Business round-up

BK secures US$20M to boost lending Bank of Kigali (BK) announced it will increase its lending to the private sector by 30 percent.BK received a credit line worth US$20 million (Rwf1.19 billion) and a guarantee fund of €6 million to Support Small and Medium Enterprises. BK`s Managing Director, James Gatera, said the bank will not discriminate in funding any project in the economy. Gatera said the development will help to extend long term credit to projects in the country while the guarantee scheme will act as collateral to SME’s with out collateral. Kabarondo traders warned on tax fraud Rwanda Revenue Authority (RRA) Regional Coordinator of Eastern Province, Jean Marie Vianney Gakwerere, urged business operators and residents of Kabarondo trading centre in Kayonza district to avoid smuggling. Gakwerere advised that such commercial activities must stop so as to boost the national revenue collection. Other unlawful tendencies pointed out in the business include under-declaration of taxes and non issuance of invoices. This was during a meeting aimed at tackling issues related to tax laws as well as understanding the challenges faced by taxpayers so as to formulate lasting solutions. Young entrepreneurs optimistic after graduation The International Christian Chamber of Commerce (ICCC) awarded certificates to 27 young entrepreneurs after successfully completing a three months training. The trainees said the skills acquired would help them in operating and benefiting in their business operations. They acquired technical and management skills which they said would help them become better business operators.One of the beneficiaries, Sandrali Sebakara, said the training gave him an edge over his competitors.. John Gara, the CEO of Rwanda Development Bank (RDB), which organized the awarding ceremony in collaboration with Rwanda Business Development Centre (RBDC), said RDB will continue supporting entrepreneurial training programs. Inflation Triggers Higher Food, Fuel Prices It was reported that commodity prices in Kigali markets rose in the last two months leading to increased cost of living. The annual inflation jumped to 4.1 percent in March from 2.56 in February. Reports from the National Institute of Statistics of Rwanda (NISR) indicated that the inflation rise is a result of rising prices of food, non alcoholic beverages, housing, water, electricity, gas and other fuels, transport and education. The Business Times mini survey shows that cowpeas rose from Rwf600 per kilogramme in March to Rwf700.Ground nuts increased from Rwf700 per kilogramme to Rwf900 as Irish potatoes increased from Rwf130 to Rwf170. Tomatoes price decreased from Rwf600 per kilo to Rwf400, a kilogramme of bananas rose from Rwf140 to Rwf180 Other foodstuffs like sweet potatoes rose from Rwf200 per kilogramme from Rwf150, maize flour from Rwf350 to Rwf400, per kilogram. Rwanda targets US$25b from methane gas project Reports show that about US$ 25 billion is expected in 50 years in the ongoing methane gas project in Lake Kivu if the 60bn cubic metre of methane on the lake sea bed is extracted Dr. Natacha Tofield Pasche, an expert in limnology extracting methane at the lake will not only provide energy but also reduce methane threats. Pasche made the remarks while addressing achievement of the Kivu monitoring project. The assessment approved the extraction considering resource management, lake stability, effects of re-injected water, basic principles and mandatory requirements of extraction. Ange Mugisha, an expert with Kivu monitoring project, said the team has carried out 54 campaigns at KPI, baseline campaigns on REC, Kivuwatt and carried out CTD profile of the biozone. Rubavu traders cautioned on tax evasion Rwanda Revenue Authority (RRA) said that Government is losing a lot of tax revenue through smuggling in Rubavu District. It indicated that traders are reportedly evading Value Added Tax (VAT). RRA says smuggling is through a porous section of the border with the Democratic Republic of the Congo. Records from RRA proved that VAT collection from the district slid to Rwf170m in 2009, from Rwf203m in 2008 although there was a slight increase last year to Rwf197m. Patrick Gayawira, RRA’s Regional Coordinator said that normally, VAT has to increase basing on the development registered. However, he noted that despite economic development registered by the district, VAT collection has reduced. Gayawira pinpointed players in hotel industry, bakery and other service providers as the main culprits. BNR commends CARE’s financial inclusion model The National Bank of Rwanda (BNR) commended Care International Rwanda’s methodology of voluntary savings.BNR said it would promote the financial status of the rural poor. Through the SAFI project, CARE uses voluntary savings and loans methodology to enable the poor access credit to boost their incomes. The former Central Bank Governor, Francois Kanimba, said that the VSL methodology was best option for financial institutions to use if they are to reach to the rural poor.He said the scheme was important in mobilizing the poor. Ends