Business round-up

EAC to study joint customs collections The East African Community (EAC) is set to begin a study that aims at establishing a regional customs authority. This will see all the five partner states collect customs duties jointly. Monique Mukaruliza, the Minister in charge of EAC Affairs said that upcoming council of ministers in March will set the timeframe for the Secretariat to deploy the team of experts that will conduct the study. She explained that in the December 2010 summit, Heads of State agreed the study must be done by the Secretariat to look at the modalities of implementing a regional customs authority The Minister said the study will make a thorough analysis on the possibilities of setting up the regional customs authority specifically including its operation, tax collection and revenue sharing. Construction of New Century Hotel on track Top management of the New Century Hotel which is under construction said the hotel will be fully operational in the second half of 2012. Solomon Adede, Deputy CEO and head of Finance of New Century Hotel, said that there is need for enough accommodation to serve the increasing number of visitors. New Century Hotel is a private partnership with 75 percent holding by Hong Kong-China and 25 percent by local investors. The official noted that the investment environment in the country is superb, and dealing with RDB has made doing business in Rwanda more attractive SSFR contributions rise Reports from the Social Security Fund of Rwanda (SSFR) indicate that there was an increase of 83 percent in the number of new registered members as recorded in December 2010. The increase according to SSFR management shows that Rwandans are willing to save through the public pension scheme. Statistics from a provisional report on SSFR’s performance for the period between July and December 2010 show that 3,596 employers and 33,678 employees registered with the Fund, compared to 1,965 and 29,454 respectively in the same period in the previous year. The report shows that contributions from members totalled Rwf17.3 billion, Rwf1.6 billion higher than a projected Rwf15.7 billion. Coffee revenues to grow by 14% Rwanda Coffee Development Authority (Ocir-café) said Coffee export revenues are expected to increase by 14 percent this year. The rise expects to put profits at US$70 million (about Rwf41.6 billion) from US$56 million (about Rwf33.3 billion) in 2010. The authority also plans to increase production to a target of 22000 metric tones as in 2009, it used to produce only 16,000 tonnes. Ocir-café, Director General, Alex Kanyankole, explained that the projected increase in export revenues is due to improved quality of Rwandan coffee as well as higher prices on the world market. He also projected that coffee prices on the world market are expected to remain firm because there is a general shortage of coffee in major coffee producing countries. Reports indicate that Ocir-café realised a whopping 51.3 percent increase in total coffee revenues last year. Access Bank joins global trade association Access Bank was admitted as a member of the International Swaps and Derivatives Association (ISDA), one the world’s largest global financial trade associations. Access bank is the only continental bank, outside of South Africa, that is a member of the association. The bank was recognized as a member considering its long standing contribution to the development of the financial markets across Africa. Aigboje Aig-Imoukhuede, Access Bank’s Group Managing Director said the bank’s admittance reflects its growing influence in Africa. Christine Bihire, the Corporate Communications Director in Access Bank Rwanda, said becoming a member to ISDA will improve the Bank’s capacity and add significant value to its business operations. Inflation rises to 1.09% Rwanda’s year-on-year inflation, which measures the change in prices of goods and services, rose to 1.09 percent in January, up from 0.23 percent in the previous month, driven by an increase in private school fees recorded at the beginning of the year. The National Institute of Statistics of Rwanda (NISR) said that the underlying inflation, which excludes fresh food and energy, increased by 0.85 percent compared to the previous month. The increase in the consumer price index is largely attributed to the increase in private school fees recorded at the beginning of this year, according to the national statistics body. The institute added that prices of transport rose by 3.96 percent and education 19.21 percent, contributing 0.51 percent and 0.62 percent respectively.It was also noted that the rise in transport costs was due increase in fuel prices. RwandAir in partnership with SITA RwandAir entered a partnership with SITA- a company that provides Air transport communications and IT solutions. The signed agreement will allow the national carrier acquire key travel solutions, that will improve its services through better distribution and customer retention. This will boost RwandAir’s e-commerce platform, allowing for e-ticket distribution on the carrier’s website with the help of credit card payment. RwandAir’s Head of Marketing and Corporate Communications, Michael Otieno, said this is also aimed at making customers convenient to access the national carrier by taking advantage of the reach of Internet and emerging e-commerce applications. He explained that the SITA e-commerce platform will not only provide a new booking option for customers but will also help the airline reach more international travelers. Rwanda Microfinance venturing into agriculture Rwanda Microfinance Limited (RML) announced plans to undertake agricultural lending and other personal loans, with effect from May this year. Anthony Nderitu, Managing Director, RML, said the company aims at becoming a market leader in agricultural loans and in financial services to small and micro-entrepreneurs (SME). He explained that the mission is to transform livelihoods of those in viable economic activities through creating a rewarding and stimulating environment. RML is part of the Micro Africa Group of microfinance companies with offices in Kenya, South Sudan, Uganda, Tanzania and Rwanda. Ends