Business round up

RDB’s restructuring to boost rural businesses Rwanda Development Board (RDB) announced its latest round of restructuring focused on boosting the capacity of the private sector in rural areas. RDB`s Chief Operating Officer, Clare Akamanzi said that “The new approach that we have entails a new partnership between the Private Sector Federation (PSF), district units and RDB whereby the Business Development Services (BDS) managed by the PSF will be given a new public and private sector-driven mandate in which government will now play a much bigger role than it did before.” The Head of Trade and Manufacturing at RDB, Pipian Hakizabera outlined how the new partnership with PSF and district authorities will operate. While releasing the key aspects of its wide ranging restructuring agenda, RDB said that key beneficiaries of the reform are the small and medium enterprises operating in rural Rwanda whose operations are set to be boosted through the introduction of RDB services in every district unit. BK named among EA’s leading banks African Business Magazine announced Bank of Kigali (BK) among the 15 leading banks in the East African region. The magazine made a survey that listed Africa’s top 100 banks in 2010. BK’s Marketing Manager, Januario Mucyo, said that “The ranking is a good indication that Rwanda’s economy is steadily recovering after the credit crunch experienced throughout last year. This also shows that BK is growing in all aspects. It’s prestigious to be among all the 14 other leading banks in the region.” BK’s annual report of 2009 indicates that the bank has remained dominant in Rwanda’s banking industry with a market share of 25 percent. BRD commit Rwf 60m into dairy industry Rwanda Development Bank (BRD) allocated Rwf 60 million for capacity building in 21 milk collection centres as the Bank intensifies its technical assistance program to microfinance institutions and cooperatives. The program that is being spearheaded by the government through BRD is in conformity with the Small and Medium Enterprises (SMEs) policy. Desire Rumanyika, the head of BRD advisory services said that “The objective of this program is to empower SMEs through capacity building and at the same time encourage, identify and enhance both the supply and demand sides of SMEs development.” Financial sector soundness improves significantly – Central Bank The soundness of Rwanda’s financial sector significantly improved from the tight credit conditions experienced in 2009, enhancing stability within the sector, the Central Bank said. Speaking to Business Times along the sidelines of the ongoing Annual Meetings of the World Bank and International Monetary Fund (IMF) on Tuesday, François Kanimba said that the average capital adequacy ratio within the banking system currently is higher than 15 percent. The Governor was commenting on the latest global financial stability report released by the IMF which indicates that recovery of the global financial system remains fragile as the global financial system still faces “considerable downside risks” from the effects of the global financial crisis. The consolidated balance sheet of the banking industry expanded by 8.3 percent during the first half of the year 2010 compared to the same period of 2009. Russia’s Renaissance Capital eyes Rwanda Media reports indicated that Renaissance Capital (RenCap), a Russian investment bank with operations in Africa, plans to expand next year into at least four African countries including Rwanda. Bloomberg reported Wednesday that the Moscow-based bank, which currently operates in five African nations including Kenya, Nigeria, South Africa and Zambia, plans to move into Angola Uganda and Rwanda. “Each of these countries will see a huge development in their capital markets - We are looking to expand into other five or six countries in Africa,” Hasnen Varawalla, the bank’s global head of corporate finance was quoted as sayong. However, speaking to Business Times, William Katete; Public Relations Officer at the National Bank of Rwanda (NBR) said the bank had not yet received RenCap’s formal application for a banking license but added that it did not mean that there were no chances. Inyange industries introduces UHT milk product Rwanda’s leading locally branded beverage industry, Inyange Industries introduced Ultra-Heat Treatment (UHT) milk product on the market, giving a variety of choice to their customers. Although the product has not yet been commercially launched, it is already on the market. Inyange’s Marketing and Communication Manager, Victor Kinuma said that UHT milk is vastly suitable for storage since it does not require refrigeration. She said that “The product has a typical shelf life of six to nine months until opened; and its economic incentive behind shipping makes it very user friendly because of the lengthened period.” Gov’t targets PPP for agri-park development It was reported that through the Agricultural Ministry, Government eyes Private-Public Partnerships to develop eight hectares of land secured as an agri-park in the Kigali special economic zone. Agnes Kalibata, Minister of agriculture and animal husbandry said ground breaking had started for first-phase activities. The first batch of projects includes silo plants for green storage facilities, seed plant to process seeds, ice plant to manufacture ice and make it available to the business community. The ice plant will also be used for food preservation especially in the fish industry. According to Kalibata, the agri-park will also host input warehouse, macadamia plant and the agriculture Mechanization unit will be transferred from Kabuye. Ends