Business round up

Revenue collections up Rwanda Revenue Authority (RRA) announced an increase in revenue collections by 23.8 percent to Rwf476.9 billion this year compared to Rwf385.2 billion last year. The increase is partly attributed to a surge in imports and taxes levied on imports. Value Added Tax (VAT) collections increased by 5.2 percent to Rwf141.5 billion. Pay As You Earn (PAYE) brought in Rwf113 billion while excise duty collections stood at Rwf 85.8 billion. The acting Commissioner General at RRA, Richard Tushabe, said that although there is a big gap in VAT collections, the PAYE collection is good. This year, government projects total domestic revenue collections to reach Rwf529.4 billion. Tushabe emphasized that reducing budget dependency on external sources is a process that is on going adding that in a period of five years, the country`s internal resources will contribute up to 60 percent of the national budget. Rwandatel to discuss compensation with creditorsRwandatel will next week meet it’s over 200 creditors to discuss the company’s liquidation process and payment of its debts. The commercial court of Nyarugenge recently ruled that Rwandatel must liquidate its assets to generate funds and pay back debts worth US$88.9 million. Rwandatel’s Administrator, Richard Mugisha, said that as the law stipulates, the company is to meet with its creditors to agree on resolutions and approve a managerial team that will oversee the company in the process. He explained that the general meeting will approve a creditors’ committee to represent their interests during discussions with Rwandatel Rwanda joins Global Forum for Entrepreneurs It was reported that for the first time, Rwanda will participate in the global entrepreneurship week. The country is expected to expose its current success in promoting the business environment. Initiated in 2008, global entrepreneurship week helps to network, mentor and coach young people to unleash their potential and create change in the world through entrepreneurship. The Country Director of Babison-Rwanda Entrepreneurship Centre (BREC) Christopher Smith said the event will introduce the notion of entrepreneurial behaviour to many young people. Babison-Rwanda Entrepreneurship Centre is an affiliate of Babison College United States of America. Smith noted that there is need to have a generation that will see the market place as a positive force to solve the world’s problems. This was during the second workshop on development entrepreneurs. Equity Bank set to change banking practicesKenya’s Equity Bank is set to open its doors in the third quarter of this year and has promised to change banking practices. However, the bank did not confirm when exactly it will start operations. The General manager of Blue Print Ltd, in charge of Equity bank’s Public relations (PR), Alfred Ng’ang’a, said that it is too early to declare the date when it is due to start work. The bank is set to invest approx Rwf6.5 billion which is anticipated to boost lending to Small and Medium Enterprises (SMEs). This will be through a new approach known as agency banking, one that has been successful in Kenya. Equity bank has been given a go ahead by National Bank of Rwanda (BNR), according to the lender’s Financial Report as of the Month ending June. EXPO opens with more foreign exhibitorsThe country`s annual International Trade Fare, commonly known as EXPO started with more foreign exhibitors than the previous year. Officials said that 141 foreign exhibitors from 19 countries will showcase their products and services. The Expo that will go on until August 10, 2011is organized by the Private Sector Federation (PSF) in partnership with the Ministry of Trade and Industry. The Acting Director of Investments and Special Projects at PSF, Ephraim Karangwa, said this year`s Expo attracted a big number of first time foreign exhibitors. It has attracted exhibitors from various countries including Pakistan, Syria, India, Turkey, Ghana, Sudan, Burkina Faso, Senegal, DRC Congo, Egypt, Emirates, Iran, Kenya, Uganda, Tanzania, Burundi, USA and Nigeria. Pro-Poor Savings Model Triggers Banks to Tap Rural Clients Reports indicate that the sustainable access to finance and investment-a saving model seeking to empower the poor in rural areas is now helping banks to reach previously un-banked sections of the society. Commercial Banks currently operating in the local banking sector are hopeful the model will help boost the bank’s to reach the rural un-banked population. Central Bank statistics indicates that the un-banked population stands at 80 percent of the total population. The Branch Banking Division Leader at Urwego Opportunity Bank (UOB), Francis Ndayiziga, is optimistic that increase in rural savings will help boost penetration of banking services therefore reducing banks’ operating costs. New bill set to boost Mining operations A new bill currently in parliament is set to change the operations of the mining sector. Once passed into law, it will affect operations of mining companies and Rwanda Geology and Mining Authority (OGMR) as the sector regulator. The bill calls for a new tax system that runs through all mining activities, right from the preliminary stages of exploration to advanced levels of mining. Currently, mining companies are taxed like any other businesses through the declaration of profits and payment of income tax. The Director General of OGMR, Michael Biryabarema, said the new bill seeks to oversee a better implementation of existing regulations and environmental policies to modernise the sector and make it more lucrative. Ends