Inflation goes up in first quarter

Inflation goes up in first quarter

The producer price index (PPI) which measures inflation from the manufacturers’ perspective, increased by 1.39 percent from December 2014 to March 2015, the National Institute of Statistics of Rwanda (NISR) said in a statement. Data indicate that on an annual basis, the main contributors to the PPI during the first quarter 2015 are tea and coffee products as well as malt beverages. Between January and March, coffee and tea products contributed positively to Rwanda’s PPI by 1.05 percent and 0.63 percent respectively. According to the statement, if coffee prices in the international market continued to rise, Rwanda’s PPI would not decline in the short term. The statement noted that sugar products contributed negatively to the…

Districts urged to seek financial alternatives

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There is a need for Districts to look at alternative financing In order for Districts to deliver for the second Economic Development and Poverty Reduction Strategy (EDPRS2) which focus at   moving the economy to middle income. Amb. Claver Gatete, Minister of finance and economic planning says that districts are undertaking ambitious   development   projects which need more financing than central Government   budgetary   disbursements or few revenue sources. “You (districts) need to devise alternative revenue sources if you are to deliver,” said Gatete Most development projects districts such as   construction of roads, rural electrification,and agriculture mechanization are bigger and need   more sources of funding for their execution. Apart from budgetary disbursements, districts rely on collections from property,…

Foreign aid dependence could affect economic growth

Foreign aid dependence could affect economic growth

Emerging uncertainties in the global economy are gradually taking a toll on Rwanda, with the latest growth outlook being pegged at 6.5 percent for 2015 and 2016, down from 7 percent last year. This is a result of its heavy dependence on aid, which fluctuates in times of uncertainties, and tax receipts, which stood at 9.8 billion francs ($14.2 million) in 2014. This is short of the 416.1 ($604 million) billion forecast. “The donor aid is unpredictable and it’s very small. It’s shrinking every day,” said Claver Gatete,the minister for finance and economic planning. Foreign aid accounts for almost 20 percent of the Rwandan budget with, foreign loans also constituting 13 percent, meaning 33 percent…

BDF to open 13 offices more offices countrywide

BDF to open 13 offices more offices countrywide

The Business Development Fund (BDF) is planning to open all its Business Development Centers (BDCs) before the end of this month (April), its CEO Innocent Bulindi said. 17 BDCs are already operational, while the refurbishment of 13 others is in the final stages. “BDCs play a significant role in offering a lot of business advice to small business operators and working with the local authorities towards the promotion of business development and entrepreneurship,” Bulindi said. The BDCs will also act as branches of BDF, which has so far been working with business development advisers and entrepreneurship development advisers in the districts, mainly to help entrepreneurs to acquire loans. Bulindi explained that small business operators who…

Credit to private sector now at over 19% growth

Credit to private sector now at over 19% growth

Central bank announced that credit to   private sector increased by 19.2 percent in February 2015 compared to 13.1 percent in the same period in 2014. The growth according to experts   paints a healthy outlook for the economy that grew by 7 percent by end of December 2014 after a slow down recorded in the same period in 2013. The Bank’s statistics indicate that   new   authorized loans grew by 3.3 percent in February 2015, providing the   financial sector stance   to continue performing positively to   finance   the   economy. The increase   in credit to private sector is   attributed to  the   positive  growth of  both the  banking and  microfinance sectors   since December  2014 which registered  better  asset quality  indicators…

MFIs high interest rates scaring away borrowers

  Borrowers say the high interest rates on   loans in the microfinance Institutions-MFIs hinder access to credit, despite the common perception that the sector increases access to finance. Complains are; an interest rate that goes up to 22 percent on a loan is too high considering the type of businesses they   operate which at times take long for the owner to start enjoying profits. “You see when the MFIs add high interest it is hard for us to make profit  to pay  back  the  loan and also keep  surviving,”  said Damascene Nkurikiryayo, a  retail  shop  owner  in  Ndera  sector, Gasabo District. With the banks  requirements   not bale to accommodate  borrowers  for  small  loans, microfinance institutions…

Parliament passes revised National Budget

Parliament passes revised National Budget

The parliament   has approved the revised National budget for the fiscal year 2014/2015 that was tabled by finance Minister, Amb. Claver Gatete   last   month. The  budget  adjustment catered for an increase of  Rwf 6.4 billion pushing the  budget to Rwf 1759.6 billion from Rwf 1753.3  that  initially approved by parliament  in July 2014 to  further boost  implementation of  the outlined  projects under the country’s  second development strategy. “The approved financing adjustments will ensure implementation of the second Economic Development and Poverty Reduction Strategy (EDPRS2) stays on track,” a statement from the Ministry read in part. However, the   approval came with a slight adjustment that saw an increase of Rwf 2.7 billion from the earlier prosed…

Printing of new bank notes to be delayed

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The National Bank of Rwanda (BNR) has to wait longer for the firm, which was awarded currency-printing contract to deliver new banknotes. On August 21 last year, the government opened the bidding process for design and printing of new banknotes to seven European firms. According to the bidding documents from the central bank, the ultimate winners of the contract had to deliver new banknotes by the end of July this year but the delivery is yet to be made.  The reasons for the delayed delivery of the new banknotes to government by the supplier are yet to be known. The BNR is now in advanced stage of printing new notes of Rwf2000 and Rwf5000 notes…

Man arrested for currency counterfeiting

Man arrested for currency counterfeiting

Gasabo district Bamuteze Levis, 36, resident of Kimironko sector in Gasabo District was arrested on Saturday after he was found with fake money amounting to Rwf66, 000 , all in 2, 000 denominations. He is currently being held at Remera Police Station. It all started when Bamuteze paid a phone technician after repairing his handset, but the latter realized that the notes are fake. According to police, investigations are still going on to see if there are other people working with Bamuteze in this illegal act. The Gasabo District Police Commander, Chief Superintendent Tom Murangira, has warned the public against involving themselves in such counterfeit activities and said that it won’t take long before they…

Rwanda | Gatsibo: financial institutions to strengthen their security

Gatsibo financial institutions to strengthen

Members of Savings and Credit Cooperatives (SACCOS) in sectors of Gatsibo district demand that cooperatives be strengthened for reliable security of their money after being aware that their money are not very secure.    This issue was discussed on Thursday the 3rd.Jan.2013 in the mee6ting that was meant to encourage SACCO members in Gatsibo sector to actively work with different financial institutions in 2013. The district administration with the support of security levels assured local people that the security of SACCOs will be highly maintained. The vice mayor for economic development Isaie Habarurema said that the insecurity issue in SACCOs is usually common in SACCOs that work extra hours and this problem is going to be…