BUSINESS ROUND-UP

BK to open more branches It was reported this week that Bank of Kigali (BK) plans to open six more branches across the country by the end of the year to consolidate its leadership position in Rwanda’s banking industry. The Bank’s Marketing Manager, Januario Mucyo, announced that since January 2010 BK has opened six branches, bringing the number of branch networks to 24 branches.He also said that BK, which is state-owned, is expanding to cater for the growing demand of banking products from its growing client base. “In order to bring our financial services closer to the people, we shall soon open branches in Nyamirambo, Kirehe, Kibungo, Kabarole, Gakenke and The Manor Hotel. This will bring the number of branches to 30 before the end of this year,” Mucyo said. CRB in a countrywide awareness campaign Rwanda’s Credit Reference Bureau (CRB) is planning to launch a countrywide awareness campaign to sensitize the population about the benefits of the bureau. The CRB is a new concept responsible for providing accurate information on borrowers’ debt profiles and repayment history, an activity currently undertaken by lending institutions. “The campaign will soon start and will focus on the benefits that CRB provides to the people and how it can make an impact on business,” said Paul Pavlidis the Chief Executive Officer of CRB. The campaign will be spearheaded by stakeholders such as the National Bank of Rwanda (BNR), the bankers’ association, insurance companies and microfinance institutions. Pavlidis said that the credit history of borrowers is important and should be used as an asset on their part; hence the need to speed up the campaign. Fuel prices drop Fuel Pump prices on the local market dropped by 0.5 percent for petrol and 0.4 percent for diesel, i.e., from Rwf 925 to Rwf 920 and Rwf 917 to Rwf 913 respectively, as a result of declining prices on the global market. A mini-survey carried out by the Business Times indicates that since the weekend, filling stations in Kigali have reduced prices by Rwf 5 for petrol and Rwf 4 for diesel. However, there was no change in filling stations upcountry. However, on the international market oil prices rose sharply on Monday, approaching $ 80 (Rwf 46,580) following the closure of a key pipeline carrying crude oil in key countries. Yesterday however, crude oil was selling at $ 77.2 (Rwf 44,833). Rwanda sets mobile phone payment guidelines The Central Bank set guidelines for mobile phone payment systems that will cater for safety, integrity, efficiency and reliability according to a notice on its website. With the aim of promoting safety and effectiveness of mobile payment schemes, the National Bank of Rwanda is carrying out research to ensure that the company’s infrastructure is strongly protected and secured. Currently it is only MTN Rwandacell that is licensed for mobile payments. Information from NBR indicates that currently the MTN Mobile Money only operates in local currency. However, should companies wish to extend their transactions across the board, the NBR would not restrict them to local currency. Under mobile payment system, account holders use two separate account systems; the electronic one running under the mobile money company system that should be interoperate among telecom institutions, while the banking account authorises the ‘Trust Account’ for the operator. BRD’s trade finance transactions hit Rwf 2bn Rwanda Development Bank (BRD) has said that its trade finance transactions have hit Rwf 2 billion, an indication that the business community is progressively signing up to the facility to engage in international trade.Launched in March this year, BRD’s trade finance facility provides financial support to the business community involved in international trade. “Exporting and importing requires greater financial flexibility and reserves than buying or selling locally. The faster and easier the process of financing an international transaction, the more trade is facilitated,” Innocent Bulindi, the Director of Finance at BRD told Business Times on Tuesday. The facility also facilitates local importers with medium and long-term loans as well as import letters of credit that act as a guarantee for unfamiliar foreign suppliers. Rwanda, Uganda companies to form sales partnerships Rwandan and Ugandan manufacturers are set to meet in Kigali in a bid to bolster their business relations through a solid partnership and platform. The mission, which is arranged through MarketLinked program, will strengthen the corporation between businesses in the region and offer business opportunities between the two neighboring nations. “The interaction between Ugandan and Rwandan companies will help them make profits and realize business opportunities for both countries,” said Robert Moogie, the export development program manager of tradelink. There are at least 60 Rwandan companies that have confirmed participation in the upcoming conference. A team of 11 companies from Uganda will be in Rwanda from September 20 – 23, 2010 to bolster business relations with their counterparts. “It is important for companies in all our member countries of the East African Community to appreciate that the EAC Common Market is a reality and hence make the most of it by building business relations through formal contact with their counterparts across the community for sustainable business partnerships,” explained Moogie. MarketLinked is a joint partnership initiative between Ugandan-based Irish company, Traidlinks, and the Uganda Export Promotion Board (UEPB). Ends