MIRA INFORM REPORT

 

 

Report Date :

13.06.2013

 

IDENTIFICATION DETAILS

 

Name :

REGIE DES PRODUCTIONS PEDAGOGIQUES RPP

 

 

Registered Office :

Avenue du 18 septembre, Bp 3118 Bujumbura

 

 

Country :

Burundi

 

 

Date of Incorporation :

02.01.2008

 

 

Com. Reg. No.:

67264

 

 

Legal Form :

"SP" Public Company

 

 

Line of Business :

The RPP is a printing house engaged in printing of school books and children's books.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Status :

Undetermined

Payment Behaviour :

--

Litigation :

--

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Burundi

C2

C2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

BURUNDI - ECONOMIC OVERVIEW

 

Burundi is a landlocked, resource-poor country with an underdeveloped manufacturing sector. The economy is predominantly agricultural; agriculture accounts for just over 30% of GDP and employs more than 90% of the population. Burundi''s primary exports are coffee and tea, which account for 90% of foreign exchange earnings, though exports are a relatively small share of GDP. Burundi''s export earnings - and its ability to pay for imports - rests primarily on weather conditions and international coffee and tea prices. An ethnic-based war that lasted for over a decade resulted in more than 200,000 deaths, forced more than 48,000 refugees into Tanzania, and displaced 140,000 others internally. Only one in two children go to school, and approximately one in 15 adults has HIV/AIDS. Food, medicine, and electricity remain in short supply. Less than 2% of the population has electricity in its homes. Burundi''s GDP grew around 4% annually in 2006-12. Political stability and the end of the civil war have improved aid flows and economic activity has increased, but underlying weaknesses - a high poverty rate, poor education rates, a weak legal system, a poor transportation network, overburdened utilities, and low administrative capacity - risk undermining planned economic reforms. The purchasing power of most Burundians has decreased as wage increases have not kept up with inflation. Burundi will remain heavily dependent on aid from bilateral and multilateral donors - foreign aid represents 42% of Burundi''s national income, the second highest rate in Sub-Saharan Africa. Burundi joined the East African Community in 2009, which should boost Burundi''s regional trade ties, and also in 2009 received $700 million in debt relief. Government corruption is hindering the development of a healthy private sector as companies seek to navigate an environment with ever changing rules.

Source : CIA


REGISTERED NAME & COMPANY SUMMARY

 

Regie des Productions Pedagogiques RPP

 

 

ADDRESSES:

Main Address:                             Avenue du 18 septembre, Bp 3118

Zip code/City:                              Bujumbura, Burundi

Telephone:                                  +257 22 22 26 31

Mobile:                                       +257 77 75 16 85

 

 

Profile

Line of Business:                         Printing

Industry Division:                         Manufacturing

Industry-code (NACE):                 1812 Other printing

Banks:                                        Not disclosed.

Employees:                                 unknown

 

CNPJ:                                         -

 

DIRECTORS/MANAGEMENT

 

Board of Directors:

General Director                          SalvatorNizigiyimana

Chief Administration Officer           GezgezKasesa (gkasesa@yahoo.fr)

 

NEGATIVE INFORMATION

 

Public information:

-

 

PAYMENT INFORMATION

 

Import and Export:

-

 

 

Payment history:

No experience on record. The company did not pay the annual fees for the registration with the Chamber of Commerce. It is not clear whether this was because of financial problems or because they were no longer interested in being registered. There are also many reports about financial difficulties and a looming bankruptcy.

GROUP STRUCTURE & AFFILIATED COMPANIES

 

Owners/-s:

- Name(s) of the sharreholder(s) are not available.

 

FINANCIAL INFORMATION

 

Financial information:

There are no accounts available.

 

FOREIGN EXCHANGE RATES

 

Exchange rate:

US$ 1,00  =  ‘BIF 1.538                -  Official rate on 12.06.2013

 

ADDITIONAL INFORMATION

 

Main Activities:

The RPP is a printing house engaged in printing of school books and children's books.

 

Operations & branches:

At the address, Avenue du 18 septembre, Bp 3118, Bujumbura, we find the companies head office.

 

NOTES & COMMENTS

 

Untill 2012 was subject matter registered with the Chamber of Commerce Burundi:

Register number: 67264

Date: 02.01.2008

Legal form: "SP" Public Company

 

The registration was reportedly discontinued due to not paying the annual fees.

 

When contacting the company (General Director: SalvatorNizigiyimana), they declined to provide any information by phone. As per their request we have sent an email requesting further details. So far we did not receive a response. Should we receive more information in the coming few days, then we will send you an update.

 

News

The Minister of Basic and Secondary Education, Education trades, Training and Literacy, Mr SeverinBuzingo was invited on Tuesday the Senate to answer questions relating to the recovery of RPP (governed educational productions) that unknown number of difficulties, according to senators. Because of these difficulties, the company was forced to reduce staff size. This reduction is carried out in accordance with the law and on the basis of objective criteria, such as representatives of the people. At the end of this session, senators recommended that the government make an effort to repay the debt over a billion Burundian francs which he owes to the public company. They also recommended that the government arrange for the audit to clarify the financial and organizational situation of the RPP to find solutions to its problems. Instead of being privatized as any company in bankruptcy, senators proposed that it be transformed into a joint venture with a view to its recovery. In this case, the transaction would be in the form of ownership with a preponderance of the state so that it pays to do so. According to the Minister Buzingo the idea of ​​audit is to support, but this operation requires funds that are not yet available. The last audit took place in 2009 when the RPP increased from personalized administration of the State to the public company. In the meantime, he should be encouraged to persevere it. As senators, the Minister in charge of Basic Education commends the company for its secrecy tests and national competitions. Minister Buzingo promised to submit to the Council of Ministers any questions regarding the RPP. He still gave some relief proposals as senators asked him as a person to make proposals to the Council of Ministers. In addition to reimbursement when resources permit, he suggested other ways out, among other exemption of raw materials, integrating the RPP editing component as claimed in order to diversify its operations, the processing of this a joint venture company in lieu of its privatization, the integration of the reference rate, the agreement monopoly privilege for the needs of the state as the production of identity cards and other cards. For him, the privatization would be the last resort, but the decision will be taken by the Council of Ministers.

Although there is no point to his comical end, even if it comes to develop sophisticated new hyper machine, the board of educational productions, RPP, is living its last days. As he did for the textile complex Bujumbura, the People's Bank and other companies, the CNDD-FDD is ready to sacrifice another public company at the altar of inassouvissables appetites of the ruling party leaders. There is great concern among dozens of workers of this company.

Last week, the CEO of PPR, DéogratiasRurimunzu announced to staff in the month of June, it will much technically unemployed for six months. Salaries will also be frozen from this period as the treasury of the company is more cautious than ever.

 

The bankruptcy announcement surprised the staff. "It is an artificial bankruptcy since the direction of the company has to spend nearly half a billion in the purchase of new machines that are out there and that does not even work, we believe that the company is mismanaged "said the representative of the staff of the RPP. Management refuses to answer these charges. Mum's the word.

But according to several sources, the company is also in the process of being declared bankrupt to be taken by individuals. But in the meantime, the staff will have been on the street as was the case for COTEBU. Businessmen from Mauritius just completed a visit to the RPP. They are approached as potential buyers.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.27

UK Pound

1

Rs.91.16

Euro

1

Rs.77.50

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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