Business round up

Central bank Lists Rwf 3.5bn Bond The central bank issued a five year Treasury bond worth 3.5 billion. This is the seven to be issued this year as government commitment to developing a secondary market. The development was just part of a wider program of issuing government securities regularly. The Central Bank Governor, Francois Kanimba, said that the bond had generated enthusiasm among investors on the primary market. Kanimba said that “This is very encouraging for all stakeholders in the financial markets development process and indicates that the economic environment is favorable for long term investment.” Banks Offer Loans to Buy Bralirwa Ipo Shares It was reported that commercial banks are willing to offer loans to potential investors willing to buy shares in the ongoing Bralirwa Initial Public Offer (IPO). Banks including Kenya Commercial Bank (KCB) Rwanda, Bank of Kigali and Fina Bank said that upon demand, the institutions will give out loans. This follows the government decision to sell off its 25 percent stake it owned in Bralirwa. The Managing Director of Fina Bank who also doubles as Chairman of the Bankers Association, Steve Caley told Business Times that “We are not advertising a general “Loan Scheme” for this purpose but will consider applications from existing customers on a case by case basis.” Maurice Toroitich, the Managing Director of KCB, said that although KCB had not allocated a specific amount to customers who want to buy shares, the bank will lend money to all customers who “qualify” based on their lending criteria. Regional Bureaus of Standards to Adopt International Practices During training for technical experts from 17 countries last week, regional Bureaus of Standards noted in a way of promoting trade within and outside the continent, that there was need to adopt and implement international practices. Represented countries in a training that took place in Kigali were South Africa, Kenya, Uganda, Ethiopia, Burundi, Tanzania, Botswana, Democratic Republic of Congo and the host country, Rwanda. The Director General of Rwanda Bureau of Standards (RBS), Mark Cyubahiro Bagabe, said that the training is part of International Organisation of Standardization (ISO) action plan adopted in 2005 to support Least Developed Countries to access international markets. Mineral Exports to Hit U.S. $60 Million Reports indicate that the country’s mineral exports are expected to fetch approximately $60 million in revenue this year compared to $54.6 million earned last year on account of increased prices on the international market.First quarter statistics from the Central Bank indicate that the mining sector grew by 23.4 percent this year with a consolidated turnover of Rwf9.29 billions from Rwf7.53 billions in the first quarter of 2009 as a result of increase in international prices of minerals mostly tin. The Director General Rwanda Geology and Mines Authority (RGMA), Dr. Michael Biryabarema said prices have been improving. During the first half of this year, the mining sector grew by 37percent compared to only 2.9 percent recorded last year during the same period. Biryabarema said that due to the decline in demand and international prices experienced last year the sector has experienced a drop in volumes. Rwanda’s Silk enters Canadian market The Managing Director of Utexrwa, Raj-Rajendram, said that the industry has started selling its products in Canada as it also targets other bigger markets abroad. He said the industry last week exported its first consignment which was composed of 130 pairs of silk pajamas for both men and women and that the product is being distributed by a company identified as “dreamyz lounge wear” in Canada. Raj-Rajendram said that “Silk products are ready and being test marketed, we are waiting for supply chain of cocoons to go for bigger volumes.” He added that the company has the capacity to supply a variety of silk products including neckties, scarfs, shirts and pajamas depending on demand. Telecoms in x-mas promotions As the festive season gets close, the three mobile operators have been quick in introducing new promotions to protect and attract new subscribers. For Rwandatel, customers are enjoying a promotion product dubbed ‘Xmas Drive’. This is a new bonus promotion for prepaid mobile users where a customer receives a 50 percent bonus airtime based on the amount purchased. According to Cleophas Kabasiita, Rwandatel’s Corporate Communications Manager, the company is rolling out the promotion to allow its customers to plan and enjoy the festive season. “With this 50percent bonus, they can make phone calls to plan for their Christmas holiday with ease and without having to worry about the cost of calls,” Kabasiita said. Meanwhile, Tigo reintroduced its Rwf10/min calling tariff saying that the promotion was re-launched as a “Christmas gift” to their clients. The operator is also currently running other promotions like, ‘SMS happy hour’ where Tigo subscribers enjoy free SMS from 6pm to 7pm between Tigo-Tigo. Private Sector to benefit from $ 160m trade deal A senior advisor to the Ministry of Trade and Industry, George Muramula, said that the Rwandan private sector is set to benefit from $ 160million fund run by Enhanced Integration Framework (EIF). Based in Geneva, EIF is an international body focused on supporting Least Developed governments in trade capacity building and integrating trade issues into national development strategies. Muramula said that government is mobilizing the private sector to identify priority challenges that will develop bankable projects to benefit from the $160 million for the next three years. BK commences International ATM VISA Service Bank of Kigali (BK) announced that its Automated Teller Machines (ATMs) network is in operation with international VISA cards, a move that will also reduce queues in the banking hall. Januario Mucyo, BK’s Marketing Manager, said that the service will see customers use their ATM VISA cards across its 15 network of ATM machines across the country. “Whoever has a VISA card can withdraw money from any of our ATM machines. It is enhancing our electronic delivery channels and making it easy for people to access their money without necessary having to queue in the banks,” Mucyo said. This move follows BK’s acquisition of rights from VISA International, the company in charge of the ATM cards last year. Ends