Agaciro funds to be invested in government treasury bonds

The Rwf21.6 billion so far pooled by Rwandans through voluntary contributions under Agaciro Development Fund (AgDF) will be invested in government treasury bonds next month, AgDF chief executive officer, Vianney Kagabo, has said. “We are planning to embrace the capital markets by July and will lend this money to the government through purchase of treasury bonds. We shall be investing the earnings in social development projects after assessment of profit, and priorities of the country,” Kigabo said in an interview last week. Dickson Malunda, a senior economist hailed the move, saying: “keeping the money in the bank serves no benefit.” He added: “That would be a good deal, since the government normally pays good interest rates on treasury bonds.” AgDF continues to grow with about Rwf6.2 billion in pledges uncollected. Malunda suggested that in order to maximise benefits from the funds, the government should also invest the proceeds from the sale of treasury bonds in development projects, and not in consumables. The AgDF is managed by a board of trustees, which oversees the operations. Daily activities are carried out by a secretariat, made up of five staff. The team includes a fundraising manager and a finance manager, all paid through the budget of Ministry for Finance and Economic Planning. Kagabo said the team intends to visit all institutions in the country to sensitise workers on the benefits of contributing to the fund. AgDF’s business plan targets to collect $50m (aboutRwf 34bn) per annum. Government institutions, non-governmental organisations and individuals contribute towards AgDF. They channel their money through seven banks where the fund has accounts, or through mobile money transfers. Kagabo said major donors include the Rwanda Defence Forces that contributes over Rwf1.6bn, with an estimated Rwf47m coming in monthly from different organisations and individuals. “Rwanda National Police contributes Rwf28m monthly, while the entire Cabinet, including the Head of State will forfeit a one-month salary every year for two consecutive years,” he said. Agaciro open day is scheduled to take place on August 23.