Business round-up

RECO could cut power tariffs Rwanda Electricity Board, RECO said electricity tariffs could drop in the near future despite a sharp increase in fossil and fuel prices, which account for 45 percent of the total energy costs in the country. This is expected as a result of the projected increase in domestic electricity production. The Director General of RECO/RWASCO, Yves Muyange, said that when methane gas extraction in Lake Kivu and the hydropower projects in Rusizi III and Rusumo are finally completed, the tariffs will be adjusted according to increased supply of electricity. RECO charges Rwf112 per kilo watt of electricity for small consumers and Rwf105 for large consumers, which makes Rwanda’s electricity tariffs the highest in the East African Community after Tanzania. Muyange said that last year, the institution maintained stable electricity charges even as it incurred high production costs due to the global increase in aluminum and copper prices. He added that unlike in neighboring countries where tariffs increased, Rwanda`s tariffs have stayed constant as government ventures into other cheap ways of producing electricity. Kigali Free Trade Zone ready by April Investors will start construction of companies and warehouses after the launch of Kigali Trade Zone which is slated for April. Alex Ruzibukira, Chairman of the taskforce overseeing implementation of the project, said that 90 percent of the work on the 250 hectares zone has been completed and is ready for investors. He added that the Ministry of Trade and Industry, and the Agriculture Ministry are carrying out a project called ‘seed plant and storage for agricultural products that will create a central distribution point in Rwanda to serve smaller local markets in the region. The official noted that the Zone will lead to development of larger wholesale traders and this would lower the cost of importation leading to trade expansion. Daily Fry oil faces ban Daily Fry edible cooking oil could be banned if an investigation being done by Rwanda Bureau of Standards (RBS) proves the product is not fit for human consumption.Uganda Nation Bureau of Standards (UNBS) recently banned the Kenyan made product after failing to meet the required laboratory tests for human consumption, and alerted RBS sparking off the investigation. Antoinette Mbabazi, RBS acting Head of Quality Assurance Unit, said that when RBS is alerted such products are put under seal, adding that the matter was under investigation.Daily Fry cooking oil is imported from Malaysia, refined by Kenya’s Towrit Oil Ltd, which re-exports it to Burundi, Uganda, DR Congo, Tanzania and Rwanda. Mbabazi said that the product undergoes a laboratory test, when proved negative; the product is rejected from going to the market. Trade experts within the region describe the importation of such products as a breach of the East African Common Market Protocol. WB crafts new development strategy for Africa The World Bank launched a new development plan for Africa that will see it focus on infrastructure and basic services improvement than emphasizing on economic stability. The strategy titled “Africa’s Future and the World Bank’s Support to it” will be run on an annual budget of about US$80 billion. The plan replaces the African Action Plan, which Obiageli Ezekwesili, vice-president for Africa Department at the World Bank, described as “inadequate” to transform Africa’s economy. Ezekwesili said the plan shifts from a more general focus on seeking economic stability to emphasise attention on competitiveness, employment, reducing vulnerability and improving public sector capacity to provide critical services in education, healthcare and basic infrastructure. She added that Africa, pointing out Rwanda, showed stronger economic growth that helped people improve their lives and that the plan is to intervene and compliment what both the private and public sectors achieved. The official said that in Rwanda programmes connecting provinces to the national gateway have been supported to enable rural access to information, giving citizens opportunity to participate in the democratisation process and demand for accountability. Regional pension body raises social security awareness The East and Central African Social Security Association (ECASSA) plans to increase public awareness on social security issues in the region in an effort to increase the coverage rate. The move according to ECASSA, is aimed at attracting more people in the informal sector, which comprises majority of Africa’s working population Afrique Ramba, the Acting Director General of the Social Security Fund of Rwanda said that limited efforts to sensitize employers, workers, self employed persons and the general public about the importance of social security, the coverage rate in many African countries is below 10 percent. He was speaking during ECASSA’s workshop aimed at creating social security awareness, where he said that lack of awareness leads to such a sorry state. MTN Rwanda drops roaming charges MTN Rwanda scraped cross-border roaming charges for its customers when they use the service in Uganda, South Africa, Botswana, Swaziland and Zambia. Officials said that the decision comes after complaints from subscribers that Rwf 60 was too high as receiving fee per minute. Last year, MTN introduced this fee saying it wanted to trim the swelling bill for call termination charges which it pays to international operators with which they have roaming partnerships. However, regional operators like Airtel, MTN Uganda and UTL don’t charge roaming fees. MTN’s Public Relations Officer, Bosco Ssendahangarwa, said that the decision was reached after negotiations with sister companies and agreed on the amount they will be charging each other. This simply means that MTN subscribers will now be able to move freely across these countries making calls and sending SMS at local rates and receive incoming calls free of charge. Equity Bank set to start operations this year The National Bank of Rwanda (BNR) said that Kenya’s Equity Bank is expected to start operations in Rwanda in the first quarter of 2011, after receiving its application for a license. Francois Kanimba, the Governor of the central bank, said that the bank`s entry is anticipated to boost lending to Small and Medium Enterprises (SMEs). He added that the bank`s operation in the country will not bring a lot of pressure in the banking system because they will increase competition. Kanimba was launching a Monetary Policy and Financial Stability statement. Ends