Business round up

Gov’t to raise Rwf25b from BK, MTN sharesThe Minister of Finance, John Rwangombwa, said Rwf 25 billion is what Government plans to raise from the sale of its shares both in Bank of Kigali (BK) and MTN Rwanda. The Treasury will also include the expected proceeds in the budget for the next fiscal year. Rwangombwa said the move is part of government commitment to promote accelerated economic growth under the Economic Development and Poverty Reduction Strategy (EDPRS). He added that it is also an approach to liberalise the market.Government intends to sell 20 percent of its shares in BK through an Initial Public Offer (IPO) due to be launched by July this year. The Minister said the process to sale off BK through IPO started and is expected to be completed in September. Rwangombwa said government is negotiating with MTN Group, which he said has the right to first refuse the sale. South Africa’s MTN Group is the majority shareholder in MTN Rwanda. The Government of Rwanda has a 10 percent share in the company. Rwanda set to manufacture hydro power turbinesAs a way of cutting energy costs, government is examining possibilities of manufacturing turbines for small and micro hydropower plants. Rwanda`s State Minister in Charge of Energy and Water, Eng. Coletha U. Ruhamya, said government will produce turbines for pico and micro installations locally. And according to her, this will lower costs as well as improving local skills. She made the revelations on Friday last week during a ceremony to award certificates to 30 hydro power engineers after successfully completing a course in hydropower engineering. The Minister said government will also hit a target of generating about 1,000 MW in seven years from the current 67 MW being produced. 2011/12 budget to tackle tax evasionGovernment announced it will take new measures in the fiscal year 2011/12 so as to improve tax compliance and efficient tax collection. The measures will be announced in next month`s budget reading. The move will facilitate the treasury so as to hit the projected one trillion national budget. Domestic revenues are expected to slightly increase by 0.2 of GDP to Rwf5.38 billion next fiscal year, up from Rwf4. 4.71 in the year 2010/11, according to the budget framework presented to Parliament last week. John Rwangombwa, the Finance Minister, noted that chances of implementing government programs depend on available resources saying government target requires more resources. Rwangombwa said that the government is increasing development budget, which means increase in economic base. MFIs adopt voluntary savings strategy Microfinance Institutions (MFIs) adopted the voluntary savings and loans scheme in an effort to increase financial inclusion for the rural poor and end discrimination. The Executive Secretary of the Association of Microfinance Institutions (AMIR), Rita Ngarambe, said the plan is part of the current intervention by both government and financial institutions to enable rural Rwandans access financial services. Ngarambe noted the strategy will facilitate the process of inclusion and a linkage saying the method is right in reaching the poor in Rwanda. She added that with the adoption of the system, the rural poor will be able to acquire loans from financial institutions.The method will also help to mitigate the risks of non performing loans within MFIs. She also said that the portfolio at risk for financial institutions is protected; because of the organized and trained groups with knowledge of investing loans acquired. Kigali International Airport to get Rwf8b facelift Rwanda Civil Aviation Authority (CAA) said Kigali International Airport (KIA) will be refurbished to upgrade it to international standards. The airport will also be designed to facilitate easy access by the physically handicapped people. The Director General of RCAA, Richard Masozera, said the process involves building more airport facilities including escalators that will be supplemented by lifts. Masozera noted that the new and unique facility is one of the requirements for international airports. The development will also see the extension and separation of terminals for departure and arrival passengers and modern look with business class lounge. The check in desks will increase to 16 from 8 while a new baggage belt with a capacity to handle 150 bags per unit time from 80 bags will be installed. BK to unveil new products amid tight competition Bank of Kigali (BK) introduced three new products as part of the banks business plan of the year. The products that will be launched next week aims at improving incomes of the less privileged, targeting women, youth entrepreneurs and senior citizens. BK’s Chief Operations Officer (COO), Lawson Naibo, said the first product will target women on the low end market to give them access to loans and business advisory services. The product intends to uplift the livelihood of Rwandan women and give them financial independence. Naibo added that the youth entrepreneurship product aims at promoting the savings culture amongst the youth. It will also help them acquire loans to start up small businesses. Ends