Business round-up

It has emerged that the road connecting Rwanda to Burundi will cost Frw192 billion ($355m). Beginning in Ruhwa the road goes through Ntendezi, Kibuye and Gisenyi, ending in Bujumbura.

A plan from the Ministry of Infrastructure shows that part of the road from Bujumbura to Ruhwa will be restored while the stretch from Ntendezi-Gisenyi will be tarmacked.

Anonymous sources in the ministry revealed that STUDI International, a Tunisian firm, is carrying out a study expected to cost Frw800 million, to pave the way for tendering process.

The source added that the African Development Bank (ADB) has also expressed interest to support the project. In the last three years, ADB has financed three road projects in Rwanda valued at a total of Frw39,578 billion ($73.320m).

Microfinance companies told to join PSF

This week, all Microfinance Institutions (MFIs) in the country were urged by the National Bank of Rwanda (BNR) to join the Financial Institutes Chamber (FIC), a chamber within the Private Sector Federation.

According to François Kanimba, the Governor of BNR, MFIs working under one organised body, facilitate improved economic development. He also said that should MFIs fail to join FIC voluntarily, government may be forced to make it a legal requirement.

Investors object to taxes

Taxes are hurting business, investors told the Rwanda Revenue Authority (RRA). At a RRA conference last week, investors complained that high tax system is affecting a vast array of investment decisions.

According to Hugues Lefebvre, the managing director of Rwanda Motors, one has to pay 94 per cent duties on all imported vehicles.

In response RRA Commissioner General Mary Baine explained that the taxes are competitive, low in the region and have reduced over years.

In 1995 importers of luxury vehicles had to pay 220 per cent import duty, it dropped to 100 per cent, then 60 per cent and in 2000 it reduced to 30 per cent.

Currently, importers have to pay withholding tax of 5 per cent, import duty of 30 per cent and VAT 18 per cent.

"Investors could be complaining because of the tigh" 21