IGIHE

Category: Opinion

  • RwandAir to use Revera passenger revenue accounting solution

    The
    solution will be deployed as a hosted model, giving the airline better control
    on costs and access to best practice data centre capabilities.

     Kale
    Consultants Ltd., the leading solutions provider to the global airline and
    travel industry, announced that RwandAir has selected Kale’s passenger
    revenue accounting solution REVERA for its PRA operations. The solution will be
    deployed as a hosted model, giving the airline better control on costs and
    access to best practice data center capabilities.

    Today,
    the global airline industry is facing various challenges such as volatile
    market conditions, price sensitivity and low margins. In such a scenario,
    airlines need to adopt technology driven business processes to deter the
    growing industry challenges, optimize revenues and remain competitive. Kale’s
    passenger revenue accounting solution – REVERA, helps airlines implement best
    industry practices to proactively adapt to the changing market conditions. It
    enables airlines to deal with the most complex revenue accounting environments
    and respond to the demands of internal customers, with speed and accuracy.

    Speaking
    on the occasion, John Mirenge, CEO, RwandAir said, “RwandAir is on a growth
    path and we are steadily building our plans for the future. In this scenario,
    revenue accounting plays a critical role, from early recognition of revenue to
    feeding timely information to other systems internally. Kale’s REVERA is a
    globally recognized solution – and being able to access it as a hosted platform
    gives us best practice capabilities while reducing significant investments in
    hardware and maintenance costs. We look forward to a long and fruitful
    partnership with Kale.”

    “We are
    pleased that RwandAir has opted for REVERA, to execute their passenger revenue
    accounting requirements. We are confident that REVERA’s industry leading
    capabilities will bring immense value to RwandAir’s growth plans. REVERA has
    proven to be one of the best PRA solutions and we are positive of exceeding the
    expectations of all our customers.” said Ravi Chakravarty, Sales Head –
    EMEA & Asia Pacific, Kale Consultants Ltd.

    REVERA,
    Kale’s new generation passenger revenue accounting solution, helps airlines
    implement industry best practices to proactively adapt to dynamic market
    conditions. It enables airlines to deal with the most complex revenue
    accounting environments and respond to the demands of the senior management
    with speed and accuracy. With its powerful Business Intelligence capabilities
    and end-to-end functionality, REVERA delivers real business value to airlines.
    It transforms the revenue accounting function from a transaction-processing
    environment to a strategic tool, thus empowering airlines to devise competitive
    strategies to succeed in the marketplace.

    The
    components of REVERA are functionally capable of working either in a
    stand-alone mode or can be integrated with other systems used by an airline. It
    can be flexibly deployed in a Hosted, Licensed or Outsourced environment.
    REVERA is powered by the industry leading proration engine APEX.

  • MINICOM launches Rwanda’s first Economic and Trade Atlas

    The ministry of Trade and Industry yesterday launched a distinctive economic and trade atlas. The Atlas that was published by German Development cooperation in partnership with the government.

    During the launch, the Minister of Trade and Industry, Francois Kanimba, pointed out that the new Economic and Trade Atlas is a fundamental tool that will facilitate both foreign and local investors. Present during the launch was MINICOM P.S. Emmanuel Hategeka and Dr. Fand Hegazy, an expert from the German Development Cooperation .

     “It’s an extremely useful book containing information about the economy of the country, it will provide detailed information and guide especially those looking for investment opportunities in the country,” Kanimba said.

    “We shall distribute copies to different government institutions and to our embassies for the world to read and understand the picture of our economy. ” “It is a unique document with a mapping of economic activities with useful information for those interested in the Rwandan economy say Minister Francois Kanimba.

    The project took one and a half years to complete.

    The Atlas is made up of a wide-ranging compilation of information on sectors in the Rwandan Economy and its performances in those departments. The document acts as a powerful tool of reference for investors or anybody interested in economic activities in Rwanda.

    It is based on an official secondary validated source of information represented in a visual and graphical way through the use of cutting edge methods such as Geographical information systems (GIS). GIS is used to capture and present data linked to a geographical location.

    The Atlas consists of 110 pages and 77 chapters and contains comprehensive, relevant and up to date information covering all sectors of the economy presented in a visual way.

    Fand Hegazy elaborates. “It profoundly covers areas within the economy such as demographics, foreign trade, agriculture, investment, regional integration, communication, tourism, energy and even areas less related to economy but which have a certain impact such as health.” It is so rich that it contains information that goes beyond the scope of economics covering other sectors such as health and education.

    The atlas was produced with the aim of putting together an atlas that provides and visualises information about the contemporary Rwanda.

    The book has been designed as a tool for anybody within the business community such as investors and the general public. The atlas will be available for sale at Ikirezi bookstore.

    Information is key in carrying out any economic activity. The Atlas facilitates the process of obtaining data thus contributing to a more efficient way of carrying out economic activities. 

  • Finance minister rebuffs PSF’s budget position paper

    Finance minister, John Rwangombwa has stated that the Private Sector Federation’s budget position paper does not incorporate all views of stakeholders in the private sector.

    The Minister urged PSF to always make consultations to ensure that all stakeholders are involved in the drafting process.

    “We don’t see this position paper representative of the private sector ; we want to see it more representative next time,” he said, adding that he was dismayed by the presentation which lacks most critical views of the entire sector. Last week PSF, the umbrella organ of the business community, presented a paper to the Ministry of Finance, among other things, pushing for excise duty cut on beers that use local raw materials by 40 percentage points to 20 percent from 60 percent.

    “This is an incentive for breweries to promote utilisation of local raw materials and avoid spending the huge amount of money allocated to these imports made outside Rwanda.

    This will encourage the Rwandan beer industry to develop a supply chain based on locally produced raw materials,” the PSF Chairman, Robert Bayigamba said.

    The chairman had also stressed that issues of delay in refunding VAT, unfair charge of VAT on insurance premiums were also chocking the private sector.

    Rwangombwa added that the government is heavily investing in agriculture to woe the financial sector to provide credit to farmers
    as a way of minimising the risks of credit extension to the sector.

    The minister further noted that the sector is still facing challenges of energy and the government has plans to encourage local investors into energy investment.

    “I know you still have big challenges in the energy. We want to encourage the private sector to invest in energy to help us resolve the problem of lack of energy to drive our economy.”

    The government is currently investing in methane gas extraction, training of hydro power engineers to boost mini hydro power projects,and is currently looking into manufacturing of its own hydro turbines to increase national power grid.

    While VAT on petroleum product has been exempted, PSF is pushing for a zero rated tax.

    “VAT paid on other expenses related to the petroleum sector such as maintenance of stations, building of new stations, telephone can’t be claimed at RRA and collected back.

    This has resulted in extra expenses and an erosion of cash flow while the pump prices are regulated by the Government,” the Chairman said.

    He also highlighted the delay in payment by public institutions, Infrastructure, Import (customs) duties on transport buses and
    exemption of importation of right hand vehicles as some of the issues that should be looked into in this financial year’s budget.

  • Fina Bank urges traders to access loans

    The business community in Rubavu and Rutsiro districts have been urged to acquire loans to expand their businesses.

    The call from FINA Bank, Rwanda’s leading SME bank comes amid government’s initiatives to strengthen the private sector especially the small scale and medium enterprises.

     Jean Philippe Manzi Gakuba, Fina bank’s Rubavu Branch Manager, said that the business community in the two districts should to take advantage of the available liquidity in the bank to access credit for their businesses.

    The bank made the call, yesterday, in Rubavu District during a one day seminar to avail their new plans and consult with clients in regard to its products.

    “We assure them (business people) of enough liquidity in the bank which they should take advantage”, he said, adding that many people were adamant to access credit from the banks after the global financial crisis.

    With the current rise in inflation and increase in commodity prices, the bank is optimistic that its current 17.5 percent interest would remain unaltered to help businesses access loans easily.

    The manager who was speaking during a one-week seminar, urged people with businesses to come up with business plans and forward them to the bank which would help to collect where necessary and acquire loans.

    “This year we are targeting to give out Rwf2 billion in loans to small and medium enterprises,” he said. He added that in the first half of last year, no loans were given out while only a few were lent in the second half.

  • Tigo Rwanda launches mobile money payment service

    Tigo Rwanda, a telecom brand owned by Millicom Cellular International (MIC), recently inaugurated its mobile money services in Rwanda, targeted at subscribers with limited or no access to banking services.

    Tigo Rwanda is the second mobile company to launch such a service after its major competitor MTN Rwanda launched its mobile money product last year.

    Tigo has similar services in Ghana and Tanzania.

    Rwanda’s rural areas have limited access to financial services, with the central bank saying only 1.7 million deposit accounts had been registered by December 2010 out of a population of 9 million.

    With about 3.3 million mobile subscribers shared between MTN and Tigo as of January this year, Rwandan mobile users can utilise the technology to deposit and withdraw money and can pay electricity bills and school fees via text messages.

    “Tigo Cash is basically a wallet on your mobile phone. You don’t have to have a bank account,” said Tom Gutjahr, Tigo Rwanda’s chief executive. To sign up for the service is free but one has to be above 18 years and a Tigo subscriber with a valid identity card.

    Non Tigo subscribers will not be able to register for the service but can receive cash on their network from a Tigo Cash registered peson in any part of the country any time any day.

    “If you are not a “Tigo Cash” user, you will still be able to receive money from other Tigo Cash users,” the CEO said.

    Licensed to operate in Rwanda two years ago, MCL said Tigo Cash can send between $1 and $550.

    John Sebabi, head of payment systems at Rwanda’s central bank, said the new service would deepen financial services.

    “If the number of mobile phone exceeds that of bank accounts, then access to financial services is growing which is line with our objectives of increasing access to such services,” he said.

    The Product Manager, Tongai Maramba announced that Banque Commerciale du Rwanda (BCR) would be the host of the Tigo Cash trust account.

     

  • Actis Weighs Sale of BCR

    Actis LLP, a London-based private- equity firm investing in Africa, Asia and Latin America, may sell its Rwandan bank to Kenyan lenders.

    Banque Commerciale du Rwanda, based in Kigali, the capital, is “a natural acquisition for one of the bigger East African banks wanting to expand their footprint,” Peter Schmid, Actis’s head of Africa, said in a May 12 interview at the firm’s London office. “That’s a probable exit scenario. ”

    Actis, which has $4.6 billion under management, bought an 80 percent stake of BCR in 2004 in a deal valuing the company at $6 million. The Rwandan government kept the rest of the previously state-owned bank. Kenyan lenders including Equity Bank Ltd. (EQBNK) and Kenya Commercial Bank Ltd. (KNCB) are expanding across East Africa, opening branches in Rwanda, Tanzania, Uganda and southern Sudan, as the region’s economies grow.

    The Rwandan investment was Actis’s first in the country. Gross domestic product has expanded an average 7.5 percent annually from 2004 and 2009, according to the World Bank. About 30 percent of Actis’s capital is invested in Africa, Schmid said.

    The Rwandan Stock Exchange “is a bit small for now” to list for an investment exit, Schmid said.

    Rwanda held its first initial public offering in November when the state sold 25 percent of Brassieries et Lemonaderies du Rwanda SA, a unit of Heineken NV (HEIA), the world’s third-biggest brewer. The stock is the only company listed on the Rwandan Stock Exchange, which started trading on Jan. 31. Kenya Commercial Bank and Nairobi-based Nation Media Group Ltd., East Africa’s biggest media company, are listed on an over-the- counter exchange.

    BRC increased profit almost four-fold in the nine months through September on reduced costs and higher revenue, Managing Director Sanjeev Anand said in December. Net income climbed to 1.7 billion Rwandan francs ($2.8 million) from 433 million francs a year earlier as sales rose 12 percent to 8.5 billion francs, he said. The bank expects full-year net income of 2.2 billion francs, Anand said.

    In 2004, Actis was spun out of CDC Group Plc, a U.K. government-owned investor in developing markets that was originally started 60 years ago as the Colonial Development Corp., to raise money from government, insurers and pension funds to invest in African and Asian companies.

  • Indian firm to invest US$1b in Rwandan Gold, Diamonds

    Rajesh Exports Ltd., India’s largest jewelry maker and exporter, said it may invest as much as $1 billion in Rwanda over the next five years developing the country’s gold industry and building a diamond-trading business.

    The company, based in Bangalore, India, is in talks with Rwanda’s government about proposals that include establishing a gold refinery within six months, Ravi Chandra, the company’s chief executive officer for mining, said in an interview in Kigali.

    Most of the gold mined in Africa is currently exported to South Africa or Europe for processing, Chandra said. Rajesh Exports is seeking to make Rwanda a continental hub for gold processing over the next three to five years.

    “Our aim is to try to bring the gold from most of Africa to Rwanda,” Chandra said.

     Rajesh has begun exploring a 2,000 square-kilometre gold concession in Rwanda that it wants to increase to 15,000 square kilometres, Chandra said. Eventually the company plans to export products including jewelry and coins. It also intends to set up a diamond business that may involve importing and exporting the gems as well as cutting and polishing, he said, without providing further details.

    Talks between the company and the Rwandan government are “still very exploratory” and may take six months to complete, Clare Akamanzi, chief operating officer of the Rwanda Development Board, said in an interview. The projects envisaged by the company may cost $500 million to $1 billion, she said.

    Rajesh Exports is also working with the Rwandan government to establish a legal way to import gold from neighbouring Democratic Republic of Congo. In March, Rwanda banned the purchase of so-called conflict minerals including gold, tungsten, coltan and tin from Congo after the U.S. passed a law aimed at halting the trade.

    The Dodd-Frank law will require American companies to report any purchases of gold, tin, tungsten and tantalum that might have come from conflict zones in Congo, according to a draft of the regulations on the U.S. Securities and Exchange Commission’s website. Fighting has raged in eastern Congo for more than 15 years and armed groups often support themselves by taxing or trading in minerals.

    “We are hopeful to find a legal solution,” Chandra said.

  • Swiss firm advances Rwf 591 million to Urwego Opportunity bank

    responsAbility Social Investments AG, an investment company based in Switzerland recently made local-currency loans totalling the equivalent of USD 2 million to microfinance institutions (MFIs) Middle East Micro Credit Company (MEMCC) of Jordan and Urwego Opportunity Bank (UOB) of Rwanda.

    rAMLF invested approximately RWF 591 million (USD 999,000) in UOB. Created as a result of a merger between Urwego Community Banking
    and Opportunity International Bank of Rwanda, UOB is a microfinance institution
    headquartered in Kigali, Rwanda. Its services include loan and savings
    products, business training, HIV/AIDS training and insurance coverage. UOB’s
    shareholders include nonprofit organizations Hope International, Opportunity
    International, World Relief and World Relief Canada. In 2009, UOB reported to
    US-based, nonprofit Microfinance Information Exchange (MIX) total assets of USD
    10.8 million, a gross loan portfolio of USD 6.4 million, return on assets (ROA)
    of -6.57 percent, return on equity (ROE) of -16.5 percent and 33,900 borrowers.

    Founded in 2003, responsAbility Social Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and markets in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. According to calculations based on data from the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.

    The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. rAMLF reported to the US-based, nonprofit Microfinance Information Exchange (MIX) that it had USD 160 million in fund assets as of 2010. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMFL’s label in March 2011.

     

  • Firm announces initial gold drill project results

    A gold mining firm, Simba Gold Corp, has announced initial drill results from the Miyove gold project, which is owned by Rogi Mining Limited, that the Company has an option to acquire. The Miyove gold project is located in northern Rwanda and comprises 2,937 hectares over the largest historic gold-producing areas in Rwanda.

     Highlights of the drill program to date include 24.69 metres averaging 0.61 grams per tonne (g/t) gold, including 7.54 metres grading 1.12 g/t gold in hole MY-11-02 and 1.21 g/t gold over 5.58 metres, including 2.15 g/t gold over 2.57 metres in hole MY-11-05.

     In March 2010, the Company completed its Qualifying Transaction granting it the right to purchase up to 100% of the issued and outstanding shares of Rogi in exchange for a total of up to US$2.75-million in cash and the issuance of up to 5.7 million shares to Rogi’s shareholders over a period of five years. Rogi mobilized a 3,000-metre drill program on the Miyove gold project in December 2010 and drilling commenced early in January 2011.

    The Miyove gold project comprises three mineralised corridors, Karenda, Baradega and Masogwe all of which lie along a northwest – southeast mineralized trend over a six kilometre stretch. Drilling to date has focused on the Karenda zone, an area of historic production, and in particular on gold mineralization beneath previous trenches (2006-2009), gold mineralization based on an approximation of the 1980s United Nation drilling and on geological targets. To date, 1,279 metres have been completed in ten holes, from five drill sites. Drilling has been difficult on the Karenda Zone due to strongly oxidised and weathered rock conditions, complications with old workings and limitations of the drill equipment. The Company has received assay results for holes 1, 2, and 4 and partial results for holes 3 and 5.

    The Miyove gold project is underlain by rocks of the central African Mesoproterozoic-aged Kibara orogen that extend from Katanga (Democratic Republic of Congo) in the south, to southern Uganda in the north. The Kibaran geology on the property consists of shale, siltstone, sandstone and rare conglomerate units. Mineralization is associated with multiple northwest-southeast-trending gold-bearing quartz veins and stockworks, and associated wall rock alteration comprising kaolinization and iron oxidation.

    Rogi is well established in Rwanda, and complemented by contract personnel who have experience and knowledge in the country and the ability to conduct efficient and effective exploration programs. Samples were sawn and collected from the diamond drill holes and delivered by the Company to SGS Minerals Services, Mwanza, Tanzania. SGS undertook sample preparation and analysis for gold by fire assay with an atomic absorption finish on 30-gram samples. To date only gold assays have been received, however multi-element analysis will follow shortly.

    Simba is an African-focused gold exploration company with an option to acquire a company that owns gold exploration rights within the Gicumbi, Burera, Rusizi and Nyamasheke Districts, and nickel exploration rights within the Kirehe District of the Republic of Rwanda. Simba’s principal property is the Miyove Gold Project located in the Gicumbi and Burera Districts.

     

  • Young female entrepreneur shares her experience in male dominated ICT field

    As the country gears for a technological take off, young entrepreneurial Rwandans are seeking the emerging opportunities that go with this. One of this budding entrepreneurs is Akaliza Gara who has successfully launched her ICT business aptly named, ‘Shaking Sun’. According to Gara, the young company’s aim is to help businesses and individuals realise their ambitions through the use of innovative technology and modern expertise. They also seek to actively ’think outside the box ’and design and implement creative and practical uses of the technology available today. ’Shaking Sun’ offers, discounted or pro bono services to, nonprofit and charity organisations. In a recent interview with IGIHE.com’s Fiona Gasana, Miss Gara narrates the opportunities and challenges of the business recently held an exclusive interview with Miss Gara on how her firm is coping in the gung ho ICT business…….or not so much so. Below are the excerpts.

     IGIHE.com : Is there any particular reason you called your business, ‘Shaking Sun’ ? 

    Gara : It was to get people thinking – to make them curious about what the business is about.

     What made you decide to take the leap and start your own business ?

    I had so many ideas and in Rwanda entrepreneurship is really encouraged and supported by the government – especially in the field of ICT.

     How were you able to decide that now you are ready and it is the right time for you ? 

    I had been working as a consultant for some time, but there was so much demand I decided it was time to form a team.

     Has it always been an ambition of yours ? 

    Not really – I actually wanted to be an artist – more specifically a ,children’s book illustrator when I was young.

     Why in the ICT field ? 

    There are so many opportunities in ICT – and technology is racing ahead so you always trying to keep up. It’s a great challenge.

     Isn’t there much competition ?

    Not as much as there could be – I think many people haven’t realized what a gold mine this is.

     What makes your business different to others in the same field ?

    With websites, we always offer training – we try to get our clients to feel a real sense of ownership about their product so we teach them how to use it and maintain it.

     Do you have specific groups of people you target ? 

    No ! We hope there’s something for everyone.

     Who inspired you to actually venture in this domain ? 

    Companies like Pixar and Virgin.

     Was it easy ? 

    Sometimes it’s really difficult – but I like being my own boss !

     How did you go about getting started ?

    I created a business plan several years ago and started calculating how much it would cost to set up and do business for one year. Then I started saving up and when I reached a certain point I registered and go started !

     What do you hope to achieve from your business ? 

    The vision for our business is to be a symbol for positive change to millions.

     How do you think you could help or encourage other hopeful young entrepreneurs ? 

    For people like me – young and single – I think this is a great time to take a leap. Once you get to a point where you have a family to take care of, it will become a much bigger risk. Take advantage of the unique place you are in right now.

     Are you excited about your business ? I’m really excited !

     Rwanda is fast becoming a country that is encouraging young entrepreneurs in all types of businesses eager to move forward. That’s true.

     With you as a perfect example, what kind of advice can you share with others to encourage them to go for their own ventures ? 

    One – do the research first. Two – Make sure its something that you are passionate about. Three – Set achievable goals. Doing these three things can help see you through the really discouraging times.

     Does you being female in a mostly male dominated domain make it any harder ?

    Not really ! I think it makes you stand out, which is a good thing.

     Did you have any difficulty putting together a team ? 

    Well, I’d never done it before so I was nervous about making mistakes – especially conducting interviews ; I wanted to make sure I asked the right questions.

     How did you go about it ? 

    For the website developers I took on interns for a three week program. It gave me time to see them work and to find out what kind of personalities they have. Then I selected the best from that group.

     Did you advertise for the positions needed ? 

    Yes, on the website and on the Facebook business’ page.

     What advice can you give other hopeful young women who are interested in becoming entrepreneurs ? 

    Do what you love ! It needs to be something you’re willing to fight for.

    What would you say was a major hurdle in getting started ? 

    Learning how to handle clients who don’t pay on time – that’s still a challenge !

     Any surprises you were not expecting ?

    I was pleasantly surprised by the amount of support I’ve been offered from various sources.

     Any anxieties you have ? 

    That I’ll burn out ! It’s been many long hours and working weekends.

     Do you have a time frame in which to attain certain set targets ? 

    Yes, I have so many goals – but I’ll tell you more in a few months time – I can’t give away everything just yet !