REPUBLIC OF RWANDA

CITY OF KIGALI
P.O BOX 3527 KIGALI
Tel.: 57.22.55
Fax: 57.36.84

KIGALI ECONOMIC

DEVELOPMENT STRATEGY

August 2002

Kigali Economic Development Strategy Page 85

 2
Kigali Economic Development Strategy
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 Kigali Economic
Development Strategy

Building the Foundation to Compete in the Global Economy in the

Future

Expanding Job Opportunity to Reduce Poverty Now

Foreword

KEDS marks a new beginning for local government efforts to sustain

economic growth in Rwanda’s most important urban region. After
surviving many years of economic crisis, Kigali is now at a point
where there is the possibility of a more promising future. KEDS
provides a vision of this economic future and a plan to lead the way.
As well, KEDS provides an opportunity for public and private sector
individuals and organizations to work together to achieve and
sustain a more prosperous future for all citizens of Kigali.

Théoneste Mutsindashyaka
Mayor of Kigali City
August, 2002

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Table of contents
Page
Foreword 3
Table of contents 4
List of acronym 6
1. Background 7
2. A vision for Kigali 9
3. City of Kigali Profile 10
3.1 The historical evolution of the City of Kigali 10
3.2 Geographical location 10
3.3 Administrative divisions 11
3.4 Population 11
3.5 Family composition and size 12
3.6 Education level 12
3.7 Land use by type 13
3.8 Employment by occupation 13
3.9 Assess to piped water 14
3.10 Households with access to power 14
3.11 School enrolment 15
3.12 Number of hospital beds available 15
3.13 Paved road length 15
3.14 Solid waste collection 15
3.15 Solid waste collected in Kigali City 15
3.16 Number of car accidents per 1000 population 16
3.17 Number of crimes per 1000 population 16
3.18 Fire services 16
3.19 Cultural equipments 16
3.20 Number of Museum facilities 16
3.21 Number of Doctors per 1000 population 16
3.22 City product 17
3.23 Population in higher education 17
3.24 Revenue of the CoK 18
4. Kigali City socio-economic profile 19
4.1 Performance evaluation of the existing economy and an assessment of 19
economic growth opportunities
4.1.1 Tourism and hospitality 21
4.1.2 Industry 23
4.1.3 Commercial services 24
4.1.4 Construction industry 26
4.1.5 Information technology (IT) 27
4.1.6 Agriculture 28
4.1.7 Government and institutional activities 30
4.2 Evaluation of informal sectors 31
4.2.1 Enhancing women’s capacity to participate in the local economy (informal 31
sector) in Kigali City
4.2.2 Enhancing the capacity of small and micro businesses contribution to the 35
national economy
4.2.3 Poverty reduction and street children 42

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 Page
4.3 Assessment of Government influenced factors affecting economic growth 45
4.3.1 Land 45
4.3.2 Infrastructure 47
4.3.3 Housing 48
4.3.4 Transportation 49
4.3.5 Energy and water supply 50
4.3.6 Labour 53
4.3.7 Capital 54
4.3.8 Business environment 54
4.4 An analysis of current City of Kigali revenue capacity including an 60
assessment of opportunities and constraints for increasing revenue
5. The Kigali Economic Development proposed strategies 65
5.1 Building the foundation to compete in the global economy in the future 65
5.1.1 Agenda for change 65
5.1.1.1 Organizing for economic development 65
5.1.1.2 Strategic infrastructure investment 67
5.1.1.3 Expanding education and job opportunities 69
5.1.1.4 Land reform 69
5.1.1.5 Expanding access to capital 70
5.1.2 Targeted strategies for economic development and potential sectors 72
5.1.2.1 Industry including Agri-business 72
5.1.2.2 Tourism and hospitality 72
5.1.2.3 Information technology 73
5.1.2.4 Construction 74
5.2 Expanding job opportunity now who are capable 75
5.2.1 Enhancing women’s capacity to participate in the economy 75
5.2.2 Growing small and micro-business 76
5.2.3 Preparing street children for jobs 76
6.0 Implementing action plan 78
6.1 Building the foundation to compete in the global economy in the future 79
6.1.1 Agenda for supporting economic growth-Implementation actions 79
6.1.1.1 Organizing for economic development 79
6.1.1.2 Strategic infrastructure investment 80
6.1.1.3 Expanding education and job training opportunities 84
6.1.1.4 Land reform 86
6.1.1.5 Expanding access to capital 87
6.1.2 Targeted sectors for economic development 88
6.1.2.1 Industry including agri-business 88
6.1.2.2 Tourism and hospitality 90
6.1.2.3 Information technology 92
6.1.2.4 Construction 93
6.2 Expanding job opportunity now for all who are capable 94
6.2.1 Enhancing women’s capacity to participate in the economy 94
6.2.2 Growing small and micro-business 96

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List of Tables
Page
Land use 13
Cooking and Lighting (% of population depending on the source) 14
Cok Income and expenditures 17
Airport services 22
Food crop production nationally in year 2000 28
Financing of small business 36
Source of loans for informal sector 37
List of graphics Page
Population of Kigali by sex and age 12
Trend of formal employment in the City of Kigali 14
Household monthly income levels 17
Services offered by ICT agencies 27
List of Acronyms
AEF Affaires Economiques et Financières
APBG Affaires Politiques et Bonne Gouvernance
BNR Banque Nationale du Rwanda
CL Contentieux et Législation
COK City Of Kigali
DAARH Direction des Affaires Administratives et Ressources Humaines
DE Direction de l’Education
FRSP Fédération Rwandaise du Secteur Privé
ICT Information and Communication Technology
IT Information Technology
MIGEPROFE Ministère du Genre et des Femmes en Développement
MIJESPOC Ministère de la Jeunesse, de la Culture et des Sports
MINALOC Ministère de l’Administration Locale et des Affaires Sociales
MINEDUC Ministère de l’Education
MINERENA Ministère de l’Energie, de l’Eau et des Ressources Naturelles
MINECOFIN Ministère des Finances et de la Planification Economique
MINICOM Ministère du Commerce, de l’Industrie et du Tourisme
MINIFOTRA Ministère de la Fonction Publique et du Travail
MINIJUST Ministère de la Justice
MINISANTE Ministère de la Santé
Ministère des Terres, de la Réinstallation et de la Protection de
MINITERRE l’Environnement
Ministère des Travaux Publics, des Transports et des
MINITRACO Communications
NGOs Non Governemental Organisations
OED Office of Economic Development
ONATRACOM Office National du Transport en Commun
ORTPN Office Rwandais du Tourisme et des Parcs Nationaux
PH Public Health
PP Physical Planning
PRESIDENCE Office of The President of Rwanda
PROFEMME Umbrella of the women Organisations
PW Public Works
RIPA Rwandese Investment Promotion Agency
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 1. BACKGROUND

The process of development, during the last few years, has witnessed the massive
migration of the people from rural settings to urban areas all over the world. This
trend in developing countries is much more pronounced as the people have been
moving to cities in search of employment opportunities and better life options,
especially because the rural area base environment does not offer better alternatives
and lacks basic social facilities such as clinics and schools. However, this migration is
done at a cost. Among other problems it has impacted greatly on urban activities due
to ever- increasing pressure on urban social services. The population density has
surpassed the social service facility meant for it in almost all sectors
including water supply, power provision, and sewage and sewerage services. In
addition, the urban market status does not support the rural-urban influx and results
in a severe unemployment crisis. In search for alternatives, many people are forced
into criminal activities.

In developing countries where urban centres are growing in size and complexity, it is
difficult to mobilise resources to deal with problems in time. All stakeholders need to
be involved in these decisions, and base them on clear information. This study aims
at contributing to this process.

The main emphasis in city development lies on the development of basic

infrastructure facilities like transportation, water supply, housing, education, health,
sewage, electricity supply, communication etc. Higher population growth rate than
expected leads directly to the failure of these infrastructures facilities. Management
and planning of these facilities therefore requires serious attention.

According to the 1991 population census, only 6% of the population lived in urban
areas. However, in 1999 the urban population was estimated to be between 10% -
12%. This shows that the population in Kigali and other urban centres has almost
doubled since 1991 and this has increased drastically the demand for housing and
other urban services. It is also observed from the studies that after the 1994
genocide, the development of the city of Kigali has been spontaneous, uncontrolled
and haphazard. The results of this include inefficient land use, inefficient use of
limited resources, and a negative impact on the environment as well as on social and
security conditions.

The rapid growth in population has also placed a high demand on urban and
infrastructure development. Increasing urbanisation is slowly bringing with it the
problems of pollution due to increased poor waste management and insufficient
sewage systems as well as pollution from vehicles which are increasing daily.

Urban strategic planning is a complex phenomenon, which requires an enormous

amount of data to support decision-making. As such, the success of planning for
urban developmental activities for Kigali City depends on the quality and quantity of
information available concerning various factors such as environmental, physical,
socio-economic, natural, etc. It is essential to devise a computerised information

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system which is capable of handling a vast amount of data collected by modern
techniques and of producing up-to date information.

Kigali is a rapidly- growing city as a result of changes in the socio-economic policies

of the government. Kigali is Cosmopolitan City with varied population as well as
problems. There is therefore a need for long term planning of the socio-economic
requirements of the city, this in turn require information and strategy at local authority
level to facilitate an efficient administrative procedure, policy planning and
implementation in all spheres of the development process. The Government of
Rwanda has made a commitment to decentralise critical areas of resource
management to the City of Kigali. This has been done to enable Kigali to lift its
population above the poverty line by maximising its economic potential such as
increasing job opportunities and income, and by identifying ways of enhancing and
sustaining the revenue capacity required to meet its social service needs.

An assessment of the problems and potential of the City of Kigali, had been
conducted informed this process. The Kigali Economic Development Strategy
(KEDS) marks a new beginning for local government efforts to sustain economic
growth in Rwanda’s most important urban region. After surviving many years of
economic crisis, Kigali is now at a point where there is the possibility of a more
promising future. KEDS provides a vision of this economic future and a plan to lead
the way. As well, KEDS provides an opportunity for public and private sector
individuals and organizations to work together to achieve and sustain a more
prosperous future for all citizens of Kigali.

This document is composed by four main parts:

- The contextual background
- A vision for Kigali
- Kigali City profile
- Kigali City economic development strategy scoop

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 1. A VISION FOR KIGALI

KEDS’ vision for Kigali’s future is that of a region that can successfully compete in the
global economy; one that can bring opportunity and prosperity to its citizens; where
business and industry can prosper and grow; where the public and private sectors
work in a cooperative partnership; and where individuals and families enjoy an
improved quality of life.

To the people of Kigali who have suffered from hard times and many unfulfilled
expectations, it is tempting to think that this vision of the future sounds too good to be
true. In fact, this is a realistic vision, one that can be made to work in Kigali even
recognizing that current resources are limited.

Turning this vision into reality begins with community self-confidence. The
involvement and commitment displayed by City of Kigali leadership and KEDS
stakeholders attest that Kigali has indeed a renewed sense that it can accomplish
whatever it sets out to do. Through the KEDS process, Kigali has taken the first step
toward revitalization. The challenge of KEDS is to use this process to guide Kigali to
full economic recovery and prosperity.

The twofold nature of this strategic plan is important in achieving the vision for Kigali.
“Building the Foundation to Compete in the Global Economy in the Future” is a theme
that relates to the importance of making Kigali a place that is attractive to, and
supportive of, business and investment, both within the Central/East African region
and within the world’s economy. “Expanding Job Opportunity to Reduce Poverty
Now” recognizes that to achieve the vision for Kigali, one must start today to exploit
every opportunity to create jobs for all who are capable.

KEDS is both a process and a roadmap. As a process, KEDS will be an ongoing

endeavor to bring the public and private sectors together to rebuild the economy. As
a roadmap based on a comprehensive examination of the local economy, KEDS
provides insight and guidance on the many factors that affect local economic
development. The success of KEDS will be measured by the future it helps to create
for generations to come.

¾ Building the Foundation to Compete in the Global

Economy in the Future

¾ Expanding Job Opportunity to Reduce Poverty Now

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 2. CITY OF KIGALI PROFILE

3.1 The Historical Evolution of the City of Kigali

When the Berlin conference for the partition of Africa took place (1884-1885),
Rwanda and Burundi fell into the hands of Germany. This territory was then known as
Rwanda-Urundi and had its administrative headquarters in Bujumbura, the present
capital of Burundi.

In 1906 Germany appointed Dr. Richard Kandt as the first imperial resident governor
for Rwanda. He chose Nyarugenge hill as the site of the capital because of its central
location in the country. His residence, which also served as offices, was situated near
the present Gakinjiro market. The whole of Rwanda was administered from here.

In 1907, administration of Rwanda, which had still depended on Bujumbura, was

declared independent, and the following year in 1908, the administrative centre for
Rwanda was called Kigali.

By the year 1909, only 20 shops had been built on the present site of Nyarugenge
market and were mainly owned by Indian traders. A military camp was also put up at
the site where the Kigali central prison is found today.

Kigali eventually developed into an important commercial centre because of its

central position. It became a transit centre for the commercial activities between
Bukoba and Kigoma (in Tanganyika, now Tanzania) via Bujumbura and also between
Kisangani in DRC (former Belgian Congo) and Kampala (in Uganda). This
development induced many Arab and Indian traders to move from Nyanza, where the
King’s palace was, to Kigali. After the Second World War, the Belgians took over from
Germany in the administration of Rwanda, but still maintained Kigali as the
administrative centre for the whole country. The city has since continued to grow into
a strong capital and an important commercial business centre; with modern
infrastructure such road links to the rest of the country, and Kanombe international
airport as a gateway to the rest of the world.

3.2 Geographical Location

Kigali City, the capital of Rwanda, is situated almost in the centre of the country. Its
geographical position is on Latitude 1º 57’S and on longitude 30º 04’ E.

Kigali is situated in the natural region called Bwanacyambwe within the proximity of
the Nyabugogo river basin, between Mount Kigali (1852 m high) and Mount Jali.

The city is built on interlocking hills, which progressively converge and are separated
from each other by large valleys giving them oval shapes. Originally the city occupied
the hills of Nyarugenge and Nyamirambo which covered an area of about 200
hectares at the time of independence.

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The city stretches from the
centre to include the following:
Towards the east, the hills if
Kacyiru, Kimihurura,
Mburabuturo, Nyarutarama,
Remera and Kanombe.
Towards the south over the
slope of mount Nyarutarama.
Towards the west over the
slope of mount Kigali, on
slopes of Kabusunzu hills,
Kimisagara and Butamwa.

Towards the north over the

slopes of mount Jali and hills
of Gisozi, Gaculiro, Kagugu
and Kibagabaga.

3.3 Administrative Divisions

The actual urban provincial boundaries of Kigali as defined by the decree No. 896/90
of 1990 was composed of three communes (districts) namely: Nyarugenge, Kicukiro,
and Kacyiru. These communes comprised of a total of 20 sectors and 91 cellules.
Today the city is made up of 8 districts (communes), namely: Nyarugenge, Kacyiru,
Nyamirambo, Kicukiro, Gikondo, Kanombe, Gisozi and Butamwa.

3.4 Population
The population of Kigali city has been growing over the last two decades, but a new
growth trend developed after the 1994 war and genocide, when there was a dramatic
rise in the population caused by the return of Rwandans from various parts of the
World. Most of the returning Rwandans tended to go to the capital where there was
considerable security. The population growth of Kigali City was estimated by different
surveys carried out through out the country as follows: In 1960, the population was
6,000 peoples growing to 235,664 in 1991 and more than doubled between 1991 and
2000 reaching a figure of 604,966 people.
It is further observed that in 2000, women constituted about 52 percent of the city’s
population and that about 56 percent of the entire City’s population was age below 20
years. They gives a dependence ratio of 1.4:1 i.e. the population which is below 20
and above 60 compared to that between 20 and 60 years of age (one economically
active person support about one and half persons who are non economically actives).

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 Population of Kigali by sex and age

75 et +
Male Female
70-74

60-69

50-59
A
g 40-49
e
30-39
20-29

10-19

00-09

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

Percentage

The actual City population’s annual growth is estimated to be 10%. The

population growth in the city will continue at this high rate because of the rural
to urban migration tendency. It is estimated in the Kigali City Master plan 2020
that only 43 percent of the city population were originally natives of the city,
while 56.8% had migrated from other areas as shown by the figure below. The
56.8% migrants to CoK were composed of 14.6% who were born in other
countries, 13.1% from Gitarama prefecture, 6.8% from Butare, 5.8% Kigali
rural and 16.6% from other prefectures.

3.5 Family Composition and Size

Kigali City is estimated to have 131,106 households and a total population of
604,966 inhabitants. The average size of household is therefore 5 persons. It
is estimated that 51% of heads of household are male while 44% are women
and 5% are children.

3.6 Education Level

The socio-economic survey of August 2000 shows that 10% of Kigali City’s
population aged 7 years and above has never had any formal education, 54%
have primary education and 5% have post-secondary education. The level of
education is extremely low and therefore the majority of urban dwellers lack
the knowledge and skills to work productively in an urban environment. Most of
the people lack capacity to utilise available and useful information to reduce
the poverty that is permeating their lives

After 1994, several primary and secondary schools were created, mainly
initiated by parents. The existing schools/education infrastructures are
classified in three categories: nursery, primary and secondary schools. Kigali
City has 26 private nursery schools scattered in different areas. The City has
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 53 primary schools, 16 of which are government schools, 26 church schools
and 11 private. Primary school pupils are estimated to number 50,636 and
teachers 1,261, meaning one teacher for 40 pupils on average.
The majority of the secondary schools are private, started by parents: for
example, Kacyiru district has 37 secondary schools with 28,597 pupils.
Teachers at secondary level number 886, that is one teacher for 32 students
on average.
In 2001, there were 84 primary schools, 45 secondary and 8 high schools with
respectively 76138, 19151 and 8249 students.

3.7 Land use by type

The total planned area is about 47.21%, covering only 1666 hectares and non-
planned area is about 52, 69%, which covers 1859,3 hectares.

The new urban area of Kigali City is around 349 km2, consisting of original
area of 112 km2, which was defined by decree-law no 11/97 of 20/04/1979,
and modified by the presidential order no 896/90 of 27/11/1990 to include
additional area of about 237 km2.

Land use in the City of Kigali

Land use Area (ha)
Forests 7241.5
Cemeteries 135.4
Landfill 24.6
Airport coverage/area 10290
Military zones 838.68
Religious centers 72.6
Health facilities 37.6
Education facilities 249.4
Green space 163.7
Swampy area 5506.2
Developed area 13
National police zone 47
Telecommunications 98.5
Administrative area 307.5
Commercial area 129.3
Industrial area 280.8
Residential area 4777.4
Sports centres 32.9
Area of Kigali City 4653.92
Total 34900

3.8 Employment by occupation

The economically active population of the CoK constitutes those who are 10
years old and above which is distributed as follows: 37% are engaged in the
agro-husbandry mainly subsistence, 23% in the informal sector, 13% in the
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 public sector, 8% in the private sector, 5% in the commercial sector and 14%
in others. This clearly shows that the majority about 75% of the City dwellers
are under deployed which definitely put a big strain on the City’s resources.
Trend of formal emplyment in the City of Kigali

16000

14000

12000

N
10000
u
m
b 8000
e
r
6000

4000

2000 Private
Public

r
Secto
0
Mixed
1995 1996 1997 1998 1999 2000
Year

3.9 Access to piped water

It is noted that out of 131,106 households in Kigali, 43% of the households
(52,682) have access to pipe water, either found indoors or within the plot.
40% of the households (48,444) get their water from public stand pipes. The
remaining 17% fetch water either from the ponds, wells, or lakes around their
dwelling areas.

3.10 Households with access to power

Cooking and lighting ( % age of population depending on the source)

Cooking Lighting
District Population Firewood Charcoal Electricity Kerosene Electricity
Gisozi 22,446 37 63 67 33
Kanombe 12,130 53 47 53 47
Gikondo 17,854 23 77 30 70
Nyamirambo 12,540 17 80 3 13 87
Butamwa 10,091 95 5 95 5
Nyarugenge 23,959 5 92 3 23 77
Kicukiro 10,196 46 54 48 52
Kacyiru 18,890 17 77 6 27 73

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 City of Kigali 131,106 36.6 61.9 1.5 44.5 55.5

6% of the people in Kigali use electricity for cooking while 73% use it for
lighting and the rest of the residents/ households use other sources of power
like charcoal, firewood and kerosene. This shows that the majority of the
households in the City are low-income earners.

3.11 School Enrolment

There are 52 private nursery schools, 53 primary schools and 37 secondary
schools in Kigali City. The total enrolments are 6854 children at nursery level,
52,155 pupils in primary schools and 16,903 students in secondary schools.
All the primary and secondary schools are found in Nyarugenge, Kacyiru and
Kicukiro.

3.12 Number of hospital beds available

The usual capacity of beds in CHK is 511 only with one bed being occupied by
1,184 persons per year. The rate of bed occupancy in CHK is 93 % for general
services but it is 100% in services like gyneco-obsteric, paediatric and internal
medicine. King Faycal, on the other hand, has a capacity of 261 beds but a
low occupancy rate of 50%. In additional to the above two hospitals, there are
dispensaries located throughout the districts with a total number of 437 beds.

3.13 Paved road Length

The total length of roads of Kigali City is around 732 km of which 102 km are
paved. In general, sewerage and drainage systems in Kigali City are very poor
and almost do not exist.

3.14 Solid waste collection

.
The number and geographical distribution of the biggest producers of solid
waste are located in the three districts of Nyarugenge, Kacyiru, and Kicukiro
with total combined number of 394 restaurants 10 markets, 18 hostels and 47
industries.

3.15 Solid waste collected in Kigali City

There is no data available on solid waste characteristics for each district.
However it has been estimated that the city population produces about 450
tonnes of garbage per day, whose density is 0.4 tonne/m3.

The composition of this waste is as follows: organic materials 70%, textiles

10%, veers 5%, plastic materials 5%, paper materials and other constituents
10%. It has also been estimated that a person can produce about 0.6 kg of
waste per day. However, only 60% of the garbage is collected. Solid waste is

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 collected 2 days per week from homesteads in all parts of the CoK. Rain water
and other natural means are used to remove solid waste on other days

3.16 Number of car accidents per 1000 population

In 1999 in Kigali City there were an average of more than 150 car accidents
per month, caused by the concentration of principal administrative activities
and commercial activities within the city, as well as pedestrians and
motorcyclists. This works out to be 3 accidents for 1000 population.

3.17 Number of crimes per 1000 population

For the year 2000, it was recorded that the number of crimes was 85 per 1000
population.

3.18 Fire services

In Kigali, fire services are provided by a full fledged fire department at
Kanombe airport supported by military fire units. Statistics for the year 2000
reveal that in Kigali there was on fire accident per 1000 population. However,
with the existing and increasing problems of traffic congestion, it is impossible
for the fire engines from Kanombe airport to attend to emergencies in a certain
area of the city in less than 15–20 minutes. There is a need therefore to
construct a fully-fledged fire station in the city centre.

3.19 Cultural equipments

Kigali City has 3 cultural centres
(i) The cultural centre Franco-Rwandais
(ii) The American Cultural Centre
(iii) Islamic Cultural Centre
(iv) Other show rooms include Caisse Social du Rwanda, secondary
schools show rooms, National assembly, etc. where secondary
marriages and other ceremonies are organised, plus IWACU Centre
Kabusunzu and Kicukiro training Centre

3.20 Number of Museum facilities

There is one national Museum in Rwanda, based in Butare.

3.21 Number of doctors per 1000 population

There are more than a hundred doctors in the whole CoK, which gives a ratio
of doctors to population of 1:6048 or 0.17 doctors to 1000 population.

3.22 City product

Kigali city’s annual revenue per capita is US$6. 1. Revenue from land and property
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administration contributes about 70% of CoK revenue.

Household monthly income levels

30000

25000

H 20000
o
u
s
e 15000
h
o
l
d
10000

5000

0
No income Less than 10.000 10.000-30.000 30.000-50.000 50.000-100.000 100.000-150.000 150.000-250.000 250.000-400.000 400.000-500.000 500.000-1.000.000 Over 1.000.000 Not declared

Income

The gross product of the CoK is 95%, i.e., 70% from land administration and
25% of the potential revenue collected from other sources.

3.23 Population in higher education

The total number of students in all 7 higher education institutions was 3214 in
the year 2000 while the number of lecturers was 358. Again all these institutions are
located in the three districts of Nyarugenge, Kacyiru and Kicukiro.

3.24 Revenue of the CoK

The tax revenue of between 2 and 3 billion is expected to be collected by CoK

at the end of year 2001

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 Cok Income and expenditure
Year Category Budgeted Actual Rate Bugeted Actual Rate
1998 Ordinary 1462 1222 84 1034 849 82
Extraordinary 882 768 87 1310 768 59
Total 2344 1990 85 2344 1617 69
1999 Ordinary 1287 1536 119 1334 1125 80
Extraordinary 1338 270 20 1291 692 54
Total 2625 1806 69 2625 1817 68
2000 Ordinary 1617 1973 122 1398 1653 118
Extraordinary 2610 84 3 3331 705 21
Total 4227 2057 49 4729 2358 50
Total 9196 5853 64 9698 5792 60

At least 50% of the revenue increase has been realized within the first year
after revision of rates providing additional revenues of 15 billion francs.

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 4. KIGALI CITY SOCIO-ECONOMICAL PROFILE

Concerned by knowing the real socio-economical picture of the City of Kigali, the
Kigali City Council gave a mandate to the Kigali Institute of Sciences, Technology
and Management to conduct a survey in that order. Here below are summarised the
main objectives, findings and recommendations.

1) Performance evaluation of existing economy and assessment of economic growth

opportunities. The part included surveys relating to:
• Tourism and hospitality
• Industries
• Agriculture
• Commercial services
• Construction
• Information Technology Services
• Government and institutional activities

2) Evaluation of Informal work sector

• Women's capacity to participate in the local economy
• Small business issues and poverty reduction

3) Assessment of government influenced factors affecting economic growth.

This part relates to an intensive survey on:
• Land
• Infrastructure
• Energy and Water supply
• Labour
• Capital and
• Business Environment.

4) An analysis of current City of Kigali Revenue capacity including an assessment of

opportunities and constraints for increasing revenue.

4.1 Performance evaluation of the existing economy and an

assessment of economic growth opportunities
This part is concerned with the evaluation of the basic conditions, performance,
competitive position and growth potential of each key formal economic sector
namely; tourism and hospitality, industry, agriculture, construction, information
technology services, government and institutional services
The study addressed specific objectives for each sector.

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4.1.1. Tourism and Hospitality
Objectives

1. To develop a base profile of visitors to Kigali, by finding out

who comes to Kigali, why they come what interests them,
and their attitude towards Kigali.
2. To evaluate tourism attractions and to improve tourism
support services.
3. To assess employment opportunities.
4. To determine the potential to increase tourism.

Findings

1. The most common visitors are those whose age is between 31 and 40 years.
They are 37.4% of the total number of visitors to Kigali.

2. The majority of visitors who come to CoK know nothing about the attractions in
this city.

3. The origin of the greater number of visitors is African countries and they make
70.3% of all visitors to the CoK.

4. Most of the visitors are males about 75.5%.

5. The CoK (59.4 %) is the major destination for visitors to Rwanda compared to
other parts of Rwanda or those in transit.

6. The main purpose of the visit is business (58.1%). This implies that out of the total
travellers to Kigali City, only about 41% are the actual tourists.

7. The major source of information about Rwanda is personal contacts which is used
by 72.3% of the visitors

8. The trend of visitors since 1994 has been on a steady increase especially with
more visits making repeated visits.

9. The most used means of entry to Rwanda is by road, which accounts for 51.6%.

10. A greater number of visitors who come by road use the Rusumo border post
compared to other entry points.

11. The trend of visitors coming by air through Kanombe International Airport has
been steadily on the increase on monthly and yearly basis.

12. The type of transport that is commonly used by visitors while they are in Kigali is
public minibus, which accounts for 55.5% of the visitors.
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13. Most visitors (25.2%) complained that transport in CoK was expensive and the
majority 67.1% spent up to 30 USD per week on transport alone.

Airport service
Year Flight Number Luggage (kgs) Arrival (kgs) Departure (kgs)
1994 534 20173 1811582.2 23560.5 2244.4
1995 10986 83834 7956556 34115 6314
1996 6565 80736 4861508 4572 800
1997 7760 120356 4350118 5158 10081
1998 9913 123597 4706723 99682 13236
1999 11557 131689 2092984 103277 1288837
Total 47315 560385 25779471 270364.5 1321512.4

14. Most visitors (61.2%) prefer staying in hotels to any other type of accommodation.

15. As far as location of accommodation in CoK is concerned, Nyamirambo has the

greatest number of accommodation facilities (29.7%).

16. What influences most visitors’ choices of accommodation is the proximity (43.3%)
to sites to be visited and nearness to business centres.

17. The general rating of the quality of accommodation in CoK was “Good”.
18. Most visitors (23.8%) cited poor, or lack of basic facilities such as telephones,
TVs, Internet, air conditioning and others.

19. The expenditure on meals on daily basis is mainly between 11 to 20 USD for
about 38.7% of the visitors.

20. Visitors’ expenses on souvenirs are mostly between 31 to 50 USD from 43.4% of
the visitors who come to the CoK.

21. The highest percentage of visitors (30%) who come to the CoK enjoy travelling as
their interest/hobby.

22. Among the attractions visited all of them were mainly rated good and very good.

23. Most visitors spend on special events/gatherings and this was less than 40 USD.

24. The accommodation service is the area where the majority workers are employed.
Of these employees 68% are unskilled or semi-skilled.

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25. Most prevalent qualification among the workers is ordinary level (senior 4) which
accounts of 26%. The percentage decreases as you go higher until they become
zero for masters and Phd.

Recommendations

1. The City of Kigali in conjunction with the relevant tourism departments should
improve on travel and tourism information. This information can be disseminated
through methods such as brochures, tourist information bureaus, and use of
media.
2. Improve on accommodation and facilities in the City. A section of tourists
complained on the poor state of facilities such as telephones, internet and air-
conditioning. Though these services are outside the direct control of the
government of the CoK, they require due attention as part of the broader provision
of infrastructure facilities in the City.
3. Development of natural and other attractions. Most people travel to Kigali for
business or as a hobby. The CoK should strive to make their stay more enjoyable
by developing the available attractions. Natural attractions include the beautiful
scenery and hills while other attractions include crafts markets and historical sites
(the house of the first German governor and others).
4. The CoK should promote domestic tourism. This can be done by creating public
awareness of the existence of attractions within the City. These can be
supplemented by the creation of a Museum in the City.
5. Education and training. Most of the employees were untrained. There is need for
training service providers in tourism and tourism-related areas such as hotels.
6. Improve public transport systems, road conditions, safety of passengers and
ensure road worthiness of vehicles on roads
7. Improve the safety and security of visitors.
8. Promote the making and marketing of art objects and other cultural valuables

4.1.2 Industry
Objectives

The present study is focused on assessing and evaluating the following:

1. Industry, in terms of employee profile, number, status and remuneration, etc.
2. Requirements for public infrastructure like, roads, electricity, power, water, gas
and transportation support
3. The markets served by industry, so as to assess the potential for export and/or
import substitution
4. The overall potential of industry in the CoK and the impact of the growth in this
sector on the overall development and sustainable economic growth of Rwanda.

Findings

1. It is found that only two out of 23 Industries are jointly owned by foreigners and
local nationals.
2. It is found that all the Industries have their main offices located in CoK.
3. A high percentage (47.8%) industries with CoK are more than 20 years old.

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4. It was found that only about 20% of the Industry has been established during
the past 10 years.
5. Past time employees constitute 90% of the total employee and industries in
the CoK.
6. In the industries with CoK 63.6% are skilled labourers and rest are unskilled.
7. It is found that about 88% of employee’s are getting salary less than 100.00
Frw per month.
8. In terms of change in employment about 57% industries reported change,
however more than half of this change is reported as a decrease in
employment during the past 5 years.
9. It was found that about 68.4% of the total raw materials consumed by
industries is imported, where as export from these industries is only 11.9%
10. About 82.6% of industries are producing consumed goods.
11. It was found that 39.5% and 34.9% industries prefer using trailer travel and
small truck/van respectively as means of transport
12. Almost all the industrial unit are satisfied with their present location.
13. It was found that public transaction access safari nearness to market and
safari have been ranked in order of preference as factors influencing choice of
site locations from industry.
14. Only 10 out of 23 industries have complaints associated with environmental
problems.
15. More than 70% of Industrial units are presently paying taxes where as more
than 85% of the industrial units are not satisfied with the kind of services
provided by CoK especially the provision of electricity, water, and legal
requirements like authorization to start construction.
16. It was found that 41.7% of the industry consider various factor such as land
infrastructure, energy, labour, capital and business environment as problem to
their business whereas 31.8% consider them as advantages to their business
and 26.5% are neutral about these factors.

Recommendations

1. Encourage foreign investment through privatization or sale cash strapped

industries

2. Improve working and terms of service in industries

3. Promote import substitution through selective support to these industries Establish

a bureau of standards to look into the quality and standard of goods produced in
Rwanda and those imported.

4. Maintain good access roads and drainage in the industrial area.

5. Make available general public services e.g. electricity, water, etc. and remove
delays in legal procedures before one can start a factory.

6. Promote awareness of safer environmental conditions and as assist industries in

solving most pressing issues.

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4.1.3 Commercial services
Objectives

1. Commercial Services, in terms of its age, employees’ profile, number, status and
remuneration, growth in employment, etc.
2. Requirements for public infrastructure like, roads, electricity, power, water, gas
and transportation support
3. Factors affecting the growth of commercial services and constraints faced by
these enterprises.
4. The overall potential of commercial services in the CoK and the impact of the
growth in this sector on the overall development and sustainable economic growth
of Rwanda.

Findings

1. 78.6% of the commercial services are owned by nationals and rest 21.4% are
owned by foreigners.

2. Majority of the commercial services (i.e. 73%) are less than 5 years old.

3. Only 15.9% of commercial units have other branches.

4. It has been found that 38% of commercial services were in the same business
before coming to their present place of business in the CoK

5. It was found that 71% of commercial services have taken facilities on rental
basis and rest 29% are run from self-owned buildings and establishments.

6. It was followed that 82.6% of the commercial services are managed by their
owners and only 16.4% are managed by hired professions.

7. Full time employment was found to be 88.4% and only 11.6% of employees
are working as part-time basis in the commercial services.

8. It was found out that 32.3% reported increases in employment at an average

rate of 10-15 % per annum whereas 24.9% reported decrease in employment.

9. About 65% of the commercial services consider CoK as good place of doing
business where as only 6.5% rate CoK as poor for doing business.

10. In terms of location, it was found that 26.6% consider public transits Access,
safety and parking, respectively as most important factors to their business
locations.

11. In terms of effectiveness for future growth of business, it was found that
25.5%, 20.7% and 17.1 % are in favour of improvement in the appearance of
the district / area, most parking places and direct marketing respectively. In

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 respect of plans for business size, it was found that 86.6% would like to
expand their business activities in the CoK.

Recommendations

1 The prevalence of infant industries calls for support from the government and CoK
while encouraging the private sector to invest in this area
2. Provide security to commercial centers especially at night.
Make general services available to businesses (e.g. electricity, water, etc)
3 Remove the delay in legal procedures before one can start a factory or any
business venture.
4 Remove the hawkers who are already taking away the business of many
shopkeepers to create a good working environment for business owners
5 Encourage the employment of workers who have knowledge of business.
6 Improve safety and parking facilities for better access to business premises.

4.1.4 Construction industry

Objectives

The study of construction industry in Kigali City was done with the following aims.

1. To assess the condition and potential of construction activities in the City of Kigali.
2. To find out the numbers of construction firms and their capacity in developing
Kigali City.
3. To find out the number of people employed by construction firms and their
qualifications in this field.
4. To find out the sources of raw materials used for construction in Kigali City.
5. To determine the areas served by construction firms in Kigali.
6. To assess the business environment and market for construction firms in Kigali
City.
7. To assess the problems faced by construction firms and ways of solving them.

Findings

1. The average age of construction firms in Kigali City is 5 years with little
specialisation.
2. The market segment served is only 25%. This shows that there is a big
potentiality of economic growth in the construction industry.

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3. A big number of people are employed in the construction industry but the majority
are the labourers and technician with low skills in construction. There is a need
for more engineers and other skilled professionals in construction industry.
4. Labour cost in Kigali City is cheap when compared to total costs in construction
because it is less than 50% of total costs.
5. 87% of materials used in construction are acquired locally.
6. The average wages in construction industry are lower than the average wages in
other industries because the majority are unskilled labourers.
7. Transportation of raw materials is mainly by small trucks and vans (68%).
8. There is lack of foreign firms investments in Kigali.

Recommendations

1. The construction sector has only young firms therefore the CoK together with the
government of Rwanda should promote investment in their sector.
2. Encourage investors so that the market served is increased particularly in
specialised market segments.
3. Embark on training of skilled professionals to handle more advanced construction
requirements.
4. Improve the sources of locally available raw materials to serve the construction
industry.

4.1.5 Information Technology (IT)

Objectives

The objectives of conducting a survey of Information Technology services in Kigali

were:

1. To assess the availability of technical workforce qualifications in various

professions.
2. To asses the levels of IT services available in private and government institutions
in Kigali City.
3. To find out the size of the market segment served by 18 firms in Kigali City.
4. To assess the level of application of IT business and government operations.

Findings

1. The average age IT firms is 2 years in Kigali City. This shows that the IT industry
is still young but growing fast.

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 Services offered by ICT agencies

70

60

50
P
e
r
40
c
e
n 30
t

20

10

0
Internet and E- Secretariat Education Other services
commerce
Services

2. All the IT firms are based in only two districts of Kacyiru and Nyarugenge.
3. The number of computers in educational Institution is still very low indicated by
the computer statement ratio of 1:20 in the higher learning institutions of KIST,
KIE. The demand for more computers and other IT facilities is higher than the
capacity to meet this demand.
4. Only 42% of total employees in IT firms are professionals. There is a need for
more qualified employees to spread the IT services in all districts of Kigali City.
5. IT services are mainly for Internet & Educational services hence business takes
the lowest percentage among others (18%).
6. The wages in IT firms are higher compared to other areas because it requires
technical skills.

Recommendations

1. Encourage investor to invest in this growing modern industry,

2. Introduce IT facilities in all districts of Kigali City.
3. Embark on serious training for IT professionals to match the market demand.
4. Encourage the business sector use this modern technology to boost their
productivity.
5. Increase the student ratio in educational institutions to cope with the training
demand.

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4.1.6 Agriculture
Objectives

1. The expanded City of Kigali boundary incorporates substantial agricultural land

and accounts for a significant portion of the local economy. The main objective of
the study is to profile the sector’s contribution to the local economy and identify
strategies to effect a more market-based agriculture enterprise.
2. Other related objectives include the evaluation of the base conditions of the sector
(its nature – crops distribution, land holding and practices, the people involved,
and constraints) and its growth potential.

Findings

1. The distribution of crops grown in CoK are mainly traditional food crops with sweet
potatoes and beans being most dominant, at 60% and 64% of the respondents,
respectively. Other crops grown include Irish potatoes (12%), Soya beans (21%),
maize (38%) and cassava (16%).
2. The larger proportion (63%) of crops is consumed and the little remaining (37%)
is sold in the local produced market. This is a slightly favourable status, given the
fact that nationally only about 20% of the farmers’ produce is offered to the
market.

Food crop production nationally in year 2000

Crops Tons Percentage
Sorghum 155,106 2.7
Maize 62,502 1.1
Wheat 6,444 0.1
Rice 11,363 0.2
Beans 215,347 3.8
Peas 13,839 0.2
Ground nuts 15,341 0.3
Soya 7,034 0.1
Bananas 2,150,501 37.6
Irish potatoes 954,418 16.7
Sweet potatoes 1,025,573 17.9
Taro 88,235 1.5
Cassava 812,442 14.2
Vegetables & fruits 204,625 3.6
Total 5,722,770 100

3. The average land acreage per farmer-households is 0.731 hectares out of which
an average of 0.680 hectares is cultivated. The average land holding for dairy
farmers is 23.75 hectares.
4. The proportion of farmers with livestock is 34% while those without is 66%.

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5. The distribution of livestock is dominated by small runcrats, (goats, 39% and
poultry, 24%) followed by local cattle (14%) and exotic cattle (13%). There is a
significant level of dairy farming in the outlying districts of the City.
6. 61% of the farmers were female and 39% males.
7. Most farmers (64%) had not received any formal education. Those with primary
schools were 19% and secondary schools were 18%.
8. Only 31.5% of the farmers had other forms of employment while majority (68.5%)
did not, and were dependent solely on agriculture.
9. Among those with outside employment, 72% was in self-employment, 15% in
private sector and 13% in government employment.
10. Fifty one percent of the respondents practice modern farming. However, this was
in the form of crop rotation (64%), terracing (31%), improved seeds (44%) and
irrigation (68%).
11. There are observably low levels of agricultural improvement, continued use of
hoes on small pieces of land, low fertilizer use on depleted soils.
12. On land ownership, 30% had land titles and 24% with city approval documents,
leaking about 46% of respondents with out any formal ownership. These had
either no proof of ownership (10%) or were using other peoples’ land (36%).
13. The constraints to agricultural development in the City were close to those faced
nationally. The farmers named access to inputs (62%), inadequate farmland
(53%) and land tenure system as the major constraints to agricultural expansion.
Others were the limited knowledge of farming methods (23%) and low producer
prices/marketing (23%).
14. Intervention policies as ranked by farmers include land issues (79%), credit issues
(69%), and access to low-price inputs (61%), training/skills (48%) and
prices/marketing (26%).
15. Agriculture as an economic sector in Kigali City contributes to food supply and
employment. The sector employs 5% of the households with a bigger proportion
(73%) being women. It also provides the food needs of these households while
the surplus is sold to the food market in the city.
16. The City of Kigali is suitable for the activities of agriculture because of ample
rainfall, under-utilised land especially in swamps and lowlands and the immediate
market for food. The potential for export oriented agriculture derive from the City’s
location at crossroads to neighbouring Cities and the location of Kanombe airport.

Recommendations

1. Determine the legality of agricultural activities in the City. Presently, there are
limited restrictions on agricultural activities and our recommendations assume no
medium term legal impediments until the demand for industrial land grows
sufficiently.
2. Resolve land issues (by availing more farmland and secure tenure), credit issues
(availability and cost) low cost inputs and training/extension services.
3. Apply strategies to move farming from subsistence to a market-based enterprise.
The strategies, which are also being pursued at national level, include:

Promotion of land tenure security, improvement of land use and encouragement of

land markets.
Development of private sector-led markets for inputs and products.
Improvement in soil conservation and management.
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 Improvement in farming methods through research.

4. Acknowledge the CoK as a location for agriculture in respect of MINAGRI efforts.

The ministry, in liaison with CoK, should designate personnel to oversee
agricultural activities in the City.
5. Lay stronger emphasis on land issues, put in place methods that increase land
productivity and also appreciate agricultural activities as one of the survival
strategies of poor people within its boundaries.

4.1.7. Government and institutional activities

Objectives

1. To assess the existing employment conditions (wages, skills, etc) and general
growth potential of these sectors.

Major Findings

1. Out of the total population of Kigali City (604,966 persons), the active population
(aged 10 years and above), 50% are employed in the various sectors of the
economy. Of these, 13% are employed in the government sector (enquête socio-
économique, 2000).
2. In the CoK, formal employees during the year 2000, were 4,556, of which the
government and its institutions employed 36.4%. The private sector employed
62.3% of formal employees, (Caisse Sociale du Rwanda).
3. Of the formal employees in the CoK, 63.4% were in social services, 12.8% in
commercial services, 8.4% in manufacturing industries and 7.6% in public works
and construction.
4. The trend of total formal employment, during the last five years, in the CoK has
been increasing except between 1999 and 2000, when it declined. The level of
total formal grew by 119% during the period 1996-2000.
5. The level of remuneration is used as measure of the welfare of employees. It
indicates the standards of living and has implications for the market for goods and
services. The study found that 63% of the employees earn a monthly salary of
less than 100,000 Frw, 25% earn between 100,000 and 300,000 Frw, while only
12% earn more than 300,000 Frw. The expenditure in the CoK is such that 79.8%
of the households spend under 100,000 Frw in a month.
6. The interpretation of the above is that the average salary in the CoK, while
favorable compared to the GNP per capita of US$ 260 (about 120,000 FRw),
remains low and, given the size of the formal sector, is insufficient to form a
driving market for goods and services.

Recommendations

1. The CoK, being the capital, is the natural home for most government ministries
and departments. It also attracts a major share of private investment and income-
generating activities. To maintain this status, the CoK should provide quality
services such as infrastructure development and maintenance (roads, water,
electricity, and telephones) as well as appropriate policies to enable the

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 development of office and residential buildings. The availability of serviced land
for industrial and other investments should also be given due attention.

2. The CoK needs to monitor the changes in both government and private sector
employment and conditions as they all impact on its economy in terms of tax base
and as a market for products from other economic sectors. The CoK will need to
understand the causes of any such changes and, where necessary, intervene
either directly or indirectly through contacts with the relevant institutions.

4.2. Evaluation of the informal sectors

This section covers:
(i) The study on enhancing women’s capacity to participate in local economy.
(ii) Enhancing the capacity of small and macro-business contribution to the
national economy, and
(iii) Poverty reduction and Street Children.

4.2.1 Enhancing women’s capacity to participate in the local economy

(Informal sector) in Kigali City:

Government recognizes the contribution that women make towards the development
of the national economy. In line with this, the study sought to enhance their
participation by addressing the following issues:

1. Eliminating discriminatory legal provisions and institutional practice;

2. To improve water supply, health care, and home energy supply to reduce
constraint on women’s participation in the labour market;
3. To raise access to formal and informal education including training to build
entrepreneurial capacity, and adult education and training programs for women in
rural area i.e. entrepreneurial capacity, other skills
4. Strengthen women’s organization at national and grassroot levels to take a lead
role in educating women and defending their rights;
5. Ensuring the participation of women in decision-making structure at all levels;
6. Changing perception of women’s role in society through education and training.

Based on the findings of the study, the following should be set in motion in order to
enhance the women capacity to participate in the economic development of CoK:

1. In order to remove obstacles to women’s access to and control over productive

assets, wealth and economic opportunities, government should continue to
support institutionalization of a special credit guarantee fund to promote women’s
economic activities through the country.

2. Affirmative action policies and programs should be introduce in order to enable

men and women to have equal access to economic and employment
opportunities. In particular special attention should be paid to affirmative action
programs for disabled women, and female headed household.

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3. Budgetary allocation in different sectors should be analyzed to ensure that all
poverty alleviation programs are gender sensitive with gender responsive
budgetary allocation in all development sectors.

4. Government should encourage and support the collection and use of gender
desegregated data to design effective policies with aimed at reducing gender
inequalities and eradicating poverty.

5. Special attention should be paid to creating an enabling environment and

developing programs that encourage women to participate in the conservation of
the environment, management of water resources and development of
appropriate housing.

6. Regular surveys should be undertaken to take stock of the housing situation to

determine the nature and extent of such constraints with a view to eliminating
them, and use the survey information as a reliable gender-based data on
ownership of shelter and capacity for acquisition in order to ensure women access
to housing.

Eliminating discriminatory legal provisions and institutional practice

1. All areas of personal law, law of succession and any other law that discriminate
against women should be reviewed in order to ensure that the laws of the country
provide adequate protection against all forms of violence and the abuse of Human
rights.

2. Gender sensitive research should be promoted into the laws of Rwanda as a

basis for establishing legal literacy and equal human rights advocacy campaigns

3. Women should be encouraged through education, counseling and practical

examples to liberate themselves from their psychological fears and come out
strongly onto the political platform, as the needed catalyst for radical change from
a tradition-bound world order to a new world of greater freedom, greater equality
and broad opportunities.

4. Education strategies which focus on the cultural component of the legal system
should be promoted in order to reform the legal system with a view to empowering
women. There is also need to re-educate people away from cultural belief which
are gender-discriminative.

To improve water supply, health care and home energy supply to reduce
constraint on women’s participation in the labor market

1. Government should take measures to introduced water facility and home energy
supply and health care facilities to reduce constraint on women participation on
labor and to integrated this into the overall socio-economic development
framework, especially in the education, agriculture, commerce, industry,
environment, water and micro and small scale enterprise development;

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2. Government will strengthen primary health care (PHC) in general and maternal,
child health and family planning (MCH&FP) services in particular to ensure the
active participation of men and women in health care planning and provision.

3. Measures will be introduced to ensure that gender-related health and population

concerns are integrated into the overall socio-economic development framework,
especially in the education, agriculture, commerce, industry, environment, water
and micro and small scale enterprise development.

To raise excess to formal and informal education including training to build

entrepreneurial capacity, and adult education and training programs for women
in rural area i.e. entrepreneurial capacity, other skills.

Introduce gender sensitive measures to enhance the enrolment and retention of

women in the teaching profession at all levels, including management position in the
education system

To introduce affirmative action measures aimed at enhancing opportunities for boys

and girls at all levels of education and in all institutions of higher learning and training
in order to reduce the gender gaps in education.

Enforce special measures to promote the reduction of dropout rates of girls and boys
at all levels including for example, the elimination of all forms of harmful ritual/cultural
practices that hinder girls’ and boys full participation in education.

Establish and promote literacy programmers both formal and informal and informal
that are gender responsive and easily available, for the disadvantaged groups in poor
rural and urban areas, with specific emphasis on women especially.

To establish specialized Entrepreneurial Development programmed especially for

Women in Small business Development, Book-Keeping, Managing finance and other
short term training programs based on entrepreneurship in order to build
entrepreneurial capacity and other skills so that women can start their own business.

Ensuring the participation of women in decision making structure at all levels

1. Establish and support capacity building and gender sensitization programs to

encourage women to take an active part in decision-making at all levels.

2. Develop and utilized a monitoring framework with specific indicators to measure

the level of participation and advancement of in the political and decision-making
process in all sectors and at all levels.

Changing perception of women’s role in society through ICT training and

media

1. Government will support the initiatives of different organization in setting up

women’s information networks.

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2. Gender sensitive institutional mechanism for monitoring the media to ensure that
it plays a positive role in its portrayal of women will be instituted.

3. Government will support the development and implementation of an advocacy &

gender sensitization programmed for the media.

4. Community level telecasters will be established in order to enhance accessibility

to ICTs grass root levels.

To strengthen women organisation to represent women interest

1. We must strengthen women organization such as pro-Femme and their member

organization so that the women interest can be represented very well.
2. To encourage the integration of women into the economic development, through
the setting up of a loan fund, in order to back up women’s income generating
activities and to provide for a technical support in the working-out and
management of projects.

3. To facilitate access to the bank loan by women with low income and who do not
have a bank guarantee.

4. To stimulates women’s entrepreneurship in Rwanda.

5. To strengthen women’s awareness of their economic rights, mutual solidarity and

trust.

6. To improve women economic empowerment policies by lobbying and advocacy.

7. To further strengthen women bank like DUTERIMBERE in order to promote

entrepreneurship.

Women and agriculture

1. Mechanism to enforce the existing gender sensitive agriculture sector reforms like
land redistribution will be put in place.

2. Special attention will be paid to the subsistence sector to ensure increased

access to agricultural extension services, availability of credit by disadvantaged
farmers, particularly women, gender sensitive marketing services, and appropriate
and affordable gender sensitive technologies.

3. Government reinforces gender sensitive training in agricultural institutions.

The girl and the boy child

1. Government will adopt affirmative action measures to increase the enrolment and
retention of girls and improve their performance in the education.

2. Nom-formal education programmers will be design to meet the needs of children

out the school system including child heads of household.
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3. Effective mechanisms and procedures will be designed and put in place to ensure
that boys and girls have access to health education, especially to sex and
reproductive health education, as well as counseling services.

4. Advocacy programmers, aimed at integrating children, parents and communities

in gender sensitization for change of negative attitudes to the girl child and to
women in general, will be initiated through the country.

Enhancing women’s capacity to participate in development

1. Various affirmative actions that have been undertaken in key sectors with the aim
of reducing women and girls historical and social disadvantages. These include
setting up of women’s communal funds and credit guarantee facilities to improve
women’s access to financial and other resources.
2. Local structures have been reviewed to enhance women’s visibility from the
grassroots unto the national level. Through women’s councils for example, women
specific development needs and concerns are articulated, communicated and
mainstreamed in different sectors at different levels.

4.2.2. Enhancing the capacity of small and micro business’s

contribution to the national economy

The study assessed the role of small scale business in the economy and how they
can increase their capacity in contributing to the national economy. The study
covered the following:

ƒ Characteristics and organization of small- scale business in Kigali city.

ƒ The market situation
ƒ Licensing and tax requirement
ƒ Mini- financing

The following are the findings of the study:

1. Age of Enterprises

Age of the enterprises refers to the number of years through which the enterprise has
been in operation. The study shows that more than 65% of the enterprises were aged
from 1-5 years, 30 % of the enterprises were aged between 6 and10 years, and the
rest 5% were aged from 11-15 years in all districts. This shows that most of the
enterprises are very young.

2. Age and gender of the owner of the Enterprises

The study shows that the age group which is actively involved in small-scale
entrepreneurship is 21- 40 years which constitutes about 85% of all small - scale
entrepreneurships in all districts. Fifteen of the small - scale entrepreneurs are either

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children under 20 years old or over 50 years old. All age groups participate in this
sector.

3. Gender of the owner of the Enterprises

The study reveals that both males and females participate in the small-scale
enterprise sector in all districts. This is because economic hardship affects every
body regardless of gender. However, the most affected are female-headed
households.

4. Organisation of the Business

The study shows that most of the small - scale businesses in all districts are
organised on either an individual basis or as a family business. Table B23 reveals
that between 50% and 77% small businesses are operated individually, while
between 10% and 33% are operated on a family basis. Between 5 and 17% small
businesses are organised through associations/co-operatives. Only Nyarugenge
district has a high percentage of associations (35%). This shows that people need to
be sensitised to form associations at district level.

5. Registration of Small Scale Enterprises ( Are they registered ?)

The study shows that not all small - scale businesses are registered in all districts. It
reveals that in Gisozi district up 94% of the small business were not registered, while
at Nyarugenge 50% of the small business were not registered. In the rest of the
districts of Kigali, the percentage of small business which are not registered ranges
between 45% and 90%.

6. Reasons for not registering businesses

The study indicates that the main reasons why the small businesses are not
registered are ignorance of the requirements and lack of money. The study shows
that in Butamwa district, 75% of small businesses are not registered because of
ignorance, while in Kicukiro district the figure is 70%. The rest of the districts lie
between 40 % and 65%. Lack of money for registration ranges between 15% and
41%, another reason revealed by small businesses for failure to register is the long
licensing procedure.

7. Number of people employed and income generation

The number of people employed by small - scale enterprises determines the size of
the enterprises. The study reveals that most of the small businesses employed
between 1 and 5 people. It shows that the percentage of businesses in different
districts employing 1-5 people ranges from 52 to 87%. This is consistent with the
hypothesis that small businesses create many employment opportunities in the
economy.

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8. Income generated per month by small business at district level

The study reveals that small scale - businesses generate sufficient income to finance
economic activities at household level, while indirectly contributing to the total GDP.
The study shows that in Nyarugenge 95% of small businesses can earn up 100,000
Frw per month, while in Gikondo 60% of small businesses can earn up to 100,000
Frw per month. This implies that small businesses assist in poverty reduction at the
households’ level, e.g. they contribute to paying school fees, renting houses, buying
clothing, etc, at household level while contributing to the total GDP of the nation.

9. Entrance to business in an Informal Sector in different districts in Kigali

Various reasons were Financing of small business (percentage)

mentioned as barriers District Source of finance
to entering business. Loan from Owner’s Family
The study revealed that bank/Credit Equity Contributio
the most common Society n
barrier to entrance into Kanombe 12 62 26
business was lack of Nyamirambo 12 73 15
Nyarugenge 20 55 25
capital. In almost all
Kacyiru 11 83 5
districts, they
Gisozi 5 84 11
mentioned that another Kicukiro 8 72 20
constraint to starting Gikondo 10 44 46
business was lack of Butamwa 0 80 20
places /areas to CoK 10 69 21
operate, Since district
authorities have not set aside areas specifically for operation of businesses and as a
result whenever they set up a business they are harassed by city authorities.

10. Location of informal Sector Enterprises in Kigali by district

The study shows that up to 90% informal sector enterprises in Kigali City are located
in unauthorised areas, scattered all over the city. It shows that most of small business
are either located in residential areas or on open space. In Butamwa district, for
example, 100% of informal sector businesses operate in residential areas. Only in
Nyarugenge district does a large percentage of the informal sector enterprises 63%
operate in commercial areas, because this district is in the centre of the city.

11. Financing of the Informal sector enterprises in Kigali City

The study analyzed the sources of financing informal sector enterprises. It was
revealed that more than 80% of all informal sector enterprises did not have access to
credit in all districts in Kigali City. The study also identified what were the sources of
financing informal sector.. Three main sources of finance were identified, namely
Owners equity; - this was the main source, whereby study shows that , up to 84
percent of Informal sector enterprises in Gisozi district 83 percent, in Kacyiru district
80 percent, in Butamwa district were financed through individual / Owners equity.
Other sources of finances included the contribution from family and few loans from
either credit Societies /Associations or Banks.
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12. Source of loan for the informal sector in Kigali

Source of loans for informal sector (%)

District Bank/Credit Society Association Friends Others
Kanombe 20 45 35 0
Nyamirambo 15 58 27 0
Nyarugenge 35 50 15 0
Kacyiru 23 67 10 0
Gisozi 5 85 0 10
Kicukiro 5 85 10 0
Gikondo 5 85 10 0
Butamwa 0 0 0 0
Cok 15.4 67.9 15.3 1.4

The study shows that in the case of those who did receive loans, most of the credit
came from associations which they formed in the district. Some credit, particularly for
women came from banks particularly COPEBU which assists women to improve their
living standards in. Other credit came from friends. At Butamwa district the
businesspeople did not borrow because the district was only recently included in the
Cok. This implies that there are very few credit facilities available to small
businesspeople. The study shows that of those who managed to get credit a big
percentage in all districts were able to pay back the loans.

13. Marketing of products from the Informal sector

The study reveals that the informal sector enterprises do not have any outlets to sell
their products Ninety-nine percent of products from informal sector enterprises in
Butamwa district do not have any outlets, 95% in Kicukiro and Gisozi districts, 94% in
Kacyiru district and 93% in Kanombe district.

14. Informal sector enterprises’ access to infrastructure

The study examined whether the informal sector had access to the following
infrastructure: clean water, electricity, road (tarmac), telephones and toilets.
Table B31 reveals that most of the infrastructure in all districts is reasonably
accessible, because most of the businesses are operated from residential homes
house. However, the big problem was availability of toilets, particularly in Nyarugenge
district and Gisozi, where only 20% and 10% of the interviewed businesspeople have
access to toilets. Butamwa district has no telephones.

15. Level of Education of Informal sector Entrepreneurs

The study revealed that most informal sector entrepreneurs are primary - school
leavers. The study shows that up to 76% of informal sector entrepreneurs in
Kanombe are primary - school leavers, 18% are secondary - school leavers and 5%
have no formal education. In Butamwa district, 67% are primary - school leavers and
31% have no formal education. In general, in all communities, those who are involved
in informal sector enterprises are either primary school leavers who have not
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managed secure a job or people with no formal education at all. The study also
inquired if the informal sector entrepreneurs had undergone any training in
management or technical skills. It also reveals that most of the entrepreneurs in the
districts had not undergone such training. However, in Nyarugenge, 63% of the
respondents had undergone some technical training.

16. Availability of machinery /equipment

The study investigated the availability machines/ equipment needed by small - scale
businesses to process their products. The study shows that there were very few
machines owned by informal sector enterprises, and between 75% and 93% of small
- scale businesses did not have equipment in all districts. The informal sector
enterprises therefore use crude methods of producing their products, which affects
the quality.

Recommendations

1. Institutional Arrangements

The CoK should ensure that the right institutional arrangements are in place. Such
institutional arrangements may include formulation of a policy framework and
strategies to address the constraints which have been identified as impeding the
growth of informal sector enterprises in Kigali. This policy will put forward some new
institutional approaches to encourage and give better support to informal sector
entrepreneurship and also to impose the delivery of services to informal sector
enterprises.

Formation of an Informal sector enterprise organisation to oversee the

implementation of the informal sector policy, e.g. forming a small business council.

2. Regulatory environment

Normally, regulations set out the rules of the market place in areas such as licensing
and zoning, business practices, product quality, safety standards, public health and
even environment protection. Nevertheless, the scope, complexity, and rigidity of
regulatory processes can cause concerns. Regulations on business activities are
often seen as interference that prevents enterprises from getting on with the job.

Informal sector enterprises, in particular, find that regulations are complicated, and
that complying with them takes too much of their time, effort and money, and they do
not serve a useful purpose particularly if they are complex and rigid. Hence
regulations should be flexible, and simple.

3. Education, Training and Informal Sector Entrepreneurship Development

Education and training have a vital role to play in the development of entrepreneurial
movement, motivation and skills. As the study revealed, most people involved in
informal sector enterprises are primary - school leavers or people with no formal
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education at all, moreover, these informal sector entrepreneurs have not undergone
any management/technical skills training. A plan should be made to train these
entrepreneurs, particularly those who are organised in associations. As a long - term
strategy, a close collaboration between the informal sector and educational
institutions should be adopted, e.g. giving of entrepreneurship courses in ETOs or
organising short-term courses on entrepreneurship to unemployed youth/women, etc,
in Kigali city.

4. Access to finance

Access to finance is the most critical issue for informal sector enterprises. Many
informal sector enterprises lack the necessary financial equity to start a business or
to expand an existing one, many lack working capital to keep the business running,
and they normally borrow from either family or friends (sources that are soon
exhausted). Most financial institutions are averse to providing credit to informal sector
enterprises for a variety of reasons, including lack of, collateral, insufficient equity
contribution of owners, inadequate management records, lack of or poorly prepared,
business plans, and the negative perception which financial institution generally have
of the informal sector enterprises. The Cok authority should identify or form a
financial institution which will provide small loans to informal sector enterprises
without demanding collateral, particularly if the entrepreneurs are organized as
associations or co-operative societies.

Since micro enterprises have no formal sources of finance, and they have been
unable to secure adequate finance, CoK should improve their ability to generate
funds, e.g. through efficient tax collection, and use part of the funds to finance the
informal sector enterprises, as a means of improving the capacity of small
businesses.

5. Market opportunities and location of micro business

Lack of market opportunities as well as limited awareness to market information has

always been a major constraint to small businesses developed in Kigali City. The
CoK should promote linkages between informal sector and the formal private sector
so that their products can be feeding the formal private sector as raw materials.

CoK should try to locate a place in every community and put all necessary
infrastructures (like water, telephones, toilets, and first aid centre) and charge a
reasonable rent to small businesses to operate there, instead of harassing the
informal sector enterprises, without locating them a place.

CoK should link small business entrepreneurs with government institutions

(especially if the entrepreneurs are organised by associations or co-operative
societies) so that they can tender, e.g. supplying of office equipment, maintenance of
cars, welding works.

6. Technological support

The technological needs of informal sector enterprises are extremely diverse,

reflecting the wide range of products and services that are provided by the
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enterprises. At one end of the spectrum, there are some high – tech small businesses
which need the most modern technology to compete effectively in provision of
services (e.g. internet cafes). In contrast to these businesses, in Kigali there are
some micro enterprises which rely upon labour- intensive and low - skill operations
and are unable to obtain, let alone to afford, basic technology.

It is more realistic for the CoK to provide support for the labour- intensive and low -
skill operations rather than for high technology small business. The CoK should
attempt to encourage innovation and the acquisition, adaptation and dissemination of
technology to micro business. The CoK can use its ETOs and particularly Kigali
Institute of Science, Technology and Management (KIST) for that purpose.

Roles of Different Stakeholders in developing the informal Sector Enterprises

in Kigali City

1. The Government Role /City of Kigali authority

According to the above-mentioned strategy, the role of government/ CoK will be

exercising in the field of creating favourable conditions for the development of the
sector, and forming of the regulations a legal framework of existence of informal
sector enterprises. The major government / CoK role will be:

1. To identify and analyse the constraints to the development of the informal sector,
and consistently adapt intervention mechanism to the problems that need
resolution concerning the socio- economic issues of the informal sector operators.

2. To establish conditions that allow the development of the informal sectors, e.g.
provision of location where they can operate, with necessary infrastructure,
reduction of taxes and other levies, provision of credit facilities, provision of
information of where to obtain equipment and tools, etc.

3. To favour informal sector development by arranging appropriate training,

equipment, raw material supplies, market.

4. To establish necessary infrastructure for the sustainability of the informal sector.

5. To provide active assistance to the co-ordination of the promotion actions of

informal sector development.

6. To sustain, evaluate and keep statistics of different programmes and projects for
the informal sector.

7. To provide structures for an organisation of informal sector enterprises.

8. To incorporate the existence of the operation of the informal sector in the future
plan of government / CoK (city plan).
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2. The Role of Informal Sector Enterprises as economic operators in CoK

Informal sector operators are among the actors in socio- economic development of
Kigali City. They have a great role to play in finding the solutions for day-to-day socio-
economic problems.

They have a great responsibility to define their needs, rank them by priorities
necessary for aid, and seek support for complete their effort.

They have a major role to play in the planning of development activities for the
informal sector in Kigali City.

For the informal sector operators to become true partners, they have to organise
themselves into co-operative bodies or associations so that they can have better
representation at district level, regional and national level.

Organising themselves in co-operatives or associations can strengthen their

capability of obtaining funding.

To follow the legal framework or regulatory procedures established by PVK especially

on licensing, and registration, location of operations, health and safety requirements,
environmental conservation, etc.

3. Roles of other Stakeholders in informal sector development in the CoK

Other Stakeholders include NGOs, projects and donors who are operating in the
communities of the CoK. These constitute the driving force for development of the
informal sector. Considering the importance of their resources, they have a role to
strengthen the capacity of the informal sector by advising and giving both technical
and financial assistance. They may be called to bring their assistance to the informal
sector, in the fields of training, commercialisation, project studies, research,
organisation and capacity - building.

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4.2.3 Poverty reduction and Street Children
Poverty is a world-wide undesirable phenomenon that all over the world societies in
constant struggle to eliminated. The issues covered under this section include:

• Empowering the poor/protecting human and legal rights

• Increasing access of the poor to social services
• Food for work construction of needed infrastructure

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Findings:
1. Widespread poverty
2. Declining incomes due to lack of capital, lack of market, lack of knowledge and
skills.
3. Unemployment that is growing at a fast rate.
4. Household poverty reduction strategies are constrained by the scarcity of labour,
lack of skills, lack of credit facilities and lack of market.
5. Existence of critical housing problem.
6. Inadequate water supply.
7. Widespread household food insecurity
8. The schools are insufficient most especially secondary schools.
9. There is significant different in levels of education among women and men
heading households.
10. Kigali City has inadequate and inaccessible health services in situation of high
morbidity and ADS prevalence.
11. Sanitation is generally poor in Kigali City.
12. Sanitary infrastructure such as toilets and sewage channels are inadequate in the
city.
13. The problem of street children was recognized from 1987 however, as a result of
events that occurred later such as war, the 1994 genocide, violence massacres
etc. there was a rapid increase of street children in the city.
14. Poverty has been defined as a major cause as well as other socio-economic
factors.
15. Previously it was uncommon to see young adults as street children, and now the
trend is there is an increase of this productive age group seen with babies in the
street.
16. Illiteracy is high among the street children and this makes it difficult for them to
realize their potential in contributing to the economic development of the City.
17. Street children are vulnerable to all kinds of diseases including HIV and Aids, they
are exposed to harassment, abuse as well as sexual abuse.

Recommendation

1. The health services coverage should be increased: new health units should be
built in the currently least served areas.
2. Health units should deliver integrated health services to improve equity and
increase patient satisfaction.
3. Intensify the fight against AIDS. Young people in the city and vulnerable groups
are among the groups highly at risk.
4. Expansion of water supply infrastructure and increasing the volume of water
available for use.
5. Improvement of the garbage collection: this can be done by fostering the
development of private garbage collection companies.

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6. Compost manure making technology should be developed to utilise the garbage
in the city productively and create employment.
7. The problem of adequate personnel in health, education and other departments
should be addressed: a manpower development plan should be elaborated
outlining procedures for recruiting, training, performance evaluation, job security,
promotions, and incentives.
8. Effort should be make toward solving the housing problem, settlement areas
should be identified, and land allocated for constructing houses.
9. The access of the population to safe and clean water should be improved. Studies
should be carried out to identify short and long term solutions.
10. The number of schools and especially secondary schools should be increase to
serve areas poorly or not covered at all.
11. Adult education programmes should be developed to increase literacy rates
among the population.
12. The situation of women heads of household should be carefully studies. Their
families are more vulnerable than male headed ones. They should receive
additional support (school fees, exemptions from paying for health services etc)
13. Other vulnerable groups should be identified and given support.
14. Savings and credit programmes accessible at the grassroots level should be
developed and credit facilities made available to entrepreneurs. The procedures
and regulations to access such facilities should be flexible.
15. Training in various skills should be offered for organised groups/associations
engaged in certain activities.
16. Vocational or skills training for the urban youth should be emphasised.
17. The provision of basic social services such as education and health should be
improved.
18. Developmental programmes should be set up for vulnerable groups. Kigali City
should facilitate a partnership role with the private sector.
19. The problem of street children is complex and can cause insecurity. Kigali City
should set up centres from where street children can learn various skills as well as
make products for income generation.
20. Any effort should be made towards solving the problem of unemployment as soon
as possible.
21. Training of people in specialized services such as psychiatry, social work,
counseling, psychology to acquire competent skills in order to be able to work with
this target group is vital.
22. Facilitation of the programs to address the education needs of street children,
reintegration with families, placement in foster care etc.
23. It is important to create society awareness about the problems of street children
and promote cooperation among various role players.
24. Services offered by the various centers for street children needs to be
coordinated.
25. Policy on the protection of children and responsible parenthood should be in
place.

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26. Policy on population issues and programs such as family planning at all levels of
the society need to be a national priority,
27. A budget should be provided for the following services; education health, family
reintegration and foster placement.

4.3 Assessment of government influenced factors affecting

economic growth.
This part of the study covered Land, Infrastructure, Housing, Transportation, Energy
and Water Supply, Labour and Business Environment:

4.3.1 Land

Objective

To assess how the city of Kigali properly and productively regulates, develops, and
disposes of and value land as a strategy of encouraging economic development,

Findings

1. Lack of well designed and documented procedures on land acquisition,

management, and tax scheme; as well as poor record keeping which has led to
multiple allocation of land plots with all its problems,
2. General lack of information and data needed to support decision-making function
for planning and revenue administration. (one of the greatest impediments to
revenue collection),
3. Collection of plot fees and house rents is made difficult because information on
location, ownership, payment status, etc is hard to obtain
4. Difficulties in searching for files just to determine who owns what piece of land.
Arrears on land rent have accumulated partly because the general public
perceives the city of Kigali as lacking the will and ability to reconcile records and
follow – up on old cases,
5. Lack of land surveying equipment and the related documentation facilities,
6. Insecure land tenure, a slippage that makes occupiers hesitant to invest and put
land to effective use,
7. Lack of basic services like roads, water and power has apparently impaired the
motivation of the potential people in initiating housing construction in new areas,
8. There is high congestion of applicants for plots due to the present central system
of plot allocation
9. Lack of well-qualified personnel: there is only one qualified topographer in the
urban physical planning directorate

Recommendations

1. Introduce well designed procedures on land acquisition, management, and explicit

tax scheme, but also improved data collection and recording. It should be possible
to carry out this task, either with computer or without.

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2. Provide secure land tenure so as to encourage people to invest in land, for higher
economic returns and improved land status. The city of Kigali should be
committed to ensuring that land is used productively and in a sustainable manner
by establishing clear guidelines for land use through the land act.
3. Implement legislation to remove the statutory discrimination against women’s right
to own land, and allow different options of the apportionment of property on
marriage.
4. Establish a strong collaboration/partnership with Electrogaz and Rwandatel
(through the Ministry of Energy Water and Natural Resources and the Ministry of
Transport and Communication) for the provision of essential services to
registered/new allocated land.
5. Establish a long-term plan through a database system in order to cater for the
rapidly increasing number of land applicants. This will enable the CoK to offer
efficient services to the customers.
6. Expand land register formats to capture all necessary land data and other
information, and further strive to acquire additional computers to bridge the
deficiency.
7. Inculcate the right attitude of information management systems for people to
appreciate the importance of proper documentation.
8. Prepare for decentralization by sorting and arranging land files with respect of
locations. This can be done with the help of a digital library after the exercise of
computerization. Critical information that we recommend to be put on the
computer as part of the land database system is the following:

i. Location of plot, Sector, Cell

ii. Type of plot: commercial, residential, social, industrial, etc
iii. Size of plot
iv. Type of property on plot
v. Owner of property on plot: full name sand address
vi. Estimated value of property on plot
vii. Current owner of the plot
viii. Date when plot application was received
ix. Date when plot contract was signed
x. Date when plot was marked with ‘born’
xi. Contract particulars
xii. Previous owners of plot
xiii. Date when plot changed hands
xiv. Payment status of plot fees
xv. Any legal issues on the plot

This data will serve as a basis for computerization which will assist in locating the
desired information and files more efficiently and in a systematic manner. Fortunately
this work has already started in some form but of now requires a fresh focus to come
up with a user-friendly database that is wide enough and compatible with other data-
analyzing techniques.

9. Shift processing of application for plots to districts’ headquarters whereby

committees under the department of physical planning will consider each case
within the shortest possible time, because they are familiar with all the locations.

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 This will help solve congestion of applications for plots, which come from all areas
of the city, and hence improve services to clients.
10. Inventory CoK’s buildings and reconcile records accordingly. This can be done by
hiring qualified short-term personnel (e.g. KIST students) to carry out the exercise
for the whole city.
11. Demarcate the entire city’s land and prepare maps for city planning and of
revenue administration. This would facilitate the generation of predictable
revenue on which most operations rely. With the completion of the Kigali urban
planning management and capacity-building project which has established a
Master plan showing roads, waterways and land demarcation, there is a hope that
implementation of the recommendations thereof shall obviate the difficulties in
those respects. Part of the solution of this problem can be well-designed using a
Geographical Information System (GIS).
12. Resolve issues concerning overcrowding of vehicles, street blockages and broken
pavements in the city. With proper management, car parking offers a remarkable
potential for more revenue collection. Aside from revenue collection the ‘pay as
you park’ approach would also ease the traffic load in the city, as some of the
motorists would go for public transport or drive into the city only when it is
absolutely necessary. This could be an opportunity for both the CoK and the
private sector to develop designated commercial parking spaces in the city.
Given the complexity of this activity, and in line with the practice elsewhere in
African cities, this would eventually have to be privatised. Hence a special study
would have to be commissioned to determine traffic flows and the impact on the
city transportation system. Based on conservative estimates, in relative
comparison with earnings in neighbouring countries from this source the CoK
could earn a minimum of 15 million Frw annually from this source.
13. Privatise activities such as advertising services, street parking, street cleaning and
garbage collection. These activities would join those that have already been
privatised revenue collection from taxi parks, maintenance of roads and collection
of ground rent arrears.

4.3.2 Infrastructure
Objective:

To identify and assess the costs of expansion and improvement of various

infrastructure and identifying initiatives that will directly leverage economic growth,

Findings

1. Rwanda is a land locked country where most of the cargo transportation is

handled by road. A railway line would be another means and generally cheaper in
such cases,
2. So far road construction has depended on asphalt as a universal binding agent for
road surfacing, and hence expensive to countries with low economic capacity like
Rwanda,
3. It is in plan by the government to expand airport facilities in order to match the
growing business activities in the country,

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4. Other flight facilities besides Kanombe airport are the Cyangugu and Gisenyi
aerodromes

Recommendations

1. Explore more technical options that are available like use of concrete, either in
slabs or cast in situ. Best examples can be found at homes, petrol stations and
some bus stands. As to why asphalt has been avoided in these respects is
explained by the higher costs involved in their maintenance that become more
expensive in the long term. Research findings by highway officials in America and
South Africa who have been using concrete on their roads for many years show
that the annual cost of commonly used low-priced asphalt surfaces works out at
USD 21,000 more per km than a concrete pavement. Industry sources put the
average life span of concrete road surface at between 25 – 40 years and that of
asphalt between 10 – 15 years. Yet concrete roads may carry considerably
heavier traffic compared with asphalt. In this light, the government of Kenya has
given a go ahead to have as trials 20 km. of concrete road constructed annually.

2. Seek and adapt innovative building techniques which have gained positive
experiences in other countries with focus on costs, durability and availability of the
building materials.

3. Continue with the existing plans for expansion. In the modern times of economic
liberalization we expect more economic activities in the country in the sense of
increased exportation and importation of goods, and also increased passenger
traffic. And so, the existing plans to expand the airport landing capacity, as well as
expansion of the related supportive facilities should gradually be carried on for
real implementation.

4. Improve and modernise the aerodromes at Cyangugu and Gisenyi in order to

attract more business, reinforce and complement the capacity of Kanombe
International Airport.

5. Tighten security at Kanombe airport in live with international standards. In the

wake of increased activities of insecurity through airports, it may not be enough to
attain our economic aspirations in this area by only expanding the airport runway
and its supportive services.

6. Plan for a railway line for the Kigali – Isaka (Tanzania) route. This should be in the
plan for the near future to facilitate cargo transportation as a whole.

4.3.3 Housing
Findings

1. Social infrastructure for Kigali households suffered greatly from wars and
genocide of 1994: from looting and neglect,

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2. As regarding public services like water supply, sewage disposal etc., their
inadequate provision has led to over-use and subsequently into frequent break
down,

3. Owing to their low income, the majority of urban dwellers can neither afford good
quality houses and nor the connections to electricity or water,

4. It’s a paradox that, the government spends large sums of money on few good
quality houses which ultimately go to the few rich, but not to the relatively low
income majority who constitute the main tax base,

5. Housing in Kigali is the responsibility of the household, and to some extent, the
immediate community, a situation which is likely to continue for a long time,

6. The government has not been able to provide adequately in the housing sector, in
part owing to shortage of resources, but also owing to natural inefficiency in such
undertakings where the private sector comes out better

Recommendations

1. The city of Kigali in collaboration with the government should explore the existing
potentials for low-cost housing in the respects of design, building materials and
building techniques with the objective to provide decent housing to the majority
that fall in the low income bracket,

2. Owing to limited resources and shifting roles of the state, the government should
create an enabling environment for the private sector to engage more effectively
in provision of housing to the community, and retain the role of the facilitator,

3. Hence, the government should facilitate and encourage the private sector in the
following manner:

a. Proper housing planning in consultation with the people,

b. Open up new housing areas with provision of basic services like roads, drains
for storm water and wastewater etc.
c. Carry out study on construction process in Kigali to identify areas of
weaknesses of the private sector and provide the necessary technical
assistance,
d. Appreciating and draw up appropriate strategies with positive perception that
low-income settlements and urban growth are inevitable and must be planned
for accordingly,
4. Hence, the government should Facilitate and encourage the private sector in the
following combination of tasks:

a. Proper planning for the City development in consultation with the people
b. Opening up new housing areas with provision of basic services like roads,
drains, water etc.

5. Develop and implement urban renewal programmes to maximise self help-

initiatives,
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6. Prevent at the outset any growth of unwanted structures, instead of their later
destruction that in deed put resources to sheer waste,
7. The government should arrange for accessible credit facility with mechanisms
which are simple but effective in loaning out and getting back repayments. The
loans should be directed to supporting procurement of building materials,
particularly for low income households,

4.3.4 Transportation

Findings

Rwanda is a land locked country where most of the cargo transportation is

handled by road. A railway line would be another means and generally cheaper in
such cases,
So far road construction has depended on asphalt as a universal binding agent for
road surfacing, and hence expensive to countries with low economic capacity like
Rwanda,
It is in plan by the government to expand airport facilities in order to match the
growing business activities in the country,
Other flight facilities besides Kanombe airport are the Cyangugu and Gisenyi
aerodromes

Recommendations

1. Explore more technical options that are available like use of concrete, either in
slabs or cast in situ. Best examples can be found at homes, petrol stations and
some bus stands. As to why asphalt has been avoided in these respects is
explained by the higher costs involved in their maintenance that become more
expensive in the long term. Research findings by highway officials in America and
South Africa who have been using concrete on their roads for many years show
that the annual cost of commonly used low-priced asphalt surfaces works out at
USD 21,000 more per km than a concrete pavement. Industry sources put the
average life span of concrete road surface at between 25 – 40 years and that of
asphalt between 10 – 15 years. Yet concrete roads may carry considerably
heavier traffic compared with asphalt. In this light, the government of Kenya has
given a go ahead to have as trials 20 km. of concrete road constructed annually.

2. Seek and adapt innovative building techniques which have gained positive
experiences in other countries with focus on costs, durability and availability of the
building materials.

3. Continue with the existing plans for expansion. In the modern times of economic
liberalization we expect more economic activities in the country in the sense of
increased exportation and importation of goods, and also increased passenger
traffic. And so, the existing plans to expand the airport landing capacity, as well as
expansion of the related supportive facilities should gradually be carried on for
real implementation.

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4. Improve and modernise the aerodromes at Cyangugu and Gisenyi in order to
attract more business, reinforce and complement the capacity of Kanombe
International Airport.

5. Tighten security at Kanombe airport in live with international standards. In the

wake of increased activities of insecurity through airports, it may not be enough to
attain our economic aspirations in this area by only expanding the airport runway
and its supportive services.

6. Plan for a railway line for the Kigali – Isaka (Tanzania) route. This should be in the
plan for the near future to facilitate cargo transportation as a whole.

4.2.5 Energy and Water Supply

Objective

To develop enabling environment for the city of Kigali for its participation to the
energy policy formulation since costs and availability of energy affects all
economic sectors at all levels.

Findings

1. The sole reliance on a single company for electric power supply has bred
monopolistic tendencies of excessive tariff rates in the regional perspective; which
in a way inhibits investment in the manufacturing sector,
2. Hydro stations are the only source of Grid electricity, and so far there exist on
study on feasibility of other options, for instance thermal generators,
3. Alternative sources of energy like solar energy, bio-mass, wind energy etc. are
almost unknown and so far untapped in the country,
4. In most cases water heating is done on electricity in most towns, a service which
could be done wisely on solar heating and relegate electric power to factories and
industrial operations,
5. There is apparent lack of economic incentives for new ventures in the sectors of
industrial production and the overall service sector owing to unfavourable policies
and inadequate advertising measures,
6. Low economic capacity of the majority to finance electric power connection and
subsequent payments for power consumption,
7. Use of inefficient equipment that consume more power than the expected service:
for instance, most of the electric bulbs convert most of the electricity into heat
instead of illumination,
8. Where available electricity is sometimes not switched off soon after use,
9. In regard to security lighting in the city, most of the streets are dark at night as the
service is not provided,
10. In regard to water distribution, there are interruptions of the main water lines from
source to heavy consumption points leading to unreliable operations of service,
11. Electrogaz is deemed as the sole dealer in water supply and hence a disincentive
for community initiatives in isolated locations,
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12. Exists in the city lack of drains for both storm and waste waters

Recommendations

With the collaboration of the Ministry of Energy, Water and Natural Resources,
devise a clear policy regarding the conducive environment for Independent Power
Producers (IPPs) to invest in Kigali. Once this is implemented the IPPs will operate at
competitive tariffs which may attract investors and at the same time offer reliable and
quality services for the people of Kigali.

Create an incentive framework to stimulate export and enhance confidence of the

private sector, reform public enterprises and increase the efficiency of the utilities and
of the financial sector, liberalise the labour market and implement well–targeted
measures aimed at alleviating poverty. Restructuring ELECTROGAZ would improve
the efficiency of the largest public utility of Rwanda and address pricing issues as a
key sector of the economy. Owing to extreme weaknesses of ELECTROGAZ in the
sense of developmental, technical and financial status; the new sector strategies, as
well as institutional reforms should aim at improved performance in these respects.

Promote activities that will increase people’s access to electricity and promote
effective and efficient use from the household level up to the level of commercial
activities.

There are literally thousands of different types of technological and operational

measures that can improve energy efficiency. They cover residential and commercial
buildings, industry, transportation and the electric utility sector, as well as the
distribution of energy to end-users. It should be noted that, many of the efficiency
improvements could be implemented much more economically that, new energy
supplies could be developed.

Foster conservation by voluntary or mandatory institutional changes.

Adapt a “least-cost planning”, a process for examining all electricity–producing

and electricity – saving options and selecting the mix that minimizes total consumer
costs. Since conservation investments often cost considerably less than what a utility
would otherwise have to spend in order to generate electricity, least – cost planning
can benefit energy producers as well as consumers.

Experience has shown that, many other utilities even find that investing in
conservation measures on behalf of their customers–for example, supplying them
with high-efficiency bulbs at little or no cost –proves financially beneficial. In this way,
the utility saves in the short run through reduced operating expenses, and in the long
run by not having to build new multimillion dollar power plants to satisfy expanded
demand.

Whereas energy planning previously focused primarily on expanding conventional

energy supplies, in the future in Rwanda should consider improving energy efficiency

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as an economic option towards same goal. The plan and initiative to connect the
national Grid into that of the SADEC countries underlines the concept even more.

Accelerate provision of streetlights in the city in the coming few years to serve the
core role of security this must be a priority of the city to bring down the crime rate.

Transform Electrogaz into a private operation under a contractual framework that

would include the necessary incentives and expectations. Full autonomy in the new
operation is required even though the electricity tariffs require government approval.

Rehabilitate and continuously maintain the existing power generating stations in

order to sustain the present supply and perhaps serve some of the rising demand.

Promote and support private investments in general power expansion at the

present stations, as well at new stations that include small and mini hydro; without
disregard of thermal – power generation as another alternative. Thermal-fired power
plants or fossil – fuel fired may operate on coal, gas or diesel–cases which are
already found in the region and could be investigated.

Initiate and promote energy –saving programmes that include use of more
efficient equipment; and country-wide, make people more aware of possible savings
from intelligent usage. Use of solar energy for hot water on a wide scale could offset
a considerable amount of electric energy that the country would require for industrial
production and to thus an aspect of higher priority for any developing country.

Support relevant groups, organisations and institutions in research work and the
applications of alternative energy sources by more people. The off – the shelf options
are: solar energy for lighting, water heating, fruit drying; use of bio-gas for cooking
and lighting; and use of wind energy for electricity and for pumping water.

Ensure that water supply lines from water storage sources into the city are of
large diameter size and without interruptions on the way so that water delivery is
rapid enough and commensurate with the demand which exists from the house hold
to the factory up to industrial level.

Promote local participation, planning, and community management of water

delivery services in terms of administration and fiscal decentralizations, including the
expansion of water production outside the ELECTROGAZ perimeter.

Plan, survey and build sewer systems for waste water, and appropriate drains for
storm water, as one of the measures to improve the city’s cleanliness and sanitation,
as underlined in the master plan 2020. The department of public works in
collaboration with the departments of physical planning should prepare guidelines on
wastewater re-use and discharge and these to be followed in order to forestall risks of
environmental pollution, which may be hazardous.

Before disposal, wastewater requires treatment, and this fact should apply to
households and communities. Wastewater can be treated to levels safe enough for
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economic re-use, such as irrigation and maturing of crops. Stabilization ponds and
lagoons have remained for so long common ways of handling wastewater for
communities, a habit that must change into adaptation of re-cycling techniques that
contribute to rational water use.

4.3.6 Labour

Objective:

To determine the education levels of CoK staff and their relevancy to their jobs
(degree of discrepancies). To identify type of training needed for different types of
specific skills, and whether skills can be offered by any of the local institution

Findings

Out of 135 CoK staff interviewed, only 34.8% had diploma/degree level.
Majority of respondents around 70% refused to comment on the relevance of their
jobs. However, it was observed that majority of respondent need immediate training.
The overall comparison of salaries between CoK employees and employees from
other organizations reveals that CoK pays less salary to top officials. However, it
pays more salaries to the middle level officers.
It was observed that CoK offer only overtime and company sponsored events as
incentive schemes to their employees. This had caused most of qualified staff to run
to the other organisations, which offers more attractive packages.
It was observed that CoK has adopted SUREMED health scheme, whereas other
organizations have health insurance to ensure their employees and their next of kins.

Recommendations

Increase the percentage of diploma/degree holders from 34.8% to at least 75% in

the next five years.

Reassess all job requirements with the purpose of:

Reallocating staff according to their qualifications
Designing human resource development programmes

The fact that only about 24% of the staff agreed that their education is relevant to
their jobs this leaves a lot to be desired. Basically, this implies that such a situation
affects both efficiency and effectiveness of service delivery in the city of Kigali.
Reevaluate departmental as well as organizational needs and goals.

Base organizational analysis on overall performance.

Conduct job analysis i.e. a broad analysis of the job requirement, analysis of the
particular skills to do the job, a detailed study of the responsibilities, duties and tasks,
analysis of the knowledge and skills required by the jobholder, and description of the
training requirements for the job.

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 39. Understanding the need for competitive salaries in order to attract and retain
highly qualified staff. It is advisable to know what other competing
organizations offer for similar or equivalent job positions before setting
salaries.

40. Introduce new incentives such as:

• Subsidized plots for staff
• Housing loans for all staff
• Car loans for top-and middle-managers
• Contribution to the staff group insurance
• Subsidized company cafeteria-to help staff get nutritional meals at
reasonable prices and also reduce the time spent looking for restaurant
around the city.
• Savings and credit cooperative society to encourage thrift amongst
employees.

4.3.7 Capital
Objective: To assess investment by private/public sector in CoK so as to bring
about environmental improvement and infrastructure development

Findings:

1. CoK is the major contributor to its budget from different sources of revenue. There
was no central government funding for the past five years.
2. Due to lack of planning documents, it was difficult to assess which areas were
given priority and what extent the City had been able to implement its plans
successfully.
3. It was observed that, properties invested in areas where infrastructure such as
roads, electricity, water are poor their rents are far below market rates.
4. As of now there is no single venture capital in Rwanda.

Recommendations

1. CoK should lobby to the central government for its contribution to the CoK budget.
2. The CoK Should maintain proper budget and accounts records which may be
available for public use
3. Provide information to business on matters such as vacant premises and sites,
local market conditions, housing availability and sources of finance.
4. Use trade fairs or trade delegations to ensure the message is not restricted to a
domestic audience but also reaches potential overseas investors.
5. Conduct further studies to determine the trend of private investments and their
altitudes towards the City of Kigali.
6. Provide local authority-owned land for industrial and commercial development.
7. Supply on-site infrastructure (roads, drainage, etc.)
8. Form partnerships with the private sector through local enterprise agencies to act
essentially as a business development organization and to assist both new and
existing enterprises by providing information and business counseling. The Local
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 Enterprise Agency (LEA) has to coordinate with stakeholders such as RIPA,
CAPMER, and FRSP to avoid duplication of effort.

4.3.8 Business Environment

Objective:

To assess microeconomic policies, government efficiency/effectiveness/transparency,

public services, regulatory requirements and procedures and business service support.

Findings:

1. Rwanda exports an average of US$ 16 per capita compared to an average of

US$100 in Sub-Saharan Africa.
2. The heavy dependency on two export crops makes the country vulnerable to
external price shocks.
3. The level of private investment is very low, at 8% of GDP in 1999.
4. It was observed that Rwandan Franc has continued to depreciate relative to other
major currencies especially the US dollars for the past four years.
5. Rwanda’s foreign exchange resources come from donors and are disbursed
through the government.
6. Little export diversification- Rwanda rely heavily on tea and coffee for foreign
exchange earnings
7. Performance of exporters to keep their currency in foreign currency rather than
Rwandan Francs.
8. Foreign exchange restrictions laid down by the National bank of Rwanda do not
entice foreign currency holders to keep their monies in Rwanda.
9. Banking sectors are inefficient resulting into huge NPL and bigger margin for
administrative expenses.
10. Interest rates are very high; however, inflation rates are very low.
11. There is a lack of capacity for implementing privatization programme.
12. There is a poor demand for State Owned Enterprises for sale.
13. There is a lack of capacity and financial management skills in the banking sector,
especially in credit management and recovery.
14. Government arrears to the private sector, estimated to be up to 18 billion Frw.
15. There is only one type of bank saving account in commercial banks in Rwanda
that is fixed term deposit.
16. As of now there is no financial services available in Rwanda.
17. Whereas the theoretical setting of the decentralization process in Rwanda in
general and CoK in particular appears to be on the correct path, there is a
potential danger of failure because of total lack of preparedness.
18. One of the problem hindering the implementation of Medium Term expenditure
Framework (MTEF) is improper capacity building in both core and line ministries.
19. The condition of public toilets in CoK is alarming. This is due to the fact that there
are very few public toilets as compared to the number of people who spend their
day time within the City. Furthermore the number of public toilets needed in the
City is not known hence it is difficult to plan for their availability.

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20. About 86% of the households with CoK have toilets whereas 14% have no toilets.
Given the number of households without toilets, it means that the impact from
their waste disposed is big enough to affect those with toilets.
21. Out of 20 trucks needed for effective trash garbage collection within the City, only
8 trucks are available currently. This explains why different wastes are scattered
in most of places of the City.
22. There is no data available on solid waste characteristics for each district.
However, it has been estimated that the population within the City produces about
450 tones of garbage per day and only about 60% of the garbage is collected.
23. It was observed that, sewage and drainage systems almost do not exist within the
City.
24. Rwanda is being regarded by foreign investors as a risk country due to its history
hence it becomes difficult to market Rwanda as a product.
25. It takes long time for parliament to pass the bill even if is urgent.

Recommendations
1. There should be concrete steps towards improvement of the image of the country
that is positioning Rwanda as a place to invest in.

2. Do whatever possible to ease the burden of NPL on banks, while the banks
deserve prudence in their management. Both measures will help reduce the
interest rate charged on loans.

3. Improve on both monetary and fiscal policies so as to create a more stable

environment.

4. The foreign exchange regulations should be revised with the purpose of manning
availability of foreign exchange with minimum bureaucracy

5. Diversify the economy and reduce the country’s reliance on coffee and tea.

6. Produce more to send to the export market. The BNR should improve on its
foreign exchange regulatory policies.

7. Increase efficiency in the banking system.

8. Establish a free port at Kanombe Airport so as to stimulate business with

neighbouring countries such as Tanzania, Uganda, Congo, and Burundi.

9. Assist in negotiating with neighbouring countries such as Uganda, Kenya and

Tanzania, so that Rwandan businesspeople can start using railway for
transportation of goods instead of road transportation, thereby reducing
transportation cost.

10. Speed up the privatisation of the energy and telecommunication sectors so as to

make them operate efficiently with the purpose of reducing factor costs.

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11. Improve the legal system and speed up the establishment of a commercial court
in order to protect banks from the increase of Non-Performing Loans (NPL) which
can help decrease interest rates.

12. Involve the private sector in setting new tax rates, and also in harmonizing local
taxes with income taxes.

13. Reduce the number of holidays that lead to the closure of businesses such as
markets where perishable goods deteriorate, thus causing huge losses to the
owners. Study the impact of these holidays on the business community.

14. Establish permanent institutional support such as Small Industries Development

Organization (SIDO) (instead of CAPMER which is a project in nature). This will
help to foster the growth and development of small industries in the long term,
through coordination of the following functions: co-ordination, industrial
development, and extension services.

15. Speed up the establishment of new Enterprise Zones, in which the occupants
shall have to strictly abide to the EZ regulations.

16. In addition to being a member of MIGA, Rwanda should also think of joining Africa
Trade Insurance Company so as to ensure maximum security to investors

17. Furthermore, the CoK should take purposeful measures to build its name in the
sub region, and beyond-aiming at making CoK one of the best destinations in the
region

18. With the fact that an average of only about two people visits RIPA’s office per day,
this calls for promotional campaign both within and outside the country with the
purpose of making it known to a larger public

19. The CoK officials should streamline administrative procedures that delay the
securing of the land needed for investment as well as title deeds, If possible,
special section should be established at CoK HQ with the purpose of ensuring
that all documents needed by investors are available within the shortest possible
time.

20. Devise a comprehensive policy that will create a conducive environment for the
micro finance sector.

21. Reduce the 2.5% fee charged to loan applicants who seek the CoK’s
recommendation regarding collateral ownership within the city. This measure can
accelerate investments within the city as loans will be cheaper.

22. Create an umbrella organization that will coordinate all the micro finance
organizations at national level. This organization should be charged with setting
standards and acting as a spokesperson for it members.

23. Recapitalise UBPR through a one-time capital injection to ensure the long-term
viability of the institution.
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24. Ensure, through the office that is charged with coordination of micro finance, that
the list of participating organizations and their respective areas or beneficiaries is
updated so that it will be easier to monitor their success or failure to render
necessary assistance when required.

25. Approach organizations such as USAID, which have had experience in other
countries, for technical advice.

26. Practice the financial management disciplines of capital reserves accumulation,

delinquency control, loan loss provisions and liquidity management.

27. Encourage commercial banks to establish a micro finance portfolio.

28. Make a concerted effort at the national level to mobilize deposits, because it has
been proved that more small loans can be generated from savings made by small
depositors.

29. Ensure that all roads are passable throughout the year, and that essential
amenities such as water and power are available to make all places equally
habitable.

30. Streamline all administrative procedures that delay land allocation and issues of
title deeds.

31. Revise the issue of Umuganda on Saturday, so that instead of asking people to
contribute physical labour, employers can pay cash for the employees and that
money can be used to hire machinery, for example for road construction.

32. Educate the business community about the types of local taxes they are
supposed to pay to CoK.

33. Collaborate with KIST in terms of solid waste management, solar energy, rain-
water harvesting, food processing, as well as the areas of wood-efficient stoves
and bread-ovens.

34. Introduce a certificate of deposit (CD) market and ordinary savings accounts with
interest. The certificate of deposit (CD) has an advantage over time deposit in that
is negotiable, that is the holder can sell it at any time before the maturity of the
deposit in order to obtain cash. On the other hand, the advantage of a CD to the
bank which issues it, is that the deposit remains with the banks for fixed period of
time and the funds are not withdrawable until the time deposit matures (i.e. like an
ordinary time deposit). In addition, the introduction of ordinary savings account
with interest will attract more people to save their money in the banks since they
are assured of withdrawing their money as they please while the outstanding
balance attracts interest.

35. Ensure that promised financial transfers are carried out. Presidential order No
08/01 of May 20th, 1997, relating to the transfer of various central government
functions to CoK, transferred a number of functions and responsibilities to CoK.
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 The same law stipulated that on top of human and logistical support, the portions
of the budgets that covered such transferred functions would correspondingly be
transferred to the CoK. This has not happened as was intended. This has exerted
additional pressure onto CoK. Whereas some staff members were transferred
from relevant central government departments, the budgets that covered the
transferred functions have not been transferred to date.

36. Experience so far has shown that where the central government has promised
financial transfers to CoK or allocated funds in the national budget meant to
benefit CoK, the actual transfers have been untimely inadequate or simply not
done at all. More commitment is required from government to effectively support
CoK to meet the responsibilities transferred to it. It should be noted that whereas
Kigali City contribute 80% of all the national revenues, only 0.5% of the national
budget has been dedicated to CoK and 8% to all the 12 provinces of Rwanda in
the national budget of year 2001.

37. Conduct a study to determine the appropriate number and places for public toilets
constructions. In addition, attend to the following:

38. All places with a high number of commuters such as markets and bus stands
should be given priority.

39. Existing public toilets should be cleaned regularly so that people can be attracted
to using them instead of going to the bush or other hiding places in the city.

40. Privatise all public toilets under the control of CoK.

41. Allocate land to private entrepreneurs for public toilets.

42. Privatise and commercialise the trash/garbage collection.

43. People should be sensitised through health committees on the importance of

proper handling of their domestic wastes.

44. Install separate containers for different types of waste in waste collection centres,
e.g. a container for organic waste.

45. Implement a strategy concerning waste and garbage that includes the following;

46. Market refuse should be utilized for making fertilizers which can be sold to
gardeners or farmers, thereby creating jobs.

47. Vegetables peels can be used for animal feeding.

48. There should be a study of how waste can be converted into charcoal, while
waste from carpentry works can be used directly as fuel in special stoves.

49. A study should be conducted in all districts to determine the length of places for
sewerage and drainage construction in CoK. Those places which pose more
threat to the public should be the first to be constructed.
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50. Drainage system can be employed in an effort to improve public health by
preventing the spread of malaria. This type of drainage is know as “anti-malarial
drainage” and is provided in lo-lying areas where stagnant water forms an
attractive breeding place for mosquitoes. Efficient drainage of these areas
eliminates this health hazard and often results in further development of these
areas after improvement by the drainage exercise.

51. Involve people in identifying, planning and construction of sewage and drainage
systems so that they can see the importance of their participation in solving their
own problems. This will also result in minimizing the cost.
52. People should also be involved in managing the sewage and drainage areas, for
example to make sure that non person obstructs water movement in a drainage
system by disposing of solid waste in the drainage. People can form committees
which will oversee those areas.

53. It should be a precondition that every new business engaged in production should
prove how it will handle waste. Current businesses which do not handle their
industrial wastes intelligently should be asked to close.

54. Ensure that each household has a toilet.

55. People on the importance of having and using toilets.

56. Teach people how to construct and use ventilated improved latrines (VIP) for
improved hygiene.

57. Use the elected representatives in charge of health matters to sensitise the
population within each sector.

58. List of the households without toilets and give them an ultimatum for toilet
construction.

59. Enact by-laws which will take care of minor offences, whereby a household
without a toilet can be fined.

60. Ensure that plots allocated have enough space for toilet construction.

61. Speed up the approval of industrial policy so that it gives a clear direction to the
industrial sector.

62. Assist in introducing information technology in the industrial sector.

63. Link the industrial sector with the local institutes of technology such as KIST so
that operators and technicians can be trained on how to maintain their machines.

64. Introduce Small Industries Services Institutes (SISI) to provide consultancy and
training to small entrepreneurs both existing and prospective. Their functions will
be: to serve as the interface between Central government and Local Governments

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 to render technical support services; to conduct entrepreneurship developments;
and to initiate promotional programmes.

4.4 An analysis of current city of Kigali revenue capacity

including an assessment of opportunities and constraints for
increasing revenue.

The purpose of this part was to achieve the following:

1. To assess the scope, efficiency and effectiveness of existing revenue sources.

Assessing the existing mix of revenue bases and tax rates/services as to
whether each is productive, buoyant, equitable, and worth implementation.

2. To assess the problems of the current revenue collection operations, including

record keeping; guidelines on revenue collection procedures; personnel
training; supporting technology; financial incentives to encourage high
collection rates; and effectiveness of enforcement policies tools and
procedures.

3. To assess the potential for new revenue sources: the opportunities for and
constraints to the establishment of a new revenue structure for CoK, including
a new fiscal relationship with the central government.

4. To assess the potential for introducing alternative financing mechanism with

regard to economic development.

Findings were:

1. The general level of resources mobilised is low and there are wide disparities
in revenue mobilisation among Districts which is due primarily to differences in
economic base, rather than differences in management capacity.

2. The Districts' (Communes) revenue base is very narrow. Revenue is primarily

generated by flat taxes or fees imposed on small -scale activities. In this way,
revenues are static; they do not reflect changes in the level of economic
activity within the Districts. In addition, major economic activities within
Districts' jurisdictional areas are not subject to local taxation and, therefore, do
not contribute directly to the local revenue.

3. Districts that have more significant revenue flows make sizeable transfers to
their development budgets. However, the potential for leveraging additional
resources for the development budget through loans is not part of CoK
development financing strategies. This is due to a combination of a lack of
skills and knowledge, inadequate management systems, and constraining
legal framework.

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 4. Although at present the CoK has a narrow tax base, it has nevertheless not
fully utilised the potential for increasing the revenue. As such the trends in
revenue collection are not in line with the expectations.

5. The biggest source of revenue for the CoK is Urban Physical Planning
Department, which contributes almost FRW 1.3 billion towards total revenue.
But this amount is not even half the potential, which this department can
generate. The department suffers from extreme lack of efficiency and improper
records. It is estimated that the bad filing system and ignorance by the staff is
making the department lose more than one billion in revenue per year.

6. The department of finance and economic Planning is the second biggest

source of CoK revenue. It has potential of collecting FRW 61.7 million per
month. But as per records available, the department collects only FRW 32.2
million per month thus losing almost FRW 353 million per year. Improper
record keeping and collusion between tax payers and tax collectors is one of
the biggest cause of the poor collection.

7. Kacyiru and Nyarugenge were the biggest contributor of revenue during the
year 2000 having 38 and 37 percent share respectively. However the data
according to present district distribution will be available only after the end of
fiscal year of each district.

8. The contribution of Department of physical Planning comes from Kacyiru

followed by Kicukiro. Whereas in Nyarugenge, the Department of Finance and
Economic Planning was in lead. This is primarily due to lopsided development
of commercial activities in various districts.

9. On the expenditure side, most of the expenses were on administration

(salaries) and repair and maintenance, and very little amount is being spent on
development of economic activities, health and education. This is not a
favourable trend for the development of the City.

10. There is no co-ordination between the various departments and one of the
reasons for fiscal in discipline is lack of co-ordination between the
departments.

11. The administrative set up of CoK was decentralised with effect from 1st June
2001.Although it is expected that the decentralised set up will facilitate
revenue collection operations it is however observed that districts are not fully
prepared to meet this challenge. There is lack of trained staff and appropriate
systems are not yet in place.

12. The privatisation of revenue collection operations in Physical Planning

Department had increased the collections during the current year.

13. There is no proper system of maintaining books of accounts and all books of
accounts are incomplete and irregular. Single entry system is dominant and
the staff involved in the account keeping is not qualified at all.
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 14. In the districts, the situation of book keeping is rather dismal, as there are no
staff at all in some of the districts.

15. Although computerisation of accounts is claimed to be present, the software

used is obsolete with very little applications.

16. The recovery of the taxes is quite poor with default rate of more than 30
percent everywhere.

17. There is a lack of proper training system in all types of jobs related to revenue
collections operations in CoK.

18. There are different systems of revenue collection used in CoK. The
Department of Finance and Economic Planning is collecting the revenue
through tax collectors and the Department of Urban Physical Planning, the
taxpayer himself has to deposit the tax on the departments’ bank accounts.
Other department charges levy at the time of providing users services.

19. The collection system is characterised by many weaknesses. Tax collection

efficiency is very low and the morale of tax collectors is quite down due to low
wages.

20. There is no incentive system in place for tax collectors and taxpayers.

21. The enforcement policies though in place are not very effective. One of the
reasons for mounting arrears is the existing enforcement policies which are not
effective and need total overhaul.

22. The awareness of local population with regard to commune tax obligations is
not good. Residents with regard to their obligation for the payments of
services which city of Kigali is providing to them.

23. Although the executives of CoK claims that there is a system for educating
people for gaining support for local taxes, it was found that the effort is too
meagre to make any impact on the tax payers and on the amount collected.

24. Majorities of the taxpayers are dissatisfied with the basic charges.

25. Majorities of the taxpayers are not influenced by imposition of penalty to pay
their tax dues in time.
26. None of the respondents complained about either collection procedure of local
taxes by CoK or the insecurity to their business and property

Recommendations

In view of the above findings, it clear that improving revenue collections will not only
encompass new sources but also revamping the collection methods so as to realise
more finds from existing sources.

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The following are suggestions for revamping the existing revenue collection
systems, introducing new taxes and for new sources of funding.

1. A new property tax should be introduced. This will require that the Physical
Planning Activities be quickly decentralised to the district level so that the new tax
can effectively be charged.

2. Communal tax Law should be prepared and enacted. The current law states the
areas where taxes are applicable, but it doesn’t categorically define the
enforcement tools and procedures.

3. Registration of all business centres/premises should be applied for and approved

at district level. This will move the collection of fees payable for these services
more efficient.

4. The fiscal relationship between RRA and Local governments should be changed
in favour of Districts revenues vis a vis type and size of the business.

5. There should be a standardised accounting system in all districts. Although

computerisation of accounts is claimed to be present, the software used is
obsolete with very little applications. There is need to procure and use latest
accounting software for keeping of accounts. There will also be need for training
in computerised accounting for the existing staff.

6. The door to door tax collections system should be done away with. It is suggested
that the current system should remain for the small-scale business, while the
medium and large scale businesses should deposit their monthly tax obligations
directly in the common bank accounts of CoK and districts. If this is properly
effected it will help in the reduction of collection costs and avoiding collusion
between the collectors and payers, which currently contributes to the diversion of
tax revenues. The system of depositing taxes in the bank accounts will foster the
legal binding for the local tax obligations.

7. If the existing system of collection from door to door is to continue then there
should be a lucrative incentive system in place for tax collectors and taxpayers so
that the scope for misappropriation and dissatisfaction is minimised.

8. The taxpayers were of the opinion that if services are improved, they don’t mind
sharing the cost. But if the situation remains as it is, then the existing tax rates are
high.

9. Tax enforcement policies also need to be substantiated by the appropriate

revenue collection procedures, which so far are missing. These procedures need
to include various penal clauses and incentive system for taxpayers to make the
recovery speedier.

10. Enforcement policies also need to be augmented by appropriate revenue

collection procedures, which so far are missing. These procedures need to
include various penal clauses and incentive system for taxpayers to make the
recovery speedier.
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11. There is a need for proper training system in all types of jobs related to revenue
collection operations in CoK.

12. The local taxes and market dues should be based on the level of activity, volume
of business, area or space occupied and not on the flat basis. The rates of local
taxes should vary from area to area.

13. There should be a wide range of fax Education covering the need and importance
of local taxes through public gatherings/meetings, Radio and TV advertisement.

14. There is need to carry out further privatisation in other revenue collect in
departments. This will help to great extent in increasing the revenue collection
however, placement of existing permanent staff in other jobs will have to be
catered for.

15. Some of the revenue sources such as organised parking system, garbage
collections should be privatised and used as measures for cost effectiveness.

16. Comprehensive data base should to be developed through a complete census to

be undertaken for each sector of the economy so as to know what exactly is in
place and where. The most important components of database in this sense
should include population, employment, and industrial surveys at provincial and
district level so that disparities are eliminated.

17. There are potential areas for increasing the tax base in the city of Kigali. New
taxes can be introduced. In the following areas:
• Fuel Surcharge, Professional Tax, Property Tax, Entry Tax, VAT Contribution

Note that these taxes will only affect those who have the capacities to pay.
It is very important that CoK should initiate some of its own commercial activities
solely or in collaboration with private partners. Establishment of conference
facilities and recreation hall for public can mean initial investment, which can be
sought from banks or other funding agencies, but proper viability can bring
revenue for CoK on long term basis for the local authority.

There has been considerable argument over sharing of the resources collected by
local authority on behalf of the central government or otherwise. The CoK officials
are of the feeling that there should be more funding coming from the central
government for CoK. The process of decentralisation and the procedures for
accounting recently adopted by the government incorporate some of the above
suggestions. As per the recommendations of new policy provisions have been laid
down and it is recommended that they should be adopted by CoK and Republic of
Rwanda.

18. Other sources of revenue are:

1. CoK could initiate its own commercial activities either solely or in partnership
with private individuals/ companies in order to generate more income.
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 2. To the process of decentralisation brought some activities from the central
government to the districts, the central government should also devolve funds
to the CoK for running the decentralised activities.
3. Funds could also be saved by following proper payment procedures for every
item stated in the budget for proper financial discipline. The system of
expenditure has been devised under the 'Financial Management and
Accounting procedures, Ministry of local government ' which must be followed.

4. DONOR FUNDING: For Poor countries like Rwanda donor funds contribute a
lot in the development process. While there is an effort to generate local
revenues for sustainable developments, the efforts to bring donor contribution
should not be left behind. In fact it is important for the CoK to concentrate on
recurring budget from local resources and should seek the development
budget from donor institutions. This type of funding can help CoK in initiating
some big projects in the area of city tourism, development of infrastructure and
increasing commercial activity base. All these activities shall become a source
of revenue in the long run.

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 5. THE KIGALI ECONOMIC DEVELOPMENT
PROPOSED STRATEGIES

The Kigali economic development strategy is based on two orientations: Building a

foundation to compete in the global economy in the future and expanding job
opportunities to reduce poverty now.

5.1. Building the Foundation to Compete in the Global Economy in

the Future
Competing in the global economy will be an important factor in Kigali’s ability to keep
and expand existing businesses, and to attract and foster the creation of new
ventures. To become more competitive, Kigali must be improved, both in its image as
an attractive business location and in the reality.

Kigali must begin now to position itself for a more viable role in the global economy
with strategic investment in infrastructure and education, in improved government
services in support of entrepreneurial activity, and in better marketing of the many
advantages, existing and planned, of doing business in Kigali.

The following agenda for change identifies areas of required improvement. To ensure
the greatest impact, specific strategies and actions must be targeted to those core
economic sectors which have the greatest potential to create jobs, expand the tax
base, generate spin-off development, leverage private funding, and bring in outside
income. Sectors identified by the stakeholders’ council as having the greatest
potential to achieve economic growth include general and agri-business industries,
tourism and hospitality, information technology, and construction.

5.1.1 Agenda for Change

5.1.1.1 Organizing for Economic Development

Economic development is a complex and challenging endeavour for any government.

It requires a sustain commitment of people and resources. Kigali should establish a
permanent Office of Economic Development (OED) to coordinate policy, advocate for
long-term investment, and work with the central government, the private sector and
relevant NGOs to implement strategic initiatives to improve the business climate. An
OED should have the responsibility to argue for and guide the distribution of
resources dedicated to economic development; to provide oversight of physical
planning as it relates to the economic development potential of the city; to lead a
public-private effort to streamline government regulatory procedures and reform the
business tax structure; and, to provide technical assistance for local business start-
ups and expansion. The strategies following comprise what should become the major
responsibilities of the OED’s first year of operation:

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 Strategies

y Act as the voice of the economic development community to the City of

Kigali and its budgetary process on the issues of economic development
support and fiscal stability.
A strong OED can set the agenda, prepare the debate and document the results
of government efforts to improve the local economy. OED can work to assess
and prioritize investment projects and identify potential funding sources. Fiscal
stability is the primary underlying condition influencing the growth of the local
economy. The OED must make every effort to impress upon the City of Kigali
the urgency of maintaining a prudent and transparent financial management
system.

y Form partnerships with the private sector through local enterprise

agencies to assist both new and existing enterprises by providing
information, business counseling, technical support, entrepreneurship
training, and promotional programs.
Government alone cannot achieve economic success. It must work with the
private sector at every opportunity to nurture business activity. “One Stop
Shopping” for information and technical assistance should be a key feature of
the OED as it develops enterprise partnerships to seed and support new
business ventures.

y Oversee the establishment of a Free Port at Kanombe Airport and new

Enterprise Zones elsewhere in the city to stimulate business with
countries in the neighboring regions of central, eastern and southern
Africa.
The OED should begin to exploit the range of economic development tools that
can spur economic growth. Appropriately designed and managed, special
economic development zones such as a Free Port or an Enterprise Zone can
attract international investment and generate significant spin-off activity by
providing economic incentive, location advantage and regulatory relief.

y Convene a council involving the private sector to review and make

recommendations on reforming both the local government tax structure in
regard to business taxes and fees and the general regulatory framework
for business.
The provision of targeted incentives and regulatory relief in critically located
special economic development zones needs to be complemented with a broader
reform program if full economic success is to be achieved.

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 y Convene a council involving the private sector to streamline
administrative procedures that delay the securing of the land needed for
investment.
Land is the most significant economic development asset of the City of Kigali.
The research team identified certain issues associated with making land
available for business activity. These issues must be addressed by an OED led
stakeholders council.

y Oversee the establishment of a commercial court in order to protect banks

from the increase of Non-Performing Loans (NPL), a significant negative
aspect of the business environment in Kigali.
There is an immediate need for intervention by the OED into the problem of non-
payment of loans. The debt situation in Kigali is in crisis. A commercial court
with specific expertise and authority in dealing with financial matters is required
if Kigali is to attract the capital it needs to finance economic growth.

y Work with the Planning Office to ensure that the Master Plan for Kigali
exploits every opportunity to plan for the needs of a growing economy in
Kigali.
The Physical Planning Office is responsible for the improvement of the City and
its future orderly growth and development. The physical development plan, or
Master Plan for Kigali, must afford adequate facilities for the housing,
transportation, work, health and welfare of its population. The OED must work
with the Planning Office to ensure that the pattern of development, the
regulation of land use and the provision of public infrastructure are appropriate
for the needs of the city’s economy.

y Work with the Government of Rwanda to create a more positive

international image of the country as a stable and profitable place in which
to invest.
Marketing the advantages of doing business in Kigali is the primary
responsibility of the central government, but the OED should help to develop the
marketing approach.

5.1.1.2. Strategic Infrastructure Investment

Constrained by severely limited resources, the City of Kigali must be both strategic
and innovative in the provision and maintenance of its public infrastructure. Strategic
investment in transportation systems, communication networks, and water and
energy supplies are particularly critical if Kigali industries are to compete in the global
economy. Innovative construction and energy conservation techniques must be
encouraged so that the limited resources available for public infrastructure are wisely
used.

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 Strategies

y Enhance air transport facilities and support services such to provide the
international and regional air accessibility required for Kigali to compete
in the global economy.
Kanombe International Airport is Kigali’s primary gateway to the world. The city
must begin now to develop a long-term plan to transform the airport into the
dynamic hub of visitors, businessmen and cargo that is reflective of the globally
competitive economy envisioned in this plan. Expanded airline service,
particularly direct service to Europe, is critical for a growing economy.
Recognizing that airport facilities are expensive to build and operate, Kigali must
carefully phase development such to attract new service at a minimum cost.
Kigali can gain resources to invest in airport expansion by exploiting the
potential to capture spin-off development on lands adjacent to the airport.

y Work with the central government to implement the new Kigali–Isaka

(Tanzania) rail line.
Equally as important as expanding airline service is the development of the
Kigali-Isaka rail line, which would provide Rwandan industries with connecting
rail service to the ports of Tanzania. Such service is vital for a land-locked
country like Rwanda. While this project is primarily the responsibility of the
Government of Rwanda, the City of Kigali must ensure that it is doing its part by
planning the route and accompanying terminal facilities such to maximize the
economic use of the new service.

y Lobby the central government to commit to an overhaul of

telecommunication systems such to ensure adequate and affordable
service for a growing economy.
The third link of Kigali to the world is through the Rwandan telecommunication
system. Currently the system is at full capacity. Kigali must work directly with the
Government of Rwanda it its deliberations to consider privatizing operations in
order to expand service while keeping costs affordable.

y Design and implement a phased comprehensive street and highway plan

that will expand capacity in a cost effective manner to support and
accommodate a growing economy and population.
The recently completed general master plan for Kigali calls for a double ring
beltway that would both ease congestion and open up the hinterlands of the
larger Kigali region for new development. It is critical that work begin on the first
phases of this plan. Kigali should prepare detail feasibility assessment of the
costs/benefits of the different phases of this plan so as to better approach
donors for support.

y Seek and adapt innovative building techniques which have gained positive
experiences in other countries with focus on costs, durability and
availability of the building materials.

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 City of Kigali design and engineering staff should work with KIST and other
international sources of current information on innovative small-scale
construction and building technology to improve the quality and reduce the costs
of building and maintaining public infrastructure.

y Work with the Ministry of Energy, Water and Natural Resources, to devise
policies to make the provision of energy supplies for the businesses of
Kigali more competitive.
Kigali must work with the central government to develop a broad energy policy
that ensures the provision of adequate and affordable energy supplies for a
growing economy. Privatization of energy supply and/or distribution, exploration
of alternative energy sources (solar, wind, bio-gas, etc.), and the fostering of
conservation by voluntary and/or mandatory means must be considered.

y Promote local participation, planning, and community management of

water delivery services in terms of administration and fiscal
decentralizations, including the expansion of water production outside the
current ELECTROGAZ perimeter.
New methods must be explored to develop water supplies for Kigali. Community
participation in the planning and management of water delivery services could
supplement ELECTROGAZ activities and help ensure sufficient supplies of
water.

y Plan and build new sewer systems for waste water, and appropriate drains
for storm water, as outlined in the master plan 2020 in order to improve
the city’s cleanliness and sanitation.
Sanitation services in Kigali must be improved if investors are to find Kigali an
attractive place in which to do business. As documented in the master plan,
current capacity is wholly inadequate for the present population and economy of
Kigali, mush less for an expanded Kigali in the future. The general
recommendations of the master plan must be followed up with a detailed
construction and funding schedule that targets key economic zones with needed
improvements. Wastewater treatment programs that allow economic re-use,
such as for irrigation, should be considered.

y Assess long-term requirements for community facilities that will support a

growing economy and enhance the amenity and quality of life for Kigali
citizens.
This topic is discussed in more detail under the section on Hospitality and
Tourism. The basic consideration is that more must be done to enhance the
amenity of the downtown such that Kigali is recognized as an attractive and
interesting African city.

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5.1.1.3 Expanding Education and Job Training Opportunities

The creation of the Kigali Institute of Science, Management and Technology several
years ago was a major step forward in developing the kinds of educational
opportunities that can provide the workforce of Kigali with the skills needed to
compete in the global economy. More must be done at all levels of education, from
basic education at the primary school through university levels, and in lifetime adult
continuing education and training.

Strategies

y Expand the capacity of higher education programs such to increase the

percentage of diploma/degree holders from 35% to 75% in the next five
years.
An aggressive approach is required if the ambitious targets of this strategy are
to be met. However, there is no greater responsibility of government than to
ensure the full education of its citizens.

y Reevaluate occupational skill needs and goals to determine targeted

occupational education/training capacities and required improvements.
The City of Kigali should work with the Ministry of Labor to identify the
occupational needs of the future economy, and then work to address those
needs with new training opportunities.

y Design human resource development programs that will identify and

provide continuous career development training and education.
A competitive position in the fast-paced global economy requires up-to-the-
minute job skills, particularly in computer applications. New programs are
required to ensure that these skills are continuously updated for those that
required it.

5.1.1.4 Land Reform

In developing a long-term economic development strategy for Kigali, the city holds a
significant advantage in that it owns and controls the disposition and use of all land.
Land is an asset that must be fully and wisely exploited. Land stewardship is a
challenging responsibility, but one that can bring many rewards in economic growth
and environmental protection if properly managed.

Strategies

y Streamline land acquisition procedures and processes. Explore the

creation of market value land disposition and property tax mechanisms.
There are several disadvantages with the current land disposition process for
the long-term leasing of land for economic activity. Rather than simply
exercising authority to regulate the use of land as is the norm in developed
countries with private sector land markets, government approval is required for
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 the control of land in Rwanda. This is not a process that allows for the most
efficient disposition of land. At the same time, the current leasing rates do not
necessarily capture the full value of land. Land disposition based on true market
value could gain significant new income both in assets sales and in a new
property tax system based on the market value of land. A market value system
also creates incentives for public sector land improvements as the enhance
value can be captured more easily.

y Establish/implement clear guidelines/regulations for land use.

Too often land use regulation is a negotiated affair. Clearer guidelines are
needed to provide businesses with more certainty as to what is a permitted or
restricted activity for their property.

y Establish stronger institutional mechanisms to ensure land tenure.

Secure land tenure is a prerequisite for long-term economic investment. It can
help provide the collateral for financing, and reduce the risks associated with
project implementation.

y Modernize land record keeping systems.

A GIS (Geographic Information System) land record system for improved land
disposition, tenure and taxing purposes. A basic system was created for the
Master Plan process, but needs to be expanded to the parcel level.

5.1.1.5 Expanding Access to Capital

To foster new and expanded business ventures in Kigali, the city must find ways to
facilitate and expand access to capital. This means developing new sources of capital
for economic activity and fully exploiting existing sources.

Strategies

y Kigali financial management systems should be improved to ensure that

limited resources are efficiently and effectively used for the most critical
public purposes.
Any program to ensure adequate sources of capital for economic activity must
start with an efficient, transparent financial management system for the City of
Kigali. Because overall resources are limited, every effort must be made to
collect, budget and spend funds wisely. Kigali must negotiate a new financial
relationship with the Government of Rwanda to secure stable long-term financial
support through an appropriate balance of central government contribution and
expanded local government tax authority.

y The City of Kigali and its representative economic development agency

should work with Government of Rwanda to use trade fairs or trade
delegations to market investment opportunities to potential overseas
investors.
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 Kigali government needs to become part of the team that markets business
opportunities to the world so that the city can develop a better understanding of
the needs of businesses and incorporate this understanding into public policies.

y The City of Kigali and its representative economic development agency

should pursue donor funding for key strategies of KEDS.
Lacking sufficient internal resources today to do all that is necessary to become
self-sufficient in the future, Kigali must rely on donor support to seed critical
projects. The Office of Economic Development must take a leading role in
procuring donor support by packaging information on the importance and
feasibility of key projects.

y The City of Kigali and its representative economic development agency

should provide businesses and individuals with more readily available
information on sources of finance, and provide assistance in preparing
business plans required to access capital financing.
Business financing can be a complex activity. Government assistance can play
a crucial role in expanding access to business capital.

y The City of Kigali and its representative economic development agency

should assess the cost/benefits of entering capital markets for needed
infrastructure financing.
Properly conceived and managed, the use of long-term capital financing for
critical infrastructure can help secure the funding for critical economic
development support facilities and systems.

y The City of Kigali and its representative economic development agency

should explore the use of various financial incentive tools to provide gap
financing for key economic development initiatives.
Gap financing by the public sector can be a major tool for growing a local
economy, but must be carefully calibrated and transparently justified in order to
be effective.

y The City of Kigali and its representative economic development agency

should create an umbrella organization that will devise and coordinate
policies and programs to ensure a conducive environment for the micro
finance sector.
Micro-finance is a valuable and appropriate tool for small-scale business
activities in Kigali. A micro-finance umbrella organization can work to encourage
commercial banks to establish a micro finance portfolio, share experiences and
help to expand existing efforts by NGOs, and lobby the City of Kigali and the
Government of Rwanda to see the importance of micro-finance in the
development of start-up business activity.

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5.1.2 Targeted Strategies for Economic Development and potential sectors

5.1.2.1 Industry, including Agri-Business

The production of goods is the single most important economic sector in terms of
generating quality jobs and tax revenue. Many opportunities exist to expand
production in Kigali, particularly in agri-business. To make Kigali a more attractive
location for industry, the city has to make available improved land parcels, streamline
government regulatory processes, expand and improve transportation systems and
utility supplies, and provide a better trained workforce. Many of these issues have
been discussed earlier under the Agenda for Change. Additional strategies targeted
specifically in support of the industrial sector are listed below.

Strategies

y Encourage foreign investment through privatization of appropriate

industries.
The incentives and efficiencies of the private sector are critical for any industry
or business that wishes to be competitive in the global economy. Opportunities
to privatize existing government managed industries must be exploited.

y Work with the Government of Rwanda to expand the value-added

processing of agriculture products.
The Government of Rwanda is pursuing a country-wide strategy to create a
market-based agricultural sector that aggressively develops every opportunity to
process agricultural products. The city should work with the central government
to expand opportunities for agri-business in Kigali.

y Promote import substitution through selective support to relevant

industries
Import substitution is a legitimate goal of government economic policy as it
conserves monetary reserves and helps to stimulate new economic activities
and create jobs. Targeted support of import substitution activity can take many
forms and must be carefully tailored to specific situations.

y Establish a bureau of standards to oversee and assist in the improvement

of the quality and standard of goods produced in Kigali.
Rwanda products must carry an image of quality if they are to be competitive in
world markets. A Bureau of Standards can help ensure that products,
particularly for exports, are of a high quality.

5.1.2.2 Tourism and Hospitality

Few tourists come to Kigali. Despite the advantages of Rwanda’s wonderful climate,
natural scenery and anchor attraction of Ruhengeri National Park, there simply is not
enough to see and do, particularly in Kigali itself. As well, attractions and hospitality
services are not well packaged or marketed, and airline service is minimal. Yet,
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opportunities for growth in this sector exist, and the benefits of an expanded tourism
and hospitality sector are significant in terms of creating jobs, expanding the tax
base, generating spin-off development and bringing outside income into the city.

Strategies

y Improve the tourism product—develop new attractions and special events,

and improve and better package existing tourist attractions and events.
As noted earlier, more must be done to enhance the amenity of the downtown
such that Kigali is recognized as an attractive and interesting African city. A
critical mass of nighttime activities —restaurants, shopping, theaters, nightclubs
— should be developed in close proximity as a well lit, secure, attractive and
exciting “scene” where people come to see and be seen. Attractions which
showcase the culture and beauty of the city need to be developed, including
museums, botanical gardens and Special events of international stature should
be developed. Sports and performance venues need to be better programmed
and marketed.

y Enhance hospitality support facilities and services—accommodations,

communication services, meeting facilities, etc.
A tourist must know that if he comes to Kigali he will be well accommodated.
Existing hotels are adequate for current needs, but an expanded tourism sector
will require additional facilities, and the city should encourage a full range of
modern accommodations including an anchor resort complex. The OED should
explore the feasibility of a convention center serving regional demand.

y Improve the tourism and hospitality workforce.

Visitors need to feel at home. Hospitality workers must be better trained to
provide friendly efficient service. Kigali should explore the idea of a Hospitality
Institute that can provide specialized training in short-term, affordable programs.

y Improve access to/from the country, the city, the attractions.

As discussed earlier, airline service and facilities must be enhanced if Kigali’s
tourism sector is to grow.

y Work with GoR to create and market a stronger image of Rwanda/Kigali as

an exciting, safe, affordable visitor destination, and in particular market
Kigali more effectively to potential regional visitors.
At present, there is little if any image of Kigali as a tourist destination. Working
with the broader Government of Rwanda tourist program, the OED should forge
a new image of Kigali as a regional visitor destination.

y Improve travel, tourism and hospitality information for and about visitors.
An improved web site is needed to provide information on the attractions and
accommodations of Kigali.

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5.1.2.3 Information Technology
Access to and proficiency with computers is critical to almost every economic activity.
Thus, Kigali must become a computer literate city. Education programs must begin to
develop a capacity to teach basic computer use at the earliest levels, and more
sophisticated training must be made available to all who require it.

Strategies

y Encourage investment in this growing modern industry by easing

government regulations for establishing IT services.
Government needs to make every effort to encourage the establishment of IT
services so that access to such services are more readily available. Needless
regulations must be repealed.

y Introduce IT facilities in all districts of Kigali City.

Until such time that IT services can be provided solely by the private sector at
affordable costs in all areas of the city, it will be necessary for the Kigali to
support IT facilities throughout the city in support of business activity.

y Expand/improve training for IT professionals.

Programs at KIST (Kigali Institute of Science, Management and Technology) set
the standard for the training of IT professionals and must be expanded if Kigali
is to exploit advantages for careers and businesses in the IT sector.

y Assist the business sector in expanding their use of modern technology to

boost productivity.
Technical assistance in IT can substantially boost the efficiency and profitability
of businesses in Kigali and should be provided through the OED.

5.1.2.4 Construction
Construction is a labor intensives activity. Its capacity to create jobs for skilled as well
as unskilled workers is considerable. Construction activity is dependent on a sound
and growing economy and thus requires a conducive investment environment.

Strategies

y Create a stronger investment environment for real estate/housing

development to create demand for construction activity.
Development financing, land tenure, economic demand and others factors must
be addressed in order for the city to ensure s strong investment climate in which
construction activity can take place.

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 y Expand/improve training of skilled professionals to handle more advanced
construction requirements.
Interviews with construction businesses indicated that the Kigali construction
sector has relatively limited capacity to handle advanced construction
techniques. Most construction workers are unskilled laborers. Better training is
required.

y Work with Government of Rwanda and private sector interests to explore

the potential for innovations with respect to building design, materials and
construction techniques.
Building design, materials and construction techniques appropriate for the
conditions in Kigali should be developed to minimize the import of expensive
materials and generate maximum local economic benefit.

y Expand the sources of locally available raw materials to serve the

construction industry.
This strategy can help to bring down the cost of construction in Kigali and create
new business opportunities in the building materials sector.

5.2 Expanding Job Opportunity Now for All Who Are Capable
Preparing for the long-term growth and expansion of the economy by enhancing
Kigali’s competitive advantages is a primary objective of the city’s economic
development strategy. Equally important is consideration of those strategies and
actions that can create maximum job opportunities in the short-term. Stakeholder’s
discussions have identified three areas where modest government support can
leverage significant increased job opportunity now.

5.2.1. Enhancing Women’s Capacity to participate in the Economy

The capacity of women to fully participate in the workforce is constrained in many
ways. Artificial barriers to women’s right and ability to work must be removed.
Support for women in terms of education and training, access to micro-finance, etc.,
must be expanded.

Strategies

y Remove statutory discrimination against womens’ right to own land.

Land is a valuable asset that can be used for collateral for financing business
opportunities, for economic production and for long-term economic security as
an investment. It is inconceivable that women do not have the same rights to
“own” and inherit land. Reform measures are needed immediately.

y Improve water supply, health care, and home energy supply to reduce
constraints on women’s participation in the labor market.

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 Full time employment can be difficult when basic human needs are unmet. Time
spent carrying water or wood to the home or lying home sick and unattended is
lost employment time. More can and should be done to support women who
need and want to be fully employed.

y Raise access to formal and informal education and training.

A specific effort is needed to accommodate and encourage all women to obtain
the largest measure of education possible.

y Ensure the participation of women in decision-making structure at all

levels.
Participation in government is needed to ensure for the long-term women’s
rights to participate in the economy at and equal level with men.

5.2.2 Growing Small and Micro-Businesses

Stakeholders identified the small and micro-business sector as the one area that can
best create jobs in the short-term. Government must come to understand the
importance of small businesses as generators of economic growth. Government
support is required on many fronts.

Strategies

y Establish an informal sector advocacy organization (small business

council) to lobby for the development and implementation of policies and
programs that support and nurture small business growth and expansion.
Small businesses required a strong organization to voice its interests and needs
to government, to share information and business success stories and to
provide useful common services.

y Develop/provide appropriate public sites and services for micro-business

location
Commercial centers require government led support to maintain appearance,
provide sufficient parking, ensure safety and security, and guarantee affordable
space for business use.

y Develop/provide small business technical assistance programs which

includes appropriate technology and business training opportunities and
access to micro-finance.
Technical assistance programs tailored to small business needs provided within
a modest budget, but can be very effective in nurturing small business
opportunities.

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5.2.3 Preparing Street Children for Jobs
Unprepared for work, street children are a lost opportunity. Programs to provide
realistic training and basic human care can provide these children with opportunity for
entry level work and the benefits that flow with employment opportunity.

Strategies

y Provide safe, secure, sanitary housing in a “family style” environment with

the goal of ultimate placement with a family.
Lost children will remain lost without a nurturing environment.

y Create appropriate low skill job opportunities for part time employment
that can accompany education and/or training programs.
Appropriate levels of employment can be introduced to start abandoned children
along the path to eventual full time gainful employment.

y Provide access for a minimum education and/or vocational training for all
who are capable.
Education is the key to permanent job opportunity.

y Create society awareness about the problems of street children and

promote cooperation and coordination among various role players.
The problem of street children cannot be hidden from public view, but rather
must be addressed openly.

y Strengthen/implement policies on the protection of children, family

planning and responsible parenthood.
Government must make every effort to avoid the problems associated with
abandoned children by expanding and enhancing responsible family planning
and parenthood programs.

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 6. IMPLEMENTING ACTION PLAN

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6.1 Building the Foundation to Compete in the Global Economy in
the Future

6.1.1 Agenda for Supporting Economic Growth – Implementing

Actions

6.1.1.1. Organizing for Economic Development

Implementing Activity Lead or First Steps MidTermActions Long-Term
Contributing (next18 months) (2-5 years) Actions
Agency* (5-20 years)
1.1 Establish an Office CoK 1. Terms of 1. Capacity 1. Capacity
of Economic AEF Operation building building
Development RIPA
2. Human resource
(OED) DAARH 2. Construction
capacity building
Private Sector of the OED
NGOs 3. Equip the office office

4. Sensitise the
population to
OED and its
programs.
1.2 Form partnerships CoK 1. Identification of
and working AEF potential
relationships with OED stakeholders
economic Private Sector
2. Identification of
stakeholders NGOs
fields of
collaboration
3.Memorandum of
understanding
1.3 Develop a First- CoK 1. Establish the
Steps Agenda for AEF Operational Plan
short-term OED
2. Mobilise funding
economic Private Sector
development NGOs 3. Implement the
initiatives plan of action

Kigali Economic Development Strategy Page 85

6.1.1.2. Strategic Infrastructure Investment

Implementing Lead or First Steps Mid-Term Actions Long-Term

Activity Contributing (next 18 (2-5 years) Actions
Agency* months) (5-20 years)
2.1 Plan/design/ build CoK 1. Identification 1. Feasibility 1. Implement the
required airport Airport of potentials studies plan of action
infrastructure and Authorities fields of 2.Resources
facilities MINITRACO intervention mobilisation
Private Sector 3. Implement the
2. Terms of
plan of action
references of
expertise for
needs
assessment
3. Feasibility
studies
2.2 Plan/design/build CoK 1. Economic 1. Technical study 1. Implement
required rail PW feasibility 2. Mobilise fund Kigali –ISAKA
infrastructure RIPA study connexion
FRSP Kigali – Kibuye-
MINITRACO Bujumbura
Private Sector
2.3 Plan/design/build CoK 1. Terms of 1.conduct studies 1. Implement the
required PP references for 2. Implement for inner ring ,
road/highway PW study 3.Terms of outsider and
infrastructure MINITRACO consultancies references and radial roads
for outer and study for the works
inner ring and inter-city 2. Implement the
radial roads highway inter-city
highway
2.4 Plan/design/build CoK 1. Identify the 1. Decentralise 1. Raise the
required PP fields of communication number of
communication PW collaboration at district level access to
infrastructure MINITRACO (each district communication
2. Create a
Rwandatel has an area
memorandum
Private Sector code)
of
understanding
3. Accelerate the
liberalisation
and the priva
tisation of
communicatio
n

2.5 Plan/design/ build CoK 1. Accelerate 1. Use of 1. Use of

required energy PW energy control alternative alternative
infrastructure MINERENA source of source of
2. Mobilise the
MINISANTE energy energy
community in
Electrogaz 2. Sites viability 2. Sites viability
energy
Private Sector 3. Mobilise the 3. Mobilise the
management
NGOs community in community in
energy energy
management management

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Implementing Lead or First Steps Mid-Term Actions Long-Term
Activity Contributing (next 18 (2-5 years) Actions
Agency* months) (5-20 years)
2.6 Plan/design/ build CoK 1. Accelerate 1. Standardise the 1. Sites
required water PW energy control collection and preparation
infrastructure MINERENA utilisation of 2. Mobilise the
2.Mobilise the
MINISANTE storm water community in
community in
Electrogaz runoff water
water
NGOs 2. Sites management
management
preparation
3. Mobilise the
community in
water
management

2.7 Plan/design/ build/ CoK Develop excreta Develop excreta Develop excreta
sustain required PH and water and water and water
environmental PW treatment treatment treatment
sanitation Districts management management management
infrastructure MINERENA
1. Launch the 1. Build sewerage 1. Build sewerage
MINISANTE
septic tank system system
MINITERRE
emptying
Private Sector 2. Build a water 2. Build a water
system in all
treatment treatment
districts
system system
2. Build
sewerage
system
3. Build a water
treatment
system
2.7 Plan/design/ build/ CoK Municipal solid 1. Collection 1. Collection
sustain required PH waste 2. Generate 2. Generate
environmental PW management income from income from the
sanitation Districts the waste waste
1. Construct a
infrastructure MINERENA (infrastructure, (infrastructure,
public an
(continued) MINISANTE treatment, treatment,
accessible
MINITERRE distribution) distribution)
land fill
NGOs
2. Conceive and
implement a
mechanism of
collection of
waste
separated
from the
upstream.
3. Collection
4. Creation of
bio-gas plant
5. Recycling of
solid waste

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Implementing Lead or First Steps Mid-Term Actions Long-Term
Activity Contributing (next 18 (2-5 years) Actions
Agency* months) (5-20 years)
CoK Industrial and 1. Enforce
PH toxic waste mandatory
CL management measures
Districts 2. Implement
1. Identification
MINICOM cleaner
of toxic waste
MINISANTE technology and
and their
MINITERRE end pipe
composition
FRSP 3. Create a control
Private Sector 2. Negotiate council of
measures industrial and
toxic waste
3. Enforce management
mandatory
measures
4. Implement
cleaner
technology
and end pipe

2.7 Plan/design/ build/ CoK 1. Technical 1. Implementation

Storm water
sustain required PH studies of 180
drainage
environmental PW km of drainage
sanitation Districts 1. Feasibility system and
infrastructure MINITRACO study 4805 km of
(continued) MINISANTE ravine
MINITERRE 2. Encourage protection
rain water
MINERENA 2. Commencement
harvesting. of the work
3. Introduce soil
conservation
measures.
2.7 Plan/design/ build/ CoK Community 1. Elaborate 1. Elaborate
sustain required PH mobilisation, training and training and
environmental APBG hygiene, and sensitisation sensitisation
sanitation Districts environmental program program
infrastructure Community education
2. Train and 2. Train and
(continued) Animators
1. Identification sensitise sensitise
MINISANTE
of needs and
MINITERRE
programs 3. Provide capacity 3. Provide
MINERENA
(training and building to capacity
MINALOC
sensitisation) existing building to
Private Sector
NGOs decentralised existing
2.
structures to decentralised
Implementatio
enable them to structures to
n of programs.
sustain the enable them to
environmental sustain the
sanitation environmental
infrastructures sanitation
infrastructures

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Implementing Lead or First Steps Mid-Term Actions Long-Term
Activity Contributing (next 18 (2-5 years) Actions
Agency* months) (5-20 years)
CoK Institutional and
PH legislative
CL improvement
APBG
1. Upgrade laws
Districts
and regulation
MINISANTE
(ongoing)
MINITERRE
MINERENA 2. Sensitisation
Private Sector
3. Regulation
enforcement.

6.1.1.3 Expanding Education and Job Training Opportunities

Implementing Activity Lead or First Steps Mid-Term Long-Term

Contributing (next 18 months) Actions Actions
Agency* (2-5 years) (5-20 years)
3.1 Expand higher CoK 1. Create 1. 1. Creation of Kigali
education DE programs in Conducting Polytechnic
opportunities MINEDUC the universities the University
and other programs
institutions of
learning.
2. Establish
national
accreditation
standards in
this field.
3. Enhance
distance
learning.
3.2 Expand CoK 1. Identify fields 1. Training 1. Construction of
occupational/vocation DE no covered by vocational
al training APBG the Youth training school
opportunities Private Sector Ministry. with dynamic
NGOs program to
2. Enhance
respond on the
existing
market needs
programs.
3. Conceive new
programs.
4. Resources
mobilisation.
5. Training of
trainers
through
training
institutes.

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Implementing Activity Lead or First Steps Mid-Term Long-Term
Contributing (next 18 months) Actions Actions
Agency* (2-5 years) (5-20 years)
3.3 Expand continuous CoK 1. Career 1. Resource 1. Training
career development OED development mobilisa
opportunities Planning identification tion
department needs 2. Training
DAARH
2. Identification of
MINEDUC
possibility of
MIJESPOC
career
MIFOTRA
development
Private Sector
NGOs 3. Monitor career
occupational
needs.

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6.1.1.4 Land Reform

Implementing Activity Lead or First Steps Mid-Term Long-Term

Contributing (next 18 months) Actions Actions
Agency* (2-5 years) (5-20 years)
4.1 Streamline land CoK 1. Policy formulation. 1. Allocation of 1. Allocation
disposition and PP sites of sites
2. Create an Agency for
acquisition processes MINITERRE
the management of
MINITRACO
land
Private Sector
3. Develop a
memorandum of
understanding
among various
interests (land users
and government).
4.2 Implement clear CoK 1. Terms of references 1. 1. Continuing
guidelines/regulations PP Sensitisati upgrading
2. Expertise
on land use MINITERE on and as needed
consultancy
RIPA application
FRSP 3. Procedures and
Private Sector regulations for urban
land use
4.3 Modernise land CoK 1. Acquisition of 1. Continuous 1. Continuous
record systems PP equipment, software upgrading upgrading
ICT and training of users
Private Sector
2. Create a land
cadastre.

3. Provide for user

training and
maintenance of the
land cadastre.

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6.1.1.5 Expanding Access to Capital

Implementing Activity Lead or First Steps Mid-Term Long-Term

Contributing (next 18 months) Actions Actions
Agency* (2-5 years) (5-20 years)
5.1 Improve CoK financial CoK 1. Financial regulation 1. Periodic 1. Periodic
management systems AEF and policy evaluation evaluation
Private Sector
2. Capacity building
(training,
equipment,
software and
database
computerisation).
3. Periodic evaluation.
5.2 Work with appropriate CoK 1. Set up a 1. Explore and 2. Explore
partners (donors, AEF mechanism for conduct and
private lending OED equitable sharing. activities conduct
institutions, GoR Private Sector to expand activities
2. Set up a clear
agencies to expand revenue to expand
mechanism for fund
resources available for CoK revenue
(developmental
for business activities for CoK
budget) .
3. Create an office for
exploration of
expanding the
revenue base.

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6.1.2 Targeted Sectors for Economic Development – Implementing Actions

6.1.2.1. Industry, including Agri-Business

Implementing Lead or First Steps Mid-Term Long-Term

Activity Contributing (next 18 months) Actions Actions
Agency* (2-5 years) (5-20 years)
1.1 Reform OED 1. Identify problems with existing
regulatory CL regulatory processes (licensing,
processes MINICOFIN registration etc.).
MINICOM
2. Draft and introduce reform
MINIJUST
legislation.
Private
Sector

1.2 Develop OED 1. Gain site control of property

Export CL identified by GOR.
Zones MINICOFIN
2. Develop a site preparation plan.
MINICOM
Private 3. Prepare legislation for Export
Sector Zone Regulatory and Tax Relief.
4. Prepare site.
5. Develop a marketing plan to
attract businesses and investors.

1.3 Improve PP 1. Identify needs and gaps in

infrastruct OED existing infrastructure and utility
ure and PW supply.
utilities
2. Prioritise improvements.
within
industrial 3. Mobilize resources.
districts

1.4 CL 1. Identify problems with existing

Review/re OED regulatory processes (licensing,
form the Private registration etc.)
tax Sector
structure 2. Draft and introduce reform
as it legislation.
relates to
industrial
production

1.5 Pursue OED 1. Represent Kigali’s interest (jobs,

opportuniti Private economic growth) in national
es to Sector negotiations to privatise industry.
privatise
industry

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Implementing Lead or First Steps Mid-Term Long-Term
Activity Contributing (next 18 months) Actions Actions
Agency* (2-5 years) (5-20 years)
1.6 MINICOM 1. Develop a Web Site that provides
Aggressively OED a listing of available sites and
market Kigali Private information on the business
for foreign Sector environment in Rwanda/Kigali.
investment in
2. Develop a professional campaign
industrial
to market Kigali to foreign
enterprises
investors.

6.1.2.2 Tourism and Hospitality

Implementing Lead or First Steps Mid-Term Long-Term

Activity Contributing (next 18 Actions Actions
Agency* months) (2-5 years) (5-20 years)
2.1. Improve OED 1. Lobby the
access o/from MINICOM national
Kigali and its ONATRACOM government to
tourism attractions ORTPN negotiate
Private Sector direct airline
service from
Europe.
2. Organize a
tourism
shuttle service
that connects
Kigali
attractions
and hotels.

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Implementing Lead or First Steps Mid-Term Long-Term
Activity Contributing (next 18 Actions Actions
Agency* months) (2-5 years) (5-20 years)
2.2. Create new MINICOM 1.Develop a 1. Develop 1. Complete
attractions/events OED plan for a the first all phases
and improve ORTPN downtown phase of of the
current ones Private Sector entertainme the DED plan.
nt district downtow
(DED) that n
includes a entertain
concentratio ment
n of hotels, district
restaurants; (DED)
theaters and plan.
nighttime
entertainme
nt.
2.Create a Zoo.
3.Improve
historic
sites.
4.Develop an
Events and
Exhibition
Pavilion for
cultural
events and
business
shows.
5.Develop a
tour
package of
KIGALI
attractions.
6.Perform a
feasibility
study of the
potential to
develop a
resort
facility.

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Implementing Lead or First Steps Mid-Term Long-Term
Activity Contributing (next 18 Actions Actions
Agency* months) (2-5 years) (5-20 years)
2.3. Enhance PP 1.Develop a 1. Develop the 1. Complete
package of Kigali OED plan for a first phase all phases of
support facilities Private Sector downtown of the DED the DED plan.
(conference entertainme plan.
facilities, lodging, nt district
dining, shopping, (DED) that
entertainment, etc) includes a
concentratio
n of hotels,
restaurants;
theaters and
nighttime
entertainme
nt.
2.Develop an
Events and
Exhibition
Pavilion for
cultural
events and
business
shows.

2.4. Ensure a well- MINEDUC 1. Develop a

trained tourism & DE technical
hospitality MINICOM institute which
workforce ORTPN provides
Private Sector training
programs
which meet
international
service
standards for
the hospitality
workforce.

2.5. Improve tourist ORTPN 1. Develop a

information OED Web Site with
resources Private Sector tourism and
hospitality
information.
2. Develop a
brochure to
market
Kigali’s
attractions
and hospitality
services.

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6.1.2.3 Information Technology

Implementing Lead or First Steps Mid-Term Long-Term

Activity Contributing (next 18 months) Actions Actions
Agency* (2-5 years) (5-20
years)
3.1. Encourage IT Streamline Work to
investment in the OED regulatory provide
IT sector Private processes adequate and
Sector (licensing, affordable
registration, import electricity
procedures, etc.) supply to
affecting the IT Kigali
sector

3.2. IT 1. Institute a policy of 1. Create a high

Expand/improve MINEDUC ensuring computer school
training for IT DE training programs at dedicated to
professionals Private all schools, public developing IT
Sector and private and at professionals.
NGOs all levels,
elementary to high
school.

3.3. Assist the OED Provide technical

business sector IT assistance to small
in using IT Private and micro
Sector enterprises on basic
NGOs business computer
applications.

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6.1.2.4. Construction

Implementing Lead or First Steps

Activity Contributing (next 18 months)
Agency*
4.1. Strengthen MINICOFIN 1. Create a Guarantee Fund to facilitate development financing.
the investment OED
2. Reform land record keeping and regulatory processes to strengthen
environment for PLANNING
land tenure and land availability for development.
development Private
activity Sector 3. Reform investment policy to reduce financial risk to capital providers
(establish commercial court for non-performing loans, etc.)

4.2. OED 1. Strengthen existing Builders’ and Trade Associations to

Enhance/improve MINEDUC include/expand programs for training in the construction trades.
training for skilled DE
2. Encourage construction trades training programs in schools.
tradesmen and Private
professionals in Sector 3. Work with higher level education institution to strengthen training for
construction NGOs professionals (architects, engineers, etc.)

4.3. Explore the OED Encourage Builders’ and Trade Associations to organize
potential for MINEDUC conferences that presents new ideas in building design, materials
innovations in DE and construction techniques
building design, Private
Work with higher level education institution to create a Research
materials and Sector
Center for Innovative Construction Materials.
construction NGOs
techniques

4.4. Expand OED 1. Organize a Local Association of Suppliers to expand, improve the
sources of raw Private quality of and market local construction materials.
materials Sector
NGOs

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6.2 Expanding Job Opportunity Now for All Who Are Capable
6.2.1. Enhancing Women’s Capacity to Participate in the Economy

Implementing Lead or First Steps Mid-Term Long-Term

Activity Contributing (next 18 Actions Actions
Agency* months) (2-5 years) (5-20 years)
1.1. Ensure CoK 1. Identify all 1. Amendment 1. Sensitisation
gender-balanced APBG gender proposition
legal provisions CL discriminatory 2. Sensitisation
MIGEPROFE laws.
Private Sector
2. Draft
amendments
to change
discriminatory
laws.
3. Sensitisation
the public and
dissemination
the
amendments.
1.2. Improve skills CoK 1. Identification 1. Finance the 1. Finance and
and resources AEF of income projects execute projects
available to APBG generation 1. Enhance the
women for Private Sector projects. capacity of
business NGOs their
2. Enhance
activities association
capacity
s
building in
project
management
and resources
utilization.
3. Strengthen
women’s
associations.

4. Extend access
to capital to
women’s
association.

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Implementing Lead or First Steps Mid-Term Long-Term
Activity Contributing (next 18 Actions Actions
Agency* months) (2-5 years) (5-20 years)
1.3. Expand MINIEDUC 1. Increase the 1. Sensitisation 1. Sensitisation
women’s access PROFEMME entitlements of
to education and COK women at all
training Institutions of levels of
Higher education.
Learning
2. Include gender
Private Sector
education in
NGOs
the curriculum.
3. Encourage
women to take
science/techni
cal.

1.4. Strengthen CoK 1. Identify 1. 1. Collaboration

women’s APBBG existing Collaborati
advocacy MIGEPROFE women on
organisations NGOs advocacy
organisations
2. Establish a
partnership
with the
organisations.
3. Increase the
number of
women in
positions of
responsibility.
1.5. Launch CoK 1. Identify the 1. Resource 1. Execution of
services or Strategic services or mobilisation services and
technology to Planning technology (or 2. Execution of technology
enable women to OED social services
participate in APBG amenities) and
development Private Sector 2. Population technology
NGOs consultations
3. Design the
programs to
be conducted

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6.2.2 Growing Small and Micro-Businesses

Implementing Lead or First Steps Mid-Term Long-Term

Activity Contributing (next 18 months) Actions Actions
Agency* (2-5 years) (5-20 years)
2.1. Reform OED 1.Identify
regulatory CL problems with
processes MINICOM existing
MINICOFIN regulatory
MINIJUST processes
Private Sector (licensing,
NGOs registration
etc.).
2.Draft and
introduce
reform
legislation.

2.2. Provide for OED 1.Identify needs

business training MINEDUC and gaps in
and technical DE existing
assistance MINIFOTRA business
services PRESIDENTE training and
Trade Unions assistance
Private Sector programs.
NGOs
2.Organize
enhanced
training
programs.
3.Organize within
the Office of
Economic
Development
staff capacity
to provide
technical
assistance
and advice on
available
training
programs.
4.Create a multi-
disciplinary
center for
professional
training.

Kigali Economic Development Strategy

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Implementing Lead or First Steps Mid-Term Long-Term
Activity Contributing (next 18 months) Actions Actions
Agency* (2-5 years) (5-20 years)
2.3. Expand OED 1. Create a
access to start-up Association Guarantee Fund
and working des Banques to facilitate
capital BNR micro-financing.
Private Sector
2. Prepare an
NGOs
application to
the World Bank
to tap into the
bank’s Small
Business Loan
Program.
3. Create a board
of information
on bank
procedures.

2.4. Develop PP 1. Identify

appropriate MINICOM appropriate sites
business centers OED within each
Private Sector district of Kigali.
NGOs
2. Develop an
Center of
Artisans.
3. Develop a Food
Storage/Distribu
tion Center.
4. Develop a
marketing plan
to attract
businesses and
investors to the
centers.

Kigali Economic Development Strategy

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