Business round-up

Rwandan Diaspora remittances increase by 19 percent As of November this year, remittances from Rwandans in the Diaspora were estimated at USD128.24 million from USD 103.03 million, according to the Central Bank statistics. This represents an increase of 19.7 percent. Francois Kanimba, Governor of the National Bank of Rwanda (BNR) said that data captured from specialised institutions in money transfer business including Western Union, Moneygram and Money Trans show that USD 32.61 million in 2007 was remitted into the economy compared to USD 25.09 millions in 2006, a 43.4 percent increase. He added that the inflows amounting to USD 98 millions in transfers from the Diaspora are already registered as of November 2008 and may reach USD 39 millions by end 2008. This would be an increase of 20 percent compared with Diaspora transfers recorded in 2007. According to reports on foreign exchange operations regularly received from banks, transfers from the Diaspora reached USD 28.3 millions in 2007 against USD 17.4 millions in 2006, a 62.6 percent increase. As of November this year, the amount of transfers was USD 33.58 millions and it is expected to rise to USD 37 millions by end December 2008. However, formal channels for Diaspora transfers didn’t capture all the information. It’s also reported that most transfers are passing through informal channels like cash carried across borders in pockets. The transfers were estimated basing on the purchases of Forex Bureaus from Rwandan residents. Statistics also show that the informal transfers are still high with the central bank believing that the transfers may be more than the estimated. The main reason might be the high level of charges applied by formal operators. Gov’t to establish hides, skins demonstration centre Government through the Centre for Support to Small and Medium Enterprises in Rwanda (CAPMER) which was recently merged with other agencies to form the Rwanda Development Board (RDB) is to establish a hides and skins demonstration centre next year. The centre whose proposed location is in Kabuga, in the outskirts of Kigali City is to improve the quality of leather products in the country. John Ndikuwera, Head of Agri-business Department in CAPMER, said that the centre will be charged with checking defects on hides and skins for export. He revealed that the establishment of the centre is under the huge support of the United Nations Industrial Development Organisation (UNIDO). He added that, “We are currently looking for the necessary equipment for the centre.” The centre’s construction is expected to commence next year. The move is seen as an answer to hides and skins dealers who have been seeking government support to improve the quality of skin products. PSF targets over 100 entrepreneurs for guarantee funds contest The Rwanda Private Sector Federation (PSF) is targeting over 100 winners in the Business Plan Competition (BPC) in the coming years. Antoine Rutayisire Manzi, the PSF’s Director of Entrepreneurship and Business Growth said that the targeted number would see at least 150 entrepreneurs benefit from training and 100 participants as winners each year. This is aimed at increasing the number of young entrepreneurs in Rwanda and the performance of the private sector which is an economic backbone. He added, “The move is backed by the positive impact of the pioneer programme.” “They have created employment and revenues to government treasury, which all contributes to Rwanda’s economic development,” he explained during the awarding ceremony of the third BPC winners. Statistics about the previous 30 winners in the last two contests indicates that there are 17 projects actively operational through providing employment, paying taxes among others. These projects have created about 520 permanent and temporary jobs. He however cautioned that this will only be possible with the support of stakeholders, since the World Bank (WB) support programme has come to an end. The Permanent Secretary in the Ministry of Trade and Industry, Antoine Ruvebana, expressed government’s support for the programme since it facilitates private sector development by capacity building, providing access to finance and developing their business acumen. Nyagatare dairy plant starts production The Nyagatare dairy plant in the Eastern Province this week started its operations, the plant’s acting Managing Director recently revealed. The 35,000 litre capacity plant was largely funded by Umutara Community Resource Infrastructure and Development Project and it is said to have cost over Rwf1billion. The project is a 10-year programme and has the target to activate an equitable process of economic, human and institutional development consistent with mobilisation and efficient use of human and natural resources. Cyril Sinayobye, acting Managing Director of the Eastern plant said that the production will depend on the demand particularly from Kigali which he said comprises 90 percent of their market. Ends