Business round up

Rwanda’s trade in EAC up 41% The Minister of Trade and Industry, Monique Nsanzabaganwa said this week that trade between Rwanda and its East African Community (EAC) partner states rose by 41 percent in the previous two years, an indication of the immense potential of the region’s trading blockThe official said trade between Rwanda and the rest of the EAC Sates of Kenya, Uganda, Burundi and Tanzania grew to $337.6 million (Rwf 197.1 billion) up from $237.8 million (Rwf 138.8 b) in 2008, Nsanzabaganwa said “These figures are an indication of the immense potential of the EAC trading block and the role it can play in boosting trade for development across the region.” The Minister made the remarks on Friday during the Kigali “Marketers Mixx Up” forum where the Kigali “Quiz Nite” was launched. ‘Ocean 12’ team won the quiz and walked away with a Rwf 1 million prize. EAC discussed safety and standards Member states of the East African Community (EAC) convened in Kigali to discuss standards of products in the region, with an aim to improve cross border trade by using a common certification mark. The proposal is contained in the regional quality infrastructure project of EAC’s national standards bodies, which is expected to support the bloc’s integration through relevant aspects of trade facilitation. During the Evaluation workshop, Bagabe Cyubahiro, the Director General of Rwanda Bureau of Standards (RBS) said “Normally we re-test products from different countries in the EAC, but once technical regulations are harmonised with a single certification mark it will reduce barriers to trade,” The project also seeks to improve the shaping and adaptation of high-quality infrastructure to increase cross-border exchange of goods and services through time and cost saving. PSF, Ugandan firms partner to boost horticulture Players in Rwanda’s horticulture industry are set to benefit from a partnership that was established between Ugandan companies and the Private Sector Federation (PSF) of Rwanda. A team of 11 companies from Uganda was in the country to bolster business relations with their counterparts. Molly Rwigamba, the Chief Executive Officer of PSF was quoted as saying that they have discussed with Uganda Export Promotion Board (UEPB) to identify which priority areas to partner and horticulture is one of them.Rwandan deflation eases to 1.4 percent It was also reported that consumer prices in Rwanda rose 1.04 percent in August from July, slowing the rate of deflation to 1.39 percent from 2.22 percent a month earlier, official data showed last week. Prices of food and non-alcoholic drinks, which account for 54.2 percent of the central African country’s consumer price basket, fell 4.23 percent from a year earlier last month, the National Institute of Statistics of Rwanda (NISR) said. FINABANK optimistic of future after drop in profits FINA BANK Rwanda reported a drop in net profits in the first six months of 2010 attributing it to heavy investments in human resource and infrastructure. The bank’s financial results indicated that net profits dropped by 51.5 percent to Rwf 116.1 million in 2010 from Rwf 240 million the same time last year. In an exclusive interview with the Business Times, the bank’s Managing Director, Steve Caley said that in 2009, the bank made one substantial bad debt recovery, registering an increase in net profits. KCB nominated in African Bankers Awards Kenyan Commercial Banks dominated the African Banker Awards in a shortlist of nominees for the 2010 edition of the Awards, announced last week. Equity Bank Ltd, Kenya, is in the bank of the year category and microfinance institution of the Year, Kenya Commercial Bank (KCB) as the innovative Bank of the year and Renaissance Capital, Kenya as nominee for Investment Bank of the Year. In the region National Bank of Commerce Limited, Tanzania was nominated for best local bank and Uganda’s BRAC Uganda Microfinance in the microfinance institution of the year category. Rwanda targets 20% of global pyrethrum market Government is set to increase its market share in the highly competitive global pyrethrum market by increasing its collaboration with research institutions as well as mobilising local farmers to intensify pyrethrum growing, an official has said. Gabriel Bizimungu, the general manger of Rwanda’s sole pyrethrum processing company, SOPYRWA, stated that the country accounts for 5 percent of the global pyrethrum market. New strategies aim at increasing it to 20 percent by June 2015. Bizimungu said that strategies, which included mobilising and organising farmers, support actions and increasing collaboration with research institutions, have been put in place to help attain the target. “The use of natural products offers an opportunity to develop organic products for export that earn a premium,” Bizimungu said. In its five-year strategic plan, the company plans to intensify multiplication and distribution of improved planting materials of mineral and organic fertilizers as well as land consolidation of pyrethrum farms. Fuel crisis in Kenya won’t affect local pump prices Following the fuel crisis looming in Kenya since last week and currently affecting Uganda, a top government official assured the Business Times that local pump prices won’t be affected. The crisis is attributed to a dispute between market leader in Kenya, KenolKobil, and the industry regulator, the Energy Regulatory Commission (ERC). It allegedly came about when KenolKobil’s crude import licence was withdrawn by the Kenyan government early this month. Emmanuel Hategeka, Permanent Secretary in the Ministry of Trade and Industry, said that this will not affect local prices in the near future; but if it persists, there is no doubt Rwanda will be affected. “We are trying to manage the existing stock and replenishing it so that we won’t be affected in the meantime,” Hategeka said. Every end-of-month, government meets with petroleum dealers to review price trends on the international and regional market, in order to determine the local pump price. Late last week, pump prices of petrol and diesel on the local market dropped from Rwf 925 to Rwf 920 and from Rwf 917 to Rwf 913 respectively after the meeting between oil dealers and government officials. Ends