Rwanda
has suffered dramatically from the war of 1994 and
is now trying to build its image of an investment
friendly destination. As part of the government
task to institute a good business environment, RIPA
was created in 1998. Can you describe very briefly
RIPA's main responsibilities?
RIPA's main responsibility is to promote investments
in the country from nationals and foreign investors.
The Agency has also the responsibility to advise
the government on policies that would contribute
to achieving this objective and/or improve the overall
business environment. Our responsibility is also
to provide facilitation services to investors who
are starting their projects in the country. Among
our priorities, we have to promote export-oriented
investment.
The government is proud to be in the COMESA FTA.
In what areas will investors have a competitive
advantage in producing and exporting from Rwanda
to the region?
Rwanda still lags behind other some other COMESA
members countries who have built a strong manufacturing
sector. As an example, Kenya, Egypt, Zimbabwe and
Mauritius have a greater advantage of gaining from
this free trade zone than others.
In Rwanda the Manufacturing sector collapsed because
of the past events and now it is still in the transformation
process. Therefore I think compared to other countries
it will take a long time for us to build a strong
competitive Manufacturing sector to survive such
regional groupings.
What do you need to develop such competitive
atmosphere and in how much time?
We are in the process of making enterprises more
competitive. They will be able to get equipment
on a tax-free basis, raw material tax-free. We are
providing facilitation related to recruiting expatriates
and continued protection on the investments. We
also have incentives related to the tax policy.
So all this package will make our enterprises more
competitive in the long run. Our private sector
will have also to better analyse their projects,
the technology and invest where they have a comparative
advantage.
We are putting in place an economic processing zone
again with an idea of providing more incentives
so that the goods processed here can be competitive.
Now an investor can come into the export process
zone and have everything on duty free. This venture
of putting in place an export process zone is in
the offing and I am sure will put Rwanda at an advantage.
Have you already contacted some potential companies
that could be interested in investing in the EPZ?
No, first of all we have to find specific locations,
discuss with local authorities on the available
space that could be allocated. We are beginning
on the physical study in areas of hydro-energy and
examining the procedures that are going to govern
the export-processing zone.
This is an initiative that will give Rwanda an advantage
in the context of COMESA. We are going to look at
the manufacturing sector, build on processing what
is obtainable here in a bid to widen exports.
The government's privatisation program creates
many opportunities for profitable investment. What
companies under privatisation could be most interesting
for international investors?
The tea sector is very competitive . Rwandan tea
is of very high productivity and quality. We have
the necessary labour that is experienced and familiar
with tea growing. So, I for one believe that the
tea sector is an interesting one for any interested
investor.
The Telecommunication sector, which is also under
review and is going to be privatised, is also a
key investment opportunity for investors. In addition
to this is the energy that involves electricity
and water, which has been for long under government
ownership. But we have now amended the laws that
had earlier been giving monopoly powers to ELECTROGAZ.
This creates a fair and liberal ground for investors
interested in venturing into the industry. I have
seen already some people picking interest in the
gas methane transformation.
So I believe that the above are the key and immediate
areas though the privatisation secretariat has developed
new opportunities like for example the hotel industry,
agro-processing etc. |
Which
countries have so far shown interest in investing
in Rwanda?
So far Africans are leading investors in Rwanda.
We have been to Kenya ,Mauritius and I have seen
Ugandans show interest in some areas. The graph
of interested foreign investors keeps shooting up
each year.
In 2001 you were in Hong Kong. What was the outcome
of that visit to China?
Yes, we did go to Hong Kong last year with His Excellency
the President. It was a trade promotion mission.
There I met the private sector and indeed held discussions
with people interested in the textile industry.
Immediately after the visit, they came here to see
the potentiality Rwanda had to offer.
We have continental China coming next week to study
the possibility of processing potatoes for export.
Other companies interested in Information Technology
and Telecommunication are also expected to come
to visit Rwanda soon.
Among the investments that you have mobilised,
what percentage is from foreign sources?
It is still very low keeping in mind that the agency
is also new. Nevertheless, I believe that the most
important thing is for us to put in place a conducive
investment environment. Improve the image of Rwanda,
amend unnecessary laws and keep security on track
.As regard security ,Rwanda ,unlike in the past
is one of the most secure destinations in the region.
Are you involved in promoting business opportunities
in Rwanda through participation in international
trade fairs?
Definitely we are engaged in the trade fairs. RIPA
was represented in London and in Germany where fairs
oriented to the tourism industry were organised.
The next thing we are doing is to put in some of
our embassies commercial attaches. This will be
in Washington, London and Brussels before spreading
elsewhere. Therefore to supplement on our website,
these officials will be giving key information on
the available investment opportunities within the
country.
How would you describe the dialogue between the
government and the private sector?
There's a clear commitment on the part of the government
to have a sound and vibrant private sector. This
is one of the reasons the govovernment chamber of
commerce was replaced with the Private sector federation.
What are today the main hindrances or setbacks
that may still deter a potential investor from investing
in Rwanda?
There are still many and that's why we precisely
have to continue working very hard. Transportation
is still poor, the energy costs compared to other
countries in the region are still very high. Our
human resource base is now narrow because of the
genocide.
We have to set priorities as the purchasing power,
especially in the rural area, is also low which
is also a major kick back to investment.
What are the measures in place to guarantee investment?
We heard about the ATI…
ATI is an initiative taken over by 7 COMESA member
countries including Rwanda. It is a commercial insurance
agency one of its kind ever in Africa. It provides
insurance policies that cover uncommon risks that
have been scaring Investors from investing in Africa.
I can assure you , today Africa has been made a
safe heaven for investors. We are also members of
MIGA with conducive laws for protection of investments.
We continue subscribing to different organisations
that would be of great interest to us in favour
of investors. The laws also in the country are very
conducive for any interested investor.
How would you assess the performance of RIPA
and its impact on the economy of Rwanda so far?
We actually just started in 2000 and there was no
structure by then. Very little progress had been
attained. We have about 80 investors and project
. We are working hard to streamline the process
and follow dialogue closely. We are identifying
some aspects and constraints that we think some
laws and procedures will have to be amended in order
to further the business environment.
We have travelled widely to such countries as China,
Mauritius and Kenya to invite investor into our
country and we intend to restructure the organisation
and make it meet the high demand.
We have been organising meetings with the private
sector and enterprises to basically have their side
and make necessary changes and link them to the
ministries. So our major aim is to get solutions
to any problems that might be affecting them.
N.B: Some corrections have been made to
those words, sentences or paragraphs that are underlined.
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