Fuel prices fall as MTN hits a million subscribers

For the second time in just a month, government has announced a countrywide reduction of petrol and diesel prices by 13.6 per cent from Rwf875 (average) to Rwf756 per litre. Last month prices dropped by 4.8 percent—from Rwf924 to Rwf880 for petrol and Rwf870 for diesel. In the international market, reports show that oil prices continue to fall. They are being pucheddown by the expectation that turmoil in the global financial sector will lead to a wider economic slump accordingly to pump prices for petrol and diesel this week were reduced from Rwf880 and Rwf870 respectively to Rwf756. KCB set to open this month with $15m investment Kenya Commercial Bank (KCB), Kenya’s largest bank by market share, is set to start operations in Kigali with investments worth between $10m (Rwf5.5 b) and $15m (Rwf8.3b). About two months ago KCB was licensed to operate in Rwanda after paying Rfw5b minimum capital as required by the National Bank of Rwanda (BNR) for a commercial bank to operate. Since then, KCB allocated $1m (Rwf553.8m) for refurbishing the Kigali branch which is expected to be open for business by the third week of November, according to Martin Oduor-Otieno, the Group Chief Executive Officer. Odour estimates KCB investment in Rwanda will increase to around $15 m (Rwf8.3b) in a short term. The bank is targeting two branches within Kigali before the year ends and a total of eight branches across the country in six months. KCB’s entry, into the Rwandan market means that competition in the banking industry will sharpen, and this is likely to strengthen the sector, as well as give private investors better and more funding alternatives. This means competition to Commercial Bank of Rwanda (BCR) and Rwanda Housing Bank, the only two institutions in Rwanda with mortgage portfolios. African Export –Import Bank to boost local investment African Export –Import Bank, a financial institution that promotes exports and imports from Africa has expressed interest in boosting the financial capacity of Rwanda’s investors. Speaking to The New Times, Jean–Louis Ekra, the president of African Export –Import Bank, said as one of the shareholders of the bank, the Rwandan business community can easily access financial services offered by the bank. Ekra said that senior officials from the bank, including the president himself, had visited Rwanda five months ago and held discussions with Rwandan investors, “to see how we can assist boost local investment in the country.” “The bank had also done feasibility studies in hotel business and transportation sector where it intends to invest next year,” said Ekra. African Export–Import Bank is a pan African Eximbank with a mandate of promoting intra and extra African Trade. The Bank has an authorized share capital of $750m. Apart from governments, its shareholders include African multinational institutions, as well as African, and non-African financial institutions and private investors. Blue to open eight branches Blue Financial Services Rwanda, has a target of opening eight branches across the country next year, the country manager has said. With only one branch in Kigali, the bank plans to open another branch before the end of this year. Gert Venter, the Country Manager said that the bank is targeting eight branches in the near future. The subsidiary of South Africa based Blue Financial Services was launched in Rwanda in September 2008 as a non deposit taking Micro Finance Institution (MFI). Blue currently offers one year personal loans relating to home improvement, and education loans. The company also offers one to three months salary advances. But Venter is optimistic SME financing will be introduced in Rwanda the same way it is in South Africa, with varying interest rates depending on the client’s risk profile, credit worthiness and ability to repay the loan. Inyange industry in $27m expansion plan Inyange Industries, a beverage company, is constructing a $27m (Rwf14.9bn) plant to increase its output from 2976 litres per day to 360,000 litres averagely. The move is intended to meet and sustain the demand. Nils Zirimwabagabo, the Industry Expansion Project Coordinator, said the expansion is also aimed at widening the industry’s market base beyond Rwanda—thus benefiting from the East African common market. The new plant near the proposed Free Trade Zone (FTZ) will see production of water, milk, juice products at about 5,000 litres per hour at full capacity, with plans to process Ultra-High-Temperature (UHT) milk and long-life juices for export. Zirimwabagabo said the new plant will be challenged with raw materials especially fruits for juices, as the plant seeks to increase its product line. The new plant is expected to start operating by mid next year, and the current factory located at Gikondo industrial area, will move to a new location on 4.3 hectares of land in Masaka, 19 km from Kigali City. MTN-Rwanda hits 1 million subscribers MTN Rwanda, on Monday announced the registration of its one millionth mobile phone subscriber. Aphrodise Sebahinde, a farmer, bought his MTN line from Kabarondo on October, 21. In recognition of this historic and significant milestone, MTN rewarded Sebahinde with one exotic cow, a grass cutting machine and a pumping spray machine to boost his farming. In addition, Sebahinde was also awarded a new house, monthly airtime for life, a pedal bicycle and an array of scholastic materials for his daughters. This was after the mobile telecom company, had newly constructed a mast in Rukara of the 200 masts countrywide. A statement issued by MTN says that in the past 10 years MTN Rwanda has invested over Rwf80b to build and upgrade infrastructure in Rwanda. At an unveiling ceremony of Aphrodise Sebahinde the one millionth subscriber, MTN Rwanda’s Chief Executive Officer (CEO) Themba Khumalo said the company’s mobile and Internet services can now be accessed by 80 percent of the country. He added that reducing call tariff rates had also attracted more Rwandans to subscribe to the MTN network. Local calls were in the recent past reduced by 35 percent while international calls were reduced by 60 percent respectively. Ends