Business round-up

Exports up by 44% The Central bank said there is a rebound in economic activities this year, having registered an increase of 44 percent in the country`s exports in January and February 2011. Statistics show that Rwanda fetched $45m from exports in January and February in 2011 compared to $31m in the same period last year. In terms of value, exports rose to 18.9 tonnes from 14.8 tonnes in the period under review. The central bank attributed the strong recovery to competitive prices of coffee and tea on the international market, growth in both the construction and mining sectors. Monique Nsanzabaganwa, the Trade and Industry Minister, said this reflected the current implementation of the broader national export strategy seeking to exploit opportunities for higher export revenues through export promotion and diversification.Troubled Rwandatel leads in internet broadband Rwanda Utilities Regulatory Agency (RURA) latest statistics show that Rwandatel is the leading Internet Service Provider (ISP), contrary to earlier figures that had shown it had lost its position to MTN Rwanda. RURA in its report indicated that fixed broadband internet market is being dominated by Rwandatel, with 1,359 users or 52 percent of the market share. MTN Rwanda comes second with 932 users, representing 35 percent of the market shares. KCB Posts Rwf2 Billion Loss Kenya Commercial Bank (KCB) Rwanda said it posted a Rwf2 billion (KSh318 million) loss last year. The loss was attributed to high start-up costs in penetrating the Rwandan market. The Bank said its balance sheet grew to US$50 million (Rwf29.6 billion), almost two folds higher than Rwf15 million at the end of 2009.The Bank recently received a Rwf3.9 billion (Sh557 million) cash boost from its parent company to restore growth. Maurice K. Toroitich, KCB Rwanda Managing Director said that the move was to inject money in Rwanda, Uganda and Tanzania subsidiaries.Toroitich said that the money will be used recapitalize the bank`s position in the country. Govt Seeks Court Order to Liquidate Rwandatel The Government through the registrar of companies instituted insolvency proceedings in commercial courts against Rwandatel. Louise Kanyonga, the Registrar General, said the decision seeks to liquidate the operator after audited reports indicated that the company is technically insolvent and has a lot of liabilities to sustain its business. He said that in the audited financial statements for the financial year2009/2010 the company was identified technically insolvent. Kayonga said that given the powers of the Registrar General according to the insolvency proceedings, an application was forwarded to Nyarugege commercial court. This simply means that if court rules in favour of government, Rwandatel will shutdown permanentlyJohn Rwangombwa, Minister of Finance and Economic Planning,said the only way to protect government from investing in an insolvent company is to liquidate. BNR expects high credit growth The central bank said that after it simplified its monetary policy, banks will increase lending to the private sector, with growth increasing four fold in the first quarter of 2011 compared to the same period last year. BNR projects a strong recovery in credit to the economy based on the slow growth in 2010 after a credit clutch. Credit to the private sector is expected to grow by 22.4 percent this year, up from 12.7 percent in 2010. Francois Kanimba, Central bank governor, said outstanding credit to the private sector grew by 4.7 percent between December 2010 and February 2011. Kanimba said that there is indication of good performance although the volume is still low.The Governor said that preliminary data for March indicated sustained growth. AfDB to decentralise its operations The African Development Bank (AfDB) announced plans to decentralise its operations over the next five years.This is in an effort to support the quality of its direct on-the-ground support to member countries. The Bank’s Board of Directors approved a roadmap for decentralisation of its operations, which involves opening four new field offices in Burundi, Central African Republic, Liberia and Togo. According to AfDB, the above mentioned countries are classified as fragile states. The move is aimed at strengthening the Bank’s existing field offices, expanding its presence in these states as well as consolidating regional capacity. AfDB’s President, Donald Kaberuka said that decentarlisation has clear benefits adding that overriding value comes through improved portfolio quality, better project design and supervision, faster implementation and procurement. RURA may scale down mobile phone penetration target Rwanda Utilities Regulatory Agency (RURA) said it might not hit its six million mobile subscriber target by 2012.The setback may simply be attributed to Rwandatel’s exit as a third mobile phone operator. RURA’s, Director General, Regis Gatarayiha told Business Times that mobile penetration might be affected unless other measures are to be taken.He also pointed out that to fill the gap, RURA plans to issue another mobile operating licence. Ends