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RR RUEHWEB

DE RUEHLGB #1016/01 3100720
ZNR UUUUU ZZH
R 060720Z NOV 07
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC 4873
INFO RUEHNR/AMEMBASSY NAIROBI 1063
RUEHDR/AMEMBASSY DAR ES SALAAM 0999
RUEHJB/AMEMBASSY BUJUMBURA 0185
RUEHKM/AMEMBASSY KAMPALA 1756
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RUEHDS/AMEMBASSY ADDIS ABABA 0140

UNCLAS KIGALI 001016 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR AF/C 
DEPARTMENT PASS USTDA: EEBONG 
DEPARTMENT PASS USTR: WJACKSON 
DEPARTMENT PASS COMMERCE: RTELCHIN 
DEPARTMENT PASS OPIC: BCAMERON 
ADDIS FOR LISA BRODEY 
 
E.O. 12958: N/A 
TAGS: EFIN ECON PGOV EINV ENRG ETRD EPET BTIO RW
SUBJECT: RWANDA MONTHLY ECONOMIC REVIEW 
 
 
TECHNOLOGY NEWS 
----------------------------- 
¶1. IT Summit:  Rwanda hosted the African Heads of State Connect 
Africa Summit October 29 and 30.  Six African presidents and 
corporate executives attended.  The summit's goal was to accelerate 
broadband and wireless connectivity in Africa.  Dr. Hamadoun Tour, 
Secretary General of the International Telecommunication Union, 
 
SIPDIS 
declared that this conference would be a "yard stick for rolling out 
indispensable activities" to connect Africa (septel will detail the 
program and results of the summit). 
 
¶2.  More IT Expansion: The Rwanda Information Technology Agency 
(RITA) awarded the South African company Allied Technologies 
(Altech), through its Rwandan subsidiary Altech Stream Rwanda, a 
license to deliver broadband internet access services in Rwanda. 
Altech expects its network to be operational in Rwanda by early 
¶2008.  RITA also awarded Altech the right to install its own 
satellite earth-station for direct connection to the Web. 
 
¶3.  Libyan Firm Wins Rwandatel Bid:  LapGreen Networks won a tender 
for USD 100 million for 80percent of Rwandatel, the national-owned 
fixed line, mobile phone, and internet provider.  LapGreen, a Libyan 
company, edged out Vodacom Group of South Africa (whose bid was USD 
80 million) as well as Celtel of Uganda and the Democratic Republic 
of Congo, V-Tel holdings of Jordan, Bit Map Limited of Singapore, 
and Rwanda's R-com (whose bids ranged between USD 50 and 60 
million).  The Social Security Fund of Rwanda owns the remaining 20 
percent of Rwandatel's shares.  LapGreen committed to invest USD 317 
million over the next 15 years, including USD 87 million its first 
year of operation.  The company intends to initiate a borderless 
service between Rwanda and Uganda without roaming charges; it 
acquired Uganda Telecom last year. 
 
¶4.  One Laptop Per Child:  During a meeting in New York on the 
margins of the United Nations General Assembly Meeting, Nicholas 
Negroponte, chairman and founder of the One Laptop Per Child (OLPC) 
Group and President Kagame announced the GOR will buy laptops from 
the new sales promotion scheme 'Get 1 and Get 1.'  In fact, Kagame 
committed Rwanda to buy two laptops instead of the required one to 
receive one for free from OLPC. 
 
NEW LOANS 
----------------- 
¶5.  New Power Loan: The World Bank provided the Government of Rwanda 
(GOR) with a USD 25.4 million loan for increased generation of 
electricity.  The projects to be funded include installation of 
three heavy fuel generators in the outskirts of Kigali expected to 
produce 20 megawatts (MW) of electricity and light up five (out of 
30 total) districts by the end of 2008. 
 
NEW INVESTMENT 
-------------------------- 
¶6.   Brussels Air Adds Flight: The Rwanda Civil Aviation Authority 
granted Brussels Airline (SN) an additional flight between Kigali 
and Brussels, increasing the airline's weekly flights to three 
(Tuesday, Thursday and Saturday).  SN remains the only carrier 
offering direct flights to Rwanda, with no immediate prospects for 
other carriers to begin service to Kigali.  The new flight, which 
will go into service in December, also reflects the growing demand 
for direct access to international air connections to Europe. 
 
 
¶7.   Dubai World Comes to Rwanda:  Dubai World, a major holding 
company based in the United Arab Emirates (UAE), signed on 
Memorandum of Understanding with State Minister for Commerce Vincent 
Karega on October 15.  The MOU commits Dubai World to invest USD 230 
million in luxury hotels and residential estates in Kigali, near 
Ruhengeri, and Nyungwe, making it one of the largest foreign 
investors in the country.  Construction is scheduled to begin 
mid-2008 and be completed by 2010. 
 
¶8.  Bio-gas Powered Beer Production: Biomas Renewable Energy Rwanda 
(BRER), a privately held Rwandan company announced plans to develop 
a USD 3 million bio-gas plant to power Rwanda's largest brewery, 
BRALIRWA.  Owners Michael Munyaneza and Andrew Kanyanya licensed 
technology from German firm BMK in Kampala.  BRALIRWA, which 
produces alcohol and carbonated beverages, signed an agreement with 
BRER for the construction of a one MW bio-gas plant at its brewery 
site in the western province.  According to the agreement, BRALIRWA 
will consume both electricity and gas generated from the plant. 
Rwanda's utility company, Electrogaz, also expressed interest in 
purchasing energy from BRER.  The plant will also provide organic 
manure to be used as fertilizers at nearby farms. 
 
MACROECONOMIC INDICATORS 
--------------------------------------------- - 
¶9.  Drop in Poverty Rate: Since 1994, Rwanda's GDP has grown at a 
steady 6 percent and its household poverty rate has dropped from 70 
percent to 57 percent.  Last week, the Ibrahim Index, a new scale 
that measures African governments on security, transparency, human 
rights and economic opportunity named Rwanda the most improved 
sub-Saharan country over the past five years.  The Ibrahim Index is 
a project of Mo Ibrahim, a Sudanese business mogul.  The survey was 
carried out by Harvard University academics using data from sources 
such as the United Nations Development Program and Transparency 
International. 
 
ARIETTI