Business round up

Rwanda Stock Exchange to be launched this month Rwanda Stock Exchange (RSE) will start trading on January 31, 2011. This will be part of the country’s economic reforms aimed at helping businesses raise long-term financing. The launch will also mark the listing of the first equities stock from a local company as Bralirwa shares will make their debut trading on the RSE. Robert Mathu, Executive Director of the Capital Market Advisory Council (CMAC), said that that would be an important achievement as it has been managed by the council (CMAC) that was running the market as well as the regulatory part. Currently, Rwanda operates an Over-The-Counter (OTC) market and the launch of the RSE as the country’s principal stock exchange will boost the economy, especially the private sector through increasing access to finances. ATI sees boom to Rwanda insurance market The leading trade credit and investment insurer in Africa, African Trade Insurance Agency (ATI) said Rwanda’s insurance market will expand due to an increase in political risk insurance and trade credit insurance. The insurer said this will boost the country’s strategy to become a middle income economy by 2020. The insurer expects its business operations in Rwanda to hit a record value of $408 million by covering Foreign Direct Investments (FDI) this year. The Chief Underwriting Officer at ATI, Stewart Kinloch, said that based on the inquires the company has so far made, receives from investors interested in Rwanda and local investors seeking its services, Rwanda has become a Mecca for business. The official was speaking at an insurance workshop which took place in Kigali. IMF, WB assess Rwanda’s financial sector Experts from both the International Monetary Fund (IMF) and the World Bank were in the country to assess the stability and performance of the financial system as a whole. The exercise was done under the Financial System Stability Assessment Programme (FSAP). This followed the initial assessment which was done in 2005 and led to the development of the current comprehensive Financial Sector Development plan. Ambassador Claver Gatete, the Vice Governor of the central bank told Business Times that the assessment would be done in three weeks. He said that the experts will meet stakeholders in the financial sector and also discuss their findings to enable them to provide an independent evaluation. Gatete added that although the exercise will consider cross cutting issues, top on the agenda includes assessing the country’s financial stability, supervision and risk management. BDS seeks more financial support from PSF The Business District Service (BDS) in Rubavu urged the Private Sector Federation (PSF) to intervene with much more financial support to enable the project achieve the intended goals.Operating under the PSF, BDS gives advice as well as educating the business community on the basic expertise in running businesses successfully. Damien Bazimaziki, a BDS consultant in Rubavu said currently, BDS managers are hired to offer services as consultants, but he noted that the much they raise from clients is not enough to carry out BDS activities. He however noted that although the federation does not necessarily have to fully fund the BDS centres, at least an average support should be given. BRD’s loan book expands by 5% Rwanda Development Bank (BRD) increased its lending by 5percent last year due to the increase of demand for credit from the private sector. The Bank’s unaudited financial statements for last year indicate that loan approvals increased to Rwf27 billion from Rwf25.75 billion in 2009.Jack Kayonga, the Managing Director of BRD told Business Times that over 50 percent of approved loans were to support agriculture, commercial real estate and hotels. He said that supporting agriculture still remains a key sector until when commercial banks and other financial institutions increase lending to the agriculture sector. He also noted that BRD mainly supports sectors that aim at poverty reduction. Business excellence awards postponed Rwanda Development Board’s (RDB) postponed its business excellence awards to February 4. The awards which were meant to be awarded this month are organised so as to recognise businesses, individuals and Small and Medium Enterprises (SME) that made an impact towards the growth of the country`s economy in the previous year. At the event 15 categories will be nominated which include investor and exporter of the year as well as SME of the year. Amongst them will include various sectors like tourism, ICT, general manufacturing, agro-processing, mining, finance, and real estate among others. Health Insurer Targets Rwanda Resolution Health East Africa Limited (RHEAL), a Kenyan based health insurer, said it will expend its services to Rwanda next year. This follows the insurer`s new partnership with German private equity fund and African Development Corporation (ADC). The announcement follows ADC’s recent $2.3 million equity investment in RHEAL in which the German firm acquired 25 percent stake. Peter Nduati, the Group Chief Executive Officer of RHEAL said that the additional capital would help drive the planned regional expansion including entry into Rwanda. He said that the competition in Kenya was very stiff hence squeezing the much people can make. Nduati noted that the company plans to enter through an acquisition in an already existing insurance company, though, he did not rule out possibilities of green field entry. Kenya’s new rule on fuel in transit will not hurt Rwanda Robert Opirah, Ag. Coordinator of Petroleum Special Unit in the Ministry of Trade and Industry said that the decision by Kenyan Revenue Authority, to have imported refined fuel on transit to leave the country within in 30 days will not affect Rwanda. The order was to apply to fuel dealers transporting refined fuel to Uganda, DRC, Burundi and Rwanda. However, Opirah said that Rwanda will continue to have seamless fuel supplies and the prices for the product are likely to remain stable He also noted that the charge will affect neither local pump prices nor dealers. Opirah recalled that even Tanzanian authorities at one time, imposed the same charges but local fuel prices remained stable as fuel dealers transported their consignment in time. He also said that in cases where dealers import heavy loads that may not be transported in time, Rwanda Revenue Authority (RRA) comes in to ask the correspondent country for extra days Ends