Business round-up

Donors applaud 1st Semester economic performance. Rwandan donors like African Development Bank, Belgium, European Commission, Germany, Netherlands, the United Kingdom and the World Bank, recognized Rwanda’s remarkable progress in implementing its national development strategy- the Economic Development and Poverty Reduction (EDPRS) in the first six months of this year. “Regarding our assessment, we came jointly to the conclusion that- we have seen good progress during the first half of the year. We have seen sound macro –economic management in difficult times internationally putting into consideration the on-going global financial crisis,” said Dr. Heike Henn, the head of German Development Cooperation on behalf of the development partners. He said this while addressing a press briefing on Thursday at the end of the three day joint review meeting between the development partners and government at the Ministry of Finance. On his part, finance minister James Musoni said that “It has been a culture to have an open discussion with our development partners, this spirit should continue because we have reaped much from it,” It’s reported that the Agriculture sector propelled a 9 percent economic growth in the first semester of this year. Despite the impact of the global financial crisis the economic cluster registered an impressive 78 percent target in this year’s EDPRS report. Tax revenues likely to go up As the economy steadily continues to recover from the setbacks of the global economic crisis, there is hope that the country’s revenue collections will increase in the last six months of the 2009/10 fiscal year. According to Finance Minister James Musoni, there are signs that the economy is steadily recovering after a slow start to the calendar of 2009. In reaction to the tax revenues registered by Rwanda Revenue Authority (RRA), Musoni said that despite the crisis hugely affecting the exports from the country and the service sector becoming less vibrant compared to l2008, there are chances that the tax body will surpass its Rwf360bn target. In the first quarter under the EAC fiscal year, RRA managed to collect Rwf86.2bn, 1bn more than the set target of Rwf85.3bn. RDB, UTEXRWA to Jointly Promote Textile Rwanda Development Board (RDB) and UTEXRWA Rwanda’s only Textile Company this week entered into an arrangement where Rwanda’s textile products will be promoted abroad as the company plans to go international next year. “RDB has been involved in promoting coffee and tea which are of good quality to the outside world and we think it can help us do the same with our textile products,” said Raj Rajendran Utexrwa’s Managing Director. Rajendran said that when they go commercial, they will supply suits, mushanana (a traditional women outfit) to the domestic market why the international market will receive cotton bags, malaria bed nets among others. Rwanda’s cargo through Mombasa Port drops in first half of 2009 Rwanda’s export and import cargo through Mombasa port dropped by 12.3 percent to 133,168 tonnes in the first six months of 2009 from 151,780 tonnes in the same period last year. This was reveled by port’s management. Authorities attributed the decline in Rwanda’s trade volume to the effects of the global recession that caused the country’s major export destinations to cut demand in the first two months of the year 2009. “The reduction at the beginning of the year can generally be attributed to the global financial crisis which led to a slowdown in business: explained William B Mtego, Kenya Ports Authority (KPA) Resident Regional Representative in Kampala. In comparison with other countries since the beginning of the year, Rwanda ranks second in doing business at the port in East Africa with 5.9 percent, while Uganda leads with 77.0 percent of the transit market share, Tanzania at 5.5 percent while Burundi lies back with 0.6 percent. Ends