Issue 15 September 2011

Telling Rwandas Story

ANALYSIS REPORTS

MAGAZINE
FEATURES

COMMENTARIES

Kagame makes historical visit to France

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September

2011

CONTENTS

INSIDE SEPTEMBER 2011

Bank of Kigali
BK IPOs over subscribed to boost RSE

PRESIDENTIAL MONTH
President Kagame from September 11 made a historical 3-day visit to France following an invitation from his French counterpart, Nicholas Sarkozy when he visited last year. The visit is expected to open another chapter in relations between the two countries.

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P12

Doing Business
EAC confirms Rwanda as top business destination

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Rwanda hosts 3rd Coffee Cup

of Excellence Competitions

Primus Guma Guma Superstar

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P 32 P 46 P 48 P 52 P 62 P 66 P 68
Free education in Rwanda Women economic empowerment in EAC Tourism tops Rwandas investments Correct working postures good for your health One Laptop per Child Program in Rwanda Women Equality and Peace Keeping Missions The rising food prices in Rwanda
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H e S ptem m r r 11 H o po p e eS e p t eb eb e 2 02 0 1 1

PUBLISHERS WORD

The weight of History,

Telling Rwandas Story

MAGAZINE

Dignity in Franco-Rwanda Partnership

PUBLISHER:
Rebero Daniel (+250 788 524189)

OPERATIONS MANAGER:
Ingabire Marie Josee (+250 788 409988)

MARKETING:
Albert Ndata (+250 788 404138) Leonard Shema (+250 783 199937)

P
his year.

resident Paul Kagame recently returned from his historical three-day visit to France following an invitation from counterpart Nico-

ed, pacification, along the way, taking the place of avenging and revenging. Now, these reconciliatory, restorative and pacification tenets are being carried to greater heightsinternational level. If the parents of this generation sowed the seeds of hate, we harvested them in 1994by way of the cruelest massacre of the recent centuriesgenocidethe children of this generation should sow seeds of unity, peace, oneness and togetherness, amongst ourselves and even those international players that deranged our history France inclusive. The fruits of this will, certainly, be a greater, developing and united Rwanda. Mutual trust and mutual respect should be some of the defining precepts in this new partnership between Rwanda and France. You do not ostracize a country and its people and expect hozzanas in return. NO. President Kagame and Sarkozy have done good to hit this refresh button. Rwandans have gone through decades of suffering to fully restore their dignity, peace and security, improve their standards of living and achieve desired levels of development. This is a process that must continue.

French

las Sarkozy when he visited last 2006 ended with cutting ties between Rwanda and France, the rift between the two countries was ignited by the humiliation meted upon the RPF officials that had gone to negotiate with the French government in 1992, worsened by the French army involvement with the then Rwanda government during the 4 year war, cemented by allegations of RPAs involvement in downing the Habyarimana plane in 1994, and escalated by the infamous Bruguire indictment. President Paul Kagame has always refused to be a hostage of history. Rwandans have been deliberately building structures and institutions that have rejuvenated their pride, resuscitated their dignity and re-affirmed their commitment to build a strong, united Rwanda. In the process of delivering justice in Rwanda, restorative other than retributive justice has been employed, reconciliatory other than punitive drums are being sound-

EDITORIAL CONTENT
HOPE MAGAZINE

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Copyright 2011
reserved by Hope Magazine Hope Magazine a monthly Magazine is published by Hope Magazine Limited. All rights reserved. The opinions expressed in the magazine are not necessarily those of the editors and publishers of Hope Magazine.

a Rebero D
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niel

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FEATURE

Bank of Kigali IPOs over subscribed offer to boost activity on Rwanda Stock Exchange

wandas second hugely oversubscribed initial public offer by Bank of Kigali, the countrys largest bank

by Bralirwa a local brewery and soft drinkers maker where the international investors pool recorded the highest over subscription with relatively low local participation, for the BK offer - 75 per cent of the total 6,636 applications received were from Rwandans. During the offer period, in the first one week, we had already achieved 100 percent subscription which is different from the first offer of Bralirwa where people started buying in the last week of offer, said Mr John Rwangombwa, the Finance Minister announcing offer results. Mr Rwangombwa added that the domestic

retail investors oversubscription of 128 per cent was a strong signal of improved public awareness of the capital markets concept. We had applicants from all over the country and all over the region. Over subscription is a good sign- that shows people have confidence in the economy. he added. Analysts say the huge oversubscription in addition to increased local participation is likely to boost activity on RSE with a free float of over 45 per cent giving it much needed momentum to grow. BKs listing on August 29th is expected to stimulate more activity on secondary market

by assets is expected to increase activity on Rwanda Stock Exchange (RSE) with increased local participation. While the government had initially planned to raise Rwf37.5 billion ($63 million) from its recent sale of 300.3 shares or 25 per cent at Rwf 125($0.21 cents) in the bank, the offer attracted applications worth Rwf103 billion ($ $ 172.8 million), representing a subscription rate of 274 per cent. However, unlike the countrys first IPO offer
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the economy as Rwanda develops you given excess demand for shares as shown by oversubscription in the different investor pools with a substantial number of investors expected to get refunds. The retail investors pool was oversubscribed by 291 percent, institutional investors from Rwanda 165 percent, institutional investors from the region 221 percent, international investors 330 percent and BK employees and Management 135 percent of the offer respectively. We only had three listed companies two cross listings (NMG and KCB) which do not trade much while public awareness was not yet enough. To attract people to cross listings is not easy for a young market like ours compared to attracting them for an IPO, says Mr Celestin Rwabukumba, the Operations Manager, Capital Market Advisory Council (CMAC). He noted that the countrys first IPO from a domestic company Bralirwa has so far generated solid interest with close to 4000 investors while BKs hugely oversubscribed offer will attract more investors. The more people we have at the primary level (market), the more we are likely to have on the secondary market, Mr Rwabukumba observes, adding that Bralirwas positive performance since listing will encourage investors to be active on the secondary market. Since its listing in January this year , Bralirwas share price has surged from Rwf 136 ($0.22) - the initial listing price to Rwf242 ($0.40cents) with over 30 million shares traded with a turnover of about Rwf5billion ($84,317.0). It (Bralirwa share price) has appreciated up and down but it has never gone back to the original price; this has attracted investors, The privatization of Bralirwa and BK through the capital market is part of the governments broader strategy to divest from companies it owns shares in to facilitate development of capital markets and increase alternative sources of long-term capital for businesses.
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Stock exchanges generally evolve to reflect the economy as Rwanda develops you would expect that there will be other banks, telecom , health care, construction , consumer companies listing,
It is now possible to see companies actually wanting to do it (raise capital through the capital markets) once we begin seeing companies like Bralirwa and BK going into the market to access funds without necessary issuing equity (but) purely debt based capital market based structures which is what we have in other markets, says Mr Maurice Toroitich, the Managing Director of KCB Rwanda. However, Mr Toroitich observes that given that the region already has developed stock exchanges, for RSE to stay afloat and attract more investors it will have to offer good returns on investment. The issue is whether the institutions that are going into the capital markets to raise funding can be able to actually raise that return that the shareholders and investors are looking for. An international investor is looking at opportunities of investing in Rwanda compared to investing in other countries like Singapore and the region itself. he said. More IPOs are expected on RSE as

would expect that there will be other banks, telecom , health care, construction , consumer companies listing, says Mr Patrick Mweheire, the Chief Executive Officer of East Africa , Renaissance Capital , the lead transaction advisor of BK IPO. Mr Mweheire notes that the country needs sufficient players in the market to provide a sizeable stock market that will attract more investors. The idea is to have government continue to have more companies to list, he said, adding that already incentives have been put in place to attract investors including capital gain and financial incentives for companies. According to allotment results, retail investors from East African Community including Rwandans, were allocated 37.6 percent of the 300 million shares on offer , foreign investors were given 40 per cent while the rest went to bank employees and Rwandan and East African institutional investors. The government also plans to sell shares in mobile operator MTN Rwanda and in insurer SONARWA. In addition, activity on the RSE is expected to increase as the capital market law- governing the industry has been gazetted paving way for effective regulation. The publication of the capital market laws is expected to provide investor protection and increase confidence in investing in the capital markets. The law establishes the Capital Markets Authority (CMA) as an independent agency that will replace the Capital Market Advisory Council (CMAC) currently regulating the industry. A decree by the Prime Minister established CMAC in March 2007 to help set up and regulate the transitional process by setting up the Rwandan Over-The-Counter market (ROTC) as the government puts in place a structure for a fully fledged stock market. The law will make CMA a semi-autonomous body under the Ministry of Finance and Economic Planning.

government has lined up at least five companies the capital for privatization including Bank of through MTN

markets

Rwanda, (BCR),

Commercial insurance

Rwanda Sonarwa

company

and Cement factory Cimerwa. Stock exchanges generally evolve to reflect

Presidential Month

ear esteemed readers on this page we highlight in pictures some of the monthly activities the President has undertaken in and out side the country

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1. On September 1, President Kagame received an International Olympic Committee award for supporting sport and inspiring the youth in the world, from Mr. Jacques Rogge, President of the International Olympic Committee

2.

On September 6, President Kagame addressed the

2nd East African Legislative Assemblys fifth session sitting in Kigali

3. On August 18 in Kigali, President Kagame appeared

on Mindspeak, an East African Business Forum that was for the first time held out of Nairobi

4. On September 5, President Kagame travelled to Burundi where he met with President Pierre Nkurunziza in Kirundo

5. 6.

On August 22, President Kagame addressed Sector On September 9, 2011, President Kagame was pre-

Executive Secretaries who had completed Itorero training sented with a cheque of 300 Million as contribution from the Private Sector Federation towards the One Cow Per Family Program.
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Presidential Month
ear esteemed readers on this page we highlight in pictures some of the monthly activities the President has undertaken in and out side the country

1.

President Kagame was received by Presi-

dent Sarkozy at the lyse Palace in Paris on September 12 2011. This was during President Kagames three-day visit to France that commenced on September 11.

2. President Kagame met Rwandan Diaspora in

Paris on 11 September 2011, during an event that brought together more than 3000 Rwandans and friends of Rwanda.

3.

Rwandans travelled from all corners of Eu-

rope; some drove for many hours to be part of President Kagames meeting with the European Diaspora in Paris on Sunday September 11.

4.

Dozens of journalists gathered outside

the lyse Palace as they waited to speak to President Kagame who was meeting President Sarkozy.

5.

President Kagame waves after a meeting

President Sarkozy during a Luncheon organized in his honor at the lyse Palace on September 12 2011.
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FEATURE

Rwanda:
R
wanda is making a name for itself as a tiny country with big ideas.
The reason for this growing reputation has a lot to do with its broad range of homegrown strategies. It has a vision and philosophy that it wants to use to reach its political and development goals. The leadership imagines that the best way to sustain both objectives is through the pursuit of homegrown solutions. When you visit the website of the Rwanda Governance Advisory Council (RGAC), headed by the great Rwandan intellectual Prof. Anastase Shyaka, an aptly titled innovation section tells you about these homegrown solutions: Ubudehe, Abunzi, and Umuganda. These innovations are part of a larger story that is largely untold. Apart from the internationally known but often misinterpreted gacaca, the rest of those initiatives are less known beyond the Rwandan borders. That they are not as popular is both a blessing and a curse. It is a blessing because it speaks to their authenticity, as products that are inspired by Rwandan tradition; it can, therefore, be expected that not many people outside Rwanda would know much about them. It is a curse because despite their usefulness in terms of fighting poverty and uniting Rwandans, not much has been done in terms of telling such a wonderful story. It is a beautiful story that must be told. And partly, this article responds to that call.
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A small country

When you visit the website... an aptly titled innovation section tells you about these homegrown solutions: Ubudehe, Abunzi, and Umuganda. These innovations are part of a larger story that is largely untold.

Presidents, Paul Kagame and Museveni Participate in Umuganda.

Ubudehe and Girinka

Broadly, Ubudehe is a social protection mechanism. It attacks extreme poverty by empowering communities to engage in mutual assistance aimed at those most economically vulnerable. A community meets and involves itself in a dialogical exchange that results in the determination of who is in most need of help. After that category is identified, resources are mobilized col-

lectively and the community decides on the best way to help that group of individuals. A similar program to combat extreme poverty is Girinka, also born out of Rwanda tradition of protecting the most socially vulnerable. Girinka is a program where poor people in extreme poverty are identified and given a cow; after that cow has given birth, a regifting must take place to help the poor person next door. Beneficiaries of Girinka see their human development enhanced, as

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FEATURE

with

big ideas
party, but for the community. Imihigo is part of Rwandan ancient indigenous governance institutions that was modernized in 2006 by the Ministry for Local Administration and the Ministry of Finance and Economic Planning. In this instance, the district leaders or local government chairperson, upon election, sign a performance contract imihigo with the people, undertaking to achieve set goals at set periods of time. Once every year, the district leaders appear before the people and other governing authorities to showcase how they have kept to the promises made at a ceremony of Umuhango woguhigura imihigo fight poverty but also engage in development programs that are most urgent to them. Beyond ownership, communities attain a sense of pride in having accomplished and achieved their needs having solved their problem. Also, when people work together, this also creates to national reconciliation. Crucially, what these programs do is start a process of authentic development. They create a sustainable trajectory for sustainable development that includes pride in accomplishment and an increased sense of self worth. Here we can talk of our collective agaciro, as the President Paul Kagame often reminds us. Even Museveni was impressed. Upon visiting Rwanda recently, Ugandas president Yoweri K. Museveni took part in a Rwandan tradition known as Umuganda (community work). After helping build a classroom, along with his host Paul Kagame and other locals in one of the villages, Museveni had this to say: We lost our culture and went to practice other peoples culture that is not compatible with our way of thinking, he said, while congratulating his host Paul Kagame on helping to restore African culture. But what I want to inform President Kagame and RPF is that they have changed our way of Taken together, the overall objective of these innovation programs is to empower communities to develop a sense of ownership in the development processes. Communities are able to mobilize their resources to not only thinking. It is very good that they have brought back out traditional history and culture.

Even Museveni was impressed. Upon visiting Rwanda recently, Ugandas president Yoweri K. Museveni took part in a Rwandan tradition known as Umuganda (community work).
they are able to increase their daily calorie intake; produce and consume milk and sell any surplus for the much-needed revenue. Most of them use this money for other human needs such as education for their kids, access to health care and potentially save for the future.

Abunzi
Also derived from Rwandan traditional culture, the Abunzi are a community mediation committee that is especially geared towards promoting a culture of dispute resolution. Given that is a free service, Abunzi broadly serves the purpose of expanding access to justice. It is also accessible; it can be found at the grassroots levels of state administration, at the Cell level. This committee is made up of 12 residents who are chosen on the basis of their reputation as individuals of high integrity and moral standing. They serve a term of 2 years with a chance for extension.

Umuganda
Umuganda takes place every last Saturday of the month. It is a system of community works. A community is mobilized to carry out works of general public interest. It promotes development activities that reduce the strain on the national budget, as citizens use their labor to solve their own problems. Umuganda also produces a sense of belonging among citizens as they go about this work.

Imihigo
Imihigo is a Kinyarwanda word with roots in the term guhiga, meaning the setting of goals upon which guhigura (evaluation) will be necessary at a future point in time. It is founded on the age-old Rwandan cultural practice where two parties publicly commit themselves to the achievement of a particular task. Failing to meet these commitments leads to dishonor, not only for the individual

Summing Up

This culture is going to help us for our development.

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East African Community confirms

Rwanda as top business destination in the region

he East African Community

as the ease of setting up a new business, securing credit and permits, paying taxes and the enforcement of contracts. It was launched by The EAC Deputy Secretary General in charge of Planning and Infrastructure, Dr. Enos Bukuku. The report, however observed that the EAC as a regional economic community was still held hostage to various obstacles to entrepreneurship and highlighted the fact that removing such

obstacles

would propel the community to

(EAC) has confirmed Rwanda as

greater heights. Despite the progress made in East Africa, the region has not kept pace with improvements in business regulation globally. The average ranking on the ease of doing business in East Africa, at 117, is not much higher than the average for sub-Saharan Africa overall at 137, it pointed out. The report prepared by the International Finance

the regions top business desti-

nation, according the secretariats first ever business ranking. The report entitled Doing Business in the East African Community 2011that was released at the EACs headquarters in Arusha early last month, took a detailed look at business regulations and environment such
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Corporation (IFC) and the World Bank draws on data from the annual global Doing Business study. However, EAC officials were upbeat during the launch of the report that progress in business reforms in the region will be stimulated. We are serious about our role in the creation of an environment which is attractive to increasing private sector activity within and across our borders. We can do this by further streamlining regulations affecting businesses and by ensuring that the business environment is reassuring to investors, Dr.Bukuku stated during the launch of the report. He challenged the Partner States of the Community to improve the business environment by effectively collecting taxes and utilizing the resources to put in place the required infrastructures. States must provide accountability, provide infrastructure and quality social services and security, good indices mean nothing if there is insecurity in a country, he noted. He emphasized that Partner States should provide skills to the youths through high quality technical education, encourage the citizens to learn the saving culture in order to invest and to promote science and technical education as the key to employment creation. Amb. Jean Rigi, the Permanent Secretary in the Ministry for East African Community Affairs of the Republic of Burundi said the report comes at a time when the EAC was being promoted as single investment destination. The report is an important contribution to benchmarking by the EAC partner states and it shows that there is much room for improvement, he noted. The Chairperson of the East African Business Council (EABC), Ms. Consolata Ndayishimiye stated that since 2005, the EAC Partner States had grown faster on average than the rest of the Sub Saharan Africa with annual per capita growth averaging close to 4 percent. The region has also witnessed an increase in foreign direct investment which underscores the opportunities brought about by the Customs Union and the Common Market, she explained. Kenya, East Africas strongest economy, was placed second in the report while Tan-

Our target is to keep improving. We are within top 60 in the world. I think that is impressive. We are the fourth easiest country to do business in Africa. From that we need to move to the category of stronger economies. Our target is to be top 30 by 2017, RDB Chief Operating Officer (COO) Clare Akamanzi said.

zania was placed fourth after Uganda with Burundi coming up last. World Bank Investment Climate Advisory Service operations manager Maria Miller said East Africa could benefit from sharing good practices. If each East African country were to adopt the regions best practice in each of the Doing Business indicators, the regions average ranking on the ease of doing business would be 18 rather than 117, she said, adding that, In other words, if the best of East Africas regulations and procedures were implemented across the board, the business regulatory environment in EA... would be comparable to that of Japan. The World Bank Country Director for Uganda, Tanzania and Burundi Mercy Tembon urged Partner States to enact the legislations for the implementation of the Common Market protocol, saying Partner States should reduce costs of production, eliminate barriers to trade and harmonise all laws to improve the business climate. Also in attendance to the official launch was the Deputy Chief Executive Officer of TradeMark East Africa, Mr. David Stanton, Kenyas Permanent Secretary for the Ministry of East African Community Affairs, Mr. David Nalo

The World Bank annually publishes a Doing Business Report that measures a countrys business environment by assessing performance along 10 major indicators. Last years report that covered 183 economies indicated that within the EAC economies, Rwanda jumped its rankings from 70th position in 2009,to 58th last year. In last years World Banks rankings, Rwandas improved position placed it in the ranks of top four African countries. Rwanda joined South Africa, Botswana and Tunisia in the African top positions. Kenya was ranked 98th position having carried out 2 major reforms while Uganda was ranked 122nd position having carried out 2 major reforms. Tanzania was mained ranked 128th position with no reforms while Burundi rein the same position at 181 having carried out one major reform. Doing Business recognizes the 10 top economies that improved the most in the ease of doing business in the previous year, further stating that the changes under review. While commenting on the World Bank rankings, top officials at Rwanda Development Board (RDB) are saying that the idea is to place Rwanda in the category of stronger economies by targeting to clinch the top 30 position in 6 years time. Our target is to keep improving. We are within top 60 in the world. I think that is impressive. We are the fourth easiest country to do business in Africa. From that we need to move to the category of stronger economies. Our target is to be top 30 by 2017, RDB Chief Operating Officer (COO) Clare Akamanzi said. The last report by the World Bank tabulates how Rwandas three major reforms saw it significantly improve its rankings. A key element of the reforms is within easing the issuance of construction permits, accessing credit and trading across borders with her neighbours.
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and Mr. Peter Ladegaard, the Word Bank Regional Programme Manager.

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Banks expected to lower interest rates as competition in the sector picks ups
oan rates in Rwanda are likely to fall with competition in the sector increasing as new banks seek entry while existing banks launch new products spur economic growth. The country is targeting to increase lending to the economy to at least 19.2 per cent this year from 11 percent last year. However, despite a continuous recovery process in the credit markets witnessed since last quarter of last year, banks have kept their lending rates unchanged on average at 17 per cent. With more banks coming in there will be competition for clients and lowering the cost of lending will be one of the incentives for banks to retain clients, says Ambassador Claver Gatete, the Governor, National Bank of Rwanda (BNR). Ambassador Gatete observes that banking industry concentration is continuously decreasing showing an improvement in the banking sector competition. As of June 2011, the market share of the 3 largest banks in total assets represented 49.9 per cent against 54.7 per cent in June 2010. The change in market share is largely attributed to upgrading of two microfinance institutions (MFIs) to the status of microfinance bank in addition to CSS- Zigama, a credit and savings society gaining status of a cooperative bank. Competition in the banking sector is likely to increase since Equity Bank launch is scheduled in the third quarter of 2011; with Equity concentration will go lower, he says.

and increase their capital bases. As of June 2011, the industrys loan book expanded by 15 per cent from Rwf 449.40 billion ($ 757.1m) end of December 2010 to Rwf 516.80 per cent ($ 870.1m) statistics from the central bank of Rwanda indicate. To stimulate further credit to the economy, the central bank left the benchmark interest rate unchanged recently following three reductions last year, to encourage banks to offer clients more affordable lending and
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We are not used to stiff competition; this will require us to double our efforts. For instance we are already working on loan products for small farmers that take into account challenges they face related to limited access to collateral and weather conditions.
The Governor also underscores that with banks enhanced risk management manifested by continuous reduction in Non- Performing Loans (NPLs) from 10.8 per cent in December 2010 to 9.2 per cent in June 2011 and from 12 per cent in June last year will also facilitate banks to lower the cost of lending. Net NPLs reduced from 9.3 per cent in December 2010 to 6.6 per cent in June 2011. They (banks) will have to change the way of doing business; they will have to start reaching out to clients and definitely this will come with better customer care service and better products including lowering costs. Ambassador Gatete also mentions that the countrys first private credit reference bureau, CRB Africa that was licensed recently holding several years worth of data on borrowers will also help to lower the cost of borrowing. We have given them all the data

uct dubbed Home Life Loan a fast track loan for salary based earn-

Statistics from the central bank indicate that by end of June 2011, banks recorded a net profit of Rwf13.8 billion ($21.9 million) compared to Rwf4.1 billion ($6.7 million) in June last year. The central bank attributes the increase in profitability to the continuous improvement in its stimulation activities such as what it terms as rigorous and supervisory reforms. On the other hand, total assets increased by 13.9 percent to reach Rwf 990 billion in June 2011 up from Rwf 869.8 billion in December 2010. Capital adequacy ratio (CAR), which is the measure that the Central Bank uses to assess the amount of a commercial banks core capital stood at 24.6 percent as at June 2011 up from 22.3 percent by December 2010. This figure, Central Bank says, implies that banks have built significant capital buffers over the period under review, further adding that stress testing has shown that the entire sector is well capitalized. Bank deposits also increased by 17.8 per cent during the same period from Rwf565 billion ($ 947.9 million) in December 2010 to Rwf 665.8 billion ($1.1 billion) end June this year. However, this is largely because banks increased deposit interest rates from 6.3 per cent in June last year to 8.0 per cent this year, though despite the central banks low interest policy lending rates have been fluctuating around 17 per cent. There is no reason why banks should not decrease their lending rates; we are still largely unbanked, banks have to expand their branch network and tap money from the villages to diversify the source of deposits (instead of competing for expensive small corporate segment for deposits), Mr Kalenzi also noted that as competition mounts within the sector with Equity banks imminent entry, banks will be forced to lower lending rates. Banks are now charging the same (interest rates on loans) but as more players come in the situation will change.
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ers in partnership with key stores

and suppliers like Nakumatt, Simba

and Samsung that allows clients to

access soft loans to purchase home appliances , equipment and furniture. However, Ndahiro

also observes that with increased competition in the sector, banks will be forced to lower the cost of lending. We are not used to stiff competition; this will require us to double our efforts. For instance we are already working on loan products for small farmers that take into account challenges they face related to limited access to collateral and weather conditions. Mr Ndahiro

also mentions that the banks are seeking to control costs and improve efficiency through increased use of electronic platforms such mobile and internet banking to serve clients. Last year Rwandan banking sector assets were estimated at just 22 per cent of GDP in 2010, loans and deposits are making up only 11 per cent and 16 per cent of GDP, respectively placing Rwanda well behind the peer group of other emerging markets and even more developed African peers. Analysts say this implies huge headroom for growth both in the short and long term particularly given the countrys current depressed levels of banking penetration and just 14 per cent non micro finance institution penetration. The banks are making huge profits ; this is partly because the Non- Performing loans have reduced, interest rates have remained unchanged while deposit rates have not

since 2001 and by end of this year they will have finished computing it to fit their template- this will also help the banks. However, according to Richard Ndahiro, the Head of Marketing and Product Development at Banque Populaire du Rwanda (BPR), lending rates have remained constant due to high operating costs of running their business. Operating a branch and setting up the infrastructure is still very high; these costs have to be off set in the margins we get, he says. BPR recently launched a home loan prod-

shared significantly, says Simon Kalenzi , the Chief Executive Officer of Dyer and Blair Securities Rwanda.

EMBASSY OF THE REPUBLIC OF KOREA

KOREAN MOVIE EXHIBITIONS

European music fans. The power of word of mouth and the ripple effect of online media like YouTube have been a major driving force for K-pop(Korean pop) in the European market. LExpress (French Newspaper)
The exhibition of K-pop and Korean films will be held at the Korean Embassy located at Plot 472, Rue Deputy Kamuzinzi, Kiyovu Nyarugenge every Friday afternoon at 2pm.

orean pop music, has become increasingly popular in many Asian countries, and is now mesmerizing

Location of the Korean Embassy

(Yellow square)
For more information, contact us on

Twitter: Rwandakorea
or call us on 0784 700 274/5

Facebook: Rwandakorea

Email: Koreanculture2011@gmail.com

Plot 472 Rue Deputy Kamuzinzi Kiyovu,

Nyarugenge Kigali Rwanda, Tel: (+250) 252577577, Fax: (+250) 252572127, Cell: (+250) 0784 700274/5,

Email: koremb-rwanda@hotmail.com

The Korean Government will provide a Rwandan student with a full scholarship for an undergraduate degree. If you are interested in this five year scholarship, please contact the Embassy at 0784700275 for detailed information.

2011 4th High Level Forum on Aid Effectiveness

29 Nov.-1 Dec. 2011,Busan, Korea

INTERNATIONAL ESSAY CONTEST

Building a New Global Partnership for Effective Aid & Development

2011. The HLF-4 presents a unique opportunity for achieving better aid and development through more effective, harmonized cooperation among governments, civil societies and private sectors. This multi-stakeholder event will seek a new vision and strategies for more effective and inclusive development partnership to meet new development challenges and to achieve the Millennium Development Goals (MDGs) by 2015. As a preparatory event for the HLF-4. the Government of the Republic of Korea would like to host the 2011 HLF-4 International Essay Contest in order to share young peoples inspiration on aid and development that have affected their own lives. Young people from around the world are invited to submit their innovative ideas on effective aid and development.

he Fourth High-Level Forum on Aid Effectiveness (HLF-4) will take place in Busan, Korea, from 29 November to 1 December

1. THEME
Vision of Youth on Effective Aid & Development

4. AWARD: 1St Prize - Certificate and Prize of $

2.000 1 entrant

2. GUIDELINES
1. Essays may be submitted by anyone ages 18 to 32 (as of December 1,2011). 2. Essays must be 2000 words or less and in English. 3. Essays must have a cover page indicating the (1) essay title (2) name (3) address (4) contact number (5) e-mail address (6) nationality (7) age as of December 1, 2011(8) gender (9) school name (if applicable) and (10) word count. 4.Entries may be submitted online, hlf4_essay@mofat.go.kr 5. Essays must be original and unpublished. 6. Essays must be written by one person. Co-authored essays will not be accepted. 7. Copyright of the essays entered will be assigned to the event organizers.

2nd Prize - Certificate and Prize of $

1,000 2 entrants

3rd Prize - Certificate and Prize of $

200 5 entrants * The 1 st prize and 2nd prize winners will be invited to the Youth Forum which will be held during the HLF-4 as one of its special events. (Travel expenses and accommodation will be covered by the Government of Korea) ** All prize winners will be announced in October 2011 on the HLF-4 website (www. busanhlf4.org).

INQUIRIES:
For questions relating to the essay contest please email: hlf4_essay@mofat.go.kr

3. DEADLINE:
Entries must be received by October 7, 2011.

3 2011 Coffee
rd

Rwanda hosts 3rd Coffee Cup of Excellence Competitions

or the 3rd time, Rwandan coffee farmers received awards of excellence for producing samples of the

(NAEB) hosted the event. The Cup of Excellence was initiated in Rwanda in 2008 and has become the most esteemed award given to top coffees in Rwanda. Among this years 189 farmers cooperatives which participated in the competition, 24 cooperatives were chosen at national level and 36 at international level. Winners are chosen after a strict competition that selects the very best coffee produced in the country for that particular year. Following the success of the 2008 and 2010 Cup of Excellence competitions, NAEB raised this years grading standards, so competitors were ranked according to the worlds best coffees. The competition involved tasting of 189 samples of Rwandan coffee at the initial stage. Only 60 samples from best coffee

producers and cooperative made it to the International level. 36 samples were approved winners of the Cup of Excellence (COE) awards. These were rewarded with certificates of excellence at both the national and international levels. Only ten of these samples made it to the international tasting level and three of these were recognized for specialty and superiority. This years best three coffee come from Agro Processing Industry Mushongi, followed by Kageyo Coffee and Nyakizu Coffee as the second runner up and Nyakizu CWS in the third place. The winners are chosen through votes passed by both local and international tasters (cuppers) who were led by Mr. Silvio Leite. The international Cuppers came from North America, Europe, Asia, and the East

worlds best coffees which was tasted by both local and international cuppers at the Cup of Excellence (COE) competitions held on 26 August 2011, in Karongi district, west of Rwanda. The Cup of Excellence competition is the most esteemed award given to top coffees in Rwanda and most prestigious coffee com-

petition in the world. The Cup of Excellence is a globally held competition that began in Brazil in 1999. Rwanda is the first African country to implement this program which works to promote the quality of coffee and support local farmers as well as businesses. The National Agriculture
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Cup of Excellence
African region. The top ten coffee samples will gain access to the world market with top winners being taken on by global suppliers, ensuring higher returns, and others by national suppliersthe process will be done through internet auctions of samples this October, 2011. The COE Head Judge, Silvio Leite, said that 70% of the coffees passed the selections as a result of careful preparation of lots by both the coffee washing stations and farmers. He was impressed by the high quality of cuppers as well as the coffees. At least three samples of the finalists had a great taste and specialness in smoothness, sweetness and cleanliness; and could win the world award at the international competitions Leite asserted that Rwandan coffee was extraordinary and its potential keeps surprising the cuppers. Rwanda is a small country but that doesnt limit its potential in producing the best coffee. The jury is has been astonished by the special taste of Rwanda coffee Apparently, Rwandas Ministry of Commerce will also sponsor the top five producers to gain skills in Business development. Rwandas Minister of Agriculture, Mrs. Agnes Kalibata, was guest of honor at the awardgiving- ceremony. She said that The Rwandan economy is based on its people and the fertile soil that we live off and use responsibly. I urge the winners to use their profits to continue re-investing in the coffee industry so Rwanda continues to produce coffee of ever-increasing quality The Minister said The Cup of Excellence competition has not only helped to put Rwanda coffee on the world map but also connected farmers directly to the buyers and other world coffee stakeholders. The competition also puts the farmer at centre stage with over 60% of the sales proceeds after that competition usually going back to the farmer. Following Rwandas Cup of Excellence 2008, participating farmers reportedly earned an additional income of about RWF 100million due to recognition from the competition. After the 2010 edition, an additional RWF 169 million was recorded on top of the competitors normal earnings. Minister Kalibata asserted that this income was pinnacle to Rwandas growing economy, development and social transformation of the lives of farmers. She said that coffee has become a big foreign earner for the country, and farmers have to double up their production and standards of production by utilising manure and coffee washing machines. She challenged world coffee producers that Rwanda has the best coffee in the world and this potential should be used to improve quality and quantity of coffee produced in Rwanda on the world market. Kalibata said: Rwandan coffee is arguably the best coffee in the world. We have the potential to top any other coffee producer and we can prove this by continuing to maintain the quality and quantity of coffee production on world markets she said. She asked the international jury to be ambassadors of Rwandas coffee and take back home the message of its excellent coffee and tea and natural scenario of a thousand hills which is a home for all visitors worldwide. Mr. Alex Kanyankore, the Director General of National Agriculture Export Board (NAEB) stressed the importance of the cup of excellence and the value it has brought to Rwanda and its farmers. This event is a convergence point for all coffee stakeholders, An opportunity to share experiences, A time to link with Everybody in coffee, A point to stress Quality, A time to recognize the farmer and a time of better prices he said. The Managing Director, Alliance for Coffee Excellence, Mr. Grant Rattray said that the taste of Rwandas coffee is amazingly superior and it has higher chances of making larger sells at the international coffee cuppers competitions and can emerge among the best tastes during the internet auctions. Some farmers may not have had a taste of good coffee producers but may not actually know the true taste of their product. Farmers taste of coffee The 3rd coffee Cup of Excellence (COE) Overview of the coffee sector in Rwanda: The coffee farming in Rwanda is done by over 400 000 farmers There are over 72million coffee trees, grown on over 28000 ha There are over 160 registered cooperatives, a total of 207 including those not registered according to the law. There are 200 coffee washing stations spread in the districts and coffee growing seasons. The services were up to standard like back home. Am glad to taste the best coffee which also has rare specialty Nelson Valverde, one visitor said. Paul Ntaganda, the General Manager of Bourbon coffee, stated that the company has set its priorities at giving the best services and offers special tastes of Rwandan coffee. Customer care is a priority to us and when we see clients appreciate our service that is an achievement for the countrys image locally and internationally Ntaganda said. competition was also a chance for the farmers to taste the special Rwandan coffee, which was served by Bourbon Coffee, Kigali center. The free coffee offer was part of the exhibition of Rwandas best coffee and Bourbon coffee services where the sole distributors of coffee cups at the event. Thousands of residents made long lines to grab a free coffee cup. Most of them even kept flocking back at the Bourbon coffee stall for more cups, which were served with coffee cakes and many more bites. We are challenged by two things; to realize the beauty and taste of our own coffee, and to receive good customer care services over free coffee- which is so amazing and exceptional one Alexis Mugabo a Karongi coffee farmer said. The taste of coffee didnt only attract residents but top government leaders and foreign visitors also appreciated a cup of special coffee from the thousand hills of Rwanda. The international visitors said that they too had the best service and ready coffee at hand.

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Coffee production reached over 20.000 tons last year 2010, And coffee exports reached 56m $ in 2010 up from 37m $, the main

Table of the Top ten samples:

Rank 1 2 3 4 5 6 7 8 9 10 Washings factory API Mushonyi Kageyo Coffee Nyakizu CWS COCCAN Duhuzimbaraga COVACAF Karengera Gatare Coffee Kayumbu SACOF Rulindo Terimbere Kawa yacu/Muhondo Maraba III Sovu

3 2011 Coffee
rd
District/location Rutsiro Ngororero Nyaruguru Nyamaseke Nyamaseke Nyamaseke Kamonyi Rulindo Gakenye Huye Original lot Number 32 05 02 03 01 01 11 06 01 02 Representative International Round 3 Results (%) 89.50 88.69 88.41 88.22 88.09 87.97 87.94 87.16 86.97 86.94

driver of this was favorable prices on the world market. During 2011 calendar year coffee exports are expected to reach 70m $ Local cherry prices have increased from Rwf 120 in 2010 to Rwf300 in 2011. This implies farmers incomes from coffee have increased accordingly. Almost Rwf20 billion was released from the banking sector importers to farmers in the rural areas to purchase coffee this year. This is compared to about 9billion in 2010. Kanyankole asserted that despite the economic downturn in America and Europe, the demand for Rwandan coffee has instead remained firm and increasing particularly due to increased consumption in producing countries and non-traditionally consuming countries like China and other countries in Asia and Eastern Europe. The demand side for specialty coffees of high quality is increasing at a very high rate. This suggests that more effort needs to be put in quality and other forms of investment in the specialty coffee segment he said. NAEB in conjunction with farmers and other stakeholders have committed to the following: Growing an additional 7100 hectares distributed in all the provinces, Working with coffee washing stations to increase fully washed coffee to about 45 % of the total production of 24000 tons, to undertake to distribute fertilizers in collaboration with other service providers, to help farmers to use all means possible to protect their coffee against any form of pests and diseases, and training at various farmer field schools.
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Cup of Excellence in Picture

Cup of Excellence

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ANALYSIS COMMENTARY

Global hotel brands

to boost tourism receipts

wandas aspiration to become a regional tourism hub is gaining momentum as some of the finest global hotel brands are set to begin operations in the country beginning next year.
While the Kigali Marriott will be managed by Marriott Group following the terms of a 30year contract, the over $55 million hotel is owned and being constructed by New Century Development Limited. So far we are on schedule; we are planning to handover the project to Marriot for their team to test the hotel facilities (if they meet Marriot brand standards) by This year the country is targeting to collect at least $216 million specifically through diversification of tourism products. Statistics from RDB indicate that in the first semester of this year, Rwanda hosted 405,801 visitors, a 27 percent increase compared to the same period last year generating estimated revenue of $115 million compared to $90.6 million generated during the same period last year. This (five star hotel entry) will boost high end tourism as currently we cannot meet demand for such rooms, says Clare Akamanzi, the Chief Operating Officer (COO)of Rwanda Development Board (RDB). Ms Akamanzi also observes that the entry of global brands like Marriot will boost interest of other major brands to the country in addition to bring high quality services. Even though Marriot will significantly increase additional 5 star hotel rooms and introduce its high quality services standards, Rwanda still generally needs higher end rooms and improved services in the hospitality sector. Part of the draw for these top hospitality brands including Opulent Hotel Group which operates the Hilton brand hotel recently acquired a plot of land on which to build the hotels governments multi million project - the Kigali International Convention Center slated to open in 2012. The convention center includes a five storied-building information technology office park, a convention floor with 32,000 square meters, a multi-purpose arena that can host 2,600 people, and a 292-room, on-site five star hotel that Radisson will manage. With the convention centre operational, Ki-

In a move that is expected to boost the countrys tourism sector, at least two global hotel brands including Marriot Group of Hotels, Rezidor Hotel Group are expected to open shop next year joining Serena Group of hotels, the only

The tourism sector is currently the countrys second top foreign exchange earner generating $200 million last year almost half of the total export earnings- $454 million in 2010
five star hotel operating in the country. While Rwanda needs about 6,000 hotel rooms by 2012 to accommodate the increasing number of tourists, currently supply is estimated at 4267 rooms with the majority being provided by three or four star hotels.
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November next year, says Solomon Adede, the deputy chief executive officer and head of finance at New Century Development Limited. Kigali Marriot Hotel will be the first facility in the East African region to be managed by the Marriot International group. Everything has been designed to Marriot specifications; they (Marriot Group) are very keen on guest security and safety. I see Kigali Marriot

increasing Rwandas capacity to host tourists as currently hotel availability (high end) is very limited, Mr Adede explains. When completed, the only

comparable facility will be Kigali and Lake Kivu Serena with only a total of 214 rooms and the Radisson Blu Hotel with 292 rooms under construction along with the Convention Centre expected to be completed by 2012. The tourism sector is currently the countrys second top foreign exchange earner generating $200 million last year almost half of the total export earnings- $454 million in 2010.

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gali will not only have to compete with its neighbors particularly Kenyas Nairobi that currently dominates in hosting major conferences but also Ethiopias Addis Ababa. There is high demand for high quality hotel rooms but at the moment we do not yet have the capacity; currently the country does not have the capacity to host international conventions for more than 1000 people that require high quality rooms, says Jean Paul Ndakebuka, the marketing manager of Lemigo Hotel one of the new hotels in Kigali in the process of acquiring 4 star hotel status with a capacity of 96 rooms. We are struggling to keep the standards high for our clients who come from the different parts of the world, he says. However, Mr Ndakebuka underscores that limited availability of skilled labour particularly junior hotel staff such as waiters and waitress, cleaners poses a challenge for sector as hotel business in its infancy across the country. Hotel business is still new in Rwanda though there has been a boom in the last 5 years; our senior management is well qualified with international experience but we have to put a lot of emphasis on training junior hotel staff to understand the business. We are putting much emphasis on training them (junior hotel staff) to be more competitive. Government is also now in

market early next year after the process of valuation which is expected to begin in October has been completed. The new in-

ing its tourism products with a view of taking advantage of the anticipated increase in the number of tourists visiting the country once the convention centre is operational. For instance the country has ventured into avitourism (bird watching) and eco-tourism as the country is home to over 650 bird species of which 491 are presumed to be resident and 117 regular seasonal migrants. Avitourism is anticipated to contribute about $12m by 2012 as RDB develops new birding routes to become the second largest tourism income generator after mountain gorillas.

vestor will also leverage their pre existing network to connect to Rwanda as we are targeting chain hotels, introduce new products, increase employment opportunities as well as curbing the wider gaps of required rooms in the country since the investor is expected the to renovate Ms and exsays.

pand

hotel.

Mbabazi

The country is also increasingly diversify-

the process of selling assets of Laico Hotel (formerly Umubano hotel) where government and LAP own 40 per cent and 60 per cent respectively, after freezing of assets of Libyan African Investment Portfolio (LAP) in the country as per UN resolution early this year. Soprotel (a joint venture company

between Libya and Rwanda governments) plans to sell the Hotel to a company with a sound development plan; the one who will buy will either assess whether to keep it 4 star or upgrade to 5 star the requirement is not to go below, says Rosemary Mbabazi, who is currently Managing the hotel on behalf of government. The hotel assets are expected to be on the
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FOCUS

Economic growth
forecast remains at 7%

despite rising inflation

R
food prices.

wandas economy is expected to expand by 7 per cent this year, slightly lower than 7.4 percent registered

According to the central banks Monetary and Financial Stability statement released recently, economic activities have been significantly improving compared to the first half of 2010, as evidenced by growth in agricultural production which increased by 11.3 per cent. In addition , leading indicators of economic activities such as the BNRs Composite Index increased by 9.5 percent while the total turnover registered by large companies in the Industry and Services sectors increased by 23.9 per cent ) on annual basis. External trade also performed well, recording an increase in exports and imports. Export

volume and value increased by 58.23 per cent and 48.09 per cent respectively, driven by traditional exports. Strong performance in exports led to a significant improvement in imports cover by exports, standing at 21 per cent in the first half of 2011 from 16.2 per cent during the same period of 2010. According to the Minister of Finance, Mr John Rwangobwa despite the increasing inflationary pressures stemming from food and fuel prices, the country is still on track to achieve its growth target this year. We kept our growth projection at 7 per cent

last year, despite increasing pressure on the economy arising from increasing fuel and While inflation remained low in Rwanda last year falling to a record low of 0.2 per cent in December 2010-the lowest in 10 years with an annual average of 2.3 percent, compared to 5.7 per cent in December 2009, this year it is rebounding mainly driven by increasing global fuel and food prices.
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FOCUS

instead of the 8 per cent that we had originally projected due to the effect of inflation, he says. Rwandas inflation rate accelerated to 5.8 per cent in June from compared to 4.54 per cent in the previous month, mainly driven by increase in food and transport costs, according to the National Institute of Statistics (NISR). According to NISR, bread and cereal prices had the biggest increase of all items in the index last month, rising 6.1 percent, while transport costs jumped 3 percent in June.

The Minister said the tax reduction on fuel is expected to maintain inflation in the 2011/2012 fiscal year at the projected 7.5 per cent by end of December. It is increasing but it is still within acceptable levels. growing to around 7 per cent still there is no alarming situation that the central bank has to intervene , The National Bank of Rwanda (BNR), recently kept its key rate unchanged at 6 per cent saying after analyzing the local and international economic situation, banking liquidity conditions, the current inflation rate would not pose a threat to the countrys macroeconomic stability. The economy has also been largely boosted by better performance of the agricultural

to increasing fuel and food prices is still quite low relative to the rate of growth of Rwanda Economy. According to International Monetary Fund (IMF) country report released in June this year, the countrys economic recovery has been stronger than projected and appears to be leveling off. However, the IMF cautioned that heightened uncertainties due to rising global food and fuel prices pose threats to the recovery. This could dampen the growth momentum, resurrect inflationary pressures, and affect the pace of fiscal consolidation, Sustaining the strong performance over the medium term, the IMF said depends on governments ability to entice foreign financing for the key investment projects essential for growth, the external environment and recovery in credit to the private sector. Credit to the private sector is expected to expand by 19.2 per cent this year compared to 11 per cent last year. This projection (7 per cent growth) is based on the observed developments in the private sector, governments fiscal stance, and assumptions about global economy, says Mr Dmitry Gershenson, the IMF Resident Representative. He underscored that changes in any of the above underlying factors will affect the actual growth. For instance, if private sector or public sector spend less than envisaged, then growth may be lower. At this point in time, it seems that the main risks come from outside: another spike in global fuel prices or a slower-than-expected global recovery could dampen Rwandas growth prospects, Mr Gershenson observed. While under the countrys Policy Support Instrument (PSI) programme, the country has a target of keeping inflation at 7.5 per cent; Mr Gershenson noted that it could be revised in the coming months if inflation exceeds expectations. In the first half of this year, prices in Rwanda rose by slightly over 6 percent. It means that to achieve the 7.5-percent target, prices should rise by one percent or less in the second half of the year. he said.

despite the increasing inflationary pressures stemming from food and fuel prices, the country is still on track to achieve its growth target this year.

sector that continues to be the backbone of the economy. Central bank statistics for the first and second quarter of this year, the sector registered a moderate growth of 5.4 per cent compared to 11.4 per cent last year. Irish potatoes and cassava showed high yield with an increase of 28.7 per cent and 5.5 percent, respectively. To deal with the increasing food prices, the minister said government is to purchase strategic stock to avoid any challenges in the next four months. What we see as the challenge is the famine we see in the horn of Africa that could exact big pressure on our food production we will make sure we will create reserves that will take us through except if we have failed rains that will affect us. Mr Rwangobwa said. As of May this year, the non agriculture sectorservice and industrygrew by 10.2

We had expected the fuel crisis to behave worse than that but it does not seem to be the case it has been contained and our inflation has not had the speed that we expected, Mr Rwangobwa explains. In July, Rwandas annual inflation rate increased to 7.14 per cent mainly due to increase in food prices. Following government reductions of fuel tax by per litre Rwf100 ($0.161) for both petrol and gasoil to mitigate the impact of rising fuel prices, the fuel prices of both petrol and diesel reduced to Rwf 1,025($1.72) from Rwf1, 067($1.799) effective June 1.

per cent compared to 8 percent in the same period last year, while industry and services grew by 37 per cent and 19.2 per cent respectively. I am fairly optimistic about the economic performance of Rwanda and I expect that the government target of at least 6 per cent GDP growth will be achieved despite the pressures of rising inflation The rate of capital formation in Rwanda remains robust especially in infrastructure and housing, said Mr Maurice Toroitich, the Managing Director of KCB Rwanda. Inflation in Rwanda though on the rise due

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FEATURE

to jobs and economic growth in the future. Rwanda clearly understands this. Thanks

THE NEW 12 YEARS FREE EDUCATION

Issues at Hand
One recent study by Gordon Brown the former British Prime Minister, found that quality basic primary education for every child in the world could increase per capita income growth in the poorest countries by a further 2 percent. IPAR-Rwanda, in its work on skills for tomorrow, has long believed in the power of education. It has long argued that creating a more effective education system is one of the major challenges Rwanda faces. More children in villages and towns across Rwanda now have the opportunity to go to school for longer. The introduction of the end of primary school, more are going onto further study. There were well be second when it comes over 100,000 additional pupils in secondary schools in 2009 than there were just five years ago. The government are expanding technical and vocational education that will teach young Rwandans the trades and skills needed in the economy. After the success of the 9 year basic education, 12 years free education is an understandable next step. Numbers at university level have also grown. Fifteen years ago there was just one university in the country; today there are twenty or more. This decade of progress on widening opportunity must now provide the foundations for the next stage of improvement. The key issue is that it turns out that just going to school does not necessary mean children learn very much. UNICEF and the World Bank acknowledge that the medium term sustainability of increased access is questionable if quality is not at least maintained, but ideally improved. International work by McKinsey ny country that comes second in education today will

to the visionary leadership of President Paul Kagame. Rwanda understands that as a country not blessed with a wealth of raw materials it is the skills and talents of people on which future prosperity depends. That is why expanding educational opportunity has received real focus over the last decade and why creating a more skilled society is front and centre in the countrys 2020 vision. In August, the latest building block in Rwandas progress was quite literally laid when President Kagame, accompanied by Ugandan president Yoweri Museveni, helped construct a classroom needed to deliver 12 years free basic education in Rwanda. And this was the official launch of the 12 Year Free Education in Rwanda. But there can be no let up: the focus on education, and particularly educational quality, must be even sharper in the coming years.

nine years free basic education in primary schools has resulted in over 95 percent of all pupils starting primary school. In 2010 around three quarters were not just starting, but finishing primary school. Many communities in Rwanda have witnessed inspirational scenes of communities coming together through Umuganda to build new schools and classrooms to meet the aspirations parents have for their children to learn. As growing numbers of children make it to

has highlighted the need to accompany the abolition of school fees with other reforms

One recent study by Gordon Brown the former British Prime Minister, found that quality basic primary education for every child in the world could increase per capita income growth in the poorest countries by a further 2 percent.
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if children are to learn more. And the quality of education was debated at this years Kivu retreat, the Rwandan governments annual discussion of forthcoming policy priorities. So while Rwanda is increasingly meeting the access challenge, it now needs to turn its focus to the quality challenge. This is particularly the case with primary education.

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It is here that the fundamental building blocks of learning are laid. Without mastering basic skills like reading and writing, or the ability to think critically, the risk is that the next generation of Rwandans will not leave primary school ready to succeed in later education. In many developing countries, including specifically in the East African Community, the need to move from the access to quality is flying up the agenda. Local organisations are emerging that are asking how to ensure that young people are really learning when they go to school. Take Uwezo, an organisation dedicated to improve quality in Uganda, Tanzania and Kenya. Or take the Southern and Eastern Africa Consortium for Monitoring Educational Quality, a cross national consortium focusing on how to ensure children learn in primary schools.

In Rwanda policy makers are turning their attention to the issue. Whether it is in thinking about better measurement of learning outcomes in primary school, efforts to improve the training and motivations of teachers or reform of the curriculum to focus it more on the fundamental building blocks of learning reading, writing and adding up, the right questions are beginning to now being asked. But we under-estimate the scale of the challenge at our peril. There is com-

tangible but in many ways will be harder to achieve in the coming years. Rwanda can afford nothing less than a national mission to ensure the next generation are gaining the skills the country needs to forge a successful future. The issue of ensuring sustainable quality education in Rwanda brings many debatable ideas on the table. IPAR will be contributing to this debate in the coming months with two research projects, one on how Rwanda should define and deliver a quality primary education and the second on how to fund schooling efficiently and fairly. Both will be grounded in the real world experiences of parents desperate for their children to learn, for teachers trying to do their best and local communities. But both will also propose practical ideas for how the Rwandan schools system can provide the skills for tomorrow.

mon agreement that many Rwandans do not have a reading culture, teacher pay and motivation remain a major worry and clear information on just how much Rwandan children are learning remains scarce. The real risk is taking our eye off the ball on education. In truth, once resources are available, building a new school is the easy part. Meeting the quality challenge is less

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2011

ADVERTORIAL

STARTIMES: THREE YEARS OF QUALITY SERVICE

n 2008, StarTimes launched its Digital Satellite Pay TV operations in Rwanda. With more than 20 years experience in the business, the Beijing-based company embarked on extending its operations to Africa and is now operating in 8 African countries including Uganda, Tanzania and Burundi.
Star Africa Media officially begun its operations in Rwanda on August 26, 2008 and in the three years since, we have succeeded in getting a good number of subscribers because we provide a clear digital signal and incorporate channels from other countries in the region.

childrens programming which you can watch either in English or French. Our other channels are unrivalled in providing entertainment, nature and wildlife, fashion and above all, news and current affairs from channels like Al Jazeera, BBC, France 24 and MSNBC.

In the near future, StarTimes will be extending coverage to Gisenyi and Ruhengeri and come next year, more areas will be covered in the Southern Province. One of StarTimes encore visions is to switch Rwanda from Analogue to Digital system by 2013 and we are well on the way to that.

Our main objective is to provide the best service to our customers.

Once they are connected, they do not need to queue up to renew their subscription for later months because they can just buy a scratch card (voucher card), load it and send a message to our operators and the subscription will be activated immediately. This system is flexible and more affordable compared to other Pay TV systems on the market. Customers also like our services because of the technology we use. Its user-friendly and cuts costs because you do not need a dish to get connected to StarTimes. All you have to do is plug and play, and you are instantly connected to StarTimes. The StarTimes Decoder has an antenna that works as a receiver in place of a dish. The StarTimes Decoder costs only 30,000Rwf (about 50 US Dollars) with free subscription for the first month. Apart from the very affordable Decoder, we also have other products like Digital Flat Screens and CRTs which you can buy at fair prices and get two months (24,000Rwf) or three months (36,000Rwf) Subscription of Super Bouquet for free and enjoy over 40 channels.

This September, we are introducing new channels to our package.

These include MCS, a sports channel that broadcasts live Football matches, NBA, Tennis, Golf, Swimming, Boxing and many other sports. The other channels are STV Music showcasing African Music and Baby First, a channel dedicated to
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ANALYSIS

Antenatal Care:
the world a bouncing baby boy. Six months after her labour pangs, Community Health Mobilisers (abajanama bubuzima) have not stopped their routine check-up visits to Mukyeshimana and her baby, Derrick. Though her baby is healthy, the community health mobilisers cannot take chances especially that Mukyeshimana miscarried during her first pregnancy due to high blood pressure. Since 2005, the number of Rusizi district women who give birth at the hospital has dramatically risen. Owing to the past ten month statistics, 90 percent of women give birth at the hospital. There are a few cases of women who give birth while on their way to a healthy centre, says Dr.Theophile Duyishime, the Medical Director of Gihundwe hospital. Many factors are attributed to promoting safe childbirth in Rwanda. Every community cell has at least two Community Health Mobilisers in charge of following up on pregnant women. The Mutuelle de sante (Public Health Insurance) is yet another magic carpet that has encouraged mothers to give birth at hospitals. Community Health Mobilisers have educated us about why its safe to give birth at the hospital, says Mukyeshimana. The Government of Rwanda has also availed ambulances and built a couple of Health Centers in the rural areas which has stopped women from delivering at home. Its relieving when women get all the maternity care they need, and they almost pay nothing for it, said Dr. Duyishime. Meanwhile, former traditional midwives have become significant Community Health Mobilisers, and a tool to educate mothers about the dangers that come with traditional births. Even in the most remote sectors like Nkombo, there is no longer such a thing like traditional midwives. If a woman never reports a pregnancy until its three months, she is usually penalized depending on which Health Centre she goes to. It has become imperative that Rwandan

Rwandas Success Story

Community Health Mobilisers have educated us about why its safe to give birth at the hospital, says Mukyeshimana.

audance Mukyeshimana is a happy mother because she securely brought into

Mothers must test for HIV, high blood pressure and the amount of haemoglobin in their blood. Tests help in the counseling process of pregnant women, on feeding and best exercises they should do, said Yamini Nkurunziza, a Health Counselor at Kamashangi sector, Rusizi District.

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ANALYSIS

mothers go for prenatal checkups during the first three months of their pregnancy. These tests tell the condition of both the mother and baby. Mothers must test for HIV, high blood pressure and the amount of haemoglobin in their blood. Tests help in the counseling process of pregnant women, on feeding and best exercises they should do, said Yamini Nkurunziza, a Health Counselor at Kamashangi sector, Rusizi District. Statistics show that 48 percent of women in Rwanda give birth at home in the absence of a professional midwife. However, women have been required to pay a fine of Rwf5000 when they do not deliver at a Health Centre. Its now mandatory that all authorities get involved in reducing the number of women who give birth while at home. In Rwanda, when cases of mothers delivering at home exceed two, it is the Community Health Mo-

bilisers and the local authorities that get punished for not doing their job. In order to avoid the blame, Community Health Mobilisers ensure pregnant mothers routine visits to maternity centres, at least four times during pregnancy.

Safe birth through prenatal and post natal care is regarded as the healthy solution to both mother and child health. Prenatal care lessens the chances of delivering babies with abnormalities, said Mariam Mukakayijuka, a Community Health Mobiliser, in Kamembe sector, Rusizi District.

Challenges
The biggest challenge to safe childbirth in remote areas is the use of local medicinal herbs. This issue has been blamed on peoples traditional beliefs. Some women come to the hospital with local herbs or their relatives bring the herbs later for them to drink. Local herbs endanger the life of both baby and mother yet many continue using these herbs in secret, says Dr. Duyisenge. Health Centers are now teaching and sensitizing mothers against the use of local herbs.

Giving birth at the hospital helped me to heal quickly, with no infections, said Salima Mahoro, another mother. In 2004, Mahoro said that she got complications after giving birth in the hands of a traditional midwife. Luckily she survived and has never repeated the same mistake. As Rwandan women talk about the dynamics of giving birth at Health Centres as opposed to their homes with a traditional midwife, they have quickly learnt that safe childbirth literally means good health for both mother and child.

PRIMUS GUMA GUMA

SUPERSTAR
rinking from the glass of happiness and strengthening local talent

The leading Rwanda brewer B r a l i r w a ,

through their major brand, Primus organized a festival that span across four months. The Primus Guma Guma Superstar saw a number of Rwandan artists polishing their talents for this most coveted crown that is metamorphosing into an annual event. Hope Magazine had a chat with the Marketing Manager Ms Aline Asselot to have an insight of the whole enchilada

The evolution
Guma Guma became an essential part of the Primus brand in 2009, when the slogan Guma Guma was introduced to Rwandans at the 50th anniversary celebrations, to congratulate the brand for its great achievement in the last 50 years and to wish all the best for the years to come. Guma Guma expresses in a very simple yet impactful manner congratulations and strong encouragement to keep the efforts up; which genuinely fits the Primus brand. Primus, the true beer of Rwanda, is and will always continue to keep the efforts up to bring the best fun and enjoyment to all Rwandans, for instance through football with Primus National Football League and through music with Primus Guma Guma Superstar.

Music is universal
Music is a very important part of our society as it brings fun to people of all age, men, women and youth. Stimulating people, bringing enjoyment and giving talent a chance to step up are very important values for us. Hence Bralirwa Ltd as a responsible company felt the necessity to help local music promot-

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SEAN KINGSTON IN
ers & artists to improve the industry and give them a broader platform for presenting their talent to a larger audience all over the country. Following this objective of encouraging young music talents; Primus in collaboration with East African Promoters (EAP) has decided to host the first ever Primus Guma Guma Superstar music competition beginning of this year.

The rolling
The Primus Guma Guma Superstar competition is designed to bring together the best of Rwandas local artists and engage the whole nation in an exciting and energetic music journey. During the first two months of the competition, the ten Primus Guma Guma Superstar contestants have offered Rwandan music fans fantastic moments by touring the country through road shows; our Primus Guma Guma Superstar truck visited every corner of the country to offer great entertainment and music show to their fans: Rusizi, Nyamagabe, Karongi, Muhanga, Gicumbi, Ngoma, Rubavu, Musanze, Butare, Kigali, Nyagatare and Gako, gathering all together more than 130 000 spectators. All the artists were overwhelmed by the enthusiasm of their fans in Kigali and also upcountry, for instance in Musanze more than 25 000 Rwandans attended the event. Throughout the entire country, the response of the public and the dedication of the artists were tremendous factor of success. In June, the ten contestants went through intensive rehearsals that enabled them to perform their Superstar qualities to the public, and achieved their utmost exposure during the live competition. All following three elimination phases, live on TV, have been heating up the competition. Tens of thousands of Rwandans have been voting for their favorite artist during four weeks and the public has finally set the destiny of the Primus Guma Guma Superstar contestants. Through their votes, Rwandans have decided who to eliminate and who would win the title of Primus Guma Guma Superstar 2011. At the Final on July 30th, all Primus Guma Guma Superstar contestants have been performing their best songs live in front of thousand fans at the parking of Amahoro Stadium. Millions of viewers were following the exciting show live on the National Television. After some thrilling minutes of suspense, the first eliminations of Dream Boys and Jay Polly, left King James and

Tom Close out of breath impatiently waiting for the final verdict. Finally MC Lion Imanzi opened the final envelope containing the name of the winner and announced who became the one and only Primus Guma Guma Superstar 2011: TOM CLOSE. Among the ten contestants nominated by journalists, music experts and producers, Tom Close has been chosen by Rwandans to be the first Rwandan artist crowned with the most coveted title of Primus Guma Guma Superstar. The competition has engaged thousands of music fans who voted massively for their favorite artists and the Rwandan public has clearly expressed his preference through sending SMS. The SMS voting and process have been audited and verified by PricewaterhouseCoopers Rwanda Limited. PwC has independently verified the results of the voting and vote tallying processes to provide assurance that the results announced during the competition reflect the votes cast by the public. The Primus Guma Guma Superstar 2011 Tom Close has been rewarded with a check of 6 Million Rwandan Francs to support his music career and will leave shortly for the United States of America where he will join the worldwide known Reggae singer Sean Kingston. Both artists will produce a single and its video which will be launched on September 17th, 2011 during a gigantic concert at Amahoro National Stadium. Tom Close will be a Primus Ambassador for the coming 12 months till the nomination of the Superstar 2012.

instance by adding dancers and choreography to their show. Bralirwa and EAP are proud to give a platform to Rwandan music and delighted to bring fun and quality entertainment to all Rwandans. We were looking forward to offer the opportunity for those young artists to reach their public around the country. As part of Bralirwas corporate social responsibility program, the Primus Guma Guma Superstar contestants have been also taking part in various social activities. The artists visited the Kanombe military hospital, as well as the Gisozi Genocide memorial center and participated in the community work Umuganda. It is important for the contestants to participate in those activities to give back to the community.

Hype still on
On September 17th, 2011, we will have the pleasure to welcome Sean Kingston to Rwanda for a gigantic concert at Amahoro National Stadium. Along with all Primus Guma Guma contestants, both Sean and Tom Close will perform live in front of thousands of fans. This event will mark the end of Primus Guma Guma Superstar season 1, while we are already looking forward to the next edition. Until end of the year, Primus will also be proudly sponsoring the album launch of the three finalists: King James, Jay Polly and Dream Boys. Primus Guma Guma Superstar will remain a national competition. Primus is the true beer of Rwanda for Rwandans, the primary focus of our activities is first targeting on our country and our people. Primus Yacu Iwacu!

All inclusive
We are very satisfied and overwhelmed by this competition. It is beautiful to see how both artists and the Rwandan public have responded with excitement and passion to this competition. Primus Guma Guma Superstar has enabled some of our young and local talented performers to grow artistically. Week after week, the contestants have been working hard on improving their live performances and clearly demonstrated great creativity; for

And lastly
We would like to thank everyone for participating into the great music adventure, the Rwandan government and authorities, the public, the fans, the media, the artists, music producers and promoters. Bralirwa with its flagship brand Primus is and will always be a key partner in Rwandan music to bring best quality entertainment to its consumers.

KIGALI

Sponsored by

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Hope

Primus Gumat Guma Superstar team: Patrick Samputu, Sep ember 2011 COMMENTARY Alexander Koch, Aline Asselot, Jean-Pierre Uwizeye, Joseph Mushyoma, Aimable Twahirwa & MC Lion

PRIMUS GUMA GUMA

Jay Polly

Faycal

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Dr. Claude

44 44

Riderman

Hope

September

2011

King James
COMMENTARY

Mani Martin

Primus Guma Guma Superstar Winner

Faycal

Tom Close

SUPERSTAR PICTORIAL

King James

Urban Boys

Dream Boys

Rafiki

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Hope

September

2011

COMMENTARY

Tackling women economic

empowerment in the East African Community

Kigali hosted a historical kick-off conference

R
th

wanda played host to a two day first ever East Africa Community (EAC) conference on the Role

Africa is way low compared to other parts of the world, constituting between 70-80 per cent of the total agricultural force and dominating the informal sector. They hardly grow due to challenges like; low levels of entrepreneurship skills, limited access to capital financing and legal obstacles. To most people, Kigali hosting such conference is fit and proper, especially at this moment when women empowerment has taken centre stage in the socioeconomic development of nations. More so, Rwandas political commitment to women empowerment is unwavering. The country is renowned as an exemplar of gender equality and empowerment not only by East African standards but also by world standards. She is currently the only country in the continent and region with a female majority in parliament, at 56 per cent representation. At 30 per cent women participation in top government decision making positions,

Rwanda has already surpassed the MDGs target. Clearly, other EAC member states

will draw some lessons from Rwanda. Going beyond these impressive numerical targets, the EAC is committed to enhance Gender equality and empowerment for the success of the integration process. In the development aspect, unleashing the power of women entrepreneurs is central to maximizing the equity and sustainability of development in the region as this will involve the principles of inclusiveness and empowerment across all sectors and sections of the human endeavour. President Kagame, in his address gave key interventions EAC should consider to realize full potential of East Africa women as true entrepreneurs; Invest in training to equip

of Women in Socioeconomic Development and Business, at Serena Kigali Hotel, from the 5 to 6 August 2011 to craft concrete
th

ways on how the economic bloc would place a critical segment of the society; The East African Women, at the forefront of the regional integration and development efforts. Gender, especially Women facing government institutions and women pressure groups from across the region and beyond were well represented at the conference. while women juggle multiple crucial roles in society, they remain the most poor and most vulnerable in the (East Africa) region. Despite many good efforts, women remain at the fringe of formal economies, a challenging observation by H.E Paul Kagame during his opening remarks at the conference. Worst still, womens productive capacity in

women, especially those in the informal sector with skills to increase their productivity and also manage their businesses. Definitely, this requires huge financial resources

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September

2011

COMMENTARY

It is our responsibility as Governments and regional bodies to mobilize more resources and ensure that institutions that support women in business exist and work well. Similarly, we must continue to invest in programmes that have a direct impact on family livelihood and womens economic security, President Kagame urged fellow leaders. In strengthening women participation in trade, they (women) ought to be involved in formulating trade facilitation and other business related policies. This will increase access of women to critical sectors like financial sector, and will eventually curb the rampant (business) informalities among

an agenda for action was developed, including recommendations of follow-up activities

women. Women targeted policies are key. In Rwanda, Gender responsive budgeting, women guarantee fund, the women bank, saving and credit cooperatives (SACCO) for women, serve to empower women, and indeed many have been empowered through such initiatives. Regional statistics indicate that sectors of high growth potential like banking and finance, mining and manufacturing are male dominated. Women too need to be encouraged to actively participate in these sectors. East African women, es-

It is our responsibility as Governments and regional bodies to mobilize more resources and ensure that institutions that support women in business exist and work well. Similarly, we must continue to invest in programmes that have a direct impact on family livelihood and womens economic security, President Kagame urged fellow leaders.

at various levels, from the private sector to Governments, Civil Society and regional organizations. Of great significance, is the mainstreaming of gender under the vision of the EAC in the next five years to realize substantial economic and social transformation of the EAC region through the implementation of the 4th EAC Development Strategy. The importance of mainstreaming gender in any socioeconomic development initiatives is premised on the alarming global gender disparities in social and economic opportunities, property and rights. In the EAC treaty, article five, 3 (e) emphasizes the mainstreaming of gender in all its (EAC) endeavours and the enhancement of the role of women in cultural, social, political, economic and technological development Furthermore, the treaty comes even much stronger on promoting women in business in article 122 recognizing the importance of women as a vital economic link between agriculture, industry and trade. A detailed regional (EAC) study on Gender and Trade indicates that the biggest challenges East African women face in taking

pecially those in trade, have a lot to learn from each other. The conference provided good opportunity to share business experiences, networking and also build (business) partnerships. There was side exhibition of women business activities, especially those in the art and craft sector. And the good news is that, the Secretary General of EAC, Ambassador Dr. Richard Sezibera announced to participants that the new 4th EAC Development Strategy (20112016) prioritizes gender and community development.More important though, the EAC integration agenda has gotten to a more practical stage (of implementing both the customs union and common market), where the capacity to harness the full potential that comes with such integration developments becomes essential. For instance, in tackling low productivity, the Common Market Protocol, with its provisions for the free movement of goods, persons and labour, the right of establishment and residence, as well as the free movement of services and capital, provides yet another avenue for East Africans to better their lives, and increase productivity. So successfully the conference ended on August 6, with the following key challenges; the general gaps in the economies of member states, including poor infrastructure, inadequate and expensive ICT. Also, gender specific gaps, such as deficits of access to critical inputs into womens, enterprises, including differential access to finance, technology, information and markets; illiteracy; legal frameworks and cultural practices which put hurdles in the way of the participation of women in development. As one of the major outputs of the conference,

up opportunities to trade involve underlying poverty and gender inequalities, uncertain land rights, low literacy and education, the responsibilities of caring for family members and lack of time for personal development (time poverty). And, women experience

barriers to trade differently from men and gender-sensitive policies can help ensure that female importers and exporters reap the same benefits from improved trade logistics as their male counterparts. To this end, the 2009-14 EAC Gender and Community Development Strategy takes into account; special programmes designed for women in business in partner states, encouraging enrollment, retention and completion of women in vocational training, enacting laws that hinder access to and control of economic resources.

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September

2011

COMMENTARY

Tourism sector

T
tor came in

tops Rwandas investments worth Rwf 1.89 trillion for the last 5 years
he tourism sector took the lions share of registered investments in Rwanda for the last 5 years. grown steadily from a low of registered projects worth Rwf 136 billion in 2006 to projects worth Rwf 422 billion in 2007.Registered investments witnessed another jump to Rwf 455 billion in 2008 further jumping to Rwf 644 billion in 2009. However, in line with global trends for the last 3 years, there is a decline in investment registration from 2009 and last year, that can be attributed to effects of the Global Financial Crisis (GFC). From investments worth Rwf 644 billion in 2009, the RDB report says that investments witnessed a decline to Rwf 231 billion last year. RDB was quick to point out that to make up for the shortfall witnessed last year, it is targeting over Rwf 330 billion this year. In the RDB tabulation, the portion of Foreign Direct Investments (FDIs) taken as a fraction of total registered investment to Rwanda ,has been slightly more than half in the last 3 years. Given the marked decline registered by countries in the third world, in the last 2 years, The World Investment Report (WIR) 2011 published by United Nations Conference on Trade and Development (UNCTAD) says that countries in the third world such as Rwanda that need FDIs to transform their economies, would need to come up with completely new ways of bridging gaps emanating from falling traditional FDI figures before vitalities in the global economy is brought under control. Global Foreign Direct Investment (FDI) has not yet bounced back to pre-crisis levels, though some regions show better recovery than others. The reason is not financing constraints, but perceived risks and regulatory uncertainty in a fragile world economy, Ban Ki-moon UN Secretary General says in the opening remarks of the WIR 2011. The UN report says that countries such as Rwanda that are keen on using FDI for transformation, needs to craft new approaches in order to bridge such gaps brought about by the spills of the GFC as FDIs within the global scene are not likely to improve significantly for the next 2 years. UNCTAD advises such countries to focus

Rwanda Development Board (RDB) says in a report availed exclusively to The Hope Magazine that Rwanda managed to register over 500 investment projects worth Rwf 1.89 trillion with tourism topping up the list with 140 registered projects worth Rwf 427 billion. The construction and real estate sector

came second in the list with 87 projects worth over Rwf 408 billion. The energy secthird with 32 projects worth

over Rwf 307 billion. Other notable sectors includes ICT with Rwf 198 billion, financial sector with Rwf 175 billion and agriculture with Rwf 116 billion. RDB says that it has registered approx 110 projects per year in each of the last 4 years. Investment commitment value peaked in 2009 driven largely by several large transactions such as Tigo, MTN, Contour Global, the report states adding that, the value of registered projects declined significantly in 2010 as compared to 2009 due to low value of individual registered projects. The peak referred in the RDB report reflects the highest amount of registered investments ever recorded by Rwanda that stood at a whooping US$1.1 billion. From the RDB report, investments have
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instead on new approaches of investment models being championed by trans-national corporations such as what it termed as non equity modes of international production and development. Among such new modes of production the WIR cited, contract manufacturing and farming, service outsourcing, franchising and licensing. WIR report further states that third world countries in need of FDIs to grow their economies would also have to take note of the growing importance that South-South cooperation has within rapidly changing global investment landscape to boost sustainable development.

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September

2011

COMMENTARY

Officer (COO) told this writer recently upon being asked this question adding that , We are on track as per our targets. For the last couple of months we have reg-

istered investments worth $142 million. We have big projects coming up some of which are well known. I pushed the RDB COO to provide more insights. Given the past performance one can say with confidence

Will vision 2020 aspirations be met?

With the release of the RDB statistics one question begs. Will Vision 2020 aspirations be met given the fact we are only 9 years away? I have no doubt that the aspirations as enshrined in Vision 2020 will be met given the current status of our economy, Clare Akamanzi RDB Chief Operating

Rwanda has managed to register over 500 investment projects worth Rwf 1.89 trillion with tourism topping up the list with 140 registered projects worth Rwf 427 billion.

that hitting the projections for Vision 2020 will be highly achievable. A case in point being Rwandas rising investment rate that has been on steady progression for the last 5 years. Calculated as a percent of the Gross Domestic Product (GDP), the investment rate otherwise known as Gross Fixed Capital Formation (GFCF) rose from 16 percent in 2006 to 21.6 percent last year. RDB says that GFCF is projected to hit 30 percent of GDP by the year 2020. The picture is not bad. One way of saying that, is to look at the inflow of foreign debt into Rwanda as captured by the central bank, that has been on a steady rise further indicating growing confidence in our economy. Long term borrowing from foreign sources by the private sector has been on a steady growth over the last three years. Central bank says that GFCF rose from less than16 percent of GDP in 2006 to 21 percent of GDP last year translating into combined accumulation of Rwf 227 billion over 4 years whereby GFCF stood at Rwf 274.7 billion in 2006 and rose to Rwf

501.2 billion by last year.

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Sunset Villas Kibagabaga

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September

2011

HEALTH

E
related to

CORRECT WORKING POSTURES IMPORTANT FOR GOOD HEALTH

very human being has to do some work at his home or in office or in the field. The work may be

Poor Sitting Posture

It is also important to keep the back straight and avoid undue stretching or bending,

earning a livelihood or to fulfill

some other need. Even a child has to study and help in small chores at home. The human body is like a machine and limbs are

tools for executing any work. Man has developed his skills immensely since the dark ages and has created many useful things for his working and comfort. This has made working easier, and comfortable. Bur many related problems have also health

emerged after stand up straight. While sitting, straight back chairs should be preferred over sofas where one slumps the back. Very thick mattresses should be avoided while resting, as with them the alignment of backbone is disturbed, leading to pain. If it is necessary to lift a heavy weight, a person should hold it with both hands and keep it straight in the front. This minimizes the strain put on the back. Problem of eye sight is yet another preventable health related problem. This is increasing with increasing use of computers and Similarly while reading, one should see that there should be adequate light. Its adjustment should be such that no shadow should fall on the page been read. This helps ensure that eyes are not subjected to undue stress while reading. There are other set of health related problems generated by the use of computers for a long time continuously. Cramps in the fingers and hands are one of them. To avoid this, it is necessary that one avoids typing continuously. In between work, pause of few minutes is needed to aid the muscles of hands get some rest. Cervical strain and spondylosis (i.e. stiffness of the neck) is also induced and aggravated by working continuously for long time on computers. To prevent this, it is necessary

this which are chronic. Many of these problems can be prevented by adoption of correct working postures while working. One of the most common health related

problems encountered due to incorrect working posture is backache. It is more common in middle years and after but can occur in younger individuals also. Age related stiffness of the back (lumbar spondylosis) is one of the reasons for this pain. In young people backache can occur due to a pull on the muscles of spine or even herniation of an intervertebral disc. There are many factors which if given due attention can prevent backache due to any of these causes. Since man uses his 2 limbs for walking and walks against gravity, as such the back is subjected to stress. Now when people use it like a spring bending and twisting it in any direction, it is subjected to further stress and result is back pain. Solution to prevent it is very simple. A person has to keep his back straight all the time. If one has to lift something from the ground, it is ideal to sit on knees, keeping back straight and then
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other electronic items like T.V., ipod, e.t.c. Children wearing thick eye glasses, is a common sight in both developing and developed countries. They need to be taught the importance of avoiding watching T.V. and computer screens for long time continuously. Watching T.V., particularly those with a big screen, from very near is strainful for the eyes and should be avoided. If one gets slight pain in the eyes after using a computer or watching televi-

sion for long, it is better to close the eyes for few moments and cover them with both hands to allow the eye muscles to relax.

Hope

September

2011

HEALTH

that one keeps the computer at level with head and eyes. During working, the head and neck should be at level with the work been done and not unduly bent or stretched. Cars have become a necessary convenience in life where one has to commute long distances and time is scarce. But while driving a car also it is important to follow certain precautions to avoid strain on the back, neck and legs. Otherwise people suffer from neck pain, cramps in the neck, legs and hands, abnormal sensations in the hands, arms and legs all parts which are put to use while driving a car. This happens more in people driving long distances. One needs to ensure that the back is not unduly stretched while driving. If after adjusting the seat, one still feels that back is being stretched, he/she should put a cushion behind

to support it. The

seat should be adjusted

washing or cleaning in the house. Ideally both hands should be used for these chores to prevent excess strain on one hand. Otherwise this becomes the cause for painful cramps and parasthesias in the upper limb being used constantly for this work. A balanced and nutritious diet is important

such that legs are not stretched much, while pressing the accelerator or break. Rear view and side mirrors have to be placed in a position that one can look anywhere comfortably without stretching or turning the neck. Some precautions are also necessary while driving a 2 wheeler, i.e. scooter and motor cycles. Most of the models of these vehicles need a, kick, to start them. This, kick, becomes a cause for pain in the legs or feet or even a backache if one is not careful enough. One should press the, kick starter, while keeping back straight, without much jerk to the legs. This can be ensured only by keeping the 2 wheeler in a good condition with proper oiling and cleaning. It is also important to keep the back straight and avoid undue stretching or bending, while

to keep the body strong and healthy. Regular adequate physical exercise helps to keep the limbs and body supple and capable of bearing some strain. Hence one needs to be careful about diet and exercise also to remain healthy, along with adopting correct working postures.

Dr. Rachna Pande Specialist in internal Medicine Ruhengere hospital E-mail-rachna212002@yahoo.co.uk

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September

2011

FEATURE

Entrepreneurship:

A Game Rwandans Need to Learn

arvey Firestone, renowned opment agenda; Vision 2020 and the Midterm Strategy; the Economic Development and Poverty Reduction Strategy (EDPRS). Pillar three of Vision 2020 envisages a viable private sector that can take over as the Rwandans need to learn a thing or two to become better entrepreneurs. For the Private Sector to become a true engine for Rwandas economic development, Rwandans ought to engender more entrepreKnowledge Management Expert says: Capital isnt so

important in business. Experience isnt so important. You can get both these things. What is important is ideas. If you have ideas, you have the main asset you need, and there isnt any limit to what you can do with your business and your life. Mr. Antoine Manzi, the Director of Employment and Capacity Building at Private Sector Federation (PSF)-Rwanda says about 60% of prospective entrepreneurs supported to start through their numerous business development programs, do not stand a test of time to celebrate at least their first birth day. This is very high business mortality in Rwanda that should raise serious concerns to policymakers among other stakeholders. Hope Magazine went out on a fact finding mission around Kigali city about Whore the mass importers of Glass in Rwanda You dont want to know or hear what the facts on ground are! Despite of the booming construction sector in Rwanda, there is only one mass importer of glass in Rwanda, an Asian by nationality. No Rwandan. Is there any law prohibiting Rwandans to import glass and make clean and big money? Answer is No! Who prohibits Rwandans in venturing in lucrative areas like that? It is a hard question to answer. His Excellency President Paul Kagame has relentlessly pledged full government support to those who choose to be entrepreneurs. Indeed, the governments support to private sector can be gauged by the immense value accorded in countrys socioeconomic develwww.hope-mag.com 56

A young entrepreneur at work

principle growth engine of the economy. Similarly, EDPRS emphasizes assigning a greater role in policy implementation to markets and the Private Sector. A critical assessment of what is being done at policy, and/or institutional levels, therere lots of interventions intended to benefit Rwandans to become competitive entrepreneurs. Surely, this space can be too small to enlist all of them.

neurs than mere businessmen. Lets orient ourselves with the difference between the two. Whereas an Entrepreneur is one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods, a Businessmen is a mere trader who deal in buying and selling of either semi-finished or finished goods and services. In todays competitive business world, an

Hope

September

2011

FEATURE

economy is better off with more entrepreneurs than businessmen. Rwanda, a country with minimal natural resources, the only abundant resource it has are its people. On a very positive note, Rwandans are generally resilient, pragmatic, loyal, and people of high integrity shaped by a history of hard times. Singaporeans too underwent almost the same hard times and thats why Rwanda has chosen the country as her growth model. Like Rwanda, Singapore too has minimal natural resources yet it is one of the Asian Tigers that managed to leapfrog its growth in merely two decades to become one of worlds economic super powers. Singaporeans (less with natural resources) are the secret for this phenomenal growth. If Rwanda is to become a Singapore, as we so dream and committed, we ought to adhere to what it takes to be true entrepreneurs, by adjusting the way we do business to do the following; Those already in business ought to be creative. Creativity is the spark that drives the development of new products or services or ways to do business. In our market, we observe some local investors using obsolete production methods. As a business owner you ought to challenge yourself to innovate and improve your product/service line. It calls for continuous learning, questioning, and thinking outside of prescribed formulas. On a positive note, credit goes to business community for improved dedication to their businesses. At least there is now increased open hours for business, although more could be done. Dedication is what mo-

ful of market realities. A true entrepreneur is always in quest for the changing needs of his/clientele so as to respond to them quickly to keep them hooked. Theres a common saying that in Rwanda all sectors are virginand truly they are. A part from just acknowledging this fact, there is need to see more Rwandans ceasing these opportunities to become competitive entrepreneurs after all the government has created an enabling environment. Lastly, and most important, there is need for a mindset change.

By culture, Rwandans are pastoralists and farmers. Some people have stuck to these traditional methods of survival and perceive doing business as a last resortafter failing in other domains. Rwanda aspires to become a service-based economy, meaning in years to come the country will be transformed from being largely agriculturebased to service-based. Thus, the future of Rwanda lies in the service sector and this needs to be embraced by Rwandans. The faster you act today the much better off you will be in the future.

tivates the entrepreneur to work hard, 12 hours a day or more, even seven days a week, especially in the beginning, to get the endeavor off the ground. The area perhaps as Rwandans will need to pull up socks is flexibility in business; meaning the ability to move quickly in response to changing market needs. It is being true to a dream while also being mind57 www.hope-mag.com

Selling Points: Gikondo Industrial area, Kigali City Center, Nyabugogo, Kimironko, Gakinjiro, Muhima For more information please contact: Rwanda Foam S.a.r.l. P.O. Box 595 Kigali Rwanda, Tel: 573 400, 0788 307 464, 0788 307 532, Email: makuzabertin@hotmail.com

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September

2011

POINT OF VIEW

One Laptop per Child Program in Rwanda

Kids, Parents Share Benefits
ICT is one of Rwandas priority sectors.

OLPC program will play a vital role in shaping a knowledge-based economy in the next generation.

rs. Jacqueline Umutoni, 33, a resident in Kabeza-Kigali, is a happy mother of two sons; Raymond Twagira (10years) and Tony

grams.but you see the government really committed and is delivering, he observed in an exclusive interview with Hope Magazine. As Mr. Kimenyi spoke, his wife listened attentively and affirmatively nodded. That aside, talk about the One Laptop per Child, she interjected. We now have two computers in our family; Raymond and Tonys. Even the neighbours kids all do own laptops now. They go to the same school. The Government of Rwanda, quite strong and focused on developing a knowledgebased economy, is one of the 35 developing countries across the world that benefited from the pilot phase of the One Laptop per Child (OLPC) program. The chairman and CEO of One Laptop Per Child (OLPC), Rodrigo Arboleda, says Rwanda is one of the most successful countries in the pilot phase, and he sees strong commitment coming from her (Rwanda) leadership. The results of the deployment in Rwanda

will, in some ways, determine OLPCs future; while the program has distributed more than 1.4 million laptops in 35 countries around the world, no nation as poor as Rwanda has embraced OLPC so fully. In deployment, there will be a proving ground for OLPCs premise, that distributing laptops to the worlds poorest children will make their lives better. What is different about Rwanda is [President] Paul Kagames long-standing belief in us and us in him. We will walk to the end of the earth to help him and Rwanda. We want Rwanda to be a showcase. said Nicholas Negroponte, the founder of OLPC Association in an interview. Now, the pilot programme just ended last year, and Rwanda has showed strong commitment. In fact, it has integrated the program in her ICT development plans at lower levels of education. The Minister of State for Primary and Secondary Education, Dr. Mathias Harebamun-

Ruhigula (6years). Both sons go to Remera Primary School, a government aided school. The father is a commission broker for houses and other properties. Both parents did not go far in terms of formal education and they really struggle to earn to sustain their family. Thanks to the Government Program of Nine Year Free Basic Education (9YFBE)a part from a few scholastic materials, the parents do not have to bother themselves with school fees. They are so proud of the Government. Mr. Theoneste Kimenyi, the Dad, says: We work so hard, day and night, to improve our financial status so we can pay government taxes because we can clearly see value (for paying taxes). These (free education among others) are very expensive government prowww.hope-mag.com 62

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POINT OF VIEW

The government targets to have 160,000 laptops deployed by June 2012 .

He visited various ministries, several parts of the country and schools and talked to many people, and what he found is that Rwandans are a group of determined people, very hospitable despite the tragedy they went through, he said in a press interview. Education in Rwanda is becoming the cementing element of this consolidation of peace and prosperity. Rwandans have shown that they are more interested in the future than in the past and that is the capacity they should not lose. Arboleda visited Gahini Primary school in the Eastern Province as well as schools in Nyarugenge District implementing the OLPC program. The Education Minister said that the OLPC Association recognises the progress

Rwanda has made and the vision it has,

Classes going on at Remera Primary School

which sets a precedent for other African countries to follow. He noted that Rwanda has reached im-

gu says a total of 65, 000 laptops have been distributed in schools so far while an additional 35,000 would be deployed soon. There are about 5million schoolchildren in Rwanda. After two years Rwanda wants to distribute laptops to half of that population. Mr. Kimenyis family is one of the many enjoying the equipment. I now have an email. Mama Raymond too has, and she can also type using either Raymond or Tonys laptop. Over the weekends, I and my wife spare time and our kids teach us computerskills they acquire at school. Before, I never imagined I could ever use a computer in my life. But now am a pro Obviously, the OLPC program is not only benefiting kids but also parents who have never had chance to learn computer in schools. The impact so far is huge. ICT is one of Rwandas priority sectors. OLPC program will play a vital role in

shaping a knowledge-based economy in the next generation. Raymond says: When I grow up I want to be a computer engineer or programmer But Mr. Kimenyi recalls that at about 5 years, his son Raymond said he would become a carpenter when he grows up. This explains how OLPC has changed lives and aspirations of many families in Rwanda. In fact, Mrs. Jacqueline has been more inspired: I have decided to go back and study computer next year to improve my skills, she says. OLPC wants to transform education in poor countries by giving children laptops that will, as it says in its mission statement, spark collaborative, joyful, self-empowered learning. End of August 2011, Rodrigo was in the country (Rwanda) on a four-day working visit which he concluded with a courtesy visit to President Paul Kagame.

pressive levels in the implementation of the OLPC program, noting that it had now gone beyond distributing computers to connecting them to servers. He said the government has distributed computers in over 128 schools. In a related development, the Minister of State revealed that once the education sector is connected to a single server, teachers and students would be able to access and exchange knowledge using the technology in a bid to make Rwanda one of the few countries to integrate ICT in education. Over 60,000 more laptops will be imported this year. The government targets to have 160,000 laptops deployed by June 2012 as part of the governments program to promote computer-knowledge based education.
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FEATURE

they didnt capture fully well the kind of gender revolution taking place in Rwanda On September 5, a story in the local press reported a plea made by Bjorn Hareide, the Senior Advisor of the East African Standby Force Coordination Mechanism (EASFCOM). According to Mr. Hareide, East African countries need to do better to increase the number of women who serve in missions that support peace. Rwanda has the largest number of female police officers who serve in the United Nations peace missions. But overall, the percentage of women in such missions is only 29%, less than the Beijing Conference threshold that called for at least 30% representation of women as a means to advance gender equality globally. Rwandas story on gender equality is somewhat known. The topic of gender equality often cites the fact that Rwandas parliament has the highest percentage of women globally, at 56%, as pointed out recently by a local columnist. That contents of that column are aptly indicated in the title Kenya can learn from Rwandas gender formula. The same author, Gatura Mwaura, also pointed out that while Rwanda is doing very well in terms of women parliamentary representatives, for her sister neighbors, not so much. Rwanda is followed by Tanzania at 36%, Uganda at

and Peace Keeping Missions

hen other regional mem35% Burundi 32%. Kenya is last in the region at a distant 9.8%. Why is it that Rwanda is leading the region both in terms of representation in parliament and also in terms of contribution of women to peace missions as indicated above? I think that this relationship implies something that is much deeper. It speaks of a philosophical commitment by the government of Rwanda on gender equality. President Kagame has been crucial in inculcating this commitment. Umufasha wa mbere, Jeannette Kagame, has done just that, playing a likewise crucial role of advocacy and mobilization through her Imbuto Foundation. This commitment is the inspiration for the fact that the Beijing threshold is almost doubled in Rwanda. The broader patterns of gender equality in Rwanda, however, have not been well articulated. If you dont dig deeper, you might think that women equality in Rwanda is only about parliamentary representation; this is because this is the only aspect that is being highlighted by observers and pundits. What this also tells us is that when the rest of the East African countries catch up with Rwanda in terms of parliamentary representation of women, they will still be behind in many aspects of the transformation of gender relations. It is, therefore, important that the quest for gender equality has a certain philosophical orientation and commitment as is the case with the Rwandan government. Once that is there, gender equality will be bers catch up with the parliament numbers, they will still be behind because

Women Equality
felt beyond the superficial aspects of counting number, however useful that is. So, the conversation about gender equality also needs to take place at the level of the mind. Once this takes root, it becomes cultural and therefore more difficult to reverse and I think this is what is taking place in Rwanda. By telling the whole story of the transformations taking place in Rwanda, our brothers and sisters of the East African Community can get a better picture and therefore the reality that they are falling behind times. Likewise, Rwanda must not be shy in drumming up its success story. It must show that more than women representation in parliament is taking place. In security matters it must highlight the story of the brave women in Darfur; the police officers in Haiti. In Economic matters, it must speak of the many schemes it has put in place for women economic empowerment, beyond the often cited Agaseke, which is also a good story but which often gives the impression that women in Rwanda are only producers of Agaseke. In Rwanda, therefore, there is still un untold story that must serve as inspiration not only for Rwandans to be proud of their achievements but also to help inspire other members of the global community to take notice and style up. But this lesson must begin with our neighbors in the East African Community. And this is the proper context for understanding Bjorn Hareides call for the Community member states to pull up their socks in the area of peacekeepingto catch up with the times.

Rwanda has the largest number of female police officers who serve in the United Nations peace missions. But overall, the percentage of women in such missions is only 29%.
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2011

COMMENTARY

THE RISING FOOD PRICES IN RWANDA

here has been a series of reports in the media about high inflation in population grows, more and more people demand foods which may not necessarily match its (food) marginal production increase, thus the scarcity. Historically, Rwanda is a low inflation country, but pressure on prices is becoming evident in recent periods. Rising food prices particularly could pose a constraint to long-term growth, mainly for development in the non-agricultural sectors. Expenditure partners indicate that most poor households, especially those in rural areas, spend a larger proportion of their income on food. Thus, rising prices of food definitely erodes welfare of the poor. As a result, the pace of poverty reduction could be derailed by rising prices, especially that of food prices. On the other hand, a significant proportion of food consumption is own-grown or own-produced thus reducing households vulnerability to food price shocks but less monetization of the economy. Agriculture continues to be the most ment, employing over 80% of the total population and contributing over 35% of total GDP in real terms. The performance of the annual food crop has a large bearing on the overall GDP estimate. Success has been achieved in this sector due to a strong commitment, through the EDPRS, of government programs. Crop Intensification Programs, fertilizer use, distribution of better quality seeds, irrigation pilot programs, greater use of water harvesting and terracing are a number of measures currently being pursued. In addition, governmentfunded storage facilities are also improving the management of harvest stocks. Research done by IPAR-Rwanda on the sector indicates that there is high potential for the development of the sector with the introduction of modern methods of farming to increase both productivity and quality of products, the development of value added production, and initiatives to increase exports; However, for the sector to make its full contribution to the economy a number of areas of Government policy and strategy are critical. the East Africa region, especially in

Uganda and Kenyareportedly well

over 15 per cent, forcing some folks in those countries to go on streets in protest of poor monetary and fiscal policies. Consumer price indices in those countries is way high, basically due to scarcity of food items, caused by a number of factors like natural calamities (drought) and wars in Somalia and Sudan. In Northeastern Kenya, many are starving. The BBC recently reported that over 10million Africans are starving and a big number of those may die. In Rwanda, thanks to the sound macro (monetary and fiscal) policies, the National Institute of Statistics (NISR) reported in August that inflation had been contained to 7.4% but only food prices and alcoholics pushed it that high. Year in year out, the only reason for whichever inflation figure; low or high, reported in Rwanda is due increase in food prices. Obviously, as the

critical sector to Rwandas economic develop-

For instance, it will make more sense to farmers if the road network and meteorological ser-

vices are better developed. Additionally, the education sector should undertake and provide research training

in agriculture and entrepreneurship. SMEs

engaged in Agriculture sector, especially those adding value, ought to be supported.

Source: NISR, July 2011

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