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FREECOPY

Telling Rwanda’s Story

OCTOBER 2015 ISSUE 57

Magazine

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Special

Report

on Ease of Doing

Business Reforms

Making Rwanda attractive to Investors

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TRANSFORM AFRICA SUMMIT 2015

10

HIGHLIGHTS

Probably the major milestone in broadband investment has been the joint venture between the Rwandan government and Korea Telecom’s Olleh Rwanda Networks that has seen the introduction of the Fourth Generation Long Term Evolution (4G LTE) internet in the country. Today, thanks to 4G LTE, Rwandans and businesses can experience faster internet speeds to facilitate them in their daily trades as well as access value added services like entertainment using internet television and enhanced security using 4G LTE CCTV Cameras.

TAS 2015


7 EDITORIAL We deliberate, yes, but we must implement

10 RDB TRANSFORM AFRICA 2015

10 The significance of Internet Connectivity

12 Rwanda boosting e-governance with IREMBO online portal

16 Public-Private collaboration

18 GLOBAL INNOVATION and SME platforms

22 ICT importance in youth Job Creation

28 AA UNI RWANDA: Creating custom made IT Solutions for your business

30 RDB EASE OF DOING BUSINESS REFORMS

30 Making Rwanda attractive to Investors

31 Starting a Business

34 Online Registration

35 Issuance of Construction Permits

37 Getting Electricity

40 Getting Credit � Access to finance & financial inclusion.

41 Protecting minority Shareholders � Ease of Paying Taxes

CONTENTS

30 RDB 49 DHL RWANDA 50 AMEKI COLOR

42 Enforcing contracts � Ease cross-border trade

43 Resolving insolvency

46 RDB Doing business in Rwanda now easier

49 DHL celebrates customers, staff in eventful Customer Service Week

50 AMEKI positions in Rwanda market as a model exhibitor

52 How to invest in Stocks on RSE

53 SERENA HOTELS Offer Lake Kivu Serena package for Transform Africa Delegates

www.hope-mag.com 7

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

ReberoDaniel

TEAM

Albert NdataArmand Muganga

Benigne MugwanezaGahima Vital

George KalisaManzi Joseph

Matthew RwahigiRumanzi AbrahamSharon Umunyana

Shema LeonardRebero Daniel

DESIGN & LAYOUTDani K.

PUBLISHED BYHope Magazine Ltd,

ADVERTISING & GENERAL INQUIRIES

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COPYRIGHT 2013 reserved by Hope Magazine

Hope Magazine a monthly Magazine is published by Hope Magazine Limited.

All rights reserved. The opinions expressed in the magazine are not

necessarily those of the editors and publishers of

Hope Magazine.

We deliberate, yes, but we must implement

I n the recent past, a good will of efforts and vast resources have been directed towards transforming the world. Global efforts and commitments are getting much prominence; the Millennium Development Goals, Sustainable Development Goals, Climate Change resilience efforts, and a host of other innovations and creations.

At the core of all this is sustainably improving the living standards of citizens of the world; building foundations for development without compromising the future generations. The Transform Africa Conference 2015 hosted by Rwanda is another way of responding to the need for this much needed transformation. It has become to be accepted that we, in Africa, can find solutions to our incessant problems that have afflicted humanity for ages. There’s a fair abundance of opportunities that we can together explore and propel our economies into the future.

Prospecting and discovery of minerals and effective exploitation of resources, getting agriculture to the fore through intensification and modernized practices, tapping from the huge potentials in digital services and digital commodities, incubating and nurturing Small and Medium Enterprises and ensuring efficiency in the use of resources by putting in the employ acceptable tenets of good governance.

In Rwanda, we have decided to embrace investments by opening doors to the world investors, easing the doing business environment, promoting a systematic transition from informal to formal trade, putting SMEs on a high pedestal, invested in soft and hard infrastructures with due emphasis on broadband connectivity that has greatly increased ICT use driven by innovation that is largely driven by Internet and mobile technologies.

In this Transform Africa Conference, much, again, is to be discussed, explored and deliberated upon. What is more important, however, is that all this should be implemented dedicatedly by the respective governments and institutions. Welcome to the Transform Africa summit.

PUBLISHER'S WORD

We appreciate your feedback. Please keep sending more on [email protected] or visit www.hope-mag.com, to post your comment on any published story. We shall pick it and respond to you asap!

COVER PAGE Making Rwanda

Attractive to Investors

T he studies show that for every 10% increase in Broadband penetration, there is a 1.38% increase in Gross Domestic Product per capita growth. According to the last quarter’s figures from the Rwanda Utilities Regulatory Authority (RURA), Rwanda’s internet penetration currently stands at 31.5%.

X Broadband today is a tool being used to deliver data and foster innovation. It is also one of the main drivers to achieving Rwanda’s goal to become a knowledge-based economy. Studies have demonstrated that investments in increasing broadband penetration generate positive returns with significant economic growth and development

Showing thesignificance of

Internet Connectivityin building a knowledge

based economy


This is mainly shared between the three telecommunications companies- Airtel, Tigo and MTN Rwanda who offer mobile internet services to their telephone subscribers while the other firms mainly provide broadband to offices. Investment in broadband in underserviced areas of the country by the

Rwandan government and Korea Telecom’s Olleh Rwanda Networks that has seen the introduction of the Fourth Generation Long Term Evolution (4G LTE) internet in the country.

Today, thanks to 4G LTE, Rwandans and businesses can experience faster internet speeds to facilitate them in their daily trades as well as access value added services like entertainment using internet television and enhanced security using 4G LTE CCTV Cameras.

Speaking to the press recently, the Minister of Youth and ICT, Jean Philbert Nsengimana said the goal is to drive internet accessibility to 95 %of the population within the next three years, if the cost of accessing broadband are lowered along with prices of handsets and computers then many people will be able to access the internet.

It is believed that access to broadband will greatly enhance the government’s capability to communicate within government institutions, and with its citizens. In addition, it will also enable Rwandans to access services online for informational and transactional purposes which will drive down the cost of service delivery.

For the education system, internet will enable delivery of digital content for instruction in schools and colleges, irrespective of their location. This will all lead to a knowledge-based economy as mentioned.

various internet service providers (ISPs) in Rwanda is playing a significant role in bridging the digital divide between rural and urban areas thus creating social equity, and ensuring equal access and connectivity for all. Probably the major milestone in broadband investment has been the joint venture between the

Minister of Youth and ICT, Jean Philbert Nsengimana said the goal is to drive internet accessibility to 95 per cent of the population within the next three years, if the cost of accessing broadband are lowered along with prices of handsets and computers then many people will be able to access the internet

TRANSFORM AFRICA 2015SPECIAL FEATURE

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Gatsibo, Irembo

platform training

X In August this year, Rwanda commissioned its first online portal for e-governance widely known in the Kinyarwanda dialect as ‘Irembo’ which is loosely translated as ‘gateway’ in English The portal is meant to offer e-government solutions that fast-track service delivery and increase efficiency in public institutions.

C lement Uwajeneza, chief executive of Rwanda Online Platform Limited (ROPL), the technology company that is implementing the project said when the platform went live, that “Irembo,” which means gateway

or door, would have most services available on

www.irembo.gov.rw to everyone. Uwajeneza said as a one-stop portal for e-Government services, Irembo acts as the gateway to all Rwandan Government services and provides the services with ease, efficiency and reliability. So far, five services are available online namely;

application for a birth certificate, registration for provisional or definitive and supplementary driving license tests, and application for a criminal record. ROPL entered a 25-Year Public Private Partnership with the Government of Rwanda to digitize all Government to Citizen

Rwanda boostinge-governance with

online portal


and Government to Businesses services, with 100 services coming online in the next 3 years. With Rwanda continuously striving to become a knowledge-based economy as well as its high involvement in the ICT field, Rwanda Online Platform Limited’s vision is to become the catalyst of the transformation of Rwanda through technology.

“We have set out a mission to “Build and operate a platform that enables the automated and online provision of services to citizens and businesses”,” reads a statement on the company’s website. The company seeks to provide Rwandan Citizens and Businesses an improved interaction with the Government; to enable efficient government service delivery, and to pursue continuous innovation and improvements in electronic service delivery.

A number of Rwandans have expressed the relief the online portal has brought to them, providing them an easier way of accessing government services and paying for them. “Many people had to travel to Kigali to get access to some services but with Irembo, many of these services are accessed online. We are happy to bridge this gap in service delivery and

the trainings on the platform’s use have equipped us with everything we need to know about it,” said Ephraim Nkurunziza, the managing director of Mayange Village, a knowledge hub centre in Bugesera district in Rwanda’s Southern Province in a previous interview.

Nkurunziza, who estimated the number of residents in his village to be 30,000, said about 19,000 of them will use the services, a prospect that excites him. The government through the Ministry of Youth and ICT, together with ROPL and Rwanda Telecenter Network (RTN) has been carrying out training of telecenter managers on the use of the Irembo platform.

The Rwanda Development Board (RDB), in 2010 introduced telecenters in every district of the country which had a mandate of promoting the innovative use of ICTs in Rwanda’s rural areas.With the coming of Irembo, the trainings are aimed at equipping the telecenter managers with the skills to facilitate citizens to access e-government services currently available on the Irembo platform. “We are looking at re-branding existing ICT access points under the RTN flagship into ‘Irembo centres’,” said Paul Barera, the executive director of RTN to the

media recently.This branding exercise will help to promote and re-use private ICT access points as recognised places where citizens can converge to access e-government services. Apart from the rebranding, ROPL is also introducing different payment options on the Irembo portal.

In the same month of the portal’s launch, telecommunications services provider, Tigo Rwanda partnered with ROPL to provide an e-government services option on Irembo using Tigo Cash, the telecom’s mobile financial wallet. Tongai Maramba, the Tigo Rwanda chief executive officer, said the firm’s over 2.5 million Tigo Cash subscribers will save time while paying for e-government services on Rwanda Online Platform.

Maramba added that the addition of Tigo Cash on the modes of payments for e-Government services demonstrates the telecom firm’s commitment to the delivery of a cashless economy. In order to use the platform, a person who successfully applies for an e-government service from the Irembo payment portal, receives a code which they use on their mobile phones for confirmation of payment. We shouldn’t forget that this is just the start for Irembo. Much more is coming our way!

TRANSFORM AFRICA 2015 SPECIAL FEATURE

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X When it comes to any African country’s economic development, the question that always comes up in each and every sector is how governments and private sector companies can work together to accelerate their development. The use of Information Communication Technologies (ICTs) has always been a crucial answer to most challenges but has always been costly for both government institutions and private firms to invest in.

Maurice ToroitichKCB Bank Rwanda Managing Director

Maurice Toroitich, the Chairman of the Rwanda Bankers Association and KCB Bank Rwanda Managing Director said in a recent interview that banks were investing in putting up more Automated Teller Machines (ATMs) around the country together with other banking technology which have increased their cost of operations. However, banks will achieve an optimum level of investment at some point and begin to derive output from the investments,” Toroitich explained.

Public-Private collaborationAccelerate the implementation and

impact of Rwanda’s digital strategies


T ake a look at the commercial banks in Rwanda, most have, over the past few years had significant reductions in their net profit margins mainly due to their heavy investments in ICT. But the returns of such investments are

always high, most experts can attest.

Maurice Toroitich, the Chairman of the Rwanda Bankers Association and KCB Bank Rwanda Managing Director said in a recent interview that banks were investing in putting up more Automated Teller Machines (ATMs) around the country together with other banking technology which have increased their cost of operations.

However, banks will achieve an optimum level of investment at some point and begin to derive output from the investments,” Toroitich explained. He noted that the sector’s growth will be driven by the more efficient facilities like ATMs, mobile and Internet banking, which will also therefore entrench a cashless economy culture in Rwanda.

Other sectors like insurance companies are also investing in ICT infrastructure to ease their ways of doing business. The government too is investing heavily in ICT. Take a look at the electronic billing systems for the Water and Sanitation Authority (WASAC) and the Energy Utility Corporation Limited (EUCL). However, a better solution lies in Private Public Partnerships if Rwanda and other African countries are to progress with digitising their economies.

In the last Transform Africa Summit that took place in October 2013, more than 1,500 participants, including heads of state from seven African countries and executives from Microsoft, Samsung, Facebook and IBM graced the meeting and discussed ways on how Africa can leverage on ICTs to transform their economies.

“For us in Visa we consider public-private partnership a driver to achieve sustainable ICT growth. This partnership is very crucial for a country’s success,” said Kamran R. Siddiqi, Visa Group executive for Central and Eastern Europe, Middle East and Africa. “There are many things we are doing in Rwanda courtesy of public-private partnerships; we have launched M-visa, and have tremendous support here to make it a reality,” Siddiqi said then.

Indeed, solutions such as mVisa have been a revelation to the national economy by increasing financial inclusion in the country and building on the country’s mandate of having a cashless economy by using electronic payment channels,

which leaves banks to have higher cash deposits for private sector lending. Another example is that of the 2013-announced Korea Telecom and Rwanda government partnership that has led to today’s unequalled Fourth Generation Long Term Evolution (4G LTE) service offing in the Rwanda. Korea Telecom, through their Rwandan company Olleh Rwanda Networks, has been able to install and activate a wide-ranging high-speed

broadband network and also lead the extension of the nation’s online services capability, which are essential to achieve Rwanda’s goals in the ICT sector. The partnership now presents an unprecedented Public-Private Partnership which participants at this year’s Transform Africa Summit will be willing to emulate in Rwanda and beyond.

Korea Telecom, through their Rwandan company Olleh Rwanda Networks, has been able to install and activate a wide-

ranging high-speed broadband network and also lead the extension of the nation’s online services capability, which are essential to achieve Rwanda’s goals in the ICT sector


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Their adaption of ICTs is testament of how technologies have the potential of ushering Africa into the global digital economy. Most businesses today revel at the joy of being able to access all their office work saved on their computers at home, while on the road or from anywhere in the world. Working smart with the new age technologies, like cloud-based

S mall and medium enterprises (SMEs) haven’t been left behind either. Taking a look at Rwanda, SMEs have been able to tap Information Communication Technology (ICT) platforms in their business administration, creating new

markets and remaining on good terms with the government – by paying taxes electronically.

platforms enable businesses, especially SMEs, to access their documents from anywhere and at anytime, saving them from unnecessary inconveniences. Cloud refers to Internet based services that provide the ‘future’ of application delivery. In Rwanda, cloud-based technologies are slowly, but surely changing the way businesses are managed.

Advancing

Global Innovation and SME platforms

X Exponential technologies powered by broadband connectivity such as the Internet of Things (IoT) and Cloud Computing are creating unprecedented new

opportunities across the world, both in private and public sectors. Big corporations have been able to tap these innovative platforms to create efficiencies in their

businesses, thus leading to their sustained growth over the years.


Traditionally, most enterprises have used a mix of different solutions to manage various functions and processes. This has entailed the use of a unique software application to manage each business function. In a recent interview, Elsante Mnzava, the marketing and sales leader of Tanzania-based Mkenga Group Limited, said that firms are finally ‘seeing the light’ and opting for cloud-based solutions.

“Enterprises in Africa, especially mid-tier manufacturers, have begun to consider enterprise cloud-based business management platforms or cloud-based Enterprise Resource Planning (ERP) solutions, as they are most commonly known, that are hosted on the ‘cloud’.Mnzava argued that what is driving the adoption of cloud-based ERP systems in Rwanda and the region is the improving broadband quality and access “which makes it possible for businesses to harness cloud-based solutions”.

Last year, Rwanda launched its Fourth Generation Long- term Evolution (4G LTE) Internet service, an opportunity for businesses to improve their Internet browsing speeds and increase their systems’ uptimes. Mnzava added that many companies in the region are growing (in size and complexity), necessitating integrated cloud-based solutions.

Mnzava argued that what is driving the adoption of cloud-based ERP systems in Rwanda and the region is the improving broadband quality and access “which makes it possible for businesses to harness cloud-based solutions

Benefits � According to Mnzava, companies using ICT solutions, cloud solutions to be specific, are able

to get real-time and a 360◦ view of their entire business since all key processes and functions are managed by one system, hosted in the cloud.

� They also have more streamlined and dynamic processes. Firms and staff are able to access their documents anytime and anywhere.

� IT solutions also offer significantly lower cost of operations as physical servers and installed software are no longer needed.

� Lastly, companies have the ability to grow and change their business models without having to worry about any attendant hardware costs.

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X Information Communication Technology (ICT) related services have become a key source of employment for Rwandans especially the youth, providing alternative sources of income that are more different and innovative from the renowned white-collar jobs dreamt about by the several university graduates most of whom, unfortunately always end up not getting them.

T he mobile network operators, banks and other companies that are today leveraging on ICTs for efficient service delivery, have gone on to introduce different agency business models that many Rwandan youths have been able to

take advantage of to sell the companies’ products and services in order to earn a living.

Taking a look at Jean Bosco Niyikora’s story, 26,a third year undergraduate student at the Independent Institute of Lay Adventists in Kigali (INILAK), his has been a story of resilience and innovation that has seen him raise money to pay for his university tuition fees through airtime vending and providing Airtel Money financial services. He, like most other youths, never thought about setting up a business while growing up.

The computer engineering student says he was ‘forced’ to become an entrepreneur to raise money for tuition fees.

“The thought of dropping out of school was too scary to handle. So, I vowed to do all in my power to raise the fees myself. Though it was very challenging, I believed it was a better option than dropping out of university,” Niyikora narrates the origin of his inspiration to join the business world.That was in July 2013. Presently, Niyikora has three outlets and is also an Airtel money agent along the Sonatubes street in Kicukiro District.

Move pays off handsomely Niyikora could have stayed home, lamenting about his misfortune and the prospect of leading a doomed life as a university dropout. He, however, decided to handle the challenge head-on and turned it into an opportunity.

“My relatives and friends thought I was out of my mind, arguing that it was an odd job for a university student. I ignored them and focused on my goal of raising money to pay tuition fees,” he narrates. Thanks to his persistence, Niyikora has emerged a much stronger person, rising from scratch to the success he enjoys today as one of the well-known telecom services’ provider. “I started with just five airtime cards after a friend convinced me that I would make ‘good’ money if I persisted.

So, I decided to give it a try...after all, there was more to gain than lose,” he says. Like Niyikora, many other youths are seeing the unexplored opportunity in vending telecommunications, agency banking, insurance services and many other electronic channels of service delivery. Companies, especially the financial services providers have realised a great need to reach the financially excluded using technology.

ICT important in facilitatingyouth Job Creation


Setting up physical branches in the districts has proven to not only be costly for firms but also not effective in reaching people who are under-served or not served at all in regards to different services like financial that are important. The solution for this, as has been noted in Rwanda, is leveraging on the ever increasing and high mobile phone penetration levels and high coverage of mobile networks to most areas of the country.

According to latest f igures from the Rwanda Utilit ies Regulatory Authority (RURA) show that mobile phone penetration currently stands at more than 74% of Rwanda’s estimated 12 million population and mobile network coverage at around 90% geographical reach of the country.This presents tremendous opportunity for companies to purchase Point of Sale (PoS) devices and individuals who have mobile phones use them to access different company and government products and services.

Where the youths come in to earn a living from this is in becoming the agents rolled out in as many areas of the country, where Rwandans can easily carry out cash in and cash out transactions to their financial wallets, make utility payments, buy different products and services, save and borrow much more easily. These examples together with other options like paying for government services and dues, enable Rwandans youths earn a living through commissions given to them per transaction which accumulate to larger incomes when they execute as many

transactions every day.

Different policy makers and ICT experts constantly note that ICTs should be included in youth employment and entrepreneurship strategies for three key reasons:

� More jobs and businesses require ICT skills

� ICTs are transforming the way young digital entrepreneurs do business

� There is an explosion of online learning opportunities and resources for job seekers and digital entrepreneurs

Indeed, ICTs are transforming old market sectors including farming, manufacturing and the health sector, and creating new market sectors that didn’t exist even a few years ago, like social media management and the mobile applications economy.

The demand for both basic and more advanced ICT skills cuts across all sectors, from agriculture and construction to education and service industries to ICT jobs themselves, in both the developing and developed countries. Basic digital literacy is increasingly required just to find job listings and apply for a job.

New ways of working and learningThe 2014 International Telecomunications Union ( ITU) report themed, Digital Opportunit ies: Innovative ICT Solutions for Youth Employment, carries an important message for youth, the private sector, academia and government policy makers seeking to address youth unemployment: youth need digital skills if they want to get a job or start a business. Digital literacy is effectively a prerequisite for employment and starting a business in all countries, and ICTs should be prioritized in all national youth employment and entrepreneurship strategies.

The report also highlights new ways digital entrepreneurs are working, such as tech hubs or application development labs. These are business incubation spaces that provide solutions to young digital entrepreneurs: they provide Internet connectivity, support structures (including shared office space), mentorship and collaboration. Tech hubs and app labs are springing up throughout the developed and developing world with Rwanda having its Kacyiru, Kigali-based K-Lab and think spaces. The report recognizes that youth can obtain vital digital and business skills online.

The report documents the explosion of new learning opportunities that can enable youth to get the right skills, including Massive Open Online Courses (MOOCs), open courseware and mobile learning as well as hackathons and mobile app competitions. All of these opportunities point to the need to promote collaborative learning in digital skills development strategies.

T he re po r t i nc lu d e s a n u m be r of po l i c y recommendations, including ensuring digital skills and collaborative learning is part of school curricula, hosting innovation and co-working spaces for entrepreneurs and funding app contests and competitions.

ITU’s Telecommunication Development Sector (BDT) has created a new Youth Employment and Entrepreneurship Resources Database to assist young people to find and use these digital opportunities. This database contains resources for finding employment, becoming an entrepreneur, learning technical and soft skills, finding a mentor, searching for funding, networking, and many other valuable services.

www.hope-mag.com 23


Available at all Engen Petrol Stations, Supermarkets and SafeGas points of sale.


AA UNI Rwanda: Creating custom made IT Solutions for your business

OUR PRODUCTS AND SERVICES

AA UNI Rwanda provides a wide range of Information technology-related products and services including web hosting and designing, consulting, business automation software and ERP, fiscal products and devices, computer hardware, per ipherals, accessor ies and consumables. Our products and services are in three major categories, Software, IT Services and IT Hardware.

� Electronic Billing Machines ProductsIn 2013, AA UNI RWANDA LTD successfully received certification from Rwanda Revenue Authority (RRA) for supplying Electronic Billing Machines (EBMs) to taxpayers manufactured by Geneko – Serbia. Today we have more than 3,000 taxpayers in Rwanda using our EBMs, which accounts for almost 40% of the market share.

1. Sales Data Controller (SDC-GWR)2. Certified Invoicing System

2.1.1 . Electronic Cash Register (C IS - SuperCash Economic) or2.1 .2. Point of Sales Software (C IS - RwandaPOS)

3. Integration with any existing Accounting Software or ERP or Management system.

� BUSY is an integrated business accounting software for Micro, Small and Medium businesses. With over 120,000 installations (over 600,000 Users) worldwide, BUSY is one of the leading accounting software in the world.The salient features of BUSY are:

Financial Accounting (Multi-Currency) Inventory Management (Multi-location) Production / Bill of Material Sales / Purchase Quotations Sales / Purchase Order Processing Fully User-configurable Invoicing User-configurable Documents / Letters User-configurable Columns in Reports CST / VAT Reports (State-specific) Mfg / Trading Excise Registers Service Tax & TDS MIS Reports & Analysis

� IDS Next for Hoteliers – be it a chain or independent hotels, resorts or boutique hotels, serviced apartments or limited serviced apartments, restaurants or lounges, turn to IDS Next for robust solutions built for their niche needs.

IT SERVICES1. Networking Services2. Computer & ICT equipment maintenance

� IT Hardware Sales & Services1. Servers & Data Storage2. Printers (Black and white, Color) & Scanners3. Copiers4. Desktops & Laptops

5. Monitors, Keyboards, mouse etc.,6. Related cables7. Cartridges, Toners, other consumables8. Computer Stationary9. All other computer accessories and peripherals

AA UNI RWANDA Ltd’s goal is to improve the work efficiency of the relevant institutions and to facilitate the process of monitoring the cash flows and electricity consumption. The company has an experienced team of business and engineering consultants who also assure of their professional support and our product maintenance through their whole lifecycle starting from the moment of sale and continuing until the end of their usage. Our support department provides 24/7 online assistance to our clients. We strive to meet the customers’ requirements and facilitate their work.

T he global marketplace is constantly evolving and AA UNI RWANDA LTD is offering custom-built IT solutions to help companies focus on what they do best, while functioning better and driving business. Established in 2012, AA UNI RWANDA LTD has a rich history of innovation, expansion and growth. Right from its inception, the emphasis was always on continuous Research and Development and team work to ensure the products delivered are feature-rich and are based on state-of-the-art technologies.

AA UNI RWANDA SPECIAL FEATURE

RDB Online ServicesBusiness Registration

Application of Construction PermitsInvestment Registration

Mortgage Registration ( Movable and Immovable Property)Paying of Taxes

Filling of Court CasesVisa Application

www.org.rdb.rw

� Free � Faster �

Convenient

Making Rwanda attractive to Investors

R wanda has, since 2008 worked consistently in improving its environment for companies to do business, facilitating investors to put their money to good use in the country’s different economic

sectors. Last year reforms led to Rwanda being ranked the third easiest place to do

business in Africa and 46th globally in the World Bank’s 2015 doing Business report.The Doing Business reforms focus on 10 main areas that affect business which include, the ease of starting a business, obtaining construction permits, getting electricity, registering property, getting credit, protecting minority investors,

paying taxes, trading across borders, enforc ing contracts and resolv ing insolvency. Th is year, the Rwanda Development Board (RDB), the government agency behind the constant reforms has even worked on newer reforms on the thematic areas, further making Rwanda’s business environment more conducive.

DOING BUSINESS REFORMS


These procedures include obtaining all necessary licenses and permits

and completing any required notifications, verifications or

inscriptions for the company and employees with relevant authoritiesT his indicator looks at the Procedures

officially required, for an entrepreneur to start up and formally operate an industrial or commercial business, as well as the time and cost to complete these procedures and the paid-in minimum capital requirement .

These procedures include obtaining all necessary licenses and permits and completing any required notifications, verifications or inscriptions for the company and employees with relevant authorities.

The ranking on the ease of starting a business, according to the World Bank is the simple average of the percentile rankings on its component indicators. However, in Rwanda’s case, the idea of creating a conducive business environment starts with the ease of registering a business and despite the fact that the idea of starting a business requires courage and strength from those who intend to start their respective business ventures globally, RDB has consistently made it easier for all those that want to register businesses to do so in the shortest period of time.

This year, RDB has made it even much simpler With this year’s reforms, there has notably been an upgrade of the online business registration system and removal of unnecessary requirements by RDB.

How fast can you start a business in Rwanda

Starting a Business

www.hope-mag.com 31

EASE OF DOING BUSINESS REFORMS SPECIAL FEATURE

Dear Entrepreneurs,

I write to express my deep gratitude for your

participation in the development of kountable in

Rwanda and to give you an update on what has

happened in the 90 days since we launched our

services. First, the skill, integrity, and enthusiasm

of the entrepreneurs we have had the pleasure

to partner with has been absolutely impressive.

In the last 90 days, we have partnered in over

30 successful projects bringing almost $5MUSD

to deliver much needed medical equipment to

hospitals, educational materials for schools,

enhanced capabilities to manufacturers,

and critical ICT infrastructure to schools and

government. We anticipate continued growth in

Rwanda and look forward to a prosperous

future together.

We have also learned and can now prove that we’re

onto something big, and that the solution needs to

be much bigger than our technology platform alone.

The sheer volume of your response has helped us

to activate the investment community here in the

United States and we continue to tell your story to

help address this need. We anticipate that this will

result in much larger amounts of funding becoming

available in the coming months, which will allow us

to support more deals and more entrepreneurs in

Rwanda. Still, we realize we need to do more. We

are returning to Kigali in the coming weeks to meet

with local banks in an effort to engage them in a

collaborative solution that will activate the local

financial community to solve a local problem. From

there, we will be traveling to Europe to tell your

story to investors there. Our successes together

to date make it a very attractive story to tell, so

we are optimistic. I am proud that our story began

in Rwanda and find strength in knowing that our

earliest partners in Kigali will continue to deliver on

our partnership and we commit to doing the same

for you.

Sincerely,

This period has also been an intense time of

learning and growth for us, as the projects you’ve

brought us and the extent of the demand for what

kountable offers have proven far larger than our

initial expectations. During the weekend of our

launch, over 200 projects were submitted and

we met more qualified entrepreneurial partners

than we could handle in a brief span of time. We

are now much more aware of the potential and the

magnitude of the challenges we need to overcome

together. You have helped us understand how we

can improve our processes and communication to

better serve your needs and we have been listening

and making changes on a daily basis.Chris Hale

CEO kountable inc.

been registered online since February 2014. In addition to that, companies are able to acquire their registration certificates through emails upon registration. From a bigger perspective, Rwanda is now one of the top reformers when it comes to the registration of business activit ies and Intellectual Property rights.

Ease of business registration spells many benefits, like ensuring that businesses benefit from the protections provided for by the business laws, such as limited liability; gaining access to credit from financial institutions and protecting the owners of intellectual property from unauthorised use of their creations.

It is also important for the development of the country to have easy business registration processes because it enables the transition of the economy from being predominantly informal to formal. Furthermore, it inspires trust in the registered businesses’ customers because it is proof that they are approved trading companies.

X The online system has been simplified by introducing an interactive step by step process aimed at making online business registration more user-friendly. People registering businesses usually have to only follow the link http://org.rdb.rw/busregonline to access the new system and process all business registration applications free of charge.

receiving help in the shortest time.Other unnecessary requirements that have been removed this year by RDB include the requirement to obtain a Tax Identification Number (TIN) certificate from Rwanda Revenue Authority (RRA) and the requirement to have a bank account at the time of Value Added Tax (VAT) registration.

Today, business and VAT registration are conducted by RDB. The move to have all businesses register easily is not only reducing the time but also the costs, thus enabling more business start ups to register as faster as possible. This has an economic implication including expanding the country’s tax base and creating employment opportunities. For example the time to start a business has reduced from 6.5 days to 3.5 days using World Bank 2014 methodology, and remains 6 hours as previously established by the Government of Rwanda. According to figures from Rwanda development Board, more than 90% of total businesses have

The following are the some of the key changes to the system:

� The system allows one to create their own username and password after they have entered the required information.

� The Memorandum of Association will be generated automatically by the system after you have entered all required fields.

� Simplified filing of annual returns and financial statements.

The team at RDB is also online full time to provide any assistance/ clarification. People doing the registrations can email their queries to [email protected] and will be sure of

Online Registration

The team at RDB is also online full time to provide any assistance/ clarification. People doing the registrations can email their queries to [email protected] and will be sure of receiving help in the shortest time


T his indicator looks at the number of reforms including how long it takes for one to apply and get a construction permit, carry out site inspections, the time it takes for one to get their occupancy and freehold titles among others. In fact, the World Bank 2015

report placed Rwanda best in this area. The survey indicated that Rwanda made obtaining construction permits easier with reforms that saw its previous rank of 93rd moving 59 steps up to 34th globally.

How Rwanda has eased the process of getting construction permits this year

According to RDB, getting construction permits is now easier due to the following reasons; removal of cost of survey plan and reduction of construction permit procedures from 10 to 5.

Below are streamlined procedures

� Submit an online merged application for construction permit, utilities and Environment Impact Assessment (EIA) to the One Stop Center (ONE STOP CENTRE)

� Submit an online merged application for construction permit, utilities and EIA to the

Issuance of

Construction Permits

One Stop Center (ONE STOP CENTRE).

� Request and receive a foundation inspection. This is carried out during the construction period

� Request online and receive a joint and final inspection by relevant authorities coordinated by ONE STOP CENTRE.

This is carried out after construction before issuing an occupation permit.

� Request and receive an occupation permit and freehold title using online facility.

� Obtain water connection.

Other reforms in this area have also included the introduction of digital signature on building plans at One Stop Centre, obtaining occupation permits and freehold titles has reduced from 30 days to only 3 days and for free of charge as a result of the online filing, the number of days to obtain water connection has reduced from 30 days to 15 days. The office of the city engineer was created to oversee some of the activities of the One Stop Centre, Engineers and Architects at the One Stop Centre have been accredited by the relevant authorities, the Ministerial order

According to RDB, getting construction permits is now easier due to the following reasons; removal of cost of survey plan

and reduction of construction permit procedures from 10 to 5


www.hope-mag.com 35

and timelines for obtaining construction permits. The office of the city engineer which now oversees the activities of One Stop Centre will enhance accountability and efficiency in One Stop Centre by ensuring the staff reviewing and approving applications and inspections to do their work diligently and the accreditation of One Stop Centre staff further enhances construction standards as all approvals will now be done by qualified and professional staff.

establishing a new building code and urban planning code was published in the official gazette and the removal of cost to obtain water connection.

� Resulting impact

The above construction permit reforms have led to a significant reduction in time. Due to streamlined procedures, the total number of days has reduced from the counted 77 days to 27 days. There has also been a reduction in cost by $500 as the survey plan has been removed as a requirement.

Other results include; an additional reduction in cost by Rwf 445,200 (US$ 600) for obtaining water connection, an improvement in the quality of building standards and enhanced efficiency. in the One Stop Centre, the introduction of digital signature has resulted into removal of the procedure to obtain physical stamps on building plans at One Stop Centre, the codes have put in place clear guidelines for carrying out the construction activities and will contribute greatly to creating efficiency and improved standards and diligence in the construction industry.

Some of the guidelines of the building code include establishing quality controls at different stages of construction, assigning liability to professionals for structural defects in complete buildings, providing requirements

Online application for construction permits introduced to boost convenience


Government has put up a one stop centre where the business community including investors can access their titles more efficiently. More than 50 people are now accessing their titles certificates through the centre.

The Ministry of Infrastructure and electricity bodies, Energy

Development Corporation Limited (EDCL) and the Energy Ut i l i ty

Corporation Limited (EUCL), which fall under REG, are now working tirelessly,

in order to beat the target. To note, the country’s hydro electricity generation

capacity currently stands at 97.37 Mega Watts, thermal power is at 51.7 Mega Watts,

Methane at 3.6 Mega Watts and 8.75 Mega Watts produced from energy solar.

Overall, Odette Mbabazi, the EDCL managing director says the national power generation

capacity is expected to increase by 61.5 Mega Watts by the end of this year, when projects, like

the Kivu Watt (25MW), Gishoma Peat Power Plant (15MW) and Giga Watt solar power plant (8.5MW),

are connected on onto the national grid. Other efforts to increase power supply include importing 30 Mega Watts from Kenya – expected by the end of the year – and another 400 Mega Watts from Ethiopia by 2018.

The Government has also allocated Rwf135 billion this year to the energy sector to increase electricity supply to spur industrial growth, especially targeted for the free trade zone and the country’s electricity roll out plan.

A nd on this particular indicator the country ranks well in the World Bank 2015 Doing Business report, moving from 79th place globally to 62nd. This happened as a result of the government waiving all fees for completing a new electricity connection, including the security deposit.The

government understands the importance of not only increasing power generation but also access to electricity.

“It is the essential element that will help drive Rwanda’s economic development at least by enabling the private sector to manufacture more goods,” said James Musoni, Rwanda’s Minister for Infrastructure in a recent interview.Rwanda is targeting generating at least 563 Mega Watts of power by 2018, increasing access to electricity to about 80%. And to achieve this target, the government did not hesitate to split the Energy Water and Sanitation Authority (EWSA) last year, forming different private arms to allow efficiency in the development and provision of utility services to Rwandans and businesses.

EWSA was split into the Rwanda Energy Group Limited (REG Ltd) and Water & Sanitation Corporation Ltd

(WASAC Ltd). And since this particular reform came into place, the country’s power generation

capacity has since increased to 166 Mega Watts from 110 Mega Watts in 2013.

Getting Electricity

X This indicator looks at the ease of accessing electricity which includes how long it takes for one to apply for electricity connection, obtaining site inspection and actual purchase of installation equipment.


www.hope-mag.com 37

Access to finance & financial inclusion

T his has largely been possible because of the reforms targeting individuals and corporate companies listed at the private credit bureau known as Transunion Rwanda (formerly Credit Reference Bureau). Transunion Rwanda introduced a credit scoring system in the country which provides a better guiding methodology for banks to

issue affordable credit depending on one’s credibility that is measured by the score. This new method was implemented from May this year and allows one to gauge his or her credit online!

Today, the number of individuals and corporate firms listed on the credit bureau has increased from 1,480,403 in December 2014 to 1,528,611 in May 2015 and the coverage improved from 22.6% in December 2014 to 23.06% at the end of May this year. With the new credit score system, it will provide lenders a guide, indicating which clients are low or high risk, a development that will enable lenders to extend loans to borrowers depending on their risk profile. The credit rating will therefore, help lenders make informed decisions concerning borrowers and bank clients to bargain for lower loan interest rates.

Karim Tushabe, the Head of Doing Business Unit at RDB, in an interview with the Hope Magazine on the new credit scoring system, explained that with credit scores, if one went to seek a loan when they have good credit record and points of say 90 points, while a defaulter has 60 points, then the former stand better chances of accessing credit more affordably. He said with time, as the score system grows in use in Rwanda, there will be need to lending institutions to request for collateral before lending, thus increasing access to finance..

T he Government of Rwanda has set the target of formal financial inclusion at 80% of the adult population by 2017 and 90% by 2020. In fact according to the National

Bank of Rwanda, efforts to support initiatives towards achieving these targets on financial inclusion through the development of microfinance institutions are ongoing.

The extension of the bank network and branchless banking solutions, and the use of information technology, particularly mobile financial services are some of the initiatives geared towards increasing access to credit.Credit to the private sector according

to the National Bank of Rwanda (BNR) latest statistics has since increased by more than 18% to about Rwf1073.3 billion during the first half of 2015.As a result, Commercial banks and other f inancial institutions have remained adequately capitalised with at least more than 24.3% and 31.4% for microfinance institutions against the central bank’s regulatory minimum of 15 per cent.

Non-performing loans have also been dropping in the second quarter ending June, with the ratio in commercial banks averaging 5.9 per cent from 6.6 per cent last year, while those of microfinance firms was at 7.4 per cent from 7.6 per cent, in the same period.

Since its inception in 2011 BDF mainly works with coopera tives and associations that come up with viable business proj ects especially in rural areas to ease access to credit and the institution has been providing financing loans to SACCOs in the country

X The country has made great strides in regard to this particular area and now ranks 4th best in the world from 10th in 2013, according to the latest World Bank doing business report.

Getting Credit


Just to mention, the World Bank’s 2015 report ranked Rwanda 27th on tax compliance out of the 189 countries surveyed.

� Revenue performance

The revenue body is currently looking at achieving 100 per cent tax compliance to be able to meet its revenue collections targets for the fiscal Year 2015/16. RRA collected Rwf871.4 billion in both tax and non-tax revenues during the fiscal year 2014/15, representing a 12.6

per cent increase compared to the previous financial year.

To achieve this year’s targets, RRA is planning to continue the taxpayer registration process, enhance electronic billing machines monitoring systems and continue enforcing the payment of tax arrears among many other measures.

take the action concerned, the holder of a share of that class, who did not consent to or cast any votes in favour of the resolution for the variation, may apply to the Court for an order. He said the law was strengthened to enhance the position of minority shareholders as well as introduce stronger corporate governance requirements and increase transparency in publically traded companies. Before, it was only the majority shareholders who could check the books of accounts but with the new amendments, even the minority shareholders can check the books of accounts.

Secondly, before, calling for a general assembly used to be decided by the majority shareholders. Today, if shareholders can put your-selves together to make at least 10 per cent of the company’s shareholding, they can call for a general assembly. This all shows how minority shareholders are being protected. The law was further strengthened to enhance the protection of minority shareholders as well as introduce

stronger corporate governance requirements and increase transparency in public companies.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. Commercial courts have also rolled video conferencing as one of the tools for investors to attend some the court proceedings. In fact according to Charles Kaliwabo president of the high court, there are 22 judges in commercial courts of whom 7 seat in commercial high court.

This has addressed the question of capacity making it more efficient to serve the country’s business community. Overall, protecting investor’s rights is fundamental for Rwanda’s economic transformation and through its agencies; government has promised continued flexibility to continue reforming the sector. This will result into more foreign direct investments thus sparking a faster economic growth across the country.

R wanda this year amended its company law in its articles 7 and 8 which now impose obligations to directors to always immediately disclose their interests in a transaction to a company’s board and shareholders they work in. The Company

Law has been amended to provide for Administrative sanctions including admin-istrative fines to directors who fail to declare any conflict of interest.

Karim explained that the law also now allowed minority shareholders in companies to have a variation rights. For instance; Article 149 of Law n° 07/2009 of 27/04/2009 relating to companies as modified and complemented to date is modified and complemented as follows: “Where the share capital of a company is divided into different classes of shares, a company shall not take any action which varies the rights attached to a class of shares unless that variation is approved by the holders of the concerned shares. Where the variation of rights attached to a class of shares is approved and the company becomes entitled to

T he government has rolled out electronic platforms for the declarat ion and payment of taxes to promote tax compliance and facilitate all tax payers, from large to small, to easily pay taxes. Today, all large and medium tax

payers declare and pay their taxes online while the small tax payers perform the procedure by using their mobile phones, an application called M-declarations by the Rwanda Revenue Authority (RRA).

As a result, the methods have increased tax compliance by 75% especially for the small tax payers. The roll out of Electronic Billing Machines for Value Added Tax (VAT) collections cannot be underestimated either as to facilitate the easiness in the payment of taxes. Today, almost 10,000 VAT registered businesses have the devices, with RRA introducing different incentives to encourage both merchants and clients to use the devices.Richard Tusabe, RRA Commissioner General, said

in a recent interview that the government will continue introducing new and better methods of paying taxes to make it easy and less costly to make tax payments. The revenue collection body believes electronic platforms can deliver the required efficiency in terms of revenue collections, thus widening the country’s tax base and increasing compliance in the process.

Protecting minorityShareholders

Ease of Paying Taxes Today Rwanda Revenue Authority offers online services


www.hope-mag.com 41

T he This is one of the main indicators World Bank considers when ranking countries on the ease of doing business. The indicator looks at efficiency in the judiciary and how cases are resolved in commercial courts.

Rwanda has equally been making strong reforms in this area. For example the government through RDB and ministry of Justice has in place mechanisms and management of contracts more efficient and less costly. The two institutions now ensure this by the following ways;

� Court judgments are now published and are fully available to the public on the judiciary website.

� A time limit of 6 months to adjudicate cases is provided for in the civil procedure law Article 15.

� A limit on adjournment of cases is also provided for in the law in Article 14. A case shall not, for any reasons be adjourned more than 2 times.

� To prevent any other unnecessary delays in court cases, fines are also provided for in the law. Any party who intentionally delays the hearing or who seeks an appeal as a delaying tactic shall be charged a civil fine ranging between Rwf 20,000 to Rwf 200,000. Where delays are caused by the advocates, the fines are much higher- from Rwf 200,000 to Rwf 500,000.

includes instruments like the Simplified Certificate of Origin and list of commonly traded goods with neighbouring countries. These instruments can benefit them by facilitating their business with in the EAC region. Simplified Certificate of Origin ensures that Customs border posts bordering with our neighbouring countries facilitate small scale cross-border traders. STR facility has impacted

fast tacked to further reduce the cost of cross border trade. The government has supported the Introduction of Single Customs territory which is now operational along the Northern corridor. This has resulted into a reduction of time and cost of trading across borders. Transit time from Dar-es-Salaam to Kigali is now 86.6 hours approximately 3.6 days for imports and exports.While the time has reduced from 26 days to only 3.6 days and cost has reduced from US$ 4,990 to US$ 4,200 for imports.

One would say that the returns from cross border trade reforms have started being ealized with the country’s total cross border trade flows amounting to about Rwf 1.2 trillion in the first half of 2015. The EAC has offered a number of facilities to the cross border traders particularly through Simplified Trade Regime (STR) especially the small traders who regularly transact in values lower than US$ 2000. This enables them to import their goods duty free. STR

T his indicator looks at the cost of trading beyond Rwanda’s borders. It includes getting the cost of exporting goods in the region each year and dividing it by the Gross Domestic Product deflator. And Rwanda stills ranks quite fairly at number164 out

of 189 countries, this because the country is a land locked country which makes it difficult to trade across its borders. The cost of trading across the borders is still quite very high as different studies by the ministry of trade and industry and other development partners have indicated. Investing in infrastructure to reduce the cost of cross border trade.

Equally, the government has invested quite a lot in improving infrastructure to ensure this cost is reduced. For example, government has invested in the creation of one stop border posts, embraced the single customer’s territory and is currently working with its other East African Community (EAC) partner states to ensure regional integration is

Enforcing contracts

Participants in commercial mediation skills leading to CEDR accredited mediators at Lemigo Hotel, June 2013

Easing cross-border trade


T he government this year amended the law and made sure that insolvency administrators look at restructuring co m p a n i e s f i r st be fo re go i n g into insolvency. The new policy emphasises restructuring first and

that liquidation should be the last option.

As Tushabe of RDB said, they need companies to re-organise themselves first. “Normally, businesses fail because of poor management, so what we are doing is to show them that they can turn around their businesses instead of heading for liquidation, by restructuring because no one benefits from liquidation,” he explained.

The following bullet points try to sum up the new law amendments;

� The law was amended to;

� Clearly state restructuring as the preferred outcome of insolvency proceedings.

� Clearly define the role of the administrator in meeting the above objective.

� Enhancing creditors rights to access information regarding the administration of the company.

� Clearly specify the voting rights of creditors in approval of reorganization plans and also cater for the rights of dissenting creditors.

� State which transactions made prior to insolvency may be voided.

� Due to efficiency in court proceedings, the time to resolve insolvency cases has reduced from 230 to less than 100 days.

� The amended law will ensure that more companies are reorganized, thereby ensuring higher recovery for creditors and the revival of distressed companies.

� Creditors managed to recover their debts using the foreclosure process which is a considerably shorter and more flexible process than the judicial recovery proceedings.

Reforming Rwanda for stronger economic growth through sustainable investments

The story of reforming Rwanda’s business environment, as previously mentioned, started in 2008 when the government decided to join the global race of ‘cutting red tape’ that tends to scare away potential investors. Almost seven years on that reform highway, RDB is happy with their achievements so far, and it is that success makes them even hungrier.

Today, Rwanda is increasingly referred to as the Singapore of Africa; largely because the Asian country has been made an attractive dest inat ion for investors by its policy makers. “We shall not stop from where we have reached now. We want to make it as conducive as possible for people to do business in Rwanda,” Tushabe closed.

� The Chief Justice issued instructions on new civil procedure rules, introducing guidelines for Pre-trial conferences, allowing for voluntary mediation within the court process and introducing time limits for law suits.

� Resulting impact

The above reforms implemented this year have led to the following impacts;

� Publication of judgments saved time and costs incurred by court users in onsite checks of judgments issued by court.

� Further, publication of judgments has created more transparency, accountability and efficiency in the court system. This provides confidence and certainty to the business community.

� The number of days to conclude a case has reduced to only 111,07 days on average from the date of filing to ruling whereas the trial period takes only 34,7 days on average (from date of first hearing to final ruling).

� Voluntary mediation has been introduced. This saves costs and time for parties and ensures a mutually beneficial agreement is reached.

many women engaged in cross border trade and entire border communities in general. There has been a reduction in transaction costs and elimination of Non-Tariff Barriers for example reduced documentation required to cross the border, increased trade volumes due to increased Market from EAC population estimated to be 140 Million people.

Resolving insolvency


www.hope-mag.com 43

Below are the excerpts.

How has RDB eased the procedures of registering a business?

Karim: Office of the registrar general of companies have have upgraded its online business registration system. It is now very efficient, time saving and user friendly. We had previously received calls from many people having difficulty in getting a username and password before they register online. Before, you could log in to register a business online, you had to sign up for a username and password which we would give to you. So if the person giving it to you was offline or doing something else, you would get delayed. Another thing is that it had many forms to fill which were more or less repetitive.

Doing business in Rwanda now

easier XAs the title suggests, Rwanda’s business environment has never been this conducive. So much

investment is being brought into the economy, largely thanks to the supportive environment created by the Doing Business reforms by the Rwanda Development Board (RDB). Rwanda was ranked 3rd easiest country to do business in Africa in the World Bank 2015 Doing Business report, which has not in any way ,made RDB rest on its laurels in further easing the country’s business environment. The Hope Magazine caught up with Karim Tushabe, the Head of Doing Business Unit at RDB who explained most of the reforms Rwanda has undertaken this year and their expected

impact.


If you went to seek a loan when you have such a good credit record and points, say 90, while a defaulter has 60 points, then you stand a better chance of accessing credit more affordably. If the credit score system works well in Rwanda, we hope banks will no longer put much emphasis on requiring clients to present collateral for their loans,, but rather focusing on the client’s records.

Going on to ease of paying taxes, what facilities has Rwanda Revenue Authority (RRA) introduced to ease tax payment and promote tax compliance?

Karim: RRA has done a lot in terms of making all their services electronic, allowing people to pay taxes and widen their tax base. For example, all large and medium tax payers pay their taxes online while the small ones like owners of small shops and taxi-motos use mobile phone declarations and payments. We look at reaching a level where every tax payer will be making online channels to declare and pay taxes. Our goal is to make it as easy as possible for someone to pay taxes because it is very unfair to have someone line up the whole day to make a payment.

For purposes of easing business, if one bought a warehouse today for example, so long as the documents are full, he or she can come to RNRA offices and transfer the ownership of the warehouse in one day. It used to take days and days.

When it comes to the ease of accessing credit, how easy have you made it for businesses this year?

Karim: This year, together with Transunion Rwanda (formerly Credit Reference Bureau), we launched the credit score system that will help access credit using a credit score that sums up one’s credit history or records in a score. The credit score works in a way that the more you pay well your bank loans, utility payments like electricity and water and post-paid airtime, the more points you earn.

Now if you fill your particulars like name, identification number and age on one of the forms, the system generates the same information automatically on other pages if requested. With the new system upgrade, we expect the time taken to register a business to be even less than the current six hours.

What reforms did you make regarding construction permits?

Karim: There are a number of reforms we have done under this but the most important one is the introduction of the building code. The building code is a legal document that was put in place by a ministerial order and spells out the requirements when one wants to go into construction and liability for professionals.

Before, professionals used to construct or design a building and once it collapses or has defects, there were no legal liabilities. Instead, you find the government is following the owner who doesn’t know how to build. Now it is articulate to a point if an architect designs a building and it is found to have architectural defects, he or she pays for it. The same applies to constructors. The investor has no issue to answer.

The reform encourages quality work by contractors and promotes those who do good jobs by enabling them to get more work. Then again, a professional isn’t allowed to undertake a big building project without the required insurance. So the insurance companies can benefit. Actually it is bringing the construction industry to better regulation.

How easy it registering property now after this year’s reforms?

Karim: We now have a one-step one-day transfer process for commercial property.

Now if you fill your particulars like name, identification number and age on one

of the forms, the system generates the same information automatically on other pages if requested. With the new system

upgrade, we expect the time taken to register a business to be even less than

the current six hour


www.hope-mag.com 47

How easy is it for Rwandan businesses and individuals to trade across borders today?

Karim: Here, we are still performing poorly according to the World Bank but that is not our issue because you see the World Bank includes transport as a major hindrance which necessarily is not the case. If you look at the distance between Kigali and Mombasa, it is close to more 2,000 kilometres so we are competing with people from Mombasa who only travel the distance to their warehouses in Kigali while Rwandan traders have to make the to and fro trips to Mombasa, which is over 4,000 kilometres. But internally, we have reduced time and with the Single Customs Territory, especially in the Northern Corridor, we have seen the number of days it takes to transport goods from Mombasa to Kigali reduce from 26 to 8 days. So we look at the Single Customs Territory as something that will do much in enhancing cross border trade. People can now clear the goods at Mombasa and have their documents sent to Kigali online such that by the time they travel back to Kigali, their goods go directly to their warehouses and not through Magerwa for clearance.

How are you working to reduce the number of insolvency cases in

Rwanda?

Karim: First of all, we have amended the law and made sure that insolvency administrators should look at restructuring companies first before going into liquidation. You know some creditors are normally ‘happy’ to liquidate companies in order to get at least their money out of it. However, we have brought in a new policy of restructuring first. Liquidation should be the last option, so we need companies to be re-organised. Normally, businesses fail because of poor management, so what we are doing is to show them that they can turn around their businesses instead of heading for liquidation, by restructuring. No one benefits in liquidation.

The owner becomes bankrupt and the financial institution gets like a half of the owed amount. Therefore, we are trying to see that restructuring comes up first in resolving insolvency. Secondly, creditors through the creditors committee, we should decide whether to go for restructuring or for liquidation. Creditors have got different interests. For instance, a creditor with a dissenting opinion could be ignored and ends up going bankrupt while the one who was given priority takes the largest share. The new reform caters for all creditors to get equal priority in liquidation.

Probably when it comes to company law, what is RDB doing to protect minority shareholders?

Karim: Protecting minority shareholders again looks at the right of shareholders, whether big or small, to inspect a company’s books of accounts. Before, it was only the majority shareholders who could check the books of accounts but today even the minority shareholders can check the books of accounts. Secondly, before, calling for a general assembly used to be decided by the majority shareholders. Today, if you can put yourselves together and make at least 10 per cent of the company’s shareholding, you can call for a general assembly which shows how minority shareholders are being protected.

What reforms have you made when it comes to enforcing contracts?

Karim: We have also reduced the number of days it takes for this as well. The important bit for this is that judgements are now made online. They used to say they were public before but one had to go through many strenuous processes of requesting, verifying and getting the judgements. Having the judgements online also come with advantages such as having better checks and balances. A judge now makes a judgement well knowing that it will be accessed by anyone, so he or she has to make sure they make very good judgements.

The other advantage with having judgements online is that you can follow up on a case from the website. If you want to buy a building which was sold using a court judgement, it is good if you read that judgement to see what the position of the court was. We have received cases, especially those of family properties where one buys property when the court judgement was saying something else, thus losing out in the process.

Lastly, what reforms are you looking to have in place next year?

Karim: One of them is having commercial property transfer made online. This would be our biggest reform because very few countries in the world have property transfer done online. I can’t tell of the other reforms now because we have to look at this year’s World Bank report first, see areas where we have to improve and start working on them.

How are you looking to improve Rwanda’s ranking in Africa from the current 3rd place?

Karim: Our target has never been in the rank. Actually, our target is to have the most conducive investment climate. We want to make sure the Rwandan business community has no problem in doing business by making their lives very easy.

If you look at the distance between Kigali and Mombasa, it is close to more 2,000 kilometres so we are competing with people from Mombasa who only travel the distance to their warehouses in Kigali while Rwandan traders have to make the to and fro trips to Mombasa, which is over 4,000 kilometres.

National bond warehouse have already set up their offices at the Mombasa port and now operational.


SPECIAL FEATURE

www.hope-mag.com 49

DHL celebrates customers, staff in eventful Customer Service Week

Julie Mutoni Country manager DHL Rwanda, gives clients gifts

D HL Express Limited, Rwanda’s leading mail and logist ics service provider this month celebrated its loyal customers and staff who have been at the heart of receiving and giving the

best service during the annual Customer Service Week held every October. In what was an eventful week for the company, every customer that walked into DHL Express Rwanda’s offices went home with freebies like T. Shirts and pens as tokens of appreciation by Rwanda’s leading mail and Logistics Company.

“We were rewarding both the customers that come to our offices and the staff who provide them with the best service,” said Julie Mutoni, Country Manager for DHL Express Rwanda during the week. Most DHL Express Rwanda staffs have the Certified International Specialist (CIS), a highly acknowledged professional qualification which better-places them to serve their clients with their utmost ability and with unrivalled customer care.

Mutoni added that with most of their staff having the CIS certification, they think globally and act locally, focusing on their international products and being a member of their strong inter-connected global network-proving that they know internat ional express business to satisfactory levels. “Every day, this team is at the forefront of providing cutting edge logistics solutions for many of our customers. We have always strived to serve our clients in a better way, giving them unforgettable experiences in the process,” she noted.

The company has identified Rwanda as the hub of its East Africa operations as the Rwandan economy continues to post strong growth trends.To this effect, DHL Express is in the process of seeing through the establishment of an airside transit gateway facility at Kigali International airport.

“We understand that to achieve growth, we need to ensure that we have the best facilities. The upgrades to our network operations and ongoing expansion assists us in meeting these expectations while maintaining our excellent service standard,” noted Charles Brewer, the Managing Director for DHL Express Sub Saharan Africa in a recent interview. Mutoni, on the other hand cited small and medium enterprises (SMEs) as significant engines for growth in the region.

“Accessibility is an important consideration for SMEs looking to connect with global opportunities. There are hundreds of SMEs in Rwanda and we need to provide easy access and a team of highly trained Certified International Specialists to lead them to the very obvious opportunities that trading with the world can present,” she explained.

Mutoni believes that through DHL, local businesses have won international contracts because DHL sent bids and tenders around the world, machinery have remained up and running because they provided repair and return logistics solutions, lives have been saved because DHL delivered medicines, medical equipment and test results for the health sector and Rwandan students have secured international education because DHL delivered their university applications on time.

“Everything that is moved from one place to another needs the aid of logistics; we ensure that whatever needs to be delivered gets delivered. Our success has always been based around delivering excellent services for our customers,” she said.

What started as AMEKI has grown into AMEKI Colour, AMEKI meuble and AMEKI Tanks (AMEKI Polyester and Plastic manufacturing) AMEKI Color with over 80 per cent of the paint market in Rwanda it is not in dispute that the manufacturing company contributes immensely to the Rwandan construction sector. They efficiently handle large and small bulk orders. Their high quality colour is suitable for ceilings and walls internally or externally whether new or previously painted. The lattex matt, one of the types of colours dries quickly, applied easily by brush, roller or spray gun and it is odour free. While sylk vinyl emulsion, a second type, is environmentally friendly, hard wearing, highly washable and subdued-reflective finish. It is suitable for areas of high traffic which require regular cleaning.

AMEKI polyester & plastic section which deals in the manufacturing of water tanks out of polyester material is located in Gikondo in the industrial area. AMEKI water tanks have capacity to withstand high temperature and atmospheric pressure as well as rust resistant. They are popular in both the domestic and foreign markets. AMEKI meuble section manufactures furniture for different purposes ranging from office furniture, hospital, hotel to school furniture. Customers that are thirsty for best furniture brand AMEKI provides of solutions.

X AMEKI the only Rwandan manufacturing company that has for many years in a row maintained its record as one of the best exhibitors in Rwanda's Trade Fair dubbed, EXPO, has once again participated in this year's Expo with a wide range of variety of building materials that are well-defined by high standards.

A MEKI products are highly competitive, which is the reason why they claim a huge share of the consumer demand. Being the main suppliers of high quality paint, furniture and water tanks, in-depth knowledge of the industry,

innovativeness and highest level of attention to clients’ requirement are some the factors that have enabled AMEKI manufacturing company position itself as the market leader in Rwanda’s construction sector. Since its inception in 1989 AMEKI has directed massive efforts to diversify the company products in the drive to meet the growing demand of a variety of construction materials.

Ameki positions in Rwanda market as a model exhibitor


AMEKI COLOR SPECIAL FEATURE

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�Where to Start?

T he first step is to find the right local b ro ke r a ge f i r m , w h i c h w i l l m a ke transactions on your behalf. It will help you open a Central Depository System account in Central Depository and Settlement Corporation (CDSC) as an investor. CDS

is an online system that electronically facilitates transactions of shares across the RSE, removing the use of paper certificates as it was before. The list of all the market participants in the stock market is given on the RSE official website. Only an authorized member of the central depository and settlement corporation can, called a CDA or central depository agent can assist you in opening your account.

Typically an investor needs recent photographs, certified copies of passport or driving license and tax registration certificate. In case an investor is a company, it would be required to submit a certificate of registration. Usually the account is opened in one day once the documents are complete. As a foreign investor, you will have to talk to your brokerage firm of the ways they can accommodate your investments. Most of the companies offer both, email and telephonic communication to facilitate the buying and selling. Still, it depends on how you as an investor and your broker come to an agreement and arrangements can be made according to that.

When you open an account, you get a CDS account number and secret question and answer to identify you whenever you are trading in stocks in the RSE. Any investor, whether local or international is allowed to open multiple accounts and trade in them separately. However, you can only open one account with one agent. You can learn more about Central Depository and Settlement Corporation when you get in touch with one of the agents.

� What after you have opened an account in the Central Depository System?

One thing to remember here is that the trader account and dividend account go separately. Therefore, it is better to have a local bank account where your dividends go instead of getting them wire transferred every time. After you have opened a trader account with the CDSC, you can wire transfer your investment in your account and begin trading right away.

X Rwanda is one of the fastest growing economies in the world in terms of investment, real estate, banking, manufacturing and of course the stock exchange. The purpose of this article is to acquaint our readers on how they can invest in the Rwanda Stock Exchange (RSE).

How to invest in Stocks on Rwanda Stock Exchange

RSE SPECIAL FEATURE

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Serena Hotels Offer Lake Kivu Serena package forTransform Africa Delegates

SERENA HOTELS

D elegates coming for this month’s Transform Africa Summit will have a chance to cool off from their busy days’ schedules from the conference with a travel offer to the Lake Kivu Serena Hotel.Serena Hotels are offering an

all-round tourism package for the conference visitors by offering shuttle services to and from the Lake Kivu Serena Hotel immediately after conference, where the tourists will have the chance to enjoy the amazing sceneries of the Lake Kivu beach in Gisenyi, Western Province before they leave the country.

Charles Muia, the Serena Hotels Country Manager said they want visitors to get a complete feel of the country during the three-day event scheduled to start on the 19th of this month. “Tourists will make reservations for the shuttle services to Lake Kivu Serena from our Kigali Serena Hotel front desk and be ready to travel to and from Lake Kivu Serena,” he explained.This year’s Transform Africa Conference will be the second edition after the inaugural meet in 2013, and is expected to attract more than 2,500 delegates from across the world.

At least 10 African heads of state, leaders of government and heads of international corporations are among the participants expected at the Kigali summit. Muia was optimistic that the event will further boost Rwanda’s tourism and hospitality sector especially now that they were offering visitors more than conference tourism packages.Rwanda’s tourism industry

generated $304.9 million last year, becoming the country’s largest foreign exchange earner. This was an increase of 4 per cent compared to $293.6 million in 2013. The total number of visitors rose to 1.22 million, compared to 1.12 million visitors in 2013. The number of business travellers who lodged in the country last year increased by 24 per cent, with the government attributing the development to the new strategy to focus on business travellers as supplement to those that come to the country for leisure.

Muia said Rwanda presents a big potential for all kinds of tourism and said they were working to see they package tourism products to the suitability of tourists. “Rwanda is very safe, clean and has less traffic which gives it a lot of potential to host all tourists,” he closed.

About Serena Hotels Rwanda

� Kigali Serena Hotel:

Ideally located on one of Kigali’s most charming boulevards, the five-star Kigali Serena Hotel is built around a polished granite atrium, which showcases the very best of Rwandese cultural art. Relaxed yet elegant, the hotel features an Executive Lounge and Bar, which opens onto a wide sundeck overlooking the newly refurbished swimming pool.

Also overlooking the pool, the popular Milima Restaurant offers a wide range of all-day buffet choices, while the relaxed Sokoni Café offers inside and outside poolside seating. Regarded by many as Kigali’s natural business hub, the hotel also boasts its own extensive conference centre, 500-seater auditorium and lavish ballroom.The Kigali Serena Hotel is one of the leading conference venues in Kigali.

� Lake Kivu Serena Hotel:

Serenely sited on the white sandy shores of Lake Kivu, the sixth largest lake in Africa, and surrounded by extensive tropical gardens, the tastefully open-plan Lake Kivu Serena Hotel offers the ideal extended holiday destination in Rwanda or week-end escape.

Within several hours drive of both the Rwandan capital, and the glorious Volcanoes National Park (home of the world famous mountain gorillas), it overlooks its own private beach and offers; 66 luxury hotel rooms, executive suites and family accommodation, a panoramic restaurant, indoor and beachside bars, a luxury swimming pool, and the ‘Maisha’ Health Centre (offering an extensive range of health and beauty regimes, boating, swimming, volley ball, tennis, fishing, hiking and trekking). Our Lake Kivu hotel also boasts a world-class fully-integrated Conference Centre, allowing business personalities and firms to hold effective conferencing and net.

SPECIAL FEATURE

Our Products range from sanitary equipment like Basins, Bowls and Waste Kits, Ceramic and porcelain tiles, Showers, Mirrors and Cabinets, sinks, taps and accessories, & many others. With an assortment of Tiles, Sanitary Ware, Bath Accessories and Lights and many other products have been displayed in a unique manner to allow easy selection by customer. Visit us for a unique experience.

Located at Suite No. 01, RAF Center KN ZAV 38, Next to National Statistics House, Muhima Road Kigali Rwanda, Tel:+250 (0)734 100

004 / 734 100 009, Email: [email protected]

UGANDAN ADDRESS :-JR Complex, next to New Vision, Jinja Road KampalaTel: +256 312 203 333 / 753 555 501 / 754 777 507

RAK Ceramics come in a varriety of types combining Design color and Texture

It’s all about detail

Tiles, Sanitary ware, Faucets, Lights, Switches

Visit us for Christmas Offers

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