Friday 2 January 2009

Kigali's heartbeat to be recorded by Umnva.rw

BY GEORGE KAGAME

Having been hustled off his hard earned money by Kagali's moto riders thanks to his limited knowledge of the city's street names or the lack of, American journalist Josh Kron developed a business idea. He decided to invest his money in a localized databank and multi service providing agency and named it Umnva,a Kinyarwanda expression for; "Hey Listen".

Kron who has been a resident of Kigali for over two years now says he has been here long enough to know this is one of the most beautiful places he been too and unfortunately he says that most features of the country's beauty are not recorded and furthermore, where it is recorded, the information is not readily available for those that give it and the ones that need it or are supposed to use it.

"After working in several newsrooms in Kigali, at certain times i was embarrassed by the kind of questions that journalists asked after being assigned for stories. I realized for the start i could start a service company where any information about Rwanda can be updated by members of the public by uploading their own data and images about issues and events of importance to the vision of the country," Kron said.


Kron says there is so much going on in Rwanda currently but there's a general lack of information on what is happening; "Umva House will address many sectors in the country and this is shown in its multi lingua franca, we have our information collected from official sources and will be translated in Kinyarwanda, Swahili, English and French to be able to appeal to a cross section of Rwandans."

The American says his idea is not similar to the popular language schools in the country that claim to help Rwandans to achieve Vision 2020, he says that Umva will soon be one of the examples of private-public partnerships where followers will be able to get updated online on what is happening in the country and that this information will be provided by government, multinational companies and organizations to individuals-who through a given procedure will also be able to contribute to the information flow by updating umva.co.rw with their own perceptions and experiences.

He adds that his vision for Kigali is a well cleaned, socially connected and with competent delivery services, "and Umva hopes to be one of the first ventures that beyond event management will guide everyone interested in Rwanda to get contacts, book buses to different areas in the East African region, food delivery in Kigali and have every sector of the population represented in its coverage." He says that UMVA will also list public and private weekly events and will bridge the gap that exists between Rwanda's tourists, locals, students, policy makers and politicians. Kron reviews his website-which is listed by the registrar of companies as a private limited liability company-as being geared towards the rebirth of Rwanda culture, national identity and prestige, both domestically and abroad while keeping the identity of the country's leaders at par with their subjects.

Coming soon, the lighting city of Bugesera

With an industrial park, airport, free trade zone, a new road linking up to Burundi, perhaps the most equipped boarding school in the country and a soon to be introduced irrigation scheme-the first in the country-it is of utmost importance that residents are worried about the soon to be importance of Bugesera.

Part of the larger Eastern Province Bugesera is emerging from was otherwise Rwanda's poorest regions where malaria thanks to the area's relative comfort for mosquitos, the Eastern town will soon rival our good old Kigali in terms of attracting settlers and investors. There are many projects underway to prove this not least the new modern road and a better planned water distribution framework.

The costs of a pierce of land has also shoot to the skies and if you are from Kigali, price discrimination is one concept you might love to revise if you are interested in looking up. Three years ago, a plot of land here cost in the region of Frw 300,000 to 500,000 today this figure has gone up tenfold and the district authorities know the importance of beauty, their housing plans that have to be strictly adhered to and like in Kigali, the construction boom is taking its root here too. Bugesera will in the near future be the true symbol of where Rwanda has come from and where it is headed.

Cooking gas costs to reduce early next year; Electrogaz

BY GEORGE KAGAME

Early next year, government is set to introduce incentives for importers of cooking gas and reduce its levies on the product so that many Rwandans are able to afford it.

This was was revealed by John Mirenge the Managing Director of Electrogaz, the national energy supplying agency while speaking to journalists in his office. Gas is considered by many experts to be the most efficient and low cost cooking energy but its prices in Rwanda are far too high compared to prices in regional countries like Tanzania and Uganda. Most Rwandans however are not aware of the effectiveness of cooking gass and those that know cannot afford it as it is beyond the affordability of many. A 6kg can of cooking gas at Kobil Petrol stations costs Frw 75000 while a 12kg can costs Frw 85000 in Nakumatt mall. The same cans are sold at 64 and 153 USD respectively in neighbouring Tanzania and cheaper in Uganda.

Mirenge said government will early next year introduce a scheme to encourage and support gas importers in the country such its cost to the last consumer in Rwanda reduces. He did not offer any details however regarding the actual incentives but said the package was being handled by the Ministry of Energy and Natural resources and would be released at the beginning of the year. Furthermore Mirenge said that government had earmarked 8 mini hydro electricity projects and construction works were already underway for some while many will start in January 2009. Efforts to get a comment for Eng Albert Butare the state minister for energy were futile.

"Soon consumers will be relieved, government will introduce incentives on LPG (cooking gas), we are trying to reduce dependence on charcoal as this is very costly to the environment and we do not have enough electricity to cater for most energy requirements in the country."

Mirenge also said that Rwandans would have to wait a little longer to begin enjoying the benefits of methane gas whose extraction began in November 2008 on Lake Kivu; "the equipment at Gisenyi pilot plant is only capable of producing 5 megawatts of electricity but because of the limited machinery we have currently it is only able to produce 1.5 megawatts." He said that the investors in the gas project are expanding the plant so that it can produce to its maximum but added that the extensions would be completed by 2011.
Till then, the national energy requirements are being met by thermal generators which are very expensive as their daily costs is estimated at 2M USD.

In a telephone interview, Alex Kabuto he Director General of the methane gas extraction pilot plant in Gisenyi said that they are currently supplying Gisenyi town with 2 mega watts of electricity but added that Contour Global the American firm in charge of extraction was acquiring and installing new machinery and would soon increase output to between "50-100 mega watts."
Experts say that if the project succeeds it has capacity to deliver 350 mega watts which would solve most energy problems in Rwanda. The national energy requirements are stretched enough already yet only less than 10 percent of the population remains with access to hydro electricity.

Kabuto said that currently the extraction is very expensive "because we have been renting the machinery but we are soon buying our own machinery. Within the next two years we will be able to stop depending on the diesel generators for electricity and supplement national energy requirements with this methane gas." Kabuto said the national budget will be relieved of alot foreign expenditure on diesel when the methane gas plant is expanded.
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 in Gisenyi.

Government to reform Rwandair and improve air transport; official

Government to reform Rwandair and improve air transport; official

BY GEORGE KAGAME

The government is set to introduce new operation standards for Rwandair Express and make it an ; "an airline of choice by focusing on safety and quality service" this was revealed by a senior official in the Ministry of Finance and Economic Planning who preferred not to be named.

In a telephone interview the senior official said that government aims to create an alliance with British Airways such that it benefits from the BA's vast route network and modern management resources, the official added that BA would also be allowed to fly directly to Kigali and tap in the passengers that prefer flying directly to Europe on top of purchasing additional planes to increase the current fleet. Currently BA flies only to Uganda, Kenya and Tanzania with passengers to Kigali booking another flight to connect to Rwanda while the planes that Rwandair Express owns are considered below internationally accepted standards.

The new changes at Rwandaiar Express come when government is searching for funds to construct Bugesera International Airport to facilitate Rwanda's desire of being a regional hub for passengers and cargo. The official said that when the air transport challenges currently facing the country are reduced, Rwanda will be able to earn much more from tourism which according to a new year's message from national office of tourism stood at USD: 214 million by the end of 2008.

In a related development the end of year statistics released by the Rwanda Office for Tourism and National Parks-ORTPN on Thursday stated that currently tourism is the leading foreign exchange earner for Rwanda. Rosette Rugambwa the director general of ORTPN said with the the increased investment in the tourism sector the growth would be sustained and is expected to consolidate its its position as the country’s leading foreign exchange earner. She added that investments in the industry especially the increase in the number of hotels around the country from 148 hotels with 2,391 rooms in 2007 to 163 hotels with 3,552 in 2008 have bolstered the sector. 

In his new year's message, Gerald Zirimwabagabo Rwandair Express executive chairman said they will launch a 10 year Strategic plan in 2009 along with a 5 year business plan for the airline company to achieve sustainable and profitable growth, expand our network and increase intercontinental partners so that Rwanda witnesses more global aviation connectivity. Acquisistoin of more aircrafts.

Furthermore, the Association of Hotels and Restaurants and Rwanda Workforce Development Authority-RWODA- are set to improve the quality of catering and other services in the country. In a recent Memorandum of Association of Understanding between the two it was agreed that they will inspect the hygiene and services of restaurants on top of training staff in the hotel industry. The initiative comes at a time when many Rwandans and visitors voice their disappointment and frustration for the quality of hotel and catering services in the country.

Monday 29 December 2008

2008 new money meets Rwandans not ready

BY GEORGE KAGAME



The end of every year resembles that of each working day for the largest supermarket in my neighbourhood. At the end of each working day here, the owner closes the entrance door and along with her husband and Petero Gatera their cousin from the country converge behind the counter. With Gatera remaining at the door to keep watch while the rest of the family sit behind the small counter to count the returns from the day's sales. It otherwise called taking stock. As it is with every end of year we all go; 'Happy New Year" and then follow the statement with the reminiscing about the last and the forecasts for the new one. We are like a super market to translate.

The routine of the supermarket like that of every new year has been similar for a very long-while but the seriousness with which the family carries out this task daily makes it it look like that is the first day for sales reconciliation and its the last. Albert Uwayesu the husband told me that if the universal issue in discussion is money the lingua franca starts and ends with 'utmost seriousness' at every step. "Is life not about money?" he asked.
New money is what Kigali has been experiencing since the beginning of 2008 and the results are there for all to see, the city is now abuzz with many Yuppies-Young Urban Professionals- moving around with laptop bags, while their younger colleagues are now in space and out of place.


These are the teenagers, campusers who equipped with latest mobile phones and Ipods have left the verbose Africa.
There are no more conversations in buses or restaurants, every one in the newest generation seems to be having earphones plugged on their heads and they are all listening to downloaded music from the internet. This is the Kigali of ICT, and yes, that is the story of Kigali now, new money, new kids and newer laptops.
And like Uwayesu said, Kigali has been about money this year, not only has the number of banks from foreign lands increased their presence here, the new banks have also sparked a competition for attraction in the city centre. BK was the first to set up an ultra modern office block-if you ignore Ecobank, then Finabank, then BCR and even Banki Ya Baturage is following suit.

It is not just in the blocks alone that the banks are competing, their managers are busy behind their flashy glass windows devising means with which to attract Rwandans to start up business plans that the banks are ready to fund. Yes, it is official Rwanda's commercial banks are lamenting that they have too much money in their coffers which Rwandans are not borrowing it to create business enterprises that will in turn create more money. As a remedy the banks started a program in 2008 whereby customers are given incentives to design good business plans that can be funded by the banks, all the customers need to is good business acumen to present a plan.

Three of the customers that entered the most recent business plan competition and failed met up with Kigali Notes' good old corespondent Matu Sikiofupi who captured their lamentations and recounts them below:
Mchizi: I designed a good plan. I wanted to open up a bar and saloon and i wanted some of the rooms in my house as premises for the enterprises, however the bank panel threw my plan out and never offered me an explanation. They said this is not a good plan. Now i have asked them to assist me learn how to make good plans.

Taperi: What were you doing going for business competitions when you know that you have never entered leave alone won any competition in your life. There has been alot of money coming into Kigali this year and i mean big money, if you want some of it the bank is not the place to go. I suggest you try entering one of the 'Ishirahamwe' there you will get money without straining your little brain. eti business plan!!!

Bonfere: I suggest that we try going to Kenya to look for work there so you can save and start your business without mocking yourself with bank competitions. Have you not heard that Kenya this year allowed us the opportunity for employment there without paying any taxes. This has been a great year to be in Rwanda and even greater if you are in Kigali.

Investors’ now turn to President Kagame for tax reforms

BY GEORGE KAGAME

Rwanda’s ambivalent tax system is still a major challenge for investors and hinders the volume of business in the country, this was revealed by a group of businessmen that were meeting President Paul Kagame in his annual investors’ roundtable.

The roundtable which took place in Village Urugwiro earlier in the week is meant to promote and strengthen partnerships between the public and private sectors which Kagame has relentlessly pursued as necessary for Rwanda to achieve economic growth.
The investors led by Robert Bayigamba the Rwanda Private Sector federation president said the high cost of transporting goods and services to the Rwandan market along with the absence of an effective tax rate are some of the issues that must be dealt with effectively if Rwanda must attract more investments in the country.

In an earlier interview Ms. Rachel Kyte a senior Vice President with the International Finance Corporation said Rwanda as a land locked country needs a highly efficient transport and logistics network.
IFC is a private investment subsidiary of the World Bank,) and one of the leading investors in Rwanda today with strong interests in the tourism sector.

The investors’ concerns come at a time when Rwanda has just climbed several steps in the World Bank’s Doing Business index for 2008 from 148 in 2007 to 139 out of 175 countries surveyed. The jump up was made possible by the several reforms that were undertaken in 2008 after the formation of the national Doing Business Unit, a task force under the Rwanda Investment and Export Promotion Agency (RIEPA), to identify and drive implementation of reforms to improve Rwanda’s business climate.

The task force began its work in December 2007 and, within nine months had identified and successfully implemented 15 investment climate improvements, most of which were captured in the current survey causing Rwanda to move several notches up. These include; reduced cost of port and terminal handling by liberalizing the warehouse services sector, and new customs declaration points have accelerated trade. Furthermore, decentralization has sped the issuance of building permits.


The task force came into force at about the same time that the Ministry of Finance and Economic Development along with the Rwandan country office of the World Bank hired The Policy Practice a savvy consultancy firm to advise economic policy makers on business reforms to improve local private investments.


In an independent survey by the New Times early in December showed some small scale investors in Kigali as happy with government in improving conditions of accessing capital, reducing non tariff barriers and "a reasonable tax policy".

Small scale investors happy with 2008 reforms in business environment

BY GEORGE KAGAME

As the end of 2008 approaches, small and medium scale investors in the country have expressed joy concerning reforms in the business sector which the government adopted in 2008 to reduce the cost and burden of investing in Rwanda.

A handful of small scale investors interviewed in a random survey carried out by The New Times since the beginning of December across selected suburbs in Kigali city revealed that the private sector investors were happy with continued effort by government in improving conditions of accessing capital, reducing non tariff barriers and "a reasonable tax policy".

According to Innocent Nsengiyumnva a wholesale shop owner in Remera, today he is capable to import his goods from Kenya and Uganda without much hassle from customs officials and as a result his turn over rates have also increased.

Claude Mupenzi an importer of fashion clothes in Kicukiro said that he was happy with the increased working hours of the customs boarder posts and the cooperation of Kenyan authorities since both countries have increased bilateral relations in the business sector. He said however that there were challenges in the transportation of the goods as fare costs are still very high.
The investors' remarks come at a time when government has embarked on a vigorous campaign to make its ambition of making Rwanda a regional investment hub a reality.

This started with President Paul Kagame authorizing the establishment of a national Doing Business Unit, a task force under the Rwanda Investment and Export Promotion Agency (RIEPA), to identify and drive implementation of reforms to improve Rwanda’s business climate. The task force began its work in December 2007 and, within nine months had identified and successfully implemented 15 investment climate improvements, most of which were captured in the current survey causing Rwanda to move several notches up.

According to Kempeta Sayinzoga, a senior official in the Ministry of Finance and economic planning, the government reviewed 14 commercial laws in 2008, the laws are part of government's commitment to promote commercial courts to deal with business related issues between private investors and government authorities, they are also part of government's intention of building confidence in private and public sector partnerships.

Sayinzoga also says that her ministry has implemented four out of 10 reforms that are crucial in streamlining procedures and requirements needed to start up a business in the country. She adds that because of these reforms, Rwanda has been able to move up the ladder on the World Bank Doing Business Index from 148 in 2007 to 139 in 2008 out of 175 countries surveyed every year.

Sayinzoga further adds that the Rwanda Development Board was created to consolidate institutions geared towards increasing efficiency of service delivery to investors in the country. Some of the institutions introduced in the year include Business Registry Agency, Land Registry all geared towards reducing bureaucracy for investors.
The finance ministry has also since the beginning year held regular meetings between the Private Sector Federation and Rwanda Revenue Authority to discuss tax and private sector development.

The Rwanda Revenue Authority has also introduced a scheme to reward good compliers, as a result small scale investors in the country are now more cooperative in paying taxes on time.

Rwandans express mixed on Bagosora's life sentencing by the ICTR

BY GEORGE KAGAME

Across section of Rwandans interviewed by The New Times on Thursday for their reactions on the sentencing to life in jail for three individuals who have been identified as crucial in the planning and the implementation of the 1994 Genocide in Rwanda with mixed reactions.

The International Criminal Tribunal for Rwanda in what many observers say is their land mark trial so far sentenced to life imprisonment the Theoneste Bagosora a highly influential officer in the Rwandan national army prior to the Genocide in 1994, n the same judgement read by Norwegian judge Erik Mose, Lieutenant Colonel Anatole Nsengiyumva; and Major Aloys Ntabakuze were also given life imprisonment sentences while General Gratien Kabiligi, a former director of operations in the same army and along with the three was in the same group jointly tried as Military Trail one was acquitted.

The majority of the interviewees picked randomly in Kigali said that Bagosora and his three co-accused in the Military Trial case deserved the life sentence he was given by the ICTR and that the trial took unnecessarily longer as there was not much research needed to ascertain the gravity of Bagosora's crimes in the Rwandan responsibility. Alphonse Bucyanayandi 39 and a resident of Gikondo and working in Kacyiru said the sentencing of Bagosora, Nsengiyumva; and Ntabakuze was long overdue; "the sentencing was expected and only because the ICTR does not a more harsh punishment. In my view, there's no possible punishment that Bagsora can be given to help the healing process of the country. But life sentence is better than anything else in the alternatives the ICTR have."

Robert Rwiyemeye 32, a survivor working in the city centre said he was disappointed that the trial took such a long time to come to an end; "we have endured much humiliation reading and listening to the radio about the proceedings in Arusha, the sentencing of these particular individuals should not have taken such a long while but am happy that Bagosora will hopefully spend the rest of his life in jail and i hope he stays long enough as the victims of his activities have endured for so long."

Maria Mukandoli 29 a kiosk owner in Nyabugogo said the judgement is crucial for its timing because it was one of the most important trials that the ICTR claims to have delayed in completing; "now that the biggest suspects have been sentenced, i hope that that ICTR does not ask for their mandate to be extended beyond 2009 as they asked the security council."
Stephen Muganga 45, who witnessed killings in Kanombe said he was disappointed by the acquittal of General Gratien Kabiligi; "Kabiligi was an influential commander in 1994, there's no chance that as director of military operations in the army he never participated in the killings." Kabiligi was one of the four former officers in the genocidal regime forces and was acquitted by the ICTR.

Bernoid Kaboyi the Executive Secretary of Ibuka a local organization charged with assisting the survivors of the genocide refused to give his opinion on the judgement when contacted by The New Times but Fracois Xavier Ngarambe the Spokesman of the Prosecutor's office said that the judgments were welcome but he objected to the acquittal of Kabiligi and the 20 years jail sentence given to Juvenal Habyarimana's in-law Protais Zigiranyirazo for his role in the genocide; "i have also been following the sentencing sessions in the news but anyone would have sentenced Bagosora to life in jail if you followed his responsibilities in the history of Rwanda. It is also good that the judgments are out of the way."