Agaciro expects Rwf1.4bn returns on first investment

The Agaciro Development Fund Corporate Trust (AgDF) is expecting about Rwf1.4 billion returns on its first ever investment at the end on this financial year, following an investment of Rwf25.5 billion in short-term deposits with banks and Treasury bonds. The Fund’s chief executive, Vianney Kagabo, disclosed this at a meeting that drew cooperative confederation members in Kigali yesterday. The meeting sought to share the Fund’s achievements and reflect on continuity of supporting it for growth and sustainability. The investments were made in September, last year, after the Fund’s board meeting, at the rate of an annual interest of between eight and 12 per cent and are expected to mature at the end of the current financial year that closes June 30, Kagabo said. The returns will further drive up the accumulated funds, which, as of June 10, stood at Rwf26.5 billion. Kagabo said the decision to invest in money markets was to protect the Fund from risk and spur its growth. On sustainability, other than returns on investment and citizen contribution, Kagabo said the Fund will also depend on Rwf5 billion each fiscal year from tax revenues, 5 per cent per cent from government and 5 per cent on royalties from minerals and other natural resources each year. The Fund is also in the process of hiring an investment manager. However, it is notable that the amount of yearly contributions over time has gone down over the last two financial years. Kagabo called on Rwandans to sustain the pace of early contributions. Augustine Katabarwa, the chairperson of the National Cooperative Confederation (L), chats with the AgDF Chief Executive Officer Vianney Kagabo at the meeting in Kigali yesterday. (Timothy Kisambira) Following its launch in the 2012/13 financial year, Rwf18.5 billion was contributed, in the 2013/14 financial year, the contributions dipped to about Rwf4.5 billion, while in the current financial year, about Rwf3.5 billion have been accumulated. “Contributions require concerted efforts by all Rwandans. We plan to have a month of intensive Agaciro campaign where we will organise and participate in communal activities such as Umuganda and sports tournaments to reach out to more citizens, as well as intensify media campaigns,” the chief executive said. The Fund also seeks to cultivate close collaboration with national stakeholders such as the private sector, non-governmental organisations and the civil society. A general view among most Rwandans is that establishing and contributing to the Fund is a positive step toward national self reliance. This was also exhibited by the 2015/16 Budget presented last wek, which seeks to fund 66 per cent of the total National Budget from domestic revenues. Augustine Katabarwa, the chairperson of the National Cooperative Confederation of Rwanda, said national cooperatives were committed to contribute to self reliance. He said members of the confederation had come together not only to improve their livelihood, but also work toward national self-reliance. Agaciro Development Fund, launched by government about three years ago, is registered as a private trust corporation that receives and manages is based on voluntary donations from Rwandans, well-wishers and corporate companies. It is aimed at making the country self-reliant as far as funding development ventures is concerned. editorial@newtimes.co.rw

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Agaciro expects Rwf1.4bn returns on first investment