Good news from BNR governor: Financial sector strong, resilient

Good news from BNR governor: Financial sector strong, resilient

  The central bank has said the country’s financial sector is stable, strong and able to support economic growth. Describing the sector as adequately capitalized, the bank in its quarterly review on Tuesday  said the sector posted a positive outlook in the first quarter of 2016, is able  to  finance the  private sector while also remain resilient to any  shocks. “The Banking and non-banking financial institutions’ capital and liquidity levels remain adequate, above the prudential limits, and enough to absorb any shock,” said John Rwangombwa, the governor of Central bank on Tuesday. According to the review, as of March, 2016, the banking sector’s liquidity levels stood at 43.9 percent, 89 percent for Microfinance institutions and353…

KCB allocates Rwf 30 million to income generating projects

KCB MD (centre) and members of the Amizero Centre in Gikondo, Kigali receiving the chairs and tents given to them by KCB. The centre is under the Methodist Church of Rwanda.

Kenya Commercial Bank-KCB Rwanda has allocated Rwf 30 million this year under its initiative of giving back to the community that will support in setting up income generating projects. The move, according to the bank, a subsidiary of Kenya’s KCB Group is expected to help communities to get start up support rather than gifts, a norm most companies use in their corporate social responsibility. “We believe that giving someone a donation is not helping them, because you have to continue giving them, it’s not sustainable,” said Maurice Toroitich, Managing Director of Kenya commercial bank Rwanda on Thursday. Under this  new initiative, Toroitich  says people will be able to have sense of self worth, dignity and…

Foreign Owned Investments in Rwanda Increase by 78%

Workers at C&H Garments Ltd Rwanda

Foreign Direct Investments (FDI) to Rwanda have increase by 78.1 per cent according to the latest Foreign Private Capital Census (FPC) 2015 report released by the central bank. According to the report, investments by foreign investors increased to US$ 458.7 million in 2014 from US$ 257.6 million recorded during 2013. “It is due to high confidence of foreign investors in Rwanda and the country’s attractiveness to  foreign investment,” the report reads in part. Mauritius investments in Rwanda are leading with $ 113.5 million followed by Switzerland $ 106.2 million. The United States of America and Luxembourg come on third and fourth positions with $ 70 million and $ 52.6 million worth of investment respectively. In…

Retailers Accuse Wholesalers of Tax Evasion

Fidele Mupagasi, a retailer in Muhanga district explains how taxes are evaded

A misunderstanding between traders in Muhanga district, southern province may point to dubious ways of tax evasion. Last week, hundreds of retailers in Muhanga district volunteered to Rwanda revenue Authority (RRA)  and revealed information on how traders evade taxes. The traders were in a consultative meeting with Richard Tusabe the Commissioner General of Rwanda Revenue Authority. They said, the wholesale traders bring forged invoices while shipping goods from Dubai and other foreign markets, which affects tax collections back home. “It all starts with wholesalers in Kigali; we purchase goods from them and they give us invoices that do not fit what we have paid,” complained Fidele Mupagasi, a retailer from Muhanga district. “When you try…

Agribusiness Can Transform Africa’s Farming

Exhibitor explains about his products

Agriculture experts suggest that Africa needs to urgently invest in value chain to stimulate its rural farmers to engage in agribusiness. Researchers in Agribusiness gathered at the ongoing Africa Agriculture Science Week at Camp Kigali said farmers need to be financed and trained on enticing agriculture investment. “Access to finance remain limited. But we can come up with innovative financing models, de-risking agribusiness, business modeling that cuts across the value,” said Mary Thiong’o from Africa Agribusiness incubators network. Africa’s population is drastically increasing; with youths (364 million of the population between 15-35 years) are at centre stage, and urgent investment in value chain is needed to help farmers engage into agribusiness. Rwanda is improving its…

MFIs to cut bad loans through new products  

A client withdraws money from a MFI.

After recording an increase of 7.9 percent in its bad loans in 2015 from 7 percent the previous year, the microfinance sector is hoping on new innovative products to heal its loan portfolio. Peter Rwema, the executive secretary of association of microfinance institutions in Rwanda-AMIR says that the issue has been looked into with new strategies put in place to help in product development. “We are providing expertise to our members in developing products that would suit their clientele while we are looking at simplifying the loan agreements,” he told this website. Most of the bad loans in the sector are blamed on low capacity by loan officers as well as loan requirements and terms…

Incompetent Lawyers Sink Rwanda Government Into Losses

Justice Minister Johnston Busingye

The government of Rwanda is losing at least Rwf1 billion every year in court battles due to incompetence of its lawyers. According to the Justice Minister Johnston Busingye, government has won 67% of cases in the past years and only increased by 7%. He said the gap remains big. Government has been paying at least Rwf1 billion annually after losing cases to individuals and private firms. During the 2014/2015 financial year alone, the government was sued 516 times, with 116 cases lost to individuals and firms, leaving government with only 248 cases won. The rest are still pending. Public institutions regularly sued include; Rwanda Natural Resource Authority (RNRA), the Special Guarantee Fund and Rwanda Broadcasting…

Rwanda Increases Cash-for-poor from 9$ to 25$

This family lives in Kamonyi district, southern Rwanda. Its among the poorest the government is targeting with its increased cash program

The Rwandan government announced Thursday it was hiking money it gives to its poorest – a decision the authorities say should eventually drop further the number of the country’s most needy. In new findings from a household income survey it has been revealed that a large number of citizens are still very poor. In 2009, Rwanda launched Vision 2020 Umurenge Program (VUP)- a poverty eradication program. It began by a nationwide assessment of income levels of all households and placing them in categories. However, Dr Alvera Mukabaramba the Minister of State for Community Development and Social Affairs said several households across the country contested the categories they had been placed and wanted a new survey…

Rwanda and US University Sign Deal to Invest in Social Impact

Wharton University MBA students meeting with President Paul Kagame

Rwanda is engaging social impact investors to take part in the country’s development agenda. Rwanda last year signed a deal with a US based Wharton University to facilitate knowledge exchange and encourage policy change in national markets. The academic institution is a global leader in Business and Finance studies. About 30 MBA students today met with President Paul Kagame at Village Urugwiro. The president told students that Rwanda has used its human capital to move from scratch to economic growth despite suffering the 1994 genocide against Tutsi. “22 years ago we saw bad things humans are capable of, today you see the good the same human beings are capable of,” Kagame said during interaction with…

Rwanda successfully issued Rwf 10Billion 15 year fixed coupon Treasury bond

John Rwangombwa, Governor of the Central Bank

The government has through the Central bank successfully issued a 15 year bond worth Rwf 10 billion on Wednesday, announcing its part of its regular issuance to finance infrastructure and development of capital markets. The Central bank says that the bond attracted more retail investors accounting for 48 orders from the 57 applications received by the bank which it says was higher compared to February this year. “This is the longest tenure bond issued ever since the government started issuing treasury bonds and it’s over subscription of 215.5 percent shows good appetite for government bonds,” said John Rwangombwa, Governor of the Central Bank on Thursday. Accordingly, the retail investment represented 14.61 percent of the total…