Category: Uncategorized

  • RDB orders closure of Hotel Chateau Le Marara #rwanda #RwOT

    The decision, announced in a public notice issued on July 21, follows an investigation that found the hotel operating without a valid Tourism Operating License (TOL), a legal requirement under Rwanda’s tourism law.

    According to RDB, the hotel is required to cease operations effective July 22, 2025.

    'Reopening will only be considered upon successful completion of the Tourism Operating License application process and full compliance with applicable regulatory requirements,' the notice states.

    Warning other facilities against violating existing laws, RDB stated: 'All tourism and hospitality operators are reminded that holding a valid Tourism Operating License is a legal obligation. The license serves as a guarantee of minimum safety, service, and operational standards necessary to protect both visitors and the industry at large.'

    Hotel Chateau Le Marara’s closure comes amid growing controversy following the high-profile wedding of Hajj Shadadi Musemakweri and Uwera Bonnette on July 14, which sparked guest complaints about poor service, unhygienic food, and power outages.

    Among the guests was Miss Rwanda 2020, Nishimwe Naomie, who joined others in raising concerns on social media. The event has since drawn national attention and raised questions about service standards at the five-star, European-style hotel located on the shores of Lake Kivu.

    Guests reported being served spoiled milk and fruit, facing constant power disruptions, and experiencing neglect by hotel staff. The guests alleged that they had to rent an emergency generator to continue wedding preparations. Others accused the hotel of overcharging, including for attendees at events that were allegedly not part of the original agreement.

    Chateau Le Marara has denied the allegations, calling them '99% lies' intended to damage its reputation. The hotel has instead filed a complaint with the Rwanda Investigation Bureau (RIB), accusing the couple behind the wedding of defamation and non-payment of over Frw 5 million in outstanding bills.

    In response to the growing uproar, RDB confirmed it had launched a formal investigation into the service complaints. RDB CEO Jean-Guy Afrika said the board is reviewing the matter thoroughly as part of its mandate to ensure professionalism and consumer protection in the tourism sector.

    The Rwanda Development Board (RDB) has ordered the temporary closure of Hotel Chateau Le Marara in Karongi District, citing failure to comply with national tourism regulations.

    Hotel Chateau Le Marara’s closure comes amid growing controversy following the high-profile wedding of Hajj Shadadi Musemakweri and Uwera Bonnette on July 14, which sparked guest complaints about poor service, unhygienic food, and power outages.

    Wycliffe Nyamasege

    Source : https://en.igihe.com/news/article/rdb-orders-closure-of-hotel-chateau-le-marara

  • Rwanda Muslim Community to launch cultural research center #rwanda #RwOT

    This decision was one of the key resolutions made during an International Scientific Symposium held on July 19, 2025, which brought together members of RMC and the Muhammad VI Foundation. The summit explored how Islamic moral values can serve as powerful tools in promoting peace and harmony across Africa.

    Speaking at the event, Mufti of Rwanda, Sheikh Sindayigaya Mussa, emphasized the importance of living out Islamic principles beyond religious spaces.

    'Islamic values shouldn’t just remain within religious gatherings. We must embody them in our everyday lives, in how we treat one another, and how we engage with society,' he said.

    He noted that values like respect, peace, and justice not only reflect faith but also shape responsible and compassionate citizens.

    Also addressing the gathering, Deputy Speaker of Rwanda’s Chamber of Deputies, Sheikh Musa Fazil Harerimana, praised Rwanda’s post-genocide recovery journey as a model of resilience and reconciliation.

    'The efforts made after the genocide—through forgiveness, Gacaca courts, and government-led unity programs—have transformed Rwanda. Other nations can learn from our story,' he stated.

    He further called for the documentation of humanitarian acts carried out by Muslim families and others during the genocide, noting they could serve as inspirational case studies for future generations.

    Sheikhat Sauda Niyirora, who leads Muslim women in Rwanda, reflected on how Islam was once misrepresented in public discourse.

    'Islam used to be misunderstood and unfairly judged. But thanks to Rwanda’s leadership, today every Rwandan enjoys equal rights. We must now prove through our actions who we truly are.'

    The planned research center will be built in Rwanda in collaboration with the Muhammad VI Foundation, which has pledged funding to support its academic and cultural activities.

    This initiative marks a significant step in preserving Rwanda’s complex past while using faith-based values to build a peaceful, united future.

    Mufti of Rwanda, Sheikh Sindayigaya Mussa, emphasized the importance of living out Islamic principles beyond religious spaces.

    Deputy Speaker of Rwanda’s Chamber of Deputies, Sheikh Musa Fazil Harerimana, praised Rwanda’s post-genocide recovery journey as a model of resilience and reconciliation.

    The International Scientific Symposium was held on July 19, 2025.

    IGIHE

    Source : https://en.igihe.com/news/article/rwanda-muslim-community-to-launch-cultural-research-center

  • Social media personality 'Burikantu’ arrested #rwanda #RwOT

    The arrest took place on Sunday, July 20, 2025, following reports that Burikantu had locked up a group of girls who had gone to his home in Kinyinya to discuss potential collaborations on social media content creation.

    Sources told IGIHE that the incident began when Burikantu allegedly invited one of the girls into a separate room to discuss how he could support her online presence. When she declined, he reportedly got upset and locked the group inside his house. He then demanded they pay him back for the transport fare and sodas he had provided before he would allow them to leave.

    The situation escalated when the girls couldn’t meet his demands. After one left, the others contacted the police for help. Officers from Rwanda National Police responded promptly and freed them, leading to Burikantu’s arrest shortly after.

    RIB spokesperson Dr. Thierry B. Murangira confirmed the incident took place in Kinyinya Sector, Murama Cell, Binunga Village, where the influencer resides.

    Burikantu is now being held at the RIB Kinyinya station as investigations continue. His case file is being prepared for submission to the Prosecution in accordance with the law.

    The offence he is being investigated for is punishable under Article 151 of Rwanda’s penal code, which addresses unlawful confinement. If convicted, he could face between five to seven years in prison.

    Speaking on the matter, Dr. Murangira said: 'RIB reminds the public that no one has the right to take advantage of others or hold them against their will. Such actions are illegal and will not be tolerated.'

    Popular social media personality Burikantu, whose real name is Mwitende Abdoulkarim, has been arrested by officers from the Rwanda Investigation Bureau (RIB) over allegations of unlawfully detaining young women at his home in Gasabo District.

    IGIHE

    Source : https://en.igihe.com/news/article/social-media-personality-burikantu-arrested

  • The dangerous drift of government communication in the DRC #rwanda #RwOT

    Behind the veil of this new peace declaration, which some have heralded as a significant step toward easing the crisis in eastern Democratic Republic of the Congo, lies a more nuanced—and indeed troubling—reality.

    In a hasty and triumphalist display of communication, the Congolese government, through its spokesperson, Minister of Communication Patrick Muyaya, has offered a highly skewed interpretation of the document, attributing to it provisions and commitments that are neither stated nor reasonably implied.

    In statements made shortly after the signing, Muyaya declared that the declaration upheld Kinshasa’s 'red lines,' particularly the unconditional withdrawal of M23 rebels from occupied areas and the restoration of state institutions in those territories. However, this interpretation starkly misrepresents the actual content of the agreement.

    The declaration contains no explicit reference to rebel withdrawal, nor does it outline any enforcement mechanism or timeline for such action. M23 leaders themselves have contested Muyaya’s characterisation, asserting that the agreement merely initiates a process to build up state presence—not a mandate for immediate rebel disengagement.

    By portraying the declaration as a diplomatic victory, Kinshasa not only disregards the strategic caution such circumstances demand but also betrays the very essence of the agreement.

    The text’s deliberate ambiguity called for measured restraint, not triumphalism. Thus emerges a growing risk: that this long-awaited peace, instead of being nurtured and sustained, may be compromised from the outset, undermined by a state communication machinery disconnected from reality, conflating political aspirations with legal stipulations.

    Peace initiatives for the eastern DRC have come and gone—postponed promises, endlessly renewed and nearly always broken. This latest diplomatic text, whose legal weight remains largely symbolic, stipulates a 'permanent ceasefire' and prohibits 'any attacks of any kind as well as any attempts to alter the situation on the ground by force.'

    In effect, this amounts to the freezing of the current military status quo, thereby tacitly legitimising the prolonged occupation of vast swathes of national territory by rebel forces.

    Troubling silences and grey zones

    While the ceasefire enshrines the current frontlines, the essentials remain shrouded in ambiguity: no mention is made of the rebels’ disarmament, their cantonment, or the return of displaced civilians. More worrisome still, the declaration contains no enforcement clauses. No body is designated to monitor compliance, and no sanctions are outlined for potential violations.

    In a regional context scarred by the repeated erosion of peace efforts, the adoption of this new declaration—though non-binding in form—nonetheless deserves recognition for what it symbolises: a renewed willingness on all sides to break with cycles of antagonism and progressively rebuild the foundations of peaceful coexistence.

    The document, the product of a mediation process sustained by the unwavering commitment of external partners, reflects a mutual pledge to abandon violence as a means of conflict resolution and to embrace dialogue as a shared horizon. While the legal guarantees remain to be solidified, the symbolic weight of the accord is no less significant. It rekindles hope in the war-ravaged provinces of North and South Kivu, where exhausted populations await with longing the end of hostilities and the return of legitimate civil order.

    In this regard, the declaration is not a final achievement but a foundational milestone—one that signals a new momentum, where diplomacy is no longer an escape route but a tangible promise of restored peace and sovereignty.

    A dangerous drift

    Against this backdrop, the statements made by Minister Muyaya are especially troubling. By presenting the agreement as a victory for Kinshasa’s 'red line'—namely, the unconditional withdrawal of AFC/M23 forces from occupied areas—the minister engages in blatant misinformation, misrepresenting the actual content of the signed declaration.

    In reality, the text contains no such provision, nor does it define any concrete modalities for withdrawal or reintegration. The government’s jubilant rhetoric stands in stark contradiction with the legal substance of the document. This gap between official discourse and factual reality constitutes a serious breach of the rigour required in statecraft.

    Such manipulation of the narrative, far from reinforcing Kinshasa’s diplomatic position, instead weakens its credibility and further exposes the nation to strategic delusion and moral disarmament.

    By portraying the Doha Declaration as a diplomatic victory, DRC government spokesperson Patrick Muyaya not only disregards the strategic caution such circumstances demand but also misrepresents the very essence of the agreement.

    Tite Gatabazi

    Source : https://en.igihe.com/opinion/article/the-dangerous-drift-of-government-communication-in-the-drc

  • 6 lessons I’ve learned in the fog of grief after losing my cousin #rwanda #RwOT

    My cousin passed away. She was a mother of five. Using the past tense on her feels unreal. Her absence is loud and unfair in a way that makes words feel useless.

    For days, time seemed to collapse in on itself. I stopped knowing what day it was. What I was supposed to do. What was needed, and where to get it from? For a wedding, you know what to do or who to consult when it comes to the worst, and the days are on your side, but in this case, what do you do?

    And while I’m still floating through it, here’s what I’ve learned and what I wish more people knew about grief:

    1. Not everyone who loves you will know how to show up for you

    I used to think that when something tragic happened, the people who love you would automatically know how to support you. But the truth is, they don’t. Some disappeared. Some sent vague texts. Others asked if I needed anything, and I just stared at my screen, wondering, Huh? How do I even begin to answer that?

    I learnt that when someone is grieving, don’t ask them what they need. Just do something. Show up. Leave a voice note. Drop off a meal—I’ve noticed I tend to eat my way through grief. Be present. Sometimes, silence speaks louder than words.

    2. Grief is not a group project

    Even within my own family, we’re all grieving differently. You’d think losing the same person would unite you in the same kind of pain. Nope. Wapi sha!

    As much as the five stages of grief—denial, anger, bargaining, depression, and acceptance—make sense in books, in real life, it’s a mess. A complete, confused gatogo. Some cry. Some clean. Some go silent.

    We’re not going through them in order, or at the same pace, or in the same way.
    That’s not dysfunction. That’s grief and it invites to be felt. Observe and give grace.

    3. Some people are for a season, others are for the storm.

    There are people I thought would show up, but didn’t. And then there are those I barely expected, who texted me every day, sent memes, or simply sat with me in silence.

    I’m learning to let go of the disappointment and hold tight to the ones who stayed, the ones who didn’t need an invitation into my grief. You don’t need a village. You just need a few real ones.

    4. Stop saying it’ll get better

    It won’t—not in the way I used to think.

    We don’t 'move on' from grief. We move with it. Some days it’s loud. Some days it’s quiet. But it’s always there, reshaping the way we see the world.

    My cousin’s death left a dent in our family’s fabric—a permanent thread of sorrow, one we’ll weave into everything else from now on.

    5. Don’t rush the healing

    Grief doesn’t work on deadlines. You don’t wake up 30 days later with clarity and closure. You wake up in pieces, and some days, you gather what you can.

    Overall, life goes on, and you don’t have to feel guilty for that. You’ll laugh again. You’ll dance again.

    You’ll scroll social media and feel guilty and weird. Do it anyway, live a life worthy Living doesn’t mean forgetting. And pain doesn’t cancel out joy. They can coexist. That’s what makes us human.

    6. Grief isn’t a competition

    There’s no gold medal for grieving 'better.' Not even a participation trophy. We’re not broken—we’re just human. And that’s enough.

    To wrap up, I know it can be hard during these times to hear or read motivational quotes and advice meant to help with the grieving process, but trust me, find your own way of dealing with grief. Find creative ways, energetic ways, therapy, sleep—whatever works for you. Find your way of feeling the pain because grief demands to be felt. You loved, and this is the price of loving them. Make their memories a legacy.

    Written in the loving memory of my cousin, Nyirabahizi Florence. Forever our Zungu!

    As much as the five stages of grief—denial, anger, bargaining, depression, and acceptance—make sense in books, in real life, it’s a mess. A complete, confused gatogo. Some cry. Some clean. Some go silent.

    Josepha Mafubo

    Source : https://en.igihe.com/opinion/article/6-lessons-i-ve-learned-in-the-fog-of-grief-after-losing-my-cousin

  • Africa Medical Supplier gets CMA nod to launch Rwanda’s first healthcare sector bond #rwanda #RwOT

    The Frw 5 billion Medium-Term Senior Unsecured Bond marks a major milestone not only for AMS but also for Rwanda’s healthcare and capital markets.

    The approval paves the way for AMS to offer the bond to the public and subsequently list it on the Rwanda Stock Exchange (RSE), where trading is expected to commence on August 22.

    The five-year bond, which carries a fixed annual interest rate of 13.25%, will be issued in a single tranche. It features an amortising structure with semi-annual interest payments and principal repayments starting 18 months after settlement. The bond’s weighted average life is approximately 3.25 years. The minimum subscription is set at Frw 1 million.

    Public subscription opens on July 24 and will run until August 7.

    Founded in 2008, AMS supplies life-saving medical equipment, pharmaceuticals, laboratory reagents, diagnostic kits, and hospital furniture to over 400 clients, including public and private hospitals, NGOs, United Nations agencies, and government health programs across Rwanda and the Democratic Republic of the Congo (DRC).

    Speaking on the development, Yves Sangano, Chairman of AMS, said the CMA approval is a significant step forward for both the company and the healthcare sector.

    'Today marks a pivotal moment not just for AMS, but also for the healthcare sector because access to life-saving medical services remains out of reach for many,' said Sangano.

    'Securing approval for the first-ever corporate bond any company in the healthcare sector in the country has issued is a conviction that the sector remains key in Rwanda’s transformation journey.'

    According to AMS, proceeds from the bond will be used to refinance USD-denominated debt and support growth plans aimed at increasing the company’s capacity to fulfil contracts and expand into new markets. Frw 3.1 billion will go toward debt refinancing, while Frw 1.9 billion will fund working capital for growth.

    Fabrice Shema Ngoga, the company’s Chief Executive Officer and founder, said the bond is not just a financial instrument, but a statement of intent.

    'This bond issuance will be a significant financial achievement for AMS, showcasing the strength of our business model and our commitment to responsible growth,' said Ngoga.

    'Furthermore, this kind of financing allows us to directly connect with investors who share our vision for a future where every Rwandan has access to affordable healthcare.'

    AMS has engaged BK Capital as the financial arranger and sponsoring broker for the issuance. RR Associates & Co. Advocates and BDO Rwanda are serving as legal and accounting advisors, respectively.

    In 2024, AMS posted revenues of Frw 18.5 billion, with a net profit of Frw 681 million.

    The firm holds a BBB- (RW) long-term rating and an A3 (RW) short-term rating from GCR Ratings, a Moody’s subsidiary.

    The company operates across Rwanda and the Democratic Republic of the Congo (DRC), with other target regions including Guinea-Conakry and the Central African Republic.

    Africa Medical Supplier PLC (AMS) is one of the leading medical products distributor in Rwanda.

    A biomedical engineer from Africa Medical Supplier Plc installs an infant radiant warmer at a rural hospital in Eastern Province to support neonatal care.

    Wycliffe Nyamasege

    Source : https://en.igihe.com/business-62/article/africa-medical-supplier-gets-cma-nod-to-launch-rwanda-s-first-healthcare-sector

  • Rwandan artiste Boukuru shines at 12th Pan-African Music Festival in Congo Brazzaville #rwanda #RwOT

    The grand festival took place on the night of Sunday, July 20, 2025, and was officially opened by President Denis Sassou N’Guesso of Congo Brazzaville.

    This 12th edition, which also marks the 30th anniversary of FESPAM, was held under the theme: 'Music and Its Role in Africa’s Economy in the Digital Age.'

    Boukuru’s performance was graced by high-profile guests including Marie-France Lydie Hélène Pongault, Congo’s Minister of Culture; Rwanda’s Ambassador to the Republic of Congo, Amb. Parfait Busabizwa; members of the Rwandan community living in Brazzaville; and hundreds of Congolese music enthusiasts.

    As she stepped onto the stage, Boukuru greeted the crowd and proudly declared, 'I am a Rwandan artist and I’m here to share with you the essence of Rwandan creativity.'

    Speaking after her performance, Boukuru expressed how meaningful it was to be on such a prestigious platform.

    'Representing Rwanda is a great honor,' she said. 'Being in Brazzaville is important for my artistic journey because it allows me to connect with fellow creatives, learn from others, and grow my own expression.'

    Beyond her opening-night performance, Boukuru is set to showcase her art at multiple festival venues across different neighborhoods in Brazzaville as part of the ongoing FESPAM schedule.

    The opening night attracted over 8,000 attendees and set the tone for a vibrant celebration of African music.

    In addition to live performances, the festival includes panel discussions on African music, a heritage exhibition of iconic instruments, and free concerts in venues like Mayanga, Kintélé, and more. The event will also feature the screening of a documentary film about Congolese Rumba, one of Africa’s most celebrated musical genres.

    Alongside Boukuru, artists from various countries are expected to perform throughout the festival. FESPAM is organized in partnership with the Government of Congo Brazzaville, the African Union, and UNESCO.

    Boukuru delivered a captivating performance featuring a diverse repertoire, earning admiration from the audience for her exceptional talent.

    President Denis Sassou N’Guesso of Congo-Brazzaville officially launched FESPAM 2025

    This festival has a long-standing legacy.

    Boukuru stands out as one of Rwanda’s most talented female artists, widely appreciated by fans of Rwandan music for her exceptional artistry.

    IGIHE

    Source : https://en.igihe.com/entertainment/article/rwandan-artiste-boukuru-shines-at-12th-pan-african-music-festival-in-congo

  • IFC issues Frw 24 billion ‘Umuganda’ bond to boost Rwanda’s capital markets #rwanda #RwOT

    The eight-year amortising bond marks IFC’s return to Rwanda’s onshore market for the first time in 11 years. It’s also its second 'Umuganda bond' denominated in Rwandan francs.

    The bond, listed on the Rwanda Stock Exchange, was 1.75 times oversubscribed and carries a fixed coupon of 10.50%, about 0.55% below the interpolated government yield.

    Proceeds from the bond will be used to finance a local digital infrastructure project, allowing the client to avoid currency risk associated with borrowing in U.S. dollars or other foreign currencies.

    Mary Porter Peschka, IFC’s Director for Eastern Africa, said the bond aligns with IFC’s long-term goal of strengthening capital markets while supporting critical infrastructure.

    'The bond offers investors exposure to IFC’s triple-A rating, while also enabling IFC to provide local currency financing to an important project that will enhance digital connectivity,' she said.

    IFC coined the term 'Umuganda bond' in 2014 when it became the first non-resident issuer to place a Rwandan franc bond in the domestic market. The success of the current issuance is seen as a vote of confidence in Rwanda’s capital market framework and regulatory environment.

    The bond attracted a wide range of investors, including pension funds, insurance companies, banks, and asset managers. BK Capital and Rand Merchant Bank served as joint lead managers on the transaction.

    Finance Minister Yusuf Murangwa welcomed the issuance as a positive step for local market development.

    'IFC’s second Umuganda bond will support our work to deepen domestic capital markets in Rwanda,' he said. 'Bond issuances by international borrowers such as IFC create new investable opportunities for domestic investors while raising much-needed Rwanda franc financing for local businesses.'

    Beyond bond issuance, IFC continues to support capital market reforms in Rwanda through the Rwanda Capital Market Development Project—a joint initiative with the World Bank. The project focuses on improving government bond market liquidity, increasing non-government bond issuance, and building a more diversified and professional investor base.

    In 2024, IFC also issued two offshore Rwanda franc-denominated bonds listed on the London and Luxembourg Stock Exchanges.

    The International Finance Corporation (IFC) has issued a Frw 24 billion bond (approximately USD 17 million) to support the development of Rwanda’s capital markets and finance digital infrastructure in the country.

    Wycliffe Nyamasege

    Source : https://en.igihe.com/business-62/article/ifc-issues-frw-24-billion-umuganda-bond-to-boost-rwanda-s-capital-markets

  • Rwandan economist Philibert Afrika joins AIMS International Governing Board #rwanda #RwOT

    Confirming the appointment, AIMS founder and IGB Chair, Professor Neil Turok, hailed Afrika’s leadership and expertise, calling it 'invaluable' to the institute’s strategic direction.

    Established in 2003 in South Africa and now operating centres in Senegal, Ghana, Cameroon, and Rwanda, AIMS is a pan-African network of Centres of Excellence offering postgraduate training, research, and public engagement in STEM.

    The institute continues to play a key role in shaping Africa’s future through its intensive master’s programmes, including the African Master’s in Machine Intelligence (AMMI), its academic-industry partnerships, and initiatives like Quantum Leap Africa and the Next Einstein Forum.

    Afrika, a former senior executive at the African Development Bank (AfDB), brings more than 30 years of experience in development economics and regional integration.

    At the AfDB, he served in several top positions including Secretary General, Director of Policy and Resource Mobilisation, and Director of NEPAD and Regional Integration.

    Since retiring from the bank in 2009, Afrika has continued to be a key figure in Rwanda’s economic and academic development. He is currently the chairman and co-founder of the University of Kigali, where he also heads the Centre for Economic Governance and Leadership.

    His extensive boardroom experience includes previous tenures with Cogebanque Rwanda, Access Bank Rwanda, and the West African Development Bank (BOAD).

    Afrika joins a high-profile roster on the AIMS board, including Charles Boamah, former Senior Vice President of the AfDB; Prof. Thuli Madonsela, Chair of Law and Social Justice at Stellenbosch University; and Serena Lefort, former Chair of Canada’s Quantum Valley Ideas Lab.

    Speaking on his appointment, Afrika said, 'It is an honour to contribute to AIMS’ inspiring mission of empowering Africa’s brightest minds through science and education.'

    The next AIMS International Governing Board meeting will be held virtually, ahead of an in-person Annual General Meeting scheduled for early 2026 in Kigali.

    The event is expected to highlight Rwanda’s growing role in shaping Africa’s scientific and innovation agenda.

    Philibert Afrika, a former senior executive at the African Development Bank (AfDB), brings more than 30 years of experience in development economics and regional integration.

    Wycliffe Nyamasege

    Source : https://en.igihe.com/news/article/rwandan-economist-philibert-afrika-joins-aims-international-governing-board

  • Britain’s job market sliding under rising labor cost, U.S. tariff threat #rwanda #RwOT

    Data released by the Office for National Statistics (ONS) on Thursday revealed that the country’s unemployment rate for people aged 16 and over stood at 4.7 percent during the March-May period of 2025. This marks a notable increase both year-on-year and quarter-on-quarter, pushing the rate to its highest level in nearly four years.

    The ONS figures also showed job vacancies climbing to new highs, indicating that despite a growing number of unemployed individuals, businesses are still struggling to fill positions.

    “The government’s tax rises, a higher minimum wage and the U.S. trade war are hitting the jobs market,” Financial Times reported.

    David Bharier, head of research at the British Chambers of Commerce (BCC), told Xinhua that steep increases in national insurance contributions and the national living wage weigh heavily on the latest employment data.

    “BCC research shows that recruitment remains challenging, and businesses cite labor costs as the biggest pressure,” Bharier said. “This mounting financial pressure, alongside pervasive skills shortages, remains a massive challenge for business, presenting big risks to investment and productivity.”

    A woman walks past the Bank of England in London, Britain, on April 13, 2022.

    According to Bharier, the BCC’s most recent economic forecast suggests hiring will remain subdued and the unemployment rate is expected to stay largely static. “We currently forecast a rate of 4.6 percent at the end of 2027,” he said.

    Tina McKenzie, policy chair of the Federation of Small Businesses (FSB), stressed that the latest trends paint a worrying picture for Britain’s small business sector.

    “New FSB research has found that twice as many small businesses shed staff in the second quarter of 2025-20 percent-than increased their employee numbers,” she said.

    For the first time in the 15-year history of the FSB’s quarterly Small Business Index, more small businesses expect to shrink or close over the next 12 months than those that expect to expand.

    “That’s more than alarming for the economy and for communities across Britain where these hard-working businesses operate,” she said, noting that small businesses currently provide more than 16 million jobs in Britain-over half of all private sector employment.

    Experts also believe the ongoing threat of U.S. tariffs is contributing to the negative data and will continue to influence Britain’s job market and economy in the long term, despite the existence of a trade agreement.

    William Bain, head of policy at the BCC, said their April survey revealed that 62 percent of firms exporting to the U.S. had been affected by rising costs and order book pressures caused by higher U.S. tariffs, a sentiment that aligns with the rising unemployment figures reported by the ONS.

    David Bailey, professor of business economics at the University of Birmingham, noted that U.S. tariffs are impacting Britain’s export-driven sectors and, in turn, the job market.

    This photo taken on June 22, 2023 shows a construction site in Liverpool, Britain.

    “Even though Britain has got this deal with Trump on tariffs, the tariffs are still going up from 2.5 percent to 10 percent. It may not be 25 percent, but it’s still going to affect exports from Britain and therefore hit economic growth,” Bailey said, adding that this uncertainty for British firms, combined with the government’s “mistake” of raising national insurance contributions alongside the higher minimum wage, has contributed to the sluggish employment situation.

    For the first time in the 15-year history of the FSB’s quarterly Small Business Index, more small businesses expect to shrink or close over the next 12 months than those that expect to expand.

    Xinhua

    Source : https://en.igihe.com/news/article/britain-s-job-market-sliding-under-rising-labor-cost-u-s-tariff-threat