Business round up

Inflation drops further Reports from the National Institute of Statistics of Rwanda (NISR) indicated that the country’s inflation rate eased to -6.52 percent last month from -5 .38 percent in November.The report indicated that this was on account of a decrease in food and non-alcoholic prices, which constitute the majority of the Consumer Price Index (CPI). Food and non-alcoholic beverages index dropped by 12.21 percent in December as prices of bread and cereals eased by 14.03 percent and vegetable prices fell by 17.15 per cent. Francois Kanimba, the central bank Governor told Business Times that this was not a surprise saying inflation in 2010 was less than 1 percent. The International Monetary Fund (IMF) however projects that the country’s inflation rate will rise sharply to 6 percent this year. And says this will come as result of a rebound in economic activity, credit growth and recovery of external demand. Tigo names new Chief Executive Officer Tigo Rwanda appointed Tom Gutjahr, an Austrian national as the new Chief Executive Officer (CEO), replacing Marcelo Aleman, who was transferred to Tanzania.Marcelo Aleman had served as Tigo Rwanda’s CEO for almost a year before being promoted to head a bigger operation in Tanzania. “Marcelo was at the helm at Tigo Rwanda when the company amassed over 600,000 subscribers in a space of just seven months, surpassing Rwandatel as the second most subscribed cellular company in Rwanda,” Tigo said in a statement sent to the Business Times. This was the second time the company replaces their CEO in a period of one year Marcelo replaced Alex Kamara, who was the CEO during the official launch of Tigo’s operations.Kamara was later appointed as Head of Regulatory Affairs for the East African region at Millicom’s head quarters in Tanzania. MINIMEX seeks partnerships with maize farmers A local milling factory, MINIMEX said it is in the process of upgrading its milling machine, as a measure of increasing the production of maize flour as well as cater for the high demand on the local market. The company said it looks forward to increasing its investment in maize production by forging partnerships with local farmers across the country. The step is focused at reducing imports from neighbouring countries, especially Uganda and Tanzania. The company’s Managing Director, Achille Nsakata, said the factory will invest Rwf500 million in order to be able to grid an estimated 200 tonnes of maize flour per day from 144 tonnes, to cater for the high demand on the local market. The official said that they are confident that when the new capacity is attained, they will meet the market demand in which the country has been depending on imports.He also noted that upgrading of the factory will enable a better quality maize flour production. Kigali wholesale market to cost Rwf17.9b The proposed Kigali wholesale market is estimated to cost $30m (Rwf17.9 billion) and ten hectares at the Kigali Economic Zone if the project is to be implemented.This project is expected to boost the horticulture industry by reducing post harvest losses on fruits and vegetables. Jean Marie Vianney Munyaneza, the International Market Specialist at Rwanda Horticulture Development Authority (RHDA) said the project will also bridge the existing gap between producers and exporters. The official said that this will eliminate middlemen who reduce farmers’ margins and also reduce wastage of perishable foods such as vegetables and fruits.The Kigali wholesale market project is a public-private sector initiative that also seeks to address market constraints, through the construction of a modern market for fresh produce in Kigali city. The facility targets regional market and will meet proper food requirement, with small cold room and sorting area. RBS moves to ensure quality meat products Rwanda Bureau of Standards (RBS) will soon introduce traceability methods on meat products. The move is to ensure high quality meat production and curb the rising food poisoning reported across the country.The Director General of RBS, Mark Cyubahiro, said that the tracing will be done, right from the slaughter point to the consumer. Cyubahiro was addressing a two day training which was aimed at educating meat producers and traders, on standards requirement to improve their businesses. He said the body will focus on the traceability of the animals from the farms The training also focused on meat chain, tackling the code of practice on meat, milk products and also looking at the mandatory standards of labeling. Uganda’s Roofings Ltd eyes Rwanda Roofings Ltd, one of East Africa’s largest manufacturers of steel products for the building industry announced plans of constructing a steel plant in Rwanda, so as to tap the country’s` booming construction sector. The company’s Managing Director, Sikander Lalani, said that the company will soon start downstream production in Rwanda, because of the country’s favourable investment environment. The move will boost Rwanda’s construction industry, which is exclusively dependent on the importation of steel products. The official said that arrangements had been effected with the Rwanda Development Board (RDB), in paving the way for the company’s penetration into the country. FINA Bank to open more branches FINA Bank announced its expansion plans this year, saying it set to open up six more branches in a drive that will see the banks` presence in rural areas. The Bank’s new Managing Director, Rao G. Balivada, said two branches will be opened in Kigali while four others will be rolled out across the four provinces with Automated Teller Machine (ATM) services Balivada replaced Steve Caley, who served as the Bank’s Managing Director for the last five years. Currently, Fina Bank operates with ten branches spread across the country. RRA acts to enforce tax compliance in ICT sector Rwanda Revenue Authority (RRA) embarked on campaigns to address major compliance issues in the area of Information and Communication Technology (ICT).This was in a bid to enhance tax collection in the sector. RRA’s Ronald Niweshuti, while addressing members of the private sector, specifically from the ICT sector said that some revenues generated from the services provided are not declared. The official pointed out that some subcontractors are still working under the informal sector. He also said that there is also a tendency of overstating invoices of invested equipments aiming at inflate the cost.The official also observed that several companies import services from outside companies, yet when payment is due no withholding tax is applied. Companies in the ICT sector are required to withhold taxes. Ends