurs are the master of their own destiny. They make the decisions. They have the freedom to do what they want and when. But it comes with a great level of responsibility and like all things in life, freedom comes at a price.

    Jean Claude Mutajogire is the Country Manager of Business Partners Limited.


    About Business Partners Limited:

    Business Partners Limited is a specialist risk finance company for formal small and medium enterprises (SMEs) in Rwanda, and selected African countries. The company actively supports entrepreneurial growth by providing financing, specialist sectoral knowledge and added-value services for viable small and medium businesses. Visit www.businesspartners.co.za for more information.

  • RRA, Liberia Revenue authorities sign cooperation deal

    Rwanda Revenue Authority (RRA), Liberian Revenue Authority (LRA) have signed a mutual cooperation to enhance assistance and cooperation between their respective customer’s administrations.

    The cooperation includes exchange and sharing of advice, information, and experience between the two institutions as well as finding lasting solutions to existing challenges between the two institutions.

    The two revenue authorities have agreed to share information about their customer’s laws and procedures that are relevant to ensure proper application of tax laws and mutual cooperation, in the prevention investigation and combating of tax offenses.
    RRA Commissioner Richard Tusabe said that the cooperation will assist the two authorities to offer proper services since both authorities are better in some way or the other.

    “They are better than us in certain areas, even us we are better in other areas so what we can work together as a way of learning from each other. The cooperation will enhance two authorities in building capacity to sustain the improvements that have been achieved” Tusabe said

    LRA Commissioner Stewart Elfrieda also said that the reason cooperating with RRA is that Rwanda is one of the states which is developing in the business sector.

    “Rwanda is one of the fasting growing economies on the continent especially in the business sector, so we as LRA decided to cooperate with RRA. We wish to learn a lot from RRA especially when it comes to tax collection in general and how to change the mindset of tax payers”

  • Exhibitions facilitate trade relationship & technology transfer, says PM Murekezi

    Prime Minister Anastase Murekezi said that the main objective of trade fair is to facilitate trade relationships and technology transfer.

    He made the remarks on August 24th, while officially opening the 20th Rwanda International Trade Fair that is taking place at Gikondo Expo Ground in Kigali from 22nd August to 6th September 2017.

    Murekezi said that organising trade fairs in Rwanda is in line with the country’s vision of putting private sector at the heart of economic development for all.

    Prime Minister Murekezi pointed out that Participating actively in International Trade Fair will help Rwandan exhibitors to fast track knowledge transfer amongst peers thereby strengthening the competitiveness of local business operators.

    He further urged all exhibitors to network extensively and exchange ideas and experience with their international counterparts.

    Today, most of African economies still depend heavily on production and exports of raw materials and unprocessed commodities, too little value addition and few forward and backward linkages to other sectors of the economy. Said Prime Minister Anastase Murekezi.

    The Premier further commended African Countries to increase value addition, extract higher rents from commodities and to better integrate into the global value chains.

    This Rwanda International Trade Fair (RITF) attracted more than 500 exhibitors from 17 countries, the United Arab Emirates, Egypt, Canada, Iran, Pakistani, Turkey, Singapore, Malaysia, Nigeria, Ghana, USA, India and the East African Community (EAC) member states, among others.

  • FAO-IFAD train farmers in contract farming

    Over 30 government officials, including law and policy makers, leaders of cooperatives from the private agribusiness sector, NGO’s and stakeholders have attended a four-day training contract farming course at Umubano Hotel, Kigali.

    Under the theme “Legal and Operational Aspects of Contract Farming Schemes”, the workshop was focused on increasing linkages between farmers and agribusiness firms and is set to address enormous challenges including lack of access to farm inputs, modern technologies, finance and markets faced by smallholder farmers who provide up to 80% of the food supply in Rwanda.

    Speaking during the official launch of the course, FAO Country Representative to Rwanda, Mr. Attaher Maiga said that Rwanda is rapidly urbanizing and experiencing fast economic and population growth rates and as a result of these social and demographic trends, dietary habits are subsequently changing and so is the demand for intangible food attributes such as the ones associated with quality, diversity and supply regularity and hence the need to be responsive to these changing consumer needs.

    “As a fast-growing economy, the transformations that are taking place in Rwanda, and primarily in the so-called “beyond the farm gate activities” that include logistics, wholesaling, processing and retailing may further limit the access of smallholder farmers to the modernizing agricultural and food markets,” he added.

    In Rwanda, successful contract farming schemes in areas such as coffee and grain already exist but many small holder farmers do not understand the concept.

    Alexandre Nshimiyimana, RYAF coordinator of Burera Avocado processing in Sanit Wing Ltd who attended the course said that signing of contracts will benefit the farmers and buyers in that it creates security since both parties agree on a fixed price.

    “The buyer is also guaranteed of constant supply from the farmers which in turn are a benefit to the farmers to access loans from financial institutions to buy seeds. The course will assist us to understand formulation and interpretation of these contracts”.
    Vincent Hamigyimana a potato farmer at Kirigi cooperative added.

    Dr. Telesphore Ndabamenye, the head of the crop production and food security said that “Contract Farming” is one of the proven mechanisms that can be promoted to improve efficiency and smallholder farm inclusiveness in food and agriculture systems.

    “Contracting schemes and buyers of farm products can ensure that they will have a regular supply of produce that meet quality requirements and are timely delivered. Farmers, on the other hand, shall benefit from having a guaranteed market for their products and, in many cases, gain access to technology, inputs, and financing.” Dr. Ndabamenye added

    The initiative and joint work of FAO with UNIDROIT and IFAD towards the development of the “Legal Guide on Contract Farming”, was launched in 2015 and IFAD has generously provided FAO with a grant for a project to disseminate the key messages and principles of this Legal Guide.

    This four-day workshop is an important part of this dissemination effort where participants were introduced to the dissemination approach and to the materials developed by the project team and also help FAO to validate both the dissemination methodology and the supporting materials that are a central element in it.

  • Rwanda receives $120m World Bank loan

    Rwanda has received $120 million World Bank loan to enhance, improve and promote skills development.

    The landmark financial agreement was signed between the Minister of Finance and Economic Planning Amb. Claver Gatete and Yasser El-Gamal the Country Manager for the World Bank Group in Rwanda on July Monday 17, 2017 in Kigali.

    The World Bank loan is to be used in a period of three years according to the financial year 2017/18,2018/19 and 2019/2020, for skill development

    Minister Gatete has explained that World Bank loan will be invested in strengthening the energy and industrial sectors specifically in the enhancement and promotion of made in Rwanda products.

    These funds will be utilized during the respective fiscal three years 2017/2018, 2018/2019 and 2019/2020, for skills development and mainly focusing on what is required on the job market.

  • Volkswagen to start electric car assembling plant in Rwanda

    Volkswagen is to start an assembling plant of electric vehicles in Rwanda before the end of this year.

    The German largest automaker which is developing electric vehicles signed a memorandum of understanding in Kigali.

    Claire Akamanzi the Rwanda Development Board (BDB) CEO made the announcement during the CEO forum on Wednesday.

    It is the first of its kind aimed at bringing both the local and foreign investor to discussing challenges and sharing experiences, knowledge in investment climate of Rwanda.

    Akamanzi declared that the European Union is the biggest investor accounting for over one-third of the investments in Rwanda.

    Volkswagen is an EU company which has already made a decision to invest in Rwanda.

    “The biggest issue is innovating the way you can have a battery that can stay for long distances that is something VW is doing research on and they’re hoping to make a break through.”

    She noted that if they get breakthrough one place they want to come and unleash that is Rwanda, we welcome that. We expect them to begin some of the activities in phases this year.”

    The minimum requirement for such companies which Volkswagen already meets is to invest an equivalent of at least USD 10 million in both tangible and intangible assets in Rwanda.

    According to World Bank’s Doing Business index 2016, Rwanda is ranked as 1st in East Africa in terms of ease of doing business and 3rd in the entire Sub-Saharan region.
    The Rwanda Development Board (RDB)'s CEO, Claire Akamanziiii3.jpgijef.jpghdf.jpg

  • Remote Estates is committed to help Rwandans own homes

    Remote Estates, a subsidiary of Remote Group of companies which is widely known as an engineering, construction and project management firm, has committed to helping Rwandans own houses by developing modern yet affordable units.

    This is in line with the government’s policy of increasing urban population to at least 35% by 2020, posing need for 56,000 affordable housing units to meet the target. As a strategy, the government has approved the fund for developers of affordable housing to acquire funding at a lower interest rate compared to bank loans.

    Having operated in Rwanda since 2016, Remote Estates has realized the need of affordable housing units and decided to venture into developing modern units which any interested clients can purchase.

    Remote Estates’ Operations Manager, Ido Herman, reveals to IGIHE the company has spent enough time in the country to know the needs on the ground yet few projects are in place to address the needs. Herman says Remote Estates will develop 270 affordable housing units in Masaka, Kicukiro District.

    The cost of a three-bedroom apartment with its facilities starts $35,000 (around Rwf30 million). The interior of the apartment is incremental to allow the owner to customize the inside walling the way they want. Self build is an option to keep the costs down, but buyers can also choose for a complete apartment.

    The units will be constructed using Autoclaved Aerated Concrete (AAC), the construction material that is widely used in developed countries in America, Europe and Asia.

    AAC helps reduce at least 30% of environmental waste and decrease 50% of greenhouse gas emissions as opposed to traditional concrete cement.

    Herman says that interested clients choose the best ways for them to afford paying the unit of their choice including paying in five installments with the first installment due at the beginning of construction works.

    Equipped developer to deliver on time

    While some investors start projects and fail on the way due to their dependence on expected funding which may not be disbursed, Herman says that Remote Estates has all the required means to deliver the project on time without waiting for any external funding.

    “We have heard of previous housing projects where investors only built 5 or 10 houses, and failed to complete the project. It won’t be the case for Remote Estates, as we are a private company capable to deliver our project without relying on other institutions,” says Herman

    These Estates are built in an environment offering clear and refreshing surroundings of natureThe Design of the to-be built houses in Masaka2-64.jpgTo be saved from the burden of rent houses, why not be the first to buy?5-38.jpg7-32.jpg6-35.jpg8-29.jpg9-18.jpg10-20.jpg

  • RRA set to auction UTC building over Rwf1 billion tax arrears, negotiations falter

    Rwanda Revenue Authority (RRA) is following legal procedures to auction 39 properties including the Union Trade Centre (UTC), a property of Rwandan exiled tycoon, Tribert Ayabatwa Rujugiro and four other shareholders.

    Rujugiro owns 97% of shares in the $20 million UTC while four others share the remaining 3% in shopping malls strategically located in city centre of Kigali, Nyarugenge District.

    Speaking to IGIHE, Mr. Richard Tusabe, the Commissioner General of RRA, says none of the 39 seized properties that appeared on RRA’s announcement of 2nd May, 2017, has cleared tax arrears.

    “Not any of the properties on the list has paid yet. We are following the due procedures. We shall auction them in accordance with the laws,” Mr. Tusabe said last week.

    UTC is the only famous property that features on the list of seized properties and probably the sole abandoned property under government’s management.

    Tusabe declined to give details on UTC tax arrears saying, “Wait until the auction time comes, we shall let you know.”

    However, IGIHE has learned that UTC owes government a whopping sum of about Rwf1.2 billion, resulting from evaded taxes between 2007 and 2013, plus penalties.

    UTC Manager, Alex Muhaya, said the management is dealing with RRA to see if the issue can get cleared before going into actual auction. However, the deadline seems to have expired, according to RRA’s announcement of May 2, which had given 15 days to property owners to pay taxes before going into auction.

    “I don’t think it is important to disclose details about the issue per now. These details are in the interests of UTC shareholders, not for the general public. If it gets into auction, you get to know and if it does not, we shall have cleared the arrears. Let’s wait for RRA’s final decision to announce details,” said Muhaya, declining to give further details on the issue.

    Fate of Rugiro dividends under district management

    Vedaste Nsabimana, the Nyarugenge District Vice-Mayor for Finance and Economic Development who also chairs the abandoned properties management commission, told IGIHE he is aware of the on-going saga of UTC battling with tax evasion, saying that the commission will manage Rujugiro’s balance after deduction of taxes in case the property is auctioned.

    “We manage dividends of Rujugiro only, not the entire UTC because it has other shareholders. We have paid all taxes since we took over the management of his dividends. UTC management can tell more about arrears and circumstances of their accumulation. But we have learned that they accumulated before we got into its management,” said Nsabimana.

    Rujugiro’s dividends in UTC were put under government’s management in October 2013 as abandoned property because the owner left the country in 2009 after battling tax evasion in England.

    The law of August 2015 on the management of abandoned properties authorises government to manage any immovable or movable property unrightfully possessed by others due to the fact that the rightful owners either died without leaving a legally recognised heir or do not reside in Rwanda for various reasons without having left behind a person legally authorised to manage their property.

    The government decentralised the management of abandoned properties to special district commissions. Currently, Nyarugenge District manages 70 abandoned properties including 67 houses and three land plots. So far, six properties, formerly under the commission’s management, have been given back to owners.

    Article 17 of the law on the management of abandoned property stipulates that a half of the amount collected from abandoned property shall be deposited on a fixed deposit bank account in the National Bank of Rwanda while the other half of that amount shall be deposited on a current bank account in the National Bank of Rwanda to be used in the maintenance and renovation of the abandoned property and tax payment.

    If the owner of the property shows up, the law states, they shall be refunded the money from the fixed bank account after deducting 10% which is transferred to the public treasury account. The owner shall also be refunded any unused money from the current account.

  • RRA set to auction UTC building over Rwf1 billion tax arrears, negotiations falter

    Rwanda Revenue Authority (RRA) is following legal procedures to auction 39 properties including the Union Trade Centre (UTC), a property of Rwandan exiled tycoon, Tribert Ayabatwa Rujugiro and four other shareholders.

    Rujugiro owns 97% of shares in the $20 million UTC while four others share the remaining 3% in shopping malls strategically located in city centre of Kigali, Nyarugenge District.

    Speaking to IGIHE, Mr. Richard Tusabe, the Commissioner General of RRA, says none of the 39 seized properties that appeared on RRA’s announcement of 2nd May, 2017, has cleared tax arrears.

    “Not any of the properties on the list has paid yet. We are following the due procedures. We shall auction them in accordance with the laws,” Mr. Tusabe said last week.

    UTC is the only famous property that features on the list of seized properties and probably the sole abandoned property under government’s management.

    Tusabe declined to give details on UTC tax arrears saying, “Wait until the auction time comes, we shall let you know.”

    However, IGIHE has learned that UTC owes government a whopping sum of about Rwf1.2 billion, resulting from evaded taxes between 2007 and 2013, plus penalties.

    UTC Manager, Alex Muhaya, said the management is dealing with RRA to see if the issue can get cleared before going into actual auction. However, the deadline seems to have expired, according to RRA’s announcement of May 2, which had given 15 days to property owners to pay taxes before going into auction.

    “I don’t think it is important to disclose details about the issue per now. These details are in the interests of UTC shareholders, not for the general public. If it gets into auction, you get to know and if it does not, we shall have cleared the arrears. Let’s wait for RRA’s final decision to announce details,” said Muhaya, declining to give further details on the issue.

    Fate of Rugiro dividends under district management

    Vedaste Nsabimana, the Nyarugenge District Vice-Mayor for Finance and Economic Development who also chairs the abandoned properties management commission, told IGIHE he is aware of the on-going saga of UTC battling with tax evasion, saying that the commission will manage Rujugiro’s balance after deduction of taxes in case the property is auctioned.

    “We manage dividends of Rujugiro only, not the entire UTC because it has other shareholders. We have paid all taxes since we took over the management of his dividends. UTC management can tell more about arrears and circumstances of their accumulation. But we have learned that they accumulated before we got into its management,” said Nsabimana.

    Rujugiro’s dividends in UTC were put under government’s management in October 2013 as abandoned property because the owner left the country in 2009 after battling tax evasion in England.

    The law of August 2015 on the management of abandoned properties authorises government to manage any immovable or movable property unrightfully possessed by others due to the fact that the rightful owners either died without leaving a legally recognised heir or do not reside in Rwanda for various reasons without having left behind a person legally authorised to manage their property.

    The government decentralised the management of abandoned properties to special district commissions. Currently, Nyarugenge District manages 70 abandoned properties including 67 houses and three land plots. So far, six properties, formerly under the commission’s management, have been given back to owners.

    Article 17 of the law on the management of abandoned property stipulates that a half of the amount collected from abandoned property shall be deposited on a fixed deposit bank account in the National Bank of Rwanda while the other half of that amount shall be deposited on a current bank account in the National Bank of Rwanda to be used in the maintenance and renovation of the abandoned property and tax payment.

    If the owner of the property shows up, the law states, they shall be refunded the money from the fixed bank account after deducting 10% which is transferred to the public treasury account. The owner shall also be refunded any unused money from the current account.

  • Bugesera Airport Concession agreement signed

    A concession agreement signing ceremony has taken place, marking the commencement of New Bugesera International Airport construction in Bugesera, Eastern province.

    The signing was, on behalf of the Republic of Rwanda done by Honourable James Musoni , the minister of Infrasttucture and Mr.Emmanuel Mota, the Chief Executive Officer Monta-Engil on behalf of the developer and the Engineering, Procurement and Constructio (EPC) contractor.

    The project is worth USD $700m) to be executed in 4 phases. The first phase is expected to be completed in 2019.The project will be run under Build Operate and Transfer business model(BOT).

    The signing comes after the concluded negotiations of a Public Private Partnership (PPP) transaction with Mota-Engil Africa (MEA) and Aviation Travel & Logistics Holding Ltd that was done in September 2016 in connection with the development of the New Bugesera International Airport.

    The Project will be constructed under is aBuild, Own, Operate and Transfer (BOT) business model for a twenty five (25) year concession. Further to the signature of the Project Development Agreement (PDA) and the Joint Venture Agreement (JVA) on 1st September 2016, the parties have concluded all the Project Documents as an important milestone towards raising the equity and debt funds required for the Project (“Financial Close”) as well as defining the detailed terms for the operation of the airport during the concession period.

    The signed Project Documents are:

    a. Concession Agreement: between the Government of Rwanda and the Joint Venture (Bugesera Airport Company as project vehicle);
    b. Shareholders Agreement: between Mota-Engil Africa and ATL;
    c. Engineering, Procurement and Construction Contract (EPC Contract): between the Bugesera Airport Company and Mota-Engil Africa as the EPC Contractor.

    The total cost for the project is $700Million and designed in a way that it will be developed under five phases. The first phase is estimated to take twenty seven (27) months of construction and to cost about USD 400 Million. At starting of operation the airport will be able to accommodate about 1.8 million passengers per annum.

    The development of the subsequent phases will be triggered by passenger traffic. According to the current forecast under the Financial Model of the Project, development of the subsequent phases will be triggered by demand targets with internally generated funds of the Project. It is expected that at the end of the concession, the Airport will accommodate at least 6 million passengers per year.

    The construction of a new airport is aligned with the Vision 2020 and the EDPRS. The Project will have a high impact on the socio-economic development of Rwanda in general and on the positioning of Rwanda as a regional hub. It will also sustain the development of the aviation sector by providing all necessary facilities to RwandAir as a growing airline and to the development of logistics operations.

    The Project will also promote Rwandan businesses opportunities as a catalytic asset for service provision in all aviation activities, including logistics, maintenance of aircrafts, catering services, etc. And above all the Project will provide opportunities to Rwandans with about 2,000 jobs created for locals, since local content is considered as a priority in the agreements.