Kigali — The British American Tobacco Rwanda recently announced it would restructure its operations, with the company becoming a Centre of Distribution and Marketing Excellence for the Rwanda-Burundi area.

According to the Managing Director Luc Badibanga, BAT-Rwanda has been identified by the BAT Group for its position.

"The country is strategic for the long-term continuity of our business in the area. Our unique geographical position makes the country an ideal hub for the expansion of the Group's distribution network. Rwanda has been identified as a launch pad into Burundi," Badibanga said at a press conference at Intercontinental Hotel Kigali Wednesday, March 29.

He added that the restructuring would also enlarge the company's portfolio with the introduction of renowned international brands starting this year.

As part of this change, Badibanga said BAT Rwanda would transfer production to BAT Kenya from the second quarter of 2006.

"BAT Kenya has been identified as a Centre of Excellence for Manufacturing," Badibanga said. He also said that the move would allow the organisation to optimise resources in distribution and marketing.

He also told guests that the company would maintain its position as one of the leading tax payers in Rwanda. Early this month BAT-Rwanda remitted Frw 2.6billion in taxes to the government in 2005, a sum representing 51% of its turnover.

"Our contribution to government revenues through Excise tax payment would even increase on adoption of the Specific Excise regime as opposed to the current Ad Valorem system," Mr. Badibanga said.

He added that their business model has now been aligned to suit the integration of BAT into an East African Business Unit, "at a time when Rwanda and Burundi are joining the East African Community (EAC)."

In the process, he said, some employees at the Kigali factory will become redundant while some will be redeployed into other arms of the business.

"In line with British American Tobacco employment principles, the company will go beyond the legal requirements to minimise the impact on affected employees - including training in microfinance project management," Mr. Badibanga said.

Mr. Belai Tzeggai, BAT Rwanda Marketing Manager, emphasized that the quality of products from Nairobi would be the same or even enhanced by harmonising quality across the region through Centres of Excellence.

"We will continue to satisfy customer expectations by providing high quality products to our consumers. We have every assurance that at no point will there be an interruption in our supply chain," he said.

BAT has been present in Rwanda for over 30 years through her predecessor Tabarwanda, and has grown into a prominent corporate citizen through various social programmes and sponsorships.

BAT Rwanda has partnered with the government on initiatives like the Jua Kali exhibitions, which will be hosted in Kigali for the first time in a foreseeable future.

Badibanga pledged that the BAT Group would also continue its partnership with the Government of Rwanda in the Mountain Gorilla Conservation programme.

"BAT Rwanda is and will remain firmly rooted in Rwanda and we are here to stay," Luc Badibanga said.