Business round - up

Rwandatel is preparing to switch to Global System for Mobile communications (GSM) technology. The telecommunication company is installing towers and base station antennas countrywide to switch from Code Division Multiple Access (CDMA) technology to GSM.

This will enable its subscribers  to use their phones on GSM networks all over the world.

The GSM service is expected in two to three months time. It is believed that the technology would put Rwandatel in closer competition with MTN Rwanda.

Victor Kinuma, the marketing manager Rwandatel, said that the company wants to realise what MTN achieved in eight years within a period of one year.

The $56 million (Frw30.4 billion) technology investment comes six months after the acquisition of 80 per cent of Rwandatel by Libya’s LAP Green.

Patrick Kariningufu, the Rwandatel Chief Executive Officer said it is part of the $87million (Frw47 billion) Lap-Green pledged to invest within one year after acquisition of shares.

The company is currently training staff for new technology demands. Rwandatel has a market share of about 60,000 subscribers while MTN Rwanda, the only GSM operator, has about 600,000 subscribers.

Leasing addresses SMEs’ challenges
During the 12th African Leasing Association (Afrolease) convention, at Kigali Serena Hotel, James Musoni, the Minister of Finance and Economic Planning said leasing is the answer for Small and Medium Enterprises (SMEs).

He said government considers the private sector that includes SMEs as the engine for its growth even if access to finance continues to be a challenge.

It was noted that SMEs in Rwanda lack collateral required by banks, therefore they do not access medium and long term financing.

Musoni explained that leasing is an alternative financing mechanism which answers the private sector challenge of accessing funding.

However, he cited lack of a legal and regulatory framework and capacity constrains as some of the challenges for the two year leasing industry in Rwanda.

The four-day convention was called to educate Rwandans, the private sector, law makers and other stakeholders on leasing.

Riepa woos Middle East investors
Rwanda Investment and Export Promotions Agency (Riepa) is wooing investors from the Middle East at the Organisation of Islamic Countries (OIC) first Business Forum in East Africa that opened in Kampala on Monday.

The forum under the theme, ‘Discover the resources and high potential of the African market’ was attended by over 400 leading Islamic businessmen from the Middle East.

Francis Gatare, Riepa Director Genera,l said that Rwanda is not a member of OIC but is always on the lookout for investors.

He revealed that there were positive responses from some OIC members.

More Rwandair flights to Entebbe
The national carrier, Rwandair Express, has added flights on the Kigali-Entebbe route from nine to 13 a week.

According to a statement issued by management, the increasing number of regular passengers has forced the airline to add flights.

Except on Sunday, Rwandair now operates two flights daily from Kigali to Entebbe. Management says that new morning flights will be more convenient to business travelers, who will be able to fly between Kigali and Entebbe and return on the same day.

Ends