Business round up

Best investors to be rewarded As a way of attracting private investors to encourage economic growth and job creation, Rwanda Development Board (RDB) will award 15 businesses that excelled last year. The institution plans to recognise businesses, individuals and SMEs that made an impact towards the growth of the economy in a ceremony that is expected on 28 January. RDB’s Chief Operating Officer (COO), Claire Akamanzi said that “The awards are meant to inspire the existing and future businesses to excel leading to economic growth, boosting job creation as well as alleviate poverty and stimulate rapid economic development.” These awards were formally known as RDB investor and exporter of the year awards, but this time round will be regarded as Business Excellence Awards. And they are regarded as the most prestigious awards in Rwanda’s investment sector. RDB outsourced a private company called GPO PARTNERS Rwanda Ltd to ensure free and fair selection of outstanding companies. However, final winners will be selected by an independent panel of eminent persons from the public and private sector. RCAA revenue up 25% Due to the increased air traffic and airport users at Kigali International Airport in the last three years, Rwanda Civil Aviation Authority (RCAA) said it recorded an increase of 25 percent in its revenue. Statistics from RCAA, a body in charge of overseeing as well as regulating the aviation industry shows that it grew by 20 percent with approximately 300,000 passengers registered by the end of last year.It also indicated that the number flights increased from 60 in 2009 to 100 flights last year. According to the Director General of RCAA, Richard Masozera, the growth in revenue is due to the automation of the car park which improved the efficiency in financial collection. Masozera told Business Times that the system offers a diverse range of information to meet security needs and reduce the likelihood of small funds being mismanaged.“In 2010 the aviation industry recorded significant achievements in daily operations, in infrastructure development, flight safety, air navigation and human resource development,” he said. Rwanda is benefiting from increased inflow of air traffic particularly from USA, the UK, Japan, Germany and the East Africa Community. MTN Winners of ‘Ni Rurangiza’ promotion receive cash prize MTN handed over cheques worth Rwf1million to seven lucky winners of the MTN’s ‘Ni Rurangiza’ promotion, a draw that was held over the Christmas holidays. The promotion was launched early December targeting a winner for 60 days. MTN said the promotion attracted record numbers of participants across its wide subscriber base of more than 2.3m. “I joined the promotion to see if it is genuine, my win proves MTN to be an honest company...I will use the money to pay school fees for the orphans I am looking after...,” Mughaya Khalidhi, one of the lucky winners said. MTN said the next draw which will target only two lucky winners will give them a chance to walk away with the top prize of Rwf 20 million, in a promotion that ends on 11 February. 2010 Agriculture Output Foundation for Food Security A good performance in the agricultural sector recorded last year that saw it expand by 8.2 percent in the first half of last year is expected to boost food security around the country this year. According to the Central Bank the good record is as a result of strong performance in cereals, roots and tubers which increased by 18.7 percent and 18.8 percent respectively. The sector benefited from large government investments in fertilizers, improved seeds and extension services. In the past 3 years, the consolidated use of land area under maize, wheat and beans alone increased from 28,788 hectares to 254,000 hectares in 2010. During the National Dialogue, the Minister of Agriculture and Animal Resources, Agnes Kalibata, said that “When we started land consolidation in 2007, about 20 districts were food insecure but currently 70 percent of target districts are food secure.” Kalibata said that land consolidation boosted the sector with 46 percent of the land being consolidated from two percent in 2007. Reflecting on 2010, the Minister cited Girinka (One cow - per poor household) program, irrigation and land husbandry as key successful programs. Ocir-Thé appeals to Kenya on Mombasa levies The institution in charge of developing the tea industry, Ocir-Thé requested Kenyan authorities to reduce parking charges levied on the vehicles that make its shipments to the Mombasa tea auction market. The Kenya Plant Health Inspectorate Services (Kephis) had increased the charges from Ksh5,000 (Rwf36,699) to Kes20,000 (Rwf146,798) per vehicle. Kephis later reduced the charges to Ksh 10,000 after different players protested. The Director General of Ocir-Thé, Anthony Butera, told Business Times that the levy is still too high, adding that it will drive transport fares high and undermine the competitiveness of Rwandan teas. “The high levy will make transport costs high, directly affecting farmers and the entire tea industry,” he said. Transport fares from Kigali to Mombasa recently increased from Rwf70, 000 to Rwf85, 000 per tonne loaded on a lorry. Butera said that they were negotiating with the Kenyan authorities to scrap the levy so as to ease Rwanda’s tea exports. BK to raise investment capital through share sale Bank of Kigali (BK) management said that the Initial Public Offer (IPO) planned mid this year, for the sale off of the 25 percent stake that belongs to government will support the expansion of the bank’s credit portfolio. This will make BK the second local company after Braliwa to be privatised through capital markets as government seeks to facilitate the development of the stock exchange and increase the alternative sources of long-term capital for business entities. According to BK’s Managing Director, James Gatera, the bank intends to use proceeds from the IPO to expand its investment portfolio, including expanding its loan book. Specifically the bank wants to provide more credit to Small and Medium Enterprises (SMEs) and mortgage businesses that are currently starved of long-term financing. Gatera said that “We do not have any doubt as far as take-up is concerned because many foreign investors are looking for solid investment opportunities. Therefore, there’s no issue of not being fully subscribed. But our view is that we should have a lot of local participation.” He added that “We need to do more of ground work, making sure there’s enough investor education, marketing and public relations to ensure that there’s a lot of participation and interest from the Rwandan population.” Ends