Business round-up

Rwandair cuts Entebbe flight fares by 25 percent The national carrier, Rwandair has cut flight charges between Kigali and Entebbe by 25 percent or USD50 (Rw28,250) for a return ticket. The airline said that the new charges of USD 150 (Rwf84,750)—tax excluded, have been introduced as a special customer appreciation program due to a positive reception by its clients. The promotion will run until the end of the year.The promotion is also planned to be introduced on other flights. Gisovu tea factory purchase deal cancelled The Government of Rwanda has pulled out of the deal to sale its 60 percent stake in Gisovu tea factory citing breach of contract by George Rubagumya who represented Olyana Holding, the buyer. The move comes barely months government had signed a sale purchase agreement with the American liability firm, allowing it to acquire shares in the tea factory and plantation. “The law stipulated that none of the shareholders would sale shares before operating for 10 years or finishes the implementation of the business plan,” Anthony Butera, Director General of Ocir-Thé. According to Butera, the President of Olyana holdings, Rubagumya, decided to sale 75 percent shares of Gisovu tea factory to an Indian Company called McLeod Russel before it had acquired it (before payment). Rwanda to benefit from Rwf26b AfDB poverty reduction fund African Development Bank Group through concessionary window, African Development Fund has approved USD47 million (Rwf26 billion) for poverty reduction in Rwanda and Burundi. The funds will finance the Bugesera Natural Region Rural Infrastructure Project (Bugesera PAIR), a project with an objective of improving food security in Bugesera region through increasing agricultural production. The multinational development programme will boost agricultural products by irrigating 2000 hactares, using Lakes Rweru, Cyohoha and Akanyaru marshlands which are shared by Rwanda and Burundi. The funds will also help in marshland management and rehabilitation. Construction of new Cimerwa plant begins this year Cimerwa, Rwanda’s largest cement company by market share will start construction of its Rwf70 billion second cement plant before the year ends after finalising consultations on the project. Cimerwa, a subsidiary of Rwanda Investment Group (RIG) — consortium of some 43 local investors, is planning to boost its cement production capacity to meet Rwanda’s increasing cement demand that is triggered by the booming construction sector. The new factory will be constructed by Pengfei Group Co. Ltd, a Chinese firm and is expected ready by June 2010. The factory will be located in Cyangugu, the western province with an annual production capacity of 600,000 tonnes of cement bags compared to 100,000 tonnes being produced currently. 290 firms yet to certify their financial statements Large taxpayers have failed to meet a government demand of certifying their past financial statements with the Institute of Certified Public Accountants of Rwanda (ICPAR). Information from the Rwanda Revenue Authority (RRA) shows that as of September 16, 2009, only four out of the 300 large tax payers had declared their certified financial statements for the fiscal year 2008 even when the deadline draws near. The deadline is December 31, 2009 after extension from June 30, 2009. The delay in certification was attributed to the high certification charges. “Members have complained that they are charged lump sum figures ranging between Rwf2 million and Rwf15 million just to certify the accounts,” it was reported. The requirement for certification of financial statements is provided for by law No.16/2005 of 18/08/2005 on direct taxes. It stipulates that failure to meet the deadline results into a penalty of Rwf500,000 for large tax payers, Rwf300, 000 for medium tax payers and Rwf100, 000 for small enterprises, in addition to a 0.5 percent net payment per month. 150 Rwandan companies invited for UMA The Rwanda Private Sector Federation (PSF), the umbrella body of the private sector has invited 150 local companies to attend the 17th Uganda Manufacturer’s Association Trade fair in Kampala from October 6 to 12, 2009. Ephrem Karangwa, the Promotions and Fairs Manager at PSF, said that 150 potential exhibitors have been invited although some exhibitors will attend the trade fair without passing through the federation. The PSF says that participation in such international events helps the local businesses to gain international exposure and share experience with other established companies. Karisimbi to host Comesa climate change observatory centre The modern high altitude antenna on Mt. Karisimbi will house a regional climate change observatory centre due to the strategic location and the technology in the facility, the project coordinator said. The Karisimbi Project is positioned between River Nile, River Congo and the Albertine Augustin Iyako said that discussions between Rwanda and the Comesa about the implementation of the project will commence in November this year. Comesa has agreed to employ a meteorological expert to examine the viability of the project. He added that the climate change observatory centre will involve a weather centre, seismic monitoring unit, hydrology unit, geothermal unit, atmospheric emission and a precipitation monitoring unit. It will also monitor global climate change and water levels. Other important regional projects to be hosted by the 4507m antennae include communication navigation and surveillance, Air Traffic Management (CNS/ATM) system for Comesa countries as well as acting as a hub for VSAT Closed User Group (CUG). Ends