Rwanda is becoming a leader in business regulatory reform in Africa and the IFC-managed investment climate team for Africa is supporting the government's efforts to develop successful reforms.
The team is working on the invitation of Rwanda's government on a multi-year investment climate reform project. The project supports a range of businesses -- small and large, formal and informal, local and international -- to do business better by addressing broad, systemic reforms.
On starting a business, the investment promotion component aims to improve and facilitate private investments (prior to incorporation and beyond the registration of the company). On dealing with licenses, this component involves a comprehensive inventory and review exercise of all business licenses (including but not restricted to construction permits) and overall regulatory simplification. On trading across borders, the trade logistics component will address longer term issues to facilitate trade.
SCRAPPING FEES
An example of Rwanda's progress towards creating an environment that supports private sector growth is the government's recent decision to scrap property registration fees. The abolition of the fees will make it easier and faster to transfer property in the land locked east African country.
"The 6 percent mortgage registration fee on the value of the property has been abolished," Francis Gatare, Director General of the Rwanda Investment and Export Promotions Agency said.
Rwanda is expected to announce a new fixed fee to replace the old registration regime of fees, which the private sector had labeled exorbitant, cumbersome and an obstacle to doing business.
Rwanda was ranked 150 in the 2008 World Bank Group’s Doing Business survey of 178 countries. In the registering property category, Rwanda ranked 137, ahead of Tanzania (160) and Uganda (163) but behind neighbors Burundi (122) and Kenya (114).
The property registration reforms are part of a larger vision to create an investment climate that is competitive, attractive to the private sector (in areas where Rwanda has a comparative advantage) and unique compared to competing investment destinations in sub-Saharan Africa.
IFC provides advisory services on behalf of the World Bank Group. The team is managed by the IFC and draws staff and resources from across the Bank Group and development partners to help African governments implement successful reforms.
IFC is working with Rwanda to promote public-private dialogue, develop entrepreneurship, foster competition, support small businesses and improve access to finance.
For More Information Contact:
Nana Yaa Ofori-Atta
Email: noforiatta@ifc.org
