Business round-up

Investors laud government’s tax incentivesInvestors are hopeful that the decision by government to waive taxes on investments will attract Foreign Direct Investment (FDI). They believe that the move will aid growth and fast track the county’s economic development agenda. The president and Managing Director of Marriot Lodging International, Ed Fuller, said that Rwanda leads in providing a favourable investment climate in Africa. He made the remarks while touring the construction site of the US$55m five star Marriot Hotel in Kigali. Fuller said that his team is impressed by the country`s reception and willingness to support investments. The Executive Director Doyelcy Ltd, a company that owns up to 25 percent of the project, Hatari Sekoko, said that 15 per cent on the revolving taxes was waived; a five year guarantee on corporate taxes, a flat import duty of 5 per cent and an exemption on Value added Tax (VAT). Ecobank acquires Oceanic BankECOBANK Transnational Inc entered a transaction implementation agreement with Oceanic Bank International. This will enable the Ecobank Transnational to buy and recapitalise the bank. Currently, Ecobank operates in 32 African countries including Rwanda. The transaction provides that Oceanic Bank will be merged with Ecobank Nigeria therefore creating a strongly capitalised bank. The bank is expected to become a leading Nigerian bank that will provide services to a large number of corporate, public sector and retail customers across Nigeria. Ecobank top officials said the transaction is based on a compelling strategic rationale. The Chief Executive Officer of Ecobank Group, Arnold Ekpe, said the transaction will transform the banks` activities. RwandAir records strong passenger growth The national carrier, RwandAir, registered an increase in passengers by 6,000 between April and June from 20,000 at the same period last year. The airline’s Chief Executive Officer, John Mirenge, said that the 233.3 per cent growth is attributed to the acquisition of new aeroplanes and the company`s teamwork. Mirenge explained that monthly passenger numbers the airline has been carrying recorded a steady 20 per cent growth every month. He said that the number is expected to grow further after the launch of new flights this year. The national carrier will also acquire two Boeing 737- 800s jets from Boeing Commercial Airplanes this August and September. Mirenge noted that with the new Boeing 737-800s, there is projection that more destinations will be served. The airline is also planning to open up new routes in West Africa as well as upgrading the Dubai route. Shift to digital broadcasting on track The television industry is set to benefit from increased investment after it emerged that all necessary infrastructure is in place to switch from analogue to digital broadcasting ahead of the December 2011 deadline. A study conducted by Rwanda Broadcasting Services (RBS) through the Rwanda Television (RTV), indicated that digital images can be received across the country. Government had stopped issuing licenses to investors with analogue equipment as it set up infrastructure to support the migration to digital. According to Rwanda Utilities Regulatory Agency (RURA), a number of investors are in advanced negotiations with the government. The Director General of RURA, Regis Gatarayiha, said that government eased regulations and processes of setting up a TV station in the country. He said this is all aimed at attracting local and foreign investors. PSF to organise cultural exhibitionsThe Private Sector Federation (PSF) is to organise cultural exhibitions that will aim at promoting the tourism industry. Tourism is one of the country’s top foreign exchange earners. The Chairman of PSF Faustin Mbundu, said that the federation continues being innovative through supporting cultural tourism to turning the city culturally active. He also said that PSF will organize mini trade fairs at the sector level to support emerging sectors such as construction, ICT, green energy, agriculture technologies and tourism among others. Mbundu noted that through such initiative, Small and Medium Enterprise (SME) industry get new opportunities to grow faster. He said that PSF and the government are working together to ensure that the proposed international trade centre is complete by 2016. The Chief Executive Officer (CEO) of PSF, Rogers Munyampenda, said that a survey will be conducted during the expo to enable the roll out of sector trade fairs in the near future. Ends