Business round up

RwandAir records growth in passenger traffic The national carrier, RwandAir said it recorded a steady growth in passenger traffic of around 18 to 20 percent in 2010. It was noted that this came about by the expansion of the carrier`s operations amid growing competition in the regional aviation industry. The airline’s marketing and Corporate Communications Manager, Michael Otieno told Business Times that “We have realised a steady growth in passenger numbers since the new equipment has enabled the opening of new destinations.” Otieno said that the airline had a minimum of 10,000 passengers monthly in the course of 2010. This according to Otieno was due to more capacity routes like the Johannesburg route and the newly opened routes of Mombasa and Dubai. Gov’t secures Rwf9.5b to cut budget deficit It was reported that Government expects funds from the Common Market for Eastern and Southern Africa’s (COMESA), a boost that is expected to aid in bridging the shortfall in the country’s fiscal revenue. Reports from the Ministry of Finance and Economic Planning last month, indicated that state tax collections had reached Rwf189 billion as of November against the target of Rwf479 billion for the whole financial year, prompting a possible budget cut of Rwf8.5 billion early this year. The Director General of National Budget at the Finance Ministry, Elias Baingana, told Business Times that the country is due to receive €12.3 million or Rwf9.453 billion by end this month, relieving fears of budget cuts. The development follows the fourth COMESA meeting of the regional integration support mechanism advisory committee held last year in Lusaka, Zambia. Pyrethrum exports up Reports from SOPYRWA, the country`s only pyrethrum factory indicated that pyrethrum exports rose between 6 and 10 tonnes of refined extract (pale) from 3.2 tonnes in the last three years. This was however attributed to the suitable climatic conditions and modern processing, according to the General Manager, Gabriel Bizimungu. Bizimungu said that the factory’s exports are valued at about $1.63 million or Rwf968 billion. “Rwandan pyrethrum is selling high compared to the same products in the region because of its good quality and modern processing,” Bizimungu said. He also said that prices for pyrethrum shipments from Rwanda have been attractive and stable at $250 per kilogramme on the international market while similar products in the region fetch $180 per kilogramme. Competition hurts MTN Rwanda revenue MTN Rwanda, said that its revenues dropped, last year on grounds of increased competition in the sector MTN’s Chief Operations Officer (COO), Andrew Rugege said that “Our revenues suffered because of the way the market was behaving…with the advent of competition and the tariffs, promotions they brought on board; it was difficult to realize the revenues…” Without going into details of the lost revenues, he noted that promotions unleashed by both Tigo and Rwandatel last year negatively affected MTN`s revenue growth targets. “Some competitors went from Rwf30 a minute to Rwf10, then Rwf5; others down to Rwf3; although we had a ‘safety net’ in terms of the promotions that we run, in that we did not really have to reduce our tariffs ; all this means that the money coming in is much lower than it was,” Rugege said. In August, last year, MTN launched a series of promotions to celebrate the company’s 12-year existence in Rwanda, including discounts on the MTN Zone and an offer on Wi-Fi booster. IMF projection puts Rwanda’s inflation at 6 percent The International Monetary Fund (IMF) Resident Representative, Dmitry Gershenson said that there might be a 6 percent rise in the country`s annual inflation rate.According to Gershenson, this might be driven by a rebound in economic activity, after it remained low and stable throughout 2010. Gershenson said that “The economic outlook for 2011 is generally favourable, with the projected 6-7 percent growth in 2011 being driven by the government’s investment strategy, the recovery in external demand, and the pick-up in credit to the private sector.” The annual inflation rate remained stable in 2010, slightly increasing by 0.18 percent in November compared to 0.17 percent in the previous month with imported inflation falling while food prices took a downward trend, on account of the good performance of the agriculture sector. The central bank Governor, Francois Kanimba, said that prices of goods and services are expected to rise drastically this year, mainly due to an increase in local food prices and global oil prices. Tigo introduces micro-SIM cards Tigo Rwanda announced it was providing mico-SIM cards for subscribers with smart phones, particularly those using the 3G iPad and latest iPhone 4. The Company’s Marketing Manager, Nina Ndabaneze told reporters that “With the use of the new micro-SIM, mobile devices can store a larger battery, and we already see that in the new iPhone which has 16 percent more capacity. With Facebook, Twitter and all these utilities, users browse the Internet all day so they want a large screen, and that kills the battery of most smart phones.” The official said that the mico-SIM costs Rwf 350 and Tigo subscribers could purchase and use the card as new or also through the swap method. According to Ndabaneze, the company is set to introduce two ZTE low cost smart phones, which are equally useful as any other smart phone when browsing the Internet. EAGI to construct Rwf6.4b granite plant East African Granite Industries (EAGI) announced plans to construct a granite tiles plant. The factory that will cost $10.5 million or Rwf6.4 billion will be established in Nyagatare district, eastern province by August this year. EAGI is owned by Building Materials Investments (BMI), and the development will give the company a production plan of producing 120,000 granite tiles per year with a provision to expand to 200,000 tiles depending on the market demand. Nick Barigye, the coordinator of EAGI said that “We are set to explore the tile market in the region with an ambitious target to supply the market of about $97.4m.” He also said that EAGI is seeking a partnership with China’s Beijing Union Stones to provide the expertise and technology needed to implement the project. Beijing Union Stones will train about 160 people on mining skills before the factory kicks off. MTN announces 1st Rwf20M winner in new promotion MTN announced Amiable Irahoza, an Automobile Mechanic as the first winner of Rwf20 million in the ongoing MTN Rwanda millionaire promotion dubbed “NiRurangiza”.The promotion which has proved to be one of the most successful in terms of participants and prizes won has already benefited 29 people. Paul Mugemangango, MTN’s Head of Corporate and Legal Services described the win as a confirmation to MTN’s promise to its customers that ‘Everywhere you go’; MTN offers the best products and services. Ends