Category: Business

Speaking at the second edition of the Inclusive FinTech Forum in Kigali on Tuesday, February 25, the Head of State highlighted the need for a secure and regulated environment to not only attract investment but also enhance financial inclusion and build resilience in Africa’s rapidly evolving financial sector.

In his keynote address, Kagame noted that Africa’s young, tech-savvy population presents a unique opportunity for innovation in the financial sector.

“Indeed, with our continent’s young and tech-savvy population, Africa can compete with the rest of the world and successfully innovate,” he said.

“FinTechs continue to dominate, with the number of companies tripling in recent years. These enterprises are fundamentally shaping our financial services sector, especially with mobile money and remittance services.”

The president pointed out that regulations must evolve to keep up with this rapid growth, particularly to address challenges like cybercrime and fraud.

“We need a harmonized regulatory landscape, and we must come together to combat cybercrime and fraud,” President Kagame remarked.

He also called for closer cooperation between public and private sectors to unlock opportunities through innovation.

“We can unlock many more opportunities through public-private partnerships and by harnessing the power of artificial intelligence,” he added.

The Head of State also discussed the need for Africa to develop its own regulatory frameworks and infrastructure, highlighting Rwanda’s commitment to digital infrastructure and skills development as key drivers of the country’s economic progress.

“Moving forward, creating an enabling environment for business and skills development should be our number one priority,” he said.

Kagame also addressed challenges facing Africa, including the growing brain drain of skilled professionals and financial exclusion, particularly among women in the informal economy. He argued that the continent must take ownership of its own development, rather than relying on external support.

“Taking ownership of our development is not something we can ask others to do for us. Business founders also need to do their part and gain the confidence of investors,” Kagame said.

The three-day Inclusive FinTech Forum brings together global leaders, entrepreneurs, and innovators, providing a platform to explore solutions for the continent’s economic challenges through digital finance.

Among the attendees was Alvin Tan, Minister of State for Trade, Industry, Culture, Community, and Youth in Singapore.

In his remarks, the minister celebrated the longstanding relationship between Rwanda and Singapore as the two countries mark 20 years of diplomatic ties.

He praised Rwanda’s rapid development in recent years, expressing his pleasure at seeing Rwanda becoming the “Singapore of Africa.”

“We admire and respect Rwanda for your resilience and outstanding achievements in economic and technological development,” the minister remarked.

Singapore is highly regarded for its exceptional development, driven by strong governance, strategic economic diversification, and world-class infrastructure. Under visionary leadership, particularly that of Lee Kuan Yew, the country transformed from a small port city into a global financial hub, maintaining one of the highest GDPs per capita in the world, valued at 501.4 billion USD as of 2023.

To participate, merchants must receive payments from customers through their MoMo code and make payments to other merchants using MoMoPay. Two lucky merchants will each win a pickup truck.

Speaking at the launch, Chantal Kagame, CEO of Mobile Money Limited, said: “We are proud to launch this campaign as we celebrate a major milestone—reaching 500,000 merchants last year. We had a total of 3.3 million users of the MoMoPay services actively paying these merchants, which aligns with the government’s strategy to drive a cashless economy.

“This achievement reflects the trust that businesses across Rwanda have placed in Mobile Money as a reliable payment solution. ‘BivaMoMotima 3’ is our way of thanking them and encouraging more merchants to join the MoMoPay network for seamless, secure, and efficient transactions.”

The ‘BivaMoMotima’ campaign has been a staple of Mobile Money Limited’s commitment to driving digital financial inclusion. This third edition builds on the success of previous campaigns by specifically recognizing merchants, who play a crucial role in the ecosystem. By incentivizing the use of MoMoPay, the campaign aims to reinforce cashless payments as the preferred method for business transactions in Rwanda.

MoMoPay allows merchants to receive customer payments via a dedicated USSD code, providing a hassle-free alternative to cash transactions. With over half a million merchants already on board, Mobile Money Limited is encouraging even more businesses to register and benefit from the efficiency and security of digital payments.

Mobile Money Limited remains committed to empowering businesses and driving Rwanda’s digital economy forward, one transaction at a time.

About Mobile Money Rwanda Ltd

Mobile Money Rwanda Ltd is MTN Rwanda’s FinTech subsidiary, established on 27th April 2021 to provide and manage Mobile Money services in Rwanda. The company has about 5.1 million subscribers, over 65,000 Mobile Money agents, and over 500,000 MoMoPay merchants across the country.

With continuous innovations in services such as MoMoPay, MoKash Loans & Savings, Tap&Go bus payments, Bill Payments, International & Regional Remittances, and more, Mobile Money Rwanda seeks to maintain the lead in driving financial inclusion and supporting the digital economy in Rwanda.

The accreditation was granted during the 41st GCF Board Meeting held in South Korea.

This achievement positions BRD as a key player in mobilizing climate finance to support Rwanda’s transition to a green economy.

The recognition allows BRD to access concessional funding at scale, further strengthening Ireme Invest—Rwanda’s flagship climate finance initiative—across the financial sector. By doing so, BRD aims to accelerate sustainable investments and integrate climate considerations into financial portfolios.

Expressing her enthusiasm, BRD Chief Executive Officer, Ms. Kampeta Sayinzoga, highlighted the significance of this development, explaining how it positions BRD to further its green finance initiatives:

“This accreditation is a testament to the rigorous efforts BRD has undertaken to champion green finance in Rwanda. It reinforces our position as a key enabler of climate action, allowing us to mobilize concessional resources to green the financial sector. With the support of the Green Climate Fund, we are now better positioned to scale up Ireme Invest and strengthen Rwanda’s climate resilience through sustainable investments.”

The accreditation also reinforces BRD’s commitment to fostering partnerships that drive climate finance. By working closely with stakeholders in both the public and private sectors, the bank aims to implement climate-smart projects that contribute to Rwanda’s ambitious sustainability goals.

BRD now joins an elite group of African financial institutions accredited by the GCF, including the Development Bank of Southern Africa, the Development Bank of Nigeria, and the Development Bank of Zambia.

Other accredited institutions on the continent include, among others, the African Development Bank, the Eastern and Southern African Trade and Development Bank, Africa Finance Cooperation, Banque Ouest Africane De Development (BOAD), ECOWAS Bank
for Investment and Development, Fonds d’Intervention pour I’Environnement (FIE), KCB Bank Kenya Limited and Ecobank Ghana.

As Rwanda’s sole development finance institution, BRD has played a critical role in driving the country’s economic transformation since its establishment in 1967. With a strong focus on infrastructure, agriculture, affordable housing, green finance, and exports, BRD continues to position itself at the forefront of sustainable development financing.

This accreditation is expected to strengthen Rwanda’s financial ecosystem by ensuring that institutions are better equipped to support climate adaptation and mitigation initiatives. It also aligns with Rwanda’s Nationally Determined Contributions (NDCs) and Vision 2050, reinforcing the country’s commitment to climate resilience and low-carbon growth.

The Green Climate Fund, the world’s largest dedicated climate fund, was established under the UNFCCC to support developing nations in tackling climate change. By providing financial resources for climate adaptation and mitigation projects, the GCF helps mobilize funding for transformative climate action worldwide.

The announcement was made by BNR Governor and Chairperson of the Monetary Policy Committee (MPC), John Rwangombwa, during a press conference in Kigali on Thursday.

The decision follows the MPC’s meeting on February 12, 2025, where members assessed the impact of previous monetary policy decisions, evaluated recent global and domestic economic developments, and reviewed economic projections for the next three months.

The 6.5 percent lending rate was first introduced in August 2024 after being reduced from 7.0 percent and was subsequently maintained during the November 2024 meeting.

Governor Rwangombwa said headline inflation remained within the target range of 2 to 8 percent in the fourth quarter of 2024, despite some upward pressures in food and core inflation.

The MPC projects inflation will average 6.5 percent in 2025 before declining to approximately 4.1 percent in 2026. However, risks such as geopolitical tensions and adverse weather conditions affecting food prices could exert upward inflationary pressures.

“The Monetary Policy Committee has decided to maintain the central bank rate at 6.5 percent, a level considered adequate to keep inflation within the target range, with forecasts averaging around 6.5 percent in 2025 and 4.1 percent in 2026,” Rwangombwa announced, adding that the MPC will continue monitoring global and domestic economic developments and stands ready to take appropriate action to ensure price stability.

In the fourth quarter of 2024, headline inflation rose to 5.2 percent, up from 4.1 percent in the previous quarter. This increase was driven by higher core and fresh food inflation, which offset a decline in energy inflation.

Core inflation rose slightly from 5.3 percent to 5.4 percent, primarily due to rising costs in housing materials and services, as well as increased input costs for alcoholic beverages.

Fresh food inflation surged from 0.2 percent to 5.6 percent due to base effects from the previous year’s sharp vegetable price decline. Meanwhile, energy inflation declined due to lower liquid and solid fuel prices.

For the full year 2024, headline inflation averaged 4.8 percent, significantly down from 14 percent in 2023. This disinflation was largely attributed to improved agricultural production, the lagged effects of prior monetary policy tightening, and government-led measures to curb inflation.

Rwanda’s economy demonstrated strong growth in 2024, with real GDP expanding by an average of 9.2 percent in the first three quarters, following 8.2 percent growth in both 2022 and 2023. The growth was broad-based, with industry and services sectors registering double-digit expansion, while agriculture rebounded from previous poor harvests.

“High-frequency indicators show continued growth momentum in the last quarter of 2024, primarily driven by strong activity in the industry and services sectors. The Composite Index of Economic Activity (CIEA) rose by 15.7 percent year-on-year in the fourth quarter of 2024, indicating that the economic growth for the year 2024 will likely exceed the projection of 8.3 percent,” the governor revealed.

Rwanda’s merchandise trade deficit improved in the fourth quarter of 2024, supported by a 15.8 percent growth in exports, driven by stable commodity prices and strong regional demand for manufactured goods and re-exports.

Meanwhile, imports recorded a modest 3.3 percent increase, reflecting strong domestic demand for raw materials and energy products. Consequently, the trade deficit narrowed by 3.7 percent in the last quarter of 2024.

The pressures on Rwanda’s foreign exchange market eased in 2024 compared to the previous year. By December 2024, the Rwandan Franc had depreciated by 9.42 percent against the US dollar, a significant improvement from the 18.05 percent depreciation recorded in 2023.

Additionally, Rwanda’s gross official reserves stood at 5.4 months of import cover, well above the 4-month benchmark.

Money market interest rates reflected the central bank’s monetary stance, with the interbank rate averaging 6.78 percent in the fourth quarter of 2024, down from 8.25 percent in the same period the previous year.

This decline was attributed to the 100-basis point CBR reduction in May and August 2024, as well as ample liquidity in the banking system.

While short-term lending rates declined, the overall lending rate increased slightly by 7 basis points to 15.85 percent, mainly due to a higher proportion of individual loans, which typically carry higher interest rates.

The deposit rate also rose by 45 basis points to 10.5 percent in the fourth quarter of 2024, reflecting an increased share of long-term deposits.

Facilitated by Rwanda’s Private Sector Federation (PSF), the visit seeks to explore potential areas of collaboration between the two nations.

During their stay, the Saudi delegation will hold meetings with senior government officials and representatives from Rwanda’s private sector.

“The visit also aims to increase trade between Saudi Arabia and Rwanda, highlighting the existence of numerous investment opportunities that will be unveiled,” PSF said in a statement on Wednesday.

The delegation’s visit signals growing interest from Saudi investors in Rwanda’s rapidly expanding economy and business-friendly environment.

Rwanda continues to position itself as a prime investment destination, with strategic policies designed to attract foreign direct investment and drive sustainable economic growth.

Rwanda and the Kingdom of Saudi Arabia have maintained strong cooperation in health, education, energy, and infrastructure development. Additional opportunities for collaboration exist in technology, finance, tourism, trade, and investment.

Irembo, a leading digital services provider in Rwanda, termed the strategic partnership a significant milestone in the country’s ongoing digital transformation.

By making the RW country domain more accessible, this collaboration aims to simplify the process of domain registration, providing a seamless experience for both individuals and businesses seeking to establish a digital presence in Rwanda and beyond. RW domain registration is now available alongside other services provided on the IremboGov platform.

Through this integration, clients can now purchase RW domains directly on the IremboGov platform, aligning with Rwanda’s vision of building a modern digital ecosystem.

The addition of RW domain services enhances IremboGov’s comprehensive suite of digital services, empowering Rwandans and international investors with an easy-to-use, centralized platform to access essential online services.

“Users can now register their RW domains with just a few clicks,” Irembo said in a statement.

RICTA is a non-profit organization with a mandate to manage Rwanda’s RW country code top-level domain (ccTLD).

The new partnership is part of RICTA’s broader effort to promote the adoption of the RW domain, which is essential for establishing trust and authenticity in the digital space.

The RW domain serves as a symbol of Rwanda’s national identity, offering businesses, startups, and individuals a unique opportunity to strengthen their digital presence while supporting the country’s efforts to foster a thriving digital economy.

The collaboration with Irembo is expected to increase the visibility and adoption of the RW domain, making it the domain of choice within and beyond Rwanda.

RICTA has affirmed its commitment to ensuring the growth of Rwanda’s internet ecosystem. The integration with IremboGov is a significant step toward achieving this goal.

The decision, which is expected to drive up costs for import-dependent industries, has already drawn sharp criticism from major trading partners, including Canada, as well as from domestic businesses.

Trump has long championed protectionist economic policies. He framed the tariffs as a step toward reviving American manufacturing.

“This is a big deal—the beginning of making America rich again,” he declared. “Our nation requires steel and aluminium to be made in America, not in foreign lands.”

Despite concerns about rising consumer prices, Trump insisted that, in the long run, the move would be cost-effective. He hinted at further trade measures, suggesting future tariffs could target pharmaceuticals and semiconductor imports.

The US, the world’s largest steel importer, relies heavily on suppliers from Canada, Brazil, and Mexico. Canada, which provided over 50% of US aluminium imports last year, is expected to be the hardest hit by the new tariffs.

Canadian officials reacted with outrage, with Minister of Innovation Francois-Phillippe Champagne calling the decision “totally unjustified.”

“Canadian steel and aluminium support key US industries from defence to automotive,” Champagne stated. “This policy undermines North American competitiveness and security.”

Ontario Premier Doug Ford accused Trump of destabilizing economic relations, warning that shifting trade policies put jobs at risk.

Meanwhile, industry lobbyists in Canada urged immediate retaliation, with lawmakers exploring ways to reduce dependence on the US market.

The tariffs prompted a surge in US steelmaker stock prices, with Cleveland-Cliffs gaining nearly 20%. However, broader market reactions remained subdued, as investors speculated whether Trump might later soften his stance or introduce exemptions.

Economic analysts likened the move to Trump’s 2018 tariff campaign, which initially imposed levies on steel and aluminium but later carved out exceptions for countries like Canada, Mexico, and Australia.

Dartmouth College economist Douglas Irwin suggested the latest announcement could be a bargaining tactic rather than a firm policy shift.

“The biggest question is whether Trump is using this as leverage or truly committing to long-term protectionism.”

Trump’s track record includes a history of abrupt trade policy shifts. Just last week, he announced a 25% duty on Canadian and Mexican imports before postponing enforcement by 30 days. He also introduced a 10% tariff on Chinese goods, prompting retaliatory measures from Beijing.

Critics warn the tariffs will inflate costs for US industries reliant on imported metals, affecting sectors from construction to consumer goods. The US International Trade Commission previously estimated that similar tariffs raised domestic steel and aluminium prices by 2.4% and 1.6%, respectively.

White House officials defended the policy as a measure to curb unfair competition, particularly from China and Russia.

The administration introduced stricter regulations requiring steel to be “melted and poured” and aluminium to be “smelted and cast” in North America, aiming to prevent foreign suppliers from bypassing tariffs through third-party nations.

Nick Iacovella, spokesperson for the pro-tariff Coalition for a Prosperous America, emphasized concerns over a surge in steel imports from Mexico.

“There are still imbalances in US-Canada trade that need addressing,” he said, adding that Trump’s approach signals a broader effort to rebalance North American trade relations.

The sharpest increases were observed in transport costs, which surged by 18.5% year-on-year, and in restaurant and hotel prices, which rose by 9.5%. Food and non-alcoholic beverages also saw a significant annual price hike of 7.2%, while education costs went up by 8.4%.

The overall CPI for Rwanda, which includes both urban and rural areas, registered an annual increase of 5.7% but declined by 1.6% on a monthly basis. Rural inflation remained lower than urban inflation, rising by 4.5% year-on-year but dropping by 2.9% from December 2024.

The core inflation rate, which excludes fresh food and energy, increased by 6.2% compared to January 2024, reflecting the persistence of underlying price pressures.

Rwanda’s inflation trends have fluctuated in recent months, with rising costs in key sectors such as transport, hospitality, and essential goods affecting household budgets. The annual average inflation rate between January 2024 and January 2025 stood at 5%.

The NISR compiles the CPI based on data from 12 urban centres across the country, tracking price movements in a basket of 1,622 products.

“Weights used for the index are from the Household Living Conditions Survey (EICV4) results conducted in 2013-2014 with a sample of 14,419 households,” the report reads.

The index serves as a key indicator for policymakers and the central bank in managing inflationary pressures and economic stability.

This was due to registered businesses that never operated or ceased operations for various reasons. The closure of these accounts led to a reduction of nearly 100,000 small taxable businesses.

Jean Paulin Uwitonze, the Deputy Commissioner for Taxpayer Services and Communications at RRA, told the national broadcaster (RBA) that the decrease resulted from technological reforms that enabled the identification of registered businesses and taxpayers that were not actually operational.

“With the adoption of digital systems, RRA was able to access information that was previously unavailable, allowing us to make informed decisions. For instance, some young graduates eager to become entrepreneurs would register businesses and receive TINs, but later, many found formal employment, leaving their TINs unused with no tax payments, no imported goods, and no business transactions within the country,” he explained.

Previously, RRA’s digital system imposed penalties on these inactive accounts as non-compliant taxpayers. However, after thorough investigations confirmed that these businesses never operated, the authority opted to close the TINs instead.

Additionally, some TINs were either closed or suspended due to businesses that had been active but later ceased operations.

“There were TINs that were once used for tax payments but later became dormant. After a period of inactivity with no indication of ongoing business operations, some owners even approached us to explain that they had secured employment and stopped running their businesses. Should we continue treating them as taxable businesses? In such cases, we closed or suspended their TINs,” Uwitonze added.

He emphasized that this move was aimed at ensuring that only those required to pay taxes are taxed, clarifying that it does not indicate a decline in the number of taxpayers.

The decision also relieved individuals who had inactive TINs from penalties for non-compliance, despite no longer engaging in business.

In the past fiscal year, RRA closed over 40,000 tax accounts and suspended more than 130,000 others. As a result, the number of taxable small businesses dropped from 465,378 to 382,318, while the number of taxable medium-sized businesses declined from 842 to 786.