Business round up

BNR to implement automated funds transfer system The central bank will soon implement Real Time Gross Settlement System (RTGS) which will enable money transfer from one bank to another and on individual basis. The system aims at making payment systems efficient and reliable, which is part of the government`s modernisation programme under the Rwanda Integrated Payments Processing System (RIPPS) According to Francois Kanimba, the Governor of the National Bank of Rwanda (BNR), its also part of the integration of payment systems within the East African bloc which is being conducted through a project implemented by the five central banks. The Governor said that RTGS are operational in three East African countries including Kenya, Uganda and Tanzania. He added that Rwanda will be launching RTGS in a couple of weeks. Kanimba noted that what was remaining is to establish a regional clearing platform for the integration of RTGS. Five companies eye Kigali City Park It was also reported that three foreign and two local companies had so far contacted Kigali City Council (KCC) with interest to invest in the mega Kigali City Park (KCP). This follows government`s re-advertising for interested investors to take over the proposed amusement and hospitality park after Dubai World withdrew from the project. Hilton Hotels and Resorts, an international chain of hotels and resorts is one of the investors, which agreed with KCC, to develop a portion of the park last year. According to Bruno Rangira, KCC’s Director of Media and Communications, investors are still in negotiations with KCC. He explained that negotiations depend on issues which include the terms of payments and priority areas to develop. BPR, TIGO partner to boost mobile banking Banque Populaire du Rwanda (BPR) and TIGO Rwanda formed a partnership aimed at increasing mobile banking penetration. Herman Klaassen, BPR`s, Chief Executive Officer, said that there will be a raise in mobile banking transactions above the current 150,000 transactions recorded per month due to the new partnership. He said that with the modern and smart banking which has latest technology and partnering with all operators, the company is optimistic, the growth of active customers will come to 100,000 by the end of the year. BPR already has a partnership for mobile banking with MTN Rwanda and it is seeking to bring Rwandatel onboard in the near future. MTN Rwanda to be listed this year Government plans to sell its shares in MTN Rwanda by the end of the year. This is part of the government’s broader strategy to divest from companies it owns shares aimed at facilitating the development of capital markets and increase alternative sources of long-term capital for businesses The Finance Minister, John Rwangombwa, said that government is still discussing with MTN South Africa. According to him, government has 10 percent share but 45 percent shares from MTN is expected to be on market this year. The minister said that there is also another investor who wants to divest from the company too.The move will make MTN the 3rd company to have its shares traded on Rwanda Stock Exchange if a planned Bank of Kigali’s (BK) 25 percent Initial Public Offer (IPO), mid this year, goes through. EAC transport strategy takes shape A team of experts in charge of infrastructure from the East African bloc adopted the bloc’s transport strategy and road sector development programme.The strategy is aimed at giving a clear roadmap for infrastructure development in the region. The EAC’s Deputy Secretary General in charge of Planning and Infrastructure, Alloys Mutabingwa, said that a team of experts will review it before it is taken to the Council of Ministers to ensure that the outcome of stakeholders’ meeting is captured. Mutabingwa said that the strategy will strengthen the region’s plans to roll-out effective and efficient infrastructure, hence lower transport related costs of production and trade across East Africa and beyond. TradeMark to invest Rwf38.5b in Rwanda TradeMark East Africa, a non -profit organization, said it will spend US$65 million (Rwf38.5 billion) in Rwanda in the next five years. This is inline with supporting the country’s process for regional trade and economic integration in the East African region. The organisation will support Rwanda Revenue Authority (RRA) to establish a One Single Border Post at Kagitumba, Gisenyi and Cyungugu. It will also introduce an electronic single window for customs and Integrated Border Management Systems (IBMS). The Country Director of TradeMark, Mark Priestley, said that the company intends to set up a secretariat that will strengthen the process by identifying and monitoring Non Tariff Barriers (NTBs). TradeMark will also deploy experts to identify and work towards eliminating key NTBs affecting the country which includes customs documentation and administrative procedures, quality inspection procedures, transiting procedures and police road blocks. Economy Grows By 7.4 Percent Rwanda’s economy registered a 7.4 percent Gross Domestic Product (GDP) last year, slightly higher than earlier projection of 7 .2 percent, after recovering from external and domestic shocks that hit the economy in the past two years. After registering a strong performance in 2008 with 11.6 percent GDP growth, last year the low economic activity slowed down growth to 6 percent. Mid 2009, the dual effects of the global recession and the tight domestic liquidity conditions slowed growth, with the country’s industrial and service sector most severely affected. John Rwangombwa, the Minister of Finance and Economic Planning said that last year is when the economy fully recovered from the global financial crisis and the domestic liquidity crunch which was experienced in 2009.The Minister also said that the economy had been largely boosted by a strong performance in the agricultural sector. Kigali Wibro ready for service The Permanent Secretary in the Ministry of ICT in the President’s Office, David Kanamugire, said that the Kigali Wireless Broadband (Wibro) technology is ready for use.The technology was developed by Korea Telecom (KT) at a cost of Rwf 4.5 billion. Kanamugire said that the technology will become fully operational after the establishment of management structures as well as obtaining legal and regulatory approvals to allow its full operations as a telecoms entity. He also noted that together with the Kigali Metropolitan Network (KLN), there will be increased access to affordable and reliable networking services. Ends