BUSINESS ROUND-UP: Upping electricity supply

Government has turned its focus on rolling-out power transmission in a bid for increase connectivity especially in urban Rwanda. Currently, only 6 per cent of the population has access to electricity. 99 per cent are from urban areas. The move comes after several years of concentrating on power generation since 2003 when there was a crisis not only in the country but in the region. According to Electrogaz, the current power generation amounts to about 40 Megawatts of electricity from different sources, with hydropower accounting for 60 per cent of the total production. State Minister for Energy, Albert Butare, said all the potential generation sources like methane, solar, geothermal, Biomas, national domestic biogas programmes are working but there is a need to interconnect all the generated electricity countrywide. Hotel grading delayed The grading and classification of hotels in Rwanda has been delayed by Rwanda’s intention to harmonise with regional standards. All hotels in the country were expected to be graded by the end of this year. Vincent Karega, State Minister of Industry and Investment Promotion, has said that initially the country was to carryout its own grading but since joining the EAC economic bloc last year, it is necessary to grade in harmony with the region. The grading system will give tourists clear and detailed guidelines to hospitality services in the country. The EAC Secretariat has for the last few months held meetings the regional bureaus of standard on harmonisation of all standards among partner states. The Director General of Rwanda Bureau of Standards (RBS), Dr Anastase Kimonyo, said once the harmonisation is complete, grading and classification will be done according to international standards based on regional legal requirements by a competent firm. Tree farmers target Frw800m in exportAfter planting 40 hectares of ornamental trees, farmers aim to make Frw800 million next year, a 22.8 per cent increase. Last year the country earned $5 million (Frw2.7 billion) from the horticulture industry. Trees could help Rwanda meet her horticulture export target of $5.9 million (Frw3.245 billion) next year. Government aims at $12 million (6.6 billion) export earnings from horticulture by 2012. The farmers from the country’s 30 cooperatives expect an overall production of 4,000 tonnes with each hectare producing 10 tonnes valued at Frw20m. According to Gabriel Ngendabanga, Rwanda Flowers Farmers’ Association President, the first consignment of about 30 tonnes will be exported to Holland upon harvest. With this expected increase in production and revenue, the association plans to construct a 50 hectare greenhouse for stocking flower seedlings imported from Nairobi. Currently, Rwanda’s primary flower is the Dracaena Ornamental but there are hopes to increase the different types of ornamentals grown. Belgian sportsman to invest $100m Jean Francois Desmare, a Belgian national rally driver, has invested Frw55 million in an insurance business and a call centre in Rwanda. Desmare, Chief Executive Officer of Afrika Risk, controls a major stake in the insurance company and UniCall, a call centre with offices at Hotel des Milles Collines. UniCall provides telecommunication services for the business community, specialising in telephony, Internet and broadband solutions. It will provides web hosting facilities. Afrika Risk, in partnership with RVA SA, a Belgium based insurance broker, provides insurance consultancy services, valuation and social security to small and medium enterprises. Desmare said that he has intentions to increase investments in ICT and insurances businesses and also expand operations to other East African countries. EAC Common Market talks resume The fourth round of the East African Community (EAC) Common Market talks resumed Monday in Kampala, Uganda, with all member states represented by their High Level Task Force (HLTF) members. However, information from members of the HLTF indicates that negotiators have failed to reach a consensus on outstanding issues that were forwarded for consultations during the Bujumbura talks. Prudence Sebahizi, Rwanda’s Chief negotiator, said there was no substantial progress regarding the outstanding issues from the Bujumbura meeting. Negotiators have failed to agree on issues raised by Tanzania about free movement of persons, the right of establishment and residence and free movement of services. Tanzania also does not agree with the other four member states on the use of national identification documents issued by individual partner states to be used as a basis for identifying citizens of the community to facilitate free movement of the holders. However, during talks in Bujumbura last month, there were signs of progress after the HLTF delegates broke the deadlock over contentious issues of rights of residence and establishment. Tanzania lifted its objections to the inclusion of the article on right of residence in the proposed protocol. Ends