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The East African : June 30th 2014
< ALLURE OF EUROBOND They have advantages but are risky, needing prudent economic mangement Pages 32-33 JUNE 28 - JULY 4, 2014 theeastafrican.co.ke RWANDA RWF900 KENYA SH100 TANZANIA SH1700 UGANDA SH2700 BURUNDI BIF2000 WE CAN FEED OURSELVES > AU Chairperson Nkosazana DlaminiZuma on Africa’s potential Page 15 No. 1026 DIPLOMACY Friends again? Rwanda, South Africa seek truce Both count≥ies expelled diplomats ove≥ accusations that Rwanda had b≥eached the sove≥eignty of South Af≥ica FULL REPORT, PAGE 3 Suspension of airlines triggers increase in fares FIASCO: Withd≥awal of Ai≥ Uganda’s licence th≥ows ≥egion into disa≥≥ay By JULIUS BARIGABA The EastAfrican T he cost of air travel within the region has risen following the suspension of operations of three airlines by Uganda’s Civil Aviation Authority (CAA). Barely two weeks after Air Uganda was ground- ed pending reapplication for operation certificates from the regulator, air ticket prices have more than doubled on some routes and queues at bus terminals are longer. The Cabinet and parliament have expressed con- cern over the suspensions that have led to cancelled trips and passengers seeking alternative means of transport. The Civil Aviation Authority suspended Air Ugan- da, Transafrik Uganda Ltd and the Ministry of Defence-owned Uganda Air Cargo Corporation, on June 17. The airlines were suspended after a review of their systems, structures and operations by the International Civil Aviation Authority (ICAO). Air Uganda chief executive officer Cornwell Mu- leya told The EastAfrican that his company last year passed the International Air Transport Association (IATA) operation safety audit. FULL REPORT, PAGE 12 INSIDE RWANDA TODAY South Africa is considering relocating Gen Nyamwasa and a few more people deemed “enemies of the state” by Kigali to a third party country to restore diplomatic ties, a source privy to the matter said. Kigali maintains that Pretoria should stop giving protection to its perceived enemies, mainly Gen Kayumba Nyamwasa and other members of Rwanda National Congress (RNC) whom it accuses of plotting to overthrow a legitimate government using violence. Banks set to lower interest rates as inflation dips Last week, BNR lowe≥ed its key ≥epo ≥ate to 6.5pc f≥om 7pc — the fi≥st ≥eduction since June 2013 By BERNA NAMATA The East African R wandan borrowers could benefit from reduced lending rates in coming months, as commercial banks diversify their sources of deposits. With low inflation and increased liquid- ity in the market as government resumes spending, banks could lower their lending rates. Rwanda’s inflation continues to be low and stable, decelerating to 1.9 per cent in May from 2.7 per cent in April 2014 and 2.43 per cent in January 2014. Last week, the National Bank of Rwanda (BNR) lowered its key repo rate to 6.5 per cent from 7 per cent — the first reduction since June 2013 — to encourage banks to lend to the private sector to stimulate economic growth in the country. The banks are likely to respond to re- duced government borrowing from the domestic market, and interest rates on Treasury bills have fallen to between 5.1 per cent for one-month instruments and 6.5 per cent for maturities of one year, from a high of 12 per cent in April last year. FULL REPORT, PAGE 5 As Rwanda ma≥ks 20 yea≥s of Libe≥ation, the ≥uling RPF pa≥ty has had its fai≥ sha≥e of good and bad publicity, but it can still claim all the c≥edit fo≥ tu≥ning a≥ound a count≥y left in tatte≥s by a genocide and a civil wa≥, to one that is touted as a model fo≥ developing count≥ies.
June 23rd 2014
July 7th 2014