Business round-up

KCB cross lists Following approval from the Capital Markets Advisory Council (CMAC) of Rwanda, the Kenya Commercial Bank (KCB) on Thursday launched the cross-list of its shares on the Rwandan bourse. This means that Rwandan investors since Thursday have the opportunity to buy shares in Kenya’s banking giant from existing shareholders without necessarily going to Kenya, Uganda or Tanzania. KCB cross-listed 2.2 billion ordinary shares each valued at Kshs1.00 (Rwf7.4), making it the first company to have its shares on the Rwanda’s Over-The-Counter market. Currently, the country’s nascent capital trades corporate bonds only. This also made it the first company to list on the four stock exchanges within the East African countries after it was listed in Kenya, Uganda, and Tanzania. Though Burundi is yet to acquire a stock market, the KCB Rwanda Managing Director, Maurice K. Toroitich said that the bank plans to open operations there as soon as it opens up a branch. Dutch agency to strengthen local export capacity The Dutch centre for promotion of imports from developing countries (CBI) is to develop Rwanda’s export capacity. The programme executed in a partnership with the Rwanda Private Sector Federation (PSF) is being conducted by the Dutch Ministry of Foreign Affairs. It is aimed at contributing to the equitable economic development of selected developing countries by providing export marketing and management to Small and Medium Enterprises (SMEs). “The programme focuses on export promotion for the developing countries which is crucial at this stage of Rwanda’s development,” said Frans Makken the Dutch Ambassador to Rwanda. CBI will also provide services in various areas including market information, training, and export coaching and support service development. The cooperation between CBI, Rwanda Development Board (RDB) and the PSF has an initial cost of $1.5 million running for two years, forming a framework for capacity building of human resources in RDB and PSF particularly trainers, experts and market intelligence officers that will be available to both RDB and PSF as support network. Leasing industry grows by 20 percent Leasing in Rwanda has grown from $25 million (Rwf14 billion) to $30 million (Rwf17.1 billion since June last year. According to information from the International Finance Corporation (IFC), the industry is now valued at about $30 million, representing a 20 percent growth. Information from the member of the World Bank Group also indicates that the monetary value of the industry covers 115 leases, which translates into $260,870 (Rwf489.5 million) per lease on average. According to Brian Kirungi, the IFC Team Leader and Legal Specialist, there is tremendous progress compared to three years back when the market value was about $3 million (Rwf1.7 million). Statistics show that the transport sector takes the biggest share of the leasing market with 62.9 percent. Agriculture, tourism, and medical services have the least market share valued at 0.9 percent, 0.29 percent and 0.19 percent respectively. IFC statistics indicate however that Kigali city constitutes about 90 percent of leases largely provided by FINA bank and Commercial Bank of Rwanda (BCR) as the service pioneers. With the help of the Association of Micro Finance Institutions (AMIR), IFC is trying to spread leasing upcountry for Small and Medium Entrepreneurs (SMEs). Central Bank approves KCB’s four branch opening Kenya Commercial Bank (KCB) in Rwanda has been approved by the central bank, to officially launch operations, with the opening of four branches simultaneously. The bank’s Head of Business, Gloria Nyambok said that the financial institution is currently shifting gear from one branch to a growth and expansion phase, which involves the opening of four branches across the country. This follows receiving a go ahead from the regulator, the National Bank of Rwanda (NBR) on Monday. She also added that that the four branches would be open by end of July this year in Remera and in upcountry districts of Huye, Rubavu and Rusizi. The move makes KCB the first bank to open several branches simultaneously. The bank which is a subsidiary operation with the head offices in Nairobi, Kenya officially launches on Friday. Scrap association decries budget proposals The Rwanda Scrap Association (RSA) has expressed disappointed with the 2009/10 budgetary proposal to ban exportation of scrap aluminium, steel and copper wire and cables. Francis Twahirwa, one of the members of RSA, said that members of the organisation have received a scare because they are worried they could loose their daily earnings once the proposals are implemented. The 2008/09 budget proposals that the ban is to halt vandalism and is meant to prevent uprooting of certain infrastructure like electric cables which is rampant in the region. This is one of the proposals in the budget estimates that have been agreed upon at the EAC level, as a measure to remedy any adverse effects of the establishment of the EAC common external tariff structure. RSA has up to 47 members with each member generating an average profit of Rwf4m per year. Ends