Business round up

Gov’t keen on issuing more bonds Government said that it will continue borrowing money from the public through issuing treasury bonds to support long term infrastructure projects and boost the nascent stock exchange only if it does not limit private borrowing. François Kanimba, central bank Governor, said existing market conditions being characterised by low inflation levels and favourable liquidity conditions in the banking system are suitable to issuance of more financial instrumentsKanimba was speaking at the function to list government Rwf2.5b Treasury bond on the Rwanda Stock Exchange (RSE). This was the 8th Treasury bond to be listed on the RSE paying an interest rate of 10.5 percent per annum in a period of 3 year. Inyange lays off distributorsRwanda’s largest food processor laid-off 16 large distributors who used to employ over 400 people. The industry instead resorted to using its own direct sale depots to supply products across the country. Official communication from the industry said the move was aimed at courteously and effectively supplying customers. Rama Kant Pandy, the Managing Director of Inyange, said this was to improve customer confidence since distributors had failed to sale company products at a uniform price. He added that company products are at different prices across the country and that since the company has depot points; prices will be uniform every where. Bankers institute in the offing Rwanda Bankers Association, said plans are underway to start an institution to train practitioners in different fields so as to upgrade their working skills Jacky Mugwaneza, the association’s Executive Secretary, said the institution will be operational within the next two years The association is building its own calendar for all sectors to be trained and also come up with a curriculum that can cover the whole financial sector, including Micro Finance institutions. Mugwaneza said that according to plans, the institute is expected to have capacity of accommodating bankers from within the region Inyange hikes pricesThe food processing industry, Inyange Industries, since last month has been raising its products, leaving distributors frustrated since they are not able to restock depots Distributors said the move comes at a time when the company communicated to them about its losses. Venuste Rutabingwa, chairman of Inyange distributors said that the industry met with distributors and announced it increased prices to cover operating costs.He said that after the meeting, distributors were issued with a new pricelist of all Inyange products and later, the prices were raised three times in a week. PSF to rejuvenate district investment groupsAs a step towards improving the capacity of the private sector in fostering economic development, PSF said it will be renewing the mobilisation of Mini Investment Groups (MIG) at district level. Roger Munyapenda, Chief Operating Officer of PSF, said the groups did not entirely meet goals set by PSF and needed quality management and leadership to achieve set goals. He added that PSF is looking for quality leadership within and outside Rwanda to manage the groups so as to promote development for all districts. This will be through conferences that will be organized across the country encouraging communities to participate in investment and improve ownership of projects in their sectors Munyapenda added that PSF will also develop Technical and Vocational Education and Training (TVET) programmes for young people to acquire employable skills. Silos project to address seed shortage The Silos project, a facility that government is constructing with the capacity to handle 10000 tonnes will increase food security. John Habimana, the Technical Director of ABCD, a company in charge of the construction said that farmers have been incurring losses as a result of producing yields that exceed demand during the harvest season. He added that the facility will enable government to buy seeds during harvesting season and sell them to farmers at reasonable prices during dry season.Company management said that the cleaning, drying and storage facility is expected complete end of July this year. Housing sector gets KCB’s Rwf7b cash boostKenya Commercial Bank -Rwanda (KCB), unveiled a mortgage project to help ease the housing shortage in the country. Maurice K. Toroitich, the Managing Director of KCB -Rwanda said they will invest Rwf7 billion in the project this year. The bank said it will get funds internally as well as borrowing from other institutions.Toroitich said that the bank will look at institutions that can provide long-term funding. The launch of KCB’s mortgage project comes at a time when the country needs between 20,000 and 25,000 residential houses every year. The official said that the bank’s mortgage product will offer home ownership with a minimum of 10 percent deposit for first time home owners, minimum 20 percent deposit for residential units under construction and 30 percent deposit for non residential commercial properties. He also said that the bank’s basic interest rate on mortgages is 16 percent per annum, which he said is a subject to change depending on market conditions. Ends