The evening of February 11 2009 marked the beginning of quarterly working dinners between the Private Sector Federation (PSF) and the Trade and Industry (MINICOM) Ministry at Prime Holding conference Hall, Kimihurura.

The MINICOM minister, Hon Monique Nsanzabaganwa was the Chief Guest. The dinner was well attended by top leaders of PSF, selected business leaders and representatives of government private-sector-facing institutions.

The PSF Chairman Mr. Robert Bayigamba led his team of Board Members together with the PSF CEO, Mr. Emmanuel Hategeka. Present at the dinner also were among others; MINICOM Permanent Secretary Anthony Ruvebana and RDB Deputy CEO incharge of Business Operations and Services, Claire Akamanzi.

Referring to Vision 2020, the minister said Rwanda aspires to have majority of its citizens graduate to middle income level, targeting to upscale the per capita income to USD900. She said the government is counting on the private sector to enhance this, and is doing everything possible to make the investment climate favourable. She acknowledged that private sector is facing challenges in accessing cheaper long term loans to do business. She however challenged the private sector to make use of the financing options the government has put in place in Development Bank of Rwanda and the guarantee fund in the National Bank of Rwanda.

The trade minister hailed the PSF program of Mini-RIGs, saying it will boost investments in districts. She urged PSF to expedite the process of transforming them into real investment entities to start reaping the numerous economies of scale. “People’s disposable incomes are generally low and so is their purchasing power. Pooling resources to invest in sizeable ventures is quite critical,” she said.

Following President Paul Kagame’s remarks about poor customer care in the country during the Heroes’ Day cerebrations at Amahoro stadium, a 2-year nationwide customer care and service delivery campaign is being promoted by lead institutions; Rwanda Development Board (RDB), PSF, Rwanda Workforce Development Authority (WDA) and Local Government Ministry (MINALOC). Minister Nsanzabaganwa expressed full government support to the campaign. She cautioned, however, that a well thought out long term strategy is a prerequisite. PSF, the only employers’ organisation in the country is squarely charged with enhancing a vibrant private sector, but at the same time challenged by limited financial resources to implement private sector development programs.

Recently, during the second presidential investors’ roundtable, the federation floated a request to His Excellency President Kagame to takeover the fee-based business registration services in the country, and the request was agreed in principle. Minister Nsanzabaganwa said her Ministry was working with relevant institutions on modalities of how this will done taking advantage of a nationwide PSF BDS network. The minister also observed that although the economy has registered impressive growth over the last couple of years, it is a kind of growth, driven by increased agriculture output with less value addition. In her own observations, most industries in Rwanda need recapitalization to increase their scale of production, better business management skills, and competitive marketing strategies in branding and packaging. “Government is ready to partner with private sector in all issues concerning competitiveness” she affirmed. PSF leaders also had the opportunity to express their concerns to the Hon Minister. Mr. Jacques Rusirare, the President of the Chamber of Industry who is also the Managing Director of Ameki Colour, told the minister that the issue of relocating Gikondo Industrial Park (a wetland) has dragged on for so long. He said today industrialists are in dilemma and unable to grow their investments. The minister said government institutions concerned should expeditiously take a lead role in solving the Gikondo Industrial Park issue and other issues that generally affect industrialists in the country. Among other concerns raised by PSF leaders and business leaders present was that government needs to come up with a holistic strategy to support development of local businesses before they are “swallowed up” by the ever increasing regional and international competition which includes dumping.