Business round up

Rwandatel set to launch mobile payment service Rwandatel’s Chief Commercial Officer, Francis Egbuson said that the company is in line to launch ‘Mobile Money’ services, a new product which will also contribute to easy business transactions for the subscribers. The service dubbed ‘M-Kash is designed to enable people to make a financial transaction using a mobile phone. The official said that: “We are planning to launch the best service on the market which will be more convenient, with enough services and other existing features like asaving scheme.” According to him, the service which will cost Rwf 900 million is aimed at cutting short the time customers queue for bill payments as the operator strives to revolutionise the way payments are done. The product will also increase on the percentage of the country`s population to bank services based on the number of nationals with access to mobile phones. EADB Pledges Technical Support for Bankable Projects The Director General of East African Development Bank (EADB), Vivienne Yeda Apopo, said that the bank will partner with other financial institutions in Rwanda to provide technical support to the business community to develop bankable projects. The official said this during the official launch of the Bank’s operations in Rwanda, targeting to invest across key economic sectors. She added that the Bank will co-finance different projects in fisheries, agriculture, manufacturing, transport and mining. Others include construction, communication, financial services and logistics. According to her, the Bank approved investments worth more than $250 million, with medium and long-term funding accounting for over 85 percent over the past five years. BNR cuts repo rate to boost lending François Kanimba, the Governor of the central bank, said cutting the rate at which National Bank of Rwanda (BNR) lends to commercial banks is the only way to encourage banks’ lending to private sector and to boost economic growth. This was after the national bank slashed its key repo rate by one percentage point, from 7 percent to a record low of 6 percent Announcing the new rates, Kanimba told reporters that “Compared to last year we have recorded a growth of about 50 percent in volumes of new loans; though it is quite significant, the impact in terms of total outstanding credit to the economy ha not been high as expected.” “The liquidity in the banking system is comfortable and reducing key repo rate sets a very important signal to the market,” he said, describing the new rates as the lowest since he joined the central bank. Central bank rules out deflation The central bank Governor, François Kanimba, ruled out the possibility of the economy plugging into deflation as consumer prices continue to fall, which may lead to a drop in consumer demand. On annual basis, overall inflation as shown by increase in prices of goods and services, dropped from 5.7 percent in December 2009 to 0.2 percent in October, this year, signaling a possible deflation. This is well below the central bank’s target of 7 percent for the whole year. During the quarterly Monetary Policy Committee (MPC) meeting which reduced the Bank’s key repo rate to 6 percent from 7 percent, Kanimba said that “The current assessment of the factors behind low inflation is generally different from those that drive a deflation process. The declining prices of imports are a big explanation of what is happening.” Rwanda needs more investments in Money Transfers - Central Bank It was reported that there is need for more international companies to remit money to the country in order to lower the high costs currently incurred when sending money from abroad. The World Bank recently revealed that the cost of sending money to Rwanda is among the highest in the region. “The more companies (sending money) there are in these countries (Diaspora), the cheaper it is to send money. If the companies are fewer, the higher the costs,” Ambassador Claver Gatete, the Vice Governor told Business Times in a phone interview commenting on the report findings. According to data compiled by the World Bank, published under the ‘Remittance Prices Worldwide’ database, sending US$200 from the UK to Rwanda can entail an average transaction cost of up to $30.72. RwandAir to operate three weekly flights to Brazzaville In its expansion plans, RwandAir is set to launch direct flights between Kigali and Brazzaville, the capital of the Republic of Congo, according to John Mirenge, Chief executive officer national carrier. The move was first announced during the recent state visit to Congo by President Paul Kagame This will see the national carrier opening more routes to the west and other parts of Africa. “This is another big open opportunity for the national carrier to expand its presence to the other parts of the continent. We are working on the paper documents to get the flying-rights and it will not be long before we start making direct flights to the capital (Brazzaville),” Mirenge said. He said that the airline will be operating three weekly flights between Kigali and Brazzaville. Early this month, the carrier launched its first flight to Dubai via Mombasa, making it its 6th destination. TMEA to support Rwanda’s integration into EAC Trade Mark East Africa (TMEA) is committed to support Rwanda in the integration into the East Africa Community (EAC) by speeding up border crossings, strengthening policymaking and implementing of the EAC protocol. It was announced during the launch of the TMEA Rwanda programme that brought together parties attached to the enterprise. Mark Priestly, Country Director, Trade Mark East Africa (TMEA) said “We will facilitate trade, promote market linkages within the region by working closely with the Government, private sector and civil society.” TMEA is set to twofold fund contribution towards the region to £24 million (Rwf22.8 billion) in the next four years from £12 million (Rwf11.3 billion) as a part of the ‘aid effectiveness’ efforts in the country. The Minister of the East African Community Affairs ((MINEAC), Monique Mukaruliza, welcomed the partnership with TMEA, saying that the enterprise has experience in EAC issues. Ends