Kigali Business Associates

2013-10-19T05:08:00.006-07:00

Wednesday, October 2nd, 2013

Change in transport policy causes Senate headache

Minibus drivers feel they are squeezed out of the market. (file photo)

Recently, Kigali changed transport zones and regulations for minibuses in an effort to shorten lines at bus stops and improve overall transportation in the city. While the public welcomed the change, some transporters are unhappy.
http://www.youtube.com/watch?feature=player_detailpage&v=QYpwyRApCII#t=64

The changes resulted in removing some mini-bus drivers from the road, and now those drivers are petitioning the government to reconsider its actions.
On September 17, drivers in the Association of Transporters went to the Prime Minister’s office and the senate with a letter presenting their complaints, namely, losing their businesses. They are demanded that they be allowed to reopen their transport businesses after reforms are complete.
Instead of seeing their demands taken into consideration, however, the drivers were arrested and put into jail by security forces for illegal demonstrating.

On September 23, the commission of finance in the senate scrutinized the appeal as presented to it by these citizens and said that it will make a decision after listening to both parties.
“Drivers presented to us their appeal saying that they were treated with injustice. Tomorrow we will talk to the other party, the city of Kigali, then after we will communicate to you the decision,” said Perine Mukankusi, the head of finance commission of the senate.
The problem seemed to be tricky on Tuesday, as the meeting was a closed one, attended by the mayor of the city of Kigali, Fidel Ndayisaba, the Minister of State in charge of transport, Alexis Nzahabwanimana, as well as other officials from RURA and the members of senate.
However, neither of these officials has talked to the press.
Fidel Ndayisaba on his side was saying, “This is at the senate, put your questions to them.”
The senators were also not ready to comment on the issue or respond to questions from the journalists present.

“We request that parliament advocates for us and that we be given three years of additional time to operate in Kigali.”

The transport reform allows only three companies to operate in the city of Kigali, while the remaining buses and minibuses are relegated to using secondary, less traveled roads.
According to officials, the new transport reform was put in place to bring positive change to the city and reduce long rush hour queues.
While the out-of-work minibus drivers complain that they can no longer afford to feed their families, the mayor of the city told that the new transportation policy was not intended to help the vulnerable, but to improve transport in the city.
Kigali Bus Services (KBS), Royal Express and Rwanda Transport Federation Cooperative (RFTC) share passengers in designated transport zones.
James Ngirente, a mini-bus driver, says that drivers have asked the parliament to advocate for their jailed colleagues to be released, and that people with mini busses be granted the license to operate in the city, as they plan to invest in buying busses.
“We request that parliament advocates for us and that we be given three years of additional time to operate in Kigali. We also need our colleagues taken by the police to be released,” he said.
After presenting the letter to the Prime Minster’s office, these drivers went to Kacyiru bus station, where they met their colleagues and from where the police arrested them.
While the drivers of minibuses appeal for their lost jobs, passengers in Kigali say that the new system is more efficient and convenient.
“After the reform and implementation of transport zones, things have been well arranged in the city. There are no longer people coming to push passengers into their small cars. Now we simply know what bus is coming and we wait for the right time to go to a certain destination,” says Clarisse Uwayo.
The new transport system was launched on August 30, 2013.
According to the spokesperson of the police, the case against the demonstrating drivers was handed to the prosecution.

2013-10-19T05:05:00.001-07:00

KCB launches M-Benki in race for micro-deposits

Share Bookmark Rating

Cabinet Secretary for Information, Communications and Technology (ICT) Fred Matiangi (left\0, Kenya Commercial Bank Group chief executive officer Joshua Oigara and Safaricom Limited CEO Bob Collymore (right) during the launch of a mobile banking product dubbed KCB M-Benki targeted at the unbanked population in Kenya and the region. Photo/SALATON NJAU Nation Media Group

By Scola Kamau, The EastAfrican, Special Correspondent

Posted Tuesday, October 15 2013 at 15:16

In Summary

KCB Group has launched a mobile banking platform targeted at the unbanked population that allows customers to open a bank account without physically visiting a branch.
The platform dubbed KCB M-Benki, which will be available in Kenya, allows customers to open an account under Safaricom’s M-Pesa menu with as little as Ksh1 ($0.01).
The launch of KCB Group’s new platform comes almost a year after Commercial Bank of Africa (CBA) and Safaricom launched a banking platform dubbed M-Shwari that allows customers to open up an account and access micro loans from the bank.

SHARE THIS STORY

KCB Group has launched a mobile banking platform targeted at the unbanked population, that allows customers to open a bank account without physically visiting a branch.

The platform dubbed KCB M-Benki, which will be available in Kenya, allows customers to open an account under Safaricom’s M-Pesa menu with as little as Ksh1 ($0.01).

The launch of KCB Group’s new platform comes almost a year after Commercial Bank of Africa (CBA) and Safaricom launched a banking platform dubbed M-Shwari that allows customers to open up an account and access micro loans from the bank.

READ: Kenya’s M-Shwari transactions hit $445.9 million

“With the growth of mobile phones penetration, the product will be accessible to the unbanked population across the country,” said Joshua Oigara, KCB Group chief executive officer adding that other countries will be considered in the near future.

The platform is hoped to bring a larger population into formal banking, benefit the small and medium enterprises and reduce time spent in opening accounts.

“One automatically becomes a member of KCB and can carry out all other transactions using a mobile phone,” said Mr Oigara during the launch.

KCB Group, which is Kenya’s largest bank in terms of assets, also has operations in Uganda, Tanzania, Rwanda, Burundi and South Sudan.

After CBA’s launch of M-Shwari, micro-loans offered by Safaricom’s virtual banking platform M-Shwari rose by almost 10 times over the seven month period ended July this year, according to data from the Central Bank of Kenya (CBK).

READ: Number of banked households rises, buoyed by reforms in financial services

Total cumulative loans issued under M-Shwari stood at Ksh3.2 billion ($36.7 million) in July 2013, from Ksh337.6 million ($3.88 million) in January 2013 while the total value of savings stood at Ksh1.39 billion ($15.9 million), up from Ksh451.9 million ($5.194 million) over the same time period.

“Accessing all bank services through the phone encourages people to make commitments; we hope to see the banked population rise with more of such products from all sectors,” said Fred Matiang’i cabinet secretary in the ministry of Information Communication and Technology.

KCB Group’s M-Benki launch comes at a time more financial service providers have followed in the footsteps of mobile phone service providers like Safaricom, Airtel, Telkom Kenya and Eassar who have put in place options to enhance mobile bill settlements.

These options have enabled customers to pay for utility bills including electricity and water and are now allowing customers to even purchase goods at various retail outlets.

2013-10-19T04:51:00.000-07:00

Construction industry still growing

A major challenge facing this industry has been the lack of local players in the sector, a reality that is attributed to the inadequate availability of domestic skilled labor. (file photo)

When driving around Kigali, one of the first things you will notice is the construction taking place almost everywhere. Rwanda is currently facing what many would call aconstruction boom. Engineer Kenneth Mwiami with Roko construction says that the increased need for permanent structures is the reason for the boom: “More people are settling in the country and with that there is a need for more structures in the form of homes and offices for these people.”
The country’s construction industry has not only been limited to housing and buildings, but concerns all other sectors of infrastructure. Minister of Infrastructure Silas Lwakabamba noted that a good infrastructure system is fundamental to achieving the set target of Vision 2020, “with a good infrastructure network we can attract more private investment that enables us to attain the goal of having a self-sustaining economy.”
Currently the ministry of infrastructure is working with other sectors, such as Energy, on different infrastructure projects like the Rusumo and Nyabarongo dams for hydro electricity, and the Ministry of Sports and Culture in building a multi-million sports complex in Kimisagara.
With four major construction companies at the beginning of the year, two more players have joined the fold and more are expected as the industry becomes more competitive. A major challenge facing this industry has been the lack of local players in the sector, a reality that is attributed to the inadequate availability of domestic skilled labor.
But these challenges will be curbed by the signing into law of the new construction law draft.
“The new law will enable to streamline all the challenges facing the construction sector,” Lwakabamba also notes.
New construction law
Construction industry stakeholders have welcomed the new national construction policy draft proposal, saying it will streamline the sector and solve the challenges it currently faces, when the law is approved by the Cabinet.
“The draft policy addresses issues like inherent market restrictions, limited access to credit, lack of management capacity and classification of local contractors, allowing for flexibility in the sector,” says Lwakabamba.
The policy will also promote specialization and empower local consultants to take on big projects, as well as ensure that they access the necessary equipment and materials.

“With a good infrastructure network we can attract more private investment that enables us to attain the goal of having a self-sustaining economy.” Minister of Infrastructure Silas Lwakabamba

Lillian Mupende, the City of Kigali director for urban planning and construction, said when approved and implemented, the law will streamline operations in the sector.
“The construction sector is one of the major pillars of our economy. If it is organized and regulated, this will attract more investment into the sector and promote quality and consumer safety,” Mupende, who is also the head of the city’s One Stop Center, noted.
She said that when implemented, the policy would help improve the technical capacity of local contractors, thus creating more employment opportunities for the youth.
According to Peterson Mutabazi, a principle senior engineer at the Ministry of Infrastructure, the policy will strengthen compliance and adherence to sector standards.
“The draft policy articulates the core functions and priorities of government in the industry and addresses issues like lack of maintenance plans.”
Eric Ntagengerwa, the head of planning at the Rwanda Transport Development Agency, said the policy is timely, especially at a time “when the agency is facing a lot of challenges with some contractors. Regulating the sector will help address the issues of lack of quality, inefficiency and lack of categorization in the industry,” Ntagengerwa noted.
According to the draft policy, government involvement in the sector, especially implementation of physical infrastructure projects, will decrease, creating more room for the private sector to take control.
Dismas Nkubana, the chairman of the Rwanda Engineers Governance Council, said the policy simplifies operations for players in the sector, something he hopes stakeholders will exploit to the benefit of the public.
“Combing different players in the industry will make it easy for it to work as one entity. Easy supervision and accountability will bring sanity to the industry,” Nkubana argued.
Lwakabamba said the draft policy is one of the Ministry’s initiatives aimed at creating favorable conditions that allow the population to access equitable and reliable infrastructure, including transport, urbanization, habitation and energy, while protecting the environment.
According to Geoffrey Mutabazi from Rwanda housing authority, the construction sector has not yet hit its peak: ‘with stability and the rampant economic growth this sector is still rapidly growing and we expect more players i

2013-10-19T04:46:00.002-07:00

Fresh plan to double tourist arrivals by 2017

PHOTO | DIANA NGILA President Kenyatta with various Cabinet Secretaries and other leaders at the Magical Kenya Travel Expo. NATION MEDIA GROUP

In Summary

President Uhuru Kenyatta said the government plans to increase budget allocation to increase tourist arrivals
Tourism Cabinet Secretary Phyllis Kandie said the plan is to tap to meetings, incentives, conferencing and exhibitions tourism

More by this Author

Tourism will have to diversify its offering from the beach and bush package if it is to double tourist arrivals by 2017.

Speaking at the official opening of the third Magical Kenya Travel Expo on Friday, Tourism Cabinet Secretary Phyllis Kandie said the plan is to tap to meetings, incentives, conferencing and exhibitions tourism.

“We have just released a five-year national tourism strategic in which we intend to place a strong emphasis on investments in conference and convention tourism.” The plan seeks to embrace and retain traditional markets but scout for opportunities in emerging markets.

Speaking at the same event, President Uhuru Kenyatta said the government plans to increase budget allocation to increase tourist arrivals. Kenya receives 1.5 million tourists annually. “We have committed to promote Kenya as a destination, rather than stop-over, and to attract at least three million tourists annually,” he said.

Mr Kenyatta added: “Tourism generates around 12 per cent of Kenya’s gross domestic product and accounts for about nine per cent of the country’s total formal employment,” said .

Kenya Tourism Board managing director Muriithi Ndegwa said this years’ expo also focuses on seminars that are aimed at creating updates on trends in tourism in terms of sustainability.

Mr Ndegwa said since Africa has been recognized as the second frontier in investments and tourism presents a need to live up to those expectations.

More in Section Kenya to seek Tanzania advice on creation of mining agency

2013-10-19T04:43:00.002-07:00

‘Modern farming practices the way to go’

The farmers and agribusiness professionals agreed that modern technology is the way to get the best out Rwanda’s arable land. (file photo)

Stakeholders in the agricultural sector have gathered at The Office, a co-working space in Kiyovu, to take part in an agri-business forum. The forum was aimed at promoting different agriculture based businesses and enable networking, and it showed the importance of the country’s most constructive sector.

http://www.youtube.com/watch?v=nCCu3UR-x7A&feature=player_detailpage#t=98
Jacob Emmanuel of White Onion farm, talked about the importance of monoculture and permaculture types of farming in a country like Rwanda: “Monoculture is expensive and destructive especially on Rwanda’s terrain, but it’s the best way of achieving good quality agricultural products,” he said.
The forum also emphasized the importance of training farmers on how best to acquire startup capital, something that has hindered many of them from purchasing the right agricultural tools and expanding their businesses.
Steve Johns of FAIM Africa, the first and only tissue culture lab and propagation nursery of its kind in Africa, noted that for Rwanda’s produce to compete with the rest of Africa, it should ensure production of quality, virus free plants and embrace modern farming techniques like the tissue culture.
“Tissue culture gives predictable, assured results at the right timing of the highest quality,” said Johns. “With tissue-based farming, farmers are assured of quality produce in a shorter period of time,” he added. Through tissue culture, the company projects to bring in $10 million of revenue within the next four years, thus a profit of $4.5 million in the same time.
The farmers and agribusiness professionals agreed that modern technology is the way to get the best out Rwanda’s arable land.

2013-10-19T04:42:00.001-07:00

RGB to adopt another evaluation of service delivery in public institutions

(L-R) Ildephonse Niyonizeye, CEO of Imanzi consult, Dr. Felicien Usengumukiza, Deputy CEO of RGB in charge of Research and Monitoring, Solange Uwizeye from RGB too (Photo by Philippe Mwema Bahati)

In an effort to improve delivery of services in the public sector, the Rwanda Governance Board (RGB) is adopting a new method of examination to better reflect where institutions need to improve.

The last government scorecard released this year indicated that service delivery is still low, with about 70 percent satisfaction.

RGB has worked with Imanzi consulting to develop indicators that will help institutions self-assess their strengths and weaknesses and improve their services.

The indicators address all sectors outlined in the EDPRS II in order to better allow them perform their tasks and keep in mind their long-term goals.

Emmanuel Munyandinda, a consult with Imanzi, said that service quality covers different domains, including facilities available and human resources. “You may have a tool but using it is another thing”, he said, indicating that poor service delivery needs to be mitigated by not just having the right tools, buildings or equipment, but also by using them correctly and efficiently.

Felicien Usengumukiza, the deputy CEO of RGB in charge of research and monitoring, said that public institutions still have gaps in service delivery.

He said that the level of service delivery is not satisfactory, and that why the government needs to improve service delivery.

Usengumukiza pointed out that in central government cumbersome and time-consuming processes still hinder service delivery.

He commended local governance for trying to improve the service delivery at their level. However, he maintained that there are still indicators of poor service delivery at some points, mainly due to bribing or to the wish to attain performance contracts.

“Sometimes local leaders do not offer services properly as expected due to that they want to achieve their goals during performance contract,” he said, noting that people should get the free services they need in public institutions.

He also called upon private institutions to consider service delivery as the main pillar of business.

Studies show that poor service delivery costs about 40 million RwF a year in losses.

Observing that even in the private sector, service is not perfect, the deputy CEO of RGB requested both private and public sectors to deliver better service. Which, according to him, is easy: “Delivering service is not difficult; it depends simply on will depending on your objective and where you work. People need to change behavior and love it.”

2013-10-19T04:40:00.001-07:00

Rwanda among ten best countries to start a business

Business registration at RDB can be done in only 6 hours. (file photo)

The latest report by the World Bank on Doing Business has ranked Rwanda among the top ten countries in the world to start a business.
According to the report that ranks economies for ease of doing business, Rwanda is the only country on the African continent that has appeared in the top ten, where it is ranked eighth.
The report indicates that New Zealand is the easiest place to start a small and medium-sized enterprise in the world, which is one of the ten indicators used by the WB to assess the business environment in countries.
This is the second consecutive year that New Zealand has come first for that particular indicator in the ranking. After registering a company name online, entrepreneurs can apply for tax-related accounts and incorporate the company at the same time.
The rankings look at 185 economies around the world. The top ten list includes New Zealand, Australia, Canada, Singapore, Macedonia, Hong Kong, Georgia, Rwanda, Belarus and Ireland.
In assessing how easy it is to start a limited liability company, the report looks at how many steps are officially required or commonly done by entrepreneurs, as well as how many days it takes to go through those procedures. The report also looks at cost and the minimum capital required, with zero percent of income per capita being best.
The report shows that in New Zealand, it takes only one step and one day, the ideal number, to incorporate a company. Someone who wants to open a business just has to apply for registration online. According to the report, the process costs 163.55 New Zealand dollars (US$ 129) and does not have a minimum capital requirement.
By contrast, the U.S. ranks 13th, needing six steps in order to start a business with no minimum capital. The report based the U.S. statistics on requirements in New York City, as it used the largest business city of each country it studied.
Rwanda’s case
The report indicates that it is simple to start a business in Rwanda compared to other countries in Africa, as it’s free of charge to register a company in Rwanda if done online and the certificate is issued in one to three days.
Statistics at the Rwanda Development Board (RDB) show that currently, registering a company takes an individual only six hours and a cost of Frw 15,000 for physical registration, while it is free if done online.

2013-10-19T04:39:00.000-07:00

Government assures traders over economic zone

Part of the first phase of the special economic zone. (file photo)

The Ministry of Trade and Industry has assured investors with businesses that slated to relocate from the Gikondo Industrial Park in Kicukiro to the Kigali Special Economic Zone (KSEZ) in Nyandungu, Gasabo that the zone would be ready by the end of this month.
This follows recent remarks by members of the chamber of industries at the Private Sector Federation (PSF) who expressed worries about electricity at the economic zone, saying that this is relocation is a major stumbling block for them.
Contrary to earlier reports that the first phase of the project was 100 percent complete, some infrastructure, including the electrical connection, are not yet in place.
Initially, businesses and factories were scheduled to relocate to the special economic zone by May of this year, but this deadline was extended to August. Still, today, none of the 14 factories have yet relocated. Industrialists say the situation has created uncertainty among sector players and is hurting their business.
One of the industrialists, who preferred not to be named, said: “Telling us that we would relocate early this year to the Special Economic Zone made us stop investing in the businesses at Gikondo Industrial Park, but we are uncertain when the Special Economic Zone will be ready up to now, and this is affecting our businesses and plans if not addressed as soon as possible.”
The director general in charge of industry and SMEs department at Minicom, Alex Ruzibukira, said that in regards to power, the government will set up two sub-stations to supply electricity to the zone before industries relocate.
He said that a high percentage of the work at the economic zone is ready, but they need to first address the issue of power supply. However, he is still optimistic everything will be ready by the end of this month.
“Once power is installed at the zone, all businesses will be given six months to relocate and after this, we shall be looking at the second phase of relocation exercise, where all warehouses and garages will have shifted to the special economic zone by the end of 2015,” Ruzibukira said.
During the first phase, 14 manufacturing plants are expected to relocate, whereas the second phase will see warehouse and garage operators move to the zone.
According to Ruruzibuka, it is expected that the relocation exercise will be completed by end 2016.So far, the completed part of the Special Economic Zone, which covers 98 hectares, has attracted commitments from 54 companies.
The KSEZ is developed through a partnership between Rwanda Development Bank, Rwanda Social Security Board, insurance firm Sonarwa, Prime Holdings, Magerwa and Bond Trading.

2013-10-19T04:37:00.001-07:00

Cup of excellence award winning coffee auctioned for high prices

NAEB Awards the 2013 Cup of Excellence award

This year’s event saw over 100 farmers take part in the competition of which only 15 lots were picked from a possible 159 for the prestigious competition. On Tuesday, the winning coffees were auctioned off to the highest Internet bidder.

Engineer Eric Ruganintwali, the director of quality control, inspection and standards compliance unit at NAEB, told the Rwanda Focus that the auction, held by the Alliance for Coffee Excellence, attracts over 80 companies from across the world, all bidding for the Cup of Excellence coffee.

Every year, Rwanda organizes Cup of Excellence competitions and awards the winners for the best coffees. This competition encourages quality production and attracts bigger markets for Rwandan coffee from across the world, increasing revenue. The winning coffees are chosen by a group of national and international cuppers and are cupped at least five times during the competition process.

This year, they were 14 national cuppers and 24 international cuppers from 12 countries, as highlighted by Sherry Johns of Alliance for Coffee Excellence at the same time the head judge for the completion.

The competition for the best coffee started several months ago, with the national cuppers selecting the first bunch of high quality coffees before submitting them to the group of international cuppers for further scrutiny. At the end, only 15 out of 159 lots entered the competition and won prizes during the award ceremony in Huye district.

The overall winner was Gishugi Caferwa coffee washing station from Shangi sector of Nyamasheke district in Western province. Shangi received a score of 91.09 percent and was awarded a prestigious presidential award. Other coffee stations that scored well include NMC Mibilizi and Gisuma coffee from Rusizi, Rwashosco Muganza coffee and Rwashosco Maraba coffee from Huye district. Six lots out of 15 that entered the competition were from Huye district.

The winner of the first prize said the award gives him the courage and determination to continue ensuring the best quality of coffee. He further said that he got this award because he listened and followed agronomic practices and advice from experts.

Speaking at the ceremony, the Acting Director General of NAEB, Mr. Ntakirutimana Corneille, said that the Cup of Excellence requires strict observation and rules along the whole process, right from the sample handling to the final exercise of cupping. He also said that awarding the farmers is a way of recognizing the farmers for their great work in upholding the quality of Rwandan coffee.

The most important benefit for the best coffee is the increase of revenue. The best coffees are sold to the highest bidder in the Internet auction and the largest percentage of sales goes to the farmer, as a way of motivation as well as improving their welfare.

The Cup of Excellence was sponsored by several different companies including; BRD, Bourboun Coffee, SNV, and CEPAR.

Gishugi CAFERWA – CWS – Shangi was the winning farm with the highest bid at $20.8 USD per pound (or 0.45 kilograms) with a total value of $32,219. N.C.M.C Mibirizi-CWS farm came second, who’s coffee sold for $15.55 per pound for a total value of $28,954. Initial bidding for each pound of coffee started at $4, which is the international standard.

“The money from the auction goes back to the farmers in a way to encourage more quality coffee from them,” Ruganintwali said.

“Events like these help to improve the standard of living of farmers and shows us that the government cares for us,” Noted Damian Nkurunziza, a farmer whose coffee was up for auction.

Despite price fluctuations of coffee on the world market, the Cup of Excellence coffee continued to grow, as it saw entrants both by local farmers and international bidders grow this year.

2013-10-19T04:35:00.003-07:00

Tourism’s transformative power

Recently, a new plan was launched to further develop tourism activities in the Kivu Belt. (file photo)

In recent years, Rwanda has worked very hard to increase tourism, with the Rwanda Development Board and others ambitiously promoting the country’s cultural as well as natural attractions across the world in order to attract more visitors and increase tourism revenue. If anyone ever doubted the economic importance of the tourism sector, the World Bank has just released a new study to dispel any reservations.
The study, “Tourism in Africa: harnessing tourism for growth and improved livelihoods” underscores the transformative potential that tourism—the fastest growing industry in the world—can have on African countries, transforming them from developing into developed nations. For Rwanda, the thousands of new jobs and influx of millions of dollars in private investment brought by a vibrant tourism sector are critical to the government’s vision of achieving status as a middle income country.
The study’s claims are not just speculative. Thailand’s tourism sector was non-existent in the 1960s. Today, it accounts for nearly 20 percent of jobs. Similar transformations took place in Mexico, Cape Verde, Mozambique, and many other countries, over even shorter spans of time. Today, tourism directly contributes 7.6 percent of Rwanda’s GDP, and since 2011 has been the country’s largest foreign exchange contributor, earning $281.8 million last year. Despite these large earnings, RDB plans to increase annual sector growth by 25 percent, generating $860 million by 2017.
But cultivating such a successful tourism sector is easier said than done. Dozens of factors and challenges contribute to the industry’s success, and competition from countries around the world is only getting tougher.
The report lists focus areas key to attracting international tourists. When faced with a myriad of tempting holiday locations, most vacationers look for the same things: affordable and convenient airfare, safety, natural beauty, cultural appeal, adequate domestic infrastructure, and a working healthcare system. In order to develop such aspects, a country needs political stability, a cohesive government strategy, a trained labor force, and a positive business environment.
Sustainable tourism
Rwanda is already doing a lot of things right, and is even looked to as a model of sustainable tourism. Too often in tourism development, local communities are brushed aside to make way for resorts, hotels, and attractions, never seeing the proceeds from such activities. Not only is this unethical, it creates hostility between locals and visitors leading to an unsustainable situation that misses the purpose of tourism: community development.
Rica Rwigamba, head of Tourism and Conservation at RDB, said that, in order to balance cultural and environmental preservation with increased development, Rwanda uses “cohesive and integrated planning that involves all government institutions, the private sector and civil society.”
A perfect example of such a balance, as outlined in the study, is Sabyinyo Silverback Lodge in Volcanoes National Park. The luxury lodge operates on a revenue-sharing scheme, with local members from the four surrounding districts representing their community’s needs, and with a significant portion of proceeds being funneled back into the local districts through conservation projects and micro financing. The lodge also guarantees local employment. This setup creates a symbiotic relationship in which it is in the community’s best interest to support the tourism sector, and it is in the lodge’s best interest to respect the environment and the local people.
The government, too, is playing its role, as it has adopted a policy under which 5% of tourism revenue is set aside to be invested in local communities, especially those living in the vicinity of the national parks.
‘Only the gorillas are known’
Despite these positives, there is still a long road ahead. Domestic infrastructure, roads and hotels, are lacking in many areas. Rwigamba explained the improvements in air travel over the recent years, with the entry into the market of several international carriers, but noted the need for more.
“This has greatly helped in addressing what was the greatest challenge in the sector. Nevertheless, we still need to have more options that would allow a direct flight from the USA which is our biggest market as well as from upcoming markets like China as well as others. This remains among the biggest challenge on the continent,” she said.
Ian Munyankindi, the Manager of Rusizi tented lodge in Akagera National Park, has been working in the tourism industry for over five years. In his view, Rwanda should strive to promote more than just the mountain gorillas.
“Rwanda has done a good job of attracting people to the county, but most people come only for the gorillas and do not stay long. I see many tourists who say they wish they had planned a longer trip because there are many things here they did not know about and want to see. They just stop in Rwanda for a few days on the way to Kenya or Tanzania.”
The country’s goals for tourism are ambitious, but they are well underway. And as shown the World Bank’s extensive report, rapid and extensive development is not impossible; in fact, countries all over the world have done so.
Recently, famous American blogger David Hoffman promoted Rwanda’s tourism industry, giving the country important exposure through social media. Additionally, the government’s plans to develop the districts surrounding Kivu Lake, if done correctly, will help set Rwanda on a transformative path.

2013-10-19T04:31:00.003-07:00

‘Poor customer services costs us $40m’ – Akamanzi

The level of customer satisfaction currently stands at 71%. (file photo)

Private institutions have been urged by the government to improve on the level of customer service week. The remarks were made by the mayor of the city of Kigali Fidel Ndayisaba during a networking workshop with clients of the Kigali construction and urban planning center, which was one of many events organized by the Rwanda development Board (RBD) to mark the international customer service week.

It was the first time Rwanda joined the rest of the world to mark the week, celebrated globally in the first week of October every year since 1984 with the purpose to reward and recognize people who deliver good customer service.
Clare AKamanzi, the chief operations officer (COO) of RDB, noted that customer care is a priority for the country in the context of EDPRS-2. “Rwanda can get an additional $40 million every year from service delivery, which is more than half it gets from exporting tea and coffee.”
Online transactions in the form of e-business have been recognized as a major indicator in boosting the customer service in the country.

The week-long event held under the theme ‘Think Service’ was devoted to recognizing the importance of customer service and honoring people who serve and support customers with the highest degree of care and professionalism.
“Since it is Rwanda’s first time to celebrate with the world, our focus is to encourage service providers to offer exceptional service,” Akamanzi noted.
Yves Ngenzi, head of the Customer Care Unit at RDB, pointed out that five major pillars of customer service have been identified: communication, problem solving, timeliness, professionalism and ease of doing business.
The level of customer satisfaction in Rwanda currently stands at 71%, based on a research carried out from May to June 2013 within various public and private institutions. This is an improvement compared to the 60% level of 2010, yet the target is to reach 80% by 2017.

2013-10-19T04:16:00.001-07:00

Uchumi 3rd Kenyan firm to cross-list on Rwanda exchange

Share Bookmark Rating

Rwanda’s Permanent Secretary in the Ministry of Local Government Vincent Munyeshyaka rings the bell to mark the beginning of trading in Uchumi Shares at the Rwanda Stock Exchange (RSE) witnessed by RSE chairman Dr. James Ndahiro (centre) and Uchumi CEO Jonathan Ciano (right).

Posted Tuesday, October 15 2013 at 11:37

SHARE THIS STORY

Uchumi Supermarkets became the third Kenyan company to cross-list on the Rwanda Stock Exchange (RSE) moving 3,600 shares on its first day of cross-listing.

Rina Hicks, head operations at Faida Investment Bank, which has an office in Kigali, said that investors traded Uchumi share in lots of 1,000, 2,000 and 600 at Rfw175 (about Sh22.29) Monday’s trading.

On the Nairobi Securities Exchange 86,600 Uchumi share was traded at an average price of Sh21 each.

“Uchumi Supermarkets share began trading on the Rwanda Stock Exchange (RSE) after the retail chain received an approval from the Rwandan authorities to cross list its 265,426,614 shares,” said the RSE in a statement.

Nation Media Group (NMG) and KCB Group are also cross-listed on the RSE.

Nation Media Group, KCB Group, East African Breweries Limited, Kenya Airways and Jubilee Holdings, which are primarily listed on the NSE, are also cross-listed on the Uganda Securities Exchange (USE) and Dar es Salaam Securities Eexchange (DSE).

Centum Investments is also cross-listed at the USE while Umeme, whose primary listing is on the Kampala bourse, is cross-listed at the NSE.

Uchumi is gearing up for a Sh1.5 billion rights issue, and has also applied to cross-list its shares on the DSE and USE where it already has subsidiaries. Cross-listing on all exchanges is meant to increase the pool of potential investors for the planned rights issue.

“As our drive towards regional growth gains momentum, so has our desire to make Uchumi share accessible to more stakeholders across the region,” said Uchumi chief executive Jonathan Ciano in a statement.

The retail chain is raising cash to finance expansion, which will also include opening a branch in Rwanda.

“It is, therefore, timely and ideal that as we plan to set Uchumi branches in this market that we also empower investors here to stake a claim to the ownership of Uchumi, and all our East African Citizens should pride themselves for owing a piece of the supermarkets”, said Mr Ciano.

The supermarket chain plans to sell 100 million shares to shareholders through a rights issue.

In May, Uchumi Supermarkets appointed Faida Investment Bank as the transaction adviser and sponsoring broker, Equity as the receiving bank, Hamilton Harrison & Mathews Advocates as the legal adviser and Ernst &Young as the reporting accountants.

The supermarkets chain’s profit after tax for the full year ended June 2013 jumped 30.31 per cent to Sh357.01 million compared to Sh273.97 million as at June 2012 despite a rise in costs, partly attributed to branch expansion.

The growth, which saw the supermarket’s chain open new branches in Ongata Rongai in Nairobi, Natete in Kampala and at the Eldoret Sugar Plaza resulted in an increase of customer numbers by 10 per cent to 24 million from 22 million.

2013-10-19T04:09:00.001-07:00

Rwanda’s inflation rate trends up, Uganda now projects 5pc

A fresh food market in Kigali. Rwanda’s has become the third country in East Africa to report an increase in its inflation rate for a period of two consecutive months or more. Photo/File Nation Media Group

By Hellen Githaiga, The EastAfrican

Posted Friday, October 18 2013 at 15:53

In Summary

Rwanda’s has become the third country in East Africa to report an increase in its inflation rate for a period of two consecutive months or more.
In September, Kenya’s inflation rate jumped for the fourth consecutive month to 8.29 per cent from 6.67 per cent in August, 6.02 per cent in July, 4.91 per cent in June and 4.05 per cent in May.
Uganda’s rose to 8 per cent in September from 7.3 per cent in August, 5.1 per cent in July and 3.6 per cent in June but Bank of Uganda projects 5 per cent by the first half of 2015.

Rwanda has become the third country in East Africa to report an increase in its inflation rate for a period of two consecutive months or more.

The regions smallest country this week said that prices of basic goods and services rose by 5.1 per cent in September, a faster pace than the 4.04 per cent registered in August and 3.52 per cent in July.

In July Rwanda’s inflation rate had slowed from 3.68 per cent reported in June.

“For the second time, the rise in inflation is mainly explained by the increase in vegetable prices which shot to 15.6 per cent from 9.6 per cent in August,” said Rwanda’s Ministry of finance and economic planning.

Higher inflation rates over an extended period of time indicate that prices of basics may be rising faster than incomes and this piles pressure on households reducing disposable incomes.

READ: EA countries revise economic growth projections upwards

As a result, households will spend more, save or invest less and this can have a negative impact on the long term growth of an economy.

In September, Kenya’s inflation rate jumped for the fourth consecutive month to 8.29 per cent from 6.67 per cent in August, 6.02 per cent in July, 4.91 per cent in June and 4.05 per cent in May.

Uganda’s rose to 8 per cent in September from 7.3 per cent in August, 5.1 per cent in July and 3.6 per cent in June.

Bank of Uganda (BoU), in its monetary policy report highlights for October that was released this week said that it the inflation rate has been trending up as a result of the effect of drought that has resulted in decreased food production which has seen prices rise.

READ: Tanzania’s inflation falls to one-year low, Rwanda’s edges up

The banking regulator said that it the increase in food prices is temporary and should start to abate by the end of 2013 or the beginning of 2014.

“Once the effect of the drought on food prices dissipates, inflation is expected to stabilize at the Bank of Uganda’s medium-term target of 5 per cent,” said BoU in the highlights for October.

Core inflation - which does not track food and fuel prices and which stood at 6.9 per cent in September - is forecast to rise to around 8 per cent, then to decline to 7 per cent in 12 months’ time, before falling further to 5 per cent by the first half of 2015.

“Nonetheless there are upward risks to the inflation forecast, such as stronger than anticipated domestic demand growth in the current fiscal year and a weaker balance of payments,” said BoU.

2013-10-19T03:53:00.000-07:00

Miners to cede 10% stake to govt

Nairobi – Kenya has ordered mining firms to cede a 10 per cent stake in their mines to the government for free, or pack and go. Cabinet secretary Najib Balala gave the tough message to the mining industry on Thursday.

This followed an industry wide uproar over a new mining Bill that has proposed to drastically increase royalties paid by mining companies. The Bill also seeks to give the government a 10 per cent stake in big mining companies without paying a fee. This will be held by the yet-to-be formed National Mining Corporation.

Miners have opposed the new charges, arguing they will push away investors from the country’s nascent industry that is yet to reap any benefits from its mineral.

But a furious Balala told the miners off, arguing that government’s intention is to see that Kenyans gain from the minerals as much as possible, while the companies make their profits.

“I would rather see those minerals remain underground than to benefit companies only while people remain poor,” Balala told miners while opening a mining conference in Nairobi.

The government has proposed that royalties on gold would increase to 5 per cent of gross sales value from 2.5-3 per cent, while those for rare earth, niobium and titanium ores would rise to 10 per cent of gross sales value up from 2.5-3 per cent.

“If you think those royalties are very high...it’s bad luck,” Balala said, arguing that the new rates are benchmarked against other African countries.

“We have realised that we are losing out,” the minister said, adding that Uganda and Botswana have a 10 per cent free-earned interest at mining companies.

The Kenya Chamber of Mines and a section of miners said this week before the conference the new rates would put off international investors, arguing they are out of touch with international best practice.

The miners were, however, unwilling to engage the minister during the conference bringing out the fragile nature of the relationship between them and the government.

Balala hinted the door for any review of the Bill are closed, adding that it is likely to be passed by the Cabinet next week on Thursday before being presented to Parliament for debate.

But even as Balala stuck his guns, a Tanzanian deputy minister for mines Julius Masele cautioned Kenya to be careful in its dealing with the international mining companies so as not to send the wrong signal. Tanzania has a much developed mining industry than Kenya.

“Understanding the sector will help Kenya to be considerate when making certain decision...the investors are very important for Kenya,” said Masele calling for soberness while trying to strike a balance between investors’ needs and that of the communities.

2013-10-19T03:48:00.002-07:00

Africa mobile phone access at 84% – report

Access to mobile phones has greatly increased. Net photo

Nairobi – Seven out of 10 Africans operate their own mobile phones, with Burkina Faso and Zimbabwe seeing the biggest growth in access, an Afrobarometer survey across 34 countries has revealed.

The Partnership of Free Speech and Good Governance in Africa report released at the Institute of Development Studies at the University of Nairobi this week, based on face-to-face interviews with more than 51,000 people.

According to the report, 84 per cent of Africans use cell phones at least occasionally, a higher level of access than reported previously by the UN. Internet use, however, is less common, with only 18 per cent using it at least monthly.

“Countries experiencing the largest gains in access from 2008 levels were Burkina Faso, which saw an increase from 46 per cent in 2008 to 90 per cent in 2013, and Zimbabwe, where access increased 40 percentage points, from 51 per cent to 91 per cent, in the same period,” the report said.

Fourteen countries report access rates above 90 per cent, with Algeria and Senegal on 98 per cent, followed by South Africa, Ivory Coast and Kenya on 93 per cent, while in contrast Madagascar (44 per cent) and Burundi (49 per cent) both fall below 50 per cent access.

The report also revealed that a significant number of mobile users across the surveyed countries use their phones to send or receive text messages, send or receive money or pay bills.

Kenya’s status as a global leader in innovative uses of mobile phones to transfer funds and make payments was also confirmed by the report, with 71 per cent of respondents using their phones to move money, surpassing Tanzania on 40 per cent, Liberia on 39 per cent, and Sudan on 38 per cent.

Access to the Internet is growing much more slowly. In the 20 countries, where this question has been asked since 2008, at least monthly access has risen by only four percentage points, from 11 per cent to 15 per cent.