Rwandair reaches Belgium through SN Brussels

Rwandair express has entered a code sharing agreement with Brussels on flights between Kigali and Brussels. This is intended to allow Rwanda’s only flight company to sell tickets on flights to Belgium.

The national carrier says the deal will be convenient to the clients of both airlines, helping Rwandair penetrate the Belgian market while Brussels airlines reinforces its position on the African market.

The Rwandair statement reads that it also offers numerous possibilities for connections to other African and European destinations through Kigali or Brussels.

The partnership which has been effective since March 31, 2009 permits the Belgian carrier to operate the flight.

According to the agreement, Rwandair will sell 10 seats in economy and class as a marketing carrier on all three weekly flights between Kigali and Brussels, operated by Brussels airlines.

SN Brussels flies to Brussels direct from Kigali on every Tuesday, Thursday and Saturday.

Banking sector recuperates after 15 years

In 1995 after the 1994 Genocide against the Tutsi, the banking sector was almost collapsing, says the National Bank of Rwanda (BNR).

The country had only four banks including three commercial banks and one development bank, operating before 1994.

These include Bank of Kigali (BK) Commercial Bank of Rwanda (BCR) and BACAR. The development bank was, Development Bank of Rwanda (BRD). Since then, all these banks with the exception of BK have been acquired by international financial institutions.

From 1996 the central bank has been carrying out audits aimed at evaluating the loans portfolio and the financial position of those institutions.

"In general, results from the first reorganisation plans noted that some banks experienced specific difficulties attributed to poor quality of a substantial number of loans granted after the 1994 tragic events,” said the 1995-2007 BNR report on banking supervision.

The audit says that the 1994 war and Genocide strongly weakened the banking activity in the country, leaving a substantial figure of Non Performing Loans (NPL) on the banks’ balance sheets.

Bank losses came in many ways as a result of the war. First many bank clients who had acquired loans were killed and a reasonable number of investments, financed through debt, were halted.

However, BNR says that the massive inflow of capital during the emergency period which followed, immediately tried to generate effervescence of the economy.

During the same stretch, the credit activity of financial institutions has been highly stimulated and outstanding credits moved up at a high speed.

The new government after 1994 attracted numerous investments, which have helped in stimulating the local market causing financial institutions to regain their business.

As a result, the loan portfolio of banks grew considerably. The report says that collected loans rose from Rwf307.6 million in 1999 to Rwf837.0 million in 2000 and Rwf1.8 b in 2001.

The central bank says that this performance, though positive, was not sufficient since the collected amounts were less significant comparing to the total non-performing loans.

The audit however says that even if some institutions have improved their performance, others did not experience the same success.

City businesses recording seasonal low sales

Business around the city centre dealing in various merchandise recorded low sales according to a mini-survey carried out by Business Times.

The survey though not based on conclusive business parameters showed that the business community mainly in the private sector has recorded low sales and customer turn up, with daily sales reducing to almost zero.

In an interview, the business community approached by Business Times attributed the dwindling sales to less liquidity on the market as a result of the global financial crisis. While others indicated that decline is due to the mourning of the 1994 Genocide against Tutsi.

Mukeshimana, a Boutique owner said that though mourning has also contributed to the low sales, the situation was already bad.

"Since the beginning of the year, doing business has been difficult because very few people are willing buy at the fixed price.” She added that the few customers who are available also want to purchase goods at low prices.

In a separate interview, Joseph Ndungu the Country Manager, Nakumatt Supermarket also mentioned that the shopping store had experienced low sales specifically during the 15th commemoration week of the 1994 Genocide.

Service providers urged on good customer care

Service providers in the country have been urged to improving their customer care because a satisfied customer is the best marketer.

The appeal was made by the Acting Director General in charge of Investment Promotion in Rwanda Development Board (RDB), Rosemary Mbabazi, during a seminar on customer care.

"Experiences have shown that customer care service in public institutions across the country is very poor calling for all people’s involvement to improve their customer care,” said Mbabazi.

The one-day seminar brought together employees from public institutions who deal directly with RDB in promoting investments in the country.

According to Mbabazi, the objective of the meeting was to consolidate all the procedures so that every institution can be able to come up with a client charter which would help customers to know the mission and core values of the institution in question.

"There is need to develop a culture of good service and this goes hand in hand with attitude change.”

Experts say that the first interaction with the customer creates a good relationship and increases profits if the customer is satisfied. But slow customer care can slow down the economic growth of a country.

Mbabazi also revealed that every customer interaction improves, worsens or reinforces an institution’s reputation for customer care.

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