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Political parties grow healthy appetite for large investments

Tuesday January 15 2019
RPF

RPF and allied parties during a campaign for parliamentary elections. PHOTO | FILE

By RODRIGUE RWIRAHIRA

The country's political parties are gaining an appetite for investment, with the Social Democratic Party (PSD) being the latest to commission a multimillion state-of-the-art complex to house its headquarters, while also investing in other commercial buildings.

So far, the Rwanda Patriotic Front (RPF) leads in having shares in several businesses through Crystal Venture Ltd.

Jean Crysostome Ngabitsinze, a member of the political bureau of PSD said the party plans to start new business ventures and will tap into their assets, which are worth around Rwf200 million, to generate more money.

“We have agreed to construct a conference hall and a commercial building. We have gone through the blueprint and the feasibility study of the project, but we are yet to find out the actual cost of the investment since we are still making modifications.

“The building will be located in Gahanga sector. Our financing models include either selling land we own in the same district or calling party members and other willing citizens to be shareholders in the project,” he said.

Mr Ngabitsinze who doubles as the chairman of the parliamentary standing committee in charge of public accounts, added that while regular contributions from members of the party are not enough to undertake such a big project, they will consider other funding options.

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However, some parties consider investing in business vestures as a derailment from the party’s main role of advocating for political, social and economic change.

“We don’t think it’s proper to go into business as a party, especially when you are in power, because it can be mistaken for political influence. Being a leading party and doing business gives you a competitive advantage,” said member of parliament and president of the Democratic Green Party of Rwanda Frank Habineza.

The laws regulating functions and activities of political parties in the country do not deter or prohibit parties from doing business, although it cautions them against soliciting funds from unknown donors according to Oswald Burasanzwe, the executive secretary of National Consultative Forum of Political Organisations.

He added that parties that garnered over five per cent of national votes in presidential or parliamentary elections are entitled to a portion of the national budget, which they can invest in businesses.

RPF has been investing in businesses for the past 24 years through Crystal Ventures Ltd, with a portfolio ranging from hospitality, real estate, beverage, mining, construction, security and aviation.

Last year, the party inaugurated Intare Conference Arena in Rusororo, a mega complex which serves as the party’s headquarter and multi-purpose halls.

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