Business round up

Remittances to hit US$103.1m, central bank The central bank projects remittances to increase by 4.9 from US$98.2m (Rwf58.1b) to US$103.1m (Rwf61.2b) as the economy recovers. BNR`s statistics indicate that total remittances into the country increased by five percent to $US25.7m (Rwf15.3b) in the first quarter of 2011 compared to $US24.5m (Rwf14.6b) in the same period last year. The bank said the money comes from workers living abroad. The Central Bank Governor Claver Gatete said that it’s an indication of trust in the economy that creates confidence in the workers to send the money back home. The high remittance flows is expected to have a strong influence in stabilizing the Rwandan francs in comparison with regional currencies. Last year, the franc depreciated by two percent against the Kenyan shilling, six percent against the Tanzanian shilling and 14 percent against the Ugandan shilling. And it appreciated by five percent against the Burundi franc. Parliament wants Rwf350m allotted to fencing Akagera Park It was reported that through the budgetary committee, Parliament wants government to allocate Rwf350 million to fence the Akagera National Park. The law makers say the money should come from the Rwf30b allocated to the Rwanda Development Board (RDB) in the budget framework paper for the financial year 2011/12. During a preliminary session to discuss the budget framework, the Vice president of the budgetary committee, Abas Mukama, said the issue needs attention since animals from the park kill people living in its boundaries as well as destroying crops. The Rwf350 m will be an addition to Rwf 500 budgeted for in the financial year 2010/2011. The additional funding was supposed to come from Dubai World as part of its investment commitments in the country before the United Arab Emirates Company slashed its investments in Rwanda due to the global financial crisis. RBS’ new Rwf1b laboratories promote exports After the establishment of ultra-high laboratories exports are expected to increase in value and volume. The Director General of Rwanda Bureau of Standards (RBS), Mark Bagabe Cyubahiro, the laboratories improve the standards of export goods for regional and international markets. The facility was launched last year. Bagabe said that the lab will also enable manufacturers to test their products, saying that it’s a way to promote export trade. He also said that it will improve the credibility of the products.Cyubahiro was addressing journalists on the progress the bureau has achieved in performing its duties. He also said the laboratories will help in weighing the products, measuring the quantity of ingredients to the standards compliant with international market demands. SMEs to receive US$ 1.6m financing from IFC International Finance Corporation (IFC) announced US$1.6m (Rwf900m) of equity investment in Business Partners Rwanda (BPI Rwanda). The Corporation will focus at improving access to finance for Small and Medium Enterprises (SMEs). A deal was signed between IFC Director for Eastern and Southern Africa, Jean Philippe Prosper and the CEO of BPI, Martin Nazeem. IFC, the investment arm of the World Bank, said the money will provide management support and financing to over 70 SMEs. It will also increase employment opportunities.Prosper said that the fund will tap into the expertise of locally based managers and combine financing with business advisory services. Francois Kanimba, the Minister of Trade and Industry said that the government has taken the lead in empowering entrepreneurs and recognises their importance in fostering economic development. Kigali-Rubavu flights to boost trade RwandAir`s second domestic flight-Kigali to Rubavu will promote local and regional trade. The route that recently resumed had been halted in 2009 to allow the completion of renovation and airport upgrading by installing more equipment. The Minister of State in Charge of Transport, Alexis Nzahabwanimana, said that with businesses coming up, the flights will also boost investment and the movement of people. RwandAir will operate four weekly frequencies every Monday, Tuesday, Friday and Sunday. This marks RwandAir`s third flight launched this year after that of Brazzaville- Republic of Congo and Libreville- Gabon routes. Nzahabwanimana added that the country`s strategic location will be used to become a hub in air transport in the region. He noted that opening up doors to the rest of the world will lead to economic development. Expert pronounces Africa’s window to finance development It was also reported that there is need for African central banks to increase international borrowing and investment in natural assets so as to play a big role in financing development. The Director for the Centre for the Study of African Economies at the University of Oxford, Prof Paul Collier, said that the issue is whether new liabilities are sustainable, which in turn depends upon the management of assets. He was addressing a meeting of African central bankers recently in Kigali Collier shared his experience on how developed economies accumulated liabilities as part of the growth process. He explained that debt accumulation and the reduction of natural resources were core methods of financing the public infrastructure that is essential for development. Ends