Friday 12 December 2008

Gisenyi-Bujumbura road to ease trade in northern corridor

BY GEORGE KAGAME

The government is currently sourcing for funds to begin construction works on a new road linking Gisenyi in the western province to Bujumbura in Burundi.

This was revealed by Vincent Gatwa@@@@, Permanent Secretary in the Ministry of the Infrastructure to the press on Monday, “the new road will improve transportation of goods and people connecting to Bujumbura (and Goma), it will also increase access between the two cities for travelers interested different activities like tourism.”
He said construction will begin 2010.

Gatwa@@ added that the road will enhance the fast tracking of Rwanda and Burundi into the East African Community on top of improving the business environment on the Northern Corridor Transport System.

According to sources from the Ministry of Finance and economic planning, the road will cost USD: 618m and funds for its construction will be sourced from the African Development Bank, World Bank, European Union, OPEC, Saudi Fund and others.

The Northern Corridor Transport System has been hailed by many observers as being important to the economic transformation of the Great Lakes Region. The corridor connects Rwanda and Burundi with the coast through Uganda and Kenya, instead of the shorter but very poorly developed connexion through Tanzania.

The corridor also hosts the extremely fertile soils for agriculture spanning the entire western Rwanda, Eastern Congo and South Western Uganda. Gisenyi and its surrounding area is agriculturally productive and nearby Ruhengeri remains the food basket of Rwanda.

Gatwa@@@ said government was set to hold a roundtable meeting with donors on 16-17 this month to discuss the road.
When completed this will be the third highway road connecting Rwanda and Burundi, the first goes through Butare in the Southern Province, the second through Nyamata in the eastern province and is in its completion stages (from the Rwanda side, the Burundi side is yet to start.)

Bosco Ndahimana a food trader in Musanze welcomed the Gisenyi=Bujumbura road saying that he will be able to maximize his Fuso trucks properly as he will be able to sell agricultural produce to Burundi and that competition for the Kigali market will also reduce.

Rwanda has in recent times embarked on a serious campaign in setting up structures to ease the free movement of goods and services in East Africa after the failure to deepen regional economic integration. Last Month, Rwanda hosted President Mwai Kibaki of Kenya who scrapped working permits for Rwandans seeking jobs in Kenya as well increasing working hours of the crucial Mombassa seaport and Gatuna boarder post.

Increasing Inflationary gap leaves city tenants crying foul

BY GEORGE KAGAME


As ever, in the 2008-9 financial year plan, the government has released well designed and eloquent graphs to be presented to the private, public and civil society sector financiers (read donors) seeking for the establishment of a housing scheme for low income earners in the country.

The plan targets increased cheap financing to the housing bank, encouraging the local production of construction materials, providing longer-term mortgage financing and so many other colourful words to have more houses in the city for people with small earning means.
The paradox of housing in Rwanda is so cloudy that while blue collar employees cry foul because of unscrupulous land lords for due to poor quality condos and exorbitant rent charges, many of these workers are employed in an unprecedented construction boom in Rwanda.

So as the blue collars finish their working day at Vision 2020 blocks mainly in Gasabo district they retire home to shanty townships in the neighbourhoods of Nyabugogo where they share single room condos with the ever present cousins visiting from the country. The new initiative by government comes years after the housing bank started a scheme catering for the Diaspora market. This market is largely responsible for turning Nyarutarama from a green to a concrete jungle it is slowly becoming now.

The blue collars, who spend their day in this area as moto drivers, journalists, guards and casual labourers are left to the machinations of Kigali's crafty landlords. Whose mastering of price discrimination is unrivaled.
After a long working day at one of the various printing shops in the city centre commonly known as "Imperimerie,' Sulambaya a city land lord and Kigali Notes Correspondent brings you a beer chat with three of his friends concerning the housing sector or lack of it in our great city.

Abilia: I think the best powerpoint presenters are found in this great country. I was very impressed by their recent work in Serena as they presented the housing scheme reforms to donors attending the development indicators meeting last week. The donors have eloquent graphs showing the success of the funds they have poured in the fight against this and that sector, while local government officials have even more brilliant presentations showing projects that need more funding and others still progress but speed slowed because one donor has not fulfilled his pledge.


Msafiri: You are very stupid Abilia, don't you know that the people who do their shopping at UTC are the same ones that employ us? If you and your fellow protesters disturb them who will pay us? Let me tell you, your problem is finding rent. Well, it is also my big problem but right now am more concerned about how i will make it watch Shaggy. The entrance fee is quite high it equals my monthly rent. I must make it to see Shaggy, don't make noise about your rent. Instead i will join you if you protest about the morphology of our houses. They are all built to resemble car garages. Why by the way?

Mwafaka: All government officials talk about is the rising inflationary gap, food fuel, airtime and everything else. Why don't they talk about rent? The government is more concerned with bigger projects than your fellow 'city houseless' mates. I have to stage a massive protest against my land lord, government and my neighbours. This protest will make the one in support of Kabuye look childish. Me and my fellow squatters-the ones that have no issues with neighbours-will shout and thereafter we will enter UTC and not go out. This will scare away the shoppers from entering the mall. The ones we trap inside we will lecture them about making laws that curtail the powers of landlords especially in regard to hiking rent.


Sulambaya: The reason Mwafaka is mad about land lords is because when he got his one room house the land lord insisted that he be a "Cilibateri" then he brought his charcoal selling girl friend later two days, then his big black cousin who also invited his wife. Now their house resembles an IDP camp. I wish i was his land lord, i'd not hike his rent, i'd also charge him rent per head in the house. With the increased rent returns i'd be able to increase my contribution to one of the Koperativus my family belongs to.

Thursday 11 December 2008

The next round of fuel price negotiations: Inflation

BY GEORGE KAGAME

As this year's festive seasons begins, Kigali is facing fuel shortages and forcing many car owner to leave their vehicles packed at home and use public buses or the Kigali trademark, the Moto to conduct their daily businesses. The buses and motos are currently enduring long queues on many petrol stations around the city in the evenings as they fill up for the next day. There's a looming fuel crisis.

A disagreement between a cartel of fuel importers in the country and government is causing this misery. Apparently fuel importers were displeased by the recent reduction in the prices of fuel. The decision to reduce fuel costs was reached after negotiations between government and the importers, documents were signed, smiles abound and photos were taken. The press was invited, good news had to be told and shared.

As can be expected in the hustling world of the petrol dollar, a few weeks after the drama above unfolded. Government and petrol investors were back at the negotiating table. At the beginning of this week, the monthly meeting between the two was locked in a stalemate as fuel importers were unrelenting in their determination to charge a higher rate per average costs, point which government objected to. The issue at contention is about a mid ground price at which to sell a litre of fuel can be sold at petrol stations. The government insists on one and the importers want another, the former has insisted that fuel costs should keep pace with inflationary gaps in the economy. Not only are the importers finding this kind of talk bothering, they also refuse to understand it. As ever the case with these things, the involvement of the press in the matter was limited to press conferences and PR letters.

The talk of inflation and pump prices has left many in our great Kigali wondering who is fooling who! At a recent introduction ceremony in Cyangugu in the other province left some in the brides entourage wondering. Their deliberations were captured by our correspondent Sikiofupi. He presents its excerpts here below.


Mtupu: If the government is concerned about commodity prices and inflation, why don't they hold negotiations with land lords in the country, supermarkets, restaurants and private sector employees. These are the people in dire need of inflation lectures.

Msani: Who cares about prices of commodities, the Rwanda Bureau of standards? I choke!!!!!!

Mteja: Who cheats the consumers in this country? It it government high taxes, investors? We ask the private sector federation? Huh, don't mention that, what do they do kumbe? Hire consultancies and advocate. By the way, is there any trade union in our country?

Mhudumu: Today my supervisor told me to clean up and freshen the 'salle', he said that people in clean black suits, white shirts and red ties from Kigali are coming over the weekend to discuss development indicators in Rwanda. They will be escorted by other even more savvy people from The World Bank here to release a report showing indicators of growth in the country for 2007-8. I will inform you anything they talk about. The government is likely to welcome the report upon its release but a few weeks later the same government will be criticizing it.

And early next year they will hire a glamorous consultancy firm to advise them on what to do about the report. The private sector federation will also hire another consultancy firm probably from South Africa to advise it also. The investors meanwhile will wait for another investment conference to voice their frustration about Doing Business in Rwanda, high taxes, poor service delivery culture, these 'slow and backward' Rwandans'. At least i will be kept busy organizing the salle. The consumer will, well, what will you do?

Kenyans in Rwanda happy with relations between Kigali and Nairobi

BY GEORGE KAGAME


The Chairperson of the Association of Kenyans Living in Rwanda Ms Carol Nderitu has welcomed the decision by Kenya to abolish working permits for Rwandans able to find employment in her home country.
The decision to abolish work permits for Rwandan residents in Kenya was announced last month by President Mwai Kibaki while on a state visit here. It came only months after Rwanda scrapped working permits for residents of the five member making up the East African Community, however, other members of the EAC have not yet scrapped the permits. In Kenya citizens from other EAC members save for Rwanda are required to have work permits, while the permits are still in place for Uganda, Tanzania and Burundi.

Speaking to the press on Wednesday in Kigali, Nderitu said that the move is an important step towards achieving regional integration and bilateral relations between Kenya and Rwanda. She said members in her association were 'extremely happy" with their relationship with the government of Rwanda and added that officials normally attend meetings of her 316 member group to note issues that they raise.

Nderitu said her association is inspired by the monthly Umuganda public service. "We meet regularly to network and find means of increasing opportunities for trade between Kenya and Rwanda, we have also participated in Umuganda activities to have and promote dialogue between Kenyans here and Rwandans." She said that the asociation is set to host its second annual end of year dinner at Kigali's Serena Hotel this Friday.

To cement the good relations existing between Rwanda and Kenya today, Kibaki also promised that his government was set to eradicate all non-tariff barriers to trade with emphasis on reduction of weigh-bridges and road blocks. The announcement came after Kenya opened up a 24-hr service at the crucial Mombassa port and Rwanda declaring Gatuna customs post open for the same period. There are 30 Kenyan companies that have been approved by the Rwanda Investment and Export Promotions Agency while 2000 Kenyans are recorded to be living in Rwanda.

Methane gas extraction is a dream come true; Mirenge

BY GEORGE KAGAME


Gas extraction which began three weeks ago on Lake Kivu in the western province will incredibly supplement energy supplies in the country and increase economic activity.


This was revealed by John Mirenge the Director General of Electrogaz the government parastatal charged with energy supply, Mirenge who was speaking to journalists from his office on Wednesday said the current government had fulfilled the long held desire by Rwanda to utilize the huge methane gas deposits on the bedrock of L. Kivu: "For the first time in this country we have demystified the mystery of gas in Rwanda, before we only talked about it and doe nothing about it." He described it as a dream becoming reality.

Mirenge said that the pilot project to extract methane from Kivu began three weeks ago and it was producing 1.5 megawatts of electricity currently.

Speaking earlier, the Minister of state for energy said gas production on Lake Kivu is likely to cause challenges because it is the first time in the world that methane gas would be extracted from underneath the lake but stated that the gas will eventually be made available on the market, "The only problem remaining is that it will be the first time to exploit methane from underwater globally, so it will take a bit of time to come up with appropriate technology." The potential power output from the lake is 350 mw, he said.

Efforts to contact the techinicns in Gisenyi charged with the actual extraction were futile as their phones were switched off.
Methane gas has long been considered as the solution of Rwanda energy requirements, exploration works on the lake began in 1963 by a Belgian company. Today, the International Finance Corporation with other donors are financing the project.

Rwanda welcomes US task force on genocide prevention

BY GEORGE KAGAME

The U.S. Task Force on Genocide prevention report released this week in Washington has been welcomed by Jean de Dieu Mucyo the Executive Secretary of the National Commission for the Fight against Genocide as a "a crucial initiative" in the fight against the inhuman crime and its ideology.

Speaking to journalists in his office on Airport Road on Thursday, Mucyo said that as a world super power, the US had a responsibility to stop crimes against humanity wherever they maybe before the crimes exploded into full blown atrocities; "the US task force on genocide is very important because it will ensure that the US government will be prepared to deal with the crime whenever it happens. Had they been prepared to react, the massive destruction of life and property should not have happened here IN 1994."

In 2007, the US launched a task force to draw up a list of practical recommendations for responding to threats of genocide and mass killings anywhere in the world. The task force is chaired by former Secretary of State Madeleine Albright and former Defense Secretary William Cohen. Both leaders served in Bill Clinton's administration that failed to react with the genocide in Rwanda in 1994 and ethnic cleansing in the Balkans in the mid 1990s.

Rwanda lost over one million innocent civilians accused of being Tutsi and over 10,000 ethnic Albanians were murdered in the Balkans in a single day for being Moslem. The report titled "Preventing Genocide: A Blueprint for US Policy-makers," will be presented to the next U.S administration under Barrack Obama in January 2009 to be used in dealing with genocide issues in the world. The task force was formed by the United States Holocaust Memorial Museum, the American Academy of Diplomacy and the United States Institute of Peace.

Mucyo said that the report should not only focus on preventing genocide in the future but to help the victims that have suffered past genocides in the world: "it is important to help victims of Genocide where it has happened. In Rwanda's case the UN has passed several resolutions calling for assistance for the victims of 1994 especially children and widows, but till now most of these resolutions are just on paper. We hope that this example by the US is an example that Genocide does not happen anywhere else."


He also praised the US task force saying that will help speed up UN action in areas where atrocities are believed to be happening like Darfur; "the UN delays, procedures are very long, the US can speed up UN initiatives because of its huge influence there." Mucyo added that the US needed more partners in the developed world to show responsibility in leadership to help to end genocidal crimes. The UN has been accused for failing to stop the Rwandan Genocide because it was saddled by definitional issues, deferring a robust response to genocide to quibbling over the intricacies of its meaning.


Mucyo added that for now Rwanda is concerned and preoccupied with preventing the ideology that leads (led) to genocide in 1994: "We need to fight the ideology, we are advising local government institutions to organize visits to genocide memorials located in their own areas instead of ever coming to the capital in Kigali to tour the one based in Gisozi. In local memorials locals learn more about their own areas and how the hate propaganda and the genocide was rooted in all areas in the country. That way, fighting the ideology will have a nationwide approach instead of being focused in one area or institution."


Speaking at the launch of the report mid week Albright said genocide cannot be stopped by simply pledging "never again." She categorized three crucial dimensions of the task force's proposal: prevention of genocide as a top foreign policy priority; the creation of a high-level, inter-agency mechanism that is specifically focused on stopping genocide before it happens; and the appropriation of $250 million annually to finance "specially-tailored" projects in countries at risk. She added "preventing genocide is an obligation to past victims." In 2000 Albright was accused by African leaders for failing to act to stop the Genocide in Rwanda in 1994 as US ambassador to the UN, she was also accused of employing stalling tactics at the Security Council to prevent deployment of peacekeeping forces in the country.

Former US senator and ambassador to the UN John Danforth said the US had formed the task force because they were not entirely satisfied with UN reaction to the crime: "working through the UN is good and important, but i have just seen the UN not do anything."

The report notes in part; "preventing genocide is an achievable goal, genocide is not the inevitable result of ancient hatreds or irrational leaders. It requires planning and is carried out systematically. There are ways to recognize its signs and symptoms and viable options to prevent it at every turn if we are committed and prepared."

Kaberuka raises African concern about global financial crisis

BY GEORGE KAGAME

The President of the African Development Bank Donald Kaberuka has raised concern about the impact of the ongoing financial crisis in developed nations on African economies.

Speaking at the United Nations International Conference on Financing for Development's event on Africa meeting in Doha earlier in the week, Kaberuka said the current international crises in the finance sector, high fuel and food prices, Africa was to be affected in keeping commitments on Official Development Aid, on aid effectiveness, on trade reform is now "critical" and more urgent than ever. The conference brought together international economists from the UN and senior governments officials drawn across the globe.

"There is now little doubt the financial crisis will, and is already impacting on African economies through multiple channels; which cumulatively, are leading to slowdown and contraction of the economies of many countries in Africa. The result is lower government revenues, fiscal retrenchments, cutbacks in social programs, infrastructure projects abandoned business closures and strains in the banking sector"

Doha is also the same venue where the World Trade Organization launched the Doha Development Round in 2002. The Doha Round is remembered for starting the promotion of aid and trade relationships between developing and donor countries. The Doha Round talks also offers global leaders the chance to underscore their commitment to meeting the Millennium Development Goals (MDGs) and to reassure poor nations that the fierce economic conditions enveloping us today will not lead rich countries to scale back their efforts at reducing poverty in the developing world.

Experts and African leaders have voiced their fear and concerns about the ongoing credit crunch in the US and Europe, where consumers have borrowed more money from banks than the banks actually have in their control, powerful banks in the US and housing finance instituions have run bankrupt, merged or closed. In the process affecting other investment sectors of the economy. As a result, it has been feared that developed countries especially the US which contribute significantly to the donor aid that runs Africa would be affected as budget priorities of the rich nations change.

Kaberuka reaffirmed the African Development Bank's commitment to boost its support to the private sector, to help in ensuring that vital key infrastructure projects are not abandoned, to enable banks to continue accessing trade finance and to work with Governments and business to ensure momentum on business reform does not slip back. He highlighted that the financial crisis comes on top of the impact of escalating food and oil prices where many African countries were straining from protests and demonstrations by citizens against government for high fuel and food prices.

In a letter addressed to the same conference, Pascal Lamy, director-general of the World Trade Organization has also called upon developed nations to show their deeds that they remain committed to helping developing countries grow through trade and aid.

He said that with the global financial system in crisis today, the international economy is bracing for the worst economic recession since the 1930s. Lamy wrote that because of the current "tough times" in the world "it will be easy for politicians to blame foreigners for their nations' ills, shutting foreign products out of their markets and slashing foreign aid budgets." He also said that the WTO was happy with the decision recently by the 20 major economies in the world to pledge publicly a moratorium on the imposition of new barriers to trade in the coming 12 months.