2024: Doing Business in Rwanda
Part 1: Doing Business in RWANDA What is the current business climate in your jurisdiction, including major political, economic, and/or legal activities on the horizon in your country that could have a big impact on businesses? Rwanda experiences comparatively high levels of stability and security by regional standards and continues to protect its political stability since the 1994 genocide. The country boasts a track record of robust economic growth and a strong reputation for low corruption. While GDP growth averaged 7.1% from 2009-2019, the COVID-19 pandemic had an adverse impact on Rwanda’s economy. In recent years, Rwanda has strategically positioned itself as a regional headquarters jurisdiction and a foreign direct investment and financial hub. To achieve this goal, Rwanda has been passing laws and regulations to create an environment that is attractive to investors and business owners, stimulate economic growth, and improve its competitiveness in various strategic growth sectors. These include laws on companies, partnerships, insolvency, negotiable instruments, foundations, trusts, collective investment schemes, insurance businesses, deposit-taking microfinance institutions, payment systems, capital markets, and financial service consumer protection. Policy reforms have also been implemented to attract foreign companies to the recently established Kigali International Financial Centre.
From what countries do you see the most inbound investment? What about outbound? Rwanda receives inbound investment from Mauritius, Kenya, South Africa, the United States, and the Netherlands.
In what industries/sectors are you seeing the most opportunity for foreign investment? Foreign investment opportunities are available in various industries/sectors, including manufacturing, agro-processing, tourism, real estate and construction, information and communications technology, services, mining, infrastructure, energy, health services, education, and global business services.
What advantages and pitfalls should others know about doing business in Rwanda? Despite there being no local participation requirements, foreign companies are encouraged to form joint ventures with Rwandan companies or entrepreneurs. Furthermore, investors are encouraged to use local materials whenever available in accordance with the "Made in Rwanda" initiative, although the use of imported materials is freely allowed. The country faces a shortage of skilled labor but has an efficient immigration system for skilled workers. Investors are entitled to various investment incentives, including those related to immigration, talent attraction, and research and development. Rwanda has a limited network of double taxation agreements and investment protection agreements. However, tax incentives include reduced corporate income tax rates applying for a period of five years to newly listed companies; tax exemption available to an international company that has its headquarters or regional office in Rwanda; and a tax holiday and reduced corporate income tax rate available to registered investors in priority sectors.
What is one cultural fact or custom about your country that others should know when doing business there? When greeting business associates, Rwandans greet with a handshake using the right hand and may place the left hand under the right forearm as a sign of respect.
Part 2: About Your Firm
What distinguishes your firm from others in your market? With offices in Eastern, Southern and Western Africa, we have deep expertise and the capacity to solve all our client's legal, tax, forensics, and IP requirements and help them navigate regulatory hurdles, no matter where in Africa they do business. Because we have many years of practical experience working on the ground throughout Africa, we have developed a proven track record and a solid understanding of local cultural, commercial and geopolitical contexts, as well as long-standing partnerships with trusted firms with whom we work. Our practitioners are qualified to practice English law and French law and we have extensive experience in the legal codes of OHADA used in West and Central Africa. Our tagline at ENS is 'Original Thinking,' meaning we thrive on ingenuity and producing the best solutions for our clients and their needs.
What are three words that describe the culture of your firm? Smart, Open-minded, Caring.
How does your firm participate in Corporate Social Responsibility (CSR) and/or Environmental, Social, and Governance (ESG) initiatives? We invest thousands of hours every year in a wide variety of pro bono work across the African continent. In South Africa, our efforts are focused on our two permanent pro bono offices—a first for a law firm. These offices are located in areas with difficult living conditions, including high levels of unemployment and numerous challenges. Our pro bono project has a multipronged approach which consists of the provision of advice and assistance, as well as legal education and skills development, in order to equip community members with knowledge and vital skills, thereby contributing to access to justice and the fostering of entrepreneurship and the growth of sustainable small businesses. We run annual business management training programmes and courses in human rights and constitutional law, with the aim of empowering leaders and activists with important information which will be shared in their communities.
Are there any new and exciting initiatives, practice areas, or industry focuses in your firm? We have recently introduced our Public Law practice, showcasing our experience in providing opinion and advisory services, administrative law services relating to the performance of public powers and functions, transactional services relating to public-private partnerships, drafting legislation supporting investigative and reporting work, and conducting judicial reviews of decisions by organs of state and public functionaries.
Our Public Law practice has advised clients from a number of industries, namely banking and finance, basic education, construction, electronic communications, early childhood development, energy, electricity, mining, port services, private and public higher education, transport and logistics, strategic oil reserves, telecommunications, human settlements, media, electoral issues, real estate, prisons, and pharmaceuticals.