Telling Rwanda’s Story

MAY-JUNE 2015 ISSUE 52

Magazine

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LEANDRE CYUSA Country Manager Kountable Rwanda

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PRESIDENTIAL MONTH20

AIRTEL RWANDA32RWANDA REVENUE AUTHORITY22

KENYA PORTS AUTHORITY14

TUSKER CARNIVAL38

7 EDITORIAL New financial solutions set to stimulate development

8 KOUNTABLE Quick financial support for business needs

14 KPA Understanding the impact of KPA’s liaison office in Rwanda

20 PRESIDENTIAL MONTH Highlights in pictures some of the President’s

monthly activities in and outside Rwanda, for your recap.

22 RWANDA REVENUE launches My EBM Invoice to garner collective responsibility. RRA Mobile money tax payment facility

27 RWANDA STOCK EXCHANGE Exciting times for Rwanda’s Capital Market as

INSIDE THIS ISSUE

first Fully Private IPO is listed.

28 PERGAMON GROUP LTD EBMs, POS terminals and more IT solutions

32 AIRTEL Pay with Airtel Money campaign to increase use of mobile payment.

36 SERENA Extending the Serena Touch. Inspiring the best in people. SERENA STAFF join hands to support Genocide survivors

38 ENGEN RWANDA takes cashless transactions to new heights

40 AZAM TV Launches in Rwanda Offers affordable access to regional and international satellite TV channels

42 SIMBA SUPERMARKET’S vending of 4GLTE bundles brings pricing lower

44 CROWN SOLUTIONS RWANDA Engineering solutions at affordable rates.

46 AFRICA DEVELOPMENT CONSULTANT Giving a Lifeline to Rwandan entrepreneurs

52 CREDIT REFERENCE BUREAU rebrands Launches Transunion credit score to boost consumer bargaining power

HIGHLIGHTS

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COVER PAGE KOUNTABLE Quick financial support for business needs.

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To the delight of the business community in Rwanda, a group of experts used the available information and the needs of Rwandan businesspersons to develop a technology that is capable of analyzing the social capital of a particular person and compute it in such a manner that allows them access to finance using this rarely utilized resource. Kountable as a new technology and company is already offering what most businessmen, like Ngendabanga Gabriel, have codenamed relief financing.

LEANDRE CYUSA Country Manager Kountable Rwanda

supporting solutions with an international outlook are having seepage to good depths and are bound to benefit borrowers and stimulate investments. The entry of Kountable Ltd into the Rwandan market, for example, has come with new financial IT-based solutions that will complement existing financial bodies and offer finance terms that are significantly better than what local banks and other sources of financing currently offer.

Servicing contracts and tenders will be made as simple, since, for example, when a local company successfully wins a tender to supply items, it will approach Kountable and secure quick funding at an interest rate as low as 2% per month, needless to mention the stream of free business advisory services. Another new entity that recently joined the financial and business support services industry, BDO East Africa Rwanda, links international financial institutions or investors with local firms in need of finance.

One can borrow from Canada where the interest rates are low and implement the project in Rwanda, avoiding the local high interest rates in the process. These and more innovations should be transported and embraced to far reaches of the country, enabling the building of a critical mass of entrepreneurs that will create employment in line with the 200,000 off farm jobs target per year, increase productivity and household incomes as Rwanda grows to middle income status as envisaged in Vision 2020.

he creation of a Credit Reference Bureau that interfaces with lending i nst i t u t i o ns h a s s u p po r t e d t he def in i t ion of borrowing h istory

of individuals and institutions and can be provided online in real time. If one has a good report, it becomes an asset that can be used for negotiating with the bank providing the loan facility for a lower interest rate since an individual/enterprise will have demonstrated, through history, low-risk behaviour. Making it easy to register businesses has seen a migration from informal to formal business entities; a step closer to accessing credit.

The geographical d ispersal of Bus iness Development Services has been a blessing to SMEs across the strata through the provision of business advisory services. But accessing finance is not all. One aspect of the finance industry that remains a daunting phenomenon in Rwanda is the high interest rate. At an average of 17.5%, it is on a high end compared to Europe’s average of 4%. Such prohibitive interest rates are not a good scent to attracting new borrowers and therefore the rate at which investments grow becomes more sluggish and limply.

With globalisation shaping social and economic functioning of nations, international financing is gradually permeating into and influencing the performance of macroeconomic structures and financial performance in least developed countries. In Rwanda, a number of financial

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Matthew Rwahigi

PUBLISHER’S WORD

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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

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CITY OF KIGALI

SPECIAL FEATURE

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I was looking for money to pay my performance guarantee on a tender I had won but my bank was not in posit ion to

offer a credit facility within the time frame I needed it.

I had the collateral and the money I needed was not much but banking procedures were too cumbersome and resulted into delays that would not favor my financial need.” In as much as banks play a very important role in addressing f inancial needs, Mugire argues that they are not suitable for short term loans that the borrower needs approved in a very short time.

And yet for most businesses, such needs are daily. Once it will be a contract to supply equipment that needs quick financing to deliver, or it will be a need to fly in some extra stock needed to complete a job.

Whatever the need for the q u i c k f i n a nc i n g, t he re h a s always been such demand in the business community that has unt i l recently not been

person and compute it in such a manner that allows them access to finance using this rarely utilized resource. Kountable as a new technology and company is already offering what most businessmen, like Ngendabanga Gabriel, have codenamed relief financing.

By using one’s social capital which is collected through analyzing their circles, past and present relations, business networks, communications among others, Kountable gives each person a score known as the K-score, on which the decision to offer financial support is based. For Ngendabanga, his first encounter with Kountable was at

met due to the very nature and procedures of most financial institutions. To the delight of the business community in Rwanda, a group of experts used the available information and the needs of Rwandan businesspersons to develop a technology that is capable of analyzing the social capital of a particular

Cyusa Leaudre, Kountable’s Country Manager explains the technology to Minister Philbert Nsengimana among other guests

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a time when he badly needed to deliver on a contract that was running out of time. The banks were delaying and business was looking very ugly. Then he was introduced to Kountable and his demand was met. “They analysed my social media communications and accounts; facebook, twitter, linked-In, my email and mobile phone communications, business relations and networks.

That was all they needed to determine my credit worth and decide on whether my project was a potential beneficiary to their support.” After the initial project had been financed and Kountable repaid, he went back for another which was also taken on without delay.

“I have benefited from more than Rwf300 million in financing from Kountable in hardly four months”. To Ngendabanga’s surprise, the Kountable team asked for neither security for the loan nor any additional documents about him except for those regarding the project that

he needed financing for. “No one asked me to get any documents notarized or anything else similar to that which procedures are most responsible for the delays suffered when seeking f inance from tradit ional lenders.”

He adds, “Once I had provided all the documents regarding the project as had been required, response was g iven in four days and it was positive.” Mugire’s experience with Kountable is no different. He was given financial support for two projects and each time, the response did not last longer than just three days.

Kountable launched

Mugire, Ngendabanga and many others benefited from the services of Kountable albeit the technology had not officially been launched.

Accord ing to Chr is Hale the CEO of Kountable who was speak ing on the sidelines of a colorful launch in Kigali on May 30th, they have financed projects that needed as low as US$2500 and as high as $500,000. With the technology officially launched, they are looking to have more businesspeople in Rwanda access the service and benefit from the development.

Incorporated in the USA as Kountable Inc, and registered as Kountable Rwanda Ltd, this technology based financing model that was born from business intelligence acquired from Rwanda looks to expand to other developing countries and help mostly middle level entrepreneurs achieve their growth goals. Entrepreneurs in many sectors of the economy can benefit from financing to help them buy stock, raw materials and other goods they require to take on larger tenders and capture bigger opportunities.

“We are focused on business finance needs that require short term support which does not exceed one year and though there are no limits on how much, we want to benefit as many businesses as possible so we want to keep the bulk given to each business within the range that we have handled in the past ($2500-500,000).

Kountable CEO Chris Hale interacts with guests at the launch in Kigali ww

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How does Kountable benefit and what is the security

As far as interest on the f inance is concerned, Kountable operates on a model that helps entrepreneurs to complete projects in a short time which is one of the company’s key elements for success. A 2% financing fee is charged per month on the value of f inancing received. Through the Kountable Delphi Trade Fund, the company is able to raise money from investors in USA and beyond, through creating awareness on investment opportunities in Rwanda and by presenting the potentials of individual projects.

To ensure prudent investments, there is an approval committee which determines which project gets financing. Also, the purchased goods as per contract terms signed between Kountable and each of its beneficiaries remain a property of the former until repayment of the financing. This is all the security a businessperson needs to access f inanc ing through Kountable.

As scored by most entrepreneurs who attended the launch, their financing needs on projects hardly exceed five months. Such finance is rare in Rwanda’s financial market and where accessible, the cost is very high and it takes long to come through.

Accord ing to Ph i lbert Nseng imana R wa n d a ’ s M i n i s t e r fo r Yo u t h a n d ICT, Kountable is an example of how Information technologies can be utilized in developing people’s resources like in this case the social capital resource that is being used as a basis for approving financial support.

“ R w a n d a n e n t r e p r e n e u r s a n d businesspeople should be informed by this development to embrace ICT and use it in their businesses. This is just a beginning of what the use of information technology can do in solving business challenges,” he shared.

To better understand what Kountable is looking to accomplish with Rwandan entrepreneurs, Hope Magazine caught up with Leandre Cyusa, the company’s Country Manager who shed more light on for instance what inspired Kountable’s establishment and its future among others.

What is Kountable?

Kountable in a simple definit ion is a trade finance model. This means that for the first t ime in Rwanda, small and medium s ize businesses have access to this type of financing

that has always been only available for large corporations. Through Kountable, a reputable entrepreneur benefits from trade finance to purchase raw materials, acquire stock and carry out inventory so as to meet demand on a particular contract which gives even small enterprises the ability to compete for big contracts.

In other words, big contracts which have in the past been left to multinationals with the financial muscles to pull them off, can now be performed by local companies if all that is hindering them from such opportunities is finance.

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Are you a new bank?

No we are not a bank or a traditional lender. Consider us as a business partner ready to faci l i tate your business in taking on big opportunities that in the past would not be within reach due to capital constraints. Kountable does not loan money, rather we help you purchase raw materials, stock or inventory and get paid by your end client so you don’t have to worry about funding these purchases as part of your transaction.

Our team can help you structure your deal with your supplier and end payer-c l ient so that th is i s eff ic ient and profitable for you. This is one other thing concerning working with us; you are not all alone but have a big team of experts in business working alongside you with the main purpose of ensuring that every business deal you work on is profitable. With the help of the kScore, Kountable makes th is type of trade financing affordable and accessible to SMEs in emerging economies for the first time and faster than ever before.

S i nce we a re a t e c h no lo g y b a s e d operation, our financing model allows for doing required due diligence much faster than can be achieved by any traditional lender in the developing world. This is mainly what makes us very different from banks. In a matter of just days (between 5-10 days), a request will be studied and decided upon. Understanding that this was a challenge many entrepreneurs faced in Rwanda, Kountable was inspired to bring a solution, and it is now ready for Rwandan entrepreneurs to benefit.

What do you look for in the entrepreneurs you finance?

After s ign ing up on Kountab le, an entrepreneur’s kscore is computed through an algorithmic procedure using their social information gained from social media and based on the kinds of relations they have and the reputation they enjoy in their line of business.

Being algorithm, I can hardly explain the entire process of how someone’s kscore is generated but sufficing to note is that one’s past business relations, activities and behavior are crucial factors. This and the details of the project for which is being sought for are all we consider to decide on who to finance.

Where can customers find Kountable in Rwanda?

We actually are closer to anyone across Rwanda than any financial service provider has ever been. Ours is a technology based business and we require customers to approach us mainly through our website

www.kountable.com where they can sign up to get an account and have their kscore computed. Also, people with smart phones can download our application, which gives more convenience like in case of uploading documents on a project seeking finance; one only takes their photos which are simultaneously added to their account with Kountable.

On the website, i t requires physically scanning and uploading them. But in case of inquiries that need a physical visit to the offices, we are located at Kisementi- Remera in Kigali opposite Cogebanque branch in the area.

Thank you!

For more information on Kountable please contact:Call: +250-788-543-310, +250-788-304-196

Email: info@kountable.com , cyusa@kountable.comVisit: www.kountable.com

Several Entrepreneurs have so far benefited from Kountable’s quick financing model helping them to take their businesses to new heights. manumetal, a local steel fabrication company seen in the photo is one of them

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KPA SPECIAL FEATURE

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Below are excerpts.At two years, what impact could you say the KPA liaison office in Kigali has had on improving international trade, with regards to time and financial costs?

There has been noticeable impact on business operations of traders in Rwanda over the last two years espec ia l ly cons ider ing the fact that the off ice literally brings the port to Kigali as every documentation service offered by the port is made available to the Rwandan business community. This presence in Rwanda has been further reinforced by the reforms that are taking place at the port for instance 24/7 service provision, the additional berth number 19 and the building of a container terminal; all to the end of reducing delays in clearing while increasing the port’s cargo handling capacity significantly.

Thanks to the automated system, the KPA liaison office in Kigali helps clients on the ground on how best to utilize it, by offering them with user registration services so as to obtain login credentials necessary to gain access to the system and work on the documentation processes to clear their cargo. Through this new automated system, clearing can now be done from Kigali with the help of the liaison office which reduces costs significantly.

This is so because traders no longer have to travel to Mombasa to clear their cargo which saves money they formerly would spend on tickets and accommodation not to mention the time savings. All this speeds the documentation process which overall helps traders to avoid additional charges for delays. And when the documentation process is done on time it helps avoid additional charges, resulting into more savings for traders.

Has your presence in Rwanda improved the port’s business in the country?

T he P o r t of Mo m b a s a ’ s b u s i ne ss h a s undoubtedly changed since the opening of the liaison office. Our customers in Rwanda now understand the documentation processes more than they did two years ago and it makes doing business with Rwanda more efficient, something to be thankful for.

Dur ing the year 2013/2014, there were mi ld decreases in volumes due to the implementation of the automated Single Customs Territory system which was new to the business community. After these were up and running, the KPA Kigali liaison office conducted workshops and forums to introduce them to the port’s clearance procedures in light of full implementation of the SCT and also to assist them in implementation order to improve business activities.

As a result the latest statistics for 2014/2015 (for quarter one) indicate that volumes are now picking again with a marked increase noted in quarter one of 2015 in comparison to the same period in 2014.

What kind of services have you made available through the liaison office?

We have different services tailored to help the Rwandan traders including;

� Port user registration� Port clearance facilitation� Cargo tracking - consignment (cargo) position in the port� Retrieval of invoices and payment: This is now easier, as the entire payment processing procedures are illustrated and can be done here in Kigali, at the KPA KCB bank accounts.� Capacity Building Workshops: KPA Kigali liaison Office in collaboration with the Mombasa headquarters technical team,

frequently conducts workshops to train our customers on clearing and documentation processes and it also gives an opportunity to our clients to get assistance from our technical team with whatever issues they encounter.� Forums: The KPA management team visits the regional offices (Kampala, Kigali, Bujumbura) in order to meet with the stakeholders and authorities to discuss and resolve the issues being faced by the transit customers .The Stakeholders are also informed on new developments at the port. The forums also work to harmonization and collaboration of operations between Kampala, Kigali, and Bujumbura with Mombasa. � Customer visits: building better relationships with customers and getting feedback from them on the port services and the challenges they face in order for us to improve and achieve customer satisfaction.� Trade fairs: Participation in Trade fairs to give information on the services delivered at the Port of Mombasa through the Kigali liaison office.� Dissemination of information through Bulk SMS service that will connect us better to our clients for continuous relaying of real-time up to date information.

Going forward, what new developments are you working on to benefit your market both in Rwanda and the greater CEPJL region?

The fundamental social and economic role the Port of Mombasa plays in serving Kenya and the entire Great Lakes region cannot be overemphasized. Hence, as the regional economies continue to grow, so is our duty to beef up our operational strength in tandem with the increasing demand for imports and exports. Kenya Ports Authority is already working on a number of developments which

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will significantly improve the Port services to its various markets including Rwanda. Some of these developments include;

Additional CapacityThe Port of Mombasa is constructing a second conta iner termina l wh ich has off ic ially reached 70 per cent in complet ion , w i th the whole pro ject expected to be complete in March next year. The US$ 283m pro ject , wh ich is located at K i l ind in i harbor on 100 hectares of land, is anticipated to increase operations at the port of Mombasa and enhance growth of the economy in the northern corridor.

The multi-million terminal project will benefit the entire region as it will expand container handling capacity of the Port of Mombasa, since it will have three berths with quay lengths of 230, 320 and 350 metres, which will see capacity of the Port increase to 1.2 million twenty feet equivalent units (TEUs). Equipped with the latest machineries, the Port will boost intra-regional trade.

SecurityKenya Ports Authority completed an ISS (Integrated Security System) that automated a large part of the security processes. Th is a l lows the port to mo n i t o r c a r gos a nd re d u ce s c a r go theft cases. 39 KPA security personnel recently underwent paramilitary training as part of measures to boost security at the Port. Construction work on KPA power sub-station at Kipevu to enhance port electricity supply is scheduled for completion by end of the year.

ICTThe Port of Mombasa has also embraced Port Automation upgrades in regards to SAP so that our customers enjoy processing their documentation from the comfort of their offices.

EquipmentKenya Ports Authority has continued to acquire modern cargo handling equipment to match with the business growth. This year we acquired 9 new Reach Stackers, 12 Terminal Tractors and 12 Rubber Tyred Gantry cranes (RTGs) which were commissioned on 4th March 2015 bringing the compliment of equipment in that category to a total of 34 RTG’s. The RTGs have a safe working load of 45tons, six containers wide plus one truck lane and can stack five containers high.

They are f i t ted with spec ial e lectron ic gadgets that give them capability to track containers on stack. This means that the operators can key in the physical position of the container during stacking thus linking with our ICT systems to give real time and online information. To complement ship and shore handling at the Container Terminal, we have ordered for more 3 Ship to Shore Gantry cranes to be delivered by August this year. This will further increase our efficiency in handling cargo.

One Stop Border PostsTo further facilitate movement and trade across the East African Community borders, the Government of Kenya has established One-Stop Border Posts at major boundary points, where a number of them like Lunga Lunga and Taveta on the Tanzania/Kenya boarder are complete.

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These facilities upon assuming full operations are expected to enhance Port operations and efficient transactions in the region by reducing clearance times by up to 40%.

InfrastructureFurther, the government of Kenya is also modernizing major roads along the northern corridor and other connections to border points like Voi-Taveta. This will further ease the transport along the Northern corridor and reduce the transit time for cargos destined to Rwanda.

Standard Gauge Railway LineThe transit countries are better served by rail, for this reason, the Government of Kenya is keenly fast-tracking the construction of the Standard Gauge Railway which was launched on October last year The Standard Gauge Railway Construction has already started in Mombasa, Kenya and once complete, the new line will connect Mombasa to Malaba, then onward to Kampala in Uganda, then Kigali (with a branch line to Kasese town) and Juba (with a branch line to Pakwach town) to the Democratic Republic of Congo (DRC) border and again from Mpodwe to the DRC border. The Standard Gauge Railway construction project was agreed on by four countries; Kenya, Uganda, Rwanda and South Sudan and it is a vital infrastructure project that will largely impact the regional economies. This move is aimed at increasing freight transport by rail from Mombasa Port from the current 5% to at least 50% at a faster cheaper rate

LapssetThe Government of Kenya is also committed to develop a second corridor – Lamu Port South Sudan Ethiopia Transport Corridor (LAPSSET) to complement the Northern Corridor. The project scheduled to commence this month is the first single gigantic, integrated, transformative and game-changer infrastructure Project the Government of Kenya has ever initiated. Once complete, it will further strengthen Kenya’s position as a gateway and transport/logistics hub to East and Central Africa.

The Construction of the Lamu port will open the vast northern region of Kenya and position it as a regional maritime hub. The Lamu port (deeper and wider) once completed will handle larger vessels. As our Vision states, “World Class Sea Ports of choice”, Kenya Ports Authority is keeping abreast with the fast changing maritime trends and was last year rated amongst the top 100 Ports in the world is committed to giving you world class service and serving you with excellence!

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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. President Kagame spoke on Milken Institute Global Conference Panel on Africa’s Future in Los Angeles on 28 April 2015

2. President Kagame spoke at a dinner hosted by the Apollo Foundation at the Milken Institute Global

Conference in Los Angeles on 27 April 2015

3. President Kagame spoke at the Corporate and Investors Roundtable at the Milken Institute Global Conference in Los Angeles on 27 April 2015

4. President Kagame arrived in Algeria for a three

day State Visit to Algeria on 21 April 201

5. President Kagame held a bilateral meeting with President Abdelaziz Bouteflika on 20 April 2015

6. President Kagame attended the signing ceremony of the Peace Accord in Bamako, Mali, on 15 May 2015

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7. President Kagame received with World Bank Group Managing Director, Sri Mulanyi in Kigali on 14 May 2015

8. President Kagame received delegation from the African Institute for Mathematical Sciences (AIMS) in Kigali, on 12 May 2015

9. President Kagame delivered Keynote address at the 45th St Gallen Symposium in Switzerland, on 8 May 2015

10. President Kagame officiated at the Graduation Ceremony of National Police Officer Cadets in Gishari, on 11 May 2015

11. President Kagame received Starbucks team from 22 countries around the world in Kigali on 6 May 2015

12. President Kagame attended the 13th East African Community Extra Ordinary Heads of State Summit in Dar es Salaam, on 13 May 2015

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RWANDA REVENUE SPECIAL FEATURE

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Many argue that the devises h a v e m a d e c o m p u t i n g taxes an easy no-brainer task unlike before when it

required so much skill that determining what tax a business owed called for hiring an expensive accountant. Big and small businesses alike argue that the technology has saved them a lot in their own financial management thanks to the sales data controller that is one of the components of the EBM.

Alexis Vuningoma is the proprietor of Kar is imbi Hotel , one of the emerging stars in Rwanda’s hospitality. He shares that using the EBM technology has been a saver especially by enabling the hotel’s management to keep a c lose eye on business. He adds that given all customers demanded an electronic invoice on every purchase, these advantages could increase.

“ I t i s a go o d t e c h n o lo g y ; i n fa c t a b re a k t h ro u g h fo r bot h n a t i o n a l t ax collect ion and bus iness managers as it makes the tradit ionally hard task of calculating tax easy and swift.” It is not a blessing to big businesses alone but also to small businesses like Kubwimana Nielson’s hardware shop in Kimironko. “The EBM is a good innovation for business because while we used to struggle with calculating how much we owed RRA in VAT and paid

hefty charges for accountants to help our small shop with that or fell prey to penalties in cases of miscalculations, it is no longer necessary as every sale is recorded and the taxes too,” Kubwimana shared. However as Sundeep Phadnis the Head of Business at Safintra Rwanda shares, desp i te the apprec iat ion of the technology’s simplification of the process of calculat ing and remitt ing VAT, the challenge of compliance among bus inesses threatens the amassed

benefits. “For instance at Safintra, the EBM came as a blessing that made VAT payment much easier and we were grateful for the development. However, the fact that there are other businesses which do not comply as they ought to is a threat to those who do hence a need for RRA to up its efforts in implementation.”

As Sundeep shares, for businesses that are complying to the policy, using the EBM as ought to and remitting their VAT 100% as recorded, having competitors or other businesses in the market that do not follow the same discipline is a threat as they operate on separate costs albeit in the same economy.

Among others, the new My EBM Invoice campign will involve mass education on the use of the machines and the buyer’s right to being issued with a legally accepted EBM Invoice

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My EBM invoice campaign and what it seeks to accomplishAccording to RRA, the challenge is known and several efforts have been made towards addressing it. These have included training and mobilization sessions for the business community, and awards to customers for demanding issuance of an EBM invoice on every purchase. Notwithstanding these efforts however, RRA w i tnessed need for addit ional undertakings especially in mobilizing consumers to demand for their right to get a legally accepted invoice (an EBM invoice) on every purchase which would yield the required results of full compliance by businesses to the proper use of the technology.

T h e “M y E B M I n vo i ce” c a m p a i g n i s a mobilization and mass education campaign that seeks to sensitize Rwandan consumers on their r ight to be issued with a legally accepted electronic invoice on purchase of any VAT registered product. Demanding and being given an EBM invoice is regarded a right of every consumer especially because in the event that a trader does not pay VAT, it is to the disadvantage of the buyer who will have paid the tax when they purchased the commodity but whose contribution to national development ends up in the coffers of an untrustworthy businessperson.

VAT as a tax is not paid by a business but by consumers of an operation’s services or products. The businessperson in the equation serves the role of collecting, declaring and finally remitting the tax to the legal collector of government revenue who is RRA in Rwanda’s case. However, some businesses decide to pocket the VAT which is not only a disservice to the country but also to the consumer whose contribution to national development in form of tax is eaten by one greedy individual.

My EBM Invoice as a campaign therefore seeks to educate consumers on this right to have their VAT contributions delivered by traders to where they are destined, by mobilizing them to demand for an EBM invoice on every purchase. The campaign has seen RRA recruit and train 67 employees who will move across the country particularly in urban centres where most trading happens to sensitize buyers on demanding EBM invoices and at the same time support traders who may have challenges using the devises.

According to Richard Tusabe the Commissioner General of RRA, the campaign personnel will be complemented with a raffle in which consumers will be awarded for demanding for this right to being issued with an EBM invoices. The details of the raffle are still being fine-tuned but will most likely feature weekly awards to Rwandan consumers.

Are EBMs a worthwhile investment for Rwanda? At more than two years since March 2013 when the law obligating all VAT registered operations to use electronic billing machines came into force, it is a worthy question whether the technology is right for Rwanda or there is need to revisit and come up with a another better option of boosting tax compliance. Posed with the question, Tusabe and his team conf ided that the technology is the best when it comes to solving the tax evasion challenge in Rwanda and noted that several achievements have been registered over the period.

According to the Commissioner General, tax col lect ion in the VAT category increased by more than 5% over the last two years following the initiation of EBMs. In this regard, Rwanda is the first country among all those that have implemented electronic billing in VAT collection to have registered such increments in such a time gap. Besides, the ease with which information on taxation is gathered through the platform created by EBMs is a breakthrough and an advantage worth the efforts.

By using electronic bill ing machines, RRA is g iven a d i rect feed into the operations of businesses which makes taxation easy. This fast and accurate access to information also allows for the development of appropriate tax reforms, based on accurate information directly from the taxpayers which is a phenomenal i n R w a n d a ’ s t a x a d m i n i s t r a t i o n . Considering the benefits registered so far and many more envisaged in the future, RRA says government is contemplating introducing EBMs customized for each category of taxpayers so as to leverage the information collection benefits the system brings.

My EBM Invoice campaign is expected by many to further raise the demand for electronic invoices among Rwandan consumers and after all; demand it or not, a consumer will pay VAT. However, making sure that the tax paid reaches its destination through demanding an EBM invoice, ill behaved traders looking to evade tax are not given a chance to pocket taxes paid by consumers instead of del iver ing them to government coffers to fac i l i tate fast track ing national development activities.

The EBM is a good innovation for business because while we used to struggle with calculating how much we owed RRA in VAT and paid hefty charges for accountants to help our small shop with that or fell prey to penalties in cases of miscalculations, it is no longer necessary as every sale is recorded and the taxes too,” Kubwimana shared

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RWANDA REVENUE SPECIAL FEATURE

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To facilitate existing online tax declaration platforms

The facility comes to complement benef i ts from other onl ine tax p a y m e n t s e r v i c e s t h a t h a v e t r a nsfo r me d t he t a x p ay me nt

process in Rwanda by easing the process of declaring and paying taxes.

Such facilities include but are not limited to e-filing and e-payment, online declaration of non fiscal revenues, the M-declaration where taxpayers use their phones to declare taxes, Electronic single window, the Single Customs Territory Framework implemented jointly with other East African countries along the Northern and Central Corridors that have all contributed to a significant reduction in the cost of doing business in Rwanda and the region as a whole. Speaking at the launch of the Mobile Money tax innovation at the MTN offices in Nyarutarama recently Rwanda Revenue Authority Commissioner General, Tusabe Richard, noted that “This is a groundbreaking scheme that has come to fac i l i tate the

existing online tax declaration platforms by enabling SMEs to instantly pay taxes using their mobile telephones.”Even before the Mobile money tax payment platform launch, the Commissioner General noted, there was about 80% usage of e-filing and e-tax payments; so the launch and eventual application of the m-payment will push the application of the system closer to 100 percent.

“I am confident that this will also give us more mileage and better ranking on paying taxes and the country’s overall pe r fo r m a nce a nd r a n k i n g o n d o i n g business. Mobi le solut ions have just taken over a new mandate, from 2014, of collecting local government taxes—on land and property.”The launch of mobile money platform for paying taxes will see queuing at banks for the purpose of paying taxes completely eliminated in the country. “We are to work very closely with MTN to sensitise members of the public on why they should embrace the solution, giving it a proper uptake. We have already discussed with the MTN CEO on the sensitization roadmap for a coherent use of the mobile money wallet to pay taxes,”

the Commissioner General revealed. The use of M-wallet to pay taxes will as well impact the RRA reporting time. Because now there is a clear audit trail and visibility of the transactions, reconciliation can be done in 3 hours as opposed to the usual 15 days.

First in Africa, unbeaten convenienceOn his part, MTN CEO, Ebenezer Asante, said that this move is aimed at further easing up the process and cost of doing business by the business segment of MTN subscribers in Rwanda. “Once again, this innovation is arguably the first in Africa and a further boost for Rwanda as a leader in ICT for development. To our customers, the Mobile Money channel for paying taxes will provide unbeaten convenience and enhanced productivity in saving t ime, energy and money when paying their taxes. We closely take note of the digital world our customers’ lives revolve in and we don’t want factors like time or distance to be a disincentive for any of our customers

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to access a service.”With the payment of taxes through Mobile Money, tax payers can concentrate on doing their business rather than taking time off in order to honour their civic obligations. MTN subscribers can pay their taxes from the comfort of their office or any remote location outside the premises of RRA.

MTN is charging subscribers a token of as low as 30Rwf and higher slabs depending on the amounts being paid through the platform. Taxpayers can pay up to a maximum of 2,000,000Rwf at a t ime.With this new innovation, taxpayers will be able to have their payments cleared, processed and credited to the RRA account in real-time. The payment of taxes using Mobile Money comes in a wake of RRA’s strive to transform tax payment by introducing the simplest and possible methods that are more affordable and friendly to taxpayers.

How it worksTo access the service, subscribers must f i rst declare taxes by us ing the RRA online declaration platforms that include; M-Declaration-declaration of taxes using mobile phones, online declaration of non fiscal revenues, e-filing and e-payment

process. Using the MTN Mobile Money platform, taxpayers will have to dial *182#, select Pay Bill, select RRA payment, enter their reference number and type in their Mobile Money PIN to complete the payment.

“By using this service, it is hoped that it will further expand the digital financial ecosystem, and potentially offer revenue growth. The initiative will also enhance national productiv ity s ince individual business persons will not have to leave their work posts to travel to RRA offices to pay taxes. He advised members of the media to work towards popularising the innovation among the public because embracing it will enhance compliance and therefore more revenues to financial national infrastructures and development.

“This is not like any other initiative and commercial launches, it is something we shall plead with you to carry and popularize, because the interest goes beyond do ing bus iness and mak ing money, but it is a solution that will impact national development. So the media should carry this message and simplify it to the public for them to fervently embrace it.” According to a recent statement from MTN, about 85% of its subscriber base is registered on Mobile Money.

Taxpayers welcome the innovationIn an interview with Hagenimana Focus, a special hire driver, recently, he welcomed the tax payment innovation saying that it was a blessing as it would assist them to avoid the long queues at RRA and banks which could sometimes lead to failure to pay taxes and attract uncalled for penalties. “There are days when the queues at the bank are so long that we spend hours to be served. Even the burden of paperwork is sometimes confusing to some people. But he added that the Mobile money tax payment solution, is simple to understand and implement,” he explained. “We thank RRA and MTN for this initiative.”

This innovation will see taxpayers save a lot of time and resources to concentrate more on increasing productivity. Another businessman Ngabonziza Gilbert, 26, operator of a restaurant in Kacyiru, said that with the new solution, compliance will be easily attained whereas the prompt payment of taxes will as well be realised. “Even beyond the normal working hours of both RRA and Banks, a taxpayer can still effect payments. This is a good solution that creates a win-win situation.”

T he m a n a ge me nt of R wa nd a Reve n u e Authority has called upon all taxpayers to embrace the newly introduced payment facility that has come to reduce the costs in terms of time and money that taxpayers were losing during the tax payment process.

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There are days when the queues

at the bank are so long that we spend hours to be served. Even the burden of paperwork is sometimes confusing to some people. But he added that the Mobile money tax payment solution, is simple to understand and implement,” he explained. “We thank RRA and MTN for this initiative.” This innovation will see taxpayers save a lot of time and resources to concentrate more on increasing productivity...

Rwanda Revenue AuthorityCommissioner General Richard Tusabe during a Press Briefing on Rwanda’s e-Tax payment platforms

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RWANDA STOCK EXCHANGESPECIAL FEATURE

The IPO was from one of Rwanda’s leading investment groups, Crystal Ventures Ltd (CVL) which decided to sell all of its 20% shareholding

in MTN Rwandacell, a member of South African based MTN Group. In offering, CVL’s 20% shareholding in MTN Rwanda yielded 270 million shares that are now available to institutional and retail investors to a tune of 75% and 25% respectively. The share price was listed at Rwf105.

Since hardly a month ago when CVL listed the shares, several banks and other brokers in the market are roaming the streets offering to provide services to whoever wants to buy the shares, and judging from the media outpour, many people are finding the shareholding in MTN Rwanda a lucrative opportunity that should not escape the grip of Rwandan institutions and individuals. Besides the Crystal Telecom IPO, still in May the Rwandan government issued a Rwf10 billion Treasury bond on the local bourse in

its campaign of quarterly issuances aimed at increasing activity on the market. And just like has become the tradition, the May 25th – 27th T-bond was oversubscribed with subscriptions registered at 228.19 percent, indicating high appetite for products on the Rwandan bourse. Only two of the quarterly T-bonds have been issued for this year hence there are two more to look forward to in the remaining part of the year.

The excitement and dynamism as a result of the two most recent products especially the Crystal Telecom IPO are believed will attract other local companies and brands to use the alternative financing opportunity presented by the capital market. And having MTN Rwandacell shares on the bourse, which is one of the b iggest and most profitable companies in the economy, its listing as expected will motivate other local companies (big and small) to see the capital market as the viable source of finance that it is. Considering CVL itself according to Jack

Kayonga the Group’s CEO, this first listing is the beginning of a series of public offerings of other entities on its portfolio expected in the near future. Speaking on the sidelines of the Crystal Telecom IPO launch, Kayonga shared that there is more in store for the market as a number of its companies will soon be listing.

“The Crystal Telecom IPO is typical of Crystal Venture’s investment strategy of monetising mature holdings with the intention of redeploying capital in support of early-stage enterprises that can make a significant contribution to the Rwandan economy,” Kayonga shared adding that there are a number of others that will go the same path soon. Hence for people looking to make money from Rwanda’s nascent but dynamic capital market now is the best time while the leading companies in the economy are listing to benefit the opportunities presented.

Be the early bird and eat the best worm.

Rwanda’s Finance and Economic Planning Minister Claver Gatete at the launch of the Crystal Telecom IPO

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SPECIAL FEATUREPERGAMON

Antony Wanjohi, Operations Manager Pergamon Rwanda Ltd

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a combined devise, that puts the Sales Data Controller and the Certified Invoicing System together into what will be known as an “All in one” EBM. Each of these solutions targets offering convenience and eff ic iency to businesses while at the same time providing the required adherence to fiscal regulations. Also the cost of the EBM will significantly go down with the proposed “all in one” and this we believe will further make the devise affordable to small businesses across the country and thus fast tracking meeting government goal.

Qn: You talked of offering a wide range of business solutions. What other solutions do you have that address present day business challenges?

Ans: In as much as our focus is on fiscal solutions, we also engage in non-fiscal ones including the beeper technology that we will soon put on the market for the hospitality sector. The solution operates like a pager with the receiver being a wrist watch -like devise while the sender is a beeper. As per design, the watch is worn by the service providers while the beepers are positioned where customers are. The solution is aimed at improving the alertness of waiters in hotels and restaurants to the customer’s needs.

We started working on this after realizing it was inconveniencing for customers to call in all sorts of ways as they struggled to get the attention of the waiters to their needs.Also, we are supplying Micro-invest, an inventory and management software which enables one to monitor the operations of their business and easily capture required statistics to inform business decisions.

With this software, a business manager is in position to know their inventory, rate of sales on a particular commodity, the demand in the market for a given product among others. But our goal is beyond solving present day needs. As an IT focused business, we are already looking at what Rwandan businesses will need five-ten years from now and working on offering forward looking solutions. I can only say, no matter what the need is, we welcome customers to come and I assure them we will work out an appropriate IT solution.

Pergamon Group Ltd, an East A f r i c a n Co m m u n i t y b r a n d r e p u t a b le fo r i t s I T b a s e d b u s i n e s s s o l u t i o n s . W i t h

operations in Kenya, Tanzania and Rwanda a nd loo k i n g t o e x p a nd mo re o n t he continent, Pergamon Group boasts of over 10 years of experience in providing IT solutions to business needs. Below are excerpts of the interview.

Qn: Besides the Electronic Billing Machines, which other solutions does Pergamon offer?

Ans: I understand that so many people associate us with EBMs and it is indeed a good association but like you asked, there is more to Pergamon Group than just the EBM. Pergamon Group is a one stop shop for Information Technology ( IT) based business solutions especially in the areas of fiscal management but not excluding other solutions that businesses need to simplify and improve their efficiency.

Among others, we offer Points of Sale terminals where we have the expertise and the right supplies to set up an entire POS system customized to ones needs; banking solutions such as coin and bank notes counters and sorters, cheque scanners, and currency scanners; secure payment solutions; and security solutions like supply

and installation of CCTV cameras, walk through and hand-held metal detectors, and safes and fireproof cabinets.

Qn: Concerning the EBMs, there are customers whose businesses are not suited by the currently available devises. Shouldn’t this be your job as certified suppliers to make sure that all needs in this area are met?

Ans: Yes, this is a challenge well known to us and one that we are already in advance stages of solving. We are currently working on a prototype of an EBM system that can operate suitably in businesses where so many invoices are issued at a time and thus which cannot operate efficiently with the current models. Also for simplified operation of the system, we are developing

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AIRTEL RWANDA SPECIAL FEATURE

towards a cashless economy. Launching the campaign in a media event in Kigali, Airtel Rwanda Managing Director, Mr. Teddy Bhul lar sa id , “Wi th our ‘Pay with Airtel Money Campaign,’ we are optimistic that we will create a new wave of accepting payments using the mobile phone technology, thus bridging the gap

between the traditional brick and motor modes of payment.” He added, “The Airtel Money payment gateway will enhance and create ease amongst the Airtel money customers; and as a telecom, we believe that this is the journey towards answering the questions around financial inclusion.”

John Karamuka, D irector of Payment Systems at the National Bank of Rwanda commended Airtel for taking the bold steps in creating avenues for mobile payments. H e s a i d , “ R wa nd a ’ s mo b i le f i n a nc i a l sector is showing steady growth in mobile payments with 104, 773, 115 transactions and over Rwf700 billion moved through mobile payments in the last year alone. It’s economically beneficial for the country to have less physical cash exchanging hands and to see telecoms spearheading this.”

Also speaking at the event, the WASAC CEO, Mr. James Sano said that the E- Government payment for water once introduced would make i t eas ier for customers to pay their monthly utility bills in a convenient way. Airtel money considered long due solution to school fees payment Speaking on behalf of Schools already using Airtel

Mr Teddy Bhullar the Airtel Rwanda Managing Director explains the new campign to the media in Kigali

L-R, WASAC CEO James Sano, John Karamuka, Stephen Waiswa, Teddy

Bhullar and Startime’s CEO Ados Wang at the launch of the the Pay with Airtel

Money Campaign in Kigali

Summary

Ai rtel customers to pay for m o r e w i t h A i r t e l M o n e y including school fees, taxes, pay ing for ut i l i t ies and so

much more. Airtel Money further pushes for convenience, with more than 11,000 agents strategically distributed across the country to enable access for all to the service.

Airtel Rwanda on June 3rd launched an Airtel Money Campaign dubbed ‘Pay with Airtel Money’ which will see more additions to the Airtel Money Payments portfolio to include School fees Payment, Water payment, and taxes. All the options are expected to be fully available for Airtel subscribers latest by end of June 2015. The development comes in a bid to encourage mobile payments with Airtel Money, provide payment ease and convenience while contributing to Rwanda’s efforts

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electronic payments and usage of mobile based financial services. With a wide range of options for paying daily consumptions, Airtel customers can benefit from the convenience brought by Airtel Money by simply dialing *182# and following prompts. Airtel Money now counts close to a million subscribers and with this new campaign; the telecom company is focused on getting all of them active by offering several payment options that meet their daily consumption needs.

Money for School fees payment Mr. Dav id Gatoya from Lycee de Kicukiro Apade welcomed the new development saying parents would now have another Payment gateway for school fees and that it would also be easier for the school to reconcile these payments.

As has been the case in the past ever since schools stopped receiving hard cash, parents have always been queuing at banks during the period when students are return ing to school, an undertaking which was both inconveniencing and time consuming. With Airtel Money’s new opt ion, parents will benefit the comfort of paying from wherever they are and any time of their convenience, while security of the money is also assured.

According to Stephen Waiswa, the Head of Airtel Money, the convenience in payment of school fees will be enhanced with the Airtel Money card.Using the Airtel Money, parents will now have the ability to manage their children’s expenditure while at school where a parent will be able to load the student’s pocket money on a card that the latter can use to purchase whatever they need at school.

“There will be Points of Sale at all schools in the near future where the students can just use the i r Airtel Money card to buy anything they need,” Waiswa shared. Mobile p a y m e n t s co n t i n u e t o g row i n Rwanda owed to mobile technology which plays a big role in enhancing

About Bharti Airtel

Bharti Airtel Limited is a leading global telecommunications company with operations in 20 countries across Asia and Africa including Rwanda.

With its headquarters in New Delhi-India, Bharti Airtel ranks amongst the leading four mobile service providers globally in terms of subscribers.

In Ind ia , the company’s product offer ings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise s e r v i c e s i n c l u d i n g n a t i o n a l & international long distance services to carriers.

In the rest of the territories in which it operates including in Rwanda, Airtel offers 2G, 3G and 4G wireless services and mobile commerce.

The company had over 324 million customers across its operations as at end of March 2015.

John Karamuka, Director of Payment Systems at the National Bank of Rwanda, speaking at the launch of the ”Pay with Airtel Money” Campaign recently

Delighted, Mr. David Gatoya, the Head Teacher of Lycee de Kicukiro Apade expressed gratitude for the school fees payment solution which he shared will be a relief to most parents and schools

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SPECIAL FEATURE

As Charles Muia, the Country Manager of the Serena Hotels in Rwanda shares, what makes it or for that matter what would make any other hospitality facility tick, is the quality of

service; the way its guests are treated, and then the content of what they are given. Both factors to success however are embedded in one; having quality of human resource to give guests the right treatment and prepare the quality

Driven by the urge to at least cause one member of the society to smile, the Staff of Serena Hotels joined hands and collected contributions

which were on Friday May 29th was cause for celebration as they inaugurated a renovated house belonging to a genocide widow, Tawusi Kampundu.

Also, the contributions enabled staff to extend short term support in form of food stuff to 26 families in Rwampara Cell of Nyarugenge sector and District in Kigali City. “We were pushed by a sense of responsibility to support at least a family of a genocide survivor and upon inquiry; the sector authorities identified the family of Late. Habib Rutaganda.

This family of a widow and her children lived in a dilapidated house that was on the verge of breaking down and had no means to renovate it. We put each of our little contributions together so that we could make an impact in a life of a fellow compatriot,” Euphrem Kanamugire the Security Manager at SERENA hotel shared.

According to Tawusi, she had for some time lived in constant fear that she may one day find her family homeless as there was little hope their house would last any longer. “I was very scared that it would one day fall on me, my children or all of us but there was nothing that I could do for I could not raise enough money to renovate it. I am very thankful for

SERENAHOTELS

SERENA HOTEL

Tawusi Kampundu’s formerly dilapidated house which was renovated with

contributions of Serena staff

Mukaje school of tourism and hospitality Students.

The school was founded with supported and guidance of

Serena Hotels Rwanda

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of tastes each category of visitors needs. Serena has not only been a leading brand in the market but also has played a key role in developing human resource for the industry. Thus through the focus on human resource development referred to as the “Serena Touch” by many, Muia and his team have made commendable efforts to touch the sector across the country, such that the whole hospitality sector in Rwanda is subsequently identified with quality service delivery.

These efforts of imparting skills to the broader hospitality industry have seen Serena introduce a series of trainings and internship programs in partnerships with other stakeholders. But as industry captains, Serena has also played a good big brother character by facilitating other institutions and individuals to perfect their roles in the agenda of transforming the sector for the better.

In this regard, Muia, who cherishes over three decades of experience in hospitality, took it on himself and the Serena brand to support upcoming talent.

A case on point is how through a six months internship, Joseph Mutsinzi and his wife Agnes Patricia Uwera under Muia’s and Serena’s guidance were motivated to achieve goals they had thought possible, establishing the f irst ever hospital ity school in the Eastern Province district of Nyagatare.

Mukaje Hospitality and Tourism School currently st i l ls benef i ts support and guidance from Muia and Serena.“Through the internship program I was selected among the priv i leged few to travel to Mombasa and gain exposure in the industry working at Bahari Hotel on the North Coast, a region known for world class hotels and a darling destination of international tour ists,” Uwera who is the school’s Principal shared.

With the exper ience, the couple was encouraged to pass on the sk i l ls and knowledge to the less privileged in the countryside. The start was rather tough, with a negative perception that locals had on hospitality as a feminine sector. When doors opened for learners to enroll into

Mukaje’s hospitality courses, there were hardly enough to fill the class. Only 15 came up and no sooner had the year begun that almost all dropped out leaving behind one student. For a year, the two taught one student, one Joy Mugabekazi. “Today, after relentless awareness creation, we have 48 learners and we are seeing signs that more will be enrolling,” Mutsinzi notes.

To motivate learners into the profession, Serena Hotel offered a job to two graduates of Mukaje, Mugabekazi and a one Jean Paul Dusabimana, while the Serena Manager promised to offer internship opportunities and study trips for all interested students so that they can acquire practical experience in the industry.

“You have all the support you need from me and Serena hotel,” Muia committed d u r i n g a re ce nt v i s i t of t he s c hoo l .Mukaje offers Advanced level secondary educat ion in add i t ion to tour ism and hotelier courses include; food and Beverage handling, housekeeping, front office desk management, and customer care as well as culinary trainings.

any time,” Kanamugire told the beneficiaries. According to Ismael Sinabihaga, one of the beneficiaries, the very act of visiting is worth so much to lonely survivors like himself. “I lost my three children, but having people like you around makes me feel the warmth of a loving family, even for the short while that it may last. Thanks for the packages you came bearing, God bless,” he noted.

The support was welcomed by Omar Gafaranga the representat ive of the genocide survivors’ umbrella IBUKA in Nyarugenge Sector, appreciating the Serena team for the thoughtfulness and urged them to maintain the spirit.

In similar efforts, Serena was in Eastern Province district of Bugesera District where they visited the Nyamata Genocide Memorial site. According to management, activities of supporting vulnerable members of the community are part of the company’s policy and thus will continue to the future.

Serena Hotel staff pay respect to victims of the 1994 genocide against the Tutsi at the Nyamata memorial site

the love that you have showed to me here today,” she told the Serena team. On the occasion, Serena staff also extended food stuff support to 26 vulnerable families of genocide survivors in Rwampara Cell. “We think of you every day, although we are not

in position to visit all the time. We cannot take away the painful memories of the tragedy you beheld and cannot replace the love of the people you lost, but we just want you to know we are always here with you and have our hearts opened to listen to you

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Kayihura dismissed the worries on possible delays to effect payments with Visa cards disclosing that over the one month period over which the service has been operational, no such a concern has been noticed.

“Although we cannot guarantee that connectivity will always be at its best, it is not a challenge we have faced so far and even if it happened, it would not be frequent or even last long if it does happen.”

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ENGEN RWANDA SPECIAL FEATURE

We are delighted with this achievement which is in ligne with our brand p r o m i s e t o a lw a y s

keep our customers at the top of our pr ior it ies . The Visa card payment option is one strong way of ensuring that we deliver on this promise,” Sarah Doukoure, the Director General of Engen Rwanda shared in an interview.

Since mid-April 2015, all Engen filling stations have been installed with Points of Sale (POS) to accept Visa cards for payments. “Having completed th is step, we can now confidently tell all motorists in Rwanda that there is no reason for carrying cash to fill up at Engen. At any time of day or night, you can have your engine filled and pay with your Visa card. There is no minimum amount required”

Based on comments gathered from stray customers already using their visa cards for paying at Engen petrol stations in K igal i , the serv ice is way more convenient than they had anticipated and seamless in terms of time spent making them. “It feels like it is not in Rwanda, I mean being able to have a refill and give out just your card to make the payment,” a thrilled customer shared. Commenting on the service, Engen’s Marketing Manager Jeanine

Visa is now accepted as a mode of payment on all Engen refiill stations across the country

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Taking cashless transactions to new heightsBut this is not the first cashless solution for Engen Rwanda, which also has been operating the Engen 1-card for the past 5 years, offering an alternative to cashless payments of its services. Through the 1-card, a customer is also able to monitor its fleet consumption with kms reading,

Perhaps the confidence showcased by Engen Rwanda’s management in connectivity as a major element for the success of visa payments is rooted in the efforts that Rwanda has made in the past to make this element reliable. The country has completed i t s i n v e s t m e n t i n a 3 , 0 0 0 k m f ibre opt ic to convey broadband connectivity to all its 30 districts, a move that further makes offering convenience services like Engen’s visa payment option a possibility and easy to trust in regards to their reliability from a consumer perspective.

Staff at the refill stations have been trained on using the new cashless payment modes. In photo, a customer pays their fuel refill with a card

Engen’s drive to cashless payment is aligned to the Rwandan Government’s vision of transforming the economy into a cash-free ICT operated one, in efforts to achieve the convenience and swiftness required in turning Rwanda into a business hub for the region

With us you are Number one

Engen’s drive to cashless payment is aligned to the Rwandan Government’s vision of transforming the economy into a cash-free ICT operated one, in efforts to achieve the convenience and swiftness required in turning Rwanda into a business hub for the region. As a retailer of fuel, which is one of the most consumed goods of modern day economies, Engen’s move to make Visa payments possible brings with it good news for drawing Rwanda’s cashless economy dream much closer.

tag identification and online reports. Thus, the 1-card service offers customers the liberty and an unprecedented opportunity to supervise and oversee their f leet’s consumption even when many miles apart.But the 1-card service has mostly been a revolutionary model for customers with larger fleets, unlike the Visa card option which looks at all motorists especially now that almost all banks in Rwanda issue Visa cards. As long as one has a bank account, they can have a visa card once requested for.

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to boosting TV penetration in the country. “We envision a Rwanda where everyone has access to qual i ty informat ion and entertainment available on local, regional and international television stations at affordable rates through our satell i te services which ensure reach of quality signal anywhere,” shared Bakhresa Mounir, the Director of Azam TV in Rwanda shared. In the satellite pay TV category, Azam prides of the most affordable fees both for buying the decoders and monthly subscriptions. As a satellite TV service provider with reach to the remotest parts of Rwanda and the affordable subscription rates, it leave no doubt that Azam TV is well positioned to

Having launched its services in Rwanda, Azam TV registered locally as Azam Media (R) Limited is now ready to supply all decoder volumes that may be required by the market. With just frw30, 000 a customer will be able to walk into any Azam TV dealership and walk out with a full kit including a decoder, smart card, and satellite dish to one TV point. With Azam TV, Rwandans will have access to more than 140 channels from the French and English Bouquets as well as a special Indian Bouquet at a monthly subscription of Frw15000.

The over 140 French and English channels offered on Azam’s bouquets include favorites in the region like WBS, Bukedde, nbs, and TV West from Uganda, TBC, Clouds TV, Channel 10, EATV, ZBC from Tanzania and Kenyan channels like Citizen, KTN. Also, international channels on the bouquet include MBC2, MBC Action from UAE, Liverpool TV, Real Madrid TV, Fox Sports for sports fans, entertainment channels like MTV Base, Box Africa, news channels like BBC World, France 24, Al Jazeera without forgetting Discovery Science, Investigation channel, Fine Living, National Geography, and for the French viewers they have got TF1, France2, France3, France5, France0, Animaux, TiJi, AB1, ABMoteur, RTL9, TMC, NT1, TV 5, and so much more.

For convenience, the Engl ish and French bouquets can be subscribed to separately at monthly rates of Frw6500 and Frw9000 to give the customer access to over 80 and 60 channels from the Anglophone and Francophone worlds respectively. According to Management of Bakhresa Group of companies which owns Azam TV, introducing the pay TV service in Rwanda was driven by the desire to contribute

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SPECIAL FEATUREAZAM TV

Dufourg, Ndagano and Rhys during a press briefing to launch Azam TV in Rwanda

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40000 frw only

For AZAM TV full Kit

Azam TV is one of the many companies owned by Bakhresa Group

Some of the events at the launch of Azam TV

signif icantly contribute to increasing access to televised information in the country. At hardly a month of operations in Rwanda, Azam TV has sold over 200 decoders while there are over 270,000 subscribers in the region. According to Faradjallah Ndagano, the operat ions manager of Azam TV Rwanda, the company has tra ined technical personnel who once a customer buys a new decoder are standby to do all installation services required. “Unlike what the market has witnessed before with satellite TV service providers, we have a unique offering where a customer only pays Frw10,000 for installation and the rest of the costs of

transporting our team for instance are taken care of from our side.” In other words, with just Frw40,000, a customer will acquire the full kit and have their satellite receptors installed at their premises in not later than one day.

Taking Rwandan content to the region

Among other benefits that come with Azam TV is the ability to offer Rwandan content a larger audience in sub-Saharan Africa. “With our decoder, one has access to our range of offering anywhere they may be in sub-Saharan Africa. This means that Rwandan content will have such a large viewership,” Mr. Rhys shared. One such beneficiary is Rwandan football. Considering the Rwanda Peace Cup (Amahoro Cup) Azam TV will broadcast all matches starting from quarter through Azam’s own channel, Azam 1, and the signals will be made available for all local Television channels to tap into and make the games available to local audience.

“This is an exciting moment for us as it signals a new era where local football for the first time will be broadcast live on TV. This is something to appreciate about Azam’s entrance in the market,” Jerome J. Dufourg, the Head of Marketing and Communication of Rwanda’s Federation of Football Association FERWAFA shared. Like the slogan is “entertainment for everybody”, management of Azam TV at the launch in Kigali committed to ensuring that every one anywhere in Rwanda has affordable access to quality entertainment and telecast information.

The supermarket’s vending of internet bundles was rece ived with emot ions b y g o v e r n m e n t a n d

Olleh Rwanda Network, a Korean and Rwandan Governments jo int venture not mentioning customers.

Fr o m t h e g ov e r n m e n t o f R w a n d a perspect ive, S imba’s vend ing of 4G LTE t a ke s t he co u nt r y ’ s e ffo r t s of boost in g access to the techno logy a st e p fu r t he r a s mo re pe o p le a re believed will now access the internet bundles conveniently and by so doing boost its usage.

According to Mrs. Rosemary Mbabazi the Permanent Secretary in the Ministry of Youth and ICT, Simba Supermarket’s vending of 4G LTE bundles signals a new era in which people now begin to see internet accessibility as a necessity and not a luxury. “ It is a great milestone to see a supermarket start se l l i ng 4GLTE bundles to customers wh ich demonstrates i ts growing demand. By sat i sfy ing th is demand through various retailers, Rwanda will be able

Simba-Supermarket now retails 4G LTE bundles becoming the first business of its kind to venture in this

line trade which is believed will contribute significantly to meeting Rwanda’s internet

penetration targets

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to increase access to the service and benef i t from the opportun i t i es that internet presents for the economy.” The Government of Rwanda invested in a national fibre optic (over sq. 25,000 Km) that runs across all 30 districts of the country and is the pipeline through which the 4th Generation Long Term Evolution (4G LTE) internet will be delivered.

H a v i n g c o n c l u d e d l a y i n g t h e infrastructure, the Rwandan Government entered a partnership with Korea Telecom g iv ing way to the establ ishment of a jo int venture, Olleh Rwanda Network which was tasked with supplying 4G LTE network in the country.

A c c o r d i n g t o M r s . M b a b a z i , t h e co m p a ny i s c u r re nt ly m a k i n g la st m i l e c o n n e c t i o n s t o a l l p u b l i c infrastructures in the various districts. But besides increasing access to retail serv ices of 4G LTE network, S imba Supermarket’s venture into vending internet bundles on the technology will benefit the market in several ways including;

Co n ve n i e n ce ; S i m b a S u p e r m a r ke t through its Gishushu outlet operates a l l 2 4 h r s d a i ly m e a n i n g t h a t n o matter what t ime of the day or night a c u s t o m e r n e e d s t o r e f i l l t h e i r internet bundle, the supermarket is available to meet the demand. Reduced cost ; accord ing to Olleh and S imba management, the retail price at Simba Supermarket is the lowest in the 4G LTE retail market with a Gigabyte costing Frw1000.

T h i s re p re s e nt s a mo re t h a n 7 0 % re d u c t i o n i n co st fro m t h e i n i t i a l price of a Gigabyte that was selling at Frw3500 about six months ago when the technology was launched. Access to after sale support services; with the vend ing of 4G internet bundles now available at Simba, the Chairman of the supermarket Mr. Team Teklay d isc losed that a team of techn ica l support personnel has been tra ined to handle customer requ is i t ions on challenges they may face.

B e i n g a new t e c h no lo g y, R wa nd a n consumers are not so accustomed to 4G LTE is and st i l l requ ires a lot of technical support in using it which S i m b a ’ s e n t r a n ce i n t o s e l l i n g t h e bundles comes as a great addition that will increase the availabil ity of such support services to customers.

Rwanda has set its targets of access to 4G LTE broadband internet to 95% n a t i o n w i d e by 2 0 1 7 , a n a m b i t i o n whose ach ievement requ i res more i n v o lv e m e n t fr o m p r i v a t e s e c t o r parties like Simba to play a leading role.

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SPECIAL FEATURE SIMBA SUPERMARKET

supply of necessary equipment, installation and after sale maintenance, Crown Solutions has experts that support the construction process to meet the regulatory standards of electrical applications; both the local and international regulations. “We provide an all-round solution to electrical engineering needs. From pre-sale consultations to identify what a particular project needs, designing, supply of necessary products, installation, to post-sale maintenance and support services,” Sumeet Kumar, the proprietor of Crown Solutions Ltd notes.

Pre-sale consultations are offered free of charge, meaning anyone can walk into the Crown Solutions’ shop in Kigali and consult on their projects needs. “Most of our selling activities involve a lot of questions posed to customers like why they want a particular

However, if there was someone (an institution) that not only sells such products but also has c lear understand ing of

their applicability, it would save so many contractors and constructors the trouble of using a good product for an unsuitable application. Luckily, such a person now exists in the identity of Crown Solutions Ltd.

As an engineering company that provides access to all sorts of products required in the areas of electrical and electronic applications such as setting up high or low power supply units, water treatment plants, installing fire protection systems and electrically wiring constructions, Crown Solutions Ltd is a consortium of experienced engineers with acquired knowledge from across the globe. From project designing,

CROWN SOLUTIONS SPECIAL FEATURE

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product, where they want to use it and so on. By doing this, we help them use the best components available on the global market, to meet their special needs,” Kumar notes. Since 2013 when Crown Solutions was established in Rwanda, there are several projects the team has designed and implemented but like Kumar shares, the biggest achievement over the last two years is the return customers who have seen the value of the company’s services and are making use of them repeatedly.

In terms of the team, Kumar notes that each of the six standby engineers working with the company has averagely 30 years of experience acquired from all over the world. Cumulative experience of the multi-cultural team at Crown Solutions in the areas of electrical and civil engineering is therefore estimated at over 150 years. “All this knowledge and skills are available to ensure that a customer’s needs are met within the shortest time possible and at the most economic rate within their budget.

There is no reason as to why a customer should roam the world in search of right products to use in various applications, we are here and experienced to offer this service.” The products are from the world’s best producers of electrical components in the United Kingdom and Europe at large, the Americas, and Asia. Crown Solutions Ltd already has partnerships with some of the major brands making sure that the customer gets the very best.

“We supply right products for the right jobs at the most affordable rates,” he clarified. Currently Crown Solutions not only serves customers in Rwanda but Burundi and Eastern DR Congo too. And as such, the focus is simply to offer solutions for everyone no matter the size of their projects and service the entire East and Central African regions.

Most of our selling activities involve a lot of questions posed to customers like why they want a particular product, where they want to use it and so on. By doing this, we help them use the best components available on the global market, to meet their special needs,...

Sumeet Kumar, the Propriator of Crown Solutions Ltd

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Business owners and aspiring entrepreneurs lack some necessary skills in enterprise management and having noticed this need, ADC narrowed focus on supporting them to start and run successful ventures that would eventually employ them and eventually offer opportunities for others in their respective community. Priscilla Umutashya the EH Business Development Officer explains that the institution trains business owners and aspiring entrepreneurs on a wide range of issues surrounding business operation and management including principles of book keeping, taxation, fund mobilization, accounting, plus advertising and marketing.

The models of delivery as she continues t o e x p l a i n a r e o f t e n i n group sessions or individual support. But either way, ADC targets a uniform outcome; having its beneficiaries run successful business projects. For would be entrepreneurs, ADC offers extra support a c t i v i t i e s w h i c h i n c l u d e generating business ideas, f ine tuning and improving existing ideas, or providing business ideas.

“We have several business ideas already proven viable i n o u r d a t a b a s e, s o fo r entrepreneurship enthusiasts without practical ideas to implement, we offer them a variety of choices to pick from,” Umutashya explained.

Currently, ADC works with over 100 business owners on a regular arrangement. But beyond individual businesses, the institution has had a huge impact in shaping Rwanda’s entrepreneurial landscape through various platforms including those created by government.

The Africa Development Consultant (ADC) was incorporated to serve and address the Business Development Service (BDS) needs of Micro, Small

and Medium Enterprises (MSMEs). To a greater extent, with support from the government of Rwanda and International organizations, ADC can be said to have lived up to its mission in numerous ways.

For the past e ight years of operat ion, ADC has served as a local implementing Partner for the funded United States African Development Foundation (USADF) projects in Rwanda. The USADF supported projects are mainly in Agriculture sectors of; Coffee, Tea, Dairy, Maize, Rice, potatoes, Cassava, horticulture, fishing (sambaza), honey.

Besides agriculture, USADF also supports w o m e n p r o j e c t s i n h a n d c r a f t a n d construction. Under the USADF Rwanda Program, ADC roles include supporting R w a n d a n e n t e r p r i s e s a n d m a i n l y Cooperatives in business development.

Ms. Rebecca Ruzibuka, Managing Director Africa Development Consultant, shares some good business practices with a group of youth entrepreneurs during a session at the ADC Headquarter

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AFRICAN DEVELOPMENT CONSULTANTS SPECIAL FEATURE

Upon receiving funds under USADF, ADC continues to provide post finance capacity building support that involves monitoring and evaluation of the project, training and coaching in various areas of business management. Under this program alone, about 50 cooperatives have been supported to access USADF funding ranging between USD 100,000 to 250,000.

Bes ides support in implement ing the USADF Program ADC with support from SPARK has established an Entrepreneurship Hub (EH). The hub aspires to harness Rwanda’s entrepreneurial spirit and support businesses to reach their growth potentials.M

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City Infants and Primary School now has over 250 pupils and has levels up to primary six.The school learners have sat for National Primary Leaving Examinations since 2008

Teddy Gacinya of City Infants and Primary School

A trained teacher with so many years of exper ience in transforming l ives in the classroom, Teddy Gacinya carried the dream to found her own school for more than two decades. After heading successful schools, she kicked off with her project City Infants and Primary School but the beginnings were pretty turbulent. Because she operated in rented structures, she had to switch locations several times and this affected her output until she realized it was time for her to secure land and embark on constructing her dream school, lest it became too late.

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Teddy Gacinya, the proprietor of City Infants and Primary School says her dreams were

catalysed by ADC’s business support

However she acknowledged her incompetence in business and thus sought after a partner who would f i ll the gaps and match her expertise to the task that lay ahead. In 2009, she found the partner in the person of the Africa Development Consultant and since then, she has grown to trust Ruzibuka and her team, who now go by the title “good friends.”

Throughout the process that led to acquisition of land in Rusororo, Kicukiro district, securing a bank loan to finance construction activities, up till City Infants and Primary School’s current stature, ADC has been on Ms. Gacinya’s side and has participated in it all. First she confides that the idea of using her own savings first to kick start the project and seek credit later was from ADC, one she is most proud of because she has seen its fruits first hand.

“I had made some savings but ADC kept urging me to make more and ensure that what I eventually will borrow will const itute about 30% of the whole investment.” And when time to get credit came, it was again ADC which drew the company’s business plan which Gacinya says was flawless and without any further complications. “I immediately got the loan thanks to ADC in part.”

Mukankwaya Bernadette of Indakemwa, banana brew manufacturer

With more than 20 years of banana b rew i n g, M u k a n k waya B e r n a d e t t e a l i a s N y i r a b y e n g a was struggl ing to get c u s t o m e r s f o r h e r b e v e r a ge, w h i c h s h e a t t e st s i s a n o r i g i n a l banana brew made with the h ighest standards of hygiene possible and w i thout any chemica l additions.

And though she clarifies that the stretch ahead of her is nothing close to smooth, Mukankwaya says that her operations got a s ignif icant boost when one of her partners, Musengimana Devota who

Mukankwaya and Musengimana inside the Indakemwa factory. They attest that their marketing efforts have improve since they began working with ADC

is charged with the company’s marketing activities attended her very first training from ADC. The training as Musengimana explains was in marketing and how to utilize various tools of business marketing to reach one’s goal while ensuring that the company’s finances are not overstretched in the process.

“After that training, the vague concept I had had of marketing cleared giving me a better understanding of what needed to be done. We are still far from our targets but also better off than we were. ADC has been a significant partner in our current achievements.” Besides that first training, Musengimana has benefited from many more training including the networking function of April 30th.

Eventually, he realized that he had made a wrong move by renting a whole house in Kimironko for the bakery, constructed an extension on his home in Gatenga, Kicukiro district in Kigali where the bakery now operates from. The decision came from among others the business ideas he was gaining from ADC, a new group he had just joined back then.

“Their (ADC) support to me is on business management, advising on the best tactics to use in responding to particular challenge, offering market intelligence and how to fine-tune production to meet prevailing needs and most importantly offering marketing opportunities.” With the expert support of the Africa Development Consultant, Mugurwangoma says he now has over 20 supermarkets he supplies his products to including Sawa Citi.

Upcoming Trainings � Marketing training for existing and growing businesses � Finance and accounting training for existing and growing businesses � Business plan elaboration for existing and growing businesses � Training for women entrepreneurs on taxation and business management

Entrepreneurship Hub Events � The EH conducts monthly networking events

For more information Contact:

Address: KG 11 AV, KG 165 ST & KG 192 ST Junction Kimironko

Tel: 0782766916, +250(0)55100487

Email: africadevelopmentconsultant@gmail.com, enterprisehub2014@gmail.com

SPECIAL FEATUREAFRICAN DEVELOPMENT CONSULTANT

John Mugurangoma displays some of City Bakery’s machines at

the factory. His bakery now supplies to over 20

supermarkets

ADC’s activities also include joining entrepreneurs in their places of work to monitor and support them in improving their business operation. In

photo women Cooperative COOPPAVI are supported by USADF to expand their sambaza fishing activities to new levels

“Business in a box” program expected to take entrepreneurship to new heights

In the new program codenamed ‘business in a box’, ADC recruits entrepreneurs with already existing businesses who want to get mentoring, coaching, and guidance. Also, they are provided with a business tool kit that offers step-by-step guidance to excellence in their respective businesses and stimulates innovativeness in order to survive the ever increasing competition in the market.

The tool kit also includes a guidance that shows videos of processes and procedures of production with regard to innovation in ordinary businesses. From over 250 applications to “business in a box”, 30 were enrolled and the program is scheduled for June-September with an intended outcome of improving involved businesses by offering new approaches and building their competitiveness.

Domitillle Abambazimana, ADC’s Financial Monitoring and Training Officer (in red) offering on job training to Isabella Nzamulinda the president of Agasaro Cooperative as part of its support to entrepreneurs. The cooperative benefited an expansion grant

with which they established a Pineapple juice making factory in Nyamasheke, Western Province, Rwanda. 48

City Bakery’s John Mugurwangoma

A self made pastry-chef, Mugurwangoma developed his business idea for over five years before he could afford to put it into practice. He wanted to fill the gaps he had seen in Kigali’s pastry supply by offering what was not on market yet. He has says he has been doing just that now for three years as he counts his achievements with pride. As he kicked off implementing the idea, it was no bed of roses as he hustled to the business’ first customers.

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Remera-Kimironko RoadNext to BANK OF KIGALI, REMERA

BRANCH, REMERA, KIGALIMob:0788389558

Unique shopping experience for your roofing sheets

Welcome to

sector. Aimable Nkuranga, the Country Manager of Transunion Rwanda noted “We want people to now see us as a solution to all credit related information.” Reiterating the improved service portfolio Philips noted, “We will now be able to offer an expanded a range of solutions to customers across Africa, including the TransUnion Credit Score, which is now available for Rwanda. This solution is an essential tool that eliminates many of the inherent issues with manual underwriting and pre-screening methods, providing lenders with an objective, data driven measurement on which to base decisions.

T h i s i s e ss e nt i a l i n re d u c i n g t he r i s k associated with credit lending, which in

turn is critical for sustainable e co no m i c g row t h . ” I n

the same spir i t , the Transun ion Cred i t

Score is believed will play a critical role in addressing the information n e e d s of b ot h ind iv iduals and i nst i t u t i o ns t o

facil itate faster service delivery.

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Transunion Credit Score specific for the Rwandan market to improve risk assessment and offer consumers bargaining powerA credit score as defined by the Transunion experts is a number that represents a consumer’s r isk level based on their credit history at a particular point in time. Credit scores use past credit information to predict future good and bad payment performance. The score represents an estimate of the probability that a particular event, such as a delinquency, will occur in the future.

The Transunion Credit Score for Rwanda is a generic credit score that features bands that represent the score of a particular individual which can be used to assess their level of risk. The scores are generated from observing someone’s financial information for a 24 month period, used to inform decisions over 12 months before a new score is generated. Basing on the Transunion Credit score, a financial institution and anyone willing to offer credit facilities to a given party is offered the opportunity to timely and accurately assess their credit worth.

This swiftness in assessment among others fa c i l i t a t e s s p e e d y d e c i s i o n m a k i n g o n a customer’s demand and reduces the costs that companies previously spent on assessing the risk a particular customer presented. “By just accessing a particular customer’s credit score and identifying their respective band, an institution can base on the information and a few other

SPECIAL FEATURECREDIT REFERENCE BUREAU

Th e re b r a n d i n g fo l low s t h e acquisition of Credit Reference Bureau Afr ica by Amer ican leader in credit informat ion

and information management services, Transun ion, a transact ion that was c o m p le t e d i n 2 0 1 2 . A c c o r d i n g t o Transunion’s CEO for Africa Regions Grant Phillips who oversaw the launch of the new brand in Kigali, the delay to rebrand the Rwandan operations was as a result of the need to let the company which had hardly been in the market two years at the time, strengthen its presence.

“Now we believe that it is the right time to take credit information and information management in Rwanda to another, much higher level,” he shared at the launch in Kigali. As the company rebranded, a new product was launched – the Transunion Credit Score. With the new face, former C R B w i l l t r a n s f o r m from a str ict ly cred i t i nfo r m a t i o n p rov i d e r to offer more all-round solutions to information n e e d s i n t h e f i n a n c i a l

Top Management of the Transunion in Africa and Rwanda in particular at a Press Briefing to announce the

rebrandnig of CRB Africa

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assessment tactics to decide on how they would; treat a particular request, develop new clients, and best service existing ones,” Nkuranga explained.

Giving way to credit score based pricing of loansAnother benefit of having accurate credit score is the ability to distinguish a trustworthy customer from a bad one, and thus ensure that their treatment in the marketplace is based on their discipline with money. To customers and managers of Rwanda’s financial sector, i t i s a mind teaser understand ing why people who have for instance demonstrated good repayment behavior and are credit trustworthy continue to get access to finance at the same high cost of lending as is with the “not so disciplined” counterparts.

for them and see it for the business transaction of buying and selling that it is. “Once this is achieved, then consumers will be capable of negotiating and bargaining for better terms just like they would while buying any other product or service,” Rwigamba shared reiterating that Transunion’s credit score will play a vital role in this process. The rigidity among financial institutions on generaliz ing risks and thus charging all consumers highly is assumed by Transunion to be as a result of the poor utilization of available information.

According to Mr. Phi ll ips, there has been limited use of the facility by most financial institutions despite the fact that all of them pay a monthly fee to have all time access to the credit reference facility. “Almost 90% of the financial institutions subscribed to our services do not fully utilize them to facilitate their risk assessment procedures.” This was affirmed by the Secretary General of the Association of Microfinance Institutions in Rwanda Peter Rwema who noted that most inst itut ions under the umbrella have not yet grasped the importance of the facility.

He however noted that several efforts are being made in partnership with Transunion Rwanda to raise awareness and that success in the form of increasing use of available credit information is being recorded. With accurate credit information accessible on each individual, Transunion believes that they are going to have a significant impact on the cost of financing in Rwanda by influencing the extra charge financial institutions charge a customer based on the presumed risk of lending to them.Those with good credit history which places them in healthy bands on the credit score will benefit from cheaper credit facilities. On the other hand, any customer willing to know their

Some of the guests’ views were heard during the Launch of Transunion Credit score for Rwanda

Aimable Nkuranga the Country Manager of Transunion Rwanda speaking at the launch of Transunion Credit score for Rwanda in Kigali

Eric Rwigamba the Director General of Financial Sector Development services at Rwanda’s Ministry of Finance and Economic Planning appreciated the launch of the new credit score for Rwanda but called onto financial service providers to use it in offering customized services that suit each customer’s discipline. “It is incomprehensible as to why a customer A with good credit score should be charged an interest rate similar to that of another B with poor score yet they do not have similar risks.”

Towards this end of ensuring that a well disciplined customer benefits from their credit history, Rwigamba called on Rwandan consumers to use their scores in bargaining for better rates with bankers or else their good track history would be in vain. “People should stop assuming that access to credit facilities is a Good Samaritan service that bankers do

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credit score have an opportunity of free access once every year. This is believed will advance the financial sector into the next generation where consumers are conscious of their credit information and work to improve them every now and then. The benefits presented by this consciousness span from improved financial literacy and discipline to boosting economic development through the growth of a literate economy.

Credit reference services vital for economic growthThe Credit Reference Bureau has operated in Rwanda since 2010 and since its establishment; there are numerous achievements to count especially the lowering of non performance in the loan portfolio in the economy. Considering the period between 2010 and 2014, the level of nonperforming loans in the economy significantly reduced from over 10.8% in 2010 to 6% as per National Bank of Rwanda figures signaling a more than 44% reduction.

And although this achievement cannot be attributed to credit reference alone, players in the financial sector who convened to witness the rebranding of CRB Africa in Rwanda to Transunion agree that its role in improving f inancial stabil ity is unfathomable. With increased use of the information available at the bureau and utilization of the newly launched Transunion Credit Score, there is reason to believe that not only will non performing loans be brought even lower but also the costs of operations especially of assessing and mitigating risks will be lowered to benefit both financial service providers and consumers.

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