Category Archives: Rwanda Investment

Rwanda ‘committed to ICT for development’

Rwanda ‘committed to ICTs for development’

Rwandan President Paul Kagame says his government sees broadband as a means to address its development challenges. He was addressing a session at the World Economic Forum in Davos, on the question: “why broadband should be prioritized in the post 2015 Sustainable Development Goals.”

The Rwandan government reports that President Kagame outlinedd Rwanda’s commitment to the use of ICT for transformation: “People used to think that broadband is meant for a few people and cannot be accessed by the majority. We have found that with the right investments, we can make it accessible and affordable. People are now able to use ICT for health, education and to access markets for their agricultural products. The results speak for themselves in every part of Africa.”

As co-chair of the Broadband Commission, President Kagame also thanked the broadband commissioners for their dedication to increasing broadband accessibility.

ITU Secretary General, Ahmadou Toure explained the goals of the Broadband Commission as essential to sustainable development. “Our goal is to put broadband at the centre of every national agenda. We want to use broadband to achieve millenium development goals and address global challenges including youth unemployment, climate change, and environmental sustainability. We are part of the solution and not part of the problem.”

Reminding those present that ICT must be part of a wider context that includes good governance, President Kagame emphasized the role of ICT in ensuring that citizens have access to information: “My hope is built on one thing. Giving the majority of our people ICT tools means they will be able to face their challenges.”

President Kagame added that broadband is an opportunity to share knowledge in a mutually beneficial manner:“It is important to understand that there is no part of the world that has monopoly of knowledge or best practices. That is the beauty of the globalized society we live in.”

Rwanda’s Stock Exchange Market Is Promising

THE RWANDA Stock Exchange’s (RSE) central depository was recently inter-linked with other regional stock markets’ depositories; a move many sector players say will boost activity at the local stock market. In fact the switch was long overdue considering that three out of the five companies trading on the local stock market are cross-listed.

The development therefore gives them more opportunities to transact business compared to the previous situation, when they could spend months without trading a single share. It will now be easy to transfer shares across the Rwanda, Kenya, Uganda and Tanzania stock exchange markets. According to RSE officials, transactions involving regional firms will now take less than two hours compared to over three months previously. Things can only get better.

However, this development should not be seen as the magic bullet that will solve the challenge of low volumes at the local market, or why companies are reluctant to list on it. The RSE issues need new approaches and innovation so that more investors, especially Rwandans, can get involved and invest in shares of different companies listed on the stock market.

Remember, the majority of would-be investors do not understand how the stock market operates. This, therefore, calls for massive sensitisation drives to educate the public, especially business people, the benefits of investing in shares. Last year, when the Capital Markets Authority officials were appearing before Parliament they said they would start massive sensitisation campaigns, but nothing seems to be taking place.

Also, CMA had said they were working with local authorities to start issuing Municipal Bonds by end of last year; the public is still waiting. If this initiative kicks off, it would do a lot in creating awareness as more people get involved.

Czech Republic Investors Eye Rwanda

A group of investors from the Czech Republic are set to invest in a range of businesses in the country.

The 30-member delegation led by Jan Kohout, the Czech Minister of Foreign Affairs, was in the country last week as they explored potential areas of investment in the country.

During their visit, the group visited Rwanda Development Board (RDB) where they were assured of an enabling business environment in Rwanda.

The group, which also had a business meeting last Tuesday with several government officials and the Rwanda business community, is interested in investing in the a variety of areas, including: agriculture, services, manufacturing, energy, import and export promotion, and aviation.

“We have chosen Rwanda, South Sudan, Uganda and Ghana as our economic missions in Africa and I am optimistic that our business community will find various investment opportunities in these countries,” said Kohout in the meeting.

He added that the objective of coming to explore potential areas of investment in the country is due to the fact that Rwanda offers potential business opportunities since the country has continued to perform well in World Bank ‘Doing Business’ reports.

Borivoj Minar, a member of the Czech Chamber of Commerce, said that although it was their first time in Rwanda, they have developed a strong feeling of establishing businesses in Rwanda after holding meetings with government officials about various business opportunities.

“We are looking forward to partner with Rwanda towards promoting trade, innovation and entrepreneurship between the two countries,” Minar said.

RDB Chief Operations Officer (COO), Claire Akamanzi, said that Czech investors are looking to African markets where growth is high, and Rwanda was chosen as one of their destinations.

“Many countries are choosing our country as a potential area of investment and this shows that Rwanda is one of the fastest growing economies on the continent. We are happy about that and ready to offer them a conducive environment that will enable them to efficiently and effectively do their respective businesses in Rwanda,” Akamanzi said.

She said that RDB will continue working together with the Czech chamber of commerce in order allow many investors from the Czech Republic to come and invest in Rwanda.

“Although we haven’t done much with Czech Republic in terms of investments, the coming of such investors shows the beginning of their business journey with Rwanda,” Akamanzi said.

The group also toured Kigali Special Economic Zone (KSEZ) which the government put aside as place for industrial zone for the national and foreign investors.

Statistics indicate that RDB registered investments worth $1.2 billion (about Frw 800 billion) between January and June this year.

The investments represent 58 domestic projects, worth $ 509.1 million, 22 foreign projects, worth $406.9m, and nine joint ventures worth $338.1 million.

While talking to the visiting delegation, the Minister of Trade and Industry, Francois Kanimba said: “Our economy has responded considerably well to business reforms, we have grown at an average rate of about 8 per cent over the last decade and we welcome you to Rwanda to explore areas of your business interests,”

According to 2013 Baseline Profitability Index by the Foreign Policy Magazine, Rwanda was ranked fifth-best destination for investment in the world out of 102 countries surveyed. The global study indicated that high returns of investment are accessible and to a great degree, retrievable to investors in Rwanda.

The 2013World Bank Doing Business Report also ranked Rwanda the third easiest place to do business in Sub-Saharan Africa, after Mauritius and South Africa.

Rwanda, Kenya, Uganda to Build Super-Highway

Kenya, Uganda and Rwanda are considering building a superhighway from Mombasa to Kigali, parallel to the planned railway.

According to regional trade lobby organization Trademark East Africa, which will be facilitating the project, it is expected to have a six-lane road, with construction beginning in 2016.

Inspired by the N1 highway that runs from Cape Town in South Africa to Harare in Zimbabwe, the proposed road is intended to ease the movement of cargo, thereby reducing the cost of doing business and increasing intra-regional trade.

Expenditure on transport in the EAC countries accounts for 45% of the total cost of goods. This is 30% higher than in Southern Africa, making commodities produced in the region uncompetitive.

John Byabagambi, Uganda’s Junior Minister for Works who is chairing the Standard Gauge Railway Committee, said that Trademark was doing feasibility studies for a dual carriage highway that forms part of plans to expand the Northern Corridor, as the current single carriage system is too narrow and fraught with inefficiencies.

Allen Asiimwe of Trademark East Africa said the superhighway would have no weighbridges or roadblocks.

This means that once the goods are loaded onto a truck at the Port of Mombasa, there will be no stops until the final destination. Weighbridges and roadblocks are among major hindrances to trade in the region.

As the cost of doing business in the region drops, intra-EAC trade, which currently stands at over $3.8 million, or just 13% of the total trade volumes in the region, is expected to increase.

Asiimwe added that the road, the ability of the revenue authorities of Rwanda, Uganda and Kenya to acquire the latest software known as Automated Systems for Customs Data (Asycuda), plus a $50 million investment in the port of Mombasa, will ensure that cargo moves fast and that it is constantly monitored.

“Investment in a regional asset like the Mombasa port will reduce the time for clearing goods from 18 to five days,” she said.

The software enables Customs officials from the three countries to use the electronic tracking system to monitor the trucks.

The software will also boost the EAC Customs Union since revenue authorities will be able to assess and collect taxes at the first point of entry. This means that once a trader has paid his taxes for goods bound for Uganda, there will be no need to pay a refundable bond to Kenya. This has been the practice, due to the fear that goods could be dumped in Kenya.

As the cost of doing business in the region drops, intra-EAC trade, which currently stands at over $3.8 million, or just 13% of the total trade volumes in the region, is expected to increase.

Experts warn that intra-EAC trade is well below the standards of any functional common market.

“Intra-regional trade should account for at least 25% of the total trade volumes in any functional common market,” said Rashid Kibowa, Commissioner for Economic Affairs in Uganda’s Ministry of East African Community Affairs.

In the European Union, intra-regional trade accounts for 55% of total trade while it stands at 40% in the US.

Rwanda scores another first in region with 4G rollout

Rwanda will soon be among the few African countries to link every corner of the country when it rolls out the first ever 4G LTE broadband network in the region.

The new technology is expected to offer high-speed Internet and make Rwanda the East African Community leader in information and communications technology.

LTE (Long Term Evolution) is a wireless broadband technology designed to support roaming Internet access via cellphones and handheld devices.

The $140 million project, to be rolled out over the next three years by the government in partnership with KT Corporation, South Korea’s biggest telecommunications provider, will see the whole country linked to a fiber optic cable.

Its launch coincides with Transform Africa, a continental ICT and innovation summit that takes place in Kigali from October 28 to 31.

Seven African presidents and more than 1,500 delegates from all over the world are expected at the summit to discuss how Africa can overcome its connectivity and ICT challenges.

The presidents who are expected to attend include Rwanda’s Paul Kagame, Uhuru Kenyatta of Kenya and Yoweri Museveni of Uganda — who will also be in Kigali for their countries’ Infrastructure Summit on October 28.

According to Rwanda’s Minister for ICT Jean Philbert Nsengimana, the country is today ranked among the “most connected” countries in Africa.

The 4G LTE network will be the final phase to deliver the “last mile” of connectivity after putting in place all the other infrastructures needed, including linking the whole country to the fiber optic backbone. The project will connect 95 per cent of Rwandans.

“Six years ago, African leaders met in Kigali for the connect Africa summit to find means of addressing the digital divide the continent was facing. At the time, only five per cent of the population had mobiles but today 65 per cent of Rwandans own mobile phones,” Mr Nsengimana said.

Connecting all citizens

“Today, when we meet in Kigali for Transform Africa, the question will not be how Africa will be connected but rather how this infrastructure can reach the final person,” he added.

Africa’s biggest challenge remains linking population to available ICT infrastructures as well as the high cost of making phone calls.

Rwanda and other EAC member states are among the countries where making a single phone call is more expensive than in any other part of the world.

The issue of affordability of telecoms and data will be one of the key issues to discussed at the Kigali summit this week.

Butaro Cancer Centre opens new wing

photo

Health Minister Agnes Binagwaho is joined by Dr Paul Farmer, one of the founding directors of Partners in Health (2R) and Bill and Joyce Cummings (Friends of Rwanda), as well as Burera Mayor Samuel Sembagare (L) to commission the Butaro Ambulatory Cancer Centre on Tuesday. The New Times/Irene Nayebare

Butaro Cancer Centre has opened a new wing to address the increasing demand for medical services at the facility.

The new facility, a brainchild of joint efforts between government and Partners in Health, among other stakeholders, has been named the Butaro Ambulatory Cancer Centre (BACC).

BACC has been constructed to supplement the centre that has taken on more than 1,000 new patients on its oncology programme during its one-year existence.

Addressing officials who graced the opening of the centre, Dr Paul Farmer, a co-founder of Partners in Health, said the only way to reduce cancer deaths is to integrate prevention, diagnosis and treatment.

The Butaro District-based centre is the first to be established in a rural area across East Africa, and according to officials, some of the patients who have been treated there are from other EAC countries.

“Eighty-four per cent of cancer falls more heavily on the poor, especially in low and middle income countries,” Dr Farmer said, defending the decision to set up the facility upcountry.

The Minister for Health, Dr Agnes Binagwaho, said Rwanda has a plan of having a medical campus at Butaro.

“We avail services to our people and that’s what we are supposed to do but the people also have a task: to use the services given to them; for cancer screening, it’s free of charge,” Dr Binagwaho said.

Saved by cancer centre

Delphine Musabeyezu, a 39-year-old cancer survivor from Rusizi District, said she is grateful to be alive and for having completed her chemotherapy treatment.

“I am grateful to have received my treatment at Butaro Cancer Centre. I encourage other women to opt for early detection as it is the best way treatment can have desired outcome,” Musabeyezu said.

The new centre will have outpatient clinic for oncology consultations for new and existing patients, modern chemotherapy mixing facility for both inpatient oncology unit and outpatient, patient support groups and outpatient IV chemotherapy, among other services.

The cancer ward, a 24-bed facility, regularly has more than 100 per cent bed occupancy.

Observers say the establishment of BACC comes in handy to help ease pressure on the facility.

BACC will decongest the cancer ward and restrict hospitalisation to those patients who require complex or more than one day IV chemotherapy infusions or those who are severely ill.

Rwanda to benefit with a state of the art sports Academy

StarAfrica

Copyright : StarAfrica

 

A Turkish construction firm-Babil Group of Companies, is set to start a football academy in Rwanda.

The Academy is meant to  help nurture a generation of talented players. According to Mustafa Cem, who is  the company’s head of international development, he wants to  nurture a young and exciting generation of football stars, who have the right exposure to the soccer world . “Because of my love and passion for the game,he added, I have decided to set up an academy because I don’t want  to see the  youth being idle. By setting such an Academy, would make a huge impact as far as development of Rwandan football is concerned.”

He said his main desire  is  to see Rwandan players among top cream on the African continent adding that he believes Rwanda is capable of producing top-level footballers.

He added that their target is to play a part in the development of Rwandan football and sports in general.

Recently, Babil Group of Companies and Rwanda Football Federation reached an agreement to sponsor the inaugural Super Cup.

The inaugural Super Cup match will pit Primus league champions Rayon Sports and Peace Cup winners AS Kigali on September 1 at Amahoro national stadium in Kigali.

Rwanda’s Eurobond Oversubscribed

Rwanda’s debut US$400Million Eurobond has been over subscribed, a lead banker has revealed saying, “its well over subscribed as you can imagine”.

An investor source told media that the order book was $3 billion, or 7.5 times the issue size.

The 10-year dollar bond was issued on Thursday with a 6.875% yield, a lead banker said. That was at the tighter end of Rwanda’s final guidance of 6.875-7 %.

Investors were attracted by Rwanda’s strongly growing economy, low debt and recent political stability.

President Paul Kagame has been commended for presiding over Rwanda’s recovery after the 1994 genocide against the tutsi that claimed over a million lives.

Economic growth averaged 8.2% from 2006 to 2012 and the International Monetary Fund projects growth of 7.6% this year.

Rwanda’s debt levels are equivalent to 23.3 % of gross domestic product in 2012 and Inflation is in single digits.

S. Korea to Construct ICT Innovation Centre in Kigali

The Korean International Cooperation Agency (KOICA) has signed an agreement with the Ministry of Youth and ICT aimed at enhancing Information and Communication Technology.

Under the agreement, KOICA will construct an ICT innovation centre in Kicukiro , Kigali. The centre will be a major step in the Information Technology front in the entire East African Region, according to officials.

The agreement was signed on Wednesday by Rosemary Mbabazi, the Permanent Secretary in the Ministry of Youth and ICT, and Sang Chul Kim, the resident representative of KOICA.

The centre, which will be constructed late next year over a period of 24 months and will cost $5.6 million, will be under Rwanda Development Board’s IT department.

Speaking at the ceremony Kim said, “This agreement is another significant step for the friendship between Rwanda and South Korea. This is the 50th year of our friendship. So we had to move it a step further by starting this important journey as well as helping Rwanda move further towards its Vision 2020.”

KOICA affirmed to continue its support of the ICT development in the country with a plan to put up other IT centres around the country to help rural youth access information.

“This signed document represents another milestone for ICT in our country,” Mbabazi said.

Upon completion, the centre which is targeting 78 per cent per cent youth will be a major leap for the ICT industry.

“It will also help in job creation and give more exposure for the youth in the country. Not only will it be good for the urban youth which is our main target but also for the rural youth,” Mbabazi asserted.

The ceremony was a culmination of a six months survey by a Basic Design Survey Team (BDST) that consisted of members from KOICA and officials from RDB who took a Kigali-wide research to determine the essential tools and strategies which were necessary for the commencement of construction of the centre.

Rwanda to issue $400 million debut Eurobond : IMF

KIGALI, April 16 (Reuters) – Rwanda will issue a debut $400 million debut Eurobond in the days ahead to raise funds for the retirement of short-term debt and complete strategic investments, the International Monetary Fund (IMF) said on Tuesday.

Investors have lapped up sovereign bonds by African countries in recent years, thanks to fairly attractive yields and robust economic growth prospects at a time European economies struggle to shake off a persistent debt crisis.

Rwanda will be the first country in east Africa to issue a Eurobond. Kenya planned to borrow from the international market but postponed it repeatedly due to worries over the prospects of violence in polls held last month.

Officials in Nairobi say the government will issue the $1 billion bond this year after the election passed peacefully in contrast with last election five years ago that resulted in deadly post-election violence.

Rwanda had initially indicated that it would borrow $350 million.

The country’s ministry of finance confirmed on Twitter that it had mandated BNP Paribas and Citi to arrange the issue, with road shows set to start on April 18.

Fitch Ratings assigned the issue ‘B(EXP)’ rating in line with the country’s ‘B’ Long-term foreign currency Issuer Default rating with a stable outlook.

“Rwanda’s rating is supported by solid economic policies and a track record of structural reforms, macroeconomic stability and low government debt,” the ratings agency said.

“Rwanda will continue to attract significant budget support flows, reflecting its strong track record in poverty reduction and control of corruption.”

The country had a debt to GDP ratio of 23.3 percent last year, Fitch said. The IMF said in a statement it expected the economy to expand 7.5 percent this year, barely changed from its previous forecast of 7.6 percent.