Business round up

Budget to hit Rwf1 trillion The Minister of Finance and Economic Planning, John Rwangombwa, said the country`s national budget for the year 2011/2012 will go up to Rwf1.16 billion from Rwf984 billon in 2010/11. Rwangombwa said the increase is due to the boost from Global Fund support valued at Rwf74billion which was formally not captured as budget support. He also explained that total increase is based on domestic resources and is a nominal increase from partners that has been always outside the budget. The Minister said that domestic revenues are increasing by 0.2 of GDP to Rwf5.38 billion next fiscal year from Rwf4. 4.71 this year. BPR recovers after gloomy 2009 Banque Populaire du Rwanda’s (BPR) said it recorded a net profit of Rwf1.2m for the year 2010, after a net loss of Rwf1.1m recorded in 2009, saying it steadily recovered. The bank’s CEO, Herman Klaassen, attributed the development to extreme efforts the bank put in its operations which saw the loan portfolio and customer deposits grow. He pointed out that the transformation of the cooperative structure of UBPR into the commercial bank saw the bank`s management providing both fundamental and incidental services efficiently. He said the level of impaired loans was stabilised while net provisions for bad loans reduced. BPR`s Head of Marketing and Product Development, Richard Ndahiro, said that the results are reflections of better business. Gov’t to service SSFR’s Rwf 2b debtGovernment and the Social Security Fund of Rwanda agreed on how the former will pay arrears accumulated between 1999 and 2004.The arrears are employee contributions from public institutions. In the next financial year, Government will pay Rwf600 and the rest will be paid in installment. The Minister of Labour and Public Service, Anastase Murekezi, said government pays arrears of contributions not paid by public institutions based on terms agreed. Government targets to collect Rwf30 billion from 300,000 registered workers this year up from Rwf5 billion in 2005. On a quarterly basis, employees have to declare how much to submit to the fund, according to the law. The employee’s contribution to his social security account consists of a 5 percent employer’s contribution and 3 percent of an employee’s salary. MFIs urged on transparencyThe Association of Microfinance Institutions in Rwanda (AMIR) advised Microfinance Institutions (MFIs) to be transparent and ease business risks. Rita Ngarambe, the association`s Executive Secretary said most MFIs do not carry out risk management, ending up bankrupt which he said causes customers’ loss of savings. He pointed out that in 2006, many customers lost money when nine MIFs closed after running bankrupt. Ngarambe therefore advised that MIFs learn pricing their products and develop effective ways of recovering loans. However he warned against harsh means in recoverying loans. He also said the association will embark on training programmes to ensure that MIFs focus on social objective as well as monitoring their development. Shift from subsistence farming, World BankRwandan farmers were advised to shift to sustainable farming methods if they are to promote and increase agriculture off-farm employment like agro-processing. Birgit Hansl, the World Bank Senior Economist, Africa Region, said there is need to change skills profile of those in the agriculture sector and build their capacity for them to diversify production. The World Bank official was speaking during the Rwanda Economic Update, the first of its kind, accessing the country`s development in the last six months. The assessment indicated that that the country`s agriculture grew by five percent in the last five years, contributing 36 percent of the overall economic growth and generating 45 percent of the country’s export revenues. 32 to lose jobs in bank takeover It was reported that a total of 32 employees will loose their jobs from former Housing Bank and Rwanda Development Bank (BRD) as a result the latter taking over former. Housing Bank has been employing 34 people but BRD will only retain 16 employees. BRD’s Managing Director, Jack Kayonga, said that the development will affect these employees, but that those affected will be compensated. He added that BRD will also layoff 13 of its employees to be replaced by the 16 recruited from BHR. Trade fair targets 20 countries The Private Sector Federation (PSF) said it targets 20 countries in this year`s International Trade Fair that will take place from July 28 to August 10. This shows a rise in the numbers of countries expected from 13 which attended last year. Ephraim Karangwa, the Acting Director of Investments and Special Projects at PSF, said mobilisation of exhibitors started in February. He said that as local business communities have been invited, a large number of exhibitors from the region, Africa, Europe, Asia, Latino-America and Brazil have been invited too. Organised by PSF in conjunction with the Ministry of Trade and Commerce, the fair is expected to attract over 500 exhibitors. Ends