20 September 2014

To our stakeholders:

I am pleased to confirm that Computer Bytes Ltd reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Franco A. Nkumba
MANAGING DIRECTOR

Computer Bytes' goal is to influence that our management team, employees, all our business partners and associates respect the Universal Declaration of Human rights. Based on our commitment we shall set up a code of conduct and ethics which shall be published on our website to make our position clear for all our suppliers, employees and partners. We shall ensure that our Code of Conduct and Ethics complies with the ISO 26000 standards and other international conventions.

In order to achieve our goals on respect of Human rights we shall collaborate with the Rwanda National Commission for Human Rights to conduct our first in-house awareness training to our employees and management. Meanwhile, we have constituted a team, comprising of management and staff to set up our Code of Conduct and Ethics and we have set a target date for its publication before our next COP reporting date.

During the reporting period of this COP, the National Commission for Human Rights in collaboration with Article 5 Initiative organized jointly for the 4th time, a 3-day workshop on the Domestication of the United Nations Convention against Torture (UNCAT) in Rwanda. The activities of the workshop included among others developing the Plan of Action for Preventing Torture and other Ill Treatment in Rwanda, focusing on concrete actions to be taken for further implementation for UNCAT in Rwanda. The workshop was also the opportunity of offering training on investigating allegations of torture and a training on participating in the process of the United Nations Committee against Torture and the African Commission on Human and People’s Rights. The implementation of the Optional Protocol to UNCAT was also looked at during the workshop.

Computer Bytes is an Equal Opportunity Employer regardless of race, colour, gender or religion. It has been company policy to recruit staff on the basis of clearly drafted employment contracts which are in full compliance with the Laws of Rwanda. The company strongly condemns the practice of forced labour, child labour and any form of discrimination in the work place.

The endorsement by the Government of Rwanda (GoR) of the International Labour Convention n° 138 of June 26, 1973 concerning the Minimum Age for admission to Employment; and the International Labour Convention n° 182 of June 17, 1999 concerning Worst Forms of Child Labour demonstrates the commitment of the Government to protecting children and fighting
child labor especially in its worst forms.

Computer Bytes Ltd endeavours, within its means, to support the Rwanda Government initiatives to address child labor issue; such as supporting vulnerable families to generate revenue, setting up laws protecting child rights, education programmes for all, including Technical and Vocational Education Training (TVET), establishment of catch-up education centers for children formerly engaged in child labour among others.

Computer Bytes has ensured that all our employees have access to health by subscribing to a medical insurance scheme on behalf of the employees.

In the period under consideration, the Computer Bytes set up and established "Digital Academy" a non-for-profit, ICT oriented Technical and Vocational Education Training (TVET) objective of

Over 5,000 children and adults are set to benefit from a $5 million (about Rwf3.4bn) grant put aside for efforts to eradicate child labour in the country and provide 1,320 vulnerable households with other means of income-generation to reduce reliance on child labour. This will be implemented through Rwanda Education Alternatives for Children in Tea Growing Areas (REACH-T) project that will run from 2014 to 2017. The grant is an award that Winrock International received from United States Department of Labour (USDOL).

Data from the National Institute of Statistics of Rwanda (NISR) shows that 5,366,968 of the country’s total population (about 49.6 per cent) are children under 18 years of age. Among them, 367,810 were aged between six and 17 and these were working either in their own households or outside. The same survey revealed that 110,742 children between six and 17 years were working in economic activities, with the agriculture sector employing the majority of them (40.8 per cent).

Computer Bytes Ltd has allocated the responsibility of environmental protection to two staff members, i.e..the Finance & Administrative Assistant and the Office Attendant, who will complement each other to endure that the Company's Environmental Policy is implemented. However, the Company has made it clear to all employees that they have a responsibility in their respective area to ensure that the aims and objectives of the policy are met.

Small as it is, Computer Bytes has eliminated the use of "Stick-on-pads" by using resized print waste paper instead. This has not only helped to mitigate the environmental impact of paper usage, but has also resulted in lower expenditure by the company on office stationery by 3% over the previous year.

In respect to Energy and Water usage, we are pleased to report the following:

• Lights and electrical equipment will be switched on only when needed. As a result of our in-house environment awareness campaign employees have consistently switched of lights and office equipment after use, e.g. Office space lighting, during natural day light, wash room lighting, office copier and printing equipment.

• Much as the company does not use a lot of heating appliances within its office environment we have encouraged our employees to be mindful of their energy consumptions at their own homes by switching off heating and lighting appliances when not in use.

• Computer Bytes is a reseller of ICT equipment in the East and Central Africa region, The Company strictly has ensured that it partners only with OEMs, such as Dell, Cisco, APC, etc who comply with internationally accepted environmental standards.

By implementing this policy the Company has been able to reduce it consumption by about 30% in one year.

Computer Bytes Ltd continues to support and observe the Government of Rwanda policy of zero-tolerance for corruption, bribery and extortion by its employees, directors and shareholders not offer or give any company funds or property as donation to any government agency or its representative, directly or through intermediaries, in order to obtain any favourable performance of official duties, unless mandated by an applicable law. The company fully complies with government procurement regulations and is always transparent in all its dealings with government agencies.

Computer Bytes Ltd prepares and maintain its accounts fairly and accurately and in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country in which the company conducts its business affairs.

Our Internal accounting and audit procedures reflect, fairly and accurately, all of the company’s business transactions and disposition of assets so as to provide assurance to its stakeholders that the transactions are accurate and legitimate. All required information can easily be accessible to company auditors and other authorised parties and government agencies, such as the Rwanda Revenue Authority.

Rwanda has emerged the least corrupt country on the African continent and among the least corrupt nations in the world, according to a global report on graft released by anti-corruption watchdog Transparency International (TI). According to the report the level of corruption in Rwanda has decreased by 10% between 2011 and 2013.

The report says that generally, TI GCB 2013 ranks Rwanda as the only African country perceived least corrupt within 10-14.9% range, which means the country is in the top-3 categories of the least corrupt nations worldwide out of 9 categories. The third category, in which Rwanda falls, includes countries like Israel, Jamaica, Palestine, Philippine, Argentina, Chile, and Hungary. Rwanda is ranked the 13th least corrupt country worldwide.

The corruption trends in East Africa show that Rwanda is the least bribery-prone country in the region with an average index of 2.5%. The other EAC member states Uganda, Tanzania and Kenya fall within the 50-74.9% category. The report shows that there is strong political will to fight corruption with Rwandan government effectiveness being the highest in Sub-Saharan Africa with 95%.