Business round up

IMF urges gov’t to bridge the infrastructure gap IMF urged Rwanda to bridge the infrastructure gap especially in areas of energy and transportation because it dampens private sector productivity hence constraining growth. The call was made by McAuliffe Catherine, IMF Mission Chief for Rwanda, in an interview with the Business Times at the recent annual meetings of the World Bank / IMF. McAuliffe said that addressing these gaps is critical to raise the country’s growth potential and maintaining momentum towards achieving the millennium Development Goals (MGDs). “They are also an obstacle to getting out of poverty,” McAuliffe said. While government has also already embarked on bridging the infrastructure gap, the Mission Chief noted that the central objective of recent approved IMF program for Rwanda –PSI, is to ensure that thehigher levels of investment spending achieved in recent years are maintained. “The key is to ensure that the borrowing does not endanger fiscal and debt sustainability,”Currently, Rwanda is deemed to be at low risk for debt distress by the IMF though it says there are gaps in public financial and debt management. Equity Bank’s plans to enter Tanzania, Rwanda take shape It was reported in the week that with Equity Bank`s five year expansion drive, at least amongst the 10 countries it tends to expand its operations, Rwanda and Tanzania are a priority With such a target, it will help the bank tap into the growing opportunities brought about by the East African Community’s Common Market. The planned entry into the two countries is part of the bank’s larger plans to roll out its operations into the Comesa region. Although the bank has not disclosed its intended partners in the new markets or details of how it plans to enter these markets, analysts say it might go about it the way it did in Uganda, that is, through acquisitions.The group acquired Uganda’s Microfinance Ltd in 2008 at a cost of Ksh1.66 billion ($25.3 million). Rwandatel Calls for uniform interconnection fees Rwandatel called for the telecoms regulator to reduce interconnection fees among the operators. Rwandatel’s Chief Commercial Officer (CCO), Francis Egbuson, believes that reduction of the interconnection fee will create a level playing field for operators to compete regardless of the subscriber base. He said Rwanda should emulate Kenya and reduce significantly the interconnection fee. “What happened in Kenya is a clear example-they did not scrap it but they brought it down to a point where it is no longer a differentiator for an incumbent who has had the advantage of a larger subscriber base,” he said. “I think that is the same way it should be done here. It should be reviewed in such a way that the field is level regardless of the subscription base.” Rwanda has three licensed mobile operators MTN, Tigo and Rwandatel with a combined subscription base of more than 3.2 million users as of June 2010 according to Rwanda Utilities Regulatory Agency (RURA). KCB reaches out to vulnerable children The Kenya Commercial Bank (KCB) reached out to the community and donated an assortment of items to vulnerable pupils in different parts of the country.In Muhanga District, the items worth Rwf 700,000 were given to children with various physical impairments at the centre of handicapped children in Nyamabuye Sector. The Bank’s head of corporate affairs, Ajulu D.Ojoo, said that they are committed to helping the Rwandan community and reaching out to the needs of the people. “We are here to stay and want to be associated with the people of Rwanda and help them in their areas of need. This donation is part of the banks’ values of social development and we are sensitive and committed to caring for the community,” Ajulu said. Gov’t conserving traditional cows The Director General of Rwanda Animal Resources Development Authority (RARDA), Theogene Rutagwenda said that Government has preserved two herds of indigenous breeds as conservation for the Rwandan traditional breed of cows. He said that the genetically diverse and exquisitely well adapted trait of livestock is expected to be harnessed to represent the pure traditional breed ‘Inyambo’ for future generations. The breed is currently being replaced by “exotic” breeds imported from the developed world. “We want to maintain the “pure Inyambo”— the Rwandan breed— for future generations and not be replaced by the imported exotic breeds”, Rutagwenda said. He observed that the traditional breed have successfully survived, and adapted to an extraordinary range of diseases and climate changes. To combat this trend of decreasing breed, the government decided to keep 130 cows in Nyagatare and 140 in Bugesera districts in the Eastern Province. GroFin increases lending to private sector GroFin, a specialist SME finance and development company has increased its funding to the private sector by supporting two entrepreneurs who are providing innovative solutions to the country’s 2006 ban on plastic products. The General Manager of GroFin Rwanda, Eric Rwigamba said that “We are assisting in creating a clean, environmentally sustainable Rwanda that’s why we have financed Soimex, a local business specializing in the recycling and manufacturing of plastic products.” GroFin is assisting in creating a clean, environmentally sustainable Rwanda following a 2008 investment in Sogem—a paper bag manufacturing company. Both companies provide direct, accessible solutions to substituting and eliminating plastic waste. “GroFin assisted us in updating the business proposal into an implementable business plan. This enabled us to start the business and monitor its progress. GroFin’s help in reviewing the projections and related assumptions allowed us to take the right decisions to facilitate growth,” said Fabrice Shema of Sogem. Balton Introduces Greenhouse Farming Balton Rwanda, a subsidiary company of Balton CP Ltd, a leading British supplier of agricultural supplies has introduced greenhouse farming in a package they have called ‘Farmer’s Kit.’ This has been done through a partnership with Amiran Kenya Ltd from Kenya, Balton Rwanda will help farmers to install greenhouse with a full wide range of modern agricultural tools to maximize small scale faming through using modern agriculture technologies to suit climate and topography of a particular area. The Amiran farmers’ kit was reported in the media last month and declared the best of the four nominated projects in the first category to scoop MDGs award in Nairobi, Kenya. According to Bob Gatera the General Manager of Balton Rwanda, the newly introduced greenhouse will help to eradicate poverty and hunger which is MDG one.Gatera said that “Despite being in business we like complimenting government policy and we have regularly worked closely with farmers, supplying them with agronomical supplies but also training them how to effectively utilize them for better yield.” General Post Office to Start Money Transfer Services The National Post Office (NPO) announced plans of starting money transfer services which will an additional means of sending money within and outside the country. According to the Director General of the NPO, Celestin Kayitare, the service will not only increase on the institution’s earning but will also improve service delivery based on the expected competition. Kayitare said that “Currently, our clients in Rwanda are able to send and receive money from Tanzania. We have also signed the Memorandum of Understanding with other 7 African countries where the service will soon kick off.” He added that, “This service is being started within East Africa countries, and gradually be taken continental and finally to worldwide operations.” Ends