Rwanda Development Board (RDB) was established by the organic law Nº 53/2008 OF 02/09/2008, to fast track the development of Rwanda in priority areas to achieve the Government’s development objectives as outlined in Vision 2020 and the Economic Development Poverty Reduction Strategy (EDPRS). It is entrusted with the mission to fast track the development of Rwanda and creates a sustainable GDP growth for Rwanda with good jobs and business opportunities for citizen and non citizen .

Dispute resolution

Most disputes in Rwanda are resolved through litigation in court. At the moment, there is no specialized commercial court but the planned reforms include the creation of one. Arbitration and alternative methods of dispute resolution are being developed, since the civil, commercial and labour codes, as well as administrative procedures provide for arbitration.

An Arbitration Centre was created in 1998 as a non-governmental organization with the mission of settling all commercial disputes. The Government has adopted a policy of encouraging the formation of more arbitration centres. A Law on Arbitration and Conciliation is being drafted to provide a legal framework for improving arbitration and alternative dispute resolution in general.

Rwandan courts would, as a general rule, recognize a governing-law clause in an agreement that provides for foreign law. However, the selection of such a law must be real, genuine, bona fide, legal and reasonable. A Rwandan court would not give effect to a foreign law if the parties intend to apply it in order to evade the mandatory provisions of a Rwandan law with which the agreement has its most substantial connection and which, for this reason, the court would normally have applied.

There have been few investment disputes in Rwanda and the Government has never been involved as a complainant or respondent in dispute settlement under the auspices of the World Trade Organization (WTO). The country has been a member of the Multilateral Investment Guarantee Agency (MIGA), which provides guarantees against non-commercial risks, since 1989. It is also a member of the International Centre for the Settlement of Investment Disputes (ICSID), associated with the World Bank, and a founding member of the African Trade Insurance Agency (ATI).

Institutional framework

A new Company Act which came into force in 2009 provides more facilities for investors to operate smoothly in Rwanda.

The investment law, on investment and export promotion and facilitation, which came into force in March 2006, is intended to assist investors in obtaining the necessary licences and by providing other assistance and incentives.

The principal features of the law include the following:

• The law defines “foreign investor” and “local investor” and specifies that the former shall qualify for an investment certificate with an investment of $250,000 and the latter $100,000.

• The law provides for free economic zones of three kinds: export-processing zones, single enterprise export-processing zones and free trade zones.

• A one-stop centre is established at the Rwanda Development Board (RDB), composed of officials from the Rwanda Revenue Authority, office of the Registrar General, Rwanda social Security Fund, Environment Impact Assessment, Public Notary and the Department of Immigration and Emigration, among others. In the performance of their duties, these officials are to be answerable to RDB.

• The provisions on fiscal incentives have been moved to the new law on customs and the new law on income tax but maintained as annexes to the investment law, for ease of reference.

• The law provides special non-fiscal incentives for investors who invest $500,000 in one step. These include permanent residence, citizenship and access to land.

• RDB is required to make and communicate its decision regarding an investment certificate within 10 working days after receiving a complete application. Should RDB fail to act within 10 days, the investor may complain to the Minister of Commerce who is in turn required to investigate the matter and communicate his/her decision within 5 working days.

• The law also states that the holder of an investment certificate is entitled to certain benefits

Current policy and legal framework

The current policy is intended to spur economic growth, as outlined in the document Vision 2020. All sectors are open to foreign investment.

• The company act,

• The Investment Law,

• The Law on Privatization and Public Investment,

• The Land Law

• The Law on Protection and Conservation of the Environment

• Secured transaction laws; movable and immovable

• Law relating to commercial recovery and settling of issues arising from insolvency

• Law regulating labour in Rwanda

are the main laws governing investment in Rwanda.

The existing framework provides guarantees against the expropriation of private property, except in the public interest and with fair and prior compensation. It also guarantees the repatriation of capital and after-tax profits.

The following legal frameworks are also to be promulgated very soon:

1. Intellectual property
2. Negotiable instruments
3. ICT Bill.

Participation in international organizations and treaties

Rwanda is a member of a number of global and regional organizations and treaties of interest to potential investors, including the following:

1. The African Trade Insurance Agency (ATI)

• The Common Market for Eastern and Southern Africa (COMESA)

• The Cotonou Agreement between the European Union and African, Caribbean and Pacific States (ACP)

• The International Centre for the Settlement of Investment Disputes (ICSID)

• The Multilateral Investment Guarantee Agency (MIGA)

• The Paris Convention on Intellectual Property, the Universal Copyright Convention and the Berne Copyright Convention

• The World Intellectual Property Organization (WIPO)

• The World Trade Organization (WTO).

Rwanda has also signed several bilateral investment treaties (BITs) and double taxation treaties (DTTs).

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