Business round up

KCB Rwanda set to launch mobile banking product It was reported in the week that KCB Rwanda is in the final stages of launching a mobile banking product. According to Gloria Nyambok, Head of Banking at KCB Rwanda the mobile banking product dubbed “KCB Connect” is in the final stages of being launched once all regulatory issues have been thrashed out. She said that “KCB Connect” will be launched before the end of the year. The key product differentiation from similar offerings by our competitors lies in the fact that ours goes across the borders. This is the value proposition that “KCB Connect” brings to the market over and above what is available currently.” KCB Rwanda says that the product is targeting all its personal banking customers who are now numbering 28,000. RDB to formalize cross border trade Through cooperatives, Rwanda Development Board (RDB) is looking forward to honouring trade activities at all Rwanda boarder posts so as to improve the country’s trade with neighbouring countries. According to the National Bank of Rwanda from its recent survey, the country’s informal cross-boarder contributes to 20 % of the total export. Martin Gasasira, the Regional Trade Development Officer said that “In cooperation with key stakeholders such as Rwanda Cooperative Agency and the Ministry of Trade and Industry, these traders have now been organized into cooperatives along the main border posts.” He added that the trade and manufacturing department of RDB has just completed training of these cooperatives in business and cooperative managerial skills, and export processes for their sustainable development. The census on informal cross-border trade which was launched a month ago put the total of Rwanda’s exports and imports to Rwf27.6 billion and Rwf12.3 billion respectively resulting in a trade surplus of Rwf15.3 billion. This surplus contributes to the country’s current balance of payment account. “The training was conducted from 20th to 22nd October 2010 at Sports View Hotel. After the training, other support initiatives will follow to improve their level of export business,” Gasasira said. Rwanda cooperative shares at $12m Information from the Rwanda Cooperative Agency (RCA) indicates the share capital of cooperative in the country has grown to Rwf 12b (US$12.6m) as of September this year. It also indicates that RCA estimates that cooperative members have reached up to 2 million members, an indicator of creating a middle-class economy. The body says that culture of saving amongst Rwandans is being slowly embraced basing of the increase in registered cooperatives. The body has registered 4,000 cooperatives from 900 cooperatives in 2005 and more are expected to register basing on the ongoing mobilization. The Director of Planning and Cooperative Capacity Building Vincent Rutaremara, said that “We discovered about 900 ghost cooperatives in 2005. Now the number of registered members has grown to between 3,500 and 4,000.” Rutaremera pointed out that cooperatives have the task to be accountable to the members having pooled their savings to start the business. Gov’t set to sell stakes in 20 top companies Through the privatization programme, government is expected to decide on selling its stakes in 20 top companies. According to Rwanda Development Board (RDB)’s Asset and Business Development Department, stakes in the top companies including telecoms, banking and agricultural companies await firm decision by Government before such stakes are put up for sale. Amongst the companies include MTN Rwanda in which Government holds a tsake of 10 percent, Bank de Kigali (BK) in which government holds a majority 80 percent stake and BRD where Government holding is at 28 percent. Government also plans to sell 30 percent shareholding in the top beverage manufacturer Bralirwa which is on course with the first ever Initial Public offering (IPO). Experts at the Rwanda Capital Markets Advisory Council (CMAC) say that the current exercise of the Bralirwa IPO pre-offer ahead is an indicator of an elaborate plan to increase activities related to privatization. RwandAir in which government holds 99 percent and Onatracom public transport service provider which is fully owned by government awaits the decision too.Information from RDB indicates that since the privatization programme started in 1996, over 50 companies have been given out to private investors. “Since privatization programme started around 56 companies were fully privatized, 7 companies were liquidated, 10 are still under privatization within the different phases of privatization process and 20 companies are awaiting decision to be privatized,” the report states in part. Rwanda to partner with three Indian industries The Rwanda Private Sector Federation signed agreements with the Federation of Karnataka Chamber of Commerce and Industry (FKCCI), the Karnataka Small Scale Industries Association (KASSIA) and the All India Granites and Stone Association (AIGSA). This was during the just concluded “Rwanda Investment Roadshow” in India, where a 26-member delegation headed by the Minister of Infrastructure, Vincent Karega, met CEOs of leading companies in India and promoted Rwanda’s business climate for foreign investors. The deal will see the Indian partners invest in the physical infrastructure sector which will eventually boost Rwanda’s economy. In his address, Minister Karega is quoted as saying, “What we talk about is not well understood in the West because they do not see the level of poverty we are talking about. But you people know, and our aspirations are similar to yours.” MFIs to benefit from BRD’s Rwf190 million fund Micro Finance Institutions (MFIs) will be empowered through capacity building and technical assistance after the Rwanda development Bank (BRD) this week established a Rwf 190 million to help in the programme. The move is a government strategy through BRD, is in accordance with the Small and Medium Enterprises (SMEs) policy which seeks to develop the sector. Desire Rumanyika the Chief Executive Officer of BRD advisory services said that “The objective is to develop the SMEs and by financing and strengthening the MFIs which lend to the sector then we achieve our target.” The fund which will be operational next month comes shortly after similar support of Rwf60 million to the dairy industry where 21 milk collection centres received the assistance. More than 400,000 data subscribers in Rwanda, says RURA According to figures released by Rwanda’s Utilities Regulatory Agency (RURA) as of end of June 2010, MTN Rwanda is now the leading provider of data and Internet services, beating incumbent provider Rwandatel acquiring 78.44 percent of the market share. According the regulatory body statistics indicate that MTN holds 431,209 Internet and data subscribers, while Rwandatel has 40, 262 subscribers representing 17.60 percent market share. The report doesn’t indicate what kind of data subscribers are listed, whether they are just simply mobile data users, GPRS card holders, Internet cafes or just individual Internet subscribers.Only a year ago Rwandatel which is partly owned by Rwandan Government and the Libyan investment consortium, LAP Green, held a commanding 70 percent of the market. “Rwandatel is no longer the market leading provider of data and internet services in the country,” the statement signed by RURA’s Ag Director General, Francois Regis Gatarayiha indicated. Tigo Rwanda which has only operated in the country for not more than 10 months is the third leading Internet Service Provider (ISP) with 21,797 subscribers holding a 3.7 percent market share as of June 2010. Agribusiness forum to focus on horticulture and tea As a move to attracting investors, the high-level conference on agribusiness slated for November 3rd 2010 will focus on horticulture and tea sectors. Being organized by Rwanda Development Board (RDB) Ministry of Agriculture and the World Bank it is expected to gather 250 delegates including airliners, importers, bankers and investors. John Gara Chief Executive Officer of RDB told reporters that “The forum will unleash the potentials of those sectors by showcasing the various trade and investment opportunities available.” Local producers, foreign buyers, investors, and financiers as well as the donor community will utilize the conference to create networks that will motivate expansion and increase trade flows in the sectors. Gara said that “We decided to pick particular areas and these areas are of great potential, and anything that can be done to improve horticulture will in the long run positively impact on our population.” Inyange yogurt out of stock Consumers of Inyange yogurt could not find the product on market after it ran out of stock. The country’s largest organic yogurt company announced that the main reason was equipment maintenance.The Marketing and Communication Manager in Inyange Industries, Victor Kinuma said that “We are aware that there was a scarcity of product on the market, especially for yoghurt, but it has been addressed as we have already started supplying. It was due to scheduled equipment maintenance.” In a min-survey conducted by The Business times, the product has been off stock for more than two weeks and, according to shop attendants, suppliers did not communicate the reason. Ends