The Government of Rwanda is committed to
establishing a competitive, diversified and balanced economy.
The central goal of 2001-2010 is to concentrate on improving
and expanding the economic foundation at a steady and firm
| THE OLD AND THE NEW: Dilapidated structures
are being replaced with new, modern buildings.
The Government faces tremendous development challenges and
it has developed a broad and long-term vision for development.
Vision 2020 aims at enabling the Rwandan population to exit
underdevelopment and poverty, in the context of a stable political
environment based on peace and stability.
The vision illustrates Rwanda’s aspirations and also
serves as a motivational performance indicator. It clarifies
Rwanda’s current situation and points out where Rwanda
should be in 20 years. The strategy aims at developing Rwanda
into a middle-income country in 20 years, creating an information-rich,
knowledge-based economy, developing human capacity as the
primary resource and using ICT as an enabler to achieve other
The Government of Rwanda has made it a priority to shift
the focus from emergency assistance and rehabilitation to
sustainable development and private sector growth. It is actively
promoting foreign investment.
Investment opportunities have increased with the passage by
the National Assembly of a law on Privatisation and Public
Investment in 1996
The Privatisation Secretariat started to work in October 1997
and today, about 30 public enterprises have been privatised
and 50 are yet to be privatised.
By the end of 2000, there had been a remarkable improvement
of Rwanda’s fiscal situation due to the establishment
in 1998 of Rwanda Revenue Authority (RRA) with an improved
tax collection system. As a member state of COMESA, Rwanda
has published a legal instrument removing tariffs on COMESA-originating
The National Assembly approved the new investment code in
1998, which resulted in the creation of the Rwandan Investment
Promotion Agency (RIPA) to assist potential investors, and
provide incentives to foreign investors (www.minecofin.gov.rw/investors/investment_incentives.htm.)
With the passage of this law, the Government aims at promoting
investment opportunities in Rwanda more aggressively, and
foreign investors are expected to make direct investment in
new export-oriented sectors as stability is firmly established
in the country.
RIPA also provides a one-stop shop for intending investors
and the Government is committed to reducing transaction costs
for all potential investors.
RIPA is actively working with the Privatisation Secretariat
to attract foreign investors to bid for government-owned enterprises.
The Office of the Auditor General was established in 1999
to carry out a continuous audit of ministries, government-owned
businesses and major projects. A new Regulatory Agency provides
guidance on granting licences, enforcing regulations, addressing
anti-competitive activities and implementing standards.
The Central Projects and External Finance Bureau CEPEX was
created by the Government to promote optimal allocation of
resources and avoid unproductive borrowing.
Its objective is to improve project formulation, monitoring,
management and evaluation as well as mobilise external resources
and coordinate international aid.
It is clear that the development of the economy cannot take
place unless there is an effective, enabling state that supports
the private sector.
The Chamber of Commerce was replaced by the Rwanda Private
Sector Federation in 2000 and private capital is expected
to gradually increase owing to greater confidence in the banking
system and in the economy as a whole.
It is important to note that Rwanda has minimal corruption
compared to many African countries. This has been facilitated
by the creation in 1997 of a National Tender Board (NTB),
which serves as the procurement agency for government purchases
including those made by state-owned companies and international
The NTB issues procurement rules and regulations and publicises
tenders in local papers. The passage of the Africa Growth
and Opportunity Act with a zero tariff on Rwanda exports to
the United States is expected to significantly increase Rwanda
areas of growth and boost trade, investment and development.
Rwandan embassies are committed to assisting Rwandans and
foreigners willing to trade with and invest in the country.
Additional information on the Rwandan economy is available
on the Government’s website at www.rwanda1.com/government