Lex Africa Guide 2012 Full - Afrer.org

TRUST LAW CHAMBERSRWANDAFirm InformationWebsite address: www.trustchambers.comLanguages spoken: English, French and KinyarwandaContacts: Richard Mugisha and Apollo M. NkundaTelephone/Fax: +250 252 503 075Email: info@trustchambers.com,rmugisha@trustchambers.com, andmnkunda@trustchambers.comCountry InformationRwanda covers approximately 26,340 square kilometres and hasa population of approximately 11 million.Political SystemRwanda has had a multiparty democracy since 2003 when thenew Constitution was enacted.On 9 August 2010, Rwanda held Presidential elections which theincumbent President, Paul Kagame won with a majority of93.8%. All parties are represented in the Executive and theLegislature notwithstanding the fact that the Rwandese PatrioticFront is the most dominant political Party. The Rwandangovernment is credited with political stability.All Government policy is guided by Vision 2020 which is thecountry’s road map towards a middle income country by theyear 2020. The vision is anchored on the following pillars;namely building a capable State, Human Resource development,Private Sector development and modernization of agriculture,infrastructure development and regional integration. Genderequality and Information and Communication Technology (ICT)are cross cutting aspects of the vision.Latest available GDP FiguresThe GDP is US$ 6.055 billionGDP per capita is US$1000.Inflation Rate3.1% (2011).Investment ClimateIn 2011, Rwanda was named as the world’s top reformer inadopting business regulation reforms and its reforms raised thecountry’s ranking in the World Bank’s Ease of Doing Businessindex from 143rd in the world to 67th; the largest single year onyear increase by any country since the World Bank first publishedthe rankings in 2003. Rwanda now ranks fifth among Africannations in terms of ”ease of doing business”.main body charged with promoting investment in the countryand the company registry falls under it. Its role is complementedby the Private Sector Foundation (PSF) which acts as a platformfor addressing investor concerns.While there is no mandatory screening of foreign investment,the Rwanda Development Board evaluates business plans ofinvestors seeking tax incentives.The initial capital requirement is US$250 000 for foreigninvestors intending to register for tax incentives (registration isnot mandatory).There are no laws which limit the acquisition of land byforeigners.The 17 November 2009 report by Transparency International (TI)lowered Rwanda’s Corruption Perception Index ranking from102 in 2008 to 89, placing Rwanda among the top ten performersin Africa and the least corrupt in East Africa.Forms of BusinessPrivate limited liability company;Public liability company;Company limited by guarantee;Sole proprietorship.Formation of a CompanyLocal companies and foreign companies (branches) areregistered with the Registry of Companies at the RwandaDevelopment Board offices in Kigali. Registering companies iseasy and quick; there are 2 procedures and certificates ofincorporation are issued within 24 hours from submission of theapplication. The Company’s incorporation number is also its TaxIdentification Number and Social Security Number.Exchange ControlsThere is no difficulty obtaining foreign exchange, or transferringfunds associated with an investment into a freely usablecurrency and at a legal market clearing rate. The central bankholds daily foreign exchange sales freely accessed bycommercial banks.Investors can remit payments only through authorizedcommercial banks. There is no limit on the inflow of funds, butthe central bank requires justification for all transfers overUS$20,000 to facilitate the oversight of potential moneylaundering. There are some restrictions on the outflow of exportearnings. Companies generally must repatriate export earningswithin three months after the goods cross the border. Thecentral bank requires individuals and businesses to justifytransfers of more than US$20,000 per year from Rwandancommercial banks. Rwandans working overseas can freely makeremittances to their home country.It usually takes two to three days to transfer money using SWIFTfinancial services. Other financial services companies such asWestern Union and MoneyGram are also available to investorsseeking to transfer funds.64There are no laws which limit or prohibitforeign investment participation, or control.The Rwanda Development Board (RDB) is theSince January 2007, the Rwandan Franc (RWF) has beenconvertible for essentially all business transactions. Rwanda hasa liberal monetary system and complies with the InternationalMonetary Fund (IMF) Article VIII and all Organisation for