Business round-up

Rwf1.5b in social benefits The Social Security Fund of Rwanda (SSFR) has paid a tune of Rwf1.5 billion in benefits to cover pension and occupational risks during the first quarter of this year. The payments represented a 66.6 percent increase compared to other reporting periods, which was attributed to the computerisation of declarations that were missing in the database to facilitate benefits processing. The amount paid (Rwf1.5 billion) catered for 25,975 beneficiaries; 24,440 people received Rwf1.46 billion as pension and 1,535 employees were paid Rwf38.4 million for occupational risks. The report also indicated that the number of employees also increased from 258,457 in 2008 to 271,505 as of the first quarter— representing an increase of 5 percent. This follows an increase in the number of employers from 6,676 in 2008 to 7,290 employers as of the first quarter, representing an increase of 9.2 percent. Food prices rising in Kigali Prices of foodstuff in the two biggest markets; Zinia and Kimiroko in Kigali have soared as a result of the rainy season, which has halted harvesting, The Business Times mini survey reveals. Though prices doubled since the Easter season, some traders claim that the heavy rains being experienced across the country, have led to rotting of the perishable commodities, also a result of the delay in the delivery to the marketplace. The traders said: “This causes commodity scarcity in market places hence high prices.” According to the survey, prices of Irish potatoes have increased to Rwf230 per kilogramme from Rwf130 at the end of March while a kilogramme of Matooke is selling at Rwf130 per kilogramme compared to Rwf120. Other commodities like sugar and beans have also gone up by Rwf100 and Rwf200 respectively. Vegetables are the ones which have been greatly affected by heavy rains, causing scarcity on the market. PSF, foreign investors seeks to reduce business barriers The Private Sector Federation (PSF) last week held the first ever dialogue with Rwanda’s foreign investors, to gather feedback on how to improve the business environment. The dialogue dubbed; “Foreign Investors Forum (FIF)” will be held quarterly seeking to encourage close networking on business issues. Robert Bayigamba, the PSF Chairman said that the federation looks forward to engage members on the challenges of doing business as well as getting advices. Some of the challenges highlighted include; over regulation by the authorities, one year VISA granted among others. The federation assured the investors that it is going to engage concerned parties in sorting out the problems. Kicukiro employers advised on workers’ social benefits Kicukiro district employers have been asked by the Social Security Fund of Rwanda (SSFR) to recognise that workers’ social benefits are rights employees are entitled to. This was made during a sensitisation workshop at Hilltop hotel aimed at educating business owners and employers on the benefits of social security as well as increasing coverage in the informal sector. However, though business owners acknowledged the importance of social contributions for workers’ welfare, they said that the benefits directly affect business profitability. The social security law states that social benefits must constitute eight percent of the gross salary of the employee. An employer contributes five percent while the employee pays the remaining three percent. Serena hotels awarded food safety certification Both Kigali and Lake Kivu Serena hotels have received the international certification for food safety and hygiene from SGS, an international company dealing in independent quality management systems certification. The certification, valid for four years, makes the Serena hotels the first and only hotels in Rwanda to have gained such recognition. Mugo Maringa, the Serena Hotel Kigali Country Manager, said that the achievement should also encourage other hotels to undergo the same exercise as it will boost the hotel industry in the county. To get certified, the hotel had to undergo a rigorous inspection process encompassing the quality of hygiene standards covering areas such as basic and personal hygiene. Universities to offer capital markets course The Capital Markets Advisory Council (CMAC) in collaboration with the Ministry of Education (MINEDUC) is developing a capital markets degree programme. Once complete, the programme will be introduced in all professional universities offering business studies with the aim of protecting investors through public education and also equipping Rwandans with knowledge concerning the financial products. Olivier Kamanzi, Executive Deputy Director of CMAC said that because of the lack of skilled people in this sector, the authority is working with the Rwandan diaspora to extend their expertise to the Rwandese. The capital market, launched in January 2008, is yet to receive equity stocks on the Rwanda Over The Counter (ROTC) market. It has listed three treasury bonds and one corporate bond, attracting Rwf634 million in 50 deals on the secondary market and Rwf15.25 billion on the primary market. EAC Monetary Union on course The establishment of the East African Community (EAC) Monetary Union is on course, the Governor of the National Bank of Rwanda has said. François Kanimba, said at the Twelfth Meeting of the EAC Monetary Affairs Committee (MAC) held at Kigali Serena Hotel, that a consultant to undertake a comprehensive study on the proposed initiative had been identified. Following a presentation on the progress in preparing for the establishment of the Monetary Union, Kanimba said: “Our role today is to consider the report of our experts articulated on various on-going activities related to the financial integration process of the East African Community.” Some of the financial integration activities include; macroeconomic convergence, monetary policy, legal and regulatory framework for banking supervision, development of financial markets and payment systems in the EAC partner states. Rwandatel partners with CISCO, Seven Seas Rwandatel, the country’s second largest telecom operator, has partnered with CISCO system and Seven Seas Technologies to access unified communication and other enterprise products for bolstering its network. The Rwandatel Chief Executive Officer (CEO), Patrick Kariningufu, said that this will enable customers get significant value from the better voice and data communications. “It will give us an opportunity to deliver better services to our customers such as high speed internet, reliable network coverage and high speed data.” Rwandatel offers voice and date communications solutions that include; fixed telephony, mobile telephony, ISP and data communications under it’s and GSM network. Ends