MIRA INFORM REPORT

 

 

Report Date :

07.09.2013

 

IDENTIFICATION DETAILS

 

Name :

SOFARU SARL

 

 

Registered Office :

Nyabugogo Road, Muhima

 

 

Country :

Rwanda

 

 

Date of Incorporation :

01.01.2005

 

 

Legal Form :

Company limited by shares

 

 

Line of Business :

The Subject is engaged in the (wholesale) trade, including import, in all kinds of hardware and construction materials.

 

 

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 :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

 

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)

Rwanda

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

RWANDA - ECONOMIC OVERVIEW

 

Rwanda is a poor rural country with about 90% of the population engaged in (mainly subsistence) agriculture and some mineral and agro-processing. Tourism, minerals, coffee and tea are Rwanda's main sources of foreign exchange. Minerals exports declined 40% in 2009-10 due to the global economic downturn. The 1994 genocide decimated Rwanda's fragile economic base, severely impoverished the population, particularly women, and temporarily stalled the country's ability to attract private and external investment. However, Rwanda has made substantial progress in stabilizing and rehabilitating its economy to pre-1994 levels. GDP has rebounded with an average annual growth of 7%-8% since 2003 and inflation has been reduced to single digits. Nonetheless, a significant percent of the population still live below the official poverty line. Despite Rwanda's fertile ecosystem, food production often does not keep pace with demand, requiring food imports. Rwanda continues to receive substantial aid money and obtained IMF-World Bank Heavily Indebted Poor Country (HIPC) initiative debt relief in 2005-06. In recognition of Rwanda's successful management of its macro economy, in 2010, the IMF graduated Rwanda to a Policy Support Instrument (PSI). Rwanda also received a Millennium Challenge Threshold Program in 2008. Africa's most densely populated country is trying to overcome the limitations of its small, landlocked economy by leveraging regional trade. Rwanda joined the East African Community and is aligning its budget, trade, and immigration policies with its regional partners. The government has embraced an expansionary fiscal policy to reduce poverty by improving education, infrastructure, and foreign and domestic investment and pursuing market-oriented reforms. Energy shortages, instability in neighboring states, and lack of adequate transportation linkages to other countries continue to handicap private sector growth. The Rwandan Government is seeking to become regional leader in information and communication technologies. In 2010, Rwanda neared completion of the first modern Special Economic Zone (SEZ) in Kigali. The SEZ seeks to attract investment in all sectors, but specifically in agribusiness, information and communications technologies, trade and logistics, mining, and construction. The global downturn hurt export demand and tourism, but economic growth has recovered, driven in large part by the services sector, but inflation has grown. On the back of this growth, government is gradually ending its fiscal stimulus policy while protecting aid to the poor.

 

Source : CIA

 


REGISTERED NAME & COMPANY SUMMARY

 

SOFARU SARL QUINCALLERIESOFARU

 

 

ADDRESSES

 

Main Address:               Nyabugogo Road, Muhima

Zip code/City:                Nyarugenge, Rwanda

Telephone:                    +250 7 88300034

                                    +250 7 88300035

 

Postal address:             Po Box 3290

Zip code/City:                Kigali, Rwanda

 

Web site:                      http://sofarugroup.com

E-mail:                          sofaru10@yahoo.fr

VAT-No.:                       100026358

 

 

Profile

 

Banks:              unknown

Employees:       unknown

 

CNPJ:               -

 

 

DIRECTORS/MANAGEMENT

 

Board of Directors:

General Director EdouardRuterana

 

 

NEGATIVE INFORMATION

 

Public information:

-

 

 

SHARE & SHARE CAPITAL INFORMATION

 

Legal form:                                            Company limited by shares

Incorporation date:                                 01.01.2005

Balance sheet filing date:                        -

Tax Contributor Number (CNPJ):  -

Legal status:                                         active

Responsible Register:                            Office of the Registrar General

 

Entry    Deleted Name

active                SofaruSarl

 

Entry    Deleted Address

active                Nyabugogo Road, Muhima, Nyarugenge, Kigali, Rwanda/RW

 

 

PAYMENT INFORMATION

 

Import and Export:

Import

 

Payment history:

No complaints on record.

GROUP STRUCTURE & AFFILIATED COMPANIES

FINANCIAL INFORMATION

 

 

FOREIGN EXCHANGE RATES

 

Exchange rate:

US$ 1,00  =  RWF 642,763         -  Official rate on 04.09.2013

ADDITIONAL INFORMATION

 

Main Activities:

The company is engaged in the (wholesale) trade, including import, in all kinds of hardware and construction materials.

 

Company's Background:

We have been in touch with the company several times, but the general manager and (supposedly) shareholder, Mr.EdouardRuterana was never available.

An email was sent; should we receive further details, then we will send you an update.

 

We can confirm that the company is registered with the Office of the Registrar General of Rwanda and that the company uses a valid tax number.

The exact date of foundation however could not be traced. We do know that the company was trading during 2005; however, it could be that the activities commenced prior to that.

 

 

 

 

NOTES & COMMENTS

 

With regards to the lack of (financial) information and the general state of the economy in Rwanda, as well as the news regarding the fire at the company's warehouse, we recommend you to deal on fully secured terms only and to monitor the developments.

 

News

December 2012:

GOODS worth millions were yesterday morning destroyed in a fire that engulfed a ware house containing an assortment of construction materials, in the busy Nyabugogo suburb in Nyarugenge district, along the Kigali Huye highway.

 

According to eyewitnesses the fire started at around 9am. No person was reported injured in the inferno but a lot of property was lost despite tireless efforts by the Fire Brigade to put down the fire.

 

“When the fire broke out, police and army respondoded fast and rushed to the scene.  Together with the local population, they battled the fire with hope of saving a few things but it was too strong to extinguish,” said Abdul Niyoryo, one of the first witnesses to arrive at the scene.

 

The warehouse belongs to city businessman Edward Ruterana, who owns a famous hardware store known as SOFARU.

“I was not around when the fire started but people who were at the depot told me the fire started at around 9:30am. I was told that the fire could have been started by some live electricity cables that may have caused a short circuit but we have not confirmed this yet,” said Ruterana in a phone interview.

 

He said that the actual loss cannot be immediately ascertained. “But what I can tell you is that I have lost hundreds of million francs,” Ruterana said.

 

Though too much property was lost, the people, army and police who arrived at the scene first managed to evacuate two trucks that were parked next to the burnt depot.  People at the scene claimed the trucks also belonged to the businessman.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.96

UK Pound

1

Rs.102.91

Euro

1

Rs.86.58

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.