Intiti Magazine - Issue 4

No 4 | Nov - Dec 2018 A Special

Publication

Rwandan made goods bites into import bill Local private initiatives gain momentum with Rwanda’s Green Fund

Made in Rwanda fair targets record numbers

CIMERWA on

strengthening Rwanda

Insights from CEO BHEKI MTHEMBU in the next issue RWACOF SARL:

Strawtec:

A coffee processing and exporting company since 1996

Technology for high demand affordable houses in Rwanda.

Intiti M AGA Z INE

CONTENTS

Kigali inland dry port to ease trade |7

News in Brief

Made in Rwanda fair to target record numbers |9

The first Premium stone coated steel roofing tiles manufacturered in Rwanda and one of the few in Sub-Sahara Africa.

Our main stone coated tile products are: - Hippo tile - Hippo classic - Hippo Shingle.

PRE-PAINTED 1. HIPPO LIFE Technical Specifications:

of the art technology and full set of automated coating line.

It is our belief and Core value that satisfying our customers Hippo stone-coated steel is an essential factor that roofing tiles are made of a keeps us growing in the ROOFING SOLUTIONS high quality Aluminum-Zinc industry. We want to promise alloy steel which is coated our valued customer that 2. HIPPO PLUS with world class stone we will exert our full effort in Technical Specifications: granules by using our state fulfilling our commitment.

- Overall Length: 1170 mm - Effective cover width: 1070 mm - Base material: Al-Zinc coated steel - Thickness: 0.4 mm - Gauges: 26

3. HIPPO COVER

- Panel size: 1340 mm x 420 mm Light stone coated metal roofing tiles - Installed Exposure: 1265 mm x 370 mm - Area coverage of tile: 0.468SQM - Tiles/SQM: 2.13 PCs - Installed weight: 5.96 Kgs - Base material: Al-Zinc coated steel - Thickness: 0.40 mm

Rwandan products exhibit at China International Expo |7

Experts meet to improve quality of essential oils |8

Rwandan made goods starting to bite into import bill |13 SOLAR WATER HEATER EQUIPMENTS

Local private initiatives gain momentum with Rwanda’s Green Fund |18

HITACHI POWER TOOLS

Features HIGH QUALITY LIGHTNING PROTECTION

QUICK - STEP LAMINATE FLOORING

Bella Flowers: part of the Flower Park projects of Rwanda |22

GEOTEXTILE PRODUCTS

Hippo roofing spearheads customised durable solutions |24

WATERPROOFING PRODUCTS

HIPPO RIDGE

Technical Specifications:

- Overall width: 1080 mm - Effective cover: 1020 mm - Base material: Al-Zinc coated steel (PPGL) - Gauges: 30

- Cover width: 400 mm - Base material: Al-Zinc coated steel (PPGL)

1. HIPPO LIFE

TEAK BROWN

S&H Industries Ltd. (Hippo Roofing)

2. HIPPO PLUS GREEN

CAPRI BLUE

Technical Specifications: BLUE

- Overall Length: 1170 mm - Effective cover width: 1070 mm - Base material: Al-Zinc coated steel - Thickness: 0.4 mm - Gauges: 26

ELECTRICAL MATERIALS

WATER PUMPS WITH SPARE PARTS

Q & A with Bheki Mthembu - Chief Executive Officer CIMERWA |16 CONTACTS INFORMATION

Technical Specifications: TEAK

GREEN POWER GENERATORS

P.O. BOX 700 KIGALI – RWANDA; KK 15 Road (Exactly nearby Roundabout) Managing Director: +250784337666; Technical Director: +250788300736; Sales: +250788777793 Marketing Manager: +250788850764; E-mail: sonatubes@gmail.com ; Website: www.sonatubes.com

PRE-PAINTED ROOFING SOLUTIONS

DARK GREY

GREY

TERRA COTTA

BRICK RED

- Panel size: 1340 mm x 420 mm - Installed Exposure: 1265 mm x 370 mm - Area coverage of tile: 0.468SQM - Tiles/SQM: 2.13 PCs - Installed weight: 5.96 Kgs POTTERS CLAY TELLOW MAROON CHARCOAL BLACK BROWN COFFEE BROWN CARMEL - Base material: Al-Zinc coated steel - Thickness: 0.40strong. mm This is due to Strong & Light Weight: As compared to ordinary clay tiles, stone coated roofing tiles are very

Special Ecomonic Zone Masoro Plot D5 P. O. Box 6129 Kigali - Rwanda Tel: +250 787 419 067 +250 788 312 192 Email: info@hipporoofings.co.rw

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the aluminum zinc base material coated to steel used. It is also unbelievably light weight in comparison with concrete, clay weighs 6 times that of stone coated Tiles.

3. HIPPO COVER 4. ACCESSORIES Environmentally Friendly: The product is environmentally conscious, less timber is used and therefore less destrucHIPPO RIDGE tion of our forests. Around 70% of the contents used are recyclable.

Technical Specifications:

Technical Specifications:

- Effective cover: 1020 mm

- Base material:

Heat Resistant: As compared to other roofing products stone coated tiles are known to be resistant to house fires, in fact, research shows that1080 a house - Overall width: mmcan burn down leaving the tiles intact.

- Cover width: 400 mm

World Bank injects Rwf132B in Rwanda’s Education |11

Big Stories

4. ACCESSORIES

Technical Specifications:

Kigali Innovation City to position Rwanda as continental tech-hub |10

SONATUBES Ltd manufacturers of high quality PVC Pipes |20

SONATUBES Ltd was established on December 10th, 1976 and up to now the entire place around is named by the company’s name. SONATUBES Ltd manufactures PVC Pipes with high quality standards and offering different technical services such as Execution and maintenance of construction of water supply network extension; Study, assessment and evaluation for the quality of water drainage system; Supply, installation and maintenance of Electrical Motors, Generators and Air conditioners; Supply, installation and maintenance of Lightning Protection System (LPS); Supply and installation of Quick - Step Laminate Flooring and

other technical services. Therefore, for more than 40 years of working experience, our stock has reached about 5000 products and we have enough big capacity of production. Meanwhile, SONATUBES Ltd industry received many Appreciation Awards and Certificates from different Hon. Ministers and Government institutions for its contribution to promoting Made in Rwanda Program.

ADARWA: Reaping fruits of collective hard work |26 Limited sportswear inspires Coach to start local production |28

Regional

Sports

Africa attract investments to key projects |30

Brexit plans may impact on Rwandan footballers to feature in English Premier League |34

Opinion

Book Review

Capitalizing on Africa’s Demographic Dividend |32

Africa’s Business Revolution |36

Nov - Dec 2018

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Intiti M AG A Z I N E

Lead Story

Coming soon from Rwanda Mountain Tea

Publisher’s note Rwanda entered into a partnership to enable home-made products be sold on China’s Alibaba e-commerce network, a move that will boost the Made-in-Rwanda initiative on the global market.

The market access created does not only look at traditional commodities like coffee or tea alone but an opportunity to a whole range of brands from Rwanda. This opens up new frontiers in e-commerce and competitiveness to local entrepreneurs with a wide and higher demand of local goods.

The partnership is yet another shot in the arm to the Rwandan business community but it is an opportunity that needs to be seized. This partly answers the question about Rwanda as a small market, yet the local market in fast growing.

Government has also been consistent in improving the environment for businesses to operate as the latest World Bank report shows.

The report says Rwanda is now the 29th easiest country to do business in the world.

Having improved on almost all indicators that the study hinges on, the major one was electricity that is mostly talked about by manufacturers as a

Managing Editor Steven Nsamaza +250 788 306 472 nsamaza@gmail.com Sales and Marketing Manager Robert Mubumbyi +250 785 450 077 murobert85@gmail.com

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Nov - Dec 2018

big challenge. Globally, Rwanda also remains the second for ease of registering property and third for quality of credit information systems and procedures.

As the country continues to look for all available avenues to enhance the economic competitiveness there are promising results. Rwanda’s economy has witnessed a 36 per cent drop in its trade deficit since 2015 majorly to the Made-in-Rwanda campaign that has increased the country’s industrial output.

Old

New

Old

New

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Latest figures show exports are up 69 per cent from $559 million in 2015 when the campaign was launched to $944 million in 2017. Total imports have decreased by 4 per cent, from $1.849 billion in 2015 to $1.772 billion last year.

With the new policy and brand of Made in Rwanda in place, it is the local producers who have to seize all these available opportunities to innovate and raise production.

On the other hand, all is not done for the government, challenges faced by local producers are still prevalent which calls for concerted efforts of different public institutions to identify and address.

Contributors Aimable Twahira Ignatius Ssuuna Jejje Muhinde Steven Nsamaza Design / Layout Moses Sserunkuma +250 784 510 388

Intiti Limited Gasabo District- Amahoro Stadium Administration and Marketing Tel: +250 788 314 909, +250 785 450 077 Email: intitimagazine@gmail.com Twiter:@MagazineIntiti Facebook:intitimagazine www.intiti.rw

New packaging, same great taste.

Rwanda Tea Packers . P.O BOX 4834 Kigali -Rwanda . Tel: 0788 302 537 Email: accounts@rwandateapackers.com . website:www.rwandateapackers.com

Nov - Dec 2018

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Intiti M AG A Z I N E

Lead Story

government entered into partnership with Alibaba Group to market the country’s tourism opportunities as well as sell its products in China.

Rwandan products exhibit at China International Expo

Gold Blend

Green Tea

Mild Blend

The very best high grown black tea.

The very best high grown green tea.

Mild and mellow black tea.

The exhibition is China’s latest attempt to convince global partners that the country is open for business and will import more products from around the world despite the simmering trade war with the US.

China International Import Expo (CIIE)

Tangawizi Blend

Strong Blend

Warming ginger blended with fine black tea.

Rich and powerful strong blend.

Made in Rwanda products were exhibited at the China International Import Expo (CIIE) early this November.

The six-day fair which closed on November 10 attracted more than 3,600 exhibitors from over 130 countries that attended.

The National Agricultural Export Development Board (NAEB) represented Rwanda accompanied by Utexrwa, C&H Garments both clothing companies and Urumuri handcrafts.

The expo came a few days after the Rwandan

The CIIE is the world’s first national-level expo themed on import, said President Xi, adding that the event shows China’s persistent stance on supporting the multilateral trading system and promoting the development of free trade.

The platform provided China’s closest allies an opportunity to show case their products and sale to over 400,000 customers who attended the fair.

Kigali inland dry port to ease trade Located 20 kilometres from the centre of Kigali City, the state-ofthe-art logistics hub developed by DP World Kigali will ease trade once it opens doors.

Loose Leaf Green Tea

Loose Leaf Gold Blend

Loose Leaf Everyday Blend

The best loose leaf green tea.

The best loose leaf black tea.

Great value black tea for everyday use.

Rwanda Tea Packers . P.O BOX 4834 Kigali -Rwanda . Tel: 0788 302 537 Email: accounts@rwandateapackers.com . website:www.rwandateapackers.com

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Nov - Dec 2018

The facility which will be East Africa’s first ever Inland Dry Port will be open this coming January, Sumeet Bhardwaj, CEO of DP World Kigali told local press recently.

The bonded facility is spread over 13 hectares features an Inland Container Terminal with modern warehousing capacity, a container yard, administrative and services buildings, parking areas and other facilities.

Among services to be offered include container handling, stuffing and de-stuffing, warehousing, storage and other cargo handling services. Imports

from overseas can also be routed through Kigali Logistics Platform for onward distribution to neighbouring countries of Uganda, Tanzania, Burundi and Eastern DR Congo.

According to DP World, once operations start they will tackle inland logistics problems, delays and cost by providing a one stop shop for all logistics requirements and cargo services.

Nov - Dec 2018

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Intiti M AG A Z I N E

Intiti

News Lead Story in brief

M AGA Z INE

knowledge and practical skills and create market linkages with potential players in the sector.

New growers and entrepreneurs interested in starting up essential oil businesses were also expected to be provided with better, deeper understanding of the industry as well as connection to potential buyers.

Experts meet to improve quality of essential oils Over 70 essential oil experts from Rwanda, USA, UK, France, South Africa and Zambia recently met in Kigali for two days to discuss ways of improving the quality of essential oils and build capacity of people engaged in the sector.

Dr. Nicholas Hitimana, Managing Director of Ikirezi Natural Products, a local company pioneering essential oil since 2005 and organiser of the workshop said that, the meeting provided a venue for the launching of “Made in Rwanda” - essential oil based insect repellent products.

Essential oils are aromatic substances extracted from plants and are used mainly in flavour, fragrance and pharmaceutical industries.

The workshop was intended among other things to build capacity of people who are already engaged in the sector, advance their

Made in Rwanda fair to target record numbers

The National Agricultural Export Development Board (NAEB) indicated in a statement that the development comes at the right time when they “value essential oils’ quality as a fundamental piece of its marketing strategy on the local, regional and global market.”

“The meeting provided a venue for the launching of “Made in Rwanda” essential oil based insect repellent products.”

Dr. Nicholas Hitimana

The workshop which concluded on 16th November 2018 was organised by Ikirezi Natural Products and Rutgers University (New Jersey, USA) in partnership with NAEB, International Union for the Conservation of Nature, The Rwanda Partnership (UK) and Clive Teubes Ltd (South Africa).

Nov - Dec 2018

says the expo is for local producers and industries to showcase their products and services in order to create confidence among buyers about the quality of what they have to offer.

Since launching the Made in Rwanda 2015 government has put in efforts to promote the initiative which have started to pay off as consumer demand for locally produced goods is increasing.

Ntagengerwa observes that local companies are also increasing production by producing affordable products unlike in the previous years when they were only producing high end goods.

The national exhibition of Made in Rwanda initiative to be held from November 28 to December 4, is expected to bring together 450 companies to showcase their products and services.

The fair in its fourth year has almost doubled the number of exhibitors from the initial expo.

Théoneste Ntagengerwa, the spokeman of Made-in-Rwanda initiative at the Private Sector Federation (PSF) said that more exhibitors and visitors are expected this year than succeeding years.

Previously, the Made in Rwanda expo in its first year attracted 270 exhibitors and 11,000 visitors, the second fair had 300 exhibitors & 49,000 visitors increasing to 426 exhibitors & 70,000 visitors from last year.

Sectors expected to exhibit their products and services include

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News in brief

agro-processing, manufacturing, textile, construction, furniture, ICT and service sector players among others.

“Made in Rwanda is gaining ground everyday with more companies increasing their production capacity and more clients buying locally produced products,” observed Ntagengerwa.

“We are seeing a local increase in production across the spectrum.

The number of companies involved in the campaign is increasing every year.

To attract more companies and visitors to this year’s Made-inRwanda fair, the Private Sector Federation which is the main organiser waived exhibition fees for companies to use expo stands and free entrance for expo visitors.

All this is intended to boost local producers and encourage buyers since the exhibition is regarded as a great marketing potential. PSF

The expo is however facing some challenges ranging from unlimited exhibition space to low perception of locally produced products.

Ntagengerwa said that organisers set a target of hosting 450 exhibitors but more companies wanted to come to the fair.

However, the expo grounds at Gikondo have limited space to have everyone who wants to exhibit.

Another challenge is one of the biggest to the initiative of Made in Rwanda which is the mindset that locally produced products are of an inferior quality than exported products.

“People think that locally made products are expensive and of low quality,” Ntagengerwa observes.

This is not true and people should drop this mentality by trying to consume these products to determine for themselves and one way is visiting such fairs to see different products.

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Intiti M AG A Z I N E

Intiti

News Lead Story Brief

M AGA Z INE

Kigali Innovation City to position Rwanda as continental tech-hub

Mr. Alain EBOBISSE (Right), CEO of Africa 50, paid a courtesy call to the Rt. Hon. Prime Minister Dr. Edouard Ngirente. They exchanged ideas on how to fast-track the implementation of the Kigali Innovation City (KIC) project, a joint programme between Rwanda and Africa 50.

After launching, Africa’s first electronic cross-border trade platform with the assistance from China’s Alibaba Group - the Electronic World Trade Platform (eWTP), Rwanda is continuing to prove to be one of the fastest growing economies in terms of technological advancement on the continent.

In a private partnership between the Rwandan government and Africa50 – a pan-African infrastructure investment platform, will build a “Digital Innovation Precinct”, including commercial and retail complexes, as part of Kigali Innovation City (KIC).

This infrastructure

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Nov - Dec 2018

investment platform founded by the African Development Bank (AfDB) and African states will serve as the continent’s Silicon Valley.

Projected to reach $2 billion the hub will host world-class universities, technology companies, biotech firms, commercial and retails real estate on 70 hectares of land located in Kigali’s Special Economic Zone.

Africa50 will invest $400 million into the project to “help boost the innovation ecosystem in one of Africa’s top knowledge cities,” the AfDB pledged during the recent Africa Investment Forum held in Johannesburg, South Africa.

Rwandan Prime Minister

“Kigali Innovation City will be an Africa-focused innovation hub and a holistic ecosystem of technology clusters. This innovative effort is the first of its kind in the continent.

It will have Pan-African development impact both in terms of economic and human capital.”

Rwandan Prime Minister Edouard Ngirente

Edouard Ngirente at the Africa Investment Forum said that this is an innovative effort, the first of its kind on the continent. It will have Pan-African development impact both in terms of economic and human capital.

“Kigali Innovation City will be an Africa-focused innovation hub and a holistic ecosystem of technology clusters. This innovative effort is the first of its kind on the continent. It will have PanAfrican development impact both in terms of economic and human capital,” the Prime Minister said.

For Rwandans, the project is expected to create over 50,000 new jobs and generate $150 million in ICT exports annually, as well as attracting over $300 million in foreign direct investment.

Africa50 will focus on the real estate portion of the project which includes building retail and commercial complexes estimated to cost $315 million. They will also work on the Digital Innovation Precinct which will house all the technology companies in KIC and residential facilities for the employees working for companies within the ecosystem.

News Brief

World Bank injects Rwf132B in Rwanda’s Education The World Bank Group recently announced a grant package of US$150 million (Rwf 132 billion) to provide Rwandans with access to primary education. The new grant was announced by the Bank’s Chief Executive Officer, Kristalina Georgieva during a visit in the country.

BUILD YOUR BODY STRONG

impressive track record saying, “the way funds are managed in Rwanda has encouraged the World Bank to maintain and strengthen its partnership with the country.”

We invite you to join our fun, warm and welcoming The Prime Minister community. Let us emphasized that Rwanda help you get strong, attaches great importance balanced & flexible to human capital as a vital – mentally and engine of economic growth physically and a key element for sustainable prosperity.

Prime Minister Édouard The study calls for a series Ngirente together with of reforms to strengthen Georgieva on November growthopp drivers, particularly Kicukiro-Sonatubes, Health Ministry 0783 024 832 Underlining human capital 10 launched the “Drivers of in the areas of innovation, Gakiriro-(Gisozi) Umukindo Center 0788 511 213 as one of Rwanda’s most Growth in Rwanda”, a joint integration, agglomeration valuable assets, Georgieva study between the Rwandan and competition.

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We invite you to join our fun, warm and welcoming community. Let us help you get strong, balanced & flexible – mentally and physically

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0783 024 832 0788 511 213

CLasses: Body Building | Yoga | Karate | Meditation | Running | Boxing | 11 Nov - Dec 2018

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Lead Story

M AG A Z I N E

Manufacturers of Plastic Products & PVC Pipes

Rwandan made goods starting to bite into import bill

Kicukiro - Gatenga, P.O. Box 3359 Kigali - Rwanda info@rwandaplasticindustries.com

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www.rwandaplasticindustries.com

Nov - Dec 2018

By Jejje Muhinde & Steven Nsamaza

Amahoro stadium now employees three workers.

Equipped with the passion to enterprise and some small savings Marie Grace Mukandoli quit her job in a local bank to start a fashion business in Kigali. She had little skills but lots of ideas and the urge to have locally designed clothes.

“We are slowly gaining customers because of the quality and favourable prices of our attires compared to some imported clothes,” Mukandoli says. Her designed clothes like men shirts cost about Rwf 20,000 or less depending on the fabrics used as compared to $45 (Rwf40,000) for import shirt from Europe, She explains.

She launched her own SME three years ago and now makes beautiful African Kitenge attires for women, men and children as well as bags. Her tailoring business located in Remera opposite

Mukandoli plunged into local clothing production at a time when the

Exports are up 69 per cent from $559 million in 2015 to $944 million in 2017. Total imports have decreased by 4 per cent, from $1.849 billion in 2015 to $1.772 billion in 2017.

Rwandan government was launching the Made in Rwanda campaign, seeking to boost production and consumption of locally-produced products through a deliberate robust awareness campaign and today it has gained momentum.

Statistics released this November indicate that Rwanda’s economy has witnessed a 36 per cent drop in its trade deficit since 2015 thanks to the Madein-Rwanda policy that has increased the country’s industrial output.

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Intiti M AG A Z I N E

Lead Story

Exports are up 69 per cent from $559 million in 2015 to $944 million in 2017. Total imports have decreased by 4 per cent, from $1.849 billion in 2015 to $1.772 billion in 2017.

civil servants to wear local designs at least every last Friday of the month can be one aspect but which will ensure they buy from local designers.

The minister observes that the policy is already showing results with a positive impact on both industrial output and the country’s trade balance.

The textiles industry shows 19 per cent increase, manufacturing activities are up by 8 per cent boosted by food processing activities with 15 per cent increase while manufacturing of chemicals, rubber and plastic activities grew by 8 per cent.

The idea to go private Mukandoli says comes from the government initiative to stimulate the domestic market in light to reducing trade deficit gap through ‘Made in Rwanda’ products.

Mukandoli says that importing raw materials and transferring them into finished products or good offers employment opportunities to Rwandans.

This is the way it empowers local businesses to produce homemade goods for local consumption and exports to foreign markets.

Not only Small and medium-sized enterprises like that ofMukandoli are raising the country’s output but more companies are increasing their production capacity and also international brands are starting local production. As companies loop into economies of scale prices are starting to fall while the local customer

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To compete in international markets local producers have been asked to enhance quality, upgrade products, quality packaging, and branding.

The drive is embarked to promote and to encourage more production of locallymanufactured goods to meet the local demand and reduce dependency on import goods.

base increases for local companies.

Felicien Mutalikanwa, the Chairman of Rwanda Manufacturers Association believes that the entrance into the country’s manufacturing sector by big companies like the German carmaker Volkswagen to assemble vehicles in Rwanda or local production of Heineken beer by Bralirwa are playing a significant role.

These are few examples among many.

Rwanda’s Private Sector Federation and the Ministry of Trade and Industry (Minicom) have steered a comprehensive Made in Rwanda campaign and adopted a Domestic Markets Recapturing strategy to combat issues faced by small and mediumsized enterprises (SMEs).

Such campaign initiatives are also meant to change the mindset of local consumers towards the consumption of locally made products to boost value addition along the value chain.

Some of these strategies implemented involve awareness campaigns to encourage local consumers to purchase these products.

Government is taking all available sessions to boost the consumption of locally made products and services.

Antoinette Uwituze who has also been in the same garment business for seven years believes that the market for Made in Rwanda fashion is available, what has to change is the mindset of the buyers to understand that they also have high-quality homemade products.

“We have the skills to produce quality women dresses, men’s shirts and children sweaters that can be exported,” she says.

Such campaign initiatives are also meant to change the mindset of local consumers towards the consumption of locally made products to boost value addition along the value chain.

The government should assist us so that we can participate in global exhibitions just like how it’s done by Egyptian and Middle East traders who come for exhibitions in Kigali.”

The minister of trade, Soraya Hakuziyaremye says that the implementation of this policy by small actions like recommending

Uwituze admits that this will create opportunities to deepen their market reach when SME’s start forming

partnerships with foreign companies or suppliers of raw materials so that they can produce enough to satisfy local demand and export.

To support SME’s like that of Uwituze and Makandoli as well as manufacturing industries, the government has adopted a policy to that effect.

This October during the official launch of Madein-Rwanda policy and brand, Minicom said that it is designed to help boost local industrial contribution to the economic growth while promoting locally made products at the global stage, which will reduce the burden of relying on imports.

The policy will, among other things will support local entrepreneurs get

access to raw materials and markets for their products.

According to Minicom, for the next seven years, the policy is expected to significantly narrow trade deficit by almost 450 million dollars annually.

The official launch of Made-inRwanda policy and brand, Minicom said that it is designed to help boost local industrial contribution to the economic growth while promoting locally made products at the global stage, which will reduce the burden of relying on imports.

To fully reap the benefits of the new policy government should continuously try to resolve the infrastructural and policy challenges that local producers face.

Among the major challenges is the high cost of production caused by access to raw materials, electricity, access to finance, limited skills, equipment, technology, and taxes.

Institutions are required to work together to tackle these impediments and create mechanisms that iron out every issue for a proper implementation.

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Intiti M AG A Z I N E

Intiti

One on One

Q & A WITH BHEKI MTHEMBU CHIEF EXECUTIVE OFFICER CIMERWA

M AGA Z INE

The Rwandan Government is currently implementing a ‘Made in Rwanda’ policy in order to address its trade deficit and drive private sector development. Since its implementation, how has CIMERWA benefited from this agenda?

First and foremost, it’s such a big deal for such a policy to be put in place and we are glad it is happening. Over the past 34 years we have had the pleasure of being the most sought out Cement Company by Rwandans and this really makes it more special as it means that the Government is promoting domestic consumption with such a policy - something we can’t take lightly but to soar with it as far as we aspire to mount. It also demands of us to be competitive in our customer value propositions.

Ultimately domestic consumption helps to reduce our trade deficit.

How can the local industry overcome the challenges that are constraining it from realizing its full potential visa-vis the government’s initiative to promote made in Rwanda products?

Well, the fact that the Government is on the local industry’s side is such an important thing for companies to get their hands dirty and find ways to join the wave while there is time so as to thrive because most of the time; when we slack we miss out on great opportunities that are right before us.

It’s high time that we all join forces and inspire others to participate and buy made in Rwanda products.

Do you think there’s a need for raising awareness perhaps to all Rwandans on the importance of prioritizing locallymade products?

There is indeed a need since most people mostly those in the urban settings who prefer to stay trendy with products outsourced from other countries as opposed to getting those made here. As CIMERWA Ltd and other big industries in Rwanda, we all have major role to play in prioritizing the development and the advancement of Small, Medium and Micro-sized Enterprises (SMMEs) as the catalyst to achieving economic growth and development. Of course there have been strides made but more can still be done.

As compared to internationally made competitors, what is one thing that gives CIMERWA an edge that Rwandans need to know about?

As mentioned above, having been around for a while now (34 years), we have understood what our customers need. CIMERWA cement has seen itself in most of Rwanda’s famous landmarks and infrastructure projects. That being said it is our heritage that makes us a trustworthy cement brand. We have then perfected our products such as CIMERWA 32.5N, CIMERWA 42.5N and CIMERWA bulk cement, a first of its kind that is made in Rwanda. Our products meet the world-class standards of performance and our operations are certified to the ISO 9001 listing for Quality Management Systems. These products have become staples to both small and large scale clients in the construction industry. In most of the country we have our vendors ready to offer after services when the need comes as well as take in queries making sure our clients are satisfied and in return stay loyal to us.

One on One

growth milestones and challenges you have faced when it comes to being a made in Rwanda brand?

‘Strengthening Rwanda’ being our brand vision has seen us achieve projects that range from big groundbreaking building projects to simple construction ventures. With this vision we have got to learn that we are a trusted brand. Another thing is that during my role as CEO, it has been an honor to continue the already existing activity of touching and changing lives of Rwandans in one way or another through our effective CSR activities in the communities we interact with.

CIMERWA being a made in Rwanda product, do you think brand/product differentiation is imperative for the company to achieve success, if so, what are some of the ways CIMERWA has curved its niche?

It is important to have one for the purpose of standing out, making a mark and also stay away from counterfeit products. We have done so by revamping our brand vision and continue to improve product quality as we aim to meet our company’s vision.

What do you envision come next year?

We want to introduce new product innovation and continue to drive our strengthening Rwanda agenda everywhere we operate and sell our products.

What is one thing you would want to leave our readers with?

To be open to trying to embrace the made in Rwanda products and give them a try, they will astound you as we go over and above to first understand your needs and then deliver goods and services you require with great mastery.

Given the time you started heading CIMERWA, what are some of the

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Intiti M AG A Z I N E

Lead Story Feature

Rwanda is stepping up financial support for major projects of its “Domestic Market Recapturing Strategy” through Climate Friendly Investment, as a new approach that is also targeting to upgrade the country’s manufacturing sector with environmentally friendly businesses.

The move is expected to reduce the country’s average annual import bill by almost 6% to recapture the domestic market with focus on three key sectors including construction materials, light manufacturing such as textile and garments with pharmaceutical products and the agro-processing industry.

The total funding is likely to reach about $442 million and allow the country to achieve

28 per cent annual export growth by 2020, according to the Rwanda’s Ministry of Trade and Industry.

The “Domestic Market Recapturing” strategy (DMRS), a roadmap released by the Rwandan Government in 2016 to guide the country’s advanced industrial manufacturing, is likely to see steady progress in industrial capability, smart manufacturing, innovation, as well as product quality and branding in line with the country’s target to increase its exports to a tune of 28% per year by end of 2018.

Rwanda’s current exports are dominated by traditional products including coffee, tea and minerals like tin, coltan, wolfram and cassiterite while the country imports mainly food products, machinery and equipment, construction

$442

million The total funding is likely to reach about $442 million and allow the country to achieve 28 per cent annual export growth by 2020, according to the Rwanda’s Ministry of Trade and Industry.

materials, petroleum products and fertilizers.

It is through the growth of industries that produce high quality goods for domestic use and export that Rwanda’s import bill will be diminished.

While private firms have been facing challenges in raising funds and suffering from heavy financial burdens, Rwanda’s Green Fund (FONERWA) a groundbreaking environment and climate change investment fund established in 2016 has embarked on financing projects with significant impact on curbing climate change while attracting private investments.

The Fund has mobilized around $100 million to date and is a leading example of the impact that well-managed climate financing can have.

However, some stakeholders in the private sector stress the need for serious sensitization programmes meant for local investors to understand the opportunities that are in the industrial sector through leveraging on the green fund.

Financing private sector initiatives The Chief Executive Officer of the Rwanda Private Sector Federation (PSF), Stephen Ruzibiza, says that local private investors have a lot to access within the green Fund.

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Currently, PSF is engaging with FONERWA and a limited number of local financial intermediaries to offer long-term loans to private businesses focusing on Nov - Dec 2018

join our fun, warm Intiti and welcoming community. Let us help you get strong, balanced & flexible – mentally and physically M AGA Z INE

Local private initiatives gain momentum with Rwanda’s Green Fund

By Aimable Twahirwa

BUILD YOUR BODY STRONG

environmental sustainability with a low interest rate which is fixed at 11.5 per cent. The current average lending interest rate for commercial banks in Rwanda stands at 17.58 per cent, according to the National Bank of Rwanda.

Jean Ntazinda, a consultant with the FONERWA Readiness Support Project observes that, the private sector in Rwanda has so far been left behind when compared to government entities in accessing the GCF financing mechanism.

“Although at the national level some private sector projects relating to adaptation got financed, there is a long way to bring the private sector on board due to lack of another entity accredited by GCF,” Ntazinda said.

Environmental observers agree on the need to refine mechanisms of unlocking climate financing for local private sector operators to be

involved and build more resilience to climate change effects.

Financing to private sector projects is still low according to Hubert Ruzibiza, the Chief Executive of FONERWA, the Fund has only had about five per cent of the funds accessed by the private sector, hence the need to involve more of the private sector in green economy and green businesses.

The first Africa Green Growth Forum in Kigali bringing together investors, policy makers and financial specialists from across the continent will emphasize and encourage private sector investment in green growth and improve the understanding and use of finance as a tool for climate resilience

Currently the Rwandan government is introducing several reforms to create possibilities for getting Foreign Direct Investment (FDI) and foster business partnerships

Feature

with the manufacturing that does not have an adverse effect on environment and climate change.

Therefore, scaling up and accelerating innovative approaches to climate finance from multiple sources, including the private sector has emerged as a key strategy to meet the goals of the Paris Agreement through long-term and predictable climate-smart investments.

The need for environmentally sustainable modes of production and a more efficient use of resources is becoming increasingly evident in boosting “Made in Rwanda” strategy.

Made in Rwanda is currently being developed into an ambitious policy that seeks to improve perceptions of Rwandan products within Rwanda and promote nascent industries, and boost productivity of exporting sectors across regional value chains.

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Intiti M AG A Z I N E

Lead Story manufacturing

S

CTS

SOLAR WATER HEATER EQUIPMENTS

UCTS

PVC TANKS AND PIPES

ODUCTS

ODUCTS

SPARE PARTS

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dabout) 0788777793 onatubes.com

dabout) 0788777793 sonatubes.com

QUICK - STEP LAMINATE FLOORING

SONATUBES Ltd was established on December 10th, 1976 and up to now the entire place around is named the SONATUBES Ltd was established on by December 10th,company’s 1976 and up to now the entire place around is name.

named by the company’s name. SONATUBES Ltd manufactures PVC Pipes with high quality standards SONATUBES Ltd manufactures PVC Pipes SONATUBES Ltdtechnical was established and offering different servicesand suchon as December Execution with high quality standards offering 10th,maintenance 1976 and upofto construction now the entireofplace is and wateraround different services such as; supply named by thetechnical company’s name. SONATUBES network extension; Study, assessment and evaluation Ltd for manufactures PVCdrainage Pipes with highSupply, qualityinstallation standards the quality of water system; Execution and maintenance ofGenerators construction and maintenance offering different technical services as Execution and of Electrical Motors,such and ofmaintenance water supply extension; andconditioners; of network construction of supply Air Supply, installation andwater maintenance network extension; Study, System assessment and evaluation for of Lightning Protection (LPS); Supply and Study,ofassessment andsystem; evaluation for theand the quality drainage Supply, installation installation ofwater Quick - Step Laminate Flooring and quality maintenance of Electrical Motors, Generators and of water drainage system; Air conditioners; Supply, installation and maintenance of Lightning Protection and System (LPS); Supply Supply, installation maintenance of and installation of Quick - Step Laminate and Flooring Electrical Motors, Generators Air and

conditioners;

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WATERPROOFING PRODUCTS

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Supply, installation and maintenance of Lightning Protection System (LPS); other technical services. Therefore, for more than 40 Supply and installation ofour Quick years of working experience, stock- Step has reached Laminate Flooring other technical about 5000 products andand we have enough big capacity of services. production. Meanwhile, SONATUBES Ltd industry other technical services. Therefore, than 40 received many Appreciation Awardsfor andmore Certificates years of working experience, reached from different Hon. and our Government Therefore, forMinisters more than 40 stock years has ofinstitutions about products andpromoting we have enough capacity for its 5000 contribution to Made inreached Rwanda working experience, our stock hasbig of production. Meanwhile, SONATUBES Ltd industry Program. about many 5000 Appreciation products and we have received Awards and enough Certificates bigdifferent capacity of Ministers production. from Hon. and Government institutions for its contribution to promoting Made in Rwanda Meanwhile, SONATUBES Ltd industry Program.

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Lead Story Horticulture

BELLA FLOWERS

Bella Flowers was established by the Cabinet Resolution of 12th November 2014 as a strategic investment aiming at fostering the development of the floriculture subsector in Rwanda and increasing exports of non-traditional and high value products.

Bella Flowers is part of the Flower Park projects developed by the Government of Rwanda as a strategic investment to boost the floriculture industry. The farm is situated at an altitude of 1550M above sea level, about 65km from Kigali International Airport, in the Rwamagana District, Eastern Province.

Bella Flowers started production in 2016 and currently has 20Ha producing 16 varieties of high quality roses for export to international markets. A further 20Ha expansion is under development; projected to be operational by February 2019.

The farm site location offers proven growing conditions for premium intermediate head size standard roses, with production yielding an average of 100,000 stems a day.

Export destinations, but not limited to Europe, UK, Russia, The Middle East and Australia.Apart from export, Bella Flowers is also represented by seven local partners charged with

the responsibility of ensuring that local customers are well catered for. These distributors are well spread all over Rwanda.

Our range of unique, vibrant and highly popular roses varieties come in various head sizes and lengths (from 4.2 cm to 5cm head sizes) - with globally recognized names such as Athena, Proud, Moonwalk, Espana, Furiosa, Prestige, Tacazzi, Nicoletta, New Orleans, Belle Rose, Revival and many more others. Bella Flowers invested in a good assortment of colors to meet clients’ needs and desires.

AFFILIATIONS AND SUSTAINABILITY Bella flowers regularly reviews and improves its global standards to maintain its standards in the floriculture industry. We have established programs that minimize water and non-

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renewable energy consumption as well as reducing chemical/ pesticides usage by embracing IPM techniques such as insect traps, physical insect barriers and introduction of beneficial insects.

Having started production in 2016, the company is already Global GAP certified. We are in the process of obtaining our Fairtrade Certification with MPS planned for the immediate future to enhance our Corporate Social Responsibility through fair play.

PERSONNEL MOTIVATION Bella Flowers currently maintains a workforce of 500

employees majorly from the local neighborhood. In a move to empower women in the surrounding community, a good majority of our workers are ladies.

Bella Flowers has established its name and respect for its continued excellence in the global market. Currently it is Rwanda’s leading grower and exporter of high quality roses with a specific focus of serving its customers, who recognize Bella Flowers as one of the foremost brands to do business with.

Bella flowers Tel: 0788302583 0784294092, 0788543956

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Intiti

Roofing Solutions

M AGA Z INE

S&H offering customised durable Hippo roofing products Made in Rwanda Hippo Roofing was launched in 2015 as the brand name of products produced

by S&H Industries Ltd, the company is the first of its kind in Rwanda to manufacture premium stone coated roofing tiles. It’s currently renowned as the only manufacturer of Made in Rwanda steel roofing tile products.

In 2013, Horizon Group Rwanda and Sisay Investment Ethiopia came together and formed a joint company, S&H Industries, a limited liability company focused on the manufacture of ceramic powder coated iron sheets under the brand name, Hippo Roofing.

Strategically located at the Kigali Special Economic Zone, Nyandungu, Gasabo District, S&H Industries launched its operations in October 2015 and is currently working an 8-hour clock shift with capacity to produce up to 1,200 pieces which is equivalent to

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about 6-7 tones.

S&H Industries is a pioneer manufacturer of premium stone coated roofing tiles in Rwanda, Ayele Demissie Yilma, the Chief Executive Officer of S&H Industries observes that, “no other local company is comparable in steel roofing tile business and we take the lead in the industry with our excellent reputation producing premium stone coated tiles.The company also produces pre-painted roofing tiles and corrugated sheets on customization.”

“We are confident that based on our know how, when there is demand from our customers, we are sure you can feel our differentiated modern technology and satisfaction,” emphasises Yilma.

The plant which is majorly automated employees 24 permanent workers plus frequent casual labourers who are hired on demand. S&H distributes 95% of Hippo Roofing Industries within the country and the rest is exported to neighbouring countries including Gabon,

HIPPO LIFE

HIPPO cover

Burundi, D.R. Congo, Uganda and South Sudan.

“Hippo Roofing uses a technology that coats the normal galvanized iron sheets with coloured ceramic stone chips from Italy which edifies the quality and the visual appeal of the sheets,” says Maru Seboka, the production manager at S&H Industries.

Unique and advanced new technology is used in the manufacture of Hippo ceramic powder coated iron sheets compared to the conventional galvanized aluminium iron sheets.

Brightly coloured ceramic stone chips from Italy and sprayed on the sheets making them more durable and sound proof.

Beautiful glossy finishing polish ensures the visual appeal is way above the normal coloured iron sheets as the ceramic powder comes in different colours like red, brown and black or a mixture of the three.

Yilma explains that, heat does not permeate the Hippo Roofs regardless of whether there is ceiling or not as an added

HIPPO Corrugated

advantage. “With the coating one would simply assume that Hippo roofing is heavy to lift or brittle which is not the case, our product is light and can be transported without the fear of damage unlike the clay roofing tiles.”

Interestingly, the company is one of its kind in Rwanda that produces stone coated iron sheets, other types include galvanized, alloy zinc, pre-painted as well as accessories.

Yilma gives an insight into the future of the company of whose focus will be expansion and serving the clients better in many ways. “Our five year plan is to grow into a double shift manufacturer and double the jobs we are currently offering,” he promises.

With the new technology, Hippo Roofing comes with a guarantee of 50 years unlike any other on the market. “Beyond selling the

Roofing Solutions

HIPPO PLUS

product, we offer technical advice on installation and any other queries and concerns our clients may raise,” he continues.

S&H industrial activities are in line with promoting Made in Rwanda, a program initiated and supported by the Government of Rwanda, putting locally manufactured brands at a competitive edge as opposed to being complacent and accepting of the low quality imports which spoil the market.

With gratitude to the government for the land and legal advice,Yilma says the vision of S&H Industries is to dress the country and the region with beauty from the bird eye view and offer the best quality roofing solutions for all. Hippo Roofing solution is widely being embraced for the roofing of both commercial and domestic buildings within the country over the last few years as people shift from the old noisy iron sheets which also heat up the houses.

HIPPO STONE COATED TILES Nov - Dec 2018

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Intiti

Wood work

M AGA Z INE

Wood work

ADARWA: Reaping fruits of collective hard work indirect jobs have been created

by ADARWA like transport operators, hardware shops, construction sector dealer among others,”

Rwanda, ADARWA wishes to see every Rwanda buying local products which are durable and the Cooperative selling beyond Rwandan borders.

ADARWA embarked on rebuilding itself in 2003 after relocating from Cyahafi in the City centre to Gisozi, its present day location.

As Kigali’s skies clear for the first light, men and women in overalls are already tilting on timber at lower Gisozi hill on the outskirts of Kigali, the sound of daybreak quickly turns to machines cutting into wood turning imperfect pieces of timber into smoother perfect objects.

The once isolated area popularly known as Gakinjiro bolsters with business activities of every kind giving a promise to Rwanda’s young wood industry. Gakinjiro is home to the country’s biggest furniture market and one of the Kigali’s busiest suburbs.

The numerous wood workshops have shaped the area to attract thousands of furniture buyers and other interest to related the furniture sector with clients from all around the city and across the country.

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The place was first used by ADARWA, a cooperative of furniture dealers when they were relocated from the city centre to set up their workshops which attracted other businesses.

ADARWA know from its French name, Action pour le Development de l`Artisanat au Rwanda was established by furniture dealers starting with only 15 members and has grown in number and size. Currently the cooperative has 157 members and their resources have grown from a mere Rwf500,000 capital to a multibillion venture with assets and hundreds of workshops.

Cyatwa Ngarambe, the Chairman of ADARWA explains that, the cooperative has grown significantly and besides creating jobs for carpenters, several other

Thadeé Twagirayezu, a member of the executive committee of ADARWA and one of the founders observes that working together in the cooperative has borne them fruits because most of their achievements have been realised working together.

“While working in the city centre we were still disorganised and when the city authorities brought the idea to relocate most of us resisted but after sensitizations and the benefits reaped we have come to appreciate,” Twagirayezu said.

Twagirayezu explains that they started by selling wood but proceeded to value addition, bought machines to prepare wood for construction and for other different uses. With the increase in business they continued to make furniture for serving various needs and markets.

Through the government policy of promoting locally manufactured products,

ADARWA has seized the opportunity to produce furniture and other wood related products which are 100% Made in Rwanda.

ADARWA has changed and improved life for its members as the Chairman boasts.

We also plan to do more for members starting with providing medical insurance for every member and his/her family.”

Members are also direct beneficiaries of the cooperative since each member pays a small contribution because the land belongs to the cooperative.

From this income, the cooperative has been able to construct a four-storey commercial building that it rents.

Twagirayezu observes that as much the cooperative has benefited from operating in Gisozi they are faced with a big challenge where they are not allowed to repair or build their workshops.

“The authorities have refused to allow us improve our workshops and infrastructure causing us losses.”

The workshops built in 2003 when they relocated are still the ones used which is among the major causes of fires that destroy their property and lorries delivering or picking material can no longer access the workshops because of poor infrastructure.

The Chairman of ADARWA calls upon government to look into their problems because even the land where they are not allowed to rebuild was the land given to them by Kigali city authorities and yet the cooperative doesn’t want to build permanent structures but only repair workshops.

To further boost Made in

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Intiti

SPORTS INOVATION

M AGA Z INE

SPORTS INOVATION

Limited sportswear inspires Coach to start local production Jejje Muhinde Allen Simms, came to Rwanda for a coaching opportunity to identify and train young athletes, on the ground he realized that there was another opportunity to make sportswear.

imported and part of this is second hand clothes.

Simms, 36 a retired former US professional jumper athlete who was a national champion in the triple jump in 2007 when he first arrived in Rwanda through an invitation by the national athletics body to coach, he also realized that it wasn’t his athletic skills that were only needed but business entrepreneurial skills as well.

He started a fashion design business in sportswear.

With the brand name Impano, derived from Kinyarwanda as talent or a special gift, Simms seized the opportunity to enter into Rwanda’s young clothing industry.

“I came to Rwanda to coach, to work with the Ministry of Sports in identifying young talents, on my first trip while visiting different athletes I realized they didn’t have quality shoes, no running attires, uniforms to really help them run fast or long distance,” explains Simms.

To overcome some of these

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Nov - Dec 2018

are a big inspiration, creating something people can feel free to perform any kind of movement without being restricted and without sacrificing comfort is what people want.

challenges, when Simms returned to his home in the USA he started correcting materials to donate to the young athletes, while making these clothes that is when he developed ideas of how he could start locally making sportswear.

“I carried out some research about producing quality sportswear, how to get raw materials and started Impano Sports a year ago,” He said.

Strategically located near the national stadium in Remera, Impano Sports is a new player in the active lifestyle apparel industry in Rwanda.Today, the company provides African inspired quality sports apparel designed specifically

for athletes and the active lifestyle community.

It also makes customized running attires, tees, polos, team gear and jerseys all produced locally in Kigali by local designers.The focus is on the active lifestyle market segment that participates in sports such as running, soccer, basketball, and athletics for both adults and children.

As the company is in its infancy, a primary target is the local market and later the East African region.

Simms says the decision to start up a sportswear is because the industry is untapped where a big percentage of sportswear garments on the continent are

“The second-hand clothing or ‘fake brand’ market is actually destroying the value of the industry on the continent. Impano is here to prove the notion that Africa cannot produce quality or do for self; Africa can and will,” he observes.

The government policy of supporting locally made products and Rwanda’s decision to stand up against second-hand clothing, Simms says is very impressive.

He believes that if American themselves don’t want to wear second-hand clothes why do they have to send them to Africa.

Supporting Made in Rwanda through different benefits and

incentives has inspired Impano Sports to compete with imported sportswear from countries like China.

The founder of Impano sports says that although there are challenges in the industry like lack of skills, high cost of production and low purchasing power, there are opportunities and the company plans to grow big in future by expanding.

Impano Sports plans are to focus on quality and affordable wear for the local market and may consider exporting or mass productions after acquiring bigger machinery.

The company imports fabrics from countries like Ethiopia, South Africa, China and India among countries.

Today Impano Sports employee more than 10 workers both directly and indirectly some of whom are young athletes.The company trains its employees as part of capacity building.

Simms says that sports and fitness Nov - Dec 2018

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Lead Story

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Regional

is way below the required $45 billion if the continent is to become a net exporter of agricultural commodities, replacing $110 billion in imports.

Africa attract investments to key projects

By Steven Nsamaza

The recently concluded Africa Investment Forum in Johannesburg, South Africa shows promising trends to the continent’s muscle to attract investments. About $47 billion in projects tabled for discussion during the Forum 49 secured funding worth $38.7 billion.

Over 1,900 participants from public and private institutions concluded a three-day transactionbased investment Forum in the South African capital. Held

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on November 7-9, the Africa Investment Forum 2018 was the first of its kind securing deals worth $38.7 billion.

The Forum wanted to catalyze investments into the continent through a unique marketplace platform designed to advance projects to bankable stages, raise capital, and accelerate the financial closure of deals.

Organised by the African Development Bank (AfDB) the conference highlighted solid projects and a wealth of opportunities ready for investors which were reviewed and transactions worth billions of dollars were sealed.

Akinwumi Adesina, President of

To develop and finance Kigali Innovation City, Africa50 and the Rwandan government signed a $400 million agreement, the project will help boost innovation ecosystem.

the AfDB said, “Africa is ahead of its time. Business as usual is no longer the norm…from now on it will be Business unusual. All is now set for global and regional investments to make a smooth landing into Africa. The Africa Investment Forum has turned the tide of investment into the continent.”

Two capital cities – Kinshasa and Brazzaville will be linked in the first road-rail bridge at a cost of $800 million. The deal was signed between AfDB, Africa50, and the governments of Democratic Republic of Congo and the Republic of Congo.

Investments, partnerships and commitments made during the inaugural Africa Investment Forum showed that the continent has come of age.

The projects tabled ranged in diversity from infrastructure, Energy, Transport and Utilities, Industry, agriculture, ICT and Telecoms, Water and Sanitation, Funds/financial Services, Health, Education, Hospitality and Tourism, Housing, and Aviation.

A total of 169 bilateral meetings took place in the Marketplace boardrooms. In addition, open marketplace B2B conversations went on throughout the three days.

Major highlights of the deals signed include; Accra Ai Skytrain, a $2.6 billion deal was signed between Ghana and South Africa.

$3.7 billion railway expansion and development project in South Africa signed will boost the continent’s transport and logistics sector.

Brass Fertilizer & Petrochemical Project worth $3 billion will help the construction and operation of a world-class petro-chemical facility.

With the continent’s vast agricultural potential, leaders in top agribusiness companies shared their thoughts on the future of the industry.

Currently, only $7 billion is invested in the sector which

Investments from the private sector are needed to create the adequate environment and enhance the emergence of locally owned agroprocessing industries.

The Forum heard that agribusiness will become the ‘new oil” on the continent predicted to reach US$1 trillion by 2030.

Attendees said Africa’s agricultural potential needs to be unlocked.

The 3-day marathon Forum brought together heads of states, government officials, the private sector, development finance institutions, commercial banks, and institutional investors such as sovereign wealth funds and pension funds.

To further exploit such platforms another kind of forum will be organised next November.

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STRENGTHENING RWANDA

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Lead Opinion Story

M AGA Z INE

Capitalizing on Africa’s Demographic Dividend a dramatic expansion. Today, 60% of Africans are younger than 25, and 41% are under the age of 15. By 2050, Africa’s youth population is expected to reach 840 million.

By Carl Manlan Africa is home to the world’s youngest and fastest-growing population. With as many as 20 million young people poised to join the workforce every year for the next three decades, the continent has an opportunity to shift the balance of local and global growth with a purpose: jobs.

But it is far from inevitable that it will do so.

For African countries to capitalize on this demographic dividend, the future workforce must be educated, trained, and have adequate employment opportunities.

Putting all the pieces in place will not be easy.

These are uncertain times for the global economy.

Trade tensions between the United States and China are threatening the integrity of global value chains, and Britain’s looming exit from the European Union has the potential to cause even more disruption. The International Monetary Fund’s October forecast warns that as historic economic drivers stall, global

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growth this year and next could fall to 3.7%, a decline of 0.2 percentage points from previous estimates.

But as this slowdown gets priced in by stock markets around the world, new drivers of growth will emerge. Africa is well positioned to become one of them.

According to the World Bank, six of the world’s ten fastestgrowing economies are in Africa. Intra-African trade might be the gateway to future local and global growth, with the continent’s burgeoning population forging new opportunities across borders.

Most significantly, Africa’s labor force is on the verge of

According to the World Bank, six of the world’s ten fastestgrowing economies are in Africa.

Intra-African trade might be the gateway to future local and global growth, with the continent’s burgeoning population forging new opportunities across borders.

But this massive pool of potential talent is a doubleedged sword. Despite strong GDP growth over the last ten years, the majority of young people in Africa could not capture economic opportunities. Furthermore, the African Union/OECD report Africa’s Development Dynamics 2018 highlights that if the underemployment trend continues, Africa’s young people will suffer the most. Failing to employ Africa’s young people fully could marginalize an entire generation and lead them down a path of disruption for which we may not be prepared. For countries to experience job-led longterm growth, the provision of quality opportunities in agriculture is vital. If that does not happen, and quality jobs remain scarce, the economic expansion of which Africa is capable will not happen.

In other words, African governments are facing

a deadline to match job growth with skills training.

Unfortunately, at the moment, few countries are addressing this challenge effectively.

According to the African Development Bank, the unemployment rate for young people in Africa is already double the rate for adults.

In fact, young people are being let down even before they start looking for work.

Too many primary schools suffer from crippling teacher shortages, for example, and gender discrimination prevents millions of girls from even attending high school. To overcome these shortcomings will require significant investments of political and financial capital.

Some leaders are moving in this direction. At the Paris Peace Forum (PPF), held earlier this month, African and global leaders gathered to discuss the powerful idea that international cooperation is the key to tackling global challenges and ensuring durable peace.

On the sidelines of the PPF, the focus fell on African youth. The AU-EU Youth Cooperation Hub, one of 119 projects selected to participate in the Forum, attended the meeting to discuss the AUEU Youth Agenda. Striving to involve young people across Africa and Europe in decisions that impact them, now and in the future, this initiative aims to showcase

strategies for bringing Africa and Europe together to address challenges such as the demographic dividend.

One approach to capitalizing on Africa’s demographic boom is to expand the availability of training initiatives that pair employers’ needs with African talent.

As a former fellow with the Ibrahim Leadership program, I can attest to the transformative power of toptier educational schemes and their value as incubators for job-related skills.

Africa’s success relies on its ability to harness its demographic dividend by equipping its youth with technological and innovative skills, which will be a catalyst for economic growth.

This includes training and agriculture-focused programs to absorb skills along the value chains that connect raw

Opinion

materials to industries and markets across Africa.

By 2030, one in every five people on the planet will be African. Because of its size alone, Africa’s labor force will have the potential to drive global growth for decades. But to do so, Africans must implement the necessary reforms today. As our demographic dividend matures, governments, institutions, and organizations must help position young people for success. If African countries can meet this challenge, prolonged economic growth – at home and abroad – will be the reward.

Carl Manlan is Chief Operating Officer at the Ecobank Foundation.

Copyright: Project Syndicate, 2018. www.project-syndicate.org

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Lead Sports Story

M AGA Z INE

Sports

Brexit plans may impact on Rwandan footballers to feature in English Premier League By jejje Mihinde As Britain continues to hammer a deal to divorce from the European Union, it will become more complex for local footballers in Rwanda to make it to the English Premier League.

The FA Premier League is one of the most cosmopolitan and paying football league in the world, with players from around the globe especially Africa wishing to ply their trade in England.

Some of the most talented African players, like Samuel Eto’o from Cameroon, Didier Drogba of Ivory Coast have ripped big from the league, today, it’s a wish for any local player if they got a chance to play in the Premier League.

However, while Britain is in process of leaving the EU by

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March next year, the road to England is becoming more complex and tighter.

to fulfill the same criteria as non-EU signings to be granted a work permit.

First, the upcoming drastic changes will make it difficult for Premier League clubs to sign players not only from European but African countries as any new signings. They will have

Footballers from out the EU must still obtain a work permit if they wish to play for English Football clubs, just like any other non-EU footballer who must successfully apply

for a Governing Body Endorsement (GBE) with the FA before the Home Office will consider issuing a work permit.

Since 2015, football players needed to have played in at least 75 per cent of their countries senior international matches over the previous two years to play in the UK. In the case of players aged 21 or under at the time of application, the period is reduced to one year, the aim is to make easier for young, outstanding talent to grow their game in the UK. For any Rwandan player, they can apply for a tier two or tier five work permit, that relevant tier depending on the grasp of the English language.

Eligibility for a GBE now depends on a national teams FIFA rankings, for Rwanda

“The FA have a plan in place to grant work permits for all foreign players coming to England after Brexit, in order to ensure the Premier League retains its popularity and status in terms of entertainment and competitiveness.” which is ranked 138 having a player signed for any 20 teams in the top Premier League is even harder.

The system has tightened and now only nonEU players who are internationally established at the highest level, and whose employment will make a significant contribution to the

development of their sports at their highest level, are allowed to play in the UK. The FA have a plan in place to grant work permits for all foreign players coming to England after Brexit, in order to ensure the Premier League retains its popularity and status in terms of entertainment and competitiveness.

However as part of that, clubs will be required to slash their quota of those start from 17-12, the goal is to create more opportunities for homegrown stars to prosper.

Alfred Martin Mugabo is the only Rwandan footballer who had joined the Arsenal FC Academy at the U13 but did not make it to the senior team instead he got released by the club in March 2014.

He played for Amavubi in FIFA Mexico U17 World Cup.

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Intiti M AG A Z I N E

Intiti

Book Lead Story review

M AGA Z INE

AFRICA’S BUSINESS REVOLUTION

HOW TO SUCCEED IN THE WORLD’S NEXT BIG GROWTH MARKET

There is a trillion-dollar opportunity to industrialize Africa, to meet rising domestic demand and create a bridge-head in global export markets A new book by McKinsey confirms that Africa is poised for economic acceleration, akin to the Asian boom.

While other geographies are seeing incremental growth, global companies that get in early and join the African champions shaping the right strategies, can sustain doubledigit profit growth over the next few decades.

In Harvard Business Review Press, Acha Leke, Mutsa Chironga, and Georges Desvaux detail the research that McKinsey & Company has done and share insights into Africa’s future growth prospects. The conclusions they draw are distilled from 3,000 McKinsey client engagements, in-depth proprietary research and interviews with 40 of Africa’s

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most prominent business and development leaders. The authors reveal how companies can better understand the African market and seize the opportunities for building profitable, sustainable businesses.

Major trends indicate Africa is poised for explosive growth Africa has a fast-growing, rapidly urbanizing population with big unmet needs. This means there is a trillion-dollar opportunity to industrialize Africa, to meet rising domestic demand and create a bridgehead in global export markets.

In addition, there has been a big push by governments and the private sector to close infrastructure gaps. There is continued resource abundance in agriculture, mining, and oil

and gas, with innovation and investment in these sectors unlocking new production on the continent. The rapid adoption of mobile and digital technologies could leapfrog Africa past many obstacles to growth.

Leke and Desvaux, both Senior McKinsey Partners and Chironga, an executive at Nedbank, one of South Africa’s largest banking groups, say: “With over 400 African companies earning annual revenues of US$1 billion or more, we can identify what works. The highly successful businesses are often African companies, but many are entrepreneurial firms with Western, Indian, or Chinese founders. The most consistently profitable businesses demonstrate a higher tolerance for risk, are eager to adapt their products, production and distribution for African consumers, and

Book review

commit to investing and building their businesses for the long-term.”

African success stories The book examines several examples of African businesses that have translated opportunities into enduring business value.

For instance, it shows how Nigerian conglomerate, Dangote Industries, industrialised to serve regional markets through import substitution and improved margins through vertical integration. South African retail giant, Shoprite, adapted its supply chain and distribution centres for local logistics. SABMiller created products for regional tastes and invested heavily in multiple markets and skills transfer. Technology driven start-up, Kenya’s M-Kopa, is providing mobile money financed off-grid solar energy kits.

The authors also study global companies which have succeeded in Africa for decades, like Coca-Cola, GE, and Total.

business in Africa requires a longterm approach and four essential practices:

1

Mapping an Africa strategy – setting a clear aspiration, prioritising markets, defining how to achieve scale and relevance and creating an ecosystem to thrive.

2

Innovating business models – truly engaging with customers, creating products and services to fulfill unmet needs, getting lean to drive down costs and price points, and harnessing technology.

3

Build resilience for the long term – riding out short-term volatility, diversifying portfolios, integrating up and down the value

Four imperatives to achieve long-term sustainable growth Leke, Chironga and Desvaux believe that building a successful

chain, understanding local context and engaging with governments.

4

Unleashing talent – developing skills in frontline workers, creating robust talent development processes and harnessing the power of women’s advancement.

Acha Leke says: “At the heart of these four imperatives is a commitment to doing well by doing good. We have had the privilege of meeting and working with many remarkable business leaders from around the world. What has struck us time and again is how many of them are driven by a deeper purpose. They look closely at Africa’s high levels of poverty; its gaps in infrastructure, education and healthcare, and its governance problems. But they don’t just see barriers to business – they see human issues they feel responsible for solving. They show us that contributing to the social and economic development of the countries within which their thriving businesses operate creates value for both shareholders and stakeholders.”

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Nov - Dec 2018

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Intiti M AG A Z I N E

Story

Intiti

Lead Story

M AG A Z I N E

Intiti M AG A Z I NE

Book review

OUR PRODUCTS ARE INHERENTLY STRONG. OUR PRODUCTS ARE INHERENTLY DURABLE. THIS IS EXPECTED. THE STRENGTH WITHIN OUR PRODUCTS & PEOPLE SETS THE FOUNDATION FOR TOMORROW. A TOMORROW OF JOY. A TOMORROW OF PROGRESS. A TOMORROW OF PROSPERITY. A TOMORROW OF LASTING LEGACIES. THIS IS WHERE OUR REAL STRENGTH LIES. OUR STRENGTH IS IN OUR GUARANTEE. OUR STRENGTH IS IN OUR NAME, STAKEHOLDERS, STAFF, COMMUNITIES AND OUR CUSTOMERS. OUR STRENGTH IS IN EVERYTHING WE’VE BEEN DOING SINCE 1984.

FOR TODAY & TOMORROW. TOGETHER, WE ARE SETTING THE FOUNDATION FOR A STRONGER AND BOLDER RWANDA, WITH OUR OWN SIMA NYARWANDA. TOGETHER, WE ARE STRENGTHENING RWANDA. THIS IS OUR PLEDGE TO YOU.

Agriculture success Climbing beans is regarded as one of the most successful agricultural innovations in recent times and a major breakthrough in the home grown solutions in Rwanda.

Partner with to tell the Made in Rwanda story.

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