Business round-up

Traders optimistic about Magerwa takeover The business community is hopeful that the new shareholders of Rwanda bonded warehouses, Magerwa, will increase efficiency through improved customer services. The government recently sold 66.25 percent of its stake in Magerwa. The facility was increasingly failing to cope with changes in the global business environment and dynamism in Information Technology. Portek International-the new owners promised to trim freight costs for imports and exports. This will be done through improving services, use of new technologies and promoting a greater level of communication and cooperation among all stakeholders. The Singaporean company raised optimism within the business community. The volume of goods handled is expected to rise. Ecobank to finalise acquisition of Ghanaian bank Ecobank Transnational Incorporated announced it is exploring plans to acquire a significant equity stake in The Trust Bank of Ghana Limited (TTB). This aims at combining TTB’s business with that of Ecobank Ghana Limited. Ecobank’s Chief Executive Officer, Arnold Ekpe said there have been many positive developments in the Ghanaian market in recent years. He explained that the combined bank will be better positioned to support the growth and development aspirations. He noted that the bank will be in position to address the increasing financial needs of the Ghanaian economy. UK firms to establish insecticide plants in Musanze Horizon Group and a United Kingdom Firm-AGROPHARM (UK) will put up a plant in Musanze district. The plant will produce organic products to be used in crop protection and public health. At a cost of about US$1.2 million, each partner is expected to contribute 50 percent. The General Manager of SOPYRWA, Gabriel Bizimungu, said that the infrastructure is ready and expected to start operations in September this year. The plant will start by producing 5EW-a water based pyrethrum insecticide. This is mainly used in coffee plantations to fight against pests. Bizimungu said that the plant has capacity of producing different products, which are purely organic. He noted that these are the products which are most preferred on the market. Banks to venture into rural Rwanda Banks are now ready to extend financial services to the rural areas after government pledged to guarantee the risk in the agricultural sector. Government recently set up the agriculture grant fund for any productive project in the agricultural sector. The Chief Commercial Officer of Banque Populaire Du Rwanda (BPR), Paul Van Apeldoorn, said that the fund will facilitate banks to extend loans to the sector which is said to be risky. He explained that since the Business Development Fund is willing to secure part of the loan, this will help banks contribute to the development of the sector in a sustainable manner. However, he noted that understanding the sector well reduces risks. He also said that through the provision of advisory services, farmers will benefit. FINA Bank projects higher profits FINA Bank said it projects earnings to rise in the second quarter of the year compared to the first quarter. Between January and March this year, the bank realized Rwf160 million. The Managing Director of FINA Bank, Rao G. Balivada said that the bank `s financial reports are still being audited, but preliminary results show a better financial position. Balivada said that the achievement is attributed to improved recovery, cost control and additional noninterest income channels. Government to support local construction firms The government plans to support in increasing the capacity of local construction firms. This is in line with boosting their competitiveness as well as increasing their contribution towards infrastructure development. Local firms do not compete effectively with foreign or international firms. The Minister of Infrastructure, Albert Nsengiyumva, said local firms lack access to finance something that limits them from acquiring modern equipment used in the industry. He said that through Rwanda Development Bank, a grant will be put in place where local firms will get access to finance. The Minister explained that this will enable firms acquire modern equipment to effectively compete on the local market. He also said that the government will support training institutions to train contractors. KCB Rwanda projects profit drop in quarter two After having a successful first quarter, KCB Randa expects its profits to slip in the second quarter.Between January and March this year, KCB netted Rwf 54m after experiencing a 2 years loss. The Bank`s Managing Director, Maurice K.Torotich, said that based on the preliminary results yet to be audited, the bank`s earnings are expected to slightly come down. Ends