Kigali City contributes Rwf 25 million to Agaciro Development Fund

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In an effort to contribute towards Agaciro Development Fund, the city of Kigali employees extended Rwf 25 million through theMinistry ofFinance and Economic Planning (Minecofin). Speaking at the handover this week, the mayor of Kigali city,FideleNdayisaba said that employees   have beenputting aside part of their salary in order tocontribute to the development fund, a noble move to dignify the country. “We are committed to keep on contributing to this sovereign wealth fund every year as part of dignifying our nation and protecting the future generation,” Mayor Ndayisaba said while handing over the cheque. The fund is the country’s first solidarity fund that was started in 2011 by Rwandans as one way of improving the level…

Rwanda inflation rises in June on higher food prices

Rwanda inflation rises in June on higher food prices

The country’s consumer price  index  which is used to gauge inflation increase recorded 2.8  percent increase  year on year  in June, 2015 up from 2.2  percent in May, driven by  increase in prices of  food. The national Institute of statics of Rwanda-NISR indicated that inflation for “Food and non- alcoholic beverages increased by 2.9 percent in June on year on year basis while Housing, water, electricity, gas and other fuels rose by 4.5, transport increased by 1.5, while inflation for Restaurant and Hotels rose by 3.6 percent. “Similar to the previous month, this upward movement in June 2015 followed notably the ongoing increase in year on year “food inflation” and “Housing, water, electricity, gas and…

Financial sector resilient-Rwangombwa

Financial sector resilient-Rwangombwa

The country’s financial sector has gone through a transformation process towards being a more resilient and stable which creates many opportunities for global investors, says John Rwangombwa, the governor of the National Bank Rwanda (BNR). The Central Bank Chief who was speaking at a news conference shortly after BNR quarterly Financial Stability Committee (FSC) and Monetary Policy Committee (MPC) meetings noted that Rwanda’s financial industry remains sound and stable and even shown signs of growth in what have continued to be troubled economic times. “There is a need to continue strengthening the supervisory functions to support the development of financial institutions and ensure diversification of financial products,” he said. Rwangombwa stated that, MPC decided to…

Rwanda’s trade deficit narrows by 6 percent

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The country’s  trade deficit   narrowed  by  6.0 percent  in the first five months of  2015  compared to the same period  2014,an  impressive   outlook   that  kept  the economy  resilient. The contractionfrom  U$ 722.5 6 million in the  first five months  of 2014 to  U$ 679.22 million in the same period  this year, according to central bank is as a result of   a decline in formal imports that fell  by 5.1  percent   in  value  in  the  first  five  months  of 2015. With   this decline, formal exports were   able to cover 25.2 percent of formal imports in the first quarter of 2015 compared to   24.5 percent coverage in the same period 2014, and this is despite a slight…

Rwanda inflation declines

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Rwanda’s gross domestic product (GDP) grew 7.6 percent in first quarter 2015 from a year earlier, helped by expansion in the agriculture, services and industrial sectors, the statistics office has said. In a statement, the National Institute of Statistics (NISR) said, the agriculture sector grew by 4 percent for the first quarter of this year, while the industry sector grew 7 percent and the services sector grew by 8 percent. According to statistics released last week exports increased by 10.22 percent when comparing to the same quarter of 2014 while imports decreased by 1.75 percent over the same period as of last year. The total value of exports is 101.90 million U.S. dollars, imports is…

Assessment to gauge public financial management

Assessment to gauge public financial management

The government   has commissioned   a central and local government public expenditure and financial Accountability (PEFA) assessment that   will   put into perspective the country’s Public Financial Management (PFM) system. The   assessment  will  examine     the  capacity  for   fiscal  discipline  , efficient   resource allocation and   proper  service delivery while  benchmarking  them    on   international  standards. “The Government is committed to putting in place strong accountability systems,” said Claver Gatete, Minister of Finance and Economic Panning The minister believes that this will, “ensure effective implementation of policies and the achievements of intended outcomes by supporting fiscal discipline, strategic allocation of resources and efficient service delivery”. The need for  rapid reforms   that was  highlighted  in the  two  previous  assessments  in 2007…

Rwanda’s 2015/2016 budget to augment growth-IMF

International Monetary Fund-IMF is buoyant that the 2015/20016 budget will continue to   spur   growth needed to leapfrog the country to middle income as Rwanda’s economy continues to register   a positive stance. The international   watchdog says that  priotising  public   investment program   while  looking at  available resources,  domestic revenue  mobilization are  key  areas  among others that    ignite  the country’s economic growth. “Going forward, fiscal policy will need to focus on domestic revenue mobilization to finance the authorities’ ambitious development goals,” said Naoyuki Shinohara, Deputy Managing Director and Acting Chair, IMF Executive board of Directors. Under   its  Second Economic   development   and poverty   reduction strategy-EDPRS II,  of  which the   2015/2016  fiscal year  budget   is  hinged on, the  government   puts …

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…