CEO KAMANZI JOINS RWANDA MINING ASSOCIATION FOR ITS GENERAL ASSEMBLY
Kigali, August 01, 2024 – RMB CEO, Francis Kamanzi, joined the Rwanda Mining Association's General Assembly to discuss the implementation of the new mineral tax law, the law on mining and quarry operations, and the introduction of a minimum living wage for miners. The assembly also explored the readiness to integrate INKOMANE, a digitalization platform for managing mine workers, taxation, traceability, and inspection in the mining sector.
The assembly was attended by mining operators, the executive committee of the Rwanda Mining Association, a representative from FECOMIRWA, the Rwanda Extractive Industry Workers Union, the Assistant Commissioner in charge of the Debt Management Division from the Rwanda Revenue Authority, and a representative of the Private Sector Federation. The General Assembly provided a platform for members to discuss a range of issues aimed at enhancing the sector's performance.
Malick Kalima, the Chair of the Rwanda Mining Association, lauded the progress towards the sector’s development and expressed the need for continued government support to find lasting solutions to the remaining challenges.
Presenting on the issue of establishing a minimum living wage for miners, the Secretary General of REWU, Andre Mutsindashyaka, shared findings from a comprehensive study on miners' living conditions. The study revealed that 69% of mining workers are paid in cash, 28% are paid through financial institutions, and 3% are paid via Mobile Money. Additionally, 61% of mining workers are dissatisfied with their wages, while 53% of those paid based on productivity can go up to seven days without receiving any payment, often going home empty-handed.
Leonidas Kabandana, who heads a mining company in Gakenke District, stated that although there are issues in the sector, many companies operate well and prioritize miners' social and economic welfare. He said, “For example, in Gakenke, some companies pay miners more than 2000 RWF per day, showing that we are making efforts. Additionally, it is difficult to find someone to work for you without knowing what they will gain because the cost of living today is very high, and miners also need to provide for their families.”
The Chair of Rwanda Mining Association, Kalima Jean Malic, mentioned that the idea of a minimum wage is being considered, and there are ongoing discussions on how to better support workers in this sector, with another meeting planned on this topic.
In his address to the assembly, CEO Kamanzi appealed to mining operators and other stakeholders to foster collaboration and build the capacity of those employed in mining. Kamanzi emphasized that given the lucrative nature of mining businesses, the sector must significantly spur the country's economic development and benefit those working in the sector. He also called for the urgent resolution of issues in the mining sector, emphasizing its crucial role in the country’s development. Kamanzi stressed that nothing is insurmountable as long as association members embrace efforts to professionalize and modernize the sector. He urged all mining operators to see RMB as a reliable partner and companion in driving towards a more competitive and wealth-creating mining industry.
According to GAYAWIRA Patrick, Assistant Commissioner in charge of the Debt Management Division at RRA, the new mineral tax law is timely and poised to expand the taxation base from the mining sector, thereby increasing revenues from mining operations. The law also incentivizes mineral value addition and aims to transform the country into a mineral processing hub. In addition to benefiting taxpayers under this new law, the government will also gain significantly, as a large portion of those working in this sector were previously not paying taxes.
The General Assembly also explored ways to integrate a system named Inkomane that’s aimed at digitizing the mining sector especially in managing mine workers, paying taxes, and inspection.
Members of Rwanda Mining Association during the general assembly
RMB CEO, Francis Kamanzi, delivering his keynote address during RMA's general assembly
Jean Malick Kalima, the Chairperson of Rwanda Mining Association