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  • Bank of Kigali might be cross-listed in Nairobi’s capital market

    The Nairobi Stock Exchange (NSE) is set to see the first ever cross-listing of a company from a neighbouring country, opening a new investment opportunity for investors keen on diversifying their portfolio beyond Kenya’s economy.

    The intended cross-listing of “at least two companies” from neighbouring countries is still at the discussion stage, but the NSE said at least one of the firms is expected to start trading before the end of this year.

    Mr Donald Ouma, the head of product development and research at the NSE, said the new stock is expected to be listed by way of an initial public offering (IPO).

    He, however, declined to reveal the identity of the firms citing client confidentiality, but said more details will be made public before the end of next month.

    “We have held discussions about a yet-to-be listed stock from the region, the company to be cross-listed would be by way of an initial public offer,” said Mr Ouma.

    Rwanda’s biggest State-owned lender Bank de Kigali’s is expected to be sold to the public later this year in an IPO, making it a prime candidate for the intended cross-listing.

    At least seven Kenyan companies are cross-listed in Uganda, Tanzania and Rwanda stock exchanges, but no company from the region has listed its shares at the Nairobi bourse.

    The cross-listed companies include Kenya Airways, KCB, Nation Media Group, Centum, Diamond Trust Bank, Jubilee Holdings and Equity Bank.

    Regional markets

    Safaricom, Stanbic Bank Uganda and Rwandese beer maker Bralirwa have floated cross-border IPOs, giving local investors a chance to diversify their investments even though they their exposure to neighbouring countries remains small mainly because the other regional capital markets are still at their infancy.

    In Rwanda for instance, the Kigali Stock Exchange was launched in January this year.

    It has only three listed companies, Bralirwa — the country’s biggest beer and soft drinks maker, Nation Media Group and KCB.

    The expected cross-listing will take the tally of listed firms at the NSE to 56 with at least five other local firms, among them British-American Investments Company and TransCentury expected to list at the bourse before the end of the year.

    In an interview last week, chairman of Dyer and Blair Investment Bank, Mr Jimnah Mbaru, predicted that the company most likely to be cross-listed at the local bourse would be Bank de Kigali, which is expected to sell 25 per cent of its shares to the public to raise additional capital to fund growth.

    “The only offering I expect to go public and cross-list at the NSE would be the Bank de Kigali,” said Mr Mbaru, whose firm was a joint transaction adviser in the listing of Bralirwa.

    He is betting on the capital requirements by both governments and corporations across the entire region to encourage fundraising activities beyond their jurisdictions- a key factor informing the ongoing push for the integrating of the regional capital markets.

    Mr Ouma added that the NSE was working with the other stock exchanges to introduce a trading platform that would integrate their operations aimed at minimising price differentials in the specific markets for cross-listed shares.

  • Lake Kivu: Potential for energy or cataclysmic disaster for ages

    Imagine wandering into a village and everything motionless. Just a mound of lifeless bodies lying around, leaving you horrified. Such a terrible scene would qualify for horror movie but this is exactly what happened in the villages around Lake Nyos in Cameroon in 1986, where more than 1,700 people instantly died from asphyxiation after inhaling huge quantities of carbon dioxide emitted from the lake.

     Such terrible natural disasters are rare that only two have ever been recorded, once in 1984 from Lake Monoun and the other in Lake Nyos but now an even greater danger lies dormant. Lake Kivu, which is much bigger and shared by Rwanda and the Democratic Republic of Congo, and situated in a more densely populated region could potentially be the source of a devastating calamity.

    Lake Kivu is among three of rare water bodies in the world known as limnic lakes . Lakes such as these have the property of erupting massive amounts of carbon dioxide, a phenomenon known as a lake overturn. An event that could be triggered by various catalysts such as an eruption, or earthquake if the saturation of the carbon dioxide contained within the lake reaches critical levels of 100 percent. To illustrate this in layman terms, prior to a lake being saturated, it behaves like an unopened carbonated beverage (soft drink) : the carbon dioxide is dissolved in the water similarly to how it is dissolved in the lake. In both the lake and the soft drink, carbon dioxide dissolves much more at high pressure. When the drink is open, the pressure is released thus making the carbon dioxide come out of solution. If the lake reaches full saturation, the pressure exerted by the gases will be more than the pressure caused by the lake thus making it highly unstable and a trigger is all that is required to set off an eruption sending vast amounts of carbon dioxide to bubble out of the lake.

    Fortunately, the chances of such an event transpiring are not high. “The risks are a little bit above 50 percent given the saturation levels of the gas in the lake,” says Augusta Umutoni, Engineer in charge of environmental concern in the Lake Kivu project.

    “The pressure exerted by the gas contained in the lake needs to be more than the hydrostatic pressure of the water,” she adds. This is something that is not likely to occur due to the recent methane gas extraction that is being extracted. Umutoni says that CH4 (methane) has a big partial pressure, if extracted and this significantly reduces the overall pressure exerted by both gases. The extraction of methane gas not only acts as source of vast amounts of energy but it also increases the stability of the lake.

    “The lake produces more gas and recharges itself at a rate of 150 million cubic metres per year ; this would take about 100 years for it to reach critical saturation levels of 100 percent. Presently, we are still on 57 percent level of saturation, she says, adding that this diminish the danger.

    Umutoni points out that Lake Kivu is situated in a region of high seismic and volcanic activity. It is even close to Mount Nyiragongo , which erupted in 2002. The eruption caused lava to cover a big portion of Goma city and this streamed down to Lake Kivu. “At the time, there was fear that the lava would cause gas saturated waters to rise to the surface. Luckily, this did not happen,” she says.

    “After the explosion, the European Union sent an expedition of experts to investigate on this and it was discovered that the lava had sunk to a depth of around 100 meters beneath the lake, where the main gradient of the gas is at 260 metres. This indicates that a seismic wave that would only be able to make lava reach at that point and trigger a lake overturn would have to be one of monumental magnitude.” observes Augusta, something that is unlikely to occur.

    She says that this improbability should not be taken for granted, because there is another area of Lake Kivu , known as Kibuno Bay that contains 100 percent saturation levels of carbon dioxide. The discovery of this has prompted the establishment of a de-gasing plant to reduce the risks. However, she says that installation and implementation of this project is far from being underway.

    Umutoni observes that Lake Kivu seems to be as fascinating as much as it is potentially hazardous. “Nevertheless, it would be safe to assume that the dangers lying around the lake despite their great disastrous potential have low probability of occurrence. The methane gas project for now is an excellent way to avert this danger in the long term by not only providing greater socio-economic benefit but by also maintaining and perhaps increasing the stability of this great lake,” she recaps. 

  • Rwandan rebels waged war on mobiles

    How to spearhead a deadly militia in Congo, from Germany ? In modern times, one only needs a mobile-phone and a laptop to unleash a humanitarian catastrophe. German prosecutors are convinced that two Rwandans waged a brutal war some 6,000 kilometres away via telephone calls and emails.

    Judges in Stuttgart this week will continue hearing evidence against two Rwandan rebel leaders for war crimes and crimes against humanity carried out in the Democratic Republic of the Congo (DRC).

    Known as the “The Doctor” for his PhD in economics, Ignace Murwanashyaka headed the Democratic Forces for the Liberation of Rwanda (FDLR) in the eastern Democratic Republic of Congo. With the help of his deputy Straton Musoni, he maintained the militia’s website, signed press releases and gave interviews about the group’s struggle against Rwanda.

    But prosecutors in Stuttgart argue that Murwanashyaka and Musoni also directly ordered the burning of Congolese villages, the murder of 200 civilians, large numbers of rapes, recruitment of child soldiers and the use of human shields. Both men face a sentence of life in prison.

    Handcuffed
    They were brought to court last Wednesday, handcuffed but looking confident with six lawyers at their side. The prosecutor read out a total of 55 counts of crimes against humanity and war crimes including mass killings and rapes as part of “terror campaign” in eastern DR Congo from 2008 until their arrest in 2009. 

    They allegedly led a terrorist organisation from their sitting rooms. “We are talking about the full range of atrocities that one can imagine in a civil war,” federal prosecutor Christian Ritscher told a panel of six judges in opening arguments. The defence, however, demanded a dismissal of the proceedings saying the trial is purely politically motivated.

    The trial poses a huge challenge for judges in Stuttgart. It is too dangerous for them to visit the crime scenes so it requires some imagination to picture what happened in small jungle villages thousands of kilometres away. Besides, they will also have to familiarise themselves with the history of the region, the type of crimes and the cultural context.

    Numbering between 3,500 and 5,000 fighters, the FDLR is notorious for using rape as a weapon of war. It consists of former Rwandan Hutu government soldiers and militias who carried out the 1994 genocide. Since they fled Rwanda that year, the former génocidaires tried to topple the Tutsi-dominated government in Rwanda, without success. Although its European leadership is behind bars, the group continue its brutalities in the dense forests of Eastern Congo, where they control gold mines and collaborate with other fighting forces to sell mineral products.

    Impunity
    The FDLR leadership enjoyed considerable impunity in Europe. While some of them already had a suspicious past in Rwanda, they were never seriously investigated. Murwanashyaka – who has been living in Germany since 1989 and presided the FDLR since 2001- had been arrested earlier in 2006. He was released because of lack of witnesses. But after new inquiries Murwanashyaka was arrested again in November 2009, this time alongside Musoni.

    Despite the many challenges, Human Rights Watch says the trial is groundbreaking. It is “a powerful statement that courts – even thousands of miles away from where the atrocities occurred – can play a decisive role in combating impunity,” says the organisation’s International Justice Advocacy Director Geraldine Mattioli-Zeltner.”The German authorities took an important step in carrying out their legal obligation to prosecute these horrific crimes.”

    She says that Germany is “joining the expanding club of states that are willing” to fight impunity for international crimes. Although a local court in Frankfurt is dealing with a case against Rwandan genocide suspect Onesphore Rwabukombe since January, the FDLR trial will be an important test-case for Germany’s Code of Crimes Against International Law. Adopted in 2002 it allows prosecution of foreigners for war crimes, crimes against humanity and genocide. It is “extremely far-reaching” as it does not require any link to Germany says Mattioli-Zeltner.

    Universal jurisdicition
    Over the past two decades a dozen of countries adopted the principle of universal jurisdiction. They have allowed national courts to investigate and prosecute grave international crimes committed elsewhere. Most universal jurisdiction cases concerned Rwandans, allegedly implicated in the country’s mass-killings. Genocide suspects were recently arrested in Norway, Belgium and France, while a court in the US started a trial against a Rwandan last month and a Dutch appeals court is to deliver a judgement at the end of June.

    The case in Stuttgart will be closely monitored by the International Criminal Court (ICC) in The Hague, where Callixte Mbarushimana awaits his possible trial. After Murwanashyaka and Musoni were arrested, Mbarushimana worked as the executive secretary of the FDLR from Paris, where he was arrested last year.

    Meanwhile, the trial in Stuttgart is scheduled to run until at least July while observers say it may even take up to one year.

    (This story was first published by Radio Netherlands International)

  • EAC to study regional oil pipeline

    The
    East African Community is set to undertake a feasibility study on the
    construction of an oil product pipeline from Uganda to Rwanda, easing fuel
    supplies in the landlocked countries of Rwanda and Burundi, the EAC secretariat
    said early this week.

    The regional
    body has obtained a grant of at least $600,000 for the study from the African
    Development Bank, which will look at the viability of linking the two countries
    to a pipeline project running from the Kenyan coast to Uganda, the EAC cited
    Patrick Nyoike, the permanent secretary of Kenya’s Ministry of Energy, as
    saying.

    “The
    plan is to link Kigali [in Rwanda] by a pipeline from Kampala [Uganda], which
    will allow petroleum products to be accessed from the planned refinery in
    Uganda, as well as the existing refinery in Mombasa [on the Kenyan coast] and
    international markets,” Nyoike was quoted as saying.

    Uganda is
    planning to build a 150,000 barrel-a-day refinery in its oil-rich Albertine
    Rift basin following the discovery of at least a billion barrels of oil in the
    past couple of years.

    In March,
    U.K.-based Tullow Oil PLC agreed on a joint-venture deal with France oil major
    Total SA and China’s CNOOC Ltd. for the development of the oil fields in the
    basin, which is expected to cost at least $10 billion.

    EAC member
    states are also planning to diversify energy sources within the region in order
    to enhance security of energy supply, Nyoike was cited as saying.

    The
    regional body has finalized studies on the proposed natural gas pipeline from
    the Tanzanian port of Dar es Salaam to Kenya’s Mombasa in order to end
    overreliance on limited forms of energy. In February, Tanzania said that its
    gas reserves had more than doubled to 7.5 trillion cubic feet following a
    number of discoveries off the Tanzanian coast.

    It is
    expected that the project will contribute to the reduction of energy costs and
    shield power generation from variability of weather and international crude oil
    prices, Nyoike was cited as saying.

    The EAC
    member states are Kenya, Tanzania, Uganda, Rwanda and Burundi.

  • Africa can make more money from tourism, says report

    The Africa Competitiveness Report 2011, produced by the World Economic Forum, the African Development Bank and the World Bank, states that the continent has many advantages on which to build its tourism industry, including price competitiveness, a strong affinity for tourism and rich natural resources supported by efforts towards environmental sustainability.

    “One out of every twenty jobs in Africa is in the tourism and travel industry ; worldwide it is one out of every ten. That shows you the potential that we have if we can get the travel and industry up to the level of the global average,” said Shantayanan Devarajan, the World Bank’s chief economist for the Africa region, during the launch of the report in Cape Town at the World Economic Forum on Africa.

    According to a study by the Natural Resources Consultative Forum, a US$250,000 investment in the tourism sector generates an average of 182 full-time jobs.

    Devarajan singled out Rwanda as a country that has made the most of its tourism potential by creating a thriving industry around its mountain gorilla population. “Rwanda was coming off the genocide in the mid-1990s and they needed a source of foreign exchange. They’ve got these beautiful gorillas . . . and they decided to promote an ecologically friendly, highly targeted tourism industry around the gorillas,” he noted.

    Rwanda has also involved the local communities in the gorilla industry. This creates employment and insures that villagers have a direct interest in the conservation of the gorillas’ natural habitat.

    The report notes that a number of challenges remain to advance the continent’s competitiveness in the tourism sector. These include improving safety and security, upgrading health and hygiene levels, developing numerous forms of infrastructure, and fostering the region’s human capital.

    In addition to harnessing Africa’s tourism potential, the report found that to improve the continent’s competitiveness, governments should focus on stronger integration into international trade and finance, improved educational systems, as well as enhanced entrepreneurial opportunities for women.

  • Nyabihu landslide victims interred

    A subdued mood hang on to Gakoro cell, Rugera Sector, Nyabihu District yesterday, as the 14 victims of Friday’s mudslide tragedy were buried.

    Top government officials including Senators, Members of parliament and Ministers James Kabarebe and Gen Marcel Gatsinzi joined friends and relatives joined thousands to to remember the victims who died when a collapsing hillside engulfed the homes of one family who were asleep in the wee hours of Friday morning.

    Shortly after laying wreaths at the mass grave in which the victims were laid to rest, Disaster management minister Gatsinzi thanked the residents for their quick response and extended the government’s sympathy to the bereaved family.

    “We greatly regret the death of these people and extend our heartfelt condolences to the people of Nyabihu,” Gatsinzi said.

    He noted that local residents should ensure they find safer places to settle to avoid such accidents in future. The landslide was triggered by a heavy downpour.

    Those who died included 39 year-old Jean Damascene Nzamuhabwanimana, his 11 children and three wives identified as Alphonsine Ntibarikure, Gorette Nyirahabyarimana and Esperance Akingeneye.

    During the funeral service, mourners were shocked with the extent of damage .

    The district’s Mayor, Emmanuel Nsengiyumva, said that environmental hazards were a major problem in the district.

    “Given the topography of this region, more measures should be taken in order to avoid the risk of further landslides,” Nsengiyumva said.

  • Investing in hydropower infrastructure alone futile-minister

    The State Minister of Energy and Water, Eng. Coletha U. Ruhamya has said that investing in hydropower infrastructure without putting resources in skills development would be a nonstarter. 

    The minister made the remarks during a graduation ceremony of 30 newly graduated technicians who undertook a four week course in Hydropower operation and maintenance held in the Conference Room of the Ministry of Infrastructure on Friday.

    “Hydropower Plants are important for achieving goals. Rwanda has big potential for small and big Hydropower Plants that can be developed in order to supply electricity to our people.”

    She challenged the new graduated technicians to get involved in local projects and be the driving force with other partnering companies to develop new sites and manage those presently under construction. The minister congratulated the technicians and thanked the trainers for their time and sacrifice.

    Oliver Ngororabanga from REPRO, explained to the audience the operations of the newly Power Plant located in the Western Province (former Kibuye) that has been operational here since last year. The plant was put up from March 2008 up to March 2010.

    In his speech, a trainer from the Kafue Gorge Regional Training Centre in Zambia, that undertook the training, said that any meaningful investment in infrastructure without the necessary skills for appropriate relatedness is a wasted investment. He outlined the importance of acquiring skills in hydropower, stating that it was vital for the country’s infrastructure. He also pointed that “our business is to ensure there are skills for higher power operations.” He disclosed that plans are underway to put up a Hydropower centre for Africa. He thanked the Rwandan government for taking the initiative to invest in skills transfer and hoped for continued partnership.”

    In an interview with IGIHE.com, one of those who undertook the course Ben Mategeko disclosed that the first phase of the training took two weeks in Zambia while the second phase was held in Kigali over a similar period.

    “The skills gained were really important, most trainees had theoretical background, some had little experience in hydropower plants but were exposed to huge power plants such as the Kafue Gorge Regional Training Centre power plant (in Zambia), which generates about 990 megawatts, which is really enormous. It’s something that Rwanda is trying to emulate. The other great experience is the hands on experience.”

    He said that “what was learned from Zambia if properly utilised in Rwanda can contribute to the energy efficiency.”

    Those present at the event were representatives from the ministry of Infrastructure, Energy, Water and Sanitation Authority (EWSA), various companies involved in development and construction of Hydropower including ARED, ENNY, REPRO, REGREPOWER, Digitech, GIZ, CTB and trainers from Kafue Gorge Regional Training Centre in Zambia.

     

  • Nyabihu mudslide ‘kills 14’

    At least 14 members of the same family have been killed in Nyabihu district after heavy rains sparked a mudslide that engulfed a small village, local authorities have said.

    The mudslide struck the village in the Rugera Sector on Friday at around 4am.

    At least three homes had been damaged or submerged.

    Among those feared dead was a one year old baby.

    The Nyabihu district Vice Mayor Angela Mukaminani said that authorities had managed to recover 11 bodies.

    Mukaminani, said some parts of the area had been evacuated because of the risk of further landslides.

    “We have temporarily relocated residents living near the scene of the accident to avoid more deaths as we intensify the search for those who are suspected to have died,” Mukaminani said.

    The area where the incident occurred is hilly with dotting houses at the foothills. In the past few months, the area has experienced one of the heaviest rainy seasons.

  • KCB to pump billions into struggling subsidiaries

    The Kenya Commercial Bank (KCB) group Board of Directors has approved an additional Sh1.9 billion capital injection to support the growth of the bank’s struggling regional subsidiaries.

    Group chairman Peter Muthoka said the increased investment is meant to help the subsidiaries speed up their financial performance, and yield better returns to the shareholders.

    The beneficiaries of the new funding include KCB Uganda (Sh1.1 billion), KCB Tanzania (Sh225 million) and KCB Rwanda (Sh557 million). With the exception of KCB Sudan, these subsidiaries returned an accumulated net loss of Sh259 million last year, diluting the Group’s overall profitability.

    Performed better

    KCB Uganda reported a loss of Sh409 million, while KCB Tanzania and KCB Rwanda registered losses of Sh111 million, and Sh318 million, respectively. KCB Sudan, however, performed better than expected, returning a profit before tax (PBT) of Sh581 million.

    “KCB Sudan reported a good profit last year, and is poised for better returns in 2011 whereas KCB Rwanda and KCB Uganda are moving closer to profit making. KCB Tanzania is now stable, and should become more profitable going forwards,” said Muthoka. He, however, said all regional subsidiaries would be expected to break- even this year.

    Muthoka also said the KCB board would be reviewing the operations of each subsidiary as it seeks the right business model which delivers increased returns to the investors.

    “The board has agreed to increase investment in the subsidiaries this year to enable them accelerate their financial performance,” Muthoka told shareholders during the bank’s 40th annual general meeting (AGM) in Nairobi, yesterday. Muthoka said the board has also approved wide-ranging business 

  • Europcar rental agency: more than just a car

    One of the largest car rental agencies in the world Europcar set up its operations in Rwanda in January of 2011 without much fanfare. But five months on, the company is already making Rwandans to stop and take notice. 

    Going by the motto ’You rent more than a car”, the local agency consists of a management team, an operational team, marketing and sales team that have already managed to rapidly gain a huge client base. Some of the firms major clients within this short time span include international organisations, NGOs, the U.S Embassy as well as individuals who rent cars to travel for long distances.

    The Europcar offices are adjacent to Gorilla Hotel in the plush Kiyovu estate in Kigali.

     The operations manager of the local agency is Leonard Mugisha, a suave Ugandan-born chap of Rwandan descent, who is convincingly adept at lionising his firm. After giving me a short summary of Europa cars history, I ask him what the benefits of renting a car from Europa car agency rather than another car agency in Rwanda or abroad.

    “Firstly,the maintenance and servicing of the vehicles is one of our major responsibilities and we take seriously what we believe in, though we know how to keep our customers happy even while dealing with the competitive rates, we always remember our long term relationships have been due to our customer satisfaction,” he says.

     Europcar deals with millions of different types of cars every single day and for every car that is rented, the agency takes full responsibility for not only the insurance cover but also the delivery of the vehicle the customer has requested for. Mugisha told IGIHE.com that the vehicle with the highest demand in Rwanda is the Toyota Land Cruiser VXV8, especially by various organisations, private companies, as well as many of the CEO’S of corporate companies such as Tigo. Mugisha discloses that all these cars are 2010 models. 

    The company rents a Toyota Land Cruiser VXV8 at Rwf 100 million, whether the car is brand new or second hand. Renting and leasing isn’t the only service the agency provides.

    “A client may also hire qualified professional drivers to drive you during your lease of the car,” discloses Mugisha.

    Europcar, a car rental agency that was established in 1945 in Paris, France, now has 145 different rental agencies across the globe, in the Caribbean, North America, the middle east, the United kingdom, Russia, Zimbabwe, Kenya, Uganda and now Rwanda. iin all these countries, there are over 2,825 different car models rented in 3,000 different locations.

    Europcar, which has two divisions ; Europcar France and Europcar International, partners with a few of the great names in the car industry including Accor, Volkswagen, Thalys, Renault and Mercedes, as well as working with other partners such as Delta Air Lines and Easy jet. Their solid reputation for professionalism has made them the top third car rental brand in the world.

     The various prestigious awards that have over a decade placed themselves in their world trophy accolade include the number one and best car rental company in Europe and Africa in 2004 for three consecutive years and the world’s best leisure car in 2006.

    One of leading rental car agencies in the world has come to Rwanda not to compete against us but with us, says Mugisha.

    “Though we are still new, we are now working towards building a relationship with the government of Rwanda”, “I have personally seen what a great and diverse culture Rwanda has and we are hoping to recruit more Rwandans in order to enlarge the diversity of our agency. ”

    “Like I said with Europcar agency you are renting more than just car,” he aptly recap.