Business round-up

Increase in Gorilla numbers accelerate tourism revenuesA rise in the population of Gorillas in the Virunga Mountains will boost the country`s revenue earnings from the tourism sector. Reports indicate that the number of Gorillas increased to 480 from 380. This shows a 26.3 percent increase in the last seven years. Rwanda now boosts of 17 families putting the country ahead of its neighbours in the region. Mountain gorillas contribute 90 percent of revenues accrued from national parks in tourism receipts. This justifies the country’s heavy investment in the sector. The head of tourism and conservation at Rwanda Development Board (RDB) Rica Rwigamba said that Mountain gorillas are the anchor and unique product for Rwanda. Bralirwa slashes Heineken prices Bralirwa has reduced the prices of Heineken beer and rebranded its bottles. The move is aimed at improving pricing conditions. The company owns 75 percent shares in Rwanda’s largest brewery by market share. Bralirwa said that the company reduced beer price to Rwf18, 000 per crate from Rwf25, 700 on the retail market. The company also plans to strengthen the brand’s position on the international market. Bralirwa manufactures Heineken beer through a licensing agreement with Heineken Company. The final consumer will therefore buy a bottle of Heineken at Rwf 1,000 instead of Rwf 1,200. Heineken Brand Manager at Bralirwa, Jean Pierre Uwizeye, said that price reduction aims at providing quality distinction. He also said it will make it more attractive to customers. African leaders adopt a single market roadmap As a measure towards strengthening intra-regional trade flows, a Free Trade Area (FTA) will be established within the Southern, Eastern and Central region. The agreement will be reached by Heads of States and representatives from 26 African nations. The Heads of State signed a declaration to launch negotiations into establishing the FTA during the second COMESA-EA-SADC summit in Johannesburg, South Africa.The development is expected to create a single wider market within the three blocs. This in turn will reciprocate into increased investment flows, encourage competition in the economies and also develop cross-regional infrastructure. According to the communiqué, market integration will highly focus on sharing the costs of infrastructure and industrial development. This will improve connectivity as well as reducing costs of doing business. Govt to introduce Gaming tax and law In a move to regulate and streamline gamming and betting in the country, government will put in place a law that is currently awaiting approval by parliament. The law will also introduce taxes to the country’s budding gaming and betting industry. The Minister of Finance, John Rwangombwa, while presenting the budget said that Rwanda Gaming Corporation (RGC) is not paying taxes since there is no gaming law. He therefore proposed the introduction of a special gaming tax of 13 percent and a withholding tax of 15 percent. The Minister said that based on activities performed last year, government expects a collection of Rwf86.3 million and Rwf 859.9million in 2011/2012 respectively. Business plan competition boosts young entrepreneurs The Dutch government through its international organisations pledged to fund Small and Medium Enterprises (SMEs). This aims at supporting the country`s commitment in increasing employment opportunities among the youth. The Senior Advisor of BiD network, Anneke Evers- a Dutch international organization said that over €25 million funding will be distributed in five countries including Rwanda. It will be done through the MESII project that will run for five years to boost SMEs. The money will be used to fund the country`s young business projects through a business plan competition.The fund is expected to create jobs, business skills training, and also facilitate access to finance by SMEs. Inflation eases to 4.5% The National Institute Statics of Rwanda (NISR) said that the annual inflation rate reduced by 0.44 percentage point to 4.54 percent in May from 4.98 percent in the previous month. Although inflation was sharp in the first quarter of this year, it remains the lowest in the East African region. Reports from NISR indicate that the annual underlying inflation rate, which excludes fresh food and energy, cooled to 4.32 percent. It also shows that increase in the consumer prices index is attributed to the increase in housing, water, electricity gas and other fuels that contribute 0.73 percent and 0.87 percent for transport. MIG eyes Kenya, Brazzaville for honey Multi-Sector Investment Group (MIG) will utilize the Rwandan trade fare in Brazzaville, the Republic of Congo to look for market for its excess honey output. The Brazzaville tradefare will run from June 18 to 20, 2011.The Managing Director of Multisector Investment Group, Vincent Ngarambe, said that the group has already taken samples and the product is being served in major hotels. The company intends to open up a shop once the market proves to be viable. Ngarambe said that the decision was reached after RwandAir opened direct flights to Brazzaville saying this will simplify cargo transport costs. Ends