Wednesday, October 2nd, 2013

Change in transport policy causes Senate headache

Minibus drivers feel they are squeezed out of the market. (file photo)

Recently, Kigali changed trans­port zones and regulations for minibuses in an effort to shorten lines at bus stops and im­prove overall transportation in the city. While the public welcomed the change, some transporters are unhap­py.
http://www.youtube.com/watch?feature=player_detailpage&v=QYpwyRApCII#t=64

The changes resulted in removing some mini-bus drivers from the road, and now those drivers are petitioning the government to reconsider its ac­tions.
On September 17, drivers in the Association of Transporters went to the Prime Minister’s office and the senate with a letter presenting their complaints, namely, losing their busi­nesses. They are demanded that they be allowed to reopen their transport businesses after reforms are complete.
Instead of seeing their demands taken into consideration, however, the drivers were arrested and put into jail by security forces for illegal dem­onstrating.

On September 23, the commission of finance in the senate scrutinized the appeal as presented to it by these citizens and said that it will make a decision after listening to both par­ties.
“Drivers presented to us their ap­peal saying that they were treated with injustice. Tomorrow we will talk to the other party, the city of Kigali, then after we will communicate to you the decision,” said Perine Mu­kankusi, the head of finance commis­sion of the senate.
The problem seemed to be tricky on Tuesday, as the meeting was a closed one, attended by the mayor of the city of Kigali, Fidel Ndayisaba, the Min­ister of State in charge of transport, Alexis Nzahabwanimana, as well as other officials from RURA and the members of senate.
However, neither of these officials has talked to the press.
Fidel Ndayisaba on his side was saying, “This is at the senate, put your questions to them.”
The senators were also not ready to comment on the issue or respond to questions from the journalists present.

“We request that parliament advocates for us and that we be given three years of additional time to operate in Kigali.”

The transport reform allows only three companies to operate in the city of Kigali, while the remaining buses and minibuses are relegated to using secondary, less traveled roads.
According to officials, the new transport reform was put in place to bring positive change to the city and reduce long rush hour queues.
While the out-of-work minibus drivers complain that they can no lon­ger afford to feed their families, the mayor of the city told that the new transportation policy was not intend­ed to help the vulnerable, but to im­prove transport in the city.
Kigali Bus Services (KBS), Royal Express and Rwanda Transport Fed­eration Cooperative (RFTC) share passengers in designated transport zones.
James Ngirente, a mini-bus driver, says that drivers have asked the par­liament to advocate for their jailed colleagues to be released, and that people with mini busses be granted the license to operate in the city, as they plan to invest in buying busses.
“We request that parliament advocates for us and that we be given three years of additional time to op­erate in Kigali. We also need our col­leagues taken by the police to be re­leased,” he said.
After presenting the letter to the Prime Minster’s office, these drivers went to Kacyiru bus station, where they met their colleagues and from where the police arrested them.
While the drivers of minibuses ap­peal for their lost jobs, passengers in Kigali say that the new system is more efficient and convenient.
“After the reform and implementa­tion of transport zones, things have been well arranged in the city. There are no longer people coming to push passengers into their small cars. Now we simply know what bus is coming and we wait for the right time to go to a certain destination,” says Clarisse Uwayo.
The new transport system was launched on August 30, 2013.
According to the spokesperson of the police, the case against the dem­onstrating drivers was handed to the prosecution.

KCB launches M-Benki in race for micro-deposits

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Cabinet Secretary for Information, Communications and Technology (ICT) Fred Matiang’i (left\0, Kenya Commercial Bank Group chief executive officer Joshua Oigara and Safaricom Limited CEO Bob Collymore (right) during the launch of a mobile banking product dubbed KCB M-Benki targeted at the unbanked population in Kenya and the region. Photo/SALATON NJAU  Nation Media Group

By Scola Kamau, The EastAfrican, Special Correspondent

Posted  Tuesday, October 15  2013 at  15:16

In Summary

• KCB Group has launched a mobile banking platform targeted at the unbanked population that allows customers to open a bank account without physically visiting a branch.
• The platform dubbed KCB M-Benki, which will be available in Kenya, allows customers to open an account under Safaricom’s M-Pesa menu with as little as Ksh1 ($0.01).
• The launch of KCB Group’s new platform comes almost a year after Commercial Bank of Africa (CBA) and Safaricom launched a banking platform dubbed M-Shwari that allows customers to open up an account and access micro loans from the bank.

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KCB Group has launched a mobile banking platform targeted at the unbanked population, that allows customers to open a bank account without physically visiting a branch.

The platform dubbed KCB M-Benki, which will be available in Kenya, allows customers to open an account under Safaricom’s M-Pesa menu with as little as Ksh1 ($0.01).

The launch of KCB Group’s new platform comes almost a year after Commercial Bank of Africa (CBA) and Safaricom launched a banking platform dubbed M-Shwari that allows customers to open up an account and access micro loans from the bank.

READ: Kenya’s M-Shwari transactions hit $445.9 million

“With the growth of mobile phones penetration, the product will be accessible to the unbanked population across the country,” said Joshua Oigara, KCB Group chief executive officer adding that other countries will be considered in the near future.

The platform is hoped to bring a larger population into formal banking, benefit the small and medium enterprises and reduce time spent in opening accounts.

“One automatically becomes a member of KCB and can carry out all other transactions using a mobile phone,” said Mr Oigara during the launch.

KCB Group, which is Kenya’s largest bank in terms of assets, also has operations in Uganda, Tanzania, Rwanda, Burundi and South Sudan.

After CBA’s launch of M-Shwari, micro-loans offered by Safaricom’s virtual banking platform M-Shwari rose by almost 10 times over the seven month period ended July this year, according to data from the Central Bank of Kenya (CBK).

READ: Number of banked households rises, buoyed by reforms in financial services

Total cumulative loans issued under M-Shwari stood at Ksh3.2 billion ($36.7 million) in July 2013, from Ksh337.6 million ($3.88 million) in January 2013 while the total value of savings stood at Ksh1.39 billion ($15.9 million), up from Ksh451.9 million ($5.194 million) over the same time period.

“Accessing all bank services through the phone encourages people to make commitments; we hope to see the banked population rise with more of such products from all sectors,” said Fred Matiang’i cabinet secretary in the ministry of Information Communication and Technology.

KCB Group’s M-Benki launch comes at a time more financial service providers have followed in the footsteps of mobile phone service providers like Safaricom, Airtel, Telkom Kenya and Eassar who have put in place options to enhance mobile bill settlements.

These options have enabled customers to pay for utility bills including electricity and water and are now allowing customers to even purchase goods at various retail outlets.

Construction industry still growing

A major challenge facing this industry has been the lack of local players in the sector, a reality that is attributed to the inadequate availability of domestic skilled labor. (file photo)

When driving around Kigali, one of the first things you will notice is the construc­tion taking place almost everywhere. Rwanda is currently facing what many would call aconstruction boom. Engineer Kenneth Mwiami with Roko construction says that the increased need for permanent structures is the reason for the boom: “More people are settling in the country and with that there is a need for more structures in the form of homes and offices for these people.”
The country’s construction industry has not only been limited to housing and buildings, but concerns all oth­er sectors of infrastructure. Minister of Infrastructure Silas Lwakabamba noted that a good infrastructure sys­tem is fundamental to achieving the set target of Vision 2020, “with a good infrastructure network we can attract more private investment that enables us to attain the goal of having a self-sustaining economy.”
Currently the ministry of infra­structure is working with other sec­tors, such as Energy, on different in­frastructure projects like the Rusumo and Nyabarongo dams for hydro elec­tricity, and the Ministry of Sports and Culture in building a multi-million sports complex in Kimisagara.
With four major construction com­panies at the beginning of the year, two more players have joined the fold and more are expected as the indus­try becomes more competitive. A ma­jor challenge facing this industry has been the lack of local players in the sector, a reality that is attributed to the inadequate availability of domestic skilled labor.
But these challenges will be curbed by the signing into law of the new construction law draft.
“The new law will enable to stream­line all the challenges facing the con­struction sector,” Lwakabamba also notes.
New construction law
Construction industry stakeholders have welcomed the new national con­struction policy draft proposal, saying it will streamline the sector and solve the challenges it currently faces, when the law is approved by the Cabinet.
“The draft policy addresses issues like inherent market restrictions, lim­ited access to credit, lack of manage­ment capacity and classification of lo­cal contractors, allowing for flexibility in the sector,” says Lwakabamba.
The policy will also promote spe­cialization and empower local consul­tants to take on big projects, as well as ensure that they access the necessary equipment and materials.

“With a good infrastructure network we can attract more private investment that enables us to attain the goal of having a self-sustaining economy.” Minister of Infrastructure Silas Lwakabamba

Lillian Mupende, the City of Kigali director for urban planning and con­struction, said when approved and implemented, the law will streamline operations in the sector.
“The construction sector is one of the major pillars of our economy. If it is organized and regulated, this will attract more investment into the sector and promote quality and con­sumer safety,” Mupende, who is also the head of the city’s One Stop Center, noted.
She said that when implemented, the policy would help improve the technical capacity of local contractors, thus creating more employment op­portunities for the youth.
According to Peterson Mutabazi, a principle senior engineer at the Min­istry of Infrastructure, the policy will strengthen compliance and adherence to sector standards.
“The draft policy articulates the core functions and priorities of gov­ernment in the industry and addresses issues like lack of maintenance plans.”
Eric Ntagengerwa, the head of planning at the Rwanda Transport Development Agency, said the policy is timely, especially at a time “when the agency is facing a lot of challenges with some contractors. Regulating the sector will help address the issues of lack of quality, inefficiency and lack of categorization in the industry,” Nta­gengerwa noted.
According to the draft policy, gov­ernment involvement in the sector, especially implementation of physical infrastructure projects, will decrease, creating more room for the private sector to take control.
Dismas Nkubana, the chairman of the Rwanda Engineers Governance Council, said the policy simplifies operations for players in the sector, something he hopes stakeholders will exploit to the benefit of the public.
“Combing different players in the industry will make it easy for it to work as one entity. Easy supervision and accountability will bring sanity to the industry,” Nkubana argued.
Lwakabamba said the draft poli­cy is one of the Ministry’s initiatives aimed at creating favorable conditions that allow the population to access eq­uitable and reliable infrastructure, in­cluding transport, urbanization, habi­tation and energy, while protecting the environment.
According to Geoffrey Mutabazi from Rwanda housing authority, the construction sector has not yet hit its peak: ‘with stability and the rampant economic growth this sector is still rapidly growing and we expect more players i

Fresh plan to double tourist arrivals by 2017

PHOTO | DIANA NGILA President Kenyatta with various Cabinet Secretaries and other leaders at the Magical Kenya Travel Expo.  NATION MEDIA GROUP

In Summary

• President Uhuru Kenyatta said the government plans to increase budget allocation to increase tourist arrivals
• Tourism Cabinet Secretary Phyllis Kandie said the plan is to tap to meetings, incentives, conferencing and exhibitions tourism

More by this Author

Tourism will have to diversify its offering from the beach and bush package if it is to double tourist arrivals by 2017.

Speaking at the official opening of the third Magical Kenya Travel Expo on Friday, Tourism Cabinet Secretary Phyllis Kandie said the plan is to tap to meetings, incentives, conferencing and exhibitions tourism.

“We have just released a five-year national tourism strategic in which we intend to place a strong emphasis on investments in conference and convention tourism.” The plan seeks to embrace and retain traditional markets but scout for opportunities in emerging markets.

Speaking at the same event, President Uhuru Kenyatta said the government plans to increase budget allocation to increase tourist arrivals. Kenya receives 1.5 million tourists annually. “We have committed to promote Kenya as a destination, rather than stop-over, and to attract at least three million tourists annually,” he said.

Mr Kenyatta added: “Tourism generates around 12 per cent of Kenya’s gross domestic product and accounts for about nine per cent of the country’s total formal employment,” said .

Kenya Tourism Board managing director Muriithi Ndegwa said this years’ expo also focuses on seminars that are aimed at creating updates on trends in tourism in terms of sustainability.

Mr Ndegwa said since Africa has been recognized as the second frontier in investments and tourism presents a need to live up to those expectations.

More in Section Kenya to seek Tanzania advice on creation of mining agency

‘Modern farming practices the way to go’

The farmers and agribusiness professionals agreed that modern technology is the way to get the best out Rwanda’s arable land. (file photo)

Stakeholders in the agricultural sector have gathered at The Office, a co-working space in Kiyovu, to take part in an agri-business forum. The forum was aimed at promoting different agriculture based businesses and enable networking, and it showed the importance of the country’s most constructive sector.

 http://www.youtube.com/watch?v=nCCu3UR-x7A&feature=player_detailpage#t=98
Jacob Emmanuel of White Onion farm, talked about the importance of monoculture and permaculture types of farming in a country like Rwanda: “Monoculture is expensive and destructive especially on Rwanda’s terrain, but it’s the best way of achieving good quality agricultural products,” he said.
The forum also emphasized the importance of training farmers on how best to acquire startup capital, something that has hindered many of them from purchasing the right agricultural tools and expanding their businesses.
Steve Johns of FAIM Africa, the first and only tissue culture lab and propagation nursery of its kind in Africa, noted that for Rwanda’s produce to compete with the rest of Africa, it should ensure production of quality, virus free plants and embrace modern farming techniques like the tissue culture.
“Tissue culture gives predictable, assured results at the right timing of the highest quality,” said Johns. “With tissue-based farming, farmers are assured of quality produce in a shorter period of time,” he added. Through tissue culture, the company projects to bring in $10 million of revenue within the next four years, thus a profit of $4.5 million in the same time.
The farmers and agribusiness professionals agreed that modern technology is the way to get the best out Rwanda’s arable land.

RGB to adopt another evaluation of service delivery in public institutions

(L-R) Ildephonse Niyonizeye, CEO of Imanzi consult, Dr. Felicien Usengumukiza, Deputy CEO of RGB in charge of Research and Monitoring, Solange Uwizeye from RGB too (Photo by Philippe Mwema Bahati)

In an effort to improve delivery of services in the public sector, the Rwanda Governance Board (RGB) is adopting a new method of examination to better reflect where institutions need to improve.

The last government scorecard released this year indicated that service delivery is still low, with about 70 percent satisfaction.

RGB has worked with Imanzi consulting to develop indicators that will help institutions self-assess their strengths and weaknesses and improve their services.

The indicators address all sectors outlined in the EDPRS II in order to better allow them perform their tasks and keep in mind their long-term goals.

Emmanuel Munyandinda, a consult with Imanzi, said that service quality covers different domains, including facilities available and human resources. “You may have a tool but using it is another thing”, he said, indicating that poor service delivery needs to be mitigated by not just having the right tools, buildings or equipment, but also by using them correctly and efficiently.

Felicien Usengumukiza, the deputy CEO of RGB in charge of research and monitoring, said that public institutions still have gaps in service delivery.

He said that the level of service delivery is not satisfactory, and that why the government needs to improve service delivery.

Usengumukiza pointed out that in central government cumbersome and time-consuming processes still hinder service delivery.

He commended local governance for trying to improve the service delivery at their level. However, he maintained that there are still indicators of poor service delivery at some points, mainly due to bribing or to the wish to attain performance contracts.

“Sometimes local leaders do not offer services properly as expected due to that they want to achieve their goals during performance contract,” he said, noting that people should get the free services they need in public institutions.

He also called upon private institutions to consider service delivery as the main pillar of business.

Studies show that poor service delivery costs about 40 million RwF a year in losses.

Observing that even in the private sector, service is not perfect, the deputy CEO of RGB requested both private and public sectors to deliver better service. Which, according to him, is easy: “Delivering service is not difficult; it depends simply on will depending on your objective and where you work. People need to change behavior and love it.”

Rwanda among ten best countries to start a business

Business registration at RDB can be done in only 6 hours. (file photo)

The latest report by the World Bank on Doing Busi­ness has ranked Rwanda among the top ten countries in the world to start a business.
According to the report that ranks economies for ease of do­ing business, Rwanda is the only country on the African continent that has appeared in the top ten, where it is ranked eighth.
The report indicates that New Zealand is the easiest place to start a small and medium-sized enter­prise in the world, which is one of the ten indicators used by the WB to assess the business environ­ment in countries.
This is the second consecutive year that New Zealand has come first for that particular indicator in the ranking. After registering a company name online, entrepre­neurs can apply for tax-related ac­counts and incorporate the com­pany at the same time.
The rankings look at 185 econ­omies around the world. The top ten list includes New Zealand, Australia, Canada, Singapore, Macedonia, Hong Kong, Georgia, Rwanda, Belarus and Ireland.
In assessing how easy it is to start a limited liability company, the report looks at how many steps are officially required or common­ly done by entrepreneurs, as well as how many days it takes to go through those procedures. The report also looks at cost and the minimum capital required, with zero percent of income per capita being best.
The report shows that in New Zealand, it takes only one step and one day, the ideal number, to incorporate a company. Someone who wants to open a business just has to apply for registration on­line. According to the report, the process costs 163.55 New Zealand dollars (US$ 129) and does not have a minimum capital require­ment.
By contrast, the U.S. ranks 13th, needing six steps in order to start a business with no minimum capital. The report based the U.S. statistics on requirements in New York City, as it used the largest business city of each country it studied.
Rwanda’s case
The report indicates that it is simple to start a business in Rwanda compared to other coun­tries in Africa, as it’s free of charge to register a company in Rwanda if done online and the certificate is issued in one to three days.
Statistics at the Rwanda Devel­opment Board (RDB) show that currently, registering a company takes an individual only six hours and a cost of Frw 15,000 for physi­cal registration, while it is free if done online.