BUSINESS ROUND-UP

Seven companies interested in product quality mark Seven local companies have expressed interest in the acquisition of the Rwandan Bureau of Standards (RBS) product quality mark. Some of the companies include; Socar Kanunu Coffee, Rwanda Coffee International Market, and Duhamic which seeks to certify only biscuits. Once certified, the companies will join Sulfo industries and BRALIRWA who have already attained this mark for one of their products including Nil mineral water and Mutzig beer respectively. It costs a company an application fee of Rwf100,000 for the certificate where as the license fee depends on the total output of different companies and so is the license fee. The quality mark that was launched recently guarantees the product’s quality and safety toward human health. This creates assurance and confidence from the consumers which the products into accessing the local and international market. Rwandair goes to Gisenyi Rwandair launched flights from Kigali to Gisenyi thrice a week. The company’s Executive Chairman, Ambassador Gerald Zirimwabagabo said that the new route (to Gisenyi) only takes 30 minutes. He hoped that the flight could provide a shift transport service for tourists since the destination is a business centre which attracts tourism. Zirimwabagabo also revealed that Rwandair will soon fly from Kigali to Kamembe as well as launch other flights connecting other districts to the capital. With plans of launch a Musanze – Kigali flight, he said that increased flights will provide easy and quick transport of people and goods. Rwandair flight carries 30 people for the Kigali-Gisenyi route, with a return ticket costing $120. The Gisenyi airstrip having acquired necessary requirements to facilitate the flights, the Director of the Airstrip, Robert Mugabe said that there is still a rehabilitation process still going on to raise its standards. RCCA harmonising with regional aviation laws The process to harmonise Rwanda Civil Aviation Authority (RCAA)’s jurisdiction with that of the East African region will be complete this month, a top official has said. The Director General of RCAA, Richard Masozera, said that Rwanda’s aviation body is on track with the process of integrating its, Civil Aviation Act and Civil Aviation Security, with those of the East African Community (EAC) partner states. He said that a consultant was hired from the International Civil Aviation Organisation (ICAO) to work on the laws that will put RCAA on international standards. The consultant works on given templates from all the EAC partner states. Masozera however said that as far as regulations and the draft law are at par with those of EAC partner states, the biggest challenge which is not unique to Rwanda, is how to enforce them. After the harmonisation of EAC civil aviation regulations the bloc will set up the Civil Aviation Safety and Security Oversight Agency (CASSOA) for ratification by May this year. Partner states will also consider revising air tariffs which are favourable to EAC citizens. After the signing the protocol, it is expected that partner states will be able to share available resources in equitable manner, especially human resource. Fruit farmers to benefit from Inyange expansion Fruit farmers are to reap big from the expansion of ‘Inyange’ industry, with ready market for their produce. This is because the company is to offer them supply contracts to sustaining the growth in its production. Inyange’s expansion project is worth $27 million (Rwf14.9 billion) and will see production increase from 2,976 litres to 360,000 litres per day on average, across all products. This means 15,000 litres of juice and liquid products will be produced per hour. Maracuja and long-life juices will be the new products added to the company’s production profile. Currently, Inyange industry produces orange, mango, and apple juices, milk and mineral water. According to Nils Zirimwabagabo, the company’s Project Coordinator, the proposed production of maracuja, which is widely demanded and other long-life juices requires a steady supply of fruits.” He said that the company is currently trying to contact farmers in Nyamagabe and Rusizi about the programme to ensure supply before production commences. Peter Muvara, the Rwanda Horticulture Development Authority (RHODA) Chairman, said that the move would add value to horticultural product, thus improving exports. RHODA was recently merged with other institutions to form the Rwanda Agricultural Board (RAB). This comes at a time when government is urging investors to venture into fruits processing for export. Stringent regulatory environment cost Rwanda Rwf 55 billion in 2007 Rwanda’s economy incurred regulatory compliance costs of Rwf 55 billion in 2007, which is approximately 3 percent of the country’s Growth Domestic Product (GDP). This means that the money was lost while investors and entrepreneurs were trying to compile with the business regulatory process, according to the recently launched report, ‘Cutting the Costs of Red Tape for Business Growth in Rwanda’. The report was commissioned by the Private Sector Federation (PSF) and funded by GTZ a German organization. PSF’s Secretary General Emmanuel Hategeka said that the study will help show the challenges faced by the business community in Rwanda, thereby calling for an action plan to solve some of these problems. The survey was conducted last year based on a country-wide sample of 400 formal-sector businesses ranging from large corporations to small enterprises. The report continues that the regulatory costs are more than half of the government’s education budget for 2008 which was Rwf103 billion, almost equal to the health budget of Rwf 58 billion and five times higher than the budget provided for under industry and commerce which is Rwf 11 billion. The report also reads that interactions with Rwanda Revenue Authority (RRA), is still a problem to business people further increasing tax-related regulations. Business registration and compulsory business closure during business hours because of public meetings and other requirements has been cited as the second most likely areas to be identified as troublesome and time consuming. Ends