Business round-up

Local insurers target share of import business Local insurance firms demanded that imports be insured locally so as to increase revenues for insurance companies as well as increasing the penetrate rate. The Executive Secretary of Association Des Assureurs Du Rwanda (ASSAR), Bernardin Kubwimana, said that Rwanda Revenue Authority (RRA) should make it an obligation that all imports be locally covered. He urged that this will boost revenues for local insurance companies and contributes to the growth of the economy. Kubwimana explained that imports are supposed to be insured adding that 70 percent of consumed products are imports. He noted that the country would benefit from the move. Survey to help improve MFI product packaging The Association of Microfinance Institutions of Rwanda (AMIR) will soon conduct a national market survey. This aims at improving the packaging of microfinance institutions’ products. The central bank recently urged MFIs to craft new products and services to suit the rural poor. Rita Ngarambe, the Executive Secretary Amir, said that the survey will provide information to help MFIs develop tailored products to the rural poor. She said that the first step to be taken will be conducting trainings on how to segment the market so as to find their position and market survey to see different needs of these niche. Ngarambe is optimistic that the survey will protect MFIs from losing their customers due to product duplication. Bank of Kigali opens up five new branches Bank of Kigali (BK) opened up new branches in Karongi, Ruhango, Nyanza, Bugarama and Butaro in a move to bringing its services closer to its clients. This brings the bank’s total branch network across the country to 38. The bank has a target of having 40 branches by the end of the year. Janvier Mucyo, BK’s Marketing Manager said that the bank intends to have at least eight branches in a district. The Assistant Manager of BK Karongi district branch, Charles Remezo, Karongi noted that there are new clients turning up to open up accounts. He said that for only last week, about 100 new clients opened up accounts in Karongi. The development relieves BK clients from moving long distances to access BK services from either Kigali or Muhanga district. Rwanda pushing for duty-free sugar imports Rwanda requested its East African Community (EAC) counterparts to consider waiving import taxes imposed on sugar from outside. This aims at increasing supply and stabilizing prices in the local market. The Minister of Trade and Industry, François Kanimba, said that they want EAC to allow Rwanda to import sugar, duty-free. He explained that this will help avert the looming acute domestic supply shortage. If considered, the country will be in position to import 50,000 tonnes of sugar from Latin America and Asia in the next six months. Sugar imports outside EAC and COMESA attract a customs duty of 100 percent depending on Cost, Insurance and Flight. It also attracts a VAT of 18 per cent and an extra 5 percent to importers without certificate of compliance. RURA revokes Star Africa’s ISP, radio licences Rwanda Utilities Regulatory Agency (RURA) announced its revocation of a radio communication license and Internet Service Provider (ISP) licence held by Star Africa Media. This was as a result of failing to honour contractual obligations. RURA’s Director General, Regis Gatarayiha, said the decision was taken by the regulator’s board. Star Africa Media, which recently rebranded as Star Times, also holds a digital pay TV license. The Director also explained that Star Times explanations were not satisfying even after RURA`s numerous enforcement letters and subsequent enforcement notice hence revoking the two licences. The Managing Director of Star Times, Ken Xiz could not comment on the issue. However, Gatarayiha insisted that Star Times was contacted on different occasions before the conclusion was reached but the company did not show interest in complying. Rwanda to reduce banana imports Plans are under way to boost production of raw bananas to 1.6 million metric tonnes annually up from 800,000 metric tones. The move aims at reducing the importation of the food crop. The country produces 1.6 million metric tonnes of different varieties including beer bananas, dessert and raw bananas per year with an annual yield of 10 tonnes per hectare, a target that has since been upped to 17 tonnes. The head of Banana Extension Program at Rwanda Agricultural Board Dr. Charles Murekezi, said the plan is to increase yield on the same area covered by planting high yield bananas. KCB Rwanda taps into Group’s exchange program KCB Rwanda, will be sending some of its staff on a group exchange attachment program to other KCB group subsidiaries in Tanzania and Kenya. The three months program was initiated in May 2011 and targets the whole staff. The scheme will see KCB group subsidiaries in Rwanda, Kenya, Uganda, Tanzania and South Sudan exchange staff attached to different departments and branches. KCB Rwanda’s Managing Director, Maurice K. Toroitich, said the bank will send over 10 staff to Kenya and Tanzania and similarly receive staff from the group’s other subsidiaries. He explained that the program will develop staff insights and cultural understanding and offer more learning experiences. Toroitich added that this is in line with the bank`s strategy to strengthen and improve business. Ends