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JULY 2014 ISSUE 42 Doing Special on

Report Telling Rwanda’s Story Business Reforms Magazine

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INSIDE Rwandarollsoutnew 2014-2015 Turkish Airlines Discover Antalya Capital Market now of age TIGO and Edu Me DoingBus nessReforms Crane bank opens in Rwanda UAE Exchange opens another branch

t vironmen n E nd a iety c o S , e l eop P for t c e sp Re Life for yment o j n E ity l a Qu for n assio P Passion for Quality Enjoyment for Life Respect for People, Society and Environment www.hope-mag.com

PUBLISHER’S WORD Reforming more HOPE TEAM Abraham Rumanzi to perform better Albert Ndata Gahima Vital Gaspard Gashambo Karugahe Mutoni L. The RDB-led reforms for 2014/2015 have accentuated transiting from informal Latim Lawrence W. to formal SMEs with continued easy, very low-cost company registration. The Manzi Joseph RDB-led reforms for 2014/2015 have accentuated transiting from informal to Matthew Rwahigi formal SMEs with continued easy, very low-cost company registration. Muziba Sheilah Noella Rugema I. Rebero Daniel oing Business report for refocusing their products and is another salient innovation

as indexed by the services for a specific market and that has so simplified and saved HOPE JULY 2014 ISSUE 42 DWorld Bank has are geographically dispersed investors in real estate, commercial PUBLISHED BY continued to position Rwanda and therefore have a bigger buildings and others the hustles at a superlative rating, efforts reach in terms of spreading of spending time and resources. Hope Magazine Ltd, that have consistently translated the benefits. into more investments, (local and All the reforms that have been foreign), better trading terms The government of Rwanda made are an indelible statement ADVERTISING & in the region and beyond and, has also ensured that for the of a people that have decided GENERAL INQUIRIES in the process, trudging the processing and manufacturing to walk the development path 7 path of meeting many of plants that are cluster-anchored together—both the leaders and

P.O. Box 6176 the development priorities in the industrial area get free the led; get faster results and www.hope-mag.com Kigali-Rwanda and international commerce connection services for both transform an entire economy +250 788 524189 / obligations. water and electricity i.e. through evidence-based solutions. +250 788 404138 application, submission, field The onus, however, is still upon The RDB-led reforms for 2014/2015 survey and quotation, material us to make such environments [email protected] have accentuated transiting from issuance, installation, testing and created to be sustainable and Website: hope-mag.com informal to formal SMEs with commissioning compared to the pass the test of time. continued easy, very low-cost Rwf20,000,000 connection company registration. This is in charges outside the industrial If and when investors trust COPYRIGHT 2013 tandem with creating competitive area. Rwanda because of the reforms small business entities that will so generated, we should all, reserved by Hope eventually metamorphose into The Kigali Special Economic beginning with the policy makers, Magazine Hope platforms for the creation of a Zone therefore has attracted ensure that such trust never Magazine a monthly middle-income class as envisaged many investors because of such fades but instead used to create Magazine is published in the Vision 2020. and more incentives; because more deep-seated confidence by Hope Magazine Rwanda’s economic plans for attracting more and building Limited. Formal SMEs are easy to have operate beyond the WB Doing bigger business networks. This All rights reserved. their capacities built, be supported Business reforms. Processing and more, we believe, Rwandans The opinions expressed for financial inclusion, mobilized online construction permits, can do. in the magazine are not necessarily those of the We appreciate your feedback. Please keep sending more on [email protected] or visit editors and publishers of www.hope-mag.com to post your comment on any published story. Hope Magazine. We shall pick it and respond to you asap! Rebero Daniel t vironmen n E nd a iety c o S , e l eop P for t c e sp Re Life for yment o j n E ity l a Qu for n assio P Passion for Quality Enjoyment for Life Respect for People, Society and Environment Passion for Quality Enjoyment for Life Respect for People, Society and Environment Care is taken to ensure accuracy, Hope Magazine assume no liability for error or omissions in this publication. All Advertisements are taken in good faith, opinions and views contained herein are not necessarily those of the Publisher. All copyrights and trademarks are recognized. No part of this publication or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without written permission by Hope Magazine. An exemption is hereby granted for extracts with the purpose of fair review. © 2013 SPECIAL FEATURE RWANDA ROLLS OUT NEW2014-2015 Doing Business Reforms HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY

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aving been named one of 2014-2015 business reforms to The 10 WB indicators of Doing the topmost global business further the creation of an environment Business include, Starting Business, reformers by the World favorable for business development. Dealing with Construction Permits, HBank’s Doing Business report The reforms put in place by RDB Getting Electricity, Registering Property, 2014 carried out in 189 economies cover all the 10 indicators of doing Getting Credit, Protecting Investors, worldwide, the government of Rwanda business which are con sidered by the Paying Taxes, Trading Across Borders, through the Rwanda Development World Bank (WB) in its annual Doing Enforcing Contracts and Resolving Board (RDB) has rolled out its Business report. Insolvency. DOING BUSINESS REFORMS

SPECIAL FEATURE SPECIAL FEATURE RWANDA ROLLS OUT STARTING A NEW2014-2015 BUSINESS Doing Business Reforms TOWARDS EASING PROCEDURES OF STARTING A BUSINESS AND MAKING THEM USER-FRIENDLY,

on 27 February this year Card Authority (NIDA). This has a prerequisite if national development RDBintroduced mandatory online greatly helped in retrieving personal is to be attained. Despite the fact that registration of all com panies in Kigali and information in a more efficient and the idea of starting a business requires HOPE JULY 2014 ISSUE 42 this has hugely reduced the time spent effective way since NIDA feeds this courage and strength from those who when registering a company from 1 day informa tion directly. The information intend to start the Rwandan govern- to less than 6 hours. The new program that was on the extra pages can now ment through the Rwanda Development has seen 58% of the total registered be accessed directly from NIDA. Board (RDB) and other institutions businesses registering online whereas This trickles down to saving time on with a stake in the procedures has made commendable efforts at easing

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY 90% of total businesses registered since company registration allowing RDB the reform was commissioned in February to deliver within 6 hours at maximum. the process for people who want to 8 9 2014 have done so online. Also 100% reg ister their businesses by putting

of companies in Kigali are registered online STARTING A BUSINESS IN place policies and frameworks that www.hope-mag.com and upon registration, their certificates RWANDA MADE EASIER AND help business people to register their of registration are automatically received SIMPLE companies in the shortest time possible. through their email account reducing the Starting a business is one of the major Starting a business is the first indicator time that was originally spent collecting ambitions and dreams of each and most among the 10 indicators under the them from RDB. people globally, Africa included as it Doing Business Report project which is carried out by the World Bank (WB) www.hope-mag.com www.hope-mag.com helps people to get a breakthrough This has reduced procedures required towards their individual success annually and Rwanda has continued in the process from 2 to 1, in addition financially and socially, but also are to gradually improve on this indicator to removing the cost of registration from Rwf15, 000 to no charge. By May 21st 2013, 1895 compa nies had been registered through the online process, representing a 125% increase from the 842 companies registered online last year. Between 1st June 2012 and May 21st 2013, the total aving been named one of 2014-2015 business reforms to The 10 WB indicators of Doing number of companies registered was the topmost global business further the creation of an environment Business include, Starting Business, 9956 for both the online and basic reformers by the World favorable for business development. Dealing with Construction Permits, systems. From 2012 to 2013 pages Bank’s Doing Business report The reforms put in place by RDB Getting Electricity, Registering Property, for company incorporation reduced H from 10 to 5. This correlates to a 50% 2014 carried out in 189 economies cover all the 10 indicators of doing Getting Credit, Protecting Investors, worldwide, the government of Rwanda business which are con sidered by the Paying Taxes, Trading Across Borders, reduction in the time taken to fill the through the Rwanda Development World Bank (WB) in its annual Doing Enforcing Contracts and Resolving application forms. RDB has also been Board (RDB) has rolled out its Business report. Insolvency. connected to the National Identity Kisementi is one of the upcoming business centres in the outskirts of Kigali City DOING BUSINESS REFORMS

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8 reforms in starting a business, dealing with construction permits, registering property, getting credit – legal rights, protecting investors, paying taxes, trading across borders and resolv ing insolvency, Rwanda gained 20 ranks moving from 52nd to 32nd global easiest economy to do business. The impact mainly come as a result of the reforms in registering property (gain of 55 ranks), and in resolving insolvency (gain of 30 ranks). This has been made possible by concerted efforts of all stakeholders in the Doing Business Project. RDB Former CEO Valentine Rugwabiza Sendanyoye, Finance Minister Claver Gatete, the World Bank Country Manager for Rwanda, Carolyn Turk, and Trade & Industry Minister Francois Kanimba at the The government has been consistently launch of the 2014 Doing Business report reforming and has continued to show its RDB Center

of Business HOPE JULY 2014 ISSUE 42 commitment towards removing regulatory registration Here year on year gaining more ground every ease of doing business since 2005, burdens to business by moving beyond the registration takes time the report is released.. This gain beating Georgia to this record, and DB indicators to the overall investment no more than 6 hours fac tored in the country’s impressive other 173 economies. climate issues. Being a performance in the 2014 World Bank This is an indication of the reform-minded Government DB report not only in Africa but on Rwanda’s improvement over with commitment to broader Ranks

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY international level. Rwanda has been time as compared to other gained reforms like public sector very active since 2008/9 topping the from 10 countries’ performance 20 reform, decentralization 11 global reformer’s list twice in Doing in the areas measured 52nd - 32nd global reform, plan ning and REGISTERING A

www.hope-mag.com www.hope-mag.com urrently, registering a has connected data base systems company takes only 6 with the National Identification hours is done freely and Agency and this has saved time of Cthe online Business applicants filling in details because Registration Portal has been all one needs is filing in their ID upgraded and improved to ease number and all pertaining bio this convenient and time saving data is automatically generated option. This involves client doing a and entered. name search to ascertain whether the proposed business name is After filling and submitting the not reserved or in use by another application form requesting for business. Business Registration, the applicant receives the certificate of registration Upon approving the name, a form directly to their Email, thanks to the is offered and is filled with details improved online service platforms. of the company address, administration, services and financial or Once verification of all required capital infor mation. For Rwandans, info and accompanying documents the Registrar General’s office for each applica tion is done and DOING BUSINESS REFORMS

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easiest economy to www.hope-mag.com Business 2010 and the 2011 report by the Doing Business do business. accountability as well as TOWARDS EASING PROCEDURES OF reports respectively. Rwanda was again report. Out of the 189 good gover nance, one can STARTING A BUSINESS AND MAKING a top reformer in the released 2014 countries assessed by the also needlessly say it is also Doing Business report. The country was World Bank on ease of Doing Business, a private sector-minded government with THEM USER-FRIENDLY st BUSINESS recorded as the 1 to have advanced Rwanda was ranked in 32nd easiest con ducive business environment at the the furthest towards the frontier in the country to do business globally. With heart of Government priorities. www.hope-mag.com www.hope-mag.com urrently, registering a has connected data base systems company takes only 6 with the National Identification hours is done freely and Agency and this has saved time of Cthe online Business applicants filling in details because Registration Portal has been all one needs is filing in their ID upgraded and improved to ease number and all pertaining bio this convenient and time saving data is automatically generated option. This involves client doing a and entered. name search to ascertain whether the proposed business name is After filling and submitting the not reserved or in use by another application form requesting for business. Business Registration, the applicant receives the certificate of registration Upon approving the name, a form directly to their Email, thanks to the is offered and is filled with details improved online service platforms. of the company address, administration, services and financial or Once verification of all required capital infor mation. For Rwandans, info and accompanying documents the Registrar General’s office for each applica tion is done and If we are to achieve our vision and goal of SPECIAL FEATURE being among the top

consequently approved, a registration performers in the world continues to work with private sector certificate is given to the applicant in as far as registration structures to create awareness on in less than 6 hours which authorises of companies and the availability and reliability of the them to start operating their business e-registration service. doing business in henceforth. general is concerned, In the previous months, RDB in part- The Registrar General of companies online registration nership with the Ministry of Trade and at RDB Ms. Louise Kanyonga, noted of companies is the Industry (MINICOM) and the Private that in a bid to further ease starting Sector Federation (PSF), conducted a a business in Rwanda, her office is way to go because it nationwide training of staff at Business now consolidating more strategies is reliable and user- Development Centers, owners and aimed at capitalizing more on online friendly compared to operators of private cyber-cafes as well business registration and mobilizing as PSF staff in the districts concerning physical registration people to opt this compared to the the online registration of businesses. physical option. which involves people “The training was successful with an travelling all the way impressive turn-out and we hope that Currently online registration of to RDB headquarters in this will be a turning point that will companies is compulsory for businesses result in more people using the online in Kigali city which is the pilot area order to register their services,” Kanyonga said. for the envisioned move to make all companies,” Kanyonga business registration mandatorily said. The rationale of the training is that online. Starting with the city area is with skilled and knowledgeable people meant to encourage more people at BDCs and private Internet cafes, it HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY to use the online registration to the will increase the access and usability 12 physical option. of the online service. It will also help to tackle another challenge for online “If we are to achieve our vision and registration, which is still low level of goal of being among the top performers computer literacy in the country. She in the world in as far as registration added that the trainings will even of companies and doing business in create a business opportunity for general is concerned, online regis- cyber-café owners to either organize tration of companies is the way to go computer training or offer assistance www.hope-mag.com www.hope-mag.com because it is reliable and user-friendly in registering a business for a fee for compared to physical registration those without a computer or internet. which involves people travelling all the way to RDB headquarters in As for prospective business owners, order to register their companies,” especially those upcountry, Kanyonga Kanyonga said. Louise Kanyonga, Registrar General pointed that they have the advantage that they don’t have to travel to She added that for people who travelling to RDB offices. According Kigali anymore to incorporate their currently need to register online, to Kanyonga, online registration of enter prise since they will be doing it they can easily access RDB’s website companies started in 2012. Currently at their nearby cyber cafes or in the which has all information and an 30 percent of the Rwandan population comfort of their respec tive habitation. online registration manual, noting register ing their businesses, do it through that easy access to the website is the online portal but her institution “The main advantage of online paramount since it enables many has set a target of increasing this registration of companies is that it people to regis ter their companies percentage to 52 by the 2015 saves time as well as increases the conveniently, make inqui ries about World Bank Doing Business report number of companies registered in a registration procedures and other survey phase. She said that in order specific period of time in addition to e-services offered by RDB without to achieve this ambi tious goal, RDB enabling people to concentrate on DOING BUSINESS REFORMS If we are to achieve our vision and goal of SPECIAL FEATURE SPECIAL FEATURE being among the top consequently approved, a registration performers in the world continues to work with private sector other business activities of theirs instead certificate is given to the applicant in as far as registration structures to create awareness on of wasting valuable time in queues while in less than 6 hours which authorises of companies and the availability and reliability of the registering their companies here at RDB,” them to start operating their business e-registration service. Kanyonga said. She added that online doing business in henceforth. registration of compa nies reduces human general is concerned, In the previous months, RDB in part- errors which may occur during the registration The Registrar General of companies online registration nership with the Ministry of Trade and process saying that her organization has at RDB Ms. Louise Kanyonga, noted of companies is the Industry (MINICOM) and the Private two online help desk administrators who that in a bid to further ease starting Sector Federation (PSF), conducted a assist people to register their com panies a business in Rwanda, her office is way to go because it nationwide training of staff at Business online and this service is also done free now consolidating more strategies is reliable and user- Development Centers, owners and of charge. aimed at capitalizing more on online friendly compared to operators of private cyber-cafes as well business registration and mobilizing as PSF staff in the districts concerning physical registration people to opt this compared to the the online registration of businesses. physical option. which involves people “The training was successful with an travelling all the way impressive turn-out and we hope that The main advantage of online Currently online registration of to RDB headquarters in this will be a turning point that will registration of companies HOPE JULY 2014 ISSUE 42 companies is compulsory for businesses result in more people using the online is that it saves time as well in Kigali city which is the pilot area order to register their services,” Kanyonga said. as increases the number of for the envisioned move to make all companies,” Kanyonga companies registered in a business registration mandatorily said. The rationale of the training is that online. Starting with the city area is with skilled and knowledgeable people specific period of time... meant to encourage more people at BDCs and private Internet cafes, it www.org.rdb.rw HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY to use the online registration to the will increase the access and usability 12 physical option. of the online service. It will also help 13

to tackle another challenge for online www.hope-mag.com “If we are to achieve our vision and registration, which is still low level of What the Business community says goal of being among the top performers computer literacy in the country. She in the world in as far as registration added that the trainings will even of companies and doing business in create a business opportunity for work with confidence in their respective general is concerned, online regis- cyber-café owners to either organize Christine Umurerwa the registration of companies online business activities and to contribute tration of companies is the way to go computer training or offer assistance also enables people to go back to www.hope-mag.com www.hope-mag.com to the country’s economic growth. because it is reliable and user-friendly in registering a business for a fee for who traveled from Rwamagana to their respective places of work and residence and do other activities. compared to physical registration those without a computer or internet. come and register her company which Jean Pierre Nduwimana which involves people travelling all deals in horticulture said: “I couldn’t the way to RDB headquarters in As for prospective business owners, believe that when people visit RDB to Gordon Munyankindi a resident of Niboye sector, order to register their companies,” especially those upcountry, Kanyonga register their respective companies, Kicukiro District said: “Currently there is Kanyonga said. Louise Kanyonga, Registrar General pointed that they have the advantage they are offered services in a swift a resident of Nyamata town in more flexibility in regards to company that they don’t have to travel to way and this is a sign that our country Bugesera District who also came to registration because even if you don’t She added that for people who travelling to RDB offices. According Kigali anymore to incorporate their really deserved the position it got in the RDB office to register his company have a enough time to wait until when currently need to register online, to Kanyonga, online registration of enter prise since they will be doing it 2014 World Bank Doing Report and which deals in selling eggs said: your company is registered, you are they can easily access RDB’s website companies started in 2012. Currently at their nearby cyber cafes or in the I am optimistic that we shall perform “Registering a company is very even allowed to pick the registration which has all information and an 30 percent of the Rwandan population comfort of their respec tive habitation. even better in the future.” important in as far as having a form and go with them at your office, online registration manual, noting register ing their businesses, do it through successful and strong business is fill them and then return them at your that easy access to the website is the online portal but her institution “The main advantage of online Umurerwa noted that despite the big concerned since it works as insurance time of convenience”. He called on paramount since it enables many has set a target of increasing this registration of companies is that it number of people she found at the RDB to my business company because RDB to encourage more people to people to regis ter their companies percentage to 52 by the 2015 saves time as well as increases the offices seeking to register companies, there will be no one who can take embrace the e-registration service conveniently, make inqui ries about World Bank Doing Business report number of companies registered in a she is contented with the manner they over the name of my company”. He saying that this is time saving and registration procedures and other survey phase. She said that in order specific period of time in addition to are currently helped through the process added that registering companies also cost effective since it is free e-services offered by RDB without to achieve this ambi tious goal, RDB enabling people to concentrate on of registration adding that carrying out enables the business community to of charge. PRESIDENTIAL MONTH Dear esteemed readers, on this spread we highlight in pictures some of the monthly activities that the President has undertaken in and outside the country, for your recap

1. On 17 July, President Kagame visited residents of Muhanga District, where he addressed them at Ndiza 2. On 21 July, President Kagame addressed youth from all over Africa; participating at the second youth dialogue organized by the Mandela Institute of Development Studies at Hotel des Milles Collines 3. On 18July, President Kagame delivered a Keynote address at the 50th Anniversary of Rwanda National Bank, which was marked by an international conference on financial inclusion 4. On 15 July 2014, President Kagame Met with a delegation of Chinese investors 5. On 14 July, President Kagame received President Teodoro Obiang Nguema of Equatorial Guinea with whom he held a joint press conference on July 15 6. On 14 July 2014, President Kagame hosted President Obiang Nguema Mbasogo to a State Banquet 7. On 12 July 2014, President Kagame addressed members of Rwandan cooperatives event as they marked the International Cooperatives Day 8. On 8 July 2014, President Kagame arrived in Ghana for the launch of Crucible of the Ages- Essays in Honour of Wole Soyinka at 80 9. On 8 July 2014, President Kagame attended the launch of Crucible of the Ages- Essays in Honour of Wole Soyinka as he turned 80 in Accra, Ghana 10. On 6 July 2014, President Kagame addressed women from the Rwanda Women Council who invited him to convey their gratitude to him and the army he led that liberated the country 11. On 4 July 2014, President Kagame led Rwandans and friends of Rwanda in celebrating the 20th Anniversary of the liberation of Rwanda DAVIS AND SHIRTLIFF CLEAN WATER SOLUTIONS FOR AFRICA

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lies the pumping systems, in order to from various sources for the country’s project codenamed SolarRwanda, which X The water supply system in the www.hope-mag.com avail this precious resource to millions peace keepers in Mali. enables institutions and individuals alike new Kigali Special Economic Zone in of peoples. Also, it is necessary to to purchase solar water heaters at addition to other projects done for ensure the water quality is suitable The system, which allows the Rwandan subsidized rates. Under SolarRwanda, the Rwandan government in various for the uses it is intended for and troops to treat and clean water till it people easily gain access to collateral where possible to have in place recycle is suitable for both drinking and other free and low interest credit to pay for institutions systems to reduce the demand on X Waste water treatment plants uses, came as a packaged solution to a the solar water heaters, payable over a Davis & Shirtliff Rwanda Team Mark the 10th anniversary in style www.hope-mag.com www.hope-mag.com fresh water - what is referred to as problem that was already counteracting two years period. SolarRwanda targets that are able to provide irrigation a green system. the peace keepers’ productivity. The to help locals lower their electricity water quality done in Umutara (UR) innovativeness that allows for customized bills by reducing the costs of warming and Mageregere, Remera, Gatenga, Dieudonné Mwiteneza, Jehovah Since 1946 when D&S “Though the growth seen in the past Kanyinya Health Centers. Witness Rwanda (one of D&S’s was established in few years is outstanding (D&S Rwanda oldest clients) neighboring Kenya, the CUSTOMERS APPRECIATE THE more than doubled its revenues in just company has played an SERVICES AND SOLUTIONS Ever since its establishment in Rwanda, this past one year), I challenge the team outstanding role in creating our office has worked closely with D&S, to take solutions to all Rwandans from solutions that allow for OFFERED a relationship that I can say has been different walks of life so as to grow our access to clean water family here even bigger.”According to in addition to solutions Joseph Mugisha, Engineer at Real nothing short of rewarding. For every Wanene, the growth strategy going forward in energy, waste water Contractors need that we have ever had, D&S will involve the company opening new treatment, among many always had a solution for us; from The first time I dealt with D&S was branches around the country with the others. In Rwanda, D&S solar water heaters, generators, water when I was still a student in Kenya. I has been serving the treatment units among many others. first two planned for next year. And like population now for ten was working on a class assignment for the company’s philosophy has always years and is committed my engineering course and a colleague One thing that I would like to request is been “the target forward going will be to continue solving human told me that Davis and Shirtliff was the that D&S should open up more branches innovating to provide professional solutions problems in the areas of place I could access what I needed around the country so as to ease access to daily challenges faced by Rwandans its expertise for many for the project. Upon arriving at one to its services for many institutions and in the water and energy sectors that are more decades ahead. branch, I was immediately led to its individuals outside the capital. key to the development of the economy.” Davis & Shirtliff Rwanda Team Congratulated for their Extra ordinary Efforts DAVIS AND SHIRTLIFF CLEAN WATER SOLUTIONS FOR AFRICA

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bathing water which hike operating manager who gave me all the support LOOKING FORWARD TO MORE costs of hospitality and are equally I needed. This kind of service, even FRUITFUL DECADES AHEAD Offering burdensome for many homes. Towards to a student that I was at the time, DAVIS & the same end of lowering energy surprised me. In the last ten years, the Rwandan subsidiary professional costs for individual families, D&S is has managed to establish itself and grow offering domestic water treatment Later on coming back home, I got a job until when it accounts for about 2 percent units for providing clean drinking with Real Contractors and found myself of the total group revenue. D&S Group water enabling people to reduce SHIRTLIFF solutions working with D&S. The same quality of is 68 years old and boasts operations in the energy costs originally incurred exceptionally service I received back seven African countries; Kenya, Zambia, in boiling it. then as a student in Kenya surprisingly Tanzania, Uganda, South Sudan, Rwanda, Ten years in Rwanda and counting “Our main intention is to offer affordable is the same I receive from the local and Ethiopia with a branch network of 38 quality solutions to communities, office now as a customer. D&S to me branches across. However, the potential David Gatende, The Group MD and Deputy CEO of Davis & Shirtliff at the 10th Anniversary Celebrations in Kigali individuals and institutions alike,” is best described by the professional of the Rwandan subsidiary as illustrated Joseph Wanene, the General Manager services they offer since anyone you talk by David Gatende, the Group’s Managing of D&S Rwanda said during a recent to at their office is always in position Director and Deputy CEO, remains partially celebration of the company’s ten to render you the support you need. utilized. very human has needs that ought SPEARHEADING INNOVATIONS solutions is what has seen D&S support years of existence in Rwanda. to be met every day. But like the communities to address their most pressing HOPE JULY 2014 ISSUE 42 adage goes “water is life” the In order to offer suitable solutions to challenges. Also, the company has in SOME ICONIC PROJECTS….. need to have access to clean challenges of many African societies, the past ten years played a key role E X Water supply system in Rwanda’s water is one of the overarching ones D&S being an African born and grown in supporting the Rwandan government that should be solved for people to live company, is constantly innovating to to deal with the energy inadequacy in tallest building, the Kigali City Tower comfortably. yield customized responses to specific the country. X The fountain at the main city problems. A case in review is the mobile roundabout, part of Kigali city’s To make water accessible, it requires HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY water treatment system that D&S Rwanda For instance, in partnership with Rwanda’s landmark, runs with pumps and filtration among others things setting up the right designed for Rwanda National Police, Energy Water and Sanitation Authority 16 infrastructures at the heart of which responding to the need for clean water (EWSA), D&S is part of the EWSA equipment from D&S 17 lies the pumping systems, in order to from various sources for the country’s project codenamed SolarRwanda, which X The water supply system in the www.hope-mag.com avail this precious resource to millions peace keepers in Mali. enables institutions and individuals alike new Kigali Special Economic Zone in of peoples. Also, it is necessary to to purchase solar water heaters at addition to other projects done for ensure the water quality is suitable The system, which allows the Rwandan subsidized rates. Under SolarRwanda, the Rwandan government in various for the uses it is intended for and troops to treat and clean water till it people easily gain access to collateral where possible to have in place recycle is suitable for both drinking and other free and low interest credit to pay for institutions systems to reduce the demand on X Waste water treatment plants uses, came as a packaged solution to a the solar water heaters, payable over a Davis & Shirtliff Rwanda Team Mark the 10th anniversary in style www.hope-mag.com www.hope-mag.com fresh water - what is referred to as problem that was already counteracting two years period. SolarRwanda targets that are able to provide irrigation a green system. the peace keepers’ productivity. The to help locals lower their electricity water quality done in Umutara (UR) innovativeness that allows for customized bills by reducing the costs of warming and Mageregere, Remera, Gatenga, Dieudonné Mwiteneza, Jehovah Since 1946 when D&S “Though the growth seen in the past Kanyinya Health Centers. Witness Rwanda (one of D&S’s was established in few years is outstanding (D&S Rwanda oldest clients) neighboring Kenya, the CUSTOMERS APPRECIATE THE more than doubled its revenues in just company has played an SERVICES AND SOLUTIONS Ever since its establishment in Rwanda, this past one year), I challenge the team outstanding role in creating our office has worked closely with D&S, to take solutions to all Rwandans from solutions that allow for OFFERED a relationship that I can say has been different walks of life so as to grow our access to clean water family here even bigger.”According to in addition to solutions Joseph Mugisha, Engineer at Real nothing short of rewarding. For every Wanene, the growth strategy going forward in energy, waste water Contractors need that we have ever had, D&S will involve the company opening new treatment, among many always had a solution for us; from The first time I dealt with D&S was branches around the country with the others. In Rwanda, D&S solar water heaters, generators, water when I was still a student in Kenya. I has been serving the treatment units among many others. first two planned for next year. And like population now for ten was working on a class assignment for the company’s philosophy has always years and is committed my engineering course and a colleague One thing that I would like to request is been “the target forward going will be to continue solving human told me that Davis and Shirtliff was the that D&S should open up more branches innovating to provide professional solutions problems in the areas of place I could access what I needed around the country so as to ease access to daily challenges faced by Rwandans its expertise for many for the project. Upon arriving at one to its services for many institutions and in the water and energy sectors that are more decades ahead. branch, I was immediately led to its individuals outside the capital. key to the development of the economy.” Davis & Shirtliff Rwanda Team Congratulated for their Extra ordinary Efforts DOING BUSINESS REFORMS

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developers to get construction permits. lines. She says currently for one to for one to get a construc tion permit Dealing with The move is undoubtedly seen as a only ac quire a construction permit saying that this will be imple mented significant de velopment for the country’s without other acces sories, it takes fewer through introducing accessibility to the business reforms espe cially in as far as days adding that her centre intends City of Kigali Master plan online which promoting the infrastructure develop ment to reduce this timeframe to between she said is very important as it will in the country is concerned. Rwanda 21 to 20 days in the nearby fu ture. enable most multi-national companies made dealing with construction permits streaming into Rwanda as well as the easier and less costly by reducing the “The underlying issue here as regards Rwandan population in general. The building permit fees, implementing an to offering constructing permits is launching of the Kigali Construction electronic platform for building permit that the process be fast, simple and Permit Management Information applications and streamlining procedures. reliable for to everyone who comes System, in May this year to which The acquisition of a construction permit to our centre since this is a key the Rwanda Development Board ISSUES REGARDING DEALING WITH is one of the World Bank benchmarks factor in infrastructure development (RDB) was a major stakeholder has CON STRUCTION HAVE BEEN MADE in ranking countries in its an nual doing and the economic development at significantly played a big role in easing business reports. large,” Mupende said. She noted that the procedure. SIMPLER AND EASY AS PROCEDURES although Rwanda has significantly According to the World Bank’s 2013 improved in the 2014 World Bank Speaking at the launch, the Mayor of WERE REDUCED FROM 13 TO 4. doing Business report, it used to take Doing Business report in terms of the City of Kigali, Fidele Ndayisaba said: HOPE JULY 2014 ISSUE 42 investors in Rwanda 164 days or over dealing with construction permits due The construction Permit Management five months to obtain a construction to several reforms which were put in Information System will not only help permit in and the country was that year place. There is still a need to improve to enhance service delivery in the ranked 98th out of 189 economies of adding that her institution is planning to City of Ki gali but also promote doing egarding dealing with construc- the world measured. However according merge various procedures concerning business and facilitate investors and tion permits, there are four new

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY to Lillian Mupende, the Coordinator of the getting a construction permit which other developers in their respective streamlined procedures which include: One-Stop Cen ter which offers construction include getting an occupation permit, activities.” Speaking at the same event 18 19 applying online for the building depending permits, it now takes not more than30 free hold title and au thorization to to launch the $1.1m worth project,

www.hope-mag.com www.hope-mag.com point which takes one day and the fourth a Management Information System (MIS) for through “Kigali, as a gateway to Rwanda, it procedure includes receiving a final inspec- processing construction permit applications relentless is important that we keep up with tion and obtaining an occupation permit and online. Since March, 2013, it has been efforts has the latest standards and we are freehold title which is done online in three days. mandatory for all to apply for construction ensured that fully committed to that,” said Prof. permits online. Lwakabamba. According to the Doing The application for freehold title has been the process ISSUING CONSTRUCTION PERMITS Business Unit at RDB, Rwanda’s efforts merged with application for occupancy permit SIMPLIFIED AFTER GOING ONLINE of acquiring in reforming this particular indicator are for developers who have successfully com- being inspired by the best in the world, Securing a construction permit is considered construction pleted construction and this has resulted in the most competitive economies with as one of the most celebrated steps for permits reducing time of acquir ing freehold title, from reforms that have had tangible results. everyone who wants to construct a building. becomes 104 days to less than 20 days, it has also In that line, Rwanda has chosen Hong Like anywhere else, dealing with con struction removed the cost for obtaining a freehold seamless and Kong, which is ranked first globally, permits has been a tough task for both the title from Rwf743, 200 to zero cost. The fee convenient. as the model to inspire all efforts was as a result of the initial requirement to government of Rwanda and its population. For instance, directed at im proving this indicator. However, with consistent investment in improving, pay ten year lease fees in order to acquire now the According to the 2013 DB report, a freehold title. There has been ease of the process has become easier following a document can it takes just six procedures and 67 information on development rights through historic achievement on May 20th this year, days for an investor to acquire his/her free access by public to the City Master Plan which saw the City of Kigali launch the online be requested construction permits in Hong Kong, online. The cost for obtaining a construc tion Con struction Permit Management System which online. the Rwandan government through the is aimed at making it faster and convenient for Online application for construction permits permit has also been reduced to a flat fee introduced to boost convenience One Stop Center has come up with DOING BUSINESS REFORMS

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R www.hope-mag.com permit, environmental impact assessment and on the size days for one to get a construction get a construction permit all into one the Minister of Infra structure, Prof connec tion to utilities (water electricity and of the project permit which includes various things like procedure, among others envisioned Silas Lwakabamba, pointed out that telephone) (20 days); Receiving a joint site and it varies The a free hold title, construction permit reforms. She added that they intend to the new technology is aimed at making inspection to process the above clearances (1 between Rwf20,000 and other accessories like telephone further streamline, and simplify procedures services available in a convenient and day); Receiving foundation inspection (building and Rwf60,000. The Kigali Government transparent manner. set out and exaction also inspected at this One Stop Center for construction introduced of Rwanda www.hope-mag.com www.hope-mag.com point which takes one day and the fourth a Management Information System (MIS) for through “Kigali, as a gateway to Rwanda, it procedure includes receiving a final inspec- processing construction permit applications relentless is important that we keep up with tion and obtaining an occupation permit and online. Since March, 2013, it has been efforts has the latest standards and we are freehold title which is done online in three days. mandatory for all to apply for construction ensured that fully committed to that,” said Prof. permits online. Lwakabamba. According to the Doing The application for freehold title has been the process ISSUING CONSTRUCTION PERMITS Business Unit at RDB, Rwanda’s efforts merged with application for occupancy permit SIMPLIFIED AFTER GOING ONLINE of acquiring in reforming this particular indicator are for developers who have successfully com- being inspired by the best in the world, Securing a construction permit is considered construction pleted construction and this has resulted in the most competitive economies with as one of the most celebrated steps for permits reducing time of acquir ing freehold title, from reforms that have had tangible results. everyone who wants to construct a building. becomes 104 days to less than 20 days, it has also In that line, Rwanda has chosen Hong Like anywhere else, dealing with con struction removed the cost for obtaining a freehold seamless and Kong, which is ranked first globally, permits has been a tough task for both the title from Rwf743, 200 to zero cost. The fee convenient. as the model to inspire all efforts was as a result of the initial requirement to government of Rwanda and its population. For instance, directed at im proving this indicator. However, with consistent investment in improving, pay ten year lease fees in order to acquire now the According to the 2013 DB report, a freehold title. There has been ease of the process has become easier following a document can it takes just six procedures and 67 information on development rights through historic achievement on May 20th this year, days for an investor to acquire his/her free access by public to the City Master Plan which saw the City of Kigali launch the online be requested construction permits in Hong Kong, online. The cost for obtaining a construc tion Con struction Permit Management System which online. the Rwandan government through the is aimed at making it faster and convenient for Online application for construction permits permit has also been reduced to a flat fee introduced to boost convenience One Stop Center has come up with DOING BUSINESS REFORMS

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we graduated to software, now we have different mechanisms and strategies www.kcps.gov.rw, Also, payment of they must submit beforehand. the fees for the construction permit a further more favoring initiative which is which will further ease the issuing This makes it easy for them to prepare since earlier this year can be done this online submission of applica tions.” Also of the construction permits in the their project designs & drawings through mobile money platforms Sheila Rwangezi, a property devel oper country. Also to catch up, it was allowing One Stop Center to review operated by Rwanda’s three telecoms. also hailed the online system saying that it paramount that Rwanda came up them in a timely manner. with a system which would not only was timely adding that she expects it will This was in efforts to further reduce reduce the costs but also time spent ease their operations and re duce costs. the time originally spent queuing Due to the reduction in time, con- on the long procedures in volved To further make the life of professional on banks to pay the fees. Upon struction permits are issued in 30days. in obtaining permits which are 12 architects and engineers easier, Mupende receiving approval for the construction All commercial entities are eligible according to the DB 2013 report. said that they merged all construction for applying and getting construction permit, a customer is notified and per mit services under one roof explaining permits through the One Stop Center can then effect the payment of the that the applicants for instance no longer MIS: SIMPLE, FAST AND irrespective of size, as well as non- respective fees depending on the need to go to EWSA to get the water RELIABLE commercial proj ects where the property size of their property through the and electricity connection or to REMA to Initially, investors seeking to obtain will be occupied by more than 100 mobile money platform of their choice, get the Environmental Im pact Assessment construction permits from the city people and is of more than one storey. after which the permit is sent to the certificate. au thorities had to do it manually, applicants email. HOPE JULY 2014 ISSUE 42 which took twelve procedures and a “We have brought everyone under the lot of pa perwork. This was obviously Lilian Mupende, the Director of Kigali Construction One-Stop center, gives explanations to a group of visitors. One Stop Centre and we project a signifi- challenging for in vestors, because it cant improvement in our doing business cost a lot of money and time spent performance as well as attracting more not only in getting all the papers investors in the country because dealing What this means is that if the applicant was achieved through the creation to make the application, but also in with construction permits has becomeeasier can provide all the needed documents of a single application form merging HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY following up on its progress. What the compared to the past,” Mupende said. after the first ten days, they can get application and inspection processes 20 developers of MIS did was to compress 21 all the procedures into their per mit in twenty days after the for the construction permit, water PRE-CONSULTATION MEETING an electronic form that second ten day review and electricity, and Environmental www.hope-mag.com on resubmission of the can be filled out on line The cost for obtaining Impact Assessment (EIA). Issuance of Before starting on the real permit application through a special page a construction permit ap plication. EIA and utilities connection is done process, investors are advised to seek has been reduced to a on KCC’s website. varying fee between at One Stop Center (OSC) at RDB consultation with the city authorities. This Karim Tushabe, the and EWSA designated EIA, water and is optional for small scale construction coordinator of the Doing According to Mupende, electricity experts who were given the undertakings but a must for large scale Business unit at RDB, www.hope-mag.com www.hope-mag.com the MIS has reduced full mandate to approve all dossiers. development (more than 1 ha) and/or 20,000 & strongly believes the new twelve steps to only five 400 users. At this stage, the investor’s 60,000 frw system is a tool that will pro cedures and compliant The work they have done is reflected in representative can submit by email his help improve Rwanda’s investors can expect to all the projects that OSC has concluded Fiche Cadastre, Deed Plan, or Plot Survey rank ings in the World obtain their permits within a maximum ever since they started implementing to the city authorities who will in turn do Bank’s Doing Business Indicators. of just thirty days. The application the reform on merged procedures. the following; “Obtaining construction permits is procedures have been categorized The cost for obtaining a construction Rwanda has made dealing with construction a very important indicator and we Check your plot against the zoning, in a ten-ten-ten basis which means permit has been reduced to a flat permits easier and less costly expect this online facility to improve slopes, wetlands, land use, transportation that on submission of the application fee depending on the size of the our World Bank rankings, enhance constraints for the first time, the investor can be project varying between Rwf20,000 our competi tiveness and hence attract Prepare a PDF map of your plot to show given feedback after just ten days. “If and Rwf60,000. Introduction of the more investors,” Tushabe observed. REMOVAL OF THE REQUIREMENT ARCHITECTS & ENGINEERS all requirements are met in the first Management Infor mation System (MIS) FOR A DEED PLAN COMMEND THE REFORM you the zoning, building constraints, for processing con struction permit ten days, then the permit would be RWANDA EASE OF DOING and developable area applications online. is sued,” Mupende says. The beauty BUSINESS REFORMS 2013-2014 Architects now use a standard Fred Rwihunda, the President of the Discuss options for development on of the ten-ten-ten ap proach is that checklist for the requirements for In stitute of Architects and Engineers your plot STATUS REPORT IN TERMS OF Since March, 2013, it has been mandatory an investor gets early guidance on the construction permit application. said: “In the engineering discipline, Explain all the submission DEALING WITH CONSTRUCTION for all to apply for construction permits what to correct if there are mistakes The checklist saves time and speeds we originally used a lot of paper requirements PERMITS online. All the information related to or missing requirements that need up the process since all the architects – sometimes you could use about Show you how to submit a CP Reduced procedures from12 to 6.This construction permits is available at to be up-dated. and engineers are aware of what 300 pages on a single map – but application on the MIS Website DOING BUSINESS REFORMS

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The monetary cost of getting electricity, according SPECIAL FEATURE SPECIAL the DB FEATURE report, puts Rwanda’s rate at $3,948.1 (percentage of the investors’ income per capita) compared to the The Deputy Director General of GETTING region’s average of $4,736.9. This shows Rwanda’s reforms EWSA, Robert Nyamvumba said: “We on getting electricity have produced above average results therefore have two officers posted compared to other countries in the Sub-Saharan Africa. at RDB and these guide investors seeking to obtain electricity through ELECTRICITY the process.” the seven year electricity plan (2011- For a prospective investor, what Nyamvumba explains that once ELECTRICITY CONNECTIVITY TIME 2017), the government of Rwanda has matters when it comes to electricity is an investor meets all registration undertaken different projects to achieve first that he can get connected fast and HAS BEEN REDUCED BY 50% FROM requirements with RDB, they are this objective. These projects include second that there is a reliable energy put in touch with the ESWSA desk 30 DAYS TO 15 DAYS FOR PROJECTS expansion of the transmission systems supply during production and with the at RDB to help them with water and OWNED BY COMPANIES AND with an additional 2100 km, generating current effective and efficient electricity electricity connection. The RDB-EWSA power from methane gas amounting to supply and connection; investors in the MAXIMUM 2 DAYS FOR PROJECTS attachés then take the investors to 300 MW as well as estimated 310 country will undoubtedly achieve their EWSA offices where they are led into OWNED BY INDIVIDUALS MW from geothermal energy which is prime goal of making more profits in the investment chamber of EWSA, a currently under exploration drilling for their respective business transactions. unit which was specifically established detailed studies and the development WB Doing Business 2013 report HOPE JULY 2014 ISSUE 42 tudy fees worth $9 for residential The Electricity Roll-out Programme is determined to continue to facilitate investors’ applications for of new Hydropower plants that will be indicated that an investor in Rwanda and $45 for medium and extending electricity to more households every year either water or electricity. capable of producing 232 MW of is subjected to four (04) procedures large industry and deposit fee electricity by 2017. while applying for electricity against of $23 have been removed ONLY 48 HOURS TO GET S is envisaged in its five-year economic sources of energy, which explains a sub Saharan Africa average of five and connectivity within 1 kilome ter of The government of Rwanda has currently CONNECTED plan, the Economic Development and government efforts to connect the (05) procedures. grid has been made free of charge. set its targets on producing 563 MW

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY Poverty Reduction Strategy (EDPRS) II. entire country on electricity. Notably, Currently one gets connected to electricity of electricity by 2017 from the current While the WB’s 2013 report says it he said that an individual currently pays When it comes to days spent in 24 within one day after application and the 110.8 MW. According to the Word takes thirty days to get connected to 25 Getting Electricity is also among the only Rwf56,000 to get connected processing the procedures, Rwandan costs and time expenses which have Bank’s 2013 Doing Business report, electricity, the latest information from 10 benchmarks used in the World to electricity which he/she pays in investors have to spend thirty days www.hope-mag.com reduced by more than 50%. The cost Rwanda’s economy is the 49th easiest EWSA indicates that in the meantime Bank Doing Business annual report installments throughout a period of (30) against a sub Saharan average of acquiring electricity from Energy place when it comes to ease of getting this delay has been greatly shortened and Rwanda has made significant one year. Nzeyimana noted that of 133 days, meaning that Rwanda is Water and Sanitation Authority (EWSA) electricity, one place better than its to just 48 hours or two days. “It of improvements in the area by reducing Energy Water and Sanitation Authority quite reformed in terms of time spent. has reduced to 18% from 20% of the 50th position in 2012. In the 2013 course depends on the location of the the cost of obtaining a new connection (EWSA), the institution responsible for total cost involved. rankings, Rwanda scored 76.7% from place and other site-related issues in the country. According to Elie the coordination of activities related The monetary cost of getting electricity, 73.8% scored in 2012 when World but where all these are favorable, www.hope-mag.com www.hope-mag.com Makeba Nzeyimana, a Monitoring to promoting and exploiting energy according the DB report, puts Rwanda’s ELECTRICITY SUPPLY AND Bank researchers made their findings, our team can connect a client in 48 and Evaluation Specialist with EARP, resources set up a One-Stop Centre rate at $3,948.1 (percentage of CONNECTION CONTRIBUTING moving up 2.9 points. hours,” clarifies Nyamvumba. TO THE NATIONAL ECONOMIC by September 2013, there were whose staff goes to rotates around the investors’ income per capita) 384,676 households connected to compared to the region’s average GROWTH the country helping people concerning The World Bank survey looks at how The cost of connection, too, has gone electricity countrywide. He said that of $4,736.9. This shows Rwanda’s the procedures through which they can easy or difficult it is for an investor down significantly compared to the For any country to achieve sustainable the year’s strategic plan was to at reforms on getting electricity have get connected to the national grid. in Rwanda to get electricity to their World Bank’s figures. It is heavily development and socio-economic least connect 180,000 households produced above average results premises. Under this, they also look at subsidized by the government, according growth, having electricity supply and in the country. compared to other countries in the Apart from having a One-Stop Center, how long it takes, how much it costs to Nyamvumba, revealing that a normal connectivity in a stable and reliable Sub-Saharan Africa. Nzeyimana said that his organization and how many processes are involved. connection applicant is required to pay manner has to be given priority. The “Electricity supply and connection has set up an industrial park in every only $100 with the balance of $900 government of Rwanda through its is very important in the country’s district responsible for helping citizens EWSA AND RDB PARTNERSHIP being paid by the government. The Electricity Roll-out Program (EARP) is not development because it comes with access to electricity easily. The The government of aim of this subsidy is to enable small lagging behind in as far as promoting multiple business opportunities for government through EWSA has set Rwanda has currently set The essence of a one-stop center for businesses (SMEs), whose proprietors electricity supply and connection across the general population and EARP is its targets on producing a target to have at least 70 percent the registration of new businesses, are financially weaker, to meet the cost. the country is concerned since this is determined to continue extending of the households in the country gain as established by RDB, is to bring one of the ways which will enable the electricity to more households every access to electricity by 2017 and this together all relevant entities into one Technically, even big investors enjoy government to achieve its ambitious year” Nzeyimana said. He said that will be achieved by working on several 563 MW place to reduce the number of offices the same arrangement unless they goal of helping the country to become using electricity at home is cheaper projects to increase the electricity a new investor had to visit, including have further onsite requirements that of electricity by 2017 from a middle-income nation by 2020 as it than using paraffin or the various other capacity on the national grid. With the current 110.8 MW. those offered by EWSA. are charged separately. DOING BUSINESS REFORMS

A new connection means EWSA procures While the addition of the 80 MW BUDGET ESTIMATION all necessary requirements, including a would result into a total of at least METHODOLOGY FOR CONNECTING prepaid meter where they now control 190 MW by June next year, this is BIG USERS their electricity consumption. However, still far from the 2017 target of 500 for big industries that consume a lot of MW but attaining the target will be The budget estimation for big customers electricity, it is often more convenient a move in the right direction.The shall be calculated by considering the to use the post-paid system, where Cabinet recently also approved the following; at the end of the months they are split of Energy Water and Sanitation X Cost of MV line extension charged for the quantity of electricity Authority (EWSA) into two companies X Cost of DT erection (including LV they have used. to manage energy and water resources network with Distribution Box and independent of each other, a move aimed protection system) NEW ELECTRICITY TARGETS at removing inefficiencies, according X to Prof. Silas Lwakamba, the Minister Cost of MV line erection is mainly While presenting his budget proposals of Infrastructure. dependent on distance from the existing for this fiscal year, Finance Minister MV line to the customer location. Claver Gatete announced that 80 The first body – the Energy Holding X Another important factor that can MW will be added to the national grid Company – will manage energy development affect the cost of MV line erection by June 2014 to boost the country’s and electricity distribution, while the is the type of poles, the selection of spinning reserve from the current 4 MW. Water and Sanitation Company will which is dependent on the terrain According to EWSA, the Minister’ manage water resources and distribution of the route through which the line announcement will be met with results both in the rural and urban areas. “It needs to be erected. To optimize the and that 80 MW will come from among was clear that EWSA needed reform. costs, generally wooden poles are others the following energy projects There was no proper planning. used especially in rural areas where HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY that are nearing completion: aesthetics are not the prime concern. Combining together water and energy 26 X However, depending on the terrain management left EWSA without a X 25 MW from methane in Kivu a small number of concrete poles and clear focus,” Lwakabamba said during X 14 MW from Kivu Nyabarongo steel poles may be used particularly briefing on late October this year. “So 1 project at the angular points where higher we thought that we needed to plan strength is required. X 15 MW of peat energy properly through developing a low X 8.5 MW of solar energy and others cost energy development strategy of X 18% VAT is included from other projects. up to 20 years, looking at how many X Pole cost shall be estimated considering www.hope-mag.com www.hope-mag.com resources we have and how we can that 70% of required length would If the targeted 80 MW can be obtained exploit them cheaply but efficiently,” be laid using wooden poles, 15% of by the end of June next year, Rwanda Lwakabamba added. The Director required length would be done using will be able to contain the pressure General of EWSA, Ntare Karitanyi, said Steel Poles and remaining 15% would from its rapidly growing economy that the move will help the country meet be done using Concrete Poles characterized by new factories and its electricity and water distribution X Civil Material cost for pole erection other power consuming ventures. targets. shall be considered 12% of total cost of materials for steel and concrete poles and 5% of total cost of materials for If the targeted 80 MW can be obtained by wooden poles. the end of June next year, Rwanda will be able X Civil Material cost for OHL erection on steel and concrete poles is considered to contain the pressure from its rapidly growing as 12% of total cost of materials economy characterized by new factories and other to be used and 5% of total cost of power consuming ventures. While the addition of the materials used for OHL erection on 80 MW would result into a total of at least 190 MW by wooden poles. June next year, this is still far from the 2017 target of X Cost of Service for any work is 500 MW but attaining the target will be a move considered as 18% of the Total Cost in the right direction. of Materials used. SPECIAL FEATURE

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to information, especially to financial REGISTERING institutions that are in the money-lending business. Applicants can now quickly verify the authenticity of the property owners through the land center, and PROPERTY at the same time cross – check the information with the mortgage registry IN TERMS OF REGISTERING PROPERTY, RDB TOGETHER at RDB to make sure the property has WITH OTHER GOVERN MENT ENTITIES HAS PUT IN PLACE not already been mortgaged. This can all be done simultaneously, saving time A NUMBER OF GOOD INITIATIVES WHICH ARE AIMED AT and money. Since the implementation of online registry on May 2nd, RDB has EASING REGISTER ING PROPERTY IN THE COUNTRY been able to register 124 mortgages and de-register 18. LAND REGISTRATION, A KEY FACTOR TOWARDS PROMOTING DOING BUSINESS IN RWANDA

In Rwanda like everywhere in the world, land considered is as one of the prime factors of production and for land to be effectively and efficiently utilized in order HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY to achieve its full potential, it requires 30 better management as well as putting in place good land polices and plans. Rwanda is not only on the right path towards becoming a regional ICT hub but A Land registrar at work it has also positioned herself to become one of the well-planned African countries in terms of infrastructures through putting n terms of registering property, Land notary offices have been set up in place good policies and plan that www.hope-mag.com www.hope-mag.com RDB together with other govern- at the Sector level to facilitate and promote of land registration countrywide. ment entities has put in place a streamline services hence reducing time Inumber of good initiatives which are for property registration. The requirement The 2014 World Bank Doing Business aimed at easing register ing property for a tax clearance certificate and the report ranked Rwanda in the 32 position in the country and has paid off as 24 associ ated Rwf5000 cost was removed. as one of the best countries which have districts have been connected to the promoted the ease of doing business Land Administration and Information The expertise (property valuation) document in the world which made the country to System (LAIS) of Rwanda Natural previously requested during property make a jump of 20 positions compared Resources Authority in order to ease transfer has been removed which has to the 2013 WB Doing Business report land title transfers. This will ultimately reduced the number of procedures and where Rwanda was in the 52 position. reduce the time and procedures in as this has led to a steady increase in the The report released early November this far registering prop erty is concerned number of applications whereby at least year ranked Rwanda Africa’s second in the country. 100 applications are pro cessed daily. highest ranking country after Mauritius The mortgage registration office has in easing doing business on the African All districts in Kigali have been connected been electronically connected to the continent taking this position from South to LAIS and land services have been National Land Center and National ID Africa. Registering Property is one of decentralized from the district to the Association. In addi tion, all commercial the 10 indicators which are indicated sector level and without doubt this banks now have user-accounts. As a in the Doing Business report every year will shorten procedures and time. result, this has created easy access by the World Bank. DOING BUSINESS REFORMS

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According to the 2014 report, Rwanda mortgage. “I congratulate our government that land registration has empowered to information, especially to financial made transferring property easier by through RNRA and other stakeholders Rwandans in general to begin venturing REGISTERING institutions that are in the money-lending eliminating the requirement to obtain a tax for having promoted land registration into various businesses as envisaged business. Applicants can now quickly clearance certificate and by implementing around the country and to issue land in the Vision 2020 and the Economic verify the authenticity of the property the web-based Land Administration titles to all land owners because this Development and Poverty Reduction owners through the land center, and Information System for processing land will enable us as beneficiaries of this Strategy (EDPRS). Nkurunziza pointed at the same time cross – check the PROPERTY transactions. The Director General of the program to do different investments out that in the previous years, majority information with the mortgage registry Rwanda National Resources Authority which will immensely contribute towards of Rwandans were unable to get loans IN TERMS OF REGISTERING PROPERTY, RDB TOGETHER at RDB to make sure the property has (RNRA) and Registrar of Land Titles, Dr the country’s GDP and its economic from commercial banks because they not already been mortgaged. This can WITH OTHER GOVERN MENT ENTITIES HAS PUT IN PLACE Emmanuel Nkurunziza, says that land growth in general,” Ndagijimana said. couldn’t present the unregistered land all be done simultaneously, saving time registration is a crucial component as He encouraged all Rwandans to register as collateral adding that commercial A NUMBER OF GOOD INITIATIVES WHICH ARE AIMED AT and money. Since the implementation regards to promoting Doing Business in their land saying that this will help banks have started consulting them, of online registry on May 2nd, RDB has the country as it gives land owners legal them to invest and develop themselves. meaning that some of the local Rwandans EASING REGISTER ING PROPERTY IN THE COUNTRY been able to register 124 mortgages certainty. “By issuing a land title, the Augustine Habiyambere, a resident of already issued with land titles are getting and de-register 18. state is guaranteeing the ownership of Rusororo sector, Gasabo District said bank loans to start or expand their LAND REGISTRATION, A KEY that land and therefore the owner can that Land registration is very important businesses.

FACTOR TOWARDS PROMOTING use it as security to obtain loans to do towards promoting the social welfare HOPE JULY 2014 ISSUE 42 DOING BUSINESS IN RWANDA The National Land Centre also acts as the only reference In Rwanda like everywhere in the world, for confirmation of The Director General of the Rwanda National the validity of the land considered is as one of the prime Since the implementation factors of production and for land to be Resources Authority (RNRA) and Registrar of Land Titles, of online registry on certificates, which Dr Emmanuel Nkurunziza, says that land registration May 2nd, RDB has been ensures that the effectively and efficiently utilized in order able to register 124 HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY to achieve its full potential, it requires is a crucial component as regards to promoting mortgages and banks don’t lose 30 de-register their monies. When 31 better management as well as putting Doing Business in the country as it gives land owners 18 asked whether those in place good land polices and plans. legal certainty. “By issuing a land title, the state is 124 www.hope-mag.com Rwanda is not only on the right path guaranteeing the ownership of that land and therefore Mortgages with land titles have towards becoming a regional ICT hub but the owner can use it as security to obtain loans to do started approaching A Land registrar at work it has also positioned herself to become their respective business transactions,” banks for loans, Nkurunziza noted that one of the well-planned African countries his centre intends to share database in terms of infrastructures through putting with commercial banks in the nearby n terms of registering property, Land notary offices have been set up in place good policies and plan that future. The Managing Director of Bank www.hope-mag.com www.hope-mag.com RDB together with other govern- at the Sector level to facilitate and promote of land registration countrywide. their respective business transactions,” of Rwanda’s citizens as since it avoids of Kigali, James Gatera, explains that the ment entities has put in place a streamline services hence reducing time Nkurunziza says. In the past, business family members’ conflicts and wrangles bank has started receiving applications Inumber of good initiatives which are for property registration. The requirement The 2014 World Bank Doing Business and land owners were largely operating over land due to the fact that now for loans with clients tendering in their aimed at easing register ing property for a tax clearance certificate and the report ranked Rwanda in the 32 position within a legal vacuum, unable to use their everyone is able to acquire his or her land titles as collateral. in the country and has paid off as 24 associ ated Rwf5000 cost was removed. as one of the best countries which have land assets as collateral to obtain loans land title. districts have been connected to the promoted the ease of doing business from financial institutions. The grant of “People are coming to us with land Land Administration and Information The expertise (property valuation) document in the world which made the country to legal titles would only take place at the Dr Nkurunziza adds that Land Administration titles so that they get loans for business System (LAIS) of Rwanda Natural previously requested during property make a jump of 20 positions compared end of the land development process Information System (LAIS) has been though we are advising them that they Resources Authority in order to ease transfer has been removed which has to the 2013 WB Doing Business report on the basis that land cannot be used introduced in a bid to move from an must manage their businesses well in land title transfers. This will ultimately reduced the number of procedures and where Rwanda was in the 52 position. as collateral until it is fully developed analogue to a digital method of dealing order to pay back and regain their land reduce the time and procedures in as this has led to a steady increase in the The report released early November this but this has now has changed. Amos with various land transactions especially titles,” he says. Dr. Nkurunziza said that far registering prop erty is concerned number of applications whereby at least year ranked Rwanda Africa’s second Ndagijimana, one of the first beneficiaries by creating a more efficient, cost effective, in terms of the national coverage,land in the country. 100 applications are pro cessed daily. highest ranking country after Mauritius of the recently launched electronic land quick and transparent land registration registration is almost complete as his The mortgage registration office has in easing doing business on the African title processing system (Land Administration processes.On the other hand, LAIS organization has so far collected data on All districts in Kigali have been connected been electronically connected to the continent taking this position from South Information System), said that with the serves as a digital Land Registry thus all the 10.3 million parcels countrywide to LAIS and land services have been National Land Center and National ID Africa. Registering Property is one of new arrangement, he can now easily reducing the issue of space needed saying that the land registration process decentralized from the district to the Association. In addi tion, all commercial the 10 indicators which are indicated access loans from the banks and other to keep physical land related files at is only still going on within the community sector level and without doubt this banks now have user-accounts. As a in the Doing Business report every year micro finance institutions to expand his the Office of the Registrar of Land settlements which were considered to will shorten procedures and time. result, this has created easy access by the World Bank. business through using his land title as a Titles. The Director General further says be owned by the government after SPECIAL FEATURE

recently revising the law on registration that the current registering property client. Between May 25 and June 30 of of land. According to Nkurunziza 8.7 fee is Rwf20,000 for in terms of land 2011, 57 clients were cleared while for million land titles have been prepared title transfer fee while the notarization July 2011, 37 have been worked on. by RNRA whereby 6 million of them fee is Rwf8,000 saying that they are have been issued to land owners as planning to reduce the cost in the future. “The system here guarantees faster service 2 million will be given out very soon. compared to when we were doing it at ONE-STOP CENTRE RRA,” says the officer at RRA desk. “It “In the 2013 World Bank Doing Business was taking long at RRA and I had given report our country was ranked in the A one-stop center at Nyarugenge has up until a friend of mine advised me to 62nd position worldwide in terms of been operational where investors access go to NLC for faster services,” said one registering property but in the recently a faster process of getting a title in only Florence Wihogora, who had come to released 2014 Doing Business report a matter of hours. The new reform has sort out some issues with her land title we are in the 8 position in the whole seen 41 clients receive long term leases, at the RNRA head offices. According to world and the first in Africa and this far higher than the number in the past. Dr Nkurunziza, the National Land Use means that we jumped 54 places within and Development Master Plan, the first a period of one year which is a very impressive performance for our country”, Dr Nkurunziza said. He noted that although the country performed well in terms of registering property in the 2014 WB Doing Business report, there is still a lot to improve saying that this will be possible through various strategies HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY for example, his institution intends to 32 increase the number of land notaries in the country saying that currently there is only one land notary in every district adding that they want to have a land notary at the sector level which will make registration of property more easier than ever before. He added that the period of registering property www.hope-mag.com www.hope-mag.com has been reduced from 30 days to One Stop Centres for construction permits have been created to help investors get all documents in one place and faster 12 days adding that within Kigali city,

It takes less than 5 days for someone The requirement to notarize the sale of its kind in Rwanda is of great national to register his or her property saying agreement has been made optional for all significance, as it is a fundamental tool that they are planning to ensure that commercial projects. The sales agreement in achieving environmental sustainability land registration to be done within 5 is signed at the National Land registry economic growth and development, and days countrywide by the next year and Registrar approves the contract or social cohesion. World Bank Doing Business report. the notarized one if the client opts for “According to my analysis registering that. This can also be done by District It is aimed at ensuring that there is an property increased access to credit and Land Officers. The requirement for tax optimal use of land in regard to harmony agricultural productivity in the country clearance certificate in property registration and coexistence among different land and these two elements are key in was abolished. But rather, the Rwanda owners and users. But it also makes it the national development agenda” Dr Revenue Authority (RRA) sent a delegate easy for investors to locate their businesses Nkurunziza said. He said that the law on staff at the National Land Center to check as it specifies what kind of investment is land registration was recently revised information on tax arrears on behalf of suitable for a particular area. The plan saying that this has enabled the registering clients. This is done as a back office also outlines other services like schools, property more flexible compared to operation by RRA and NLC and there is hospitals and this can be easily located the previous years. He pointed out no direct contact between RRA and the by the LIAS. DOING BUSINESS REFORMS

SPECIAL FEATURE

UNDERSTANDING THE NATIONAL City, District, Sector and Cell levels. government has to put in place sound LAND COMMISSION The main responsibilities of the National policies on how to regulate its use. Land Commission are to monitor the It’s this background that informed the implementation of land administration The National Land Commissions is establishment of RNRA. and land use management procedures established by the Presidential decree n° and guidelines. 54/01 of 2/10/2006 determining the By law, RNRA is an authority that leads structure, the Responsibilities, the functioning THE ROLE OF RWANDA NATIONAL the management of promotion of natural and the composition of land commissions. RESOURCES AUTHORITY (RNRA) resources which is composed of land, The National Land Commission water, forests, mines and geology. has competence all over the country, and For a densely populated country like is composed of the following: Rwanda, land is arguably the most It shall be entrusted with supervision, Seven (7) members, whose responsibilities important natural resource. Therefore, its monitoring and to ensure the implementation include land administration and land management can determine the course of issues relating to the promotion and use management: of development. Investors need land to protection of natural resources in programs Three (3) representatives of the public develop but because of its scarcity, the and activities of all national institutions. sector; Two (2) representatives of the civil HOPE JULY 2014 ISSUE 42 society from farmers’ associations; One representative of the private sector The main responsibilities of the National federation; Land Commission are to monitor the One representative of the Bankers implementation of land administration Association. There are also land Commissions and and land use management procedures land Committees at the level of Kigali and guidelines. 33 www.hope-mag.com PARTICULARLY, RNRA IS RESPONSIBLE FOR

X Implementing national policies, laws, X Providing technical advice on X Instituting regulations, guidelines strategies, regulations and government the proper use of natural resources; and appropriate mechanisms for resolutions in matters relating to the management, use and conservation X Making follow up and supervising promotion and protection of natural of natural resources and ensuring activities relating to proper management, resources; their implementation; promotion and valuation of natural X Making a follow up and implementing resources; X Establishing cooperation and international conventions Rwanda collaboration with other regional X Rehabilitating and conserving ratified on matters relating to the and international institutions with an where natural resources are damaged conservation of natural resources; aim of harmonizing the performance in the country; and relations on matters relating to X Advising the Government on X Making a follow up and supervising management of natural resources. appropriate mechanisms for conservation activities relating to the proper use of natural resources and investments Rwanda Natural Resources Authority is of natural resources; opportunities; established by the law Nr N°53/2010 X Promoting activities relating to OF 25/01/2011, which merges X Registering land, issuing and investment and added value in the the four institutions (National Land keeping land authentic deeds and activities of use and exploitation of Center, National Forestry Authority and any other information relating to natural resources in Rwanda; national Geology and mines authority) land of Rwanda; together with the Ministry of natural X Initiating research and study on X Ensuring proper geological data resources’ department of integrated natural resources and to publish and their respective maps; water resources management. the results; www.hope-mag.com

34 MAY-JUNE 2014 ISSUE 40 Special Feature www.hope-mag.com

34 MAY-JUNE 2014 ISSUE 40 35 SPECIAL FEATURE

GETTING

STATISTICS FROM RDB INDICATE THAT THE NUMBER OF INDIVIDUALS AND CORPORATE COMPANIES LISTED IN THE PRIVATE CREDIT BUREAU INCREASED FROM 1,119,918 IN JUNE 2013 TO 1,346,147 IN MAY 2014; THEREBY INCREASING THE COVERAGE FROM 17.2% TO 20.6% IN MAY 2014.

s regards to the public credit The 2014 World Bank Doing Business circu lation of credit information plays registry, the number of Report ranked Rwanda the second best a critical role in making banks and individu als and corporate place to do business in Africa after micro-finance institutions more confident companies listed in the Mauritius, and the 32nd worldwide. This when granting loans. Secondly, there is HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY A registry increased from 139,582 in impressive performance has been possible also a growing accessi bility of financial 36 June 2013 to 289,958 in May 2014 due to government-initiated business institutions, with currently 14 banks with thereby increasing the cov erage from reforms and strategies spearheaded over 400 branches and sub branches, 2.1% to 4.4%. by the Rwanda Development Board as well as 416 Umurenge Saccos across (RDB). the country. The tax procedure law article 51 has been amended removing tax debts In terms of the reforms “Currently the national priority in case of insolvency and regarding access to there is also a growing average coverage of accessi bility of financial harmonizing with the insolvency law credit, Rwanda was institutions, with currently 14 access to credit is www.hope-mag.com www.hope-mag.com where the secured cred itor is given ranked in the 13th banks with over 400 branches 5 kilo meters, which and sub priority over tax and Insolvency law was position worldwide in branches, as means that every also amended to include a provision the 2014 World Bank well as 416 Rwandan can now Umurenge providing for grounds for relief from stay. Doing Business Report. 416 reach a bank or any Saccos Rwanda managed to across the Umurenge micro-finance institution country. IMPROVED REGULATION AND achieve this position Saccos without trav elling very INSTITUTIONS MAKE ACCESS TO by establishing pol- far, and I believe this CREDIT SWIFTER icies that are aimed will enable our country at promoting access to credit in the to achieve sustainable development in For someone who plans start a busi- country as well as setting up institutions the nearby future” Bulindi says. ness or for any viable business to like the Business Development Fund grow, having enough capital is one of (BDF) which was established to support BDF itself also plays an important role, the prime factors. Although access to Small and Medium Enterprises (SMEs) since it addresses one of the major credit is still a major challenge affecting through credit guarantee, lines of credit, obstacles that in the past prevented the business sector across the world, matching grants and advisory services. especially small busi ness to gain access the Rwandan government has set up The Chief Executive Officer of BDF, to credit, which is the collateral they have various mechanisms and strategies Innocent Bulindi, also highlights other to provide as a guarantee for the loan. over the years to make it easier for factors that have contributed to Rwanda’s BDF mainly works with coopera tives and entrepreneurs to get loans. great progress. First of all, a wider associations who come up with viable BDF started it operations in 2011 and DOING BUSINESS REFORMS the institution has so far received close to SPECIAL FEATURE SPECIAL FEATURE Frw14 billion from the government and pro vided credit guarantees worth Frw19.1 business proj ects billion to 1440 businesses. In addition, it has negoti ations with the government especially in the disbursed grants worth Frw1.3 billion to 1800 to take up Business Development rural areas, and it businesses as well as providing financing Centers (BDCs) which are managed GETTING closely collaborates by the Rwanda Development with SACCOS loans to 13 SACCOs countrywide worth Board. Bulindi adds that BDF will which are often Frw1.1 billion, also carry out awareness cam- more accessible paigns around the country to make to the unbanked the popula tion aware of the available population. Bulindi says that BDF is well as providing financing loans to 13 financial opportunities put in place by STATISTICS FROM RDB INDICATE THAT THE also involved in the Hanga Umurimo SACCOs countrywide worth Frw1.1 the government through BDF. Among NUMBER OF INDIVIDUALS AND CORPORATE COMPANIES competition which rewards start-ups billion, in addition to investing around the challenges which Bulindi highlights countrywide. Frw430 million in 17 businesses. as affecting access to finance in the LISTED IN THE PRIVATE CREDIT BUREAU INCREASED FROM 1,119,918 “Although the government has made country are high collateral requirements IN JUNE 2013 TO 1,346,147 IN MAY 2014; THEREBY INCREASING This program was set up to address remarkable progress towards promoting by the banks, which he thinks could be key impediments to entrepreneurial access to credit in the country, the solved if financial institutions would THE COVERAGE FROM 17.2% TO 20.6% IN MAY 2014. develop ment which include lack of an cost of lending (interest rate) is still move from collateral lending to cash- very high and it’s in this regard that entrepreneurial culture, lack of basic flow lending. HOPE JULY 2014 ISSUE 42 business skills, lack of access to finance, BDF is now exploring opportunities of lack of a durable institutionalized minimizing that burden by providing “The government has put in place various s regards to the public credit The 2014 World Bank Doing Business circu lation of credit information plays support for new business ideas and grants especially in agriculture that mechanisms which can facilitate access registry, the number of Report ranked Rwanda the second best a critical role in making banks and lack of access to business development act as interest investment cost subsi- credit from banks and micro-finance individu als and corporate place to do business in Africa after micro-finance institutions more confident services. Based at the district level, dies,” Bulindi explains. institutions and people should make use companies listed in the Mauritius, and the 32nd worldwide. This when granting loans. Secondly, there is Hanga Umurimo targets individuals of these available advantages which will HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY A He notes that in a bid to boost access registry increased from 139,582 in impressive performance has been possible also a growing accessi bility of financial with the passion to identify and exploit enable them to develop their business 36 June 2013 to 289,958 in May 2014 due to government-initiated business institutions, with currently 14 banks with business opportunities. to credit across the country, BDF has ventures as well as contribute to the 37 reforms and strategies spearheaded over 400 branches and sub branches, signed agreements with 360 credit national social and economic growth,” thereby increasing the cov erage from www.hope-mag.com 2.1% to 4.4%. by the Rwanda Development Board as well as 416 Umurenge Saccos across BDF started it operations in 2011 and lenders – 13 banks, 7 micro-finance Bulindi remarks. He also thinks that there (RDB). the country. the institution has so far received close institutions and 340 Umurenge SACCOS. is still a need for the general public The tax procedure law article 51 has to Frw14 billion from the government This gives BDF a national coverage of to build trust in financial institutions been amended removing tax debts In terms of the reforms “Currently the national and pro vided credit guarantees worth about 90%, and according to the CEO and seek advice whenever they need priority in case of insolvency and regarding access to there is also a growing average coverage of Frw19.1 billion to 1440 businesses. In the priority this year is to decentralize the financial support. accessi bility of financial institution by opening 7 new branches harmonizing with the insolvency law credit, Rwanda was institutions, with currently 14 access to credit is addition, it has disbursed grants worth www.hope-mag.com www.hope-mag.com where the secured cred itor is given ranked in the 13th banks with over 400 branches 5 kilo meters, which Frw1.3 billion to 1800 businesses as in the western province. It is also in and sub CRB AFRICA priority over tax and Insolvency law was position worldwide in branches, as means that every also amended to include a provision the 2014 World Bank well as 416 Rwandan can now Other institutions too have con tributed to Umurenge providing for grounds for relief from stay. Doing Business Report. 416 reach a bank or any Saccos making the credit market more attractive, Rwanda managed to across the Umurenge micro-finance institution and one of the pivotal ones is the country. IMPROVED REGULATION AND achieve this position Saccos without trav elling very Credit Reference Bureau Africa, Rwanda INSTITUTIONS MAKE ACCESS TO by establishing pol- far, and I believe this Office, which was established in the CREDIT SWIFTER icies that are aimed will enable our country country in 2010 to collect loan and at promoting access to credit in the to achieve sustainable development in debt information from a multitude of For someone who plans start a busi- country as well as setting up institutions the nearby future” Bulindi says. institutions, and make the data available ness or for any viable business to like the Business Development Fund to financial institutions. grow, having enough capital is one of (BDF) which was established to support BDF itself also plays an important role, the prime factors. Although access to Small and Medium Enterprises (SMEs) since it addresses one of the major credit is still a major challenge affecting through credit guarantee, lines of credit, obstacles that in the past prevented BDF mainly works the business sector across the world, matching grants and advisory services. especially small busi ness to gain access with coopera tives and associations that come the Rwandan government has set up to credit, which is the collateral they have The Chief Executive Officer of BDF, up with viable business various mechanisms and strategies Innocent Bulindi, also highlights other to provide as a guarantee for the loan. proj ects especially in over the years to make it easier for factors that have contributed to Rwanda’s BDF mainly works with coopera tives and rural areas to ease access to credit entrepreneurs to get loans. great progress. First of all, a wider associations who come up with viable SPECIAL FEATURE

people who want to check the information the agency has on their credit status can request it free of charge.

The main advantage of an institution such as CRB Africa is that it helps to combat the scourge of non-performing loans (NPLs), which constitute a loss for financial institutions, since the collateral offered usually doesn’t cover the total amount of the loan or, worse, it might have been used UMURENGE SACCO one of the SACCOS which are often more accessible to the as a guarantee for multiple loans. unbanked population involved in Hanga Umurimo projects countrywide. As a result, if the ratio of NPLs is high, banks will factor in the cost by increasing their overall inter- CRB Rwanda Country Manager Aimable est rates. Nkuranga explains that before the Now that CRB is compiling institution’s establish ment, financial this information, the Thanks to the information compiled institutions used to ask the loan by CRB Africa, banks can now check process has been vastly applicants to bring loan clearance whether an applicant has other forms from other banks, which cost simplified. CRB gets its outstanding loans, and what his credit HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY time and money. Now that CRB is data from banks, micro- history looks like, thus significantly 38 compiling this information, the process finance institutions, reducing the risk of NPLs. Statistics has been vastly simplified. CRB gets Umurenge SACCOS, at BNR indicate that after the 1994 Genocide against the Tutsis, Rwanda’s its data from banks, micro-finance insurance companies, the institutions, Umurenge SACCOS, non-performing loans were above insurance companies, the Registrar Registrar of Companies at 70% with virtually no mechanisms of Companies at RDB, telecommu- RDB, telecommu nication in place to tame the situations. Ten nication companies, the National companies, the National years ago, NPLs had dropped to Identification Agency and Energy 40% while in December 2012

www.hope-mag.com www.hope-mag.com Identification Agency they were at 6.1% from 2011’s Water and Sanitary Authority. and Energy Water and 8.0%, better than the central bank “CRB Africa currently has close to 2 Sanitary Authority. bench mark of 7%. million credit accounts from different institutions, containing data collected That’s healthy through a computerized system,” although BNR target Nkuranga says, adding that the is 5%.However, it’s 2010 law on credit informa tion reckoned that lower sharing guides their data collection NPLs would result to activities. banks reducing their interest on loans as While CRB Africa gathers credit the bor rowers’ credit infor mation for free (banks and micro- worthiness improves. finance organizations are so-called “Between 2012 and ‘mandatory participants,’ while the 2013, the loan per- telecoms and EWSA provide data on formance rate fell from a voluntary basis), it charges a fee 8.5 percent to 6.1 when ever a financial organization percent and this is a requires data from it. However, great improvement DOING BUSINESS REFORMS

SPECIAL FEATURE

which shows that more people are This, accord ing to Nkuranga, would There are also 490 micro-finance able to acquire loans from banks and enable a bigger number of students institutions and 479 SACCOs. The micro finance institutions at reasonable to get government sponsorships at combined coverage and service of interest rates and this means that CRB the university level. all these financial firms has helped Africa plays a key role in as far as to increase financial penetration and this issue is concerned in Rwanda,” He also notes that a meeting has largely improved access to credit Nkuranga says. been held with the Supreme Court to Rwandans. The National Bank in requesting them to allow CRB Africa March last year started a month-long BENEFICIAL TO BORROWERS to include court data concerning campaign to encourage the public loans and insolvency. In 2012, to make use of credit reference ser- the combined loan book in Rwanda vices as one way of making access to But the financial sector is not the only increased by 27.8% boosted by a commercial loans faster and cheaper. ben eficiary; potential borrowers, too, growth in deposits by 15.2%. The gain from it. A clean credit record banks’ net profit grew by 19.7% The campaign which was carried would be a basis for an entrepreneur with assets also growing by 15.1%. out under the theme ‘Step Forward: to negotiate lower interests from banks, Though the banks’ capital adequacy I have a clean record. Do you? ’ and play on competition since they all ratio dropped from 25.0% in 2011 was aimed at promoting a culture HOPE JULY 2014 ISSUE 42 covet ‘good borrowers.’ This would to 23.9% in 2012; it’s still below the of good loan repayment that in turn in invariably increase the ease of radar of BNR’s regulatory requirement will make access to credit easier and accessing credit by borrowers with of 15% indicating that Rwanda’s loans cheaper to those will a clean a clean repayment record and on banking system has a clean bill of repay ment record. the other hand, credit refer ence will health. enable banks to sort loan defaulters from those who pay back well hence saving on the budget of loan recovery. 39

According to the reports of the National www.hope-mag.com Yet the CRB country manager recognizes Bank, Rwanda’s banking sector is on the right that there is still room to improve the data base. “One of our the major track with the sector’s total assets amounting to targets this year is to bring on board Frw 1943.32 billion by March 2013. 72% of Rwandans all segments of the business sector in are accessing some form of financial services the country, especially supermarkets, whereas the banking return on equity was 12.2% security companies and other general businesses by encour aging them to as of March 2013. start carrying out credit sales which will enable them to sell more products since they currently only dealing in RWANDA’S FINANCIAL INDUSTRY TODAY During a media briefing while cash sales,” Nkuranga explains, adding launching the campaign, that the agency has already carried According to the reports of the BNR vice-governor Monique out sensitization among supermarkets National Bank, Rwanda’s banking Nsanzabaganwa said that when and furniture shops. sector is on the right track with the calculat ing interest rates on loans, sector’s total assets amounting to Frw lenders factor in the risk of default CRB Africa also intends to go into 1943.32 billion by March 2013. by a particular borrower. students loans whereby they are 72% of Rwandans are accessing some working on a plan with the Rwanda form of financial services whereas The absence of credit information about Education Board (REB) in order to the banking return on equity was a borrower makes it difficult for banks include students loans whereby students 12.2% as of March 2013. There to make a proper risk assessment of a who benefited from a govern ment are 9 licensed commercial banks, particular person or business seeking scholarship will first have to pay back 1 development bank, 1 mortgage a loan, thus increasing the risk that the loans before they can apply for bank, 1 cooperative bank, 3 micro- the request will be refused or that a any other form of credit. finance banks and 1 discount house. high interest will be charged. WIDEN YOUR WORLD

SPECIAL FEATURE

While Alanya is well-known for its nightlife Best Airline in Europe in the last four years Discover Antalya and choice of entertainment facilities, Kemer, a small resort west of Antalya, makes its with Turkish Airlines visitors fall in love with its magnificent Turkish Airlines has been chosen “Best Airline in Southern Europe”. Maintaining surroundings and beautiful landscape. Airline in Europe”, “Best Airline in Southern the same momentum in 2010, Turkish Antalya keeps up with the innovations Europe” and awarded “Best Business Airlines continued to be the “Best Airline An earthly heaven indeed and developments in the tourism sector Class Onboard Catering”, “Best Business in Southern Europe” and “Best Catering while preserving its cultural heritage Class Lounge Dining” in 2014 Skytrax in Economy Class” with the inflight service and the charming Anatolian way of life. World Airline Awards. This year’s awards provided by Turkish DO & CO. The airline Everything relating to history, nature, were based on the results of over 18 also took 3rd place of the best airline million passenger surveys, with more than companies in Europe. In 2011, Turkish culture, tradition, shopping and dining 105 nationalities participating, covering Airlines was chosen as the winner of the exists in this region – combined with the 245 airlines. Turkish Airlines scored a 3 categories by Skytrax; “Best Airline in cordial hospitality of the Turkish people. resounding success at the 2014 Skytrax Europe”, “Best Premium Economy Seats” World Airline Awards, with air travellers for its Comfort Class seats and “Best Airline Once you have tasted the Antalya cuisine, voting the airline as the “Best Airline in in Southern Europe” at the 2011 World A stunning view the flavour of the spicy Piyaz or of the Europe”, the fourth year running. Airline Awards. Turkish Airlines scored of one of the City Suburbs many cold Mediterranean dishes with the same success at the 2012 Skytrax By adding ‘Flying Chef’ service for Business World Airline Awards, with its passengers olive oil will get stuck on you forever, HOPE JULY 2014 ISSUE 42 Class passengers on Antalya is the capital city of the Antalya Province, located on the Gulf of and no matter how hard you try to cook it at home there will always be a secret its all long-haul and Antalya on the Mediterranean coast of Turkey. The population of the city ingredient that you miss... the flavour some of short-haul is 603,190 (2000 census) but reaches up to 2 million in summers at the international flights, of the places or the flavour of the local Turkish Airlines was height of the tourist season. colour that people have learned to use equally named as the in their dishes. The city of Antalya seems winner in the category,

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY to have taken in all of Turkey’s cultural “Best Business Class and historic past so well preserved and 40 Catering”. The awards 41 ituated on a steep cliff, Antalya is with hot, dry summers and fairly warm sealed by the traditional archaeology also Turkey’s national

a picturesque city surrounded by and rainy winters, one of the reasons of the mosques, churches, madrasahs carrier recognized as www.hope-mag.com mountains, forests, Mediterranean why increasing numbers of tourists are and hamams which stood the ruthless “Best Business Class Lounge Dining” for Sea and many ancient ruins; with turning to Antalya not only as a summer A Luxury Resort test of time. S destination but also as a winter vacation Hotel in Belek its seamless catering one notable archaeological museum. With service that has been resort. Antalya has a backdrop of stunning The historical part of the city, Kaleiçi, is its Airport, it is a gateway for Turkey’s offered in its newest mountain scenery, and the city is set high also the tourist centre of Antalya: hotels coastal resorts which took the name addition to the guest on cliffs, with many of its grandest hotels and clubs, restaurants and bars are the comfort; its expanded

www.hope-mag.com www.hope-mag.com Turkish riviera because of the natural overlooking the sea on the outskirts of edifices that the modern tourist world has and historical beauties of it. and refurbished lounge the town. raised next to the Yivli Minare, a symbol at Ataturk Airport, of the restored historical city centre and “Turkish Airlines Lounge Istanbul”. voting the airline as the “Best Airline in Legend has it that, upon discovering The beach area of Lara, approximately to the Kesik Minare, a former Byzantine Europe” the second year running. It was this land, Aing Attalos II told his men 12 km to the east is home to the best Pangalia church, later converted into “Best Airline in Europe”, “Best Airline in also named by Skytrax as the winner in 3 categories, “Best Airline in Southern that “this must be Heaven”. Today, beach in the area, known for its golden a mosque. Despite Antalya’s growing Southern Europe”, “Best Business Class Europe” and “Best Premium Economy tourists who visit the city from all sand, which is rapidly becoming a resort popularity among tourists, the main Catering” and “Best Business Class Lounge Class Airline Seat” for its Comfort Class corners of the world say that only in its own right. To the west, the long transportation here is by air, although Dining” awards were presented to Turkish Airlines’ CEO, Temel Kotil Ph.D. by CEO seats. And in 2013, Turkish Airlines was pebble beach of Konyaaltı is also popular. sea and land routes have only recently after seeing a sunset at Antalya can of Skytrax, Edward Plaisted in Hampshire, chosen as the winner of the 3 categories one say they have seen everything a Heading up into the mountains, you can Downtown been taken into consideration. by Skytrax; “Best Airline in Europe” for Antalya Farnborough Airshow. The survey operated man is allowed to see in a lifetime. make the most of the beautiful scenery over a 10-month period, and more than the third consecutive time, by visiting the spectacular Düden or However, of late, the International Antalya 105 nationalities from over 160 countries Kurşunlu waterfalls. Airport has opened a new terminal to face “Best Airline in Southern Europe” the fifth Common in Antalya and adorning the around the world participated in the the hustle and bustle of the ever increasing survey. The awards mark a continued year running and was also named as the city, palm trees are a sign of the mild At Saklıkent, just 50 km away from the numbers of international tourists. The period of success for the airline which has winner in the category, “Best Business Mediterranean climate of the city. Hot city centre, you can even ski, where they whole urbanized Antalya transportation seen passenger numbers rise by 16.8% Class Catering”. Turkish Airlines continues to consolidate its position, continuously and dry during the summer and mild usually have snow on the slopes until system makes it easy for its tourists to so far in 2014 compared to the same expanding route network and innovative and rainy during the winter the city early April. There also are many holiday move from one place to another and period last year. This follows the airline being ranked as a 4-star airline in 2007 approaches that are constantly improved always gives the feeling of a warm resorts like Alanya, Belek, Kalkan, Kaş, visit all the sights they want, while still and joining Star Alliance in 2008. While by its huge family consisting of 40,000 home.Antalya is a tourism destination Kekova, Kemer, Olympos, Patara, and preserving their energy for the grand keeping its 4-star airline title again in employees. They all demonstrate its continued characterized by a Mediterranean climate Side within the borders of Antalya region. tour of restaurants and bars. 2008, Turkish Airlines was named “Best popularity amongst airline passengers. WIDEN YOUR WORLD

SPECIAL FEATURE

While Alanya is well-known for its nightlife Best Airline in Europe in the last four years and choice of entertainment facilities, Kemer, a small resort west of Antalya, makes its visitors fall in love with its magnificent Turkish Airlines has been chosen “Best Airline in Southern Europe”. Maintaining surroundings and beautiful landscape. Airline in Europe”, “Best Airline in Southern the same momentum in 2010, Turkish Antalya keeps up with the innovations Europe” and awarded “Best Business Airlines continued to be the “Best Airline and developments in the tourism sector Class Onboard Catering”, “Best Business in Southern Europe” and “Best Catering while preserving its cultural heritage Class Lounge Dining” in 2014 Skytrax in Economy Class” with the inflight service and the charming Anatolian way of life. World Airline Awards. This year’s awards provided by Turkish DO & CO. The airline Everything relating to history, nature, were based on the results of over 18 also took 3rd place of the best airline million passenger surveys, with more than companies in Europe. In 2011, Turkish culture, tradition, shopping and dining 105 nationalities participating, covering Airlines was chosen as the winner of the exists in this region – combined with the 245 airlines. Turkish Airlines scored a 3 categories by Skytrax; “Best Airline in cordial hospitality of the Turkish people. resounding success at the 2014 Skytrax Europe”, “Best Premium Economy Seats” World Airline Awards, with air travellers for its Comfort Class seats and “Best Airline Once you have tasted the Antalya cuisine, voting the airline as the “Best Airline in in Southern Europe” at the 2011 World the flavour of the spicy Piyaz or of the Europe”, the fourth year running. Airline Awards. Turkish Airlines scored many cold Mediterranean dishes with the same success at the 2012 Skytrax By adding ‘Flying Chef’ service for Business World Airline Awards, with its passengers olive oil will get stuck on you forever, HOPE JULY 2014 ISSUE 42 and no matter how hard you try to cook Class passengers on it at home there will always be a secret its all long-haul and ingredient that you miss... the flavour some of short-haul international flights, of the places or the flavour of the local Turkish Airlines was colour that people have learned to use equally named as the in their dishes. The city of Antalya seems winner in the category, to have taken in all of Turkey’s cultural “Best Business Class and historic past so well preserved and Catering”. The awards 41 sealed by the traditional archaeology also Turkey’s national

of the mosques, churches, madrasahs carrier recognized as www.hope-mag.com and hamams which stood the ruthless “Best Business Class test of time. Lounge Dining” for its seamless catering service that has been The historical part of the city, Kaleiçi, is offered in its newest also the tourist centre of Antalya: hotels addition to the guest and clubs, restaurants and bars are the comfort; its expanded edifices that the modern tourist world has and refurbished lounge raised next to the Yivli Minare, a symbol at Ataturk Airport, of the restored historical city centre and “Turkish Airlines Lounge Istanbul”. voting the airline as the “Best Airline in to the Kesik Minare, a former Byzantine Europe” the second year running. It was Pangalia church, later converted into “Best Airline in Europe”, “Best Airline in also named by Skytrax as the winner in 3 categories, “Best Airline in Southern a mosque. Despite Antalya’s growing Southern Europe”, “Best Business Class Europe” and “Best Premium Economy popularity among tourists, the main Catering” and “Best Business Class Lounge Class Airline Seat” for its Comfort Class transportation here is by air, although Dining” awards were presented to Turkish Airlines’ CEO, Temel Kotil Ph.D. by CEO seats. And in 2013, Turkish Airlines was sea and land routes have only recently of Skytrax, Edward Plaisted in Hampshire, chosen as the winner of the 3 categories been taken into consideration. Farnborough Airshow. The survey operated by Skytrax; “Best Airline in Europe” for over a 10-month period, and more than the third consecutive time, However, of late, the International Antalya 105 nationalities from over 160 countries Airport has opened a new terminal to face around the world participated in the “Best Airline in Southern Europe” the fifth the hustle and bustle of the ever increasing survey. The awards mark a continued year running and was also named as the numbers of international tourists. The period of success for the airline which has winner in the category, “Best Business whole urbanized Antalya transportation seen passenger numbers rise by 16.8% Class Catering”. Turkish Airlines continues to consolidate its position, continuously system makes it easy for its tourists to so far in 2014 compared to the same expanding route network and innovative move from one place to another and period last year. This follows the airline being ranked as a 4-star airline in 2007 approaches that are constantly improved visit all the sights they want, while still and joining Star Alliance in 2008. While by its huge family consisting of 40,000 preserving their energy for the grand keeping its 4-star airline title again in employees. They all demonstrate its continued tour of restaurants and bars. 2008, Turkish Airlines was named “Best popularity amongst airline passengers. SPECIAL FEATURE PROTECTING INVESTORS INVESTORS, ESPECIALLY MINORITY SHAREHOLDERS, HAVE BEEN GIVEN INCREASED PROTECTION BY GRANTING THEM RIGHTS TO REQUEST AND OBTAIN ANY DOCUMENT THAT MAY LEAD TO DISCOVERY OF INFORMATION DURING TRIAL.

he Company Law has been thus economic growth, which is key in addition, it allowed the magistrates to amended to provide for achieving the 11.5% GDP growth per acquire the necessary expertise. One administrative sanctions year neces sary to transform the country and a half month Five years later, Tincluding admin istrative fines to into a middle-income state by the year there is significant improvement in the directors who fail to declare any conflict 2020. Already over the past decade, way commercial wrangles are solved, of interest and the company law in its it sustained an average growth of 8%, according to Charles Kaliwabo, who articles 7 and 8 imposes an obligation resulting in a million people being lifted out was recently nominated the President on directors to immediately disclose of poverty. Since 2008, the government of the High Court. HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY interests in a transaction to the board of Rwanda prioritized doing business 42 and shareholders. Investors, especially reforms as a means to improve the “We are now at a very good state in minority shareholders, have been given investment climate and make Rwanda one terms of handling cases in commercial increased protection by granting them of the most preferred courts because the rights to request and obtain any document busi ness destinations. average period for that may lead to discovery of information a commercial case economic growth, during trial. The Rwanda Development which is key in achieving the to be completed Board (RDB) is the key 11.5% GDP growth per year is one and a half neces sary to transform the THANKS TO COMMERCIAL COURTS, government agency country into a middle-income month, according to www.hope-mag.com www.hope-mag.com ENFORCING CONTRACTS IS NO that is responsible for state by the year 2020. the 2013 report. LONGER A BATTLE coordinating this effort. This is something One of the 10 indicators we should be proud Rwanda’s focus on improving the business that has received a of because before climate is paying off. Rwanda’s overall 11.5% lot of atten tion in the establishment of position on the World Bank’s ranking recent years has been GDP by 2020 commercial courts in for Doing Business has improved from ‘Enforcing contracts,’ 2008, such cases 150th (out of 183) in 2008 to 52 in which is an essential used to take a long 2013. The country was also ranked as factor to convince any entrepreneur to time since they were handled by the the top improver for two consecutive invest in the country. local courts instead of commercial years and the country’s position in doing courts” Kaliwabo said. business was sig nificantly better than the In 2008, Commercial Courts were sub- Saharan average position of 140. established in a bid to ensure that business He noted that apart from a significant Rwanda has the best busi ness climate disputes could be dealt with swiftly – reduction in the duration of the trials, in East Africa and the fourth best in before, they were mixed up with civilian the quality of how such cases are being Africa after Mauritius, South Africa and and criminal cases before the ordinary handled and addressed by judges in Tunisia. The country’s business reforms courts, and it could take a long time for commercial courts has also been improved have responded to challenges which a judgment to be pronounced, which since they have gained experience ever have been hindering private enterprise, was disruptive for business continuity. In since the establishment of the courts. DOING BUSINESS REFORMS

SPECIAL FEATURE I advise people to In order to improve their prerequisite to Kigali. Kaliwabo said that his first use the available knowledge and skills, a third of all the institution’s mission is to continue mediation means like the commercial judges have completed a providing new skills and technical Kigali International Arbitration masters’ degrees in South Africa which know-how to commercial judges Center and the Access to Justice has enabled them to provide justice in a especially on laws concerning the Bureaus where they can be fair and timely manner in their respective integration processes and particularly advised on how to address duties in commercial courts around the on regional and international frame- country. Currently, there are 22 judges works, saying that this will enable their cases without spending in commercial courts of whom 7 are in Rwandan commercial judges to money and time in court,” the Commercial High Court whereas the be competent not only on the Kaliwabo said. 15 others are working in three lower national but also on the regional commercial courts. Kaliwabo said that and inter national level. they are planning this year to train the and helps them to get more profit from judges in various legal areas which include However, the High Court President also their respective business transactions, international contract law and consumer points out that today, there are other hence spurring economic growth. For the protection law, international intellectual ways of address ing contract disputes PSF chairman, having commercial courts

prop erty law and telecommunication law. that entail avoiding the cost and time in the country is a sign that investors’ HOPE JULY 2014 ISSUE 42 They will also be trained in regional and spent for a court case. “I advise people rights are being protected in the country. economic inte gration law. to first use the available mediation means He said that he is optimis tic that judges like the Kigali International Arbitration in commercial courts are competent “I am happy to say that nowadays it Center and the Access to Justice Bureaus to handle any commercial case, which take a short period of time for any where they can be advised on how to boosts busi ness in Rwanda and will have commercial case to be finished compared address their cases without spending a huge impact on the country’s eco nomic to 2008,” he said. “I want to assure money and time in court,” Kaliwabo said. growth in the future. investors that there is no problem in 43

investing in Rwanda because we will INVESTOR’S RIGHTS PROTECTED However, Gasamagera noted that some www.hope-mag.com ensure a continued fair and timely justice of the members of the private sector is provided to them whenever they face Benjamin Gasamagera, the Chairman of don’t know that commercial courts do any dispute in their business transactions the Private Sector Federation, agrees that exist and what they can do for them, since protecting investors is one of the the establishment of Commercial Courts saying that there is still a need for the key factors which will enable our nation consti tutes a major improvement for the commercial courts to go out and sensitize to achieve sustainable growth.” operations of private businesses. “As you the business community about how they know, the private sector in any country can be assisted in legal affairs which he He noted that currently there are three plays a critical role in the economic and said would improve how their knowledge commercial courts in the country: in Huye social development, and I do believe that on how to deal with commercial dis putes in Southern Province, in Musanze in the establishment of Commercial courts and cases. Northern Province, and in Nyarugenge in around the country has given us more Kigali. The Commercial High Court, too, is confidence and trust that any commercial “I thank RDB and the govern ment in based in Kigali. According to Kaliwabo, case or dispute will be handled in a general for the tremen dous work they commercial courts also organize radio professional manner and easily resolved are doing towards the promotion of the talk-shows through which they inform on time,” Gasamagera said. private sector socially and economically, the general public and especially the and we shall collaborate with the commer- business community on how they can He said that before the establishment cial courts to mobilize the investors address the challenges they face and how of com mercial courts, commercial cases and the business community at large their com mercial cases can be handled used to take many months as they were to always seek advice from commercial and solved. being handled by local courts which are courts whenever they have problems not specialized in commercial issues. With to be addressed,” Gasamagera said. He added the commercial High Court the specialized courts, on the other hand, “This will help them to work in a more has intro duced a video-conferencing cases are dealt with in a transparent conducive and friendly environment and system so that con cerned parties can manner which enables investors to operate to get more profits from their respective attend a case without having to travel in a more conducive business environment business activities.”

SPECIAL FEATURE PAYING TAXES INVESTORS, ESPECIALLY MINORITY SHAREHOLDERS HAVE BEEN GIVEN INCREASED PROTECTION BY GRANTING THEM RIGHTS TO REQUEST AND OBTAIN ANY DOCUMENT THAT MAY LEAD TO DISCOVERY OF INFORMATION DURING TRIAL

n as far as promotion of paying taxes countrywide is concerned, mobile declaration roll out and mobile payment Iof taxes facility program has been introduced for all small tax payers and this has made a major improvement in the declaration of taxes among small tax payers where tax declaration has risen to 70% compliance for small tax payers in HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY the country. 46 PAYING TAXES, A CRUCIAL ASPECT TO ACHIEVE SUSTAINABLE DEVELOPMENT

For any country to attain economic growth and sustainable development,

its government has to collect taxes. Rwanda Revenue Authority Headquarters www.hope-mag.com www.hope-mag.com Without them, it would not be able to build public infrastructure, provide utilities or services like health care. One of the for the 2014 Doing Business report, time at 314 hours. In addition, the main sources of taxes is the private sector three places better than the 25th total tax rate in Rwanda constitutes which, despite taxes being a burden to position in the previous report. This on average 29.9% of profits, which it, understands their neces sity. What is is a good rank that indicates how is nearly half of the regional 53.3%. important for entrepreneurs, though, is much efforts the government has put that the tax level is reasonable, and the in reforming the tax regimes in order While the World Bank in its 2012 procedures to declare and pay taxes as to make them more user-friendly. Doing Business report praised Rwanda simple as possible. That is why Paying for easing the process of paying Taxes Taxes is one of the ten Doing Business According to the World Bank, there by reducing the frequency of value indicators which the World Bank assesses, are 17 different taxes or mandatory added tax (VAT) filings by companies asking the ques tion: ‘how easy or difficult contri butions, which is significantly from monthly to quarterly, no new is it for inves tors to pay their taxes’? lower than the sub-Saharan average reforms were added on Rwanda’s PAYING TAXES IN RWANDA TODAY of 38, making Rwanda a place with account in its 2013 and 2014 DB less ‘tax stress’ for investors. And reports. Recent reforms will however The World Bank ranks Rwanda as the while entrepreneurs spend 113 hours be captured in the 2015 report which 22nd easiest place to pay taxes out of per year to clear taxes, the regional will make prob ably further improves the 189 economies that were evaluated average is more than double that Rwanda’s ranking. DOING BUSINESS REFORMS The use of EBMs is of great importance to the taxpayer, the consumer and the country. To the taxpayer, the system provides a tai lor-made ELECTRONIC BILLING MACHINES bookkeeping solution where once every sale FOR VAT detail is filed in the device, the data is recorded

In a bid to further improve efficiency on the system and imme diately communicated to and effectiveness in paying taxes, Rwanda Revenue Authority (RRA). Rwanda introduced legislation which helps businesses to keep their books properly and also improve tax compliance The EBMs also helps the taxpayer to In a recent Consumer Compliance Award through the use of Electronic Billing be a better tax complier and help in cer emony held at RRA headquarters, Machines (EBM). This device is comprised steering the country’s growth. The 50 con sumers were rewarded with Frw of two components, a Certified Invoicing EBMs promotes fair competition on 100,000 each for demanding an elec- System (CIS) and a Sales Data Controller the market. Where in the past some tronic receipt when purchasing goods (SDC). businesses evaded taxes hence earning or services. At the occa sion, the RRA illegal profits, the system will ensure Commissioner General, Ben Kagarama, said The EBM initiative is meant to help everyone earns his due and pays what that EBMs help traders to easily balance Rwanda Revenue Authority (RRA) belongs to the government hence promot- their books of accounts without hiring boast its domestic tax col lections and

ing fairness. It also reduces financial accountants which are quite expensive. HOPE JULY 2014 ISSUE 42 it targets all registered VAT tax payers embezzlement in businesses, corruption To RRA, the EBM not only ensure tax in the country and well as those in the and other malpractices business owners compliance but they also make the work informal business sector. The use of might suffer in their absence. As for of verifying tax declarations much easier EBM machine is prescribed in article 24 consumers, they will know exactly how because every transaction entered in of law n° 37/2012 of 09/11/2012 much they paid for goods or service an EBM is automatically registered in establishing the value-added tax which and taxes will be clearly justified. It’s the RRA system. states that ‘Value added tax registered there fore paramount for consumers to persons are obliged to use a certified insist on a receipt for whatever good 47 electronic billing machine that generates CERTIFIED DEVICES or service they pay for. invoices indicating the tax as agreed To ensure that taxpayers buy the right www.hope-mag.com by the tax administration.” All receipts produced have a special EBM devices, RRA has worked closely electronically generate signature which with the private sector and have already The use of EBMs is of great importance can be verified by RRA or the consumer. held trainings with members of the to the taxpayer, the consumer and the This again leads to transparency. To ICT chamber which has ICT equip- country. To the taxpayer, the system encourage this receipt-receiving practice ment suppliers, software develop ers provides a tailor-made bookkeeping solution among consumers, RRA introduced a and other traders who might want to where once every sale detail is filed in competition where citizens with the most supply the market, these are already the device, the data is recorded on the number of locally issued receipts get aware of the require ments and will system and imme diately communicated rewarded. If you demand a receipt it help taxpayers get along. to Rwanda Revenue means the seller will have Authority (RRA). to use the EBM and “We want to create a situation where the VAT tax, which we make it easy for the taxpayer and is compul sory this justifies all our investments in IT anyway, is innovations,” said Commissioner General deducted. Ben Kagarama on a recent event. RRA introduced EBM in February last year with a pilot phase that saw 800 machines distributed for free to selected businesses around Kigali. After the successful completion of that phase, all other VAT-registered taxpayers were (EBM) Electronic required to purchase a machine from Billing dealers approved by RRA. Machine SPECIAL FEATURE

In a bid to ensure that all concerned is highly based on the busi nesses comply with the use of tools at the field Electronic Billing Machines (EBM), staff’s dis posal for RRA has extended the deadline from these; define their December 31 to March 31. The extension efficiency and level of is meant to provide enough time for success. “Therefore, VAT-registered taxpayers to purchase the introduction of the machines and also give time to e-tax was mainly to those who would wish to apply for improve our own efficiency exemptions from the use of machines in collecting domestic taxes, to do so. After it has been proven this was the main objective,” to be more efficient and reliable in notes Bumbakare. collecting VAT during the pilot phase, Sales Data the tax body has increased awareness OTHER OBJECTIVES Controller through a campaign to emphasize the (SDC) facilitates INCLUDE: monitoring use of EBMs. sales activity in X Saving both RRA and a business. taxpayers’ time spent in the to the benefit of tax payers, ELECTRONIC TAX DECLARATION it wasn’t easy winning them AND CLEARANCE past in the process on moving to RRA offices to declare and over in the first few months. But the results are there for all to see: In November 2011, RRA launched what’s pay taxes. all large-taxpayers in the country are now one of its most innovative taxpayer X Time saved also resulted into saving paying taxes electronically. There are services, e-tax – the electronic declaration money formerly spent on transport over 330 firms such firms and they HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY and clear ance of taxes. “It wasn’t only related costs on movements between the contribute over 70% of all domestic tax 48 a trendsetting and turning point for us business premises and the RRA offices. revenues. Large taxpayers are those but also a defining development for X Improve service delivery especially with an annual turnover of over Frw our taxpayers,” says Pierre Celestin because most taxpayers are in the 1billion. Among medium-sized taxpayers, Bumbakare, RRA’s commissioner for habit of turning up to pay at the last only a tiny minority has not yet enrolled domestic taxes. minute which would increase queues for the e-tax payment. These are over 1400 in total and they include all VAT While it’s a taxpayer’s responsibility and overwhelm RRA staff. registered firms but turning over less to declare and pay taxes to Rwanda X Reduce paperwork and logistics www.hope-mag.com www.hope-mag.com than a billion francs. Revenue authority, it becomes an involved expensive and unyielding exercise on X Reduce on customer confrontation SINGLE ELECTRONIC WINDOW the side of RRA to ensure all taxpayers in cases involving missing documents meet this obligation in a situa tion The process of clearing goods either because e-filing has promoted better where tax management infrastructure into or out of Rwanda involves several record keeping is undeveloped. “We want to create offices/ departments whose requirements a situation where we make it easy for X On a whole, make tax payment less a trader must satisfactorily meet before the taxpayer and this justifies all our of a burden by reducing movements, they are given a green light. They investments in IT innovations,” said former time and costs hence leaving fewer include RRA, RDB, Magerwa, Banks, Commissioner General Ben Kagarama. reasons for tax evasion. Ministries, RBS and many others. At customs, taxpayers are benefiting Before the ESW regime, a customs’ X Finally, reduce on the cost of from Electronic Single Window (ESW) agent had to pay a visit to all these collecting tax on RRA’s side as staff while domestic taxpayers have e-tax stake holders where they would line formerly deployed to cover the fields services. According to Bumbakare, up in long queues with other traders can now be assigned to other roles. domestic taxes contribute between to meet an officer or two to view 60% and 70% of all government tax Fred Karara, the Project Manager of their papers en sign or stamp them revenues while the rest comes from the e-payment project at RRA, says that a process which would take days or customs. However, the ability for RRA to change is never instant and even when weeks depend ing on the work load. maximize its domestic revenue targets the introduc tion of e-tax was largely Joseph Mpunda, the head of division, DOING BUSINESSDOING BUSINESSREFORMS REFORMS

SPECIAL FEATURE SPECIAL FEATURESPECIAL FEATURE

In a bid to ensure that all concerned is highly based on the investmentinvestment implementation implementation at RDB atTHE RDB GOLD THE CARD GOLD SCHEME CARD SCHEME The introductionThe introduction of GCS will of significantly GCS will significantly busi nesses comply with the use of tools at the field whose officewhose handles office exemptions handles exemptions for for improve theimprove delivery the ofdelivery the customs of the customs Electronic Billing Machines (EBM), staff’s dis posal for certain traders,certain saystraders, in the says past in itthe pastThe itGold TheCard Gold Scheme Card (GCS) Scheme is a (GCS) new is aprograms new byprograms balancing by tradebalancing facilitation trade facilitation RRA has extended the deadline from these; define their would takewould a single take investor a single more investor than morefacil than ity thatfacil Rwanda ity that Revenue Rwanda AuthorityRevenue Authorityand control, and improve control, access improve by importersaccess by importers December 31 to March 31. The extension efficiency and level of a week toa get week cleared to get but cleared the ESW but the hasESW put in hasplace put to in facilitate place to trade.facilitate The trade. to The their goodsto their at goodstime of at importation time of importation is meant to provide enough time for success. “Therefore, has changedhas thischanged today. this “But today. today, “But I today,GCS Ifacility GCS will facilityreplace will the replace current the Blue current whileBlue enablingwhile customsenabling tocustoms effectively to effectively VAT-registered taxpayers to purchase the introduction of can receivecan an receive appli cation an appli anywhere cation anywhereChannel andChannel it will andprovide it will preferential provide preferential verify comverify pliance com without pliance impeding without impeding the machines and also give time to e-tax was mainly to and workingand on working it could on just it couldlast ten just lastrelease ten procedurerelease procedure to low-risk to importers. low-risk importers.the flow ofthe goods. flow of goods. those who would wish to apply for improve our own efficiency minutes andminutes the trader and theis served,” trader isnotes served,” Thenotes two releaseThe two options release are options Inland arerelease Inland release exemptions from the use of machines in collecting domestic taxes, Mpunda. UnderMpunda. ESW, Under every ESW, clearance every clearanceand border and release. border Withrelease. the WithInland the Inland“The Blue“The Channel Blue wasChannel an internal was an internal to do so. After it has been proven this was the main objective,” procedureprocedure is done electronically, is done electronically, on Release on option,Release goods option, can goods be cleared can be clearedsystem usedsystem by RRAused but by theRRA GCS but isthe GCS is to be more efficient and reliable in notes Bumbakare. the internet.the All internet. the stakeholders All the stakeholders have when have theywhen are stillthey loaded are still on loaded the truck on the truckfor everybody for everybody and all requirements and all requirements are are collecting VAT during the pilot phase, been mergedbeen into merged one form, into obtainable,one form, obtainable, and the wholeand theprocess whole takes process not takesmore not moreclearly knownclearly by knownthe importers,” by the importers,” said said Sales Data the tax body has increased awareness OTHER OBJECTIVES Controller filled, submittedfilled, submitted and responded and responded to than to three than hours three while hours under while the underBorder the BorderFred Seka,Fred the ChairmanSeka, the ofChairman the Rwanda of the Rwanda through a campaign to emphasize the (SDC) facilitates online. It’sonline. a single It’s electronic a single electronicwindow windowRelease option,Release goods option, are goods cleared are at cleared Freight at ForwardersFreight Forwarders Association. Association. “This “This INCLUDE: monitoring use of EBMs. sales activity in in which everyin which requirement every requirement for clear- for clearthe point- theof entry point into of entry the country. into the country.makes it moremakes transpar it moreent transpar and easyent inand easy in X Saving both RRA and a business.

facilitating facilitatingin trade. It’s in alwaystrade. It’simportant always importantHOPE JULY 2014 ISSUE 42 HOPE JULY 2014 ISSUE 42 to the benefit of tax payers, ance can ancebe handled. can be handled. taxpayers’ time spent in the Previously,Previously, all imported all goodsimported had goods to be had tofor be every forimporter every orimporter exporter or toexporter cut to cut ELECTRONIC TAX DECLARATION it wasn’t easy winning them past in the process on moving ESW will forESW instance will for enable instance MAGERWA enable MAGERWA cleared atcleared Magerwa at Magerwain Gikondo in and Gikondo this andcosts this and coststhis is and mainly this byis mainlysaving bytime saving time AND CLEARANCE over in the first few months. to RRA offices to declare and offi cials tooffi access cials to arrival access notice arrival of noticewould of causewould delays cause due delays to congestion due to congestion and with thisand scheme with this goods scheme will begoods going will be going But the results are there for all to see: In November 2011, RRA launched what’s pay taxes. goods andgoods verify and info verify on-line, info RDB on-line, there. RDB Currentthere. Blue Current Channel Blue companies Channel companies to the importer’sto the importer’s warehouse, warehouse, which which all large-taxpayers in the country are now one of its most innovative taxpayer and line ministriesand line ministries to receive to andreceive and means nomeans storage no costs storage or incurringcosts or incurring X Time saved also resulted into saving paying taxes electronically. There are services, e-tax – the electronic declaration authorize authorizeexemptions exemptions online; all online; the all the extra costsextra by thecosts transporter.” by the transporter.” money formerly spent on transport over 330 firms such firms and they HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY and clear ance of taxes. “It wasn’t only other concernedother concerned stake holders stake obtain holders obtain related costs on movements between the contribute over 70% of all domestic tax 48 a trendsetting and turning point for us their documentstheir documents and process and them process on- them on- The GCS willThe addressGCS will shortcomings address shortcomings in 49 in 49 business premises and the RRA offices. revenues. Large taxpayers are those but also a defining development for line savingline traders’ saving time traders’ and money.time and money. the currentthe Blue current Channel Blue Facility Channel with Facility with with an annual turnover of over Frw Firms Firms www.hope-mag.com www.hope-mag.com X Improve service delivery especially 330330 our taxpayers,” says Pierre Celestin respect to respectcompany to commitmentscompany commitments and it and it because most taxpayers are in the 1billion. Among medium-sized taxpayers, Bumbakare, RRA’s commissioner for THE BENEFITSTHE BENEFITS OF THE ESW OF THETO ESW TO with Overwith Over will also helpwill toalso formalize help to theformalize program the program habit of turning up to pay at the last only a tiny minority has not yet enrolled domestic taxes. TRADERSTRADERS INCLUDE: INCLUDE: for expeditedfor expedited release processing release processing for for for the e-tax payment. These are over minute which would increase queues low risk clientslow risk as clientswell as as increasing well as increasing and overwhelm RRA staff. 1400 in total and they include all VAT X ImportersX Importers of medical of equipment medical equipment Tax Tax While it’s a taxpayer’s responsibility 70% 70% importer importerrelease optionsrelease underoptions a under a registered firms but turning over less and otherand exempted other exempted facilities canfacilities can to declare and pay taxes to Rwanda X Reduce paperwork and logistics facilitatedfacilitated process. Theprocess. introduction The introduction www.hope-mag.com www.hope-mag.com than a billion francs. apply andapply receive and authorizationreceive authorization Revenue Revenue Revenue authority, it becomes an involved of GCS willof GCSbe an will important be an important move move operation operationlicenses, importalicenses, tion importa visa’s tion visa’s all large-taxpayersall large-taxpayers in the in the expensive and unyielding exercise on country arecountry paying are taxes paying taxes towards implementationtowards implementation of a regional of a regional X Reduce on customer confrontation SINGLE ELECTRONIC WINDOW and licensesand online. licenses online. the side of RRA to ensure all taxpayers electronically.electronically. There are over There are over AuthorizedAuthorized Economic OperatorEconomic Program.Operator Program. in cases involving missing documents 330 firms such330 firms andsuch they firms and they meet this obligation in a situa tion The process of clearing goods either X All importersX All importers have the haveaccess the access contribute contributeover 70% of over all 70% of all because e-filing has promoted better where tax management infrastructure into or out of Rwanda involves several to follow-upto follow-upon the progress on the progressof the of the domestic taxdomestic revenues. tax revenues. Seka addedSeka that added introducing that introducing GCS is GCS is record keeping is undeveloped. “We want to create offices/ departments whose requirements processes processesof their applications, of their applications, online online not goingnot to goingtake away to take importers’ away importers’ a situation where we make it easy for X On a whole, make tax payment less a trader must satisfactorily meet before which breedswhich transparency. breeds transparency. benefits; insteadbenefits; it insteadfacilitates it facilitatesthem to them to the taxpayer and this justifies all our they are given a green light. They do their work.do their He notedwork. Hethat noted the GCS, that the GCS, of a burden by reducing movements, X To clearX goods To clear transported goods transported by air, by air, investments in IT innovations,” said former include RRA, RDB, Magerwa, Banks, are requiredare to required apply for to theapply Gold for Cardthe Gold unlikeCard the unlikeBlue Channel, the Blue willChannel, be for will all be for all time and costs hence leaving fewer agents canagents submit can online submit pre-arrival online pre-arrival Commissioner General Ben Kagarama. Ministries, RBS and many others. Scheme andScheme sign andan MoUsign withan MoU RRA with importersRRA importers and the requirementsand the requirements are are reasons for tax evasion. cargo manifestcargo tomanifest relevant to offices,relevant offices, At customs, taxpayers are benefiting Before the ESW regime, a customs’ to retain totheir retain preferred their preferred status; they status; verythey clearvery to everybody clear to everybody adding that adding it that it X Finally, reduce on the cost of online exchangeonline ofexchange cargo details, of cargo auto details,- auto- from Electronic Single Window (ESW) agent had to pay a visit to all these will be givenwill abe period given ofa periodthree months of three monthswill also makewill also clearing make of clearing goods veryof goods very collecting tax on RRA’s side as staff matic validationmatic validationand process and control. process control. while domestic taxpayers have e-tax stake holders where they would line from the frominitiation the initiationof the application of the application fast. He fast.added He that added GCS thatfacilitates GCS facilitates formerly deployed to cover the fields services. According to Bumbakare, up in long queues with other traders X Banks canX Banksprocess can on-line process payments on-line paymentsprocess toprocess submit to their submit applications. their applications. importers importersor exporters or exportersin cutting incosts cutting costs can now be assigned to other roles. domestic taxes contribute between to meet an officer or two to view of taxes onof behalftaxes onof behalfclients ofon-line, clients on-line,Those companiesThose companies that failure that to failureapply to applyas well asas saving well astime saving as Goods time asare Goods are 60% and 70% of all government tax Fred Karara, the Project Manager of their papers en sign or stamp them validation valiof receiptdation ofin receiptESW, issuance in ESW, issuancefor GCS willfor riskGCS being will risk removed being removedfrom nowfrom goingnow straight going to straight the importer’s to the importer’s revenues while the rest comes from the e-payment project at RRA, says that a process which would take days or of electronicof electronic receipts receiptsas well asas wellthe as scheme the and scheme being and returned being toreturned the towarehouse the warehouse and this means and this no meansstorage no storage customs. However, the ability for RRA to change is never instant and even when weeks depend ing on the work load. electron icallyelectron notifying ically importersnotifying importersof normal of verificationnormal verification process that process takes that takescosts or incurringcosts or extraincurring costs extra by thecosts by the maximize its domestic revenue targets the introduc tion of e-tax was largely Joseph Mpunda, the head of division, the results/the transactions. results/ transactions. a lot of time.a lot of time. transporter.transporter.

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TRADING enforce compliance with the customs law. An electronic cargo clearance system is also set to replace the manual ACROSS BORDERS system at the Mombasa port. The system is expected to be deployed by the beginning of November. It will help cut clearance time from ten to three days. The new system will save the economy Sh 21.5 billion ($250 million) annually from delays, inefficiencies and corruption. A study by the World Bank The National bond warehouse have already set up their offices at the Mombasa port ready to commence operations. estimates that such delays cost shippers between $10,000 and $12,000 per day in demurrage fees, increasing the cost to the taxpayers.

Cargo shall be secured from Mombasa the final destination of goods retain HOPE JULY 2014 ISSUE 42 to the des tination country through a control over the assessment of taxes. developed information exchange and The establishment of a Single Customs BENEFITS OF A SINGLE CUSTOMS TRADING ACROSS BORDERS WAS GIVEN A MAJOR BOOST IN 2014 AS A SINGLE cargo track ing system. Territory is one of the pillars of the TERRITORY EAC integration process. Numerous CUSTOMS TERRITORY IN EAST AFRICAN COMMUNITY WAS IMPLEMENTED IN MARCH X A Single Customs Territory in the All imports to Rwanda and Uganda studies, negoti ations and research have EAC region would provide benefits 2014 BY THE THREE HEADS OF STATE OF RWANDA, UGANDA AND through the port of Mombasa been carried out and all

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY such as fewer internal border controls shall be declared using pre- key stakeholders including KENYA, STARTING WITH THE NORTHERN CORRIDOR . annually. According to the 2014 World and use of Rules of Origin, making it 52 arrival and self-assessment An electronic cargo Customs and Revenue 53 Bank’s Doing Business report, Rwanda clearance system unnecessary to test locally pro duced declarations and duties, is expected to

authorities, representatives www.hope-mag.com is com mended for narrowing the frontier goods for compliance with origin con- a stamp before proceeding to RDB whereas taxes shall be paid be deployed by of private sector, and others his has currently led to the dec- in trading across borders since 2005, the beginning of ferring criteria. offices to apply for exemp tions. The and collected in the country November. It will help have been involved in laration of 1,451 consignments, having overseen reforms covering up file would then be sent to RRA attaché of destination, thus elimi- cut clearance time the process to make the X There would also be no requirement 140 companies have benefited to 30% of issue areas, reaching the from ten to three days. and then to RDB. Once approved, the nating transit guarantee on The new system will Single Customs Territory a for strict bond controls and no need from the reforms and this has 162nd position. The Heads of state in T save the economy clearing agent would go back to process goods. Rwanda Revenue reality. The EAC Director to track consign ments to ports of reduced time of trading among the EAC Uganda, and Kenya launched a single Sh 21.5 billion ($250 countries from 26 days to 6 days. customs declaration but this has been Authority and its partners million) annually from General of Customs and destination. This allows for faster www.hope-mag.com www.hope-mag.com customs territory in late October last addressed through the intro duction of Rwanda Freight Forwarders delays, inefficiencies Trade Peter Kiguta said: movement of goods and ultimately, a year in Kigali, which will enable those and corruption. the Electronic single window. Association and Magerwa, “Transformation of the lower cost of doing business. The single customs territory has also in the East African busi ness community the national bond warehouse EAC into a Single Customs reduced the impor tation cost per TRADING ACROSS BORDERS, engaging in cross-border trade to now X A Single Customs Territory will have already set up their Territory is what was container to $3,208 from $4,990. The STRENGTHENING REGIONAL enjoy a smooth trade flow of goods also lead to the reduction of non-tariff offices at the Mombasa required to spur liberalized Electronic Single Window was introduced INTEGRATION FINANCIALLY and services. sh barriers. Cargo moving along the port ready to commence 21.5 trade as goods would in on 1st February 2012 and made northern corridor will be weighed once operations. circulate freely through operational and currently there over Trading across borders plays a signifi- A Single Customs Territory is an arrange- Billion and the weighbridge certificate issued the Territory.” 800 clearing agents using the electronic cant role in the economic growth and ment where two or more Customs terri- Saved will be recognized along the corridor. Under the Single Customs single window, over 3 Government insti- regional integration in the five East tories merge to form one Customs ter- Territory arrangement, the He also said that a Single X Weighbridges along the northern tutions and 7 airlines and as a result African member states, as it does in any ritory. South Sudan’s Salva Kiir joined EAC member states will adopt a desti- Customs Territory was a solution to corridor have been reduced to just of this, e-exemptions processing for part of the world. For integration and Uganda’s Yoweri Museveni, Kenya’s nation model of clearance of goods where internal controls that were affecting free two: Mariakani in Kenya and Busitema investors has reduced the time it takes growth to take place diligently stringent Uhuru Kenyatta and host Paul Kagame assessment and collection of revenue is circulation of goods in the region and in Uganda. to get an exemption to 10minutes from measures and strategies must be put in at the Infrastructure Summit in Kigali, to be done at the first point of entry. hindering the region from receiving the around 6hours it used to take before place that can enable EAC traders and where the request of South Sudan to X Non-tariff barriers, such as roadblocks, The Single Customs Territory allows full benefits of the customs union. The because of several procedures. Through the population at large to highly utilize join the East Africa Community was also will be eliminated as the electronic free circulation of goods in the single launch of a Single Customs Territory is a manual process, clearing agencies the business opportuni ties in the region. discussed. The customs territory will cargo track ing systems are adopted, market with variations to accommodate the first step towards the establishment would fill a form and compute taxes to Trading across borders is one of the facilitate the movement of goods and limiting human intervention. goods exported from one partner state of a proposed regional customs authority be exempted. Following that, they would ten indicators of the Doing Business services from Kenya’s port of Mombasa to another. Customs administrators at that will have a stronger mandate to X Tax clearance procedures will be go to the Importers premises to have Report carried out by the World Bank to Uganda, Rwanda, and South Sudan. 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done under one roof rather than X With the implementation of the from Mombasa would take less than scattered, thus saving taxpayers’ time Single Customs Territory, cargo trucks’ five days simply by reduced border will enable the East African region to and money. Importers have incurred travel time from Mombasa port to controls and collection of customs compete with other top tourist desti- an extra charge between USD $25 Kigali will be greatly reduced. duties at the first point of entry. nations globally. “The introduction and and $40 in fines on every container launching of a single tourist visa among X Cargo transportation time from X It will also lead to reduction in that spends more than nine days at EAC member states will help tourists the port to Kigali would fall from 21 tax evasion and increase in revenue the warehouse. to have multiple choices in terms of to 8 days, while shipments to Uganda collections. getting value for their money through seeing more in just one trip within the PRESIDENTS’ REMARKS ABOUT THE SINGLE CUSTOM TERRITORY three EAC countries” Rwigamba said. Apart from launching the single tourist PRESIDENT PAUL KAGAME PRESIDENT MUSEVENI visa, President Uhuru Kenyatta of Kenya, President Paul Kagame of Rwanda and President Kagame said that it is not time to celebrate President Museveni said the integration process is about their host, Yoweri Museveni of Uganda, achievements yet, because there is still a long way uniting efforts of East Africans to guarantee their sovereignty. also launched the use of national Identity to go for East Africans to get to where they want He said Ugandans were grateful for the SCT, which addresses Cards, student cards and voter’s cards to be. “We have had productive discussions in the their struggle to become prosperous. “The question is: HOPE JULY 2014 ISSUE 42 by the citizens to travel across the previous two Summits, one in Kampala and the how did other conti nents develop? What are the stimuli other in Mombasa. The single customs territory that were applied to those economies to grow? I am very par ticipating countries. This will further Single Tourist Visas Introduced on January 1st, makes the three EAC countries a is an important milestone that will boost doing boost free movement of people and grateful to their Excellencies the Presidents who are here single tourist destination. business between our countries and contribute to for the launch of a new effort in that struggle of how to goods in the region as there will no growth of our economies. make our continent prosperous. The things that can make longer be need to spend money on our economies prosperous are well known, but Africans other schemes like pensions and insurance the progress of each country towards buying passports for travelling within HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY We feel satisfaction with the progress that has have been very slow. One is market, security, and human will be boosted among the EAC member the Monetary Union Protocol. Among the three EAC member states. been made already but we still have a lot to do resource develop ment which is what we are doing here.” 54 states. “A one-currency regime will the key indicators that the member 55 to get where we want to be and we look forward Each single tourist visa costs USD

greatly benefit countries that have countries must harmonize are inflation www.hope-mag.com to working together to ensure that these projects PRESIDENT SALVA KIRR weaker currencies and costs of doing rates, the tax to GDP ratio, debt to $100, charged by the issuing country. come to fruition as soon as possible with benefits The issuing country will take $40 while to our people.” President Kagame said. President Salva Kirr said Rwanda has been an inspiration business in East Africa will be reduced,” GDP ratio, and fiscal deficits. the others will each take $30. Laia for his country and the world as it makes great efforts to Maluda said. PRESIDENT UHURU KENYATTA overcome its past to build a better future for its people. SINGLE TOURIST VISA Sole Amat, a tourist from Barcelona, “We are moving towards the betterment of the lives of Under the EAC monetary arrangement, Spain, who received a dummy visa President Uhuru Kenyatta said Kenya was committed our people and we are honored to be part of these four institutions will be put in place to Heads of State of Rwanda, Uganda, from President Kagame said that the www.hope-mag.com www.hope-mag.com to continuing the integra tion process and ensuring efforts as observers; and we hope that soon we will be help fast-track the Monetary Union: the and Kenya officially launched the Single single tourist visa is a great opportunity its success: “We look forward to November when a fully-fledged member of the East African Community.” East African Monetary Institute; the East East Africa Tourist Visa on 20th for many people from the west and we break ground for a railway line that will connect President Kirr said that his country had decided to waive African Statistics Bureau; the East African February in Kampala this year. This in other parts of the world. us to Kampala, Kigali and Juba. We will make it visa application requirements for Rwandans, and that Surveillance, Compliance and Enforcement completed one of the key integration possible for our people to do business without henceforth, Rwanda passport holders and other East Commission; and the East African Financial projects jointly undertaken by the Stephen Asiimwe, the Chief Executive government being an impediment and this summit African nationals would be obtaining visas at entry points Services Commission. The Commissions three partner states over the last Officer of Uganda Tourism Board (UTB), gives the impetus to help create jobs.” to South Sudan. will meet after three years to evaluate nine months. During the occasion, the said global tourism trends have showed Presidents gave out three dummy that travelers are more interested EAC MONETARY UNION Tourist Visas to three tourists from in a more holistic travel experience. Spain, Canada, and United Kingdom. “The single tourist visa is a sign of The Presidents of the five EAC member partner states last year in November signed the East African Community Monetary continued efforts and cooperation Introduced on January 1st, the tourist Union Protocol, pledging to create one central bank in the region and one cur rency. Policies that shape the way states among the respective tourism boards visa makes the three EAC countries operate will be formulated by this new EAC bank. After the signing of the EAC Monetary Union, Rwanda’s Minister for and will continue to grow as we launch a single tourist destination. The then East African community, Jacqueline Muhongayire, said the signing will, among other things, improve regional trade. “The the joint marketing platform,” he said. head of tourism department at the signing of this protocol which will be implemented in a period of five to ten years will reduce the cost of doing business With all these tremendous programs Rwanda Development Board (RDB), in the region, commodities will have similar prices, and it will promote trade in the regional bloc,” Muhongayire said. put in place to foster EAC integration, Rica Rwigamba, said during the The ratification of the monetary union, the third pillar of integration, is set for July 2014 to pave way for the use of a especially in terms of trade, there is preliminary stages of introducing the common currency. Dickson Maluda, a senior economist and researcher at the Institute of Policy Analysis and Research no doubt that in few years the EAC single tourist visa that the undertaking agrees that with East African countries having a single currency and similar financial systems, trade will be eased and will be a regional finan cial hub. DOING BUSINESS REFORMS

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will enable the East African region to compete with other top tourist destinations globally. “The introduction and launching of a single tourist visa among EAC member states will help tourists to have multiple choices in terms of getting value for their money through seeing more in just one trip within the three EAC countries” Rwigamba said.

Apart from launching the single tourist visa, President Uhuru Kenyatta of Kenya, President Paul Kagame of Rwanda and their host, Yoweri Museveni of Uganda, also launched the use of national Identity Cards, student cards and voter’s cards HOPE JULY 2014 ISSUE 42 by the citizens to travel across the par ticipating countries. This will further Single Tourist Visas Introduced on January 1st, makes the three EAC countries a boost free movement of people and single tourist destination. goods in the region as there will no longer be need to spend money on other schemes like pensions and insurance the progress of each country towards buying passports for travelling within will be boosted among the EAC member the Monetary Union Protocol. Among the three EAC member states. states. “A one-currency regime will the key indicators that the member 55 Each single tourist visa costs USD

greatly benefit countries that have countries must harmonize are inflation www.hope-mag.com weaker currencies and costs of doing rates, the tax to GDP ratio, debt to $100, charged by the issuing country. business in East Africa will be reduced,” GDP ratio, and fiscal deficits. The issuing country will take $40 while Maluda said. the others will each take $30. Laia SINGLE TOURIST VISA Sole Amat, a tourist from Barcelona, Under the EAC monetary arrangement, Spain, who received a dummy visa four institutions will be put in place to Heads of State of Rwanda, Uganda, from President Kagame said that the help fast-track the Monetary Union: the and Kenya officially launched the Single single tourist visa is a great opportunity East African Monetary Institute; the East East Africa Tourist Visa on 20th for many people from the west and African Statistics Bureau; the East African February in Kampala this year. This in other parts of the world. Surveillance, Compliance and Enforcement completed one of the key integration Commission; and the East African Financial projects jointly undertaken by the Stephen Asiimwe, the Chief Executive Services Commission. The Commissions three partner states over the last Officer of Uganda Tourism Board (UTB), will meet after three years to evaluate nine months. During the occasion, the said global tourism trends have showed Presidents gave out three dummy that travelers are more interested Tourist Visas to three tourists from in a more holistic travel experience. Spain, Canada, and United Kingdom. “The single tourist visa is a sign of continued efforts and cooperation Introduced on January 1st, the tourist among the respective tourism boards visa makes the three EAC countries and will continue to grow as we launch a single tourist destination. The then the joint marketing platform,” he said. head of tourism department at the With all these tremendous programs Rwanda Development Board (RDB), put in place to foster EAC integration, Rica Rwigamba, said during the especially in terms of trade, there is preliminary stages of introducing the no doubt that in few years the EAC single tourist visa that the undertaking will be a regional finan cial hub.

SPECIAL FEATURE ENFORCING CONTRACTS MAJOR TRENDS HAVE ALSO BEEN REGISTERED IN ENFORCING CONTRACTS AS DAYS FOR ENFORCING CONTRACTS HAVE BEEN REDUCED TO 73 DAYS ON AVERAGE INCLUDING 14 DAYS OF FILING/ SERVICE AND 59 DAYS FOR TRIAL AND JUDGMENT COMPARED TO THE 230 DAYS THE WHOLE PROCESS USED TO TAKE. INTO A MIDDLE-INCOME STATE BY THE YEAR 2020. ENFORCING CONTRACTS MADE EASY WITH ARBITRATION AND the institution and the company to COMMERCIAL COURTS easily solve any possible dispute about the implementation of the contract. “If a contract between an he country’s business reforms institution and a certain company address the challenges which conforms with the law by clearly have been hampering private showing all the necessary clauses enterprise, thus economic and articles which are needed in

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY T the contract, its implementation growth, which is key in achieving the becomes easier and in case a 58 11.5% GDP growth which is key in transforming the country Already over problem arises between the two the past decade, there was an average parties, addressing it also becomes growth of 8%, resulting in a million people simple since everybody can easily being lifted out of poverty. Since 2008, understand where he/she breached the government of Rwanda has prioritized the contract” Bumbakare said. reforms of the business environment as a means to improve the investment He noted that MINIJUST in collaboration climate and make Rwanda one of the with the Rwanda Governance Board www.hope-mag.com www.hope-mag.com most preferred business destinations. (RGB) and Rwanda Public Procurement Participants in commercial mediation skills leading to Authority (RPPA) are working on a CEDR accredited mediators at Lemigo Hotel, June 2013 The Rwanda Development Board (RDB) contract model covering all sectors is the key government agency that is (construction, energy, …) which will responsible for coordinating this effort. have to followed. The ministry also always be careful and to involve their Enforcing contracts is one of the 10 offers training to legal officers from public legal officers because this will prevent indicators that the annual World Bank institutions in order to ensure that they both parties from making mistakes which Doing Business Report uses to measure that have the prerequisite information and skills can lead them into contractual conflicts,” ease of doing business, and RDB together on matters concerning preparation and Bumbakare said. He also noted that the with the Ministry of Justice (MINIJUST), management of contracts, which will play a ministry has made a network of legal have put in place stringent mechanisms key role in the promoting of enforcement professionals from the public and private aimed at making the preparation and of contracts in the country. Bumbakare sectors saying that this will ensure smooth management of contracts to become added that MINIJUST is also planning to sharing of information and expertise in easier and more streamlined. Pierre train employees from both public and terms of enforcing contracts. According to Celestin Bumbakare, the Head of Legal private organizations on how to deal with Bumbakare, although the country is on the Services in MINIJUST, said that before issues regarding enforcement of contracts right track in terms of enforcing contracts, public institutions sign a contract with any and to give them the basic skills and there is still a challenge of people who company, they have to first send of their knowledge as regards to preparation and have to handle very technical contracts contract proposal to the ministry in order management of contracts. “I encourage which require a lot of legal expertise like to analyze the laws and clauses related the heads of institutions if they are going in the energy and construction sectors. He to the contract, which he said helps both to sign contracts with any company to observed that this requires professional DOING BUSINESS REFORMS

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people who understand it from the legal addressed by judges in commercial courts attend a case without having to travel to point of view and that MINIJUST and other has also been improved since they have Kigali. He also said that his institution’s stakeholders are working around the clock gained experience. In order to improve mission is to continue providing new skills to ensure that the legal professionals in their prerequisite knowledge and skills, a and technical know- how to commercial the country are trained on how to deal third of all commercial court judges have judges especially on laws concerning the with such legal issues in these sectors. completed a masters’ degrees in South integration processes and particularly on Africa which has enabled them to provide regional and international frameworks, saying He added that majority of conflicts concerning justice in a fair and timely manner. He noted that this will enable Rwandan commercial contracts are related to those which were that there are 22 judges in commercial judges to be competent not only on the signed among many years ago when courts of whom 7 are in the Commercial national but also on the regional and issues with regard to enforcing contracts High Court whereas the 15 others are international level. had not been streamlined it has been working in three lower commercial courts. done nowadays. “If people sign contracts Kaliwabo said that they are planning ARBITRATION which cannot be well-enforced, this can this year to train the judges in various undoubtedly have a negative impact on legal areas which include international Yet going to court is never a pleasant the business environment in the contract law and consumer protection option, which is why the Kigali International country because this can affect law, international intellectual property Arbitration Centre (KIAC) was established

the cash flow of businesspeople,” law and telecommunications law. They will in 2012. Its Secretary General Bernadette HOPE JULY 2014 ISSUE 42 Bumbakare said. also be trained in regional and economic Uwicyeza said that the center is of great integration law. “I am happy to say that important towards enforcing contracts as COMMERCIAL COURTS nowadays it take a short period of time it offers arbitration services in commercial for any commercial case to be finished disputes which she said will help in resolving Commercial courts were set compared to 2008,” he said. “I want to conflicts among businesspeople without up in 2008 and last year, the assure investors that there is no problem spending a lot of time and money in court. president of the High in investing in Rwanda Court Charles Kaliwabo “We want to be a center of reference in 59 said that this was done Judges in because we the region in terms of providing arbitration

in a bid to ensure that Commercial will ensure www.hope-mag.com Courts services to both the private and public business disputes could 22 continued sectors, and the main goal of putting in be dealt with swiftly Judges in fair and place KIAC was having an institution which – before, they were Commercial timely justice can provide legal assistance and guidance mixed up with civilian 07 High Courts is provided to the business community in the country and criminal cases Judges in Lower to them on how to address commercial disputes before the ordinary Commercial whenever without going to the commercial courts since courts, and it could Courts they face its costly and time consuming compared take a long time for a 15 any dispute in to arbitration,” Uwicyeza said. judgment to be pronounced, which their business was disruptive for business continuity. In transactions since protecting investors is She noted that her center is now educating addition, it allowed the magistrates to one of the key factors which will enable the business community to always give priority acquire the necessary expertise. our nation to achieve sustainable growth.” to issues concerning contract management and dealing with arbitration issues in their “We are now at a very good level in There are three commercial courts in the respective business transactions saying terms of handling cases in commercial country: in Huye in Southern Province, that this will ultimately reduce cases of courts because the average period for a in Musanze in Northern Province, and in commercial disputes in the country. She commercial case to be completed is one Nyarugenge in Kigali. The Commercial High said that KIAC officials held meetings and a half month, according to the 2013 Court, too, is based in Kigali. According with all professional associations from report. This is something we should be to Kaliwabo, commercial courts also the Private Sector Federation (PSF) to proud of because before the establishment organize radio talkshows through which explain to them how to deal with arbitration of commercial courts in 2008, such cases they inform the general public and the issues in their companies, adding that her used to take a long time since they were business community on how they can address institution also trained legal practitioners handled by the local courts instead of the challenges they face and how their who include lawyers, judges and people commercial ones,” Kaliwabo said. He noted commercial cases can be handled and from various sectors such as mining, that apart from a significant reduction in solved. He added the commercial High energy, manufacturing, construction and the duration of the trials, the quality of Court has introduced a video-conferencing accountancy on arbitration.300 people how such cases are being handled and system so that concerned parties can are undergoing a six-month training course SPECIAL FEATURE

on arbitration which started in January INVESTORS’ RIGHTS for them, saying that there is still a need this year. “Arbitration is an international PROTECTED for the commercial courts to go out market, and as we continue practicing The Chairman of the Private Sector and sensitize the business community it at the center Rwanda will become a Federation, Benjamin Gasamagera, said: about how they can be assisted in legal reference in arbitration in the region, thus “Lack of different ways to solve commercial affairs which he said would improve attracting more investors to come and disputes can hinder the development of the how their knowledge on how to deal invest in the country which will boost our business community in any country, and with commercial disputes and cases. economic growth,” Uwicyeza said. She therefore I commend our government and “I thank RDB and the government in noted that her center will carry out a other stakeholders for having set up KIAC general for the tremendous work they nationwide arbitration week in July during because it will help members of the business are doing in promoting the private sector which businesspeople can present their community to resolve commercial disputes socially and economically, and we shall cases to be arbitrated for free, which will among themselves without going to the collaborate with the commercial courts also help those who have been trained in courts.” He also said that he believes that to mobilize the business community to arbitration to practice and to introduce the establishment of commercial courts has seek advice from them whenever they themselves to the business community. given the private sector more confidence have problems,” Gasamagera said. and trust that any “This will help them to work in a more KIAC will also organize an commercial case or conducive and friendly environment international conference dispute will be handled and to get more profits from their from May 25 to 27 in a professional manner business activities.” where participants will and within reasonable discuss emerging issues 250 delays. According to INVESTORS’ VIEWS in international arbitration. Gasamagera, before The SG added they are Professionals the establishment of Bonaventure Niyitegeka, the owner also working with public and KIAC has so far trained 250 these courts, commercial of Virunga Express Company, one of private organizations to professionals from both cases could drag on the major transport companies in the HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY encourage them to include a public and private sector who are eligible to work as for months as they country, said that having both commercial 60 dispute arbitration clause in arbitrators were being handled courts and KIAC will play a key role in their employees’ contracts. by local courts which attracting more foreign investment in According to Uwicyeza, are not specialized. In the country. “Having commercial courts the issue of enforcing contracts begins the commercial courts, cases are dealt with and KIAC as a center which offers with contract negotiation, preparation in a transparent manner which contributes arbitration services to the business and contract management, and in this to a conducive business environment and community is of great importance to us regard KIAC is now putting to emphasis on helps investors to get more profit from businesspeople because this will help training different professionals from both their business transactions, hence spurring disputes be handled swiftly and in the the private and public sector on how to www.hope-mag.com www.hope-mag.com economic growth. shortest period of time,” Niyitegeka said. prepare good contracts with arbitration clauses because this will have a positive He pointed out that having commercial He added that the establishment of KIAC impact on avoiding disputes. courts in the country clearly underlines the and commercial courts will promote the fact that rights of investor are being well country’s economic growth and the She says that her institution is also carrying protected in the country, and that they will realization of a middle-income state by out awareness campaigns at the international continue to boost business transactions the year 2020 as it’s envisaged in the level to make people around the world to in Rwanda and will have a huge impact government’s Vision 2020. Niyitegeka know KIAC’s existence and what it offers in on the country’s economic growth in the called on members of the business terms of arbitration and dispute resolutions. future. However, Gasamagera noted community to make good use of KIAC KIAC has so far trained 250 professionals that some of the members of the private by seeking for their advice before going from both public and private sector who are sector don’t know that commercial to court in case of disputes because eligible to work as arbitrators in the country courts do exist and what they can do the latter is time-consuming and costly. saying that they will continue train more people. According to the SG, one of the challenges still facing the promotion of arbitration in the I thank RDB and the government in general for the country is that all stakeholders don’t have a common understanding towards arbitration tremendous work they are doing in promoting the private practices saying that her center is laying sector socially and economically, and we shall collaborate strategies which will help all parties involved with the commercial courts to mobilize the business to have a common view and understanding about them. community to seek advice from them whenever they have problems...

SERVING TO GROW GROWING TO SERVE

SPECIAL FEATURE SPECIAL FEATURE

both the Rwandans and all those residing This will be creating capacity at the and doing business in Rwanda. We believe processing level which will trickle down Promises traders in offering customers exclusive service with to the farmer. CRANE BANK customer intimacy. Our brand speaks right exclusive financial to you and invites you to meet a brighter Nonetheless, Crane Bank’s services services tomorrow by opening an account with Crane portfolio will cover all banking services OPENS IN RWANDA Bank Rwanda” she affirmed. from Personal Banking, SME Banking, Corporate/Business Banking, International Besides the branch which is located in Money Transfers, VISA services, Government Kigali city centre’s La Bonne Address to Bank (G2B) services, and Internet building, Crane Bank plans to open yet Banking for both Personal and Corporate another branch soon in the city’s central clients, to mention but a few. district of Nyarugenge while plans of expansion to reach customers across Dr. Sudhir Ruparelia the Deputy Chairman The bank’s attraction to Rwanda is and largest shareholder of the Rupaleria the country are ongoing. She adds that Group, which owns Crane Bank attributed to the country’s economic the Bank is interested in identifying and performance and ease of doing business. contributing to Rwanda’s development “We appreciate the overwhelming support journey by establishing a banking platform received from our regulator – the National HOPE JULY 2014 ISSUE 42 convenient banking. “The requirements that understands the needs of local traders Bank of Rwanda - and other regulatory for opening an account are friendly and institutions. bodies right from the approval of this to all people with an opening balance investment to date and we look forward Towards the above end, Ms. Monday of Rwf2,500, and a one off renewal to having their continuous guidance. scored that Crane Bank intends to invest card charge of Rwf3500 p.a. which is We cannot underplay the government’s in extensive research to ascertain the not charged in the first year. All local

rane Bank limited is pleased to is now in its 19th year of operations.. Regions of Uganda, bringing our products announce its first ever, regional With an impeccable regulatory record and services closer to your customers! In expansion outside Uganda’s and a solid ever-growing base of loyal an exclusive interview with Hope Magazine Cgeographical frontier into East East African customers and clients Crane after launching the bank’s presence in Africa. The Rwanda based new office Bank has decided to expand to Rwanda, Rwanda, Ms. Edigold Monday the Managing at La Bonne Addresse opened its doors with the intention of “bringing our products Director of Crane bank Rwanda noted on 30th June 2014. This is in fulfillment and services closer to the people”. Crane that her institution is bringing a taste of of its vision of growing into one of the Bank has won the coveted Bank of the innovation that is behind a rich product leading regional financial institutions as Year Award, presented by The Banker, and service bouquet spiced with tailor- plans on entering into other markets an associate publication of the Financial made products into the Rwandan market. progress. Crane Bank Rwanda is 100% Times, eight times in ten years. The bank “Our brand has full understanding of the owned by Crane Bank Uganda Limited, currently has 40 Branches and 100 ATMs client’s needs. Going an extra mile not a leading Tier 1 Financial Institution, and spread across Uganda; 20 State of the only to serve a customer but catering ranks among the Leading Banks of Uganda. art branches located within Kampala, 20 for his/her needs is our strength. We It was established in the year 1995 and branches strategically spread across the look forward to sharing our brand with CRANE BANK RWANDA STAFF SERVING TO GROW GROWING TO SERVE

SPECIAL FEATURE SPECIAL FEATURE

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY role as an enabler in putting together HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY appropriate banking needs of Rwandans ATM transactions for this account are the supporting structures especially so 62 and later use its experience to benefit free on Crane Bank ATMs” Monday 63 62 the one stop center”, she emphasized. 63 the country’s growth. Equipped with remarked. Regarding agri-business www.hope-mag.com the right information, the bank will use lending, which she affirms is overlooked As of December 2013, Crane Bank had quality banking services and high level by most financial institutions, Crane accumulated approximately US$580million Ms. Edigold Monday We intend to introduce trade customer care to respond to consumer bank wants to support value addition the Managing (UGX1.45 trillion) in total assets, and financing at a quality unseen needs. For instance Crane Isange account industries and factories within the Director of Crane total equity in excess of US$100million. bank Rwanda before in Rwanda, to facilitate is a perfect representation of affordable, sector. business growth. This coming from a www.hope-mag.com www.hope-mag.com www.hope-mag.com www.hope-mag.com bank owned by Africa’s 18th richest man according to Forbes Magazine in 2013 makes perfect sense. rane Bank limited is pleased to is now in its 19th year of operations.. Regions of Uganda, bringing our products announce its first ever, regional With an impeccable regulatory record and services closer to your customers! In expansion outside Uganda’s and a solid ever-growing base of loyal an exclusive interview with Hope Magazine Cgeographical frontier into East East African customers and clients Crane after launching the bank’s presence in Africa. The Rwanda based new office Bank has decided to expand to Rwanda, Rwanda, Ms. Edigold Monday the Managing at La Bonne Addresse opened its doors with the intention of “bringing our products Director of Crane bank Rwanda noted on 30th June 2014. This is in fulfillment and services closer to the people”. Crane that her institution is bringing a taste of of its vision of growing into one of the Bank has won the coveted Bank of the innovation that is behind a rich product leading regional financial institutions as Year Award, presented by The Banker, and service bouquet spiced with tailor- plans on entering into other markets an associate publication of the Financial made products into the Rwandan market. progress. Crane Bank Rwanda is 100% Times, eight times in ten years. The bank “Our brand has full understanding of the owned by Crane Bank Uganda Limited, currently has 40 Branches and 100 ATMs client’s needs. Going an extra mile not a leading Tier 1 Financial Institution, and spread across Uganda; 20 State of the only to serve a customer but catering ranks among the Leading Banks of Uganda. art branches located within Kampala, 20 for his/her needs is our strength. We It was established in the year 1995 and branches strategically spread across the look forward to sharing our brand with CRANE BANK RWANDA STAFF SPECIAL FEATURE RESOLVING INSOLVENCY FIGURES AT RDB SHOW THAT 71 CASES OF FORECLOSURE WERE CONCLUDED RECEIVED WHEREBY 13 OF THEM HAVE BEEN AND 58 ARE ONGOING AND 4 CASES OF INSOLVENCY WERE REGISTERED IN THE COMMERCIAL COURTS THE INSOLVENCY LAW

FROM JUNE 2013 TO MAY 2014. Rwanda adopted its insolvency law n˚12/2009 of 26/05/2009 which relates INSOLVENCY REGULATION SAVES administrators are people who can to commercial recovery and settling of issues TROUBLED COMPANIES AND liquidate a company in case it becomes arising from insolvency. The law establishes CREDITORS bankrupt, and who can file a case the legal framework for all commercial against such an enterprise. There are recovery proceedings and the settling of currently 32 insolvency administrators issues arising from insolvency. There are he 2014 World Bank Doing who include accountants and lawyers. two forms of insolvency under this law:

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY Business Report ranked Rwanda corporate recovery 64 the second best country to Sangano noted that and liquidation. Under do business in Africa after RDB is planning to the corporate recovery, T Ranked ‘resolving Mauritius and the 32nd best country carry out a sensitization insolvency’ the firm’s financial in the world out of the 189 economies campaign from May to indicator problems can still Rwanda was which were evaluated in the world. This August while training ranked 137th be addressed for great performance is largely attributed the business community 137 out of 189 it to recover and in solving countries to various programs and strategies on how to handle around the be able to meet its spearheaded by the Rwanda Development insolvency. “RDB Insolvency world in the financial obligations 2014 World www.hope-mag.com www.hope-mag.com Board (RDB) to boost entrepreneurship started dealing with Bank Doing Business report, that to creditors. In this in the country by making the business resolving insolvency he is optimistic that in the 2015 case, the law creates report, good progress will be environment more conducive to investors. in 2009 and the registered a win-win situation trend is progressing where the company is Resolving Insolvency is one of the 10 smoothly despite some saved and its survival indicators which the Doing Business challenges which are still affecting the ensures that creditors too can recover Report uses to analyze how governments business environment in the country,” all their money in due course. around the world promote the business Sangano said. environment in their countries. Yves In case of liquidation, on the other hand, Sangano, a Senior Registration Officer He remarked that for the ‘resolving the company in question is beyond saving (SRO) and State Attorney in the Office insolvency’ indicator Rwanda was and the only alternative is to sell its assets of the Registrar General at RDB, who is ranked 137th out of 189 countries so as to get some money to pay back now the acting Registrar General, says around the world in the 2014 World (most often partially) creditors. Having that resolving insolvency is crucial for Bank Doing Business report, that he a legal basis to deal with insolvency is a the government’s agenda of improving is optimistic that in the 2015 report, very important aspect of a modern day the country’s economic growth. He good progress will be registered due business environment, which is why it is noted that the Registrar General (RG) to the fact that new measures and one of the ten indicators the World Bank is the Chief Insolvency Administrator strategies have been put in place measures when assessing the business who supervises and monitors insolvency aimed at improving the management environment in countries to establish its administrators in the country. Insolvency of insolvency cases. Doing Business index.The WB’s main focus DOING BUSINESS REFORMS

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is on how long it takes for a case of and suppliers, and it also advices them of the offence committed against the insolvency to be settled – the number on how they can restructure their property of the debtor. of years from the filing for insolvency in businesses to make them profitable court until the resolution of distressed again and avoid bankruptcy,” Sangano INSOLVENCY SPECIALIST assets. Rwanda wants to emulate said, adding that this in turn gives Singapore, Norway, Canada and Japan creditors confidence. In a bid to improve dealing with insolvency, which the World Bank has ranked as the RDB recruited an insolvency specialist He further explained that an insolvency easiest places to deal with insolvency. who gives legal advice to creditors and administrator can even negotiate on In Japan, creditors recover on average businesspeople in general who are seeking the behalf of the troubled company up to 92.8% of their credit, while it is advice on how they can solve cases of in issues regarding the loans it owes 91.3% in Singapore. While Rwanda insolvency in their company. Doris Leno, a bank or creditors, and help in its is ranked among the best places to the insolvency adviser and specialist at the restructuring process in order to make it start a business globally, it is currently office of the Registrar General, is responsible more productive and financially stable. ranked low when it comes to resolving for receiving claims from creditors who are Another benefit of the administrators either seeking for how they can liquidate their insolvency, with only 19% recovery is that they work closely with creditors’ debtors’ companies or rescue them from rate – although this is already a vast committees to register the available become insolvent and any other business. improvement from previous years, HOPE JULY 2014 ISSUE 42 claims, which creates clarity on the when it stood at around 3%. “One of my duties as an insolvency specialist debts owed by the insolvent company. in RDB is to inform creditors who come THE BENEFITS OF INSOLVENCY here to know that before you bring in a file RESPONSIBILITIES AND POWERS REGULATION requesting for insolvency of a company, OF THE REGISTRAR GENERAL you must first of all know the details of Sangano said that one of the benefits the company by giving a whole picture of of the new mechanisms to deal with X The Registrar General in charge its economic and financial situation,” Leno insolvency is that creditors cannot go commercial activities is the Chief explains. The specialist also gives advice 65 after a business company which owes Administrator responsible for insolvency free of charge to people with struggling www.hope-mag.com them money, but have to register their proceedings. companies on how to avoid them from going claims with the insolvency administrators X He has powers to set up instructions, bankrupt. Leno says that an effective and who are the ones that take the final license for exercising the role of being efficient insolvency law is very important decision. “Many in the business community an administrator in case of insolvency, since the rules must be clearly predictable; fear the insolvency procedures because and supervise the conduct of insolvency adding that the law also provides equitable they think it’s against them, but this is proceedings and related activities. treatment of similarly situated creditors, the wrong mindset; in fact, the system and must be transparent. X Particularly, he is responsible for gives them the guidance in case they receiving and keeping an insolvency She says that although the number of people have difficulties to pay their creditors administration documents with regards coming to RDB seeking for legal advice on to the services he is going to perform insolvency issues is quite impressive, she in insolvency proceedings. encourages all people who need information One of my duties as X He is responsible for carrying out on insolvency matters to visit her office as an insolvency specialist in or setting up, if considered necessary, this will equip them with the prerequisite RDB is to inform creditors controls procedures or investigations knowledge and information on how to handle on insolvency works and all other insolvency issues in a professional and easy who come here to know that related matters. way. The specialist also helps entrepreneurs before you bring in a file X The Registrar General is also to devise preventive rescue measures to avoid their companies from collapsing, saying requesting for insolvency of responsible for intervening in court that that the country is on the right track with a company, you must first of at any given time and be considered regards to dealing with insolvency issues. as one of the parties, he/she is also all know the details of the “It is always imperative to come up with responsible for establishing requirements company by giving a whole new measures and mechanisms which can in determining what the debtor should picture of its economic and help companies to avoid being liquidated, be given for subsistence and he is also because this is one of the ways which financial situation,” Leno in charge of informing the prosecution will enable the government to effectively explains. SPECIAL FEATURE Ranked In 2014’s index, Rwanda are no longer mixed up with all kinds of achieve its agenda of having sustainable was ranked in the 2nd civilian cases in an ordinary court, but development in the country,” she notes. She 2nd most improved specialized magistrates and lawyers adds that putting in place an insolvency in 2014 country in the world are also better able to deal with such specialist is very important as she provides after Ukraine and index cases swiftly. This will undoubtedly result advice to the business people on how the second easies place to do business in Africa, in a reduction of the time required to they can rescue their companies from a position that was previously wrap up insolvency and liquidation. At collapsing and this plays a key role in the held by South Africa. the same time, RDB is putting in place country’s socio-economic development, mechanisms that are geared towards adding that it’s also important for the helping businesses in difficulty from government since a bankrupt company becoming insolvent or, worse, going means losing a taxpayer. one or more banks, which fall under the bankrupt in the first place. category of ‘secured creditors,’ because ACHIEVEMENTS they have collateral belonging to the In this respect, the agency has recruited creditor that was offered as a guarantee As of 2011, the WB reckoned it took on an insolvency specialist whose office works for the loan and that will be sold in average three years to resolve insolvency mainly with other government agencies case of failure by the debtor to pay in Rwanda, which could discourage investors to gather intelligence of firms possibly back the loan. who wanted to recover their money heading for insolvency with the aim of as quickly as possible. But according helping them recover. Rwanda Revenue But the government wants to further to Leno, today the delay has been Authority (RRA) is a major stakeholder facilitate both creditors and borrowers by brought down to only six months for in this respect since one of the signs on introducing online registration of mortgages. a creditor’s claims to be addressed the wall of impending insolvency is the “We are bringing several government by either liquidating a company or inability of a company to pay its taxes. agencies on board to communicate rescuing it. Some sections of the 2009 HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY with one another in matters involving insolvency law have been amended, The government has furthermore established 66 mortgages where an applicants’ claim to especially concerning facilitation in court, a partnership with the International a property can easily be crosschecked restructuring of distressed companies Finance Corporation (IFC) which will and verified by the relevant people,” said and providing new opportunities for help Rwanda promote and entrench the then Registrar General Louise Kanyonga creditors and debtors. practice of settling insolvency as well as in an interview last year. She added that creating further awareness among the RDB will be working with the National A board of 32 registered insolvency business community on the importance ID Agency as well as the National Land administrators has been set up under of addressing financial difficulties early Centre (NLC) under Ministry of Natural the Rwanda Insolvency Administrators so as to avoid insolvency. For instance, www.hope-mag.com www.hope-mag.com Resources to help banks verify credit Board (RIAB), for whom a code of conduct all registered companies in the country applications on the true identity and has been drafted. Various employees are required by law to submit their ownership of registered properties. from different public institutions like annual business reports to the office Rwanda Revenue Authority and RDB’s of the Registrar General but only a According to the Kanyonga, working business registration department have few do so. Yet the practice of regular with various institutions is time-saving been trained concerning the insolvency reporting could allow the government to for all parties involved and it also law and how to recover money. identify struggling companies and help helps reduce the possibility of fraud them avoid a worse situation. or dishonesty; in addition, once banks Insolvency specialist Leno notes that they are sure of the ownership of an asset, are planning to train businesspeople Commenting on the results of the 2014 it becomes more valuable as collateral around the country on how to deal World Bank Doing Business report, which since there is absolute certainty that it with insolvency and avoid liquidation. was released last November, Valentine can be liquidated if necessary. The government is also taking rigorous Rugwabiza, the former CEO of RDB measures, spearheaded by RDB, to COMMERCIAL COURTS said “Rwanda has been very active improve the way insolvency cases are since 2008/9. Rwanda has been top handled and resolved through improving The creation of commercial courts will global reformer twice before in DB government agency networking on credit also ultimately help to speed up cases 2010 and DB 2011. We have been applications. In most cases, an insolvent of insolvency and liquidation. Not only acknowledged again as top reformer this company will have outstanding loans with does it mean that business-related cases DB 2014. The 2014 Doing Business DOING BUSINESS REFORMS

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results are a statement of our consistent construction permits, registering property, enabled us to strengthen the City of efforts to empower our local and foreign getting credit – legal rights, protecting Kigali One-Stop Center for Construction entrepreneurs. We are determined to investors, paying taxes, trading across Permits in order to promptly address work alongside investors to make sure borders and resolving insolvency which the main challenge to our construction we do all we can to make Rwanda a have helped it maintain its position above industry as well as upgrade the land great place to do business and unleash all its East African Community partner administration office with web-based the country’s full potential.” In 2014’s countries. The 2014 results underlined Land Administration Information System index, Rwanda was ranked in the 2nd the importance of cooperation between for processing land transactions. most improved country in the world after government institutions and agencies Ukraine – and the second easiest place in order to overcome the constraints But there is still more to do; over the next to do business in Africa, a position that facing Rwanda’s private sector. 12 months, we will continue our national was previously held by South Africa. reform agenda so that business and trade Reacting on the report, Kanimba Francois, contribute more to Rwanda’s economic Rwanda came in 32nd on the overall list, Minister of Trade and Industry who also growth and social transformation.” The up from 52nd last year, representing a doubles as the Chair of the Doing Business Rwanda Development Board will continue leap frog jump of 20 places. The report, Steering Committee, said “We were to foster existing partnerships, and build entitled ‘Understanding Regulations for inspired by the 2014 results to even do new ones among different doing business Small and Medium Size Enterprises’ also better especially on indicators that were stakeholders and agencies in order to HOPE JULY 2014 ISSUE 42 highlighted Rwanda’s improvements in 8 more challenging. The Doing Business ensure that business is at the heart of reforms in starting a business, dealing with spirit that is inbuilt within our institutions the country’s development.

DOING BUSINESS REPORT

The 2014 World Bank report which posi tion of 145th. This impeccable NEW STRATEGY TO MARKET 67 surveyed 189 nations shows that progress has been made possible

RWANDA UNVEILED www.hope-mag.com Rwanda is in the 32nd position due to various policies and business this year is 32nd from 54th an reforms which the Rwandan government Apart from the conducive busi- improvement of 22 places over- through the Rwanda Development ness environment which has been taking South Africa to become the Board (RDB) has come up with and put in place by the government of second most favorable business implemented to make doing business Rwanda over the years through the environment after Mauritius. South in the country more easier than ever. implementation of the 10 indicators Africa which is now 3rd in Africa is of Doing Business, RDB in early May also 41st globally. Jean Phillipe Prosper, the International this year unveiled a new strategy Finance Corporation Vice President which is expected to earn the country This year, Rwanda also broke records for Sub-Saharan Africa, Latin America over $150m (about Rwf104.3b) per to be the most improved country and the Caribbean who announced annum from international conferences over the history of DB that is since the 2014 Doing Business report and workshops by 2015, up from 2005 after becoming the 2nd most results to President Kagame said: $49m presently. Code named MICE improved after Ukraine on the list of “The main objective of coming to (Meetings, Incentives, Conferences the top ten reform ers in the 2014 Rwanda was to deliver the 2014 and Events), the strategy will not WB report. Other African countries World Bank DB report to President Paul only boost the economic potential on this list are: Djibouti, Ivory Coast Kagame and to congratulate him for of Rwanda’s tourism indus try, but and Burundi whereby their respective his coun try’s incredible performance will also strengthen pub lic-private global ranks are: 160,167, and 140. as regards to improving the ease sector partnerships in the industry. of doing business in Rwanda which In EAC, Kenya was ranked 2nd with has made the country among the During the launch of the strategy, global position of 129, Uganda is 3rd top business reformers in the world the Head of tourism and conser vation with global posi tion of 132, Burundi and this is a sign that the country is department at RDB, Amb. Yamina 4th global position of 140th globally on the right track towards achieving Karitanyi, said: “The economic potential while Tanzania is 5th with global socio-eco nomic growth”. of the MICE sector is immense. SPECIAL FEATURE Doing Business Report Continued

Total reve nues from MICE tourism were The tourism sector has recorded impressive The conference was attended by 3,000 $49m last year (about Rwf34.1b) and performance over the last five years, delegates from regional, continental is projected to more than triple to growing by 12%, which is way above the and international community. Speaking $150m by 2015. This is 16% of the global average of 5%. Meanwhile, RDB at the official opening of the 49th total national export earnings and, 34% has created a ‘destination’ marketing AfDB meetings in Kigali, the AfDB of the overall tourism receipts.” The arm, the Rwanda Convention Bureau. President, Dr Donald Kaberukasaid strategy is aimed at diversi fying Rwanda’s The new office targets to see Rwanda that twenty years ago, a million tourism products. Karitanyi noted that become one of Africa’s top 10 tourist people were exterminated in only the strategy was designed in line with destinations by 2016. “The bureau has a three months, adding that this chapter, the country’s growth blueprint, the stand and will be introduced to the global one of Africa’s darkest, will forever second Economic Development and meetings and incentives marketplace at mark the history of the continent. Poverty Reduction Strategy (EDPRS next week’s IMEX international meetings II) objectives. She pointed out the exhibition tradeshow in Frankfurt as “In the aftermath of this ignomini- need for the private sector to get fully Africa’s newest con vention bureau,” ous chapter, Rwanda was written involved in tourism activities and other RDB officials said. off as on the way to a failed state. eco nomic activities of the economy, Indeed, from all angles, the situation Tourism is Rwanda’s top foreign exchange arguing that the tourism sector should looked desperate. And yet here we earner with coffee and tea as the country’s be private sector-cen tered and led are today, the cross-sec tion of the main exports. The sector’s rev enues saying that this will enable it to be whole world of finance and beyond. grew by four% last year to $293.6m more competitive and sustainable. Recognition of how far this nation (about Rwf196.7b), up from $281.8m

HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY has come. Karitanyi noted that while leisure (about Rwf188.8b) generated in 2012, 68 according to the Rwanda Development tourism is a vital part of the national We pay homage to you, Mr. President, Board statistics. The country hosted about tourism strategy, business tourists and your government, the people of 1,137,000 visitors last year compared have tripled compared to leisure Rwanda for your accomplishments, to around 1,076,000 in 2012, an visitors.The tourism sector mainly your resilience and tenacity in healing increase of six%. The country has in recent depends on mountain gorilla trekking, a wounded nation,” Kaberuka said. years hosted numerous big continental eco-tourism, cultural and community He noted that due to the tre mendous and global conferences in Kigali. based-tourism. Rwanda’s share in progress that the gov ernment of

www.hope-mag.com www.hope-mag.com international meetings, incen tives, AFDB ANNUAL MEETINGS Rwanda has regis tered socially and conferences and events industry is economically despite of its tragic presently minimal, according to sector Rwanda also hosted one of Africa’s top history, there are lessons that are players. The International Conference annual conferences, the 49th African relevant to many African countries and Congress Association’s (ICCA) Development Bank Annual Meetings that face challenges of reconstruction latest research ranked Rwanda as which took place in Kigali from 19 to and rebuilding their respective coun- 21st in Africa. 23 May. tries economically and socially.

www.org.rdb.rw SPECIAL FEATURE Doing Business Report Continued

www.org.rdb.rw www.hope-mag.com Special Feature AA UNI Rwanda Hitech management applications brought closer

Rwanda has made one outstanding choice; that the key sector to get the economy up to speed in development is the service industry.

nd that key factors in success of sary depending on the physical attendance is in talks with numerous establishments to the service industry are the quality of a waiter. Explaining how the application set up the applications. Notwithstanding the of customer care and the skills of works, Agha Ahmed Hussain Shirazi the Direc- importance of automation to any hotel es- Athe workforce therefore, which tor of Fiscal and Business Solutions at AA Uni tablishment’s management, Uni Rwanda also explains the efforts made in the country Rwanda narrated “having the hotel manage- reiterates the need for customized services towards improving service delivery ment software, IDS NEXT, allows all activities hence each customer is given what they need. and building a competent workforce. to be monitored and carried out through one In addition to the hotel and property man- Considering the quality of customer platform.” For instance, a restaurant using the agement software, Uni Rwanda also is the care, the world has moved on towards automating numerous service delivery procedures and these have played a key role in addressing ailments in service provision globally.

And as Rwanda steadily moves towards creating a service hub especially in conference tourism, there is as much need to install applications that allow for the automation of service delivery. Towards making the software and the required hardware available, one of Rwanda’s big- gest IT equipment suppliers took it on itself to seek partnerships with global tech- “Businesspeople train in using Electronic Billing Machines facilitated by AA Uni Rwanda at the nology companies. company premises. EBMs are mandatory equipments for all VAT registered taxpayers in Rwanda.”

The resulting relationships with global application would be in position to use some supplier for leading applications in account- players have seen AA Uni Rwanda offer automated procedures like electronic menus. ing particularly the Busy Business Account- very interesting applications like the all- Imagine going into your favorite restaurant ing software. Besides selling the software, Uni round Hotel and Property management and instead of that old plastic menu, you are Rwanda supplies hardware, installs the sys- software. One usual scene in many restau- given a tablet carrying an electronic menu tems, trains users on how to operate it, and rants and hotels, even those upscale ones, from which you make your orders, sent direct- offer support services in maintaining them. tells the role of automating service deliv- ly to the chefs such that they immediately be- “Our relationship with the customers extends ery even better; “a guest struggling to get gin to be prepared among many other conve- beyond selling the products to include after the attention of a waiter/waitress to either niences. In the event of such, errors related to sale support services like repair and mainte- nance. For instance in regards to Electronic make an order, inquire or something else human inefficiency like the many cases when Billing Machines which we supplied on Rwan- they may need.” waiters forget a customer’s order and end da Revenue Authority’s directives, we offered up delivering what was never asked for con- daily trainings to the business community on Though most often the failure would lie sequently causing loss for the hotel but also how to efficiently use them and these train- squarely on the shoulders of the waiting gravely hurting the establishment’s brand are ings continue even to date for anyone in need personnel for not tending to their guests substantially reduced. of such.” as required, the contrary may also be true that the waiter was in no position to keep “These applications though have not been The main target ultimately is to offer IT busi- up with the customer all through their used in Rwanda before are already being ness solutions to customers and not just sell- time of stay because they were handling utilized by global brands elsewhere and as a ing software or hardware. “Instead of having another. This is where automating the country targeting to become a conferencing to struggle creating an internal IT depart- service delivery process comes in; making hub, it is more than necessary that automated ment, we want companies in Rwanda to make sure that a guest in this case can request services are adopted in the hospitality indus- use of our expertise to ease their workload,” for whatever they need without neces- try,” Shirazi offered. Currently AA Uni Rwanda Mr. Shirazi noted.

70 MAY-JUNE 2014 ISSUE 40 www.hope-mag.com Special Feature AA UNI Rwanda Hitech management applications brought closer

Rwanda has made one outstanding choice; that the key sector to get the economy up to speed in development is the service industry. nd that key factors in success of sary depending on the physical attendance is in talks with numerous establishments to the service industry are the quality of a waiter. Explaining how the application set up the applications. Notwithstanding the of customer care and the skills of works, Agha Ahmed Hussain Shirazi the Direc- importance of automation to any hotel es- Athe workforce therefore, which tor of Fiscal and Business Solutions at AA Uni tablishment’s management, Uni Rwanda also explains the efforts made in the country Rwanda narrated “having the hotel manage- reiterates the need for customized services towards improving service delivery ment software, IDS NEXT, allows all activities hence each customer is given what they need. and building a competent workforce. to be monitored and carried out through one In addition to the hotel and property man- Considering the quality of customer platform.” For instance, a restaurant using the agement software, Uni Rwanda also is the care, the world has moved on towards automating numerous service delivery procedures and these have played a key role in addressing ailments in service provision globally.

70 MAY-JUNE 2014 ISSUE 40 www.hope-mag.com Special Feature

PHOENIX OF RWANDA ASSURANCE COMPANY LTD Insuring from experience

stablished in 1912, precisely a 11 branches across the country. century ago, Phoenix Assurance In Kigali city alone, the insurance services Group with its heavy presence provider has four branches located in strate- Ein Eastern Africa is one of the few gic business areas including Remera/Gisimenti, centenarians seen in the insurance Magerwa, Nyabugogo and Nyamirambo. sector; locating it among the very best Equally in upcountry provinces, Phoenix of with considering the expertise left by the Rwanda Assurance Company Ltd has a network many years of serving the region. The of branches reaching Rubavu, Musanze, Huye, Group has presence in Kenya, Tanzania, Muhanga, Gatuna, Rusumo, and Nyagatare. Uganda and Rwanda. Antoine Uwamungu, General Manager of The countrywide network of branches en- Phoenix of Rwanda Assurance Company Ltd. In Rwanda, Phoenix of Rwanda Assurance ables the company to render exceptional Company Ltd was established in 2006. service quality to its customers, meeting them Customer satisfaction in Phoenix’s perspec- The insurance company offers a wide in all Rwanda’s busiest cities and towns and tive is what will get Rwanda to achieving range of insurance products ranging from helps the company to personalize services a higher rate of insurance coverage in the Property Insurance, Technical Risks In- thereby customizing its offering to specific country. surance, Miscellaneous Risks Insurance, customers around the country. Marine and Goods in transit Insurance, According to Antoine Uwamungu, the Gener- Also, Phoenix of Rwanda Assurance Com- Motor Insurance, Travel Insurance, In- al Manager of Phoenix of Rwanda Assurance pany Ltd. is backed by reputable reinsurers surance against Accident, and Liabilities Company Ltd, the emphasis for them is en- which include; Swiss Re, Hannover Re, Af- Insurance. suring customer satisfaction. rica Re, GIC of India, PTA (ZEP) Re, Conti- nental Re, FM Re, TAN Re, EAST AFRICA Re, Headquartered in Rwanda in the Kigali “Our main emphasis is laid on supporting our FIRST Re and UGANDA Re all of which is to City based head office, Phoenix of Rwan- customers to get what they need and mak- ensure that customers are confident that da Assurance Company Ltd has over the ing sure that at the end, the customer is fully when they insure with it, then their risks are years achieved a nationwide presence with covered and happy with the service.” full covered by the very best on the content.

Our Products

Industrial All Risks Consequential loss / Business dishonesty of employees) Fire and Allied Perils Interruption Workmen’s Compensation Contractors All Risks Burglary and Theft Public and Products Liability Machinery breakdown Marine insurance / Goods in Professional Indemnity Electric and Electronic transit Bonds, (Bid, Performance, Equipment All Risks Personal and Group Accident Advance, Custom etc.) Computer Equipment All Money and Cash in transit Motor Insurance Risks Fidelity guarantee (fraud and Travel Insurance

HEAD OFFICE, Grand Pension Plaza Building. Ground & 8th Floors, Avenue de la Paix, Nyarugenge District, KigaliCity P.O. Box 82 Kigali Rwanda. Te: (+250) 570 331, (+250) 788 385 888 Fax: (+250) 570 332 Email: [email protected]

72 MAY-JUNE 2014 ISSUE 40 www.hope-mag.com Special Feature

PHOENIX OF RWANDA ASSURANCE COMPANY LTD Insuring from experience stablished in 1912, precisely a 11 branches across the country. century ago, Phoenix Assurance In Kigali city alone, the insurance services Group with its heavy presence provider has four branches located in strate- Ein Eastern Africa is one of the few gic business areas including Remera/Gisimenti, centenarians seen in the insurance Magerwa, Nyabugogo and Nyamirambo. sector; locating it among the very best Equally in upcountry provinces, Phoenix of with considering the expertise left by the Rwanda Assurance Company Ltd has a network many years of serving the region. The of branches reaching Rubavu, Musanze, Huye, Group has presence in Kenya, Tanzania, Muhanga, Gatuna, Rusumo, and Nyagatare. Uganda and Rwanda. Antoine Uwamungu, General Manager of The countrywide network of branches en- Phoenix of Rwanda Assurance Company Ltd. In Rwanda, Phoenix of Rwanda Assurance ables the company to render exceptional Company Ltd was established in 2006. service quality to its customers, meeting them Customer satisfaction in Phoenix’s perspec- The insurance company offers a wide in all Rwanda’s busiest cities and towns and tive is what will get Rwanda to achieving range of insurance products ranging from helps the company to personalize services a higher rate of insurance coverage in the Property Insurance, Technical Risks In- thereby customizing its offering to specific country. surance, Miscellaneous Risks Insurance, customers around the country. Marine and Goods in transit Insurance, According to Antoine Uwamungu, the Gener- Also, Phoenix of Rwanda Assurance Com- Motor Insurance, Travel Insurance, In- al Manager of Phoenix of Rwanda Assurance pany Ltd. is backed by reputable reinsurers surance against Accident, and Liabilities Company Ltd, the emphasis for them is en- which include; Swiss Re, Hannover Re, Af- Insurance. suring customer satisfaction. rica Re, GIC of India, PTA (ZEP) Re, Conti- nental Re, FM Re, TAN Re, EAST AFRICA Re, Headquartered in Rwanda in the Kigali “Our main emphasis is laid on supporting our FIRST Re and UGANDA Re all of which is to City based head office, Phoenix of Rwan- customers to get what they need and mak- ensure that customers are confident that da Assurance Company Ltd has over the ing sure that at the end, the customer is fully when they insure with it, then their risks are years achieved a nationwide presence with covered and happy with the service.” full covered by the very best on the content.

Our Products

72 MAY-JUNE 2014 ISSUE 40 RWANDA STOCK EXCHANGE

SPECIALSPECIAL FEATURE FEATURE SPECIAL FEATURE

Rwanda’sRwanda’s nine trading members commonly known noticeably were all oversubscribed (more One does not necessarily need Rwf 5 as brokers have already been licenced money was offered by the public exceeding billion as would otherwise be required while two advisory firm members have the issuers demand), have been issued by the Central Bank to open a bank in capitalcapital marketmarket also been approved to do business in on the market. The activities on the stock Rwanda.” the market. These players help buyers market resulted into an increased turnover CelestinCelestin and sellers on the bourse to execute their for RSE growing from Rwf18.2 billion in ADVANTAGES OF LISTING RwabukumbwaRwabukumbwa investment decisions. Besides, RSE has so 2012 to more than tripling recording ON THE STOCK MARKET FOR nownow ofof ageage far created a stock market index that tracks Rwf54 billion in 2013. The Rwanda Stock A COMPANY the performance of the various companies Exchange Index(RSI) rose an impressive trading on the market. Also, efforts are 43.93 % and the All share Index( ALSI) NumerousNumerous brilliant brilliant ideas ideas Besides being able to access cheaper duringduring which which final final interest interest payment payment and andthe the in advanced stages to automate all the rose 23.89 during the same period driven funding from the public, listing on the stock remainremain just justso or so even or even when when principalprincipal investmentis investmentis paid. paid. This This product product they arethey implemented are implemented never never get get operations of the stock marketin order mainly by the counters of the two local market also presents other advantages allowsallows the the borrowing borrowing institution institution to investto invest the opportunitythe opportunity to grow to grow bigger, bigger, for traders to conveniently access it from companies listed on the bourse. for companies. These include among mainlymainly because because of little of little access access inin long long term term projects projects since since they they are arenot not wherever they are. Rwabukumba noted others, facilitating them to grow into to lowto cost low costfunding funding facilities. facilities. requiredrequired to to pay pay both both interest interest and and premium premium that they are in late stages of automating According to Rwabukumba, 2013 was professional entities. For instance as Most Mostoften, often, the entrepreneursthe entrepreneurs atat the the same same time time like like the the case case would would be be the trading platform but settlements have an unexceptional come back from the primary requirements for a company turn toturn banks to banks to access to access credit credit forfor a a bank bank loan. loan. Other Other products products on offeron offer already been automated allowing transfer previous two years. “The performance to list on the stock market, they should but asbut a resultas a result of the of businessthe business inin the the Rwandan Rwandan capital capital market market include include ownership of shares electronically. of the market attracted investors from have an efficient and standard corporate forces,forces, these these loan loanfacilities facilities are are HOPE JULY 2014 ISSUE 42 crosscross listings listings made made by byforeign foreign companies companies across the globe from as far as Japan governance structure, accountability, too expensivetoo expensive that theythat they at times at times operatingoperating in inRwanda Rwanda and and beyond, beyond, allowing allowing to invest in companies listed on the local end upend strangling up strangling the very the very start start- - 2013, AN UNEXCEPTIONALLY and be profitable; all of which are also localslocals to to get get theopportunity theopportunity to buyto buy into into bourse,” he noted. important for a business’s growth from ups theyups arethey meant are meant to finance. to finance. thesethese multinationals. multinationals. Besides Besides the theprimary primary GOOD YEAR. This isThis mainly is mainly due dueto the to thefact fact just a small company into a big entity. marketmarket where where capital capital is raised,is raised, the theRSE RSE has has that thethat loans the loans do not do give not give enough enough As a result of the developments, Mr. APPETITE STILL LOW aa secondary secondary market market where where trading trading of shares of shares time fortime the for businesses the businesses to grow to grow Rwabakumba scores that the previous year BUT SIGNS ARE PROMISING “If Rwanda is to achieve the set economic beforebefore they canthey pay can back.pay back. development targets, we need our HOPE JULY 2014 ISSUE 42 2014 ISSUE HOPE JULY 42 2014 ISSUE HOPE JULY Notwithstanding the achievements, Mr. businesses to grow strong and compete 74 74 Rwabukumba affirms that the activity in the on the international scene and this can 75 market remains low especially as a result only be achieved if the principles of www.hope-mag.com ank loansank loansare aare good a good option option hashas all allthe the required required facilities facilities toto benefitbenefit of little movement from the supply side corporate governance, accountability, for businessesfor businesses but people but people need need bothboth government government and and the the private private sector where few companies have been able to and profitable operations are upheld,” to understandto understand that thatowing owing to to to togather gather funds funds from from the the public.public. “With“With do IPOs. “We still need more companies to Rwabukumba offered. the highthe interesthigh interest rates rates and and thethe capital capital market market up up and and operating,operating, appreciate the opportunity presented by Bthe requirementBthe requirement to pay to backpay back the moneythe money whatwhat people people need need to to appreciate appreciate is that the capital market to grow their businesses GOING FORWARD on a shorton a toshort medium to medium term term basis, basis, bank bank irrespectiveirrespective of ofwhat what their their financial financial needsneeds and thus make use of it and e are seeing loan facilitiesloan facilities are not are the not best the bestoption option for for are,are, there there is isa aproduct product in in thethe marketmarket www.hope-mag.com www.hope-mag.com www.hope-mag.com good indicators, though of course this can As Mr. Mathu noted, the next years for start-upstart-up capital capital or equity or equity investment,” investment,” thatthat can can respond respond to to them,” them,” MathuMathu said. only be celebrated when we see an offer.” Rwanda’s capital market will see the Mr. CelestinMr. Celestin Rwabukumba, Rwabukumba, the theCEO CEO Also, as the RSE boss scores; the general regulating authority invest in mobilizing of the ofRwanda the Rwanda Stock Stock Exchange Exchange (RSE) (RSE) SomeSome of ofthe the options options for for accessing accessing funds public also businesses in the country to make use noted notedduring during a recent a recent interview. interview. fromfrom the the public public available available inin Rwanda’sRwanda’s needs to of the available opportunities. Towards capitalcapital market market include include InitialInitial PublicPublic People should utilize the opportunity offered embrace the the end, Rwabukumba pledged that his But withBut a withsteadily a steadily growing growing capital capital market, market, OfferingsOfferings (IPOs) (IPOs) through through which which aa companycompany to own some of the big companies that they opportunity team is working around the clock to the RSEthe boss RSE notesboss notes that thethat sectorthe sector is no is no cancan sell sell shares shares to to the the public public andand in so otherwise may never have a thing to do with. A offered by interest more local companies to list on longer longerthe nascent the nascent platform platform it used it used to be to be doingdoing acquire acquire extra extra capital capital toto growgrow the local for instance who buys BK shares automatically the capital the stock market in addition to helping but hasbut rather has rather developed developed to appreciable to appreciable businessesbusinesses plus plus allowing allowing moremore peoplepeople becomes one of the owners of Rwanda’s leading bank market to them prepare for the procedures. level withlevel numerouswith numerous options options already already to shareto share in inownership. ownership. Also, Also, thethe marketmarket CapitalCapital markets markets development development in the in thelast lastcouple couple and at a low entry level of investment: save for availableavailable for the for business the business community community to to offersoffers the the bonds bonds option option which which areare either yearsyears has has also also taken taken this this new new dimension dimension their future. Also, the RSE boss noted added that seek fundingseek funding from thefrom public. the public. “We “We have have corporatecorporate (when (when issued issued by by companies)companies) another market segment targeting small in the inlast the four last yearsfour years plus plusmanaged managed to to or orgovernment government bonds bonds when when thethe issuingissuing “People should and medium enterprises is being planned developdevelop all the all fundamental the fundamental products products of of authorityauthority is isthe the state. state. These These involveinvolve happenshappens with with people people buying buying and and selling selling their their of 2013 saw the local capital market utilize the opportunity offered to own some and this will see simplified procedures for a capitala capital market market and atand this at point,this point, our our membersmembers of ofthe the public public lending lending money sharesshares in in real real time. time. In Inaddition addition to diversifyingto diversifying register outstanding results. Currently two of the big companies that they otherwise listing on the stock market offered for this businessbusiness people people should should know know that thatthere there to theto the tune tune set set by by the the issuer issuer andand waitingwaiting thethe products, products, RSE RSE with with support support from from CMA CMA local companies Bralirwa and Bank of Kigali may never have a thing to do with. A segment. In similar efforts of facilitating are optionsare options for acquiring for acquiring cheaper cheaper and and to tobe berepaid repaid during during a a specified specified periodperiod whichwhich is is the the government government regulating regulating authority authority issued IPOs while the Kenya commercial local for instance who buys BK shares increased utilization of the capital market, long termlong funding,”term funding,” Mr. RwabukumbaMr. Rwabukumba by bythe the issuer. issuer. Concerning Concerning thethe bonds,bonds, forfor the the capital capital market market has has made made tremendous tremendous Bank, Uchumi Supermarket, and the Nation automatically becomes one of the owners regional stock exchanges are in process shared.shared. Reiterating Reiterating the same, the same, the Capitalthe Capital thethe borrower borrower pays pays interest interest to to thethe lenderslenders effortsefforts at at putting putting in inplace place the the necessary necessary soft soft Media Group, all from Kenya have cross listed of Rwanda’s leading bank and at a low to link their trading platforms and central MarketMarket Authority Authority (CMA) (CMA) Executive Executive Director Director throughoutthroughout the the life life of of the the bond bond (time(time the andand infra infra structures structures for for successful successful business business on the local bourse. In addition numerous entry level of investment: Just a minimum depositories to ease buying and selling RobertRobert Mathu Mathu noted noted that thatthe platformthe platform debtdebt lasts) lasts) until until the the very very last last installment,installment, dealingsdealings on on the the stock stock market. market. For For instance, instance, corporate and sovereign bonds, which of 100 shares you are good to go. shares across the East African Community. RWANDA STOCK EXCHANGE

SPECIALSPECIAL FEATURE FEATURE SPECIAL FEATURE

Providing logistical solutions that connect continents

“For Rwanda’s international trade (export and import alike) to grow to desired volumes, there is need for the logistic service providers to have the required skills and operate on professional and internationally acceptable standards,” remarked, Bastian Schmitz, the General Manager of Spedag Interfreight Rwanda in an interview.

Also important to note is that Spedag In- may be happening with their cargo at terfreight stands for time consciousness. any particular time. In freight forwarding like for cargo to Our average clearing time in Rwanda of be used in projects, which dominate the three working days for road cargo and 1 larger bulk of cargo that we move, time working day for airfreight cargo says this is everything as projects have timelines than any other words I may use. to observe in order to be successfully ex- ecuted. HOPE: We have stories of people losing their cargo due to security breaches, how Besides freight forwarding services, do you deal with such happenings? Spedag Interfreight also offers storage facilities for customers who need space SPEDAG: I can’t say that we are immune to hold their cargo before it can be tak- to such but we have taken all the neces- en elsewhere. We have over 2600 square sary measures to protect our cargo from metres (m2) of warehouse space avail- security sabotages. In addition to track- able for renting. ing them with the GPS technology, we place armed guards to escort them when Bastian Schmitz, the General Manager of HOPE: Time and transport costs are often in areas that we doubt in regards to en- Spedag Interfreight Rwanda held responsible for the high costs of forcing security. moving goods across borders. During the interview, Mr. Schmitz narrat- What role do you play in this area to help HOPE: Besides the services you offer, ed the company’s achievements over the your customers lower logistic expenses? what other contributions would you last two decades of operation in Rwan- say Spedag Interfreight has had in da and commented on various factors SPEDAG: For some of the challenges like international business growth in regarding Rwanda’s import and export transport, port and border clearances, Rwanda? trade. Below are extracts. there is little that we can do to change them seen that we are depending on the SPEDAG: Being one of the oldest freight HOPE: What should one picture when service levels provided by the port and forwarders operating in the country to they think of Spedag Interfreight? customs authorities but good strides I date, we are always in constant and open can say have been made by the East discussions with the customs authorities SPEDAG: Simply put, we are a freight for- African community to address these. in Rwanda and other stakeholders during warding agency or put it in simpler terms, However, on issues of time management which we offer our expertise on how to we are in cargo moving business. where we can make an impact; we have address certain shortcomings and there- When I say that we are in cargo business, put in place strategies and procedures to by improve services in the sector. I want someone to hear that we offer lo- ensure that we deliver to our customers gistical solutions from when a customer sooner than anyone else in the market. Oftentimes we tell authorities about a begins to think about exporting or im- procedure that delays the process of porting. This is possible especially because we transporting cargo to and from the coun- have presence in most countries in Africa try that we find unnecessary to maintain Given our large footprint in all conti- and on all other continents. This coupled and we have seen our advices being nents, we are best positioned to keep with use of the latest GPS technology, we implemented in the past resulting into track of goods from wherever they may- keep track of the cargo all throughout some of the reforms made in the past. be all the way to when they are delivered the transit period and in so doing allow This is something I can credit the Rwan- at the customer’s premises. our customers to be up to date with what dan government for; listening to the pri-

76 MAY-JUNE 2014 ISSUE 40 www.hope-mag.com Special Feature

vate sector. kind, the group container service we of- crops of coffee, tea, and to a low tune, Also, we are members of the professional fer has, besides the reduced cost of trans- minerals. However, in the recent past, body of freight forwarders and clearing port, an added advantage of the regular there has been a change of trend with agents in Rwanda where together with notifications on progress of a given con- new commodities like horticultural prod- Providing logistical solutions that connect continents other players, we continuously seek after tainer like when it will leave the takeoff ucts making it to the list. developments that would develop the country, its progress in transit, among country’s logistic sector to desired stan- others. However, there also are numerous chal- dard. Our groupage program includes cargo lenges especially for the later products. “For Rwanda’s international trade (export and import alike) to grow to desired volumes, there is need for from Dubai, South Africa, China, India, Ger- There is a lot of potential for Rwanda’s the logistic service providers to have the required skills and operate on professional and internationally One other element of our business mod- many, and Belgium. export business in horticulture products acceptable standards,” remarked, Bastian Schmitz, the General Manager of Spedag Interfreight Rwanda el worth noting is the monthly groupage but facilities like cooling systems for in an interview. container service. Here we help small HOPE: What is your take on Rwanda’s pre-transport preparation are underde- scale importers and project clients alike export business? Any major challenges veloped. The cooling chain in the coun- to transport their commodities together that you suggest should be addressed try is kind of incomplete and to boost Also important to note is that Spedag In- may be happening with their cargo at in one container with each paying only soon to facilitate increased receipts for growth in this otherwise potential export terfreight stands for time consciousness. any particular time. for the space their cargo occupies. the country? commodity, government needs to attract In freight forwarding like for cargo to Our average clearing time in Rwanda of investments in similar support facilities. be used in projects, which dominate the three working days for road cargo and 1 This program has helped very many busi- SPEDAG: For long, Rwanda’s exports larger bulk of cargo that we move, time working day for airfreight cargo says this nesspeople and unlike any other of the have been dominated by traditional cash HOPE: Thank you! is everything as projects have timelines than any other words I may use. to observe in order to be successfully ex- ecuted. HOPE: We have stories of people losing Spedag Interfreight was established in the year 1998, less than four years after the Rwandan genocide their cargo due to security breaches, how that left the country in a dissolute state that had put economic activities to a halt. Besides freight forwarding services, do you deal with such happenings? Ever since, as the bulk of import and exports augmented, the freight forwarder and clearing agency Spedag Interfreight also offers storage equally grew. It currently employs 55 employees, many of who it has contributed to their training to facilities for customers who need space SPEDAG: I can’t say that we are immune become professionals in the area. to hold their cargo before it can be tak- to such but we have taken all the neces- en elsewhere. We have over 2600 square sary measures to protect our cargo from metres (m2) of warehouse space avail- security sabotages. In addition to track- able for renting. ing them with the GPS technology, we place armed guards to escort them when Bastian Schmitz, the General Manager of HOPE: Time and transport costs are often in areas that we doubt in regards to en- Spedag Interfreight Rwanda held responsible for the high costs of forcing security. moving goods across borders. During the interview, Mr. Schmitz narrat- What role do you play in this area to help HOPE: Besides the services you offer, ed the company’s achievements over the your customers lower logistic expenses? what other contributions would you last two decades of operation in Rwan- say Spedag Interfreight has had in da and commented on various factors SPEDAG: For some of the challenges like international business growth in regarding Rwanda’s import and export transport, port and border clearances, Rwanda? trade. Below are extracts. there is little that we can do to change them seen that we are depending on the SPEDAG: Being one of the oldest freight HOPE: What should one picture when service levels provided by the port and forwarders operating in the country to they think of Spedag Interfreight? customs authorities but good strides I date, we are always in constant and open can say have been made by the East discussions with the customs authorities SPEDAG: Simply put, we are a freight for- African community to address these. in Rwanda and other stakeholders during warding agency or put it in simpler terms, However, on issues of time management which we offer our expertise on how to we are in cargo moving business. where we can make an impact; we have address certain shortcomings and there- When I say that we are in cargo business, put in place strategies and procedures to by improve services in the sector. I want someone to hear that we offer lo- ensure that we deliver to our customers gistical solutions from when a customer sooner than anyone else in the market. Oftentimes we tell authorities about a begins to think about exporting or im- procedure that delays the process of porting. This is possible especially because we transporting cargo to and from the coun- have presence in most countries in Africa try that we find unnecessary to maintain Spedag Interfreight Rwanda Team. Given our large footprint in all conti- and on all other continents. This coupled and we have seen our advices being nents, we are best positioned to keep with use of the latest GPS technology, we implemented in the past resulting into Supply Chain Management Project Logistics Transports track of goods from wherever they may- keep track of the cargo all throughout some of the reforms made in the past. Consolidation Services Warehousing Seafreight Overland be all the way to when they are delivered the transit period and in so doing allow This is something I can credit the Rwan- Distribution Logistics muscles.” Airfreight at the customer’s premises. our customers to be up to date with what dan government for; listening to the pri- Comprehensive Logistics Logistics connecting continents 76 MAY-JUNE 2014 ISSUE 40 www.hope-mag.com 77 www.hope-mag.com Special Feature UAE Exchange opens another branch in Rwanda

July 14th was a very exciting day for the UAE Exchange team in Kigali as the hardly three years old company opened doors of its second branch in the Rwandan capital.

But the excitement was clearly not going & Regional Head-East Africa and will be op- UAE Exchange is well known for its pen- to end with the Rwandan team as the erating till late hours in order to tap into the chant for quality, which has won the brand company’s regional Director for the East evening time clientele that have had to travel to many awards and recognition, from various African area among numerous dignitar- the city centre in the past to access similar quarters, globally. ies of the Foreign exchange and money services. Today it has the largest branch network in transfer institution made it to Kigali to its class with over 700 direct offices across witness the historical moment which is “Customer accessibility has always been one 32 countries with a customer base of over considered the benchmarking move that of our prime most goals and today we are 6.5 million customers. Its strong correspon- will see the company spread even more considered as a neighbourhood brand for our dent relationship with over 150 leading global in the country. strong network across the globe. We are hap- banks adds to the might. py to have expanded with our second branch UAE Exchange is a leading money trans- in Rwanda and hope to further strengthen The branch inauguration was attended by fer and foreign exchange brand operat- our presence here to be more accessible for senior officials of UAE Exchange, customers, me- ing in over 32 countries globally. The new our customers”, Mr. Krishnan said. dia officials and special invitees. branch is located in in Remera of Gasabo Delivering customer service par excel- Besides opening the new branch, the day district in one of Kigali City’s business cen- lence has been a priority for UAE Exchange turned out even more exciting when the com- tres popularly known as Kisementi. since inception. Customers can now walk into pany extended a Samsung Galaxy prize to The new branch will offer Bank Trans- branches in UTC Building Kigali city and 28 year old Rwakunda Bodwin, a Rwandan fers, Instant Money Transfers and Forex Kisimenti Remera, to address their multiple winner in UAE Exchange’s weekly social net- & Bill Payments. The branch was inaugu- financial requirements like money transfer, work draws where customers compete for nu- rated by Mr. Unni Krishnan P.B., Director currency exchange and bill payments. merous prizes.

Kisimenti Branch Innaguration UAE Exchange Team

78 MAY-JUNE 2014 ISSUE 40 www.hope-mag.com Special Feature UAE Exchange opens another branch in Rwanda

July 14th was a very exciting day for the UAE Exchange team in Kigali as the hardly three years old company opened doors of its second branch in the Rwandan capital.

Kisimenti Branch Innaguration UAE Exchange Team

78 MAY-JUNE 2014 ISSUE 40