Business round up

Financial institutions asked to adopt modern payment system The government challenged all financial institutions to embrace electronic transactions in a way of promoting a modern financial system. The Minister of Finance, John Rwangombwa, said there is need for a strong and modern financial system in order to achieve strong and sustainable economic development. He explained that to reduce cash payments, banks must go electronic in all payment systems. The Minister made the remarks at the launch of the Central Securities Depository (CSD). The CSD is one of the components of the Rwandan Integrated Payments Processing System (RIPPS) that aims at facilitating electronic transaction of cash, securities and equities. The system will simplify the process of registering and tracking ownership of bonds and private equities traded at the Rwanda Stock Exchange (RSE). RwandAir secures US$60m loan facility RwandAir signed an agreement with PTA-Bank to facilitate the national carrier, secure a US$60m (Rwf35.7b) loan facility. This will be the third loan deal in less than three years and it will facilitate the carrier to purchase two Boeing 737-800s. The two are expected this month and in October. The loan is meant to be paid in 10 years and this brings RwandAir`s total credit from PTA Bank to US$85m (Rwf50.4b). This comes after the approval of EXIM Bank to finance RwandAir’s purchase of two Boeing 737-800s. RwandAir’s CEO, John Mirenge, appreciated government’s effort in supporting RwandAir financially to get the desired required standards. The CEO noted that with the acquisition of the fleet, the airline plans to connect Rwanda to the rest of Africa and beyond. Bralirwa’s shares record Rwf8b turnover on RSE The Rwanda Stock Exchange (RSE) was report to have recorded a total turnover of Rwf8b out of 42.4 million shares traded in 702 deals as of July 25, 2011. This is based on the official statistics published in the central bank’s monetary policy and financial stability statement. Bralirwa became the first local company to list its shares on January 31, 2011. This will be followed by Bank of Kigali after its Initial Public Offering (IPO) was oversubscribed by 274 per cent. The Operations Manager of Capital Markets Advisory Council (CMAC), Celestine Rwabukumba, said investors are closely watching the market. He explained that since most banks’ subscribers are Rwandans, speculators/investors will be rushing to buy more shares on the secondary market. However, he noted that it was still too early to predict what will happen on the secondary market. Rural savings groups to be linked to mobile banking It was reported that Voluntary Savings and Loans Associations (VSLAs) will soon stop using cash in their financial transactions. This is due to MTN’s mobile money service that is expected to boost the groups’ savings through providing accounts for members to safely deposit their funds. The Project Manager at Care International Rwanda, Innocent Rutikanga, said each group will have a mobile phone which has a mobile money account for the group to enable each of the members send their savings. He said that the organization recognises the need for VSLAs to link to financial institutions and mobile money systems. He said this will provide more diverse range of financial services to the people. The initiative is championed by MTN and will see 4,999 VSLAs that have accumulated savings over Rwf500 million engage in cashless transactions. Pan African foundation eyes Rwanda’s agricultural sector Tony Elumelu Foundation, through its principal investment company is set to invest in Rwanda. The Chief Executive Officer (CEO) of the company, Dr.Weibe Boer, said the company wants to be part of the country`s success story. The foundation intends to invest in agricultural production and processing as well as ICT through software development and a mobile payment system. Boer said that the company intends to work with the School of Finance and Banking (SFB) as a way of creating a pipeline to entrepreneurs. He said this will support imaginative business leaders whose ideas can create sustainable employment and foster regional partnerships. The foundation identifies and grooms business students, young entrepreneurs and CEOs of African corporations at various stages of development. Ends