Business round-up

Mining sector targets USD 100m Rwanda’s mining sector is targeting USD 100 million (Rwf56.4 billion) from its minerals this year. The revenues will represent a 7.5 percentage increase of last year’s mineral earnings of USD 93 million (Rwf52.3 billion). It is also only 8.3 percent short of achieving the 2012 target of USD 109 million (Rwf61.4 billion) stipulated in the 2008 monetary statement. The State Minister of Environment and Mining, Vincent Karega, said that USD 100 million is a moderate target due to the persistence of the global financial crisis which caused about a 30 percent drop in the prices of wolfram and cassiterite on the international market. Rwanda mineral earnings are derived mostly from cassiterite, coltan, wolfram, and gold. These key minerals fetched USD 70.6 million (Rwf93.4 billion) in 2007, representing 40 percent of the total national exports revenues. Cassiterite, a tin oxide mineral (SnO2) dominates in revenue generation, beating other key and highly valued minerals such as Wolfram (FeMnWO3), Coltan and Gold (Au). As of October, 2008, the mineral fetched revenues to the tune of USD 37.6 million (Rwf20.5 billion) from 3.7 million kgs extracted. FDI triple to Rwf151.1 billion The inflow of operational Foreign Direct Investment (FDI) registered in the country have increased by 65 percent to Rwf151.1 billion in November last year compared to Rwf52.8 billion recorded in 2005, figures from Rwanda Investment and Export Promotion Agency (Riepa). Riepa that merged with other agencies to form the Rwanda Development Board (RDB) attributes the increase in investment inflow to the creation of a One Stop Centre (OSC) in the agency and the doing business reforms that were embarked on. It however noted that there have been fluctuations in the investment trend since 2002. Information further shows that a big chunk of FDI into Rwanda amounting to Rwf134.6 billion originated from Asia, representing 89 percent of the total volume of investment. Investments from Africa contributed 6 percent of the total FDI equivalent to Rwf9.43 billion, North America and the European Union are said to have a contributed Rwf71.2 billion, representing three percent and two percent respectively. Considering investment distribution by sector, information reveals that hotel sub-sector contributes more than other sectors with 66 percent of the value of total operational projects, equivalent to Rwf146 billion. Rwanda not very affected by global financial crisis Rwanda has hardly been affected by the impact of the global financial crisis though she felt a slight pinch through reduced tea prices and declining remittances, as revealed by a top government official. In October last year, Rwanda set up a commission to monitor the financial trends to control the possible impact of the global financial crisis on the Rwandan economy. The commission comprises representatives from Rwanda’s different financial institutions including commercial banks, Micro-Finance Institutions (MFI’s), insurance companies, Capital Market Advisory Council (CMAC) and the Social Security Fund of Rwanda (SSFR). John Rwangombwa, the Permanent Secretary (PS) in the Ministry of Finance and Economic Planning said that the committee sent the first report and analysis in line with expectations last month. He said that immediate impact on the economy was not anticipated at the beginning of the financial crisis since Rwanda’s economy is small and not fully integrated into the world economy. However, mid last year the government anticipated that if it persists in the long run, Rwanda’s economy was bound to suffer negatively particularly through reduced export revenues, tourism recipes and remittances. The global financial crisis which led to the collapse of some large international financial institutions has also resulted into a global economic recession. UTEXRWA to invest USD 6m in treated mosquito net production Usine Textile du Rwanda (UTEXRWA), the only textile industry in Rwanda is planning to manufacture mosquito nets with an initial investment worth USD 6 million this year. Company management says that investment in mosquito nets is part of the company’s efforts to diversify the company’s product line and Rwanda exports. The company’s Managing Director, Raj Rajendran said that the initial investment will cater for the acquisition of more machines to supplement the existing ones to produce 3 million Insecticide Treated Nets (ITNs) this year. He also disclosed that the company is negotiating with a German company to enhance the required technology in order to start production by March or April, having been promised government support. The company targets 12 million nets for exports by 2011 after additional investments. Bancor changes name to Access Bank Rwanda Bancor S.A, one of the country’s commercial banks has re-branded itself as Access Bank Rwanda, following Nigeria’s sixth largest bank acquiring 75 percent shares in the Rwandan based bank as early as August last year. The remaining 25 percent shares belong to private investors from Rwanda and South Africa. Management says that the new name is a validation of the integration exercise and seamless alignment of the bank’s systems, processes and procedures with the best practises available in the Access Bank Group. Jean Claude Karayenzi, the Managing Director said that the change of names is part of the restructuring in the bank’s services and infrastructure to offer better and more competitive services. Some of the expected improvements soon include electronic banking infrastructure such as increasing the number of ATM machines, introducing credit cards as well introducing Flex Cube, the latest banking software used by international banks. Ends