WTO Rwanda

WT/TPR/S/384 • Rwanda
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ANNEX 3 RWANDA
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CONTENTS
1 ECONOMIC ENVIRONMENT ...................................................................................... 185
1.1 Main Features of the Economy ................................................................................... 185
1.2 Recent Economic Developments ................................................................................. 186
1.3 Developments in Trade and Investment ...................................................................... 188
1.3.1 Trends and patterns in merchandise and services trade .............................................. 188
1.3.2 Trends and patterns in FDI ..................................................................................... 190
2 TRADE AND INVESTMENT REGIMES......................................................................... 192
2.1 General Framework .................................................................................................. 192
2.2 Trade Policy Formulation and Objectives...................................................................... 192
2.3 Trade Agreements and Arrangements ......................................................................... 194
2.3.1 WTO .................................................................................................................... 194
2.3.2 Regional and preferential agreements ...................................................................... 195
2.3.3 Other agreements and arrangements ....................................................................... 195
2.4 Investment Regime .................................................................................................. 195
3 TRADE AND INVESTMENT REGIMES......................................................................... 197
3.1 Measures Directly Affecting Imports ............................................................................ 197
3.1.1 Customs procedures, valuation, and requirements ..................................................... 197
3.1.2 Rules of origin ....................................................................................................... 199
3.1.3 Tariffs .................................................................................................................. 199
3.1.4 Other charges affecting imports ............................................................................... 200
3.1.4.1 Border taxes ...................................................................................................... 200
3.1.4.2 Internal taxes ..................................................................................................... 200
3.1.5 Duty and tax concessions ....................................................................................... 201
3.1.6 Import prohibitions, restrictions, and licensing .......................................................... 202
3.1.7 Anti-dumping, countervailing, and safeguard measures .............................................. 202
3.1.8 Other measures affecting imports ............................................................................ 202
3.2 Measures Directly Affecting Exports ............................................................................ 202
3.2.1 Customs procedures and requirements ..................................................................... 202
3.2.2 Taxes, charges, and levies ...................................................................................... 203
3.2.3 Export prohibitions, restrictions, and licensing ........................................................... 203
3.2.4 Export support and promotion ................................................................................. 203
3.2.5 Export finance, insurance, and guarantees ................................................................ 204
3.3 Measures Affecting Production and Trade ..................................................................... 204
3.3.1 Incentives ............................................................................................................. 204
3.3.2 Standards and other technical requirements ............................................................. 206
3.3.3 Sanitary and phytosanitary requirements.................................................................. 207
3.3.4 Competition policy and price controls ....................................................................... 209
3.3.5 State trading, state-owned enterprises, and privatization ........................................... 209
3.3.6 Government procurement ....................................................................................... 210
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3.3.7 Intellectual property rights ...................................................................................... 213

4 TRADE POLICIES AND PRACTICES BY MEASURE...................................................... 216
4.1 Agriculture, Forestry, and Fisheries ............................................................................. 216
4.2 Mining and Energy .................................................................................................... 218
4.2.1 Mining, quarrying and upstream petroleum ............................................................... 218
4.2.2 Energy ................................................................................................................. 220
4.2.2.1 Petroleum products ............................................................................................. 220
4.2.2.2 Electricity ........................................................................................................... 221
4.3 Manufacturing .......................................................................................................... 222
4.4 Services .................................................................................................................. 222
4.4.1 Transport.............................................................................................................. 223
4.4.1.1 Road transport ................................................................................................... 223
4.4.1.2 Air transport ....................................................................................................... 224
4.4.2 Telecommunications ............................................................................................... 224
4.4.3 Financial services ................................................................................................... 226
4.4.3.1 Banking and microfinance .................................................................................... 228
4.4.3.2 Insurance .......................................................................................................... 229
4.4.3.3 Securities ........................................................................................................... 229
4.4.4 Tourism ................................................................................................................ 230
5 APPENDIX TABLES .................................................................................................. 232
CHARTS
Chart 1.1 Composition of merchandise trade, 2011 and 2017 ................................................ 189
Chart 1.2 Direction of merchandise trade, 2011 and 2017 ..................................................... 190
Chart 3.1 Customs disputes by subject, 2011-18 ................................................................. 198
Chart 3.2 Evolution of imports, 2011-16 ............................................................................. 200
Chart 4.1 Agricultural output by main categories, 2011 and 2017 .......................................... 216
Chart 4.2 Manufacturing output by main categories, 2011 and 2017 ...................................... 222
Chart 4.3 Accommodation facilities, 2009-16 ....................................................................... 231
TABLES
Table 1.1 Selected macroeconomic indicators, 2011-17 ........................................................ 185

Table 1.2 Balance of payments, 2011-17 ............................................................................ 187
Table 1.3 FDI stock by sector, 2012-17 .............................................................................. 191
Table 2.1 Selected trade and trade-related laws, October 2018 ............................................. 192
Table 2.2 Status of WTO notifications, 30 November 2011-30 June 2018 ................................ 194
Table 3.1 Tax revenue, 2011-18 ........................................................................................ 199
Table 3.2 Excise duties, 2018 ............................................................................................ 201
Table 3.3 Forgone revenue from imports, 2011-18 ............................................................... 202
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Table 3.4 Export Growth Facility components, 2018 ............................................................. 204

Table 3.5 Main changes to SEZ Policy, 2018 ........................................................................ 205
Table 3.6 Thresholds for procurement methods, 2018 .......................................................... 210
Table 3.7 Public procurement expenditure, 2012-17 ............................................................. 211
Table 3.8 Application/registration of intellectual property titles, 2011-17 ................................ 213
Table 4.1 Mineral and quarry licence requirements, 2018 ...................................................... 219
Table 4.2 Electricity licensing, 2018.................................................................................... 221
Table 4.3 Penetration and concentration by segment, 2011-17 .............................................. 225
Table 4.4 Financial sector indicators, 2011-18 ..................................................................... 227
Table 4.5 Arrivals by origin and purpose of visit, 2011-17 ..................................................... 230
APPENDIX TABLES
Table A1. 1 Merchandise exports by product group, 2011-17 ................................................. 232

Table A1. 2 Merchandise imports by product group, 2011-17................................................. 233
Table A1. 3 Merchandise exports by destination, 2011-17 ..................................................... 234
Table A1. 4 Merchandise imports by origin, 2011-17 ............................................................ 235
Table A3. 1 Goods and services exempted from VAT ............................................................ 236
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1 ECONOMIC ENVIRONMENT
1.1 Main Features of the Economy
1.1. With a strong track record of fulfilling its development objectives, Rwanda is on a
transformation path from a low-income to a middle-income country, and aims to attain upper
middle-income status by 2035. While per capita income has been growing for more than a decade,
Rwanda has also achieved impressive outcomes in many of its social indicators. Infant and
maternal mortality rates have decreased considerably, and the youth literacy and life expectancy
at birth rates are on the rise. However, results lag in some areas, such as school completion rates
and access to reliable energy. Having reduced extreme poverty from 40% in 2001 to 16.3% in
2014, Rwanda aims to eradicate it by 2020.1
1.2. Rwanda has potential for steady and rapid growth, underpinned by its natural resources,
including minerals and varied tourist attractions. However, its competitiveness remains
undermined by high transportation and energy costs, and the underdeveloped financial system,
despite the recent steps taken to address these constraints. Rwanda's landlocked situation and the
necessity to import all domestically consumed petroleum products are still aggravated by its
dependence on two road links to seaports in Kenya and Tanzania. As a densely populated and
mostly mountainous country, Rwanda also faces significant other challenges related to the scarcity
of land and the predominantly young and still growing population (nearly 60% is under 25 years
old).2
1.3. The Rwandan authorities have been pursuing a broad strategy of public co-investment in
infrastructure, with a view to fostering productivity and economic resilience. Recently completed
and ongoing large projects include: the deployment of nation-wide fibre-optic and LTE (4G)
networks, which started operations in 2011 and 2014, respectively; the construction of the Kigali
Convention Centre, completed in 2016; the national flag carrier airline's (Rwandair) continued fleet
and route expansion; the ongoing construction of strategic petroleum reserve storage facilities and
of the country's largest international airport; and continuing upgrades of road and irrigation
networks.
1.4. The Rwandan economy is relatively diversified, with the GDP share of agriculture on an
upward trend and that of services on a downward path (Table 1.1). Agriculture (including forestry
and fisheries) provides livelihoods for about 70% of the working age population; some 81% of the
population lived in rural areas as at February 2018.3 Despite its comparatively modest contribution
to GDP, mining remains an important driver of Rwanda's exports. Aggregate two-way trade flows
represent about 31% of GDP, reflecting Rwanda's limited and costly links to international markets.
Economic performance remains dependent on external factors, including weather conditions and
world commodity prices.
Table 1.1 Selected macroeconomic indicators, 2011-17

2011 2012 2013 2014 2015 2016 2017
Nominal GDP (RWF billion) 3,940.0 4,506.0 4,929.0 5,466.0 5,968.0 6,672.0 7,597.0
Nominal GDP (USD million) 6,563.3 7,335.2 7,622.5 8,016.3 8,277.7 8,475.1 9,136.2
Real GDP (% change at 2014 prices) 8.0 8.6 4.7 7.6 8.9 6.0 6.1
Inflation (CPI, % change) 3.1 10.3 5.9 2.4 2.5 7.2 8.3
Population (million) 10.2 10.5 10.7 11.0 11.3 11.5 11.8
Per capita GDP (nominal USD) 642.2 699.8 709.9 729.0 735.0 734.8 773.6
Per capita GDP (at constant 2014 prices USD) 641.1 679.0 693.8 729.0 774.9 802.0 831.1
GDP by type of expenditure (%)
Total final consumption expenditure 93.4 93.3 91.3 92.9 97.6 92.3 91.2
Government 12.9 13.9 13.5 15.1 14.6 15.1 15.2
Households and NGOs 80.5 79.4 77.8 77.8 83.0 77.2 75.9
Gross capital formation 23.2 25.7 26.5 25.3 26.4 25.9 23.4
Gross fixed capital formation 22.5 24.8 25.4 24.4 25.8 25.3 22.9
Change in inventories 0.7 0.9 1.1 0.9 0.6 0.6 0.5
Net exports -16.6 -19.0 -17.8 -18.2 -24.1 -18.2 -14.5
1
IMF, Rwanda: Ninth review under the policy support instrument–debt sustainability analysis.
2
National Institute of Statistics of Rwanda, Labour Force Survey Trends: February 2018.
3
National Institute of Statistics of Rwanda, Labour Force Survey Trends: February 2018.
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2011 2012 2013 2014 2015 2016 2017

Exports of goods and services 13.7 12.8 14.1 14.7 14.2 14.9 18.2
Imports of goods and services 30.3 31.8 31.9 32.9 38.3 33.1 32.8
GDP by economic activity (current prices) (%)
Agriculture, forestry, and fishing 30.8 31.3 30.8 30.9 30.2 31.5 33.2
Mining and quarrying 2.8 2.3 2.7 2.9 2.4 2.2 2.5
Manufacturing 6.5 6.4 6.3 6.3 6.4 6.3 6.4
Electricity 0.8 0.9 0.9 0.9 1.0 1.3 1.2
Water and waste management 0.7 0.7 0.6 0.6 0.6 0.6 0.5
Construction 7.2 7.4 7.8 7.7 7.9 7.2 6.3
Services 51.2 51.0 50.9 50.7 51.6 50.9 49.8
Wholesale and retail trade 8.1 8.3 8.0 8.1 8.1 7.7 6.9
Transport services 4.1 4.3 4.3 4.1 4.1 4.1 4.1
Real estate activities 11.7 9.9 9.0 8.9 8.8 8.9 8.6
Public administration; defence; social security 4.6 5.0 5.1 5.1 5.1 5.3 5.0
Cultural, domestic and other services 4.5 4.4 4.6 5.1 5.6 5.5 5.4
Administrative and support service activities 3.9 3.8 3.7 4.0 4.3 4.5 5.2
Professional, scientific and technical activities 3.5 3.3 3.3 2.8 3.0 3.1 3.3
Financial services 2.9 3.1 3.4 3.1 3.2 2.9 3.1
Other services 8.0 8.8 9.3 9.6 9.3 8.9 8.3
Public financea (% of GDP)
Revenue and grants 25.0 23.2 25.5 24.2 24.4 23.5 22.9
Total revenue 13.7 15.5 16.2 16.5 18.1 18.4 18.1
Tax revenue 12.8 14.3 14.3 14.8 15.6 15.7 15.5
Direct taxes 5.0 6.4 6.3 6.0 6.5 6.5 6.5
Taxes on goods and services 6.7 6.8 7.0 7.7 7.8 7.8 7.7
Taxes on international trade 1.0 1.1 1.0 1.1 1.3 1.3 1.3
Non-tax revenue 0.9 1.2 1.9 1.7 2.6 2.7 2.6
Total grants 11.2 7.7 9.3 7.7 6.3 5.1 4.7
Total expenditure and net lending 25.3 26.1 29.5 30.3 29.3 27.2 27.6
Current expenditure, of which: 14.5 14.2 13.7 15.4 14.5 15.3 14.7
Wages and salaries 3.3 3.5 3.6 3.6 3.6 4.1 4.0
Purchases of goods and services 3.5 3.2 2.5 3.3 2.6 2.7 2.8
Interest payments 0.4 0.4 0.9 0.8 0.9 1.0 1.0
Transfers 5.7 5.3 5.1 5.1 5.1 4.7 4.7
Exceptional social expenditure 1.6 1.8 1.6 2.7 2.3 2.5 2.1
Capital expenditure 11.4 11.4 13.2 13.1 13.0 10.5 10.7
Net lending -0.6 0.4 2.7 1.7 1.8 1.4 2.1
Overall deficit -0.3 -2.9 -4.0 -6.0 -4.9 -3.7 -4.7
Excluding grants -11.6 -10.6 -13.3 -13.7 -11.2 -8.8 -9.4
Changes in arrears (net reduction -) -0.3 0.6 -1.1 0.6 -0.4 -0.8 0.4
Overall deficit (cash basis) -0.7 -2.3 -5.1 -5.4 -5.3 -4.5 -4.3
Financing 0.7 2.3 5.1 5.4 5.3 4.5 4.3
Foreign financing (net) 3.4 1.2 6.7 3.3 4.3 4.1 4.1
Domestic financing -2.7 1.1 -1.7 2.1 1.6 0.4 0.2
Public debt (USD million) 1,615.1 1,870.2 2,422.4 2,730.9 3,090.9 3,875.0 4,581.4
Public debt (% of GDP) 25.4 26.3 32.9 34.7 38.8 48.0 50.9
Domestic debt (% of GDP) 4.7 5.4 6.8 7.1 8.5 8.6 9.6
Central government external debt (% of GDP) 18.6 19.4 25.5 26.3 29.2 33.7 36.6
State owned enterprise debt (% of GDP) 2.0 1.4 0.6 1.2 1.1 5.7 4.7
Memorandum
RWF per USD, period average 600.3 614.3 646.6 681.9 721.0 787.3 831.5
Real effective exchange rate (% change)b -3.3 2.5 -2.4 -4.3 8.1 -2.6 -4.0
Nominal effective exchange rate (% change)b -2.6 1.1 -3.4 -3.6 8.6 -5.8 -5.5
Gross official reserves (USD million) 1,049.8 850.3 1,070.0 950.8 922.3 1,001.5 1,163.0
in months of imports 5.3 4.2 4.8 3.9 3.6 4.0 4.1
FDI flows into Rwanda (USD million) 119.1 255.0 257.6 458.9 379.8 342.3 366.0
% of GDP 1.8 3.5 3.4 5.7 4.6 4.0 4.0
FDI stock in Rwanda (USD million) 495.1 715.9 837.7 1,152.4 1,401.8 1,680.3 1,798.0
% of GDP 7.5 9.8 11.0 14.4 16.9 19.8 19.7
a Preliminary data for 2017.

b A negative value indicates depreciation.
Source: National Institute of Statistics of Rwanda online information, and information provided by the
authorities.
1.2 Recent Economic Developments
1.5. The Rwandan economy continued to expand during 2011-17, with real GDP growth averaging
7.1% per year. In the same period, per capita GDP increased from USD 641 to USD 831 in real
terms (Table 1.1). However, economic performance was somewhat unsteady, reflecting adverse
climatic conditions, fluctuations in international commodity prices and uncertainties regarding
budget support by donors.
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1.6. During 2011-17, headline inflation was largely contained in the single-digit range, despite its
upward trend since 2016. Price fluctuations were mainly driven by food supply conditions on the
domestic market, which remained sensitive to weather shocks. Inflationary pressures were also
attributable to exchange rate volatility and import tariff increases on certain goods, including rice,
sugar, and second-hand clothing and footwear.
1.7. During the review period, the National Bank of Rwanda (BNR) continued paving the way for
the monetary policy framework's shift from targeting monetary aggregates to targeting interest
rates. The transition was motivated by a weakening transmission mechanism between monetary
aggregates and the real economy, partly due to structural excess liquidity in the banking system.
In 2008, the BNR launched repurchase agreement operations and introduced the key repo rate,
which progressively became an instrument to signal the BNR's monetary policy stance. The
transition is expected to provide the BNR with adequate tools to maintain inflation within the
target band of three percentage points around 5%.
1.8. In order to accommodate domestic credit needs, the BNR has gradually reduced its policy
rate from 7.5% in June 2012 to 5.5% in December 2017. As a result, broad money expanded to
RWF 1,942 billion at end-June 2018 (from RWF 780.6 billion in December 2011), while the stock of
credit to the private sector reached RWF 1,491.2 billion (from RWF 509.8 billion in December
2011). Banks' and microfinance institutions' combined lending rose from 13% of GDP in 2010 to
22.3% in 2017.
1.9. Rwanda maintains a flexible exchange rate regime, without restrictions on payments or
transfers for current international transactions. The BNR has pursued a policy of limited
intervention in the interbank foreign exchange market, aimed at mitigating excessive volatility and
ensuring orderly market conditions. During 2011-17, foreign exchange reserves fluctuated in the
USD 850-1,163 million range, representing some 3.6-5.3 months of prospective imports.
1.10. The authorities have persevered with efforts to improve revenue collection and
management, with an emphasis on risk-based auditing and wider use of information and
communication technologies (ICTs). Indeed, the Rwanda Revenue Authority introduced electronic
billing machines in 2013, and is in the process of replacing them with an Internet-based software
for recording transactions subject to VAT. Measures to broaden the tax base have included:
adjusting excise duty rates; and amending the income tax law to address gaps in, inter alia,
transfer pricing rules, the preconditions for participation in public tenders, and the treatment of
liberal professionals and consultants.
1.11. The continued improvement in tax revenue performance has been insufficient to offset the
combined effect of declining official aid (grants) and steady public investments in infrastructure
projects. As a result, Rwanda's fiscal balance remained in deficit throughout 2011-17, and its
public debt increased to 50.9% of GDP in 2017 (Table 1.1). Nevertheless, Rwanda's risk of debt
distress remains low, as the authorities have continued to focus on maximizing external
concessional funding and extending the maturity profile of domestic debt.
1.12. During the review period, the external current account remained in deficit; this was
attributable mainly to merchandise trade (Table 1.2). In fact, the merchandise trade deficit was
generally on the rise during 2011-16 but narrowed considerably in 2017, reflecting the impact of
exchange rate adjustment, favourable developments in international commodity prices, and export
diversification. The deficits on the services and financial accounts also narrowed in 2017.
Table 1.2 Balance of payments, 2011-17

(USD million)
2011 2012 2013 2014 2015 2016 2017
Current account -468.5 -747.2 -556.3 -943.0 -1254.2 -1341.7 -760.5
Credit 1,870.8 1,827.8 2,111.3 1,993.8 2,096.7 2,156.1 2,695.0
Debit 2,339.3 2,574.9 2,667.6 2,936.9 3,350.9 3,497.8 3,455.5
Goods and services -1209.1 -1,276.6 -1,165.5 -1,345.9 -1,562.2 -1,569.6 -1,028.8
Credit 978.3 1106.5 1,278.2 1,315.3 1,470.4 1,534.4 1,979.9
Debit 2187.5 2,383.0 2,443.7 2,661.2 3,032.5 3,104.0 3,008.7
Goods -1104.8 -1273.7 -1150.8 -1268.6 -1236.6 -1309.5 -871.5
Exports f.o.b. 464.2 590.8 703.0 723.1 682.0 726.6 1,050.2
Imports f.o.b. 1,569.1 1,864.4 1,853.8 1,991.7 1,918.7 2,036.2 1,921.7
Services -104.3 -2.9 -14.7 -77.3 -325.6 -260.1 -157.3
Credit 514.1 515.7 575.2 592.2 788.3 807.8 929.7
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2011 2012 2013 2014 2015 2016 2017

Debit 618.4 518.6 589.9 669.6 1113.9 1,067.9 1,087.0
Transport (net) -355.0 -265.0 -309.2 -331.5 -310.2 -308.0 -205.7
Travel (net) 162.6 203.2 214.5 219.9 29.9 41.9 21.2
Construction (net) 0.0 0.0 0.0 0.0 -40.5 -57.1 17.8
Government goods and services (net) 70.0 63.3 70.3 38.6 106.3 148.2 145.4
Primary income -57.2 -102.7 -131.8 -175.1 -228.4 -296.3 -328.1
Credit 20.1 10.7 15.7 16.3 11.5 9.3 20.0
Debit 77.3 113.4 147.5 191.4 239.9 305.6 348.1
Secondary income 797.8 632.1 741.0 578.0 536.4 524.2 596.4
Credit 872.4 710.6 817.4 662.2 614.9 612.4 695.1
Debit 74.5 78.5 76.4 84.2 78.5 88.2 98.7
Capital account 196.7 171.2 234.5 337.1 299.9 190.0 189.7
Financial account -533.2 -397.3 -661.2 -648.7 -689.8 -890.3 -602.3
Direct investment -119.1 -255.0 -257.6 -311.0 -219.9 -218.5 -244.9
Portfolio investment -87.6 -5.9 -1.7 -1.0 -7.7 -3.6 71.8
Other investment -326.6 -136.4 -401.9 -336.8 -462.2 -668.2 -429.2
Net errors and omissions -27.1 -33.8 -111.0 -133.2 235.9 251.3 61.0
Overall balance 234.3 -212.4 228.5 -90.4 -28.5 -10.0 92.6
Reserve assets 234.3 -212.4 228.5 -90.4 -28.5 -10.0 92.6
Indicators (%)
Current account balance/GDP -7.2 -10.2 -7.3 -11.8 -15.1 -15.8 -8.3
Overall balance/GDP 3.6 -2.9 3.0 -1.1 -0.3 -0.1 1.0
Source: BNR online information. Viewed at: https://www.bnr.rw.
1.13. The latest government and IMF projections converge on real GDP growth of about 7.5%
over the medium term, while headline inflation is expected to remain anchored around 5%.
Foreign direct investment (FDI) inflows are projected to remain stable at 3.1% of GDP, and the
primary deficit is expected to gradually narrow to 1.8% of GDP by 2021.
1.14. The Rwandan economy remains vulnerable to external shocks, including weather factors
and fluctuations in global commodity prices. Other risks to economic performance include the
realization of potential contingent liabilities from state guarantees and the evolution of official
development assistance. While its public investment strategy is likely to yield an economic
dividend, Rwanda is yet to transition to a private sector-led growth model.
1.3 Developments in Trade and Investment
1.3.1 Trends and patterns in merchandise and services trade
1.15. Rwanda's total merchandise trade increased by approximately 50% during 2011-17, with an
unsteady pattern reflecting variations in international commodity prices. The growth was also
attributable to strong re-exports, and policies aimed at fostering output diversification and
domestic value-added. Having contracted year-on-year by some 8.6% in 2012, total services trade
nearly doubled by 2017.
1.16. In 2017, the value of Rwanda's merchandise exports exceeded the 2011 level by some
143%, mainly attributable to the growth of non-traditional exports and re-exports. Agricultural
goods remained one of the main export categories, accounting for more than 35% of export
earnings in 2017 (Chart 1.1 and Table A1.1). Notable compositional shifts included the significant
expansion of fuel re-exports, and the change in the relative importance of tea and coffee. Besides
world price fluctuations, these developments reflect strategic policy interventions to increase fuel
storage capacity and promote higher value-added production.
1.17. The composition of imports did not change considerably in 2011-17 (Chart 1.1 and
Table A1.2). The shares of machinery and transport equipment, and agricultural goods (essentially
food) in the total import bill registered modest expansions. During the review period, Rwanda
remained a net food importer. Despite the seven-fold increase in the value of fuel re-exports
between 2011 and 2017, fuels' share in total imports contracted by about 4.5 percentage points.
1.18. With a share of 29.1% in 2017 (up from 14.0% in 2011), the Democratic Republic of the
Congo became the main destination for Rwanda's merchandise exports (Chart 1.2 and
Table A1.3). The relative weight of the United Arab Emirates in Rwanda's export proceeds also
increased considerably, mainly on account of gold purchases at rising international prices. The
relative shares of merchandise shipments to the European Union and Switzerland contracted by
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about 24 and 12 percentage points, respectively. During 2011-17, China became the principal
supplier of goods to Rwanda, displacing the European Union (Chart 1.2 and Table A1.4).
1.19. Rwanda remains a net importer of services; the overall deficit fluctuated considerably during
Chart 1.[RWA]
2011-17. Composition
The negative balance wasof mainly
merchandise trade,
attributable 2011 and
to transport 2017 Rwanda continued to
services.
be a net exporter of travel services, mainly on account of tourism receipts. However, the
estimated travel services surplus narrowed considerably, following the implementation of a new
methodology for travel data collection in 2015.
Chart 1.1 Composition of merchandise trade, 2011 and 2017
2011 2017
Exports (f.o.b.), including re-exports
Other mining
6.2% Manufactures Other mining Manufactures
11.1% 6.3% 11.7%
Fuels 5.0%
Other 0.4% Other 1.7%

Fuels 15.9%
Tea 8.8%
Tea 13.1%
Tin ores and Mining
concentrates 46.2% Mining Coffee 6.6%
25.4%
Agriculture 50.7% Agriculture
42.2% 35.9%
Tin ores and
concentrates
14.0%
Coffee 19.0%
Other food
17.7%
Ores and concentrates
of molybdenum, Ores and
niobium, tantalum concentrates of
9.6% Agricultural raw molybdenum, Agricultural raw
Other food
material niobium, tantalum material
6.4%
3.7% 14.6% 2.8%
Total: USD 402.9 million Total: USD 980.4 million
Imports (c.i.f.)
Other
Machinery and manufactures
Other manufactures 10.4%
transport Machinery and
equipment 9.2%
transport
23.1% equipment Other 0.2%
Other 0.1%
25.7%
Food 15.8%
Food
Manufactures Agri- Manufactures
Agri- 21.2%
64.0% culture 63.8%
culture
Other semi- 17.2% 21.5%
manufactures Agri.raw Other semi-
12.0% material manufactures
Mining 1.4% 9.8% Mining
18.8%
14.5% Agri.raw
material
Fuels 0.3%
Chemicals 13.7% 17.8%
Chemicals 13.7% Fuels
13.3%
Iron and steel Iron and
Other mining
5.9% steel Other mining
1.0%
4.3% 1.2%
Total: USD 1,456.2 million Total: USD 1,838.8 million
Note: Product groups follow SITC Rev. 3.

Note: SITC Rev. 3. for product groups.
Source: WTO Secretariat calculations, based on data provided by the authorities.
Source: WTO Secretariat's calculations, based on data provided by the authorities.
Chart 1.[Rwanda ] Direction of merchandise trade, 2011 and 2017
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Chart 1.2 Direction of merchandise trade, 2011 and 2017
2011 2017
Exports (f.o.b.), including re-exports (f.o.b.)
Uganda
1.7%
Kenya 15.8% United Arab
Other Africa Emirates
3.7% Other Africa 25.6%
4.4%
United Arab
Democratic Rep. of Emirates Uganda
the Congo 0.8% 3.7%
14.0%
Africa
35.2%
Other Asia
Europe 10.8% Kenya Asia
Other 6.1% Other
0.1% 0.3% 12.4% 1.7%
Americas Africa Americas
3.5% 49.7%
Europe Europe 3.3%
Switzerland
49.4% 13.7%
18.8% EU-28
6.6%
Switzerland
EU-28 Democratic Rep. of 6.7%
30.5% the Congo Other
29.1% Europe
0.4%
Total: USD 402.9 million Total: USD 980.4 million
Imports (c.i.f.)
United
Arab China 10.2% India
Emirates 9.8%
India China 17.4%
7.5%
7.2%
Other Asia
9.5%
Other Asia
Other Africa 8.1%
Asia United Asia
11.1%
25.5% Arab 36.7% Other
Other 4.6% Emirates 6.9%
8.7%
Tanzania
5.1% Africa Americas
Americas 4.9%
36.9% Europe 3.8%
Europe Africa
20.7% 28.0% 15.7%
Other Africa
Kenya
7.9% EU-28
8.0%
EU-28 12.7%
Tanzania
15.4%
4.2%
Uganda
Kenya
12.8%
6.5% Uganda
Other Europe Other
9.5% Europe
5.3%
3.0%
Total: USD 1,456.2 million Total: USD 1,838.8 million
Source: WTO Secretariat calculations, based on data provided by the authorities.

1.3.2 Trends and patterns in FDI
1.20. The authorities have been making numerous strategic interventions in the economy, with a
view to catalysing private investment as a way of addressing infrastructure deficiencies and
diversifying the productive base. Through its participation in the G-20 Compact with Africa,
Rwanda has also been working to ensure that ongoing reform initiatives help mobilize private
- 191 -
investment. Notwithstanding the concerted efforts to attract private capital, FDI inflows remained
below 3% of GDP.4
1.21. The stock of FDI in Rwanda was estimated at approximately USD 1.7 billion in 2017
(Table 1.3). The largest shares were concentrated in ICTs, and financial services. According to the
available data, Mauritius is the leading investor in Rwanda, with over 32% of the total FDI stock
and 48.8% of FDI inflows in 2016. South Africa and Kenya accounted for 10.1% and 8.9%,
respectively, of the total FDI stock in 2016.
Table 1.3 FDI stock by sector, 2012-17

2012 2013 2014 2015 2016 2017a
FDI (USD million) 715.9 837.7 1,152.4 1,401.8 1,680.3 1,718.5
(% of total)
ICTs 46.0 40.7 39.4 31.1 32.2 33.3
Financial and insurance activities 18.3 20.0 19.9 20.1 20.1 20.1
Manufacturing 12.7 18.4 14.9 13.3 12.7 12.4
Tourism 5.1 4.5 9.4 12.4 10.2 10.0
Wholesale and retail trade 6.2 6.1 5.0 5.3 7.4 7.3
Mining 2.1 4.0 5.9 5.4 4.9 4.8
Agriculture 7.0 3.4 3.1 3.1 2.9 2.8
Electricity, gas, steam 0.0 0.0 0.0 5.0 5.2 5.1
Construction 0.6 0.8 0.7 2.1 1.8 1.7
Transportation and storage 1.6 1.4 1.0 1.0 0.7 0.7
Real estate activities 0.0 0.0 0.0 0.6 1.2 1.2
Other 0.4 0.6 0.6 0.7 0.6 0.6
a Preliminary data.
Source: Information provided by the authorities.
4
IMF, Rwanda: Ninth review under the policy support instrument–debt sustainability analysis.
- 192 -
2 TRADE AND INVESTMENT REGIMES
2.1 General Framework
2.1. Rwanda's trade and investment-related institutional framework remained broadly unchanged
during 2011-18. Following endorsement in a referendum, a revised Constitution came into effect in
December 2015, repealing and replacing the one that had been in place since 2003.1 It modified
the terms of office for: the President of the Republic, from seven to five years, renewable once2;
and senators, the Chief Justice and the Deputy Chief Justice, from eight years, non-renewable, to
five years, renewable once.
2.2. Rwanda's executive, legislative, and judiciary bodies are independent and separate.
Executive power is vested in the President and in the Cabinet. Judicial power is vested in a system
of ordinary and specialized courts; the latter, comprising the Commercial High Court and three
commercial courts (Nyarugenge, Huye, and Musanze), handle trade disputes. The Parliament,
composed of the Senate and the Chamber of Deputies, is in charge of passing laws, legislating,
and overseeing executive action in accordance with procedures determined by the Constitution.
Each ministry formulates policies and strategies relating to its field of activities, and drafts relevant
bills.
2.2 Trade Policy Formulation and Objectives
2.3. The Ministry of Trade and Industry (MINICOM) has the main responsibility for formulating
trade policy and coordinating its implementation. Other ministries and agencies involved in trade
policy formulation include: the Ministry of Finance and Economic Planning (MINECOFIN), the
Ministry of Foreign Affairs, Cooperation and East African Community (MINAFFET), the Ministry of
Agriculture and Animal Resources (MINAGRI), the Rwanda Development Board (RDB), the Rwanda
Revenue Authority (RRA), the BNR, the National Agricultural Export Development Board (NAEB),
and the Rwanda Standards Board (RSB). Trade policy formulation takes place in consultation with
the private sector, academia, development partners, and civil society. Broad stakeholder
involvement has been formalized through the National Development and Trade Policy Forum
(NDTPF), which was replaced by the National Trade Facilitation Committee in 2015.
2.4. Rwandan legislation establishes the primacy of international legal instruments, including WTO
agreements. Ratified or approved treaties or international agreements rank above domestic
legislation once they have been published in the Official Gazette, subject to their implementation
by the other parties. Recent changes in trade-related legislation have been driven mainly by the
need to improve the business environment (Table 2.1).
Table 2.1 Selected trade and trade-related laws, October 2018

Areas
Taxation
Taxes on income, Law No. 16/2018 of 13/04/2018
VAT, Law No. 40/2016 of 15/10/2016
Consumption tax (excise), Law No. 37/2015 of 30/06/2015
Other duties and charges on imports
Infrastructure development levy, Law No. 34/2015 of 30/06/2015
Levy for financing African Union activities, Law No. 19/2017 of 28/04/2017
Investment regime
Investment promotion and facilitation, Law No. 06/2015 of 28/03/2015
Expropriation in the public interest, Law No. 32/2015 of 11/06/2015
Public private partnerships, Law No. 14/2016 of 02/05/2016
Companies, Law No. 27/2017 of 31/05/2017
Special economic zones, Law No. 05/2011 of 21/03/2011
Land tenure, Law No. 43/2013 of 16/06/2013
Government procurement
Public procurement, Law No. 05/2013 of 13/02/2013
Sanitary and phytosanitary measures
Plant health protection, Law No. 16/2016 of 10/05/2016
1
Official Gazette No. Special of 24 December 2015.
2
This change was preceded by one transitional presidential term of seven years, for which any
presidential candidates, including the incumbent President, were eligible.
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Areas
Seeds and plant varieties, Law No. 005/2016 of 05/04/2016
Agrochemicals, Law No. 30/2012 of 01/08/2012
Biodiversity, Law No. 70/2013 of 02/09/2013
Agriculture
Forest management, Law No. 47bis/2013 of 28/06/2013
National Agricultural Export Development Board, Law No. 13/2017 of 14/04/2017
Rwanda Agriculture and Animal Resources Development Board, Law No. 14/2017 of 14/04/2017
Energy
Electricity, Law No. 21/2011 of 23/06/2011
Rwanda Utilities Regulatory Authority, Law No. 9/2013 of 01/03/2013
Petroleum and petroleum products trade, Law No. 85/2013 of 11/09/2013
Petroleum exploration and production activities, Law No. 13/2016 of 02/05/2016
Levy on petrol and gas, Law No. 25/2016 of 21/06/2016
Mining
Minerals tax, Law No. 55/2013 of 02/08/2013
Mining and quarry exploitation, Law No. 13/2014 of 20/05/2014
Financial services
BNR, Law No. 48/2017 of 23/09/2017
Deposit Guarantee Fund, Law No. 31/2015 of 05/06/2015
Health insurance schemes, Law No. 48/2015 of 23/11/2015
Pension schemes, Law No. 05/2015 of 30/03/2015
Telecommunications
ICTs, Law No. 24/2016 of 18/06/2016
Media, Law No. 02/2013 of 08/02/2013
National Cyber Security Authority, Law No. 26/2017 of 31/05/2017
Information Society Authority, Law No. 02/2017 of 18/02/2017
Electronic messages, signatures and transactions, Law No. 18/2010 of 12/05/2010
Transport
Regulation of civil aviation, Law No. 75/2013 of 11/09/2013
Civil Aviation Authority (RCAA), Law No. 03/2017 of 21/02/2017
Roads, Law No. 55/2011 of 14/12/2011
Source: Information provided by the authorities, and various online sources.
2.5. Rwanda's economic and social development aspirations are set out in overarching vision and
strategy documents, which guide the design of action plans at the level of line ministries, with a
view to ensuring policy coherence. Vision 2020, adopted in 2000 and revised in 2012, remains the
main priority-setting document, and aims to transform Rwanda into a middle-income economy. In
June 2013, the authorities adopted the second Economic Development and Poverty Reduction
Strategy (EDPRS2, 2013-18) regarding the attainment of the Vision 2020 objectives. EDPRS2
focuses on accelerating growth and poverty reduction through targeted interventions in four
thematic areas: economic transformation; rural development; productivity and youth employment;
and accountable governance.
2.6. A seven-year National Strategy for Transformation (NST1, 201724), adopted in September
2017, is intended to guide implementation efforts during the remainder of Vision 2020 and the first
four years of a new 30-year vision (Vision 2050), which is still at the blueprint stage. The main
objectives of NST1 are to: accelerate inclusive economic growth and development founded on the
private sector, knowledge and Rwanda's natural resources; develop a capable and skilled
workforce with quality standards of living and a stable and secure society; and consolidate good
governance and justice as building blocks for equitable and sustainable national development.3
2.7. Rwanda's National Trade Policy has not been updated since its adoption in 2010, and remains
focused on five objectives: increased productivity, competitiveness and diversified sustainable
productive capacities for trading nationally, regionally, and internationally; enhanced participation
of importers and exporters of goods and services in regional and international trade, taking
advantage of trade opportunities; increased investment, including FDI, in the production of
competitive goods and services for the export market; increased human resources skills in trade
and development, through training and retraining in private and public institutions; and
strengthened science, technology, and innovation policies, strategies, and institutions, including
intellectual property (IP) laws, in support of industrial development and creative knowledge-based
industries. According to the authorities, a review of the Policy is ongoing.
3
Online information. Viewed at: https://rwandaembassy.org/rwanda-in-the-next-seven-years-2017-
2024.html.
- 194 -
2.8. MINICOM's strategic objectives are to: create a business environment conducive to growth
and the protection of consumers; increase the share of services and manufacturing in GDP;
support private sector growth and job creation, with a focus on SMEs; promote integration into
regional and global markets, with a focus on improving Rwanda's trade balance; and build an
effective human resource base and institutional capacity for delivery. In its implementation efforts,
MINICOM has mainly focused on: increasing major traditional and non-traditional exports (coffee,
tea, other agro-processed products, minerals, and tourism); facilitating trade and promoting
conformity with standards; increasing the quantity and quality of investments, to deal with supply-
side constraints; and assisting the RDB in improving the business environment.
2.3 Trade Agreements and Arrangements
2.3.1 WTO
2.9. According to the authorities, Rwanda continues to support a rules-based multilateral trading
system that is predictable, transparent and contributes to improving the lives of all Rwandans. It
attaches importance to maintaining the WTO relevant, as the premier forum for trade negotiations
and governance of international trade rules. It has been active in the negotiations under the Doha
Development Agenda, aligning itself to the position of the African Group, as well as sharing
common positions with the ACP Group, the LDC Group, the G-90, and the "W52" sponsors.
2.10. All of Rwanda's trading partners receive at least most-favoured-nation (MFN) treatment.
Rwanda is not a signatory to any plurilateral agreement negotiated in the WTO; it has not
participated in the WTO negotiations on basic telecommunications, or in those on financial
services. It has not been involved in any dispute under the WTO dispute settlement mechanism,
whether as a complainant, defender, or third party.
2.11. During the period under review, Rwanda made a number of notifications to the WTO
(Table 2.2). However, various notifications remain outstanding.
Table 2.2 Status of WTO notifications, 30 November 2011-30 June 2018

Legal provision Description Date WTO document
(last if recurrent)
Agreement on Customs Valuation
Article 22 National legislation, and 29/02/2012 G/VAL/N/1/RWA/1
administration thereof
Checklist of issues - responses 29/02/2012 G/VAL/N/2/RWA/1
Agreement on Rules of Origin
Article 5 and Paragraph Non-preferential and preferential 28/02/2012 G/RO/N/75
4 of Annex II rules of origin
Agreement on the Application of Sanitary and Phytosanitary Measures
Article 7 and Annex B Proposed and adopted SPS 28/06/2017 G/SPS/N/RWA/1
regulations
Agreement on Technical Barriers to Trade
Article 2.9 Proposed and adopted technical 27/05/2016 G/TBT/N/RWA/38- 40
regulations
30/05/2016 G/TBT/N/RWA/41
31/05/2016 G/TBT/N/RWA/19/Rev.1
31/05/2016 G/TBT/N/RWA/42-46
09/06/2016 G/TBT/N/RWA/47-49
13/04/2017 G/TBT/N/RWA/50-54
18/04/2017 G/TBT/N/RWA/55
27/06/2017 G/TBT/N/RWA/56
31/08/2017 G/TBT/N/RWA/57-75
06/09/2017 G/TBT/N/RWA/76-78
08/01/2018 G/TBT/N/RWA/79-85
09/01/2018 G/TBT/N/RWA/86-94
10/01/2018 G/TBT/N/RWA/95-105
11/01/2018 G/TBT/N/RWA/106-107
17/04/2018 G/TBT/N/RWA/108-123
18/04/2018 G/TBT/N/RWA/124-143
- 195 -
Legal provision Description Date WTO document

(last if recurrent)
Articles 2.9 and 5.6 Proposed and adopted technical 29/01/2014 G/TBT/N/RWA/9-12
regulations and conformity
assessment procedures
31/01/2014 G/TBT/N/RWA/13-28
04/02/2014 G/TBT/N/RWA/29-37
Agreement on Trade Facilitation
Articles 15 and 16 Notification of Category A 04/06/2018 G/TFA/N/RWA/1
commitments
Source: WTO Secretariat.
2.3.2 Regional and preferential agreements
2.12. In addition to the East African Community (EAC), Rwanda is a member of the Common
Market for Eastern and Southern Africa (COMESA). In 2015, Rwanda re-joined the Economic
Community for Central African States (ECCAS), eight years after pulling out of that regional bloc.
To date, no arrangements to liberalize intra-ECCAS trade have been put in place. Rwanda ratified
the African Continental Free Trade Area (AfCFTA) on 26 May 2018. According to the authorities,
the procedure for the ratification of the Tripartite Free Trade Area (TFTA) is underway.
2.3.3 Other agreements and arrangements
2.13. In the framework of the negotiations on an Economic Partnership Agreement (EPA) between
the EAC and the European Union (main report), Rwanda initialled an interim agreement in
November 2007 and signed the EPA in September 2016. It has not yet ratified the EPA.
2.14. Most Rwandan exports benefit from duty-free entry to the United States under the African
Growth and Opportunity Act (AGOA). In July 2018, the duty-free status of apparel exports
originating from Rwanda was suspended, following Rwanda's decision to maintain higher tariffs on
imports of second-hand clothes.
2.4 Investment Regime
2.15. During the review period, Rwanda enacted a new investment code, with the aim of
promoting and facilitating investment, and fostering private-sector-led growth.4 Several
complementary laws, governing certain aspects of the investment regime, also came into effect
(Table 2.1).
2.16. With the entry into force of the new investment code, Rwanda no longer applies a minimum
financial capital threshold (previously USD 250,000) for foreign investors to qualify for investment
incentives. Other innovations introduced in the new law include: detailed provisions on investor
guarantees and rights; a statutory timeframe for the issuance of investment certificates; and
provisions on investor facilitation and aftercare.
2.17. Foreign investors are defined as either: a natural person who is not a citizen of Rwanda, of
another member State of the EAC or of COMESA; a legal person not registered in the EAC or
COMESA; or a legal person with at least 51% of the invested capital coming from countries outside
the EAC or COMESA. Registration of investment is not compulsory, but is a prerequisite to qualify
for incentives stipulated in the investment code.
2.18. Registered investors are entitled to: a residency permit (including for dependants), in
accordance with immigration laws; exemption from capital gains tax5; and the refund of VAT paid
on inputs within 15 days from submitting the claim to the RRA. Investors fulfilling specific
conditions qualify for: preferential corporate income tax rates of zero or 15%, instead of the
headline rate of 30%; corporate income tax holidays (of up to five or seven years); and/or an
accelerated depreciation rate (50%) for the first year of the acquisition of the asset(s). While all
business sectors are open to private investment, regardless of the investor's origin, most
4
Law No. 06/2015 of 28 March 2015.
5
However, income derived from the sale of a commercial immovable property shall be included in the
investor's taxable income.
- 196 -
conditional incentives target certain priority economic sectors or activities: projects generating
exports; industrial manufacturing; energy; road transport; informaICTs; financial services; agro-
processing; education; tourism; healthcare; and the construction of low-cost housing.6
2.19. Registered investors may also benefit from the advantages accorded to a free-point/export
processing zone company, in accordance with the customs rules and regulations harmonized at
EAC level (main report, Section 3.2.4). Additional fiscal incentives, not conditional on investor
registration, are set out in the VAT and Consumption Tax Laws (Section 3.1.4.2).
2.20. The RDB provides, free of charge, a business and investment registration service, which can
be accessed online or through the one-stop centre at its headquarters in Kigali.7 The RDB's
investment-related support functions include providing assistance in: acquiring visas and work
permits; connecting to the water and electricity networks; fulfilling sector-specific licensing
requirements, where applicable; and obtaining an environmental impact assessment certificate.
The RDB is also tasked with facilitating the amicable settlement of disputes that may arise
between an investor and one or more public entities.
2.21. Rwanda finalized the implementation of its Land Tenure Regularization Programme in
December 2013, issuing land title documents to rightful landholders in Rwanda. Foreigners can
lease land from private or public owners (the State, districts or cities) for up to 49 years. The lease
period is based on a land use plan and business plan approved by the competent authorities, and
is renewable. In Special Economic Zones, foreigners may acquire land and obtain a "free hold" title
on the same terms as Rwandan nationals. The law recognizes and protects sub-lease contracts for
agriculture, livestock and forest land.8 In order to ensure proper land management and
administration, a web-based Land Administration Information System (LAIS) has been developed
to ensure efficient, cost effective, quick and transparent registration of land transactions.
2.22. During the review period, Rwanda continued to make progress towards its goal of
transitioning to a paperless Government, through ICT-enabled service delivery. An online platform,
IREMBO, for automated government services was launched in June 2014. By October 2018, some
89 government e-services could be accessed on the platform. As a result of its sustained reform
efforts, Rwanda was ranked 29th out of 190 economies in the 2019 World Bank Doing Business
survey.9
2.23. Rwanda has concluded several bilateral treaties on investment and double taxation. The
instruments in force as of October 2018 included: investment treaties with Djibouti, the Republic
of Korea, Morocco, Turkey, Singapore, and the United States; and double taxation treaties with
Barbados, Belgium, Jersey, Mauritius, Singapore, and South Africa. Rwanda is a member of the
Multilateral Investment Guarantee Agency (MIGA) and the International Centre for the Settlement
of Investment Disputes (ICSID). Having ratified the Convention on the Recognition and
Enforcement of Foreign Arbitral Awards (New York Arbitration Convention) in 2008, Rwanda
established an independent arbitration body, the Kigali International Arbitration Centre, in 2011.10
6
Additional priority economic sectors may be determined by order of the minister in charge of finance.
7
According to the authorities, businesses incur fees for: obtaining an investment licence; mortgage
registration; obtaining a permit for construction within a special economic zone, and IPR-related services.
8
Law No. 43/2013 of 16 June 2013.
9
Data for Doing Business 2019 were collected in May 2018. Rwanda's country profile, as well as notes
on the methodology, are available at:
http://www.doingbusiness.org/content/dam/doingBusiness/country/r/rwanda/RWA.pdf.
10
Law No. 51/2010 of 10 January 2010.
- 197 -
3 TRADE AND INVESTMENT REGIMES
3.1 Measures Directly Affecting Imports
3.1.1 Customs procedures, valuation, and requirements
3.1. During the period under review, Rwanda has made notable progress in trade facilitation.
Since 2012, the authorities have been implementing an integrated border management system,
the Rwanda Electronic Single Window (RESW), based on ASYCUDA world, which was rolled out to
all Rwandan customs posts by January 2013. As at end-October 2018, the RESW integrated some
31 Rwandan ministries and agencies1, and was interconnected with the electronic systems of
relevant border agencies in Burundi, Kenya, Tanzania, and Uganda. According to the authorities,
through the implementation of interface arrangements for real-time data exchange, the RESW has
significantly reduced the time and cost for shipment and customs clearance of Rwandan imports
and exports.
3.2. Anyone wishing to import into (or export from) Rwanda goods for commercial purposes must
register with the Rwanda Revenue Authority (RRA) to obtain a tax identification number. Unless
they have duly licensed in-house personnel, importers are required to engage the services of
professional clearing agents (customs brokers) for consignments valued at or above USD 2,000
(Main report, Section 3.1.3).2 The customs clearance of imports is done on the basis of: a
declaration; suppliers' invoices; a packing list; and a bill of lading (or air waybill). Where
applicable, the supporting documentation must also include: an import licence and/or permit; a
certificate of origin; or a SPS certificate.
3.3. The RRA carries out annual licensing of clearing agents and trucks transporting goods under
customs control.3 As from 2016, both licensing processes have been integrated in the RESW. In
2018, there were 194 licensed clearing agents in Rwanda, including 9 companies operating as
private agencies; the corresponding figures for 2012 were 120 and 8, respectively. The Rwanda
Freight Forwarders Association, a professional body, sets the tariff of fees charged by clearing
agents for their services in consultation with its members and other stakeholders.
3.4. Import consignments are assigned into one of four selectivity lanes: green (immediate
release), blue (post-clearance audit), yellow (documentary check) and red (documentary and
physical checks). The assessment methodology is based on a matrix of risk indicators comprising
the importer's and the clearing agent's characteristics and prior record, as well as the
consignment's nature and origin. A random selection component is also incorporated. The RRA's
risk management unit reviews and refines selectivity criteria every six months; updates are
implemented after approval by the Customs Risk Management Committee.
3.5. Rwanda notified its category A commitments4 in 2015 and ratified the WTO Agreement on
Trade Facilitation (TFA) on 22 February 2017. According to the authorities, Rwanda complies with
international best practices on pre-arrival processing of import-related documentation and advance
rulings, but awaits the inclusion of relevant provisions in the EAC Customs Management Act.
3.6. In 2014, the RRA introduced a Gold Card Scheme (GCS) enabling approved companies to
benefit from expedited clearance procedures by signing a memorandum of understanding with the
Customs Services Department. The GCS is available to traders, clearing agents, warehouse
operators, and transporters that maintain a good compliance record in their dealings with the RRA.
To be eligible for the GCS, companies must, inter alia, be registered in Rwanda and handle
consignments with a total c.i.f. value of at least RWF 200 million per fiscal year.
3.7. Having participated in the pilot phase of the EAC's regional Authorized Economic Operator
(AEO) programme since 2013, Rwanda implemented it fully in 2016 (Main report, Section 3.1).
1
Efforts were under way to implement RESW modules for interface with the Rwanda Utilities Regulatory
Authority (RURA) and the Rwanda Mines, Petroleum, and Gas Board (RMB).
2
A simplified declaration may be lodged directly by traders for commercial imports worth less than
USD 2,000.
3
Companies accredited as Authorized Economic Operators receive a three-year licence to operate as
private agencies.
4
WTO document WT/PCTF/N/RWA/1, 27 April 2015.
- 198 -
According to the authorities, the GCS and AEO schemes differ not only in coverage (national vs.
regional) but also in terms of eligibility requirements.
3.8. The 2019 World Bank Doing Business survey ranks Rwanda 88th of 190 economies on the
trading across borders indicator. On average, importing merchandise into Rwanda is estimated to
require 74 hours and USD 282 for "border compliance", and 48 hours and USD 121 for
"documentary compliance". On exportation, the corresponding figures are 83 hours and USD 183,
and 30 hours and USD 110 respectively.5
3.9. In 2015 Rwanda made pre-shipment inspection mandatory for all imported products; this
requirement was removed in 2016.
3.10. Goods in transit through Rwanda must have security coverage equivalent to the amount of
duties and taxes applicable on importation. The security coverage is to be provided by a licensed
clearing agent. Rwanda also accepts security in the form of a COMESA customs bond (regional
customs transit guarantee). According to the authorities, goods in transit accounted for
approximately 20% of Rwanda's total trade during 2011-18.
3.11. Rwanda applies the EAC rules on customs valuation (Main report, Section 3.1.2). The
dutiable value of all imports is the sum of the purchase cost and all expenses incurred for
insurance and freight up to the point of entry into the EAC. In the absence of satisfactory proof of
insurance, the cost of insurance is calculated as 1% of the cost of freight. In case of doubts
regarding the declared transaction value, the RRA would typically ask the importer to provide
invoice confirmation from the exporting country's customs authorities. According to the authorities,
the RRA would welcome technical assistance in customs valuation, including in detecting falsified
invoices.
3.12. In case of disagreement with RRA decisions, importers must first lodge an appeal at the
customs station of clearance, which could subsequently be escalated by the station manager to the
RRA's head office. Once the avenues of redress within the RRA have been exhausted, traders may
appeal in Rwanda's courts. According to the authorities, a large share of all disputes lodged during
2011-18 related to valuation decisions (Chart 3.1).
Chart 3.1 Customs disputes by subject, 2011-18
Source: Rwanda Revenue Authority.
5
Data for Doing Business 2019 were collected in May 2018. Rwanda's country profile, as well as notes
on the methodology, are available at:
http://www.doingbusiness.org/content/dam/doingBusiness/country/r/rwanda/RWA.pdf.
- 199 -
3.1.2 Rules of origin
3.13. Rwanda does not maintain rules of origin for non-preferential purposes, although its
notification to the WTO asserts otherwise.6 Being a member of both COMESA and the EAC, Rwanda
applies their respective preferential rules of origin. Whenever these two sets of rules of origin arise
in parallel, preferential treatment is applied on the basis of the documentation provided for
customs clearance.
3.1.3 Tariffs
3.14. In fiscal year 2017/18, customs duties, taxes (i.e. VAT and excise) and levies on imports
accounted for more than 25% of total tax revenue (Table 3.1). Customs duties accounted for
between 6.6% and 7.4% of tax receipts during 2011-18.
Table 3.1 Tax revenue, 2011-18

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Total tax revenue (RWF billion) 556.0 651.9 763.4 859.1 986.7 1,086.5 1,234.2
(% of total tax revenue)
VAT 30.9 30.6 33.9 33.3 32.8 32.4 32.9
Imports 12.4 11.6 11.9 11.6 11.1 11.4 10.6
Domestic 18.6 19 22.1 21.7 21.7 21 22.3
Excise Duties 17.7 15.3 14.5 14 14 12.3 12
Imports 9.4 7.7 7.5 7.1 6.8 6.3 6.0
Domestic 8.3 7.6 7.0 7.0 7.1 6.0 6.0
Import duties 6.7 7.2 6.9 7.1 7.4 7.0 6.6
Strategic reserves levy n.a. n.a. n.a. n.a. 0.9 0.9 0.8
Infrastructure development levy n.a. n.a. n.a. n.a. 0.9 1.0 0.9
African Union import levy n.a. n.a. n.a. n.a. n.a. n.a. 0.1
Export taxes 0.2 0.1 0.1 0.1 0.0 0.2 0.0
Other taxes on international trade 0.2 0.2 0.7 0.3 0.2 0.4 0.4
Pay as you earn (PAYE) 25.4 26.7 24.3 23.9 23.3 23.7 22.8
Profit Tax 15.1 16.1 16 17.5 16.1 17.5 19.1
Road maintenance fund 3.3 3.4 3.2 3 3.8 4.1 3.8
Mining royalties 0.0 0.0 0.3 0.5 0.3 0.3 0.4
Other taxes 0.5 0.4 0.1 0.3 0.4 0.2 0.2
n.a. Not applicable.

Note: Reporting period (fiscal year): 1 July to 30 June. Percentages may not add up to 100% due to
rounding.
Source: Rwanda Revenue Authority, Annual activity reports (2015-16) and (2016-17).
3.15. Rwanda applies the EAC Common External Tariff (CET) (Main report, Section 3.1.4). As of
July 2018, under the EAC "stay application" scheme, Rwanda deviated from the CET on some 437
tariff lines, generally by applying lower rates. Rwanda also deviated from the CET on more than 93
tariff lines under the EAC "duty remission" scheme.
3.16. Rwanda has bound 100% of its tariff lines at ad valorem rates ranging from zero to 100%
(Main report, Section 3.1.4). Agriculture tariff lines are bound at up to 80%. The simple average
bound rate on agricultural products (WTO definition) is 74.6%, whereas the average on non-
agricultural products is 91.7%. On 342 CET lines (up from 263 in 2011), applied rates exceed
Rwanda's bindings, in some cases by as much as 60 percentage points. Moreover, Rwanda has
bound "other duties and charges" at zero but it applies some.
3.17. Rwanda grants tariff preferences to products originating in its EAC and COMESA trading
partners. During 2011-16, the share of preferential imports in Rwanda's total imports remained
relatively stable at around 18% (Chart 3.2).
6
WTO document G/RO/N/75, 28 February 2012.
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Chart 3.[PIM] Evolution of imports, 2011-16

Chart 3.2 Evolution of imports, 2011-16
(USD million)
(USD million)
2,500
Non-preferential imports Preferential imports
USD 2,004 USD 1,980 USD 1,970

2,000
USD 1,806 USD 1,853
USD 1,456
1,500
1,000
500
(20%) (18%) (17%) (18%) (18%) (18%)
0
2011 2012 2013 2014 2015 2016
Note: Underlined figures indicate the value of total imports. Figures in parentheses indicate preferential imports' share of total
Note: Underlined figures indicate the value of total imports. Figures in parentheses indicate preferential
imports.
imports' share of total imports.
Source: WTO Secretariat's calculations, based on data provided by the RRA.
Source: WTO Secretariat's calculations, based on data provided by the RRA.
3.1.4 Other charges affecting imports
3.1.4.1 Border taxes
3.18. All imports are subject to a computer processing fee (redevance informatique) levied per
declaration lodged with Customs. The applicable rates are RWF 500 for a simplified declaration and
RWF 3,000 for a standard declaration.
3.19. Goods of non-EAC origin, except those exempted by law from import duty, are subject to an
African Union import levy7 (0.2% of c.i.f. value) and an infrastructure development levy (1.5% of
c.i.f. value). Exemptions include: fertilizers; seeds; live animals; pharmaceutical products; medical
equipment; mosquito nets; industrial machinery and equipment for the energy and water sectors;
and imports destined for projects with investment certificates.
3.20. As from July 2015, Rwanda applies a strategic reserves levy of RWF 32.73 per litre of fuel,
all of which is imported. Receipts from this levy are meant to finance the building up of a fuel
security reserve stock. The main financing stream of Rwanda's Road Maintenance Fund is another
fuel levy, which was increased from RWF 82.37 per litre to RWF 115 per litre in March 2016.8
3.21. Imports that undergo testing by the Rwanda Standards Board (RSB) are subject to an ad
valorem fee of 0.02%. The fee's collection is entrusted to Customs.
3.1.4.2 Internal taxes
3.22. Consumption taxes (excise duties) are levied on 14 product categories (Table 3.2). The
majority of excise duties are ad valorem, with rates ranging from 5% to 70%. During the period
under review, the excise duty rate on telephone communications was increased from 8% to 10%
and a compound rate was introduced on cigarettes (previously subject to the rate of 150%). In
general, the tax base for imports is the c.i.f. customs value plus the amount of border duties and
7
Law N°19/2017 of 28 April 2017.
8
The Road Maintenance Fund is also financed, to a lesser degree, by collections of road toll charges.
- 201 -
charges; for locally manufactured products, it is the selling price exclusive of taxes. For cigarettes,
the tax base (ad valorem component) is the retail price of one pack of 20 rods.
Table 3.2 Excise duties, 2018
Product categories Tax rate

Fruit juices 5%
Lemonade, soda and other juices 39%
Mineral water 10%
Beer 60%
Wine 70%
Brandies, liquors and whisky 70%
Cigarettes 36% of retail price of a pack (of 20 rods) and
30 RWF per pack
Fuel: premium gasoline (excluding benzene) and gas oil 183 RWF/litre and 150 RWF/litre, respectively
Lubricants 37%
Vehicles with an engine capacity of less than 1,500cc 5%
Vehicles with an engine capacity between 1,500cc and 10%
2,500cc
Vehicles with an engine capacity of above 2,500cc 15%
Powdered milk 10%
Telephone communications 10%
Source: Law No. 37/2015 of 30 June 2015 modifying and complementing Law No. 26/2006 of 27 May 2006,
as modified and complemented.
3.23. VAT is levied at the rate of 18% on the supply of goods and services, including on their
importation. The tax base for VAT on imports is the c.i.f. customs value plus any other costs,
duties and charges incurred on importation (except the VAT itself). For domestically supplied
goods and services, the tax base is the sale price.9
3.24. Exemptions from VAT cater to basic necessities, including water supply services, some
transport services, financial and insurance services, education, healthcare and energy supplies,
agricultural inputs and equipment, and certain imports for investment projects (Table A3.1). Zero-
rated supplies, eligible for refund of VAT paid on inputs, include: all exports; minerals sold on the
domestic market; international transportation services (goods entering or in transit in Rwanda);
and services rendered to a tourist, for which VAT has been paid.10
3.25. Commercial imports are subject to a withholding tax (5% of the c.i.f. value), unless the
importer has a valid tax clearance certificate. Taxpayers can deduct the amount paid in
withholding tax upon submission of their annual tax returns. According to the RRA, this measure is
aimed at improving compliance with domestic tax obligations.
3.1.5 Duty and tax concessions
3.26. Rwanda grants duty and tax concessions under various initiatives aimed at promoting
investment or achieving social objectives.11 In addition to the schemes harmonized at EAC level,
fiscal concessions for a range of imports, including raw materials, machinery, and equipment, are
stipulated in the Investment Code, and the VAT and Consumption Tax legislation. During 2011-18,
forgone revenue from duty and tax concessions on imports ranged between 34% and 61% of
customs collections (Table 3.3).
9
VAT registration is compulsory for businesses whose gross turnover exceeds RWF 20 million per year
or RWF 5 million over the three preceding months.
10
Law No. 6/2001 of 20 January 2001, as amended by Laws No. 24/2006 (16 May 2006), No. 25/2010
(28 May 2010), No. 37/2012 (9 November 2012), and No. 40/2016 (15 October 2016).
11
The administration of duty and tax concessions is the responsibility of the RRA.
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Table 3.3 Forgone revenue from imports, 2011-18

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Total concessions 91.7 110.2 129.8 119.0 145.5 106.3 149.3
(RWF billion)
Industrial inputs 3.6 1.7 0.7 0.4 0.1 0.01 0.0
Investment code 41 57.3 77.7 67.5 84.6 34.6 74.3
Customs laws 47.1 51.2 51.4 51.1 60.8 71.7 75.0
Memo:
Total concessions as % of 55.0% 61.1% 60.0% 49.8% 50.4% 34.0% 44.4%
customs collections
Total concessions as % of 16.5% 16.9% 17.0% 13.9% 14.7% 9.8% 12.1%
RRA tax collections
Note: Reporting period (fiscal year): 1 July to 30 June.

Source: Rwanda Revenue Authority.
3.1.6 Import prohibitions, restrictions, and licensing
3.27. Rwanda applies the import prohibitions and restrictions established at EAC level (Main
Report). In addition, Rwanda prohibits the manufacture and importation of polythene bags12,
dangerous chemical substances and pollutants13, and certain drugs14 and agrochemicals.15
3.28. Rwanda has not submitted any notifications to the Committee on Import Licensing since
2011. At that time, Rwanda had affirmed the absence of laws, regulations or procedures relevant
to the Agreement on Import Licensing Procedures.16 Nevertheless, prior authorization and/or
licence requirements remain in place for certain imports, including: pharmaceuticals and related
equipment (Ministry of Health); ozone-layer-depleting substances17 and wild animals18 (Rwanda
Environment Management Authority); agrochemicals19, plants20 and live animals (Ministry of
Agriculture). According to the authorities, the import licensing regime is not used for quantitative
restrictions purposes.
3.1.7 Anti-dumping, countervailing, and safeguard measures
3.29. The EAC Customs Union Protocol and the relevant implementing regulations provide the
legal basis for contingency measures at the regional level (Main Report). At the national level,
Rwanda has no legal and institutional frameworks for the application of anti-dumping,
countervailing, and safeguard measures. To date, no contingency actions have been taken by
Rwanda.
3.1.8 Other measures affecting imports
3.30. Rwanda maintains reserve stock requirements for petroleum products (public and private)
and foodstuffs (public) (Section 4). According to the authorities, Rwanda is not a party to any
countertrade and offsetting arrangements, or agreements limiting exports to Rwanda.
3.2 Measures Directly Affecting Exports
3.2.1 Customs procedures and requirements
3.31. The registration and customs clearance procedures for exports are similar to those for
imports (Section 3.1.1), requiring notably a declaration, a commercial invoice, a packing list and,
12
Law No. 57/2008 of 10 September 2008.
13
Prime Minister's Order No. 26/03 of 23 October 2008.
14
Prime Minister's Order No. 27/03 of 23 October 2008.
15
Prime Minister's Order No 002/11.30 of 14 July 2016.
16
WTO document G/LIC/N/3/RWA/2, 18 October 2011.
17
Ministerial Order No. 006/2008 of 15 August 2008.
18
Ministerial Order No. 004/16.01 of 15 July 2010.
19
Law No. 30/2012 of 1 August 2012.
20
Ministerial Order No. 012/11.30 of 02 August 2017.
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where applicable, a conformity, sanitary or phytosanitary certificate, and original export permits
and/or licences.
3.32. For most products, exporters wishing to benefit from preferential access to foreign markets
may obtain the necessary certificate of origin from the RRA. Certificates of origin in hard copy cost
RWF 3,000. The RRA has started issuing electronic certificates of origin free of charge, in the
framework of a pilot project with Uganda and Burundi.21 Certificates of origin for tea and coffee are
issued, free of charge, by the NAEB and endorsed by the RRA.
3.2.2 Taxes, charges, and levies
3.33. As with imports, the RRA levies a computer processing fee of RWF 3,000 per export
declaration. In line with EAC guidelines, raw hides and skins exported to third countries attract a
tax of 80% of their value or USD 0.52/kg, whichever is higher.22
3.34. As from September 2013, Rwanda levies a tax on the sale (including exports) of minerals
(Section 4.2).
3.2.3 Export prohibitions, restrictions, and licensing
3.35. Rwanda applies the export prohibitions and restrictions established at EAC level (Main
Report), and those established by international agreements to which it is a signatory. Restricted
exports require a licence issued by the relevant ministry.
3.2.4 Export support and promotion
3.36. Rwanda has not submitted any subsidy notifications either to the Committee on Subsidies
and Countervailing Measures or to the Committee on Agriculture. Following a revision of its
Investment Code in May 2015, Rwanda repealed a provision stipulating income tax discounts of
3% and 5% for exports exceeding the thresholds of USD 3 million and 5 million, respectively, in a
fiscal year.23 From that date, registered investors exporting at least 50% of their turnover of goods
and services produced in Rwanda are accorded a preferential corporate income tax rate of 15%,
instead of the headline rate of 30%. Subject to conditions, investors in export-related projects are
also eligible for a corporate income tax holiday (up to 7 years) and/or an accelerated depreciation
rate (50%) for the first year of assets' acquisition. Exports are zero-rated for VAT.
3.37. In May 2015, Rwanda transposed the EAC Export Processing Zones (EPZ) regulations
through a provision in its revised Investment Code. According to the authorities, in October 2018,
EPZ licences were being held by three enterprises whose combined contribution to exports, GDP
and employment was marginal.
3.38. As part of the expansion of its Special Economic Zones (SEZ) programme, Rwanda
envisages establishing incentive schemes to maximize such zones' contribution to local value
added, including for exports (Section 3.3.1).
3.39. In 2015, Rwanda launched its second National Export Strategy (NES II). The revised
document takes into account changes in national strategic objectives. NES II priorities include
addressing gaps in infrastructure and export finance, streamlining the regulatory environment,
strengthening trade promotion and buyer outreach, and providing support to individual enterprises
to build their export capacity.
3.40. Monitoring and coordination of the NES II are the responsibility of the Industrial
Development and Export Council (IDEC), established in 2011 and chaired by MINICOM. The key
implementing institutions include: the RDB, the NAEB and the Development Bank of Rwanda
(Section 3.2.5). According to the authorities, export promotion activities carried out to date have
included capacity building for SMEs and provision of market access information.
21
Simplified certificates of origin are issued free of charge for consignments worth less than USD 2,000
that are exported to other EAC countries.
22
Legal notice No. EAC/38/2015 of 19 June 2015.
23
Law No. 06/2015 of 28 March 2015.
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3.2.5 Export finance, insurance, and guarantees
3.41. In line with NES II recommendations, in June 2015, Rwanda launched an Export Growth
Facility (EGF) with an initial capital of RWF 500 million, administered by the Development Bank of
Rwanda (BRD).24 The EGF constitutes a pilot programme targeting Rwandan-incorporated SMEs
with a bankable business plan and export sales below USD 1 million. Priority sectors include
horticulture, agro-processing, and manufacturing.25
3.42. By design, the EGF comprises three separate components or "windows" (Table 3.4).
According to the authorities, the Export Guarantee component is not yet operational. To date,
financing operations have been conducted mainly through the BRD. In 2017, Germany's KfW
Development Bank provided EUR 8.5 million (EUR 6 million for export finance and EUR 2.5 million
in technical assistance to banks and the BRD) toward the implementation of an on-lending scheme
via commercial banks.
Table 3.4 Export Growth Facility components, 2018
Component/Window Description
Investment Catalyst Aimed at supporting private-sector investment in export-oriented production
Fund through a 6.5% subsidy on market interest rates (typically 16% - 20%).
Matching Grant Fund Provision of matching grants (50% of needs) for expenditure on specific market
entry costs (export strategy elaboration, export promotion, compliance with
standards, etc.).
Export Guarantee Funda Provision of short-term guarantees to commercial banks financing exporters' pre-
and post-shipment operations.
a Not yet operational as of October 2018.

Source: Development Bank of Rwanda.
3.43. As at June 2018, 17 companies had accessed the EGF's Investment Catalyst Fund
component for a total disbursement amount of RWF 486 million, and 10 companies had accessed
the Matching Grant Fund component for a total disbursement amount of RWF 693 million.
According to the authorities, the main beneficiary industries were coffee, tea, horticulture, agro-
processing, and textiles.
3.3 Measures Affecting Production and Trade
3.3.1 Incentives
3.44. Rwanda offers a range of fiscal incentives under the Investment Code, and the VAT and
Consumption Tax legislation. Fiscal incentives, typically in the form of tax holidays, reduced tax
rates, and accelerated depreciation, may be granted by industry, type of activity, or on company-
specific basis. Rwanda's Investment Code also stipulates various non-fiscal incentives, including
certain flexibilities in immigration and hiring formalities and a one-stop centre (OSC) at the RDB to
fast-track project implementation. In principle, tax and non-tax incentives apply equally to
domestic and foreign-owned businesses. The range of socio-economic objectives targeted by these
measures includes: stimulating local or foreign investment in particular economic sectors;
promoting exports; and generating employment.
3.45. Rwanda's Business Development Fund (BDF), created in 2011, provides support to SMEs
and young entrepreneurs in the form of credit guarantees, matching grants, asset leasing, and
advisory services. BDF works with financial institutions to guarantee between 50% and 75% of the
collateral required by the lender. The maximum guaranteed amount is RWF 500 million for
agriculture projects and RWF 300 million for other sectors, for a maturity period of up to
10 years.26
3.46. Rwanda has been implementing a Special Economic Zones (SEZ) programme aimed at
fostering private sector investment, employment and income generation, economic diversification
24
By 2018 the Government of Rwanda had injected RWF 2.5 billion into the EDF.
25
BRD online information. Viewed at: https://www.brd.rw/brd/proin-sodales-quam-nec-ante-sollicits.
26
Online information. Viewed at: http://www.newtimes.co.rw/news/featured-financing-available-bdf-
tells-local-textile-industry.
- 205 -
and the development of secondary economic centres. SEZs do not offer any fiscal incentives
beyond those set out in Rwanda's Investment Code, but are intended to provide their users
(resident companies) a streamlined framework for doing business, including access to reliable
infrastructure and utilities, and an on-site one-stop centre (OSC). SEZs may also host EPZs
(Section 3.2.4) and industrial/sector-specific parks. While labour and management relations in
SEZs are generally governed by Rwanda's labour legislation, zone-specific labour conditions may
be determined by ministerial order.
3.47. Originally adopted in 2010, the national SEZ Policy was revised in January 2018 (Table 3.5).
The Special Economic Zone Authority of Rwanda (SEZAR), a unit within the RDB, is in charge of
regulatory oversight of SEZs. It is yet to establish and operate zone-specific OSCs; for the moment
it still uses the RDB's centre which is available to all investors.
Table 3.5 Main changes to SEZ Policy, 2018

Issue 2010 Policy recommendation 2017 Policy recommendation
Scope of zones 1. A flexible regime allowing different types Points 1-3 unchanged. Additional points:
and eligibility of zones. 4. All Investment Code incentives apply in
criteria 2. Broad set of activities allowed, subject to all SEZs (no differentiation).
a general negative list. 5. Introduce performance incentives for
3. No eligibility criteria for users zone operators to maximise economic value
(residents). for Rwanda. Performance indicators may
include exports, fulltime jobs, local supply
contracts, domestic market recapturing,
etc.
Public and 1. Full spectrum of public-private- Points 1-4 unchanged. Additional points:
private partnerships and fully private zones allowed 5. Land price regulation is introduced
participation in 2. Public investment to be guided by 6. Clarifications of the roles of public and
zones economic cost-benefit analysis (CBA) private actors, including on the issue of
3. Government equity participation to be routine maintenance
guided by internal rate of return and the
potential for privatization at a later stage
4. Zones to be operated on commercial
terms, except where there is a monopoly
Zone 1. Both public and private entities may Points 1-4 unchanged. Additional points:
designation suggest new zones 5. SEZAR to issue internal zoning
process and 2. Both pre-designated and regulations
criteria non-pre-designated land may be suggested 6. A progressive approach to zone
3. A formal designation process defined, development, based on evidence of
including demand forecasts, feasibility investor/user demand
study and physical planning
4. SEZAR to carry out CBA and make
recommendation to Cabinet
Land use 1. SEZ land to be classified as "public Point 2 a) amended: Foreigners and locals
interest" may only lease land; outright land
2. Within SEZs: purchases no longer allowed.
a) Foreigners may lease; locals may lease Point 3 clarified: Developers and users are
or own land to submit evidence of progress towards
b) Maximum lease terms of 99 years, operationalizing their plots to SEZAR within
renewable and transferable two years from the time of obtaining their
c) Full transfer of lease rights licence
d) Creditors' rights to be protected in case
of default
e) Right to continued occupancy and
non-disturbance
f) Right to change land use, within zoning
regulation
3. "Use it or lose it" clauses for both
developers and users
Zone benefits 1. Special conditions/incentives (fiscal, Point 1 amended: No special fiscal,
customs, immigration, labour) immigration or customs regimes for SEZs
2. Government of Rwanda to provide and beyond those set out in the Investment
maintain public infrastructure and services Code.
3. Regulatory relief and streamlined Points 2-3 largely unchanged.
procedures to be implemented through OSC
in each zone
- 206 -
Issue 2010 Policy recommendation 2017 Policy recommendation

Complementary 1. Support programmes for backwards Point 1 expanded to ensure SEZs fit into
policies and linkages and technological/knowledge the Made in Rwanda Policy (2017)
safeguard spill-overs to be developed Point 2 unchanged. Additional points:
measures 2. Maintain adequate safeguards on labour 3. Sector-specific parks for small and
and environmental standards medium industrialists (SMIs) to be
established within SEZs. Relocation to SMI
parks, subject to meeting eligibility criteria,
to be subsidized.
4. SEZ user licences and investment
certificates to be granted in a single
procedure
Certain plots to be reserved for Parks are to

be set up in each Zone, to support SMIs
with huge growth potential which are
currently scattered around the country and
don't have the capacity to access zone land
on commercial terms
Source: Ministry of Trade and Industry (2018), Revised SEZ Policy – Addressing the infrastructure constraint
to industrialization in Rwanda.
3.48. SEZ developers must have the financial capability to build zone infrastructure (such as
water, power, fibre-optic and sewerage treatment plant), and operators must prove extensive
management experience as well as financial resources to manage the zone. SEZ residents must
have an investor certificate (costing USD 500) from the RDB as well as an SEZ user licence from
the RDB. They must submit a business plan, architectural designs based on the relevant SEZ
design, and an environmental impact assessment report. The negative list of goods prohibited
under the EAC Customs Management Act applies to SEZs as well.27
3.49. In July 2018, there was one fully operational zone in Rwanda, the Kigali Special Economic
Zone (KSEZ), and another nine were at different stages of deployment. The total designated land
area of these zones comprised 1,095 ha. According to the authorities, as at July 2018, SEZ users
were active in 69 industries, and accounted for approximately 7,000 permanent and 13,000 non-
permanent jobs. SEZ users generated exports worth USD 5.5 million in 2016 and USD 43.6 million
in 2017. By 2017, the SEZ programme had attracted investments exceeding USD 521 billion.
3.3.2 Standards and other technical requirements
3.50. During the review period, reforms to Rwanda's legal and institutional framework related to
the implementation of the TBT Agreement included the establishment of the Rwanda Standards
Board (RSB) as the successor of the Rwanda Bureau of Standards (RBS) and the transfer of
market surveillance functions to MINICOM in August 2014.28 The RSB remains a public institution
with the mission of providing standards-based solutions for consumer protection and trade
promotion.29 It continues to coordinate standards development and dissemination, and remains
active in quality management, conformity assessment and metrology in Rwanda.
3.51. In principle, the adoption of standards and technical regulations is governed by the common
framework established at EAC level (Main report, Section 3.3.2). As a successor to the RBS, the
RSB follows the WTO Code of Good Practice for the Preparation, Adoption and Application of
Standards.30 At the national level, technical regulations may be developed and adopted by a
number of Rwanda's line ministries and regulatory bodies. It is unclear whether Rwanda has put in
place a standardized procedure for adoption and application of technical regulations. According to
the authorities, notices concerning all standards and technical regulations adopted in Rwanda are
published in the Official Gazette.
3.52. The RSB is a member of the International Organization for Standardization (ISO), the
International Electrotechnical Commission (IEC), the International Organization for Legal Metrology
(OIML), the African Organisation for Standardisation (ARSO), and the International Metrology
27
Ministerial Order No. 12/2012 of 20 February 2012.
28
WTO document G/TBT/2/Add.85/Rev.1, 7 January 2015.
29
Law No. 50/2013 of 28 June 2013.
30
WTO document G/TBT/CS/N/159, 7 March 2005.
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Confederation (IMEKO). It represents Rwanda in standardization activities at the regional level,

including in the framework of the EAC, COMESA, the African Electrotechnical Commission (AFSEC),
and the Northern Corridor Integration Projects.
3.53. As at October 2018, there were 2,385 standards and 275 technical regulations in force in
Rwanda, up from 780 and 67 in October 2012. Some 394 of these standards were harmonized at
the EAC level. According to the authorities, certain standards and technical regulations fully adopt
international norms.
3.54. The RSB is Rwanda's national enquiry point and MINICOM is the notification authority under
the TBT Agreement. Between October 2012 and December 2018, Rwanda made 207 new
notifications to the WTO Committee on Technical Barriers to Trade, mostly under Article 2.9 of the
TBT Agreement. The standard period of 60 days for submission of comments has been met in
approximately 83% of these notifications.
3.55. Rwanda does not have a national accreditation body in the field of conformity assessment. A
national accreditation focal point has been established in MINICOM, in accordance with EAC
provisions. Private entities intending to offer certification services in Rwanda must register with the
Office of the Registrar General at the RDB and present a valid certificate of accreditation from a
"recognized accreditation body" to the national accreditation focal point. Private certification
entities must also establish a permanent office in Rwanda. 31
3.56. The RSB operates a voluntary certification scheme, offering "Quality Marks" to products and
systems complying with relevant standards. In addition, the NAEB provides certification for tea,
coffee, and other produce.
3.57. In principle, surveillance at the border and on the domestic market for quality assurance
purposes is the responsibility of the Inspectorate Authority under MINICOM. In practice, a
fragmented system of quality-control institutions and laboratories remains in place in Rwanda. 32
According to the authorities, Rwanda has 18 quality-testing laboratories, most of which do not fully
meet international norms (ISO/IEC 17025, and ISO 15189). The metrological (mass, temperature
and balance) laboratories of the RSB obtained ISO/IEC 17025 accreditation in December 2017.
3.58. All importation of goods into Rwanda remains subject to the issuance of an obligatory Batch
certificate attesting that a particular consignment or shipment conforms to Rwandan technical
regulations, or recognized international or foreign standards.33 All imported perishable goods must
bear a label indicating the date of manufacture and of expiry; such products are not allowed on the
Rwandan market unless they still have at least 50% (65% for foodstuffs) of their total shelf life.
Importers of goods subject to Rwandan technical regulations must apply for the batch certificate
one week before the goods arrive. The importer must pay a batch certificate fee equivalent to
0.2% of the cost and freight of the imported goods.
3.3.3 Sanitary and phytosanitary requirements
3.59. Since 2010, responsibility for the protection of plant and certain aspects of animal health
has been consolidated at Rwanda Agriculture and Livestock Inspection and Certification Services
(RALIS), under the Ministry of Agriculture and Animal Resources (MINAGRI). RALIS carries out:
plant pest surveillance; inspection and certification of plants, plant products and animal products;
plant quarantine activities; and the control of agrochemicals and related equipment. Animal
disease surveillance and control are the responsibility of the Rwanda Agriculture and Animal
Resources Development Board (RAB). The Ministry of Health is responsible for food safety, except
food safety issues related to unprocessed products, which are within the remit of RALIS.34 The
31
Ministerial Instructions No. 17/2012 of 10 July 2012.
32
Institutions that carry out quality-control interventions include: the Ministry of Agriculture and Animal
Resources (plant and animal health); the Ministry of Infrastructure (roads, bridges, and other civil engineering
structures); the Ministry of Health (food hygiene, medical products); National Police (road vehicles); the
Rwanda Development Board (hotels and food establishments); the Rwanda Environment Management
Authority (environmental degradation hazards); and the Rwanda Utilities Regulatory Authority (public utilities).
33
RBS Instruction No. 01/2004 of 1 December 2004.
34
The Rwanda Food and Drugs Authority, established by Law No. 003/2018 of 9 February 2018, is
expected to take responsibility for food safety controls once it becomes operational.
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Ministry of Natural Resources and the Rwanda Environment Management Authority are also
responsible for some aspects of SPS measures.
3.60. Rwanda maintains three SPS enquiry points: RALIS (plant health); RAB (animal health);
and the Directorate of Planning, Policy and Capacity Building at the Ministry of Health (food
safety). The Directorate of External Trade at MINICOM continues to serve as Rwanda's SPS
notification authority. Between October 2012 and December 2018, Rwanda made one notification
to the WTO Committee on Sanitary and Phytosanitary Measures. The submission allowed for a
comment period of 60 days.35
3.61. Rwanda is a member of the Codex Alimentarius and the World Organization for Animal
Health (OIE). Rwanda ratified the International Plant Protection Convention (IPPC) in 2012 36 and
the EAC Protocol on Sanitary and Phytosanitary Measures in 2014. 37 In accordance with Rwanda's
obligations under the IPPC, RALIS hosts the National Plant Protection Organization (NPPO).
3.62. The importation of seeds, planting materials, plants, plant products, animals, animal feed
and animal products is subject to an import permit from RALIS. Applications for the permit must
be made before the consignment's arrival in Rwanda so that a pest/disease risk analysis and,
where applicable, registration of a new plant variety may be carried out. Risk analysis is carried
out whenever a new commodity or originating market is concerned.
3.63. In case of a favourable assessment, RALIS grants an import permit detailing any procedures
to be fulfilled for the specific product in the exporting country, including hazard-free certification.
The phytosanitary/veterinary health certificate issued at origin must outline all the procedures
carried out on the consignment in accordance with the requirements stated in the import permit.
If, upon arrival, the consignment or any accompanying documents do not comply with the
requirements detailed in the import permit, the consignment will be placed under quarantine for
further testing, or may be re-exported or destroyed at the importer's expense.
3.64. Upon request from exporters, RALIS inspects export consignments and, when appropriate,
issues the relevant phytosanitary/veterinary health certificates. An electronic system has been put
in place for the submission and processing of SPS certification requests. However, the approved
SPS certificates are still signed manually and must be picked up in person from the RALIS office.
3.65. RALIS maintains the register of authorized agrochemicals, agrochemical traders and storage
premises in Rwanda. A list of controlled and prohibited chemical substances and precursors is
published on MINAGRI's website.38 Registration certificates for agrochemicals, setting out details
on the product's importation, manufacture, labelling, advertising, distribution, sale and use, are
valid for three years.39 The manufacture, sale (including import and export), transport and storage
of agrochemicals require a licence. Agrochemicals import and export licences are valid for five
years and cost RWF 200,000 and RWF 100,000, respectively.40 Storage premises licences are also
valid for five years; the relevant fee is RWF 100,000 for importer/exporter premises and
RWF 15,000 for agrochemicals dealers.41
3.66. Import prohibitions implemented by Rwanda on SPS grounds during the review period
targeted: poultry and poultry products from Uganda (effective from January 2017); meat and
meat products, milk, fruits and vegetables from South Africa (effective from December 2017); and
small ruminants and products thereof from Burundi (effective from January 2018). According to
the authorities, a draft law governing the use of genetically modified organisms (GMOs) is
undergoing legislative approval. Meanwhile, a ban on imports of GMOs remains in place.
3.67. Traders of pharmaceutical products and pharmacy-related equipment must be licensed by

the Ministry of Health. Importation of pharmaceuticals and related equipment requires an ex ante
35
WTO document G/SPS/N/RWA/1, 28 June 2017
36
Presidential Order No. 28/01 of 9 July 2012.
37
Presidential Order No. 147 bis/01 of 15 July 2014.
38
MINAGRI online information. Viewed at:
http://www.minagri.gov.rw/fileadmin/user_upload/documents/ALICS/list_of_restricted_chemicals.pdf.
39
Provisional registration certificates, with a six-month validity, may also be granted.
40
The fees for import and export licence renewal are RWF 100,000 and RWF 50,000, respectively.
41
MINAGRI online information. Viewed at: http://www.minagri.gov.rw/index.php?id=613.
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visa, and a release authorization upon the consignment's arrival. The activity licensing and import
authorization procedures are carried out online, through the RESW.
3.3.4 Competition policy and price controls
3.68. Although Rwanda enacted a Competition and Consumer Protection law 42 in 2012, it is yet to
establish an operational competition authority. Legislation43 providing for the creation of a National
Standards Inspectorate, Competition and Consumer Protection Authority (NICA) was enacted in
2013 but was not implemented until it was superseded in 2017 by a law44 providing for a Rwanda
Inspectorate, Competition and Consumer Protection Authority (RICA). According to the authorities,
work on the establishment of RICA is under way.
3.69. Since 2010, a Competition and Consumer Protection Unit has been in place at MINICOM
with the mission to address competition and consumer protection matters, including in regulated
sectors. MINICOM exercises its jurisdiction on such matters through cooperation and consultation.
In addition, it conducts public awareness campaigns intended to provide a platform for identifying
and addressing anticompetitive practices in Rwanda.
3.70. Rwanda's legislation provides that prices are determined by market forces unless there is
market failure.45 Prices of goods and services, which have been deemed sensitive, may be fixed
through a ministerial order. Since 2016, the Rwanda Utilities Regulatory Authority (RURA)
coordinates consultations with petroleum dealers, MINICOM, the Ministry of Infrastructure, and the
Ministry of Finance and Economic Planning on the setting of nation-wide minimum retail prices for
petroleum products. Public transport fares and utilities tariffs are also regulated. Minimum
producer (farm gate) prices for certain agricultural commodities, including maize, potatoes, rice,
beans and milk, are set in a consultative process involving MINICOM, producers' associations and
MINAGRI.
3.3.5 State trading, state-owned enterprises, and privatization
3.71. Rwanda has not submitted any notifications regarding state trading enterprises to the WTO.
3.72. Information on state-owned enterprises (SOEs) was not available. Nonetheless, state
involvement remains prevalent in many sectors of the economy and, in some cases, continues to
crowd out private entrepreneurs. In 2016, Rwanda had over 23 SOEs that were involved in
commercial operations in various industries, including agri-food, construction, ICT, aviation,
mining, hospitality, financial services, water and electricity utilities, and transport and storage
services.46 According to the authorities, SOEs do not receive any special tax treatment. However,
the BRD is exempted from corporate income tax.47
3.73. Rwanda has privatized over 100 companies since the start of its privatization programme in
1996. The RDB's Strategic Investment department is responsible for implementing the
privatization programme, as well as monitoring privatized companies (continuity of business) and
advising the government accordingly. In 2016, a report by Rwanda's Office of the auditor general
of state finances highlighted a number of shortcomings in the management of privatization
activities. It flagged instances of poor coordination among relevant institutions, weak
accountability, departures from a competitive selection process, and inadequate safeguards of
State interests against business risks.48
42
Law No. 36/2012 of 21 September 2012.
43
Law No. 61/2013 of 23 August 2013.
44
Law No. 31/2017 of 25 July 2017.
45
Law No. 15/2001 of 28 January 2001.
46
Office of the auditor general of state finances, Performance audit report of strategic management of
privatization activities (May 2016). Viewed at:
http://www.oag.gov.rw/fileadmin/user_upload/Performance_Reports/STRATEGIC_MANAGEMENT_OF_PRIVATIZ
ATION_ACTIVITIES.pdf.
47
RRA online information. Viewed at: http://www.rra.gov.rw/index.php?id=30.
48
Office of the auditor general of state finances, Performance audit report of strategic management of
privatization activities (May 2016). Viewed at:
http://www.oag.gov.rw/fileadmin/user_upload/Performance_Reports/STRATEGIC_MANAGEMENT_OF_PRIVATIZ
ATION_ACTIVITIES.pdf.
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3.3.6 Government procurement
3.74. Rwanda is not a party or an observer to the plurilateral Agreement on Government

Procurement.
3.75. In April 2013, Rwanda enacted a comprehensive amendment of its Public Procurement Law,
modifying and complementing various provisions.49 Implementing regulations, updating certain
thresholds and standard bidding documents, and establishing standard contracts, entered into
force in March 2014.50 The Rwanda Public Procurement Authority (RPPA) remains in charge of
coordinating regulatory measures, as well as auditing, monitoring and building capacity in public
procurement entities. Rwanda has been implementing an electronic public procurement system (e-
procurement portal).
3.76. The Public Procurement Law applies to procurement of works, goods, consulting services or
other services by public institutions, except procurement for national defence and security.
Procurement by SOEs (parastatals) whose budget is not approved by Parliament is to follow
special proceedings under a separate legal act. If the law conflicts with the procurement rules of
any multilateral or bilateral agreement to which Rwanda is a party, the requirements of those
agreements prevail.
3.77. The admissible procurement methods depend on pre-defined thresholds for the contract's
estimated value (Table 3.6). In principle, the default method is open tendering. The use of a less
competitive method requires authorization from the RPPA, based on a reasonable justification from
the procuring entity and a confirmation from the supervising Minister that such procurement is in
public interest.
Table 3.6 Thresholds for procurement methods, 2018
Circumstances Prescriptions Threshold

Open competitive bidding
National tendering: Minimum notice period of 21 daysa Up to RWF 600 million
availability of technical capacity for goods/services; up to
and expertise in Rwanda; within RWF 1,200 million for
threshold works; and up to
RWF 100 million for
consultant services
International tendering: Minimum notice period of 45 days
contract either exceeds national
tendering threshold or requires
technical capacity and expertise
unavailable in Rwanda
(regardless of value)
Restricted tendering
For goods or works of highly Minimum notice period of 21 days for an Up to RWF 50 million for
complex or specialized nature, or international restricted tender and 14 days goods and works
available only from a few for a national restricted tendera; short list
suppliers or contractors must be drawn from pre-qualified bidders;
any person may apply for inclusion on the
short list
Request for quotation
Low contract value; Compare at least three offers (on price and Up to RWF 2 million for
off-the-shelf goods and standard non-price criteria); minimum response goods/services and
specification works period of 3 working days; not to be used works
more than once in 3 months for a tender of
the same category; must not always send
requests to the same bidders
49
Law No. 05/2013 of 13 February 2013 amending Law No. 12/2007 of 27 March 2007.
50
Ministerial Order No. 001/14/10/TC of 19 February 2014.
- 211 -
Circumstances Prescriptions Threshold

Single-source procurement/direct contracting
Only one supplier available; Negotiations may be carried out; Up to RWF 300,000
exceptional circumstances (force resulting contract must be in writing
majeure, unforeseen urgency);
extension/amendmentb of
contract already awarded
through open bidding; or
research commissioned to a
service provider
working/teaching in a higher
learning/research institution in
Rwanda
Force account
Works difficult to quantify Use civil servant labour and public No threshold
equipment
Community participation
The beneficiary community is When it is established that awarding the No threshold
able to participate in the delivery procurement contract to the beneficiary
of services community may contribute to economic
activity and employment creation
a A simplified procedure, allowing for a reduced notice period (at least five working days for national
restricted tendering/eight working days for national open tendering), applies to tenders whose value
does not exceed RWF 10 million.
b Any amendment increasing or decreasing the contract's value by more than 20% requires a new
tender.
Source: Ministerial Order No. 001/14/10/TC of 19 February 2014.
3.78. In international tenders, a 10% price preference is available for local bidders (including
bidders from regional economic integration blocs of which Rwanda is a member).
3.79. During 2012-17, government procurement accounted for approximately 4% to 8% of

Rwanda's GDP. Open tendering (both national and international) was the most frequently used
procurement method (Table 3.7).
Table 3.7 Public procurement expenditure, 2012-17

2012-13 2013-14 2014-15 2015-16 2016-17
Total expenditure (RWF billion) 292.5 409.8 390.7 250.5 520.1
(% of total expenditure)
Tender type
Goods 47.6 60.8 35.0 21.4 30.8
Services 8.6 10.1 8.7 7.2 6.9
Works 43.8 29.0 56.4 71.3 62.2
Source of funds
Autonomous 13.6 11.7 1.9 0.5 3.6
Direct donors 27.7 43.4 19.4 16.0 36.3
District revenues n.a. n.a. 1.3 1.3 6.6
Treasury 58.6 44.9 77.4 82.2 53.5
Tendering methods
Community approach 1.2 0.8 1.9 1.1 1.9
Force account n.a. n.a. 0.8 0.2 5.7
International open competitive tenders (IOT) 26.7 33.3 34.0 25.0 31.5
International restricted tenders (IRT) 0.9 2.4 0.3 2.7 0.9
National open competitive tenders (NOT) 62.9 50.6 50.8 29.1 41.6
National restricted tenders (NRT) 1.5 2.6 0.7 0.2 1.2
Request for quotations (RFQ) 0.7 2.6 2.9 0.2 0.7
Single sourcing 6.1 7.8 8.6 41.5 16.5
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2012-13 2013-14 2014-15 2015-16 2016-17

Memo:
Number of awarded contracts 4,866 4,467 3,996 1,525 4,178
Total procurement expenditure as % of GDP 6.1 7.9 6.9 4.0 7.3

3.80. National calls for tenders may be issued in Kinyarwanda or in both English and French;
international calls for tenders must be in both English and French. Whenever a call for tenders is
issued in both English and French, it must specify the original version.
3.81. According to the authorities, public procurement proceedings must be conducted through
Rwanda's portal, unless the RPPA has authorized a departure from this rule. Whenever
proceedings are conducted outside the e-procurement system, procurement notices for all
contracts valued above RWF 2 million must be published in at least one newspaper of wide
circulation, on the official website of the procuring entity and on the RPPA's official website.
International tenders must be advertised in at least one international newspaper of widespread
circulation.
3.82. Each procuring entity must submit an annual procurement plan to the RPPA and publicise
standardized information regarding forthcoming tenders. The RPPA must also receive monthly
reports on the procurement plan's implementation. The RPPA has been flagging recurrent
weaknesses in the implementation of the public procurement regime, including: poor compliance
with monitoring, reporting and public disclosure requirements; inadequate formulation of technical
specifications and terms of reference; and execution and payment delays.51
3.83. A (prospective or actual) bidder may, at any stage of the procurement proceedings, apply
for a review of a specific act contravening the procurement legislation. A request for review must
be submitted to the head of the procuring entity within seven days after the bidder became aware
of the circumstances giving rise to the request. The head of the procuring entity must suspend the
procurement proceedings and, within seven days after receipt of the request, issue a written
decision explaining its reasons and grounds, and indicating the corrective measures to be taken if
the request is valid.
3.84. If the head of the procuring entity fails to issue a decision within the prescribed time frame,
or if the bidder is not satisfied with the decision, the bidder may complain to an independent
review panel. Independent review panels have been set up, at the national and at District levels,
to conduct independent administrative reviews of complaints and challenges to the procurement
process.52 Panels are composed of seven members from public institutions, the private sector, and
civil society, with a term of office of four years.53
3.85. The panel must make a decision within 30 days following receipt of the complaint. Additional
time must not go beyond 30 days. The decision of the panel at the national level exhausts the
administrative review channel; thereafter the complainant may initiate judicial proceedings.
3.86. Violations of the procurement legislation by procuring officials are punishable by

imprisonment of 6 to 12 months or a maximum fine of RWF 500,000, or both. They may also be
liable to penalties under the Penal Code, the Law on prevention, suppression and sanction of
corruption and related offences54, the Law on leadership code of conduct, and the general statutes
of public service55, as well as other legislation concerning the ethical behaviour of civil servants.
Bidders found guilty of misconduct may be banned from participation in public procurement
51
RPPA Annual activity report 2016-2017 (September 2017). Viewed at:
http://www.rppa.gov.rw/index.php?id=487.
52
Lodging a complaint to an independent review panel is subject to a non-refundable fee of RWF 50,000
or RWF 100,000 depending on whether the tender's value is below or above RWF 20 million. An identical
appeal fee must be paid to proceed with the appeal from district to national level, unless the district-level
independent review panel has failed to take a decision within the prescribed time frame.
53
A panel must not have more than three members from the public sector.
54
Law No. 23/2003 of 7 August 2003.
55
Law No. 22/2002 of 9 July 2002.
- 213 -
tenders for a period of four to five years, depending on the gravity of the offense. Repeat
offenders are liable to a definitive ban.
3.3.7 Intellectual property rights
3.87. In April 2016, Rwanda's intellectual property (IP) regime was updated, through the
enactment of a special law, to include the protection of plant varieties and plant breeders' rights.56
Changes were also made to: the time frames for granting unilateral/compulsory licences and for
opposing registration of intellectual property57; and the fees payable for registration services of
intellectual property.58 The main IP law, the Law on the Protection of Intellectual Property59,
remained unchanged during the period under review.
3.88. IP administration remains the responsibility of the Office of the Registrar General (ORG) at
the RDB. MINICOM and the Ministry of Sports and Culture (MINISPOC) remain in charge of policy-
making, policy coordination, and monitoring.
3.89. As from January 2017, every registered intellectual property title is published in Rwanda's
Official Gazette. According to the authorities, eletronic publication on the website of the RDB has
been effective since 2012. The fees payable for substance examination and registration of IP apply
equally to domestic and foreign applicants.
Table 3.8 Application/registration of intellectual property titles, 2011-17

2011 2012 2013 2014 2015 2016 2017
Applications
Patents 11 2 154 453 597 348 316
Industrial designs 5 4 123 102 87 63 25
Trade marks 620 863 594 570 662 513 811
Registrations
Patents 0 0 0 1 26 118 175
Industrial designs 0 0 17 168 122 102 27
Trade marks 511 0 368 577 640 652 672
Source: Information provided by the RDB.
3.90. A member of the World Intellectual Property Organization (WIPO), Rwanda has ratified
seven WIPO-Administered Treaties including, as from August 2013, the Madrid Protocol
(international registration of marks).60 In the framework of its membership of the African Regional
Intellectual Property Organization (ARIPO), Rwanda has ratified the Harare Protocol (patents,
industrial designs, and utility models).61
3.91. Protection of inventions, utility models, industrial designs, trademarks, collective marks,
trade names, geographical indications, layout designs of integrated circuits, and copyrights and
related rights remains governed by the Law on the Protection of Intellectual Property, promulgated
in October 2009.62 Pursuant to the law, a foreign applicant for an IP right must be represented by
an industrial property agent (representative) approved in Rwanda. As from April 2016, any power
of attorney granted by a non-resident to a Rwanda-based industrial property agent must be
notarized (previously, a signature would have been sufficient).
3.92. In accordance with the law, an invention is patentable if: it is novel (no prior art anywhere
in the world); it involves an inventive step (it is not obvious); and it is industrially applicable.
Rwanda relies on the ARIPO for prior examination of substantive requirements, due to the lack of
technical expertise domestically. Patent protection is for 20 years.
56
Law No. 005/2016 of 5 April 2016.
57
Ministerial order No. 25 of 17 March 2016.
58
Ministerial order No. 24 of 17 March 2016.
59
Law No. 31/2009 of 26 October 2009.
60
WIPO online information. Viewed at: http://www.wipo.int/treaties/en/ShowResults.jsp?country_id
=148C.
61
Presidential Order No. 17/01 of 16 February 2011.
62
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3.93. Innovations that are new and industrially applicable may be granted utility-model
certificates, with no requirement on inventiveness. Utility models are protected for ten years (non-
renewable). At the end of the fifth year from the filing date, the right holder must pay a fee for the
utility model to be protected for the following five years.
3.94. A novel industrial design or model may be registered anywhere in the world. The duration of
the certificate of registration is 15 years, and may be renewed for two further 5-year periods. After
the 5th and the 10th years from registration, the IP right holder must pay a fee. As in the case of
patents, the prior examination of substantive requirements (novelty) is performed outside
Rwanda.
3.95. A layout design, if it is original, is protected for ten years. The application, examination, and
registration procedures are similar to those for patents. The use of a novel and original layout
design, created on the basis of an evaluation and analysis of a protected layout design, does not
require the consent of the owner of the protected layout design. However, the use of a derived or
dependent patent, which is not possible without infringing the main patent, requires the
authorization of the right holder of the main patent, or where appropriate, the granting of a
compulsory licence.
3.96. A trademark (collective mark, certification mark) may be registered if it is distinctive, and
not imitative, confusing, or descriptive. In principle, prior substantive examination is required. An
application that meets all the requirements for registration is published to allow for any opposition.
In case of opposition, the decision to register or reject the application is taken after further
examination. A registered mark is protected indefinitely, provided the right holder pays a renewal
fee every ten years. Trade names are protected even prior to, or without, registration.
3.97. Geographical indications are protected if quality, reputation or other characteristics of the
product can be attached to its geographical origin. A substantive examination is required for
registration. Only producers carrying out activities (in connection with the stated products) in the
region indicated in the register may be entitled to use the registered geographical indication for
commercial purposes.
3.98. In April 2016, the timeframe to lodge an opposition against the registration of a trademark
or a geographical indication was formally raised from 30 to 60 days from the date of publication.63
In the event of an opposition, a 14-day timeframe was also established for written response by the
applicant. In practice, the ORG has been applying a 60-day opposition period since October 2014.
3.99. As from April 2016, plant breeders may apply for protection of a plant variety that is new,
distinct, uniform, and stable.64 Specific criteria for novelty, distinctness, uniformity and stability
are set out in the law. Applications for plant breeder's rights are published to allow for any
opposition. A plant breeder's right is protected for a period of 20 years from the date of granting.
For trees and vines, the protection period is 25 years. The right entitles the plant breeder to sell,
multiply or distribute the relevant plant variety or to designate any other person to do so.
Decisions made regarding the granting, rejection, nullification, or cancellation of plant breeder's
rights are published in the Official Gazette.
3.100. Rwanda applies the national exhaustion of rights principle for patents, utility models,
industrial designs or models, layout designs, and marks. Nevertheless, the Minister in charge of
industry may authorize parallel imports when the protected product: is not available in Rwanda; is
available but does not respect the required standards; is available in quantities insufficient to meet
the local demand; or is deemed to be unfairly/abusively priced. Parallel imports may also be
authorized for any other reasons of public interest, including anticompetitive practices. In general,
a plant breeder's right is exhausted in Rwanda or in countries bound by the convention for the
protection of plant varieties. For cases involving further propagation of the variety or exportation
of the variety's propagating material/harvest to countries that do not have plant variety
protection, the plant breeder's right is not exhausted unless the exportation is meant for final
consumption.
63
Ministerial Order No. 25 of 17 March 2016.
64
Law No. 005/2016 of 5 April 2016.
- 215 -
3.101. The Law on the Protection of Intellectual Property obliges the right holder of an industrial
property title to use it (or transfer operating licences to others) for industrial or commercial
purposes in a sufficient and rational manner. Lack of or insufficient use of IPRs may trigger the
granting of compulsory licences, with payment of adequate remuneration, without the agreement
of the right holder. In addition, unilateral (ex officio compulsory) licences may be granted on
public interest or anti-competitive use grounds. Effective from 20 April 2016, unilateral licences
may be granted for four years; the timeframe for a compulsory licence is 12 months, renewable
whenever considered necessary.65 According to the authorities, no unilateral or compulsory
licences have been granted to date.
3.102. Compulsory licences to use a protected plant variety, with fair remuneration, without the
plant breeder's authorization may be granted for public interest reasons, defined as cases relating
to social welfare, national security, or environment protection.
3.103. Copyright (including computer programmes) is protected for the lifetime of the authors
(author and co-authors where appropriate) plus 50 years after the death of the last surviving
author. Phonograms are protected for 50 years following the end of the year of publication of the
phonogram, or if the phonogram has not been published, 50 years from the fixation of the
phonogram, or 50 years from the first month of the year that follows the year of fixation.
Broadcasts are protected for 25 years from the first month of the year that follows the year in
which the broadcast took place. Registration is not required for copyright holders to have their
rights protected.
3.104. The use and management of copyrights, rights of performing artists, of phonogram
producers, and of broadcasting organizations are entrusted to private companies for collective
management of copyrights and related rights. Collective management companies' responsibilities
include the collection, calculation, and distribution of remuneration arising from the use of the
rights. They may conclude agreements with foreign organizations regarding management of rights
belonging to foreigners. Rwanda's first collective management organization, the Rwandan Society
of Authors (RSAU), was established in 2010 with financial support (RWF 15 million) from the
government.66 To date, the RSAU remains the only collective management organization active in
Rwanda.
3.105. Penalties for abuse of an industrial property title include a fine of between RWF 50,000 and
RWF 500,000, a maximum term of imprisonment of five years, or both. Theft or fraudulent use of
a formula of invention in any industrial activity is punishable by imprisonment of between one and
five years, and a fine of five to ten times the value of profits obtained from the infringement.
3.106. Penalties for an act of forgery of copyrights and related rights vary according to the type of
offence. Producers and publishers of infringing phonograms are liable to imprisonment of 5-10
years and a fine of RWF 5-10 million; distributors and booksellers are liable to imprisonment of 1-5
years and a fine of RWF 500,000-1 million; and retailers may face a fine ranging from RWF 20,000
to 100,000. Broadcasters that illicitly communicate a protected work are liable to a fine of RWF
500,000-1 million. Any person who grants authorization in the name of performing artists, without
being authorized by the right holder, or any person who knowingly acts under false authorization,
is liable to imprisonment of six months to one year, and a fine of RWF 200,000-1 million.
3.107. Customs authorities may, upon request or on their own initiative, suspend customs
clearance procedures and thus the entry of imports suspected of infringing IP rights. Customs
must notify the right holder and the importer within three days. The Commercial Court,
established as a branch of the High Court of Rwanda in May 2008, remains responsible for
handling IP cases. Its decisions are subject to appeal in accordance with Rwandan legislation. No
information was available regarding enforcement actions taken during the review period.
65
Ministerial Order No. 25 of 17 March 2016.
66
Online information. Viewed at: https://en.unesco.org/creativity/policy-monitoring-platform/rwandan-
society-authors-rsau.
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4 TRADE POLICIES AND PRACTICES BY MEASURE
4.1 Agriculture, Forestry, and Fisheries
4.1. The agriculture sector, including forestry and fisheries, is an important pillar of the Rwandan
economy, accounting for approximately 70% of employment, 90% of domestic food consumption
and one-third of GDP.1 Agriculture output was generally on the rise during the review period, with
food crops remaining the dominant segment, followed by forestry (Chart 4.1). The principal food
crops grown are banana, cassava, beans, maize, potatoes and rice. Rwanda remains a net
importer of agriculture and food products. Its main export categories are coffee, tea, pyrethrum,
live animals and hides and skins.
Chart 4.[Rwanda] Agricultural output by main categories, 2011 and 2017.
Chart 4.1 Agricultural output by main categories, 2011 and 2017
2011 2017
1.4% 1.2%
20.5%
22.9%
RWF 1,336 bn. RWF 1,827 bn.

57.2% 12.6%
10.6% 58.6%
7.9% 7.0%
Food crops Cash crops Livestock & animal products Forestry Fishing
Note: Based on national accounts figures at constant 2014 prices.

Source: National Institute of Statistics of Rwanda online information. Viewed at:
http://www.statistics.gov.rw.
Source: National Institute of Statistics of Rwanda online information. Viewed at: http://www.statistics.gov.rw/.
4.2. Rwandan agriculture is still dominated by non-mechanized, rain-fed, subsistence farming.

Although Rwanda has made significant progress in land tenure regularization and administration
(section 2.4), its scarce arable land (estimated at 12,642 km2) and ownership fragmentation
(average plot size of 0.6 ha) continue to limit the possibilities to exploit economies of scale,
thereby discouraging investment in mechanization. Vulnerability to soil erosion, exacerbated by
Rwanda's topography and exposure to periodic weather-related shocks, also remains a major
limiting factor. In addition, the agriculture sector's productivity is hampered by, inter alia,
infrastructure deficiencies, limited availability of inputs (seeds, fertilizer and agricultural
machinery) and tailored agricultural finance products, and imperfect agricultural commodity
markets and value chains.
4.3. The Ministry of Agriculture and Animal Resources (MINAGRI) has primary responsibility for
policy formulation and coordination in the agriculture sector. MINAGRI has two implementing
agencies: the Rwanda Agriculture and Animal Resources Development Board (RAB), mandated to
increase productivity through research and extension services; and the National Agricultural Export
Development Board (NAEB), mainly tasked with fostering and diversifying agricultural exports.
Both RAB and NAEB were restructured in May 2017 with a view to improving service delivery; as a
result, NAEB was transformed into a SOE. The main laws governing agriculture are presented in
Table 2.1.
1
MINAGRI, Annual Report for Fiscal Year 2015-2016.
- 217 -
4.4. In the context of an on-going decentralization of the Rwandan public administration, local
governments have been absorbing the functions of MINAGRI's former local branches and certain
functions of RAB. Local governments serve as the focal point for coordination of multi-sector
responses to the needs of local communities. They are increasingly responsible for the delivery of
key agricultural sector programmes, including nutrition, extension services, soil erosion control,
disease control, small-scale irrigation, and rural feeder roads rehabilitation and maintenance.
Agriculture-related earmarked transfers from the central to local governments increased from
RWF 1.2 billion in 2009/10 to RWF 19.3 billion in 2015-16.2 According to the authorities,
earmarked transfers in 2017/18 amounted to approximately 12.1 billion.
4.5. Rwanda's agricultural policy aims to bring about a transformation of the sector from
subsistence to knowledge-based production, resulting in sustainable economic growth and
increased food security. In 2018, MINAGRI updated the National Agriculture Policy, dating from
2004, with a view to reflecting the evolution of overarching policy and institutional frameworks,
and to harmonizing macroeconomic and sub-sector policy instruments in the agricultural sector.
The scope of the updated policy document has been expanded to cover emerging issues, such as
GMOs, advances in digitalization, and organic agriculture. MINAGRI has also formulated the fourth
consecutive Strategic Plan for Agricultural Transformation (PSTA-4), to be implemented during
2018-24. Both the updated the National Agriculture Policy and PSTA-4 were approved by Cabinet
in July 2018.
4.6. Tariff protection to agriculture is provided under the CET (Main Report, Section 3.1).
Nevertheless, under the EAC "stay application" and "duty remission" schemes, Rwanda applies
lower rates on nine tariff lines. Certain agriculture inputs and reproductive animals may be
exempted from import duties if designated on a list established by MINAGRI.3
4.7. Income earned on agricultural or livestock activities is exempt from income tax, up to a
threshold of RWF 12 million in a given tax period.4 A number of agriculture-related goods and
services are exempted from VAT (Table A3.1).
4.8. Rwanda has not submitted any notifications to the WTO Committee on Agriculture. During
the review period, government-funded support measures included: fertilizer subsidies (20-50% of
retail prices); provision of improved cattle breeds through the Girinka (one cow per poor family)
programme; provision of seeds and fertilizers to farmers; financing of youth agribusiness projects;
and provision of inputs and training to "farmer promotors" responsible for disseminating best
agriculture practices. The BDF continued to administer agricultural financing support schemes,
including: credit lines; the second Rural Investment Facility (RIF2) providing grants for
investments in post-harvest and climate-resilient facilities in six commodity value chains; and the
Agricultural Guarantee Fund (AGF), providing guarantees for up to 75% of the total collateral value
required by lenders. According to the authorities, plans for the establishment of national
agriculture and livestock insurance schemes are under way.
4.9. Since 2010, Rwanda maintains a strategic grain reserve to guard against possible food
emergencies and to ensure the nation's food security. As the administrator of the national strategic
grain reserve (NSGR) programme, MINAGRI is responsible for construction of post-harvest
infrastructures (drying, storage and processing facilities) and for the management of Rwanda's
strategic grain reserve. Strategic reserve targets have been set at 10,000 t of maize and 5,000 t
of beans; the reserve stocks are replaced annually.5 The stocks are sourced from farmers'
cooperatives across Rwanda at a price jointly set by MINAGRI, MINICOM and farmer organizations
(typically, including a 10% mark-up on the cost of production). At the end of their 12-month
storage period, the grains are sold to public institutions (depending on demand) or through open
auctions; the minimum sale price is set by MINAGRI.
2
MINAGRI, Annual Report for Fiscal Year 2015-2016.
3
Ministerial Decree No. 003/07 of 9 May 2007.
4
Law No. 016/2018 of 14 April 2018.
5
During the review period, the NSGR budget was: RWF 12.2 billion in 2011-12; RWF 16.2 billion in
2012-13; RWF 11.8 billion in 2013-14; RWF 21.1 billion in 2014-15; RWF 2.5 billion in 2015-16; RWF 5.8
billion in 2016-17; and RWF 3.4 billion in 2017-18. Reserve stocks of maize and beans are also kept by district
governments and the majority state-owned Rwanda Grain and Cereal Corporation.
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4.2 Mining and Energy
4.2.1 Mining, quarrying and upstream petroleum
4.10. Rwanda's is endowed with considerable subsoil resources, including columbite–tantalite

(coltan), tin ore (cassiterite), tungsten ore (wolframite) gemstones, gold, lithium and iron ore. The
mining industry is a major earner of export revenue (Table A1.1), although its performance has
mirrored international price fluctuations. The contribution of mining and quarrying to GDP remains
low in both nominal and real terms, having remained in the range of 2-3% during 2011-17.
4.11. Artisanal and small-scale operations, characterized by undercapitalization, rudimentary

technology and high labour intensity, continue to dominate mining activities in Rwanda. Quarrying
remains relatively undeveloped, and dominated by large international construction firms. Value-
added construction materials are mostly imported.
4.12. The mining industry's share of formal employment was estimated at 1.8% in 2018;
approximately 38% of mining and quarrying employees were also occupied in subsistence
agriculture.6 The scarcity of skilled labour continues to hamper the industry's development,
although Rwanda has taken steps to implement a range of training programmes. Additional
challenges include limited access to financing, and high energy and transport costs.
4.13. During the period under review, Rwanda updated the legal and institutional framework for
geology and mining through the enactment of new laws governing petroleum exploration and
production, mining and quarry operations, and instituting a minerals tax (Table 2.1).
Implementing regulations were also enacted to clarify, inter alia, criteria and modalities for:
guarantee of environmental protection, mine categorization, activity licensing, and exportation of
mineral ore samples.7 In addition, Rwanda implemented a "bag and tag" mineral traceability
scheme, compliant with international industry standards and the regional certification mechanism
adopted by the International Conference on the Great Lakes Region.
4.14. In March 2017, the newly established Rwanda Mines, Petroleum, and Gas Board (RMB) took
over the geology and mining functions of the former Rwanda Natural Resources Authority (RNRA)
and the Ministry of Natural Resources (MINIRENA). The RMB is responsible for: formulating policies
and strategies on subsoil resources (except water), and coordinating their implementation;
licensing (except for trade in minerals) and supervising entities involved in petroleum exploration
and extraction, and minerals extraction, trade and processing; and carrying out geology research
and exploration activities.
4.15. Other institutions responsible for certain aspects of subsoil resources management include:
the RDB, facilitating investment projects and overseeing environmental impact assessments
(EIAs); the Rwanda Environment Management Authority (REMA), setting environmental standards
and carrying out environmental inspections; and MINICOM, issuing mineral trading licences.
4.16. Rwanda's legislation provides for several types of mineral (exploration and mining) and
quarry licences (Table 4.1). A special licence, issued by the RMB, is required for any activity
related to radioactive minerals. In general, a licence is granted to the first applicant that has
fulfilled all relevant requirements. A competitive bidding process for the awarding of mineral
licences may be required by ministerial order for any area with known mining potential, based on
exploration carried out by the Government or on past exploration/mining operations.
4.17. All licence applications must indicate, inter alia, the proposed location of activities, an action
plan with implementation timeframe, planned investment with proof of its source, and employees'
qualifications. In addition, applications for an exploration licence must be accompanied by an
environmental protection plan, whereas mining licence applicants must submit an approved
mineral exploration report, an approved EIA, and a financial guarantee of environmental
protection. Large-scale quarry licences also require an approved EIA and a financial guarantee of
environmental protection. Upon approval, all licensees must elaborate a corporate social
6
National Institute of Statistics of Rwanda, Labour Force Survey Trends: February 2018 (June 2018).
7
Ministerial Orders No. 001/MINIRENA/2015, 002/MINIRENA/2015 and 003/MINIRENA/2015
(24/04/2015), and Ministerial Instructions No. 010/MINIRENA/2016 (11/01/2016).
- 219 -
responsibility plan in consultation with the concerned local authorities. All licences are
transferrable, subject to authorization.
4.18. The RMB is also responsible for awarding petroleum exploration and production licences with
3-year and 25-year validity, respectively. There were no active petroleum exploration or
production licences during the review period. In 2017-18, the RMB commissioned some petroleum
exploration activities, including gravity and magnetic surveys.
Table 4.1 Mineral and quarry licence requirements, 2018

Licence type Application Fee due on Surface Conditions
feea approval area feeb
(RWF) (RWF) (RWF)
Mineral licences
Exploration 100,000 200,000 250/ha 4-year validity, renewable once after
relinquishment of 50% of the unexplored area
Artisanal 200,000 300,000 300/ha 5-year validity (renewable); minimum thresholdsc:
mine reserves of 30 tonnes and monthly output of
0.5 tonnes; no mining beyond 40 m depth without
special authorization; minimum capital investment
RWF 70 million within 5 years
Small-scale 200,000 500,000 300/ha 15-year validity, renewable for 10-year periods;
mine minimum thresholdsc: reserves of 200 tonnes and
monthly output of 3 tonnes; minimum capital
investment RWF 700 million within 5 years
Large-scale 200,000 1,000,000 500/ha 25-year validity, renewable for 15-year periods;
mine minimum thresholdsc: reserves of 3,000 tonnes
and monthly output of 15 tonnes; minimum capital
investment RWF 3.5 billion within 5 years
Quarry licences
Non- n.a. n.a. n.a. Area should not exceed 1 ha; 1-year validity
commercial (renewable)
small-scale
Commercial 50,000 200,000 300/ha Area should not exceed 5 ha; 5-year validity
small-scale (renewable); capital investment of at least
RWF 5,000,000
Large-scale 200,000 1,000,000 500/ha Area should not exceed 50 ha; 25-year validity
(renewable); capital investment of at least
RWF 100,000,000; must add value to the
extracted materials

a Non-refundable.
b Payable annually.
c Based on estimates determined by the exploration report or production reports (for previously mined
sites).
Source: Law No. 13/2014 of 20 May 2014 and Ministerial Orders No. 002/MINIRENA/2015 and
No. 003/MINIRENA/2015 of 24 April 2015.
4.19. In the procurement of goods and services, the holders of a mineral or a quarry licence are
required to give priority to Rwandan contractors and goods made in Rwanda. Licensees must
provide periodic reports to the Minister in charge of mines and quarries regarding their compliance
with the requirement to procure local goods and services.
4.20. Mining industry incentives include tariff exemptions for imported mining equipment.
Minerals sold on the domestic market are zero-rated for VAT. The absence of a tax holiday for
investments in mining quarrying has been flagged by many in the industry as a disincentive, given
the significant capital investments required in a mining project's initial stages.
4.21. As from September 2013, Rwanda levies a tax on the sale (including exports) of minerals,
assessed at: 4% of the "norm value" for base metals and other mineral substances; 6% of the
"norm value" for precious metals (including gold); and 6% of the gross value for gemstones
(including diamonds).8 In general, the "norm value" is calculated as the average monthly price at
8
Law No. 55/2013 of 2 August 2013.
- 220 -
the London Metal Exchange.9 The gross value for gemstones is based on a competitive market
value estimate. Taxpayers can deduct the amount paid in minerals tax from their income tax base.
4.2.2 Energy
4.22. Biomass continues to dominate Rwanda's energy matrix, accounting for approximately 85%
of domestic primary energy production in 2011-2018. The remaining primary energy supply is
from petroleum products (13%), and electricity (2%). Rwanda has considerable untapped
potential for energy production from several sources, including solar, hydropower, methane gas,
and peat deposits.
4.23. Rwanda's peat reserves are estimated at 155 million tonnes, which could potentially fuel
1,200 MW of electricity generation. In 2018, there were two active energy projects exploiting peat
resources. The Lake Kivu methane gas reserves, shared equally between Rwanda and the
Democratic Republic of the Congo, are estimated at around 55 billion m3 with an estimated annual
renewal rate of about 120 million m3. Three projects for methane-powered electricity generation
were at different stages of implementation in 2018. In addition, there are 333 potential sites for
installation of micro hydropower plants across Rwanda.
4.24. The Ministry of Infrastructure (MININFRA) remains responsible for policy formulation in the
energy sector, except for the downstream petroleum sub-sector which is within the remit of
MINICOM. Following an expansion of its mandate in 2013, the Rwanda Utilities Regulatory
Authority (RURA) regulates, inter alia, all energy sub-sectors.10 Its responsibilities include all
technical, economic and legal aspects of regulation. RURA is in charge of issuing licences,
monitoring compliance, setting tariffs, facilitating dispute settlement, ensuring fair competition,
and protecting consumers' interests and rights.
4.25. Incentives in the energy sector include tariff exemptions for imported equipment and VAT
exemptions for certain energy supply equipment. Energy projects (except fuel-produced energy)
are also eligible for a corporate income tax holiday of up to seven years and/or a preferential
corporate income tax rate (15%).
4.2.2.1 Petroleum products
4.26. Rwanda does not produce but imports all domestically consumed petroleum products,
mostly diesel and petrol, which represented approximately 15% of total imports' value during
2011-16. About 75% of all imported petroleum products are consumed in the transport sector.
Diesel is also used by generators accounting for approximately 10.7% of all electricity produced in
Rwanda.
4.27. In the downstream petroleum subsector, RURA issues licences for: trading in liquefied
petroleum gas (LPG), including importation; installation of LPG plants; installation of petroleum
storage facilities and bulk fuel delivery facilities (service stations); trading in petroleum products,
including importation.
4.28. In 2018, there were 20 companies licensed to carry out importation, transportation,
storage, distribution, and wholesale of petroleum products and LPG. There was also one active
licence for installation of petroleum-related infrastructure. Petroleum products and LPG transit
through Tanzania and Kenya by trucks via two main road corridors. The long and expensive supply
routes result in high fuel prices in Rwanda. The limited supply options, coupled with logistical
inefficiencies, make Rwanda vulnerable to supply interruptions.
4.29. To enhance its ability to respond to serious trade distortions, Rwanda has been building up a
strategic reserve stock of petroleum products and prioritizing (public and private) investments in
storage facilities. Total storage capacity increased from 31 million litres in 2015 to 73.1 million
litres in 2018, but still falls short of the authorities' target of 90 million litres, equivalent to
3 months of consumption requirements. In 2018, there were two privately owned and five state-
9
Whenever a metal is not quoted on the London Metal Exchange, benchmark prices are taken from
Metal Bulletin. Should quotes be unavailable from the second source, benchmark prices are taken from any
other exchange market.
10
Law No. 9/2013 of 1 March 2013.
- 221 -
owned (including two privately managed) storage facilities in Rwanda. State-owned depots
represented 64.8% of the total storage capacity.
4.30. Since 2016, RURA coordinates the setting of nation-wide minimum retail prices for fuels, in
collaboration with licensed dealers, MINICOM, MININFRA, and the Ministry of Finance and
Economic planning. The general approach is to fully pass through global oil price changes.
4.2.2.2 Electricity
4.31. In December 2017, electricity generation was almost evenly split between hydropower
(50.4%) and thermal (47.7%) sources. Solar power accounted for 1.9% of electricity production. 11
In June 2018, generation capacity installed in Rwanda amounted to 218 MW (up from 97 MW in
June 2011). Notwithstanding the progress made, installed generation capacity is still insufficient to
meet domestic demand and Rwanda remains a net importer of electricity. In 2017, reported
technical and non-technical losses constituted, on average, 20% of gross electricity supply, against
23.8% in 2011.
4.32. The national electricity grid covers 32.7% of Rwanda's territory; interconnections are in
place with Burundi and the DRC. Electricity subscribers connected to the national grid increased
from 216,000 in December 2011 to 718,311 in December 2017. The number of off-grid customers
also increased considerably in the same period, but the gap between urban and rural areas' access
to electricity remains very large. According to the authorities' estimates, more than 60% of
Rwandan households still have no access to electricity.
4.33. In 2014, the state-owned enterprise Energy, Water and Sanitation Authority (EWSA) was
broken up to ensure the separation of energy and water operations. On the energy side, the
restructuring resulted in the creation of a holding company, Rwanda Energy Group Limited (REG),
and two subsidiaries: the Energy Utility Corporation Limited (EUCL), operating the existing
generation plants, and transmission and distribution networks; and the Energy Development
Corporation Limited (EDCL), entrusted with energy infrastructure planning and development, and
electricity generation and distribution.12
4.34. RURA is responsible for activity licensing (Table 4.2) and tariff setting in the electricity
subsector. Electricity generation is open to competition, with 25 independent power producers
(IPPs) in operation as at 30 June 2018 (up from none in June 2011). IPPs sell their electricity to
the national system operator, EUCL, which has a de jure monopoly on electricity transmission in
Rwanda. EUCL also has a de facto monopoly on distribution, and domestic and international trade
in electricity. In addition to purchasing electricity from IPPs in Rwanda, EUCL imports electricity
from Burundi and the DRC.
Table 4.2 Electricity licensing, 2018

Licence type Validity Cost (USD)
Generationa 25 years 5,000-50,000 depending on
projected capacity
Transmission 25 years 25,000
Distribution 25 years 5,000-30,000 depending on
projected capacity
Domestic trade 5 years 300 for "small dealers"; 3,000
for "big dealers"
International trade 5 years 10,000-30,000 depending on line
voltage
a Production of electricity for own consumption does not require a licence if the generation capacity is
less than 50 kW. A generation licence also gives its holder the right to sell electricity to large-scale
customers in Rwanda.
Source: RURA.
11
Rwanda Utilities Regulatory Authority, Statistics in Electricity Sub-Sector as of December of the year
2017.
12
All three enterprises are fully state-owned.
- 222 -
4.3 Manufacturing
4.35. Manufacturing output expanded by nearly 47% in real terms between 2011 and 2017,
registering steady growth across all industries. Food processing remained the principal industry,
followed by beverages and tobacco, and chemicals, rubber and plastics (Chart 4.2).
4.36. Notwithstanding the steady growth, at less than 6% in 2017, the manufacturing sector's
contribution to real GDP is still modest. Rwanda remained a net importer of manufactures
throughout the review period; its trade deficit widened considerably due to sustained dynamism in
imports of machinery and transport equipment, chemicals and other semi-manufactures.
Chart 4.2 Manufacturing output by main categories, 2011 and 2017

Source: National Institute of Statistics of Rwanda online information. Viewed at:
http://www.statistics.gov.rw.
4.37. The high inland transport costs, a consequence of Rwanda's landlocked situation and the
dependence on a single mode of transport, are a disincentive to establish manufacturing
operations in the country. Weaknesses in electricity supply and telecommunications pose
additional challenges. To offset these disadvantages, Rwanda offers a range of tariff and tax
concessions for investment in manufacturing, as well as incentives under its SEZ programme and
the EPZ scheme harmonized at EAC level (Section 3.3.1).
4.4 Services
4.38. Rwanda has undertaken limited GATS commitments on certain professional services (legal,
medical, and dental services); adult education services; sanitation and similar services; hotel and
restaurant services; and recreational, cultural, and sporting services in centres promoting eco-
tourism. For each of these services, Rwanda has undertaken not to maintain any market access or
national treatment restrictions for modes 1 to 3 (cross-border supply, consumption abroad, and
commercial presence). Unbound are measures affecting the presence of natural persons for the
supply of medical and dental services, and hotel and restaurant services (specialized personnel
and senior executives are the exception).13 For the other activities mentioned above, Rwanda has
undertaken not to maintain any restrictions on the presence of natural persons.
13
WTO documents GATS/SC/107, 30 August 1995, and S/DCS/W/RWA, 24 January 2003.
- 223 -
4.4.1 Transport
4.39. During the review period, the economic disadvantages of Rwanda's landlocked situation
continued to be exacerbated by weaknesses in transport infrastructure. Due to the country's
predominantly mountainous terrain, most passengers and cargo are transported by road. For
access to international markets, Rwanda mainly depends on two transport routes, the Northern
and Central corridors, connecting the landlocked countries of East and Central Africa to the
seaports of Mombasa and Dar es Salaam.
4.40. Notwithstanding recent improvements to the national road network, inadequate domestic
and external transport links remain an important hindrance to trade flows. Although it still has no
railway network in operation, Rwanda has joined forces with neighbouring countries to deploy
railway links along the Central and Northern corridors.
4.41. The Ministry of Infrastructure (MININFRA) remains in charge of infrastructure-related policy

formulation for all modes of transport. Public entities under MININFRA's supervision include the
Road Maintenance Fund (RMF), the Rwanda Transport Development Agency (RTDA), the Rwanda
Civil Aviation Authority (RCAA), Rwanda Airports Company (RAC), Aviation Travel and Logistics
(ATL), and the national flag carrier airline Rwandair. The regulation of road and inland waterway
transport services is within the remit of the Rwanda Utilities Regulatory Authority (RURA). The
Central and Northern corridors traversing Rwanda are managed by respective regional agencies.
4.42. While various laws (Table 2.1) and regulations were adopted during 2011-18, Rwanda still
lacks an overarching law governing the transport sector. A Public Transport Policy and Strategy
document and a Strategic Transport Master Plan were elaborated in 2012. Rwanda's main
objectives in the transport sector include: increasing external connectivity, diversifying the
available modes of transport, and improving the quality of transport services.
4.43. Transport service providers are required to pay an annual regulatory fee equivalent to 1%
of their turnover as a contribution to the functioning of RURA.
4.4.1.1 Road transport
4.44. Road transport is estimated to account for over 95% of the volume of freight and human
movement. In 2017, the active licences in the subsector comprised: 25 for domestic transportation
of goods, 47 for domestic transportation of persons, 6 for cross-border transportation of persons,
14 for freight forwarding, 30 for car rental operations, and 53 for taxi cab services. According to
the authorities, the majority of road transport operators are privately owned. The State owns 52%
of Rwanda Interlink Transport Company Ltd (RITCO), a public-private joint venture providing
passenger transport services mostly in rural areas.
4.45. The Rwandan road network is fully state-owned. Its maintenance costs are generally high,
due to the mountainous terrain and rainfall-driven erosion. Since 2011, MININFRA has made
efforts to improve road conditions. Rehabilitation and maintenance of rural feeder roads by local
governments has also been one of the pillars of the National Agriculture Policy (Section 4.1). In
2016, 95% of national paved, 55% of national unpaved and 45% of district unpaved road
networks were deemed in good condition.14 The corresponding figures in 2011 were 45%, 10%
and 10%.
4.46. The revenues of the RMF are derived from: a fuel levy and road toll charged on foreign
heavy vehicles as per COMESA regulations.15 Receipts from an infrastructure development levy
(section 3.1.4) are also intended to help finance maintenance works on Rwanda's road network.
Collected funds are disbursed on a quarterly basis to the RTDA, the City of Kigali and district
governments for execution of routine road maintenance.
14
MININFRA, Infrastructure Sector Annual Report for FY 2015/16 (August 2016).
15
In 2018, total RMF resources amounted to RWF 49billion, about 75% of which were attributable to the
fuel levy.
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4.47. Rwanda's road connections to the Port of Mombasa and Dar es Salaam are 1,740 km and
1,480 km long, respectively. The long distances, coupled with unequal flows on the trading routes,
pose significant difficulties and costs in transporting Rwandan goods to international markets.
4.48. The provision of domestic freight, domestic (intercity and urban) passenger, and
international passenger transport services is subject to licensing by RURA. 16 Long-term (five-year)
licences for provision of transport services on specific routes are awarded through a competitive
tendering process. For routes not covered by a long-term licence, RURA may award short-term
licences with two-year validity (renewable) or temporary authorizations valid for three months.
RURA also sets the fare tariffs for public transport within Kigali and on intercity routes.
4.4.1.2 Air transport
4.49. Rwanda is signatory to the Yamousoukro Decision of 1999 and the Declaration of Solemn
Commitment of 2015 on the liberalization of African airspace. International air transport services
remain governed by bilateral agreements. As at October 2018, Rwanda had ratified 16 such
agreements covering 16 partner countries. All bilateral agreements in force stipulate first through
fourth freedoms of the air; the agreement with Burundi also provides for fifth freedom rights.
4.50. The national flag carrier, Rwandair, receives financial support from the State for aircraft
purchases and operating costs. Budgetary allocations in support of the airline's operations
averaged 0.7% of GDP during 2013-17.17 During 2011-18, Rwandair's fleet increased from 5 to 12
aircraft.
4.51. During the review period, Rwanda restructured state-owned assets in the air transport
subsector with a view to, inter alia, separating the RCAA's regulatory and commercial operations.
Aviation Travel and Logistics Ltd (ATL), a holding company established in October 2015,
consolidated the activities of five SOEs: Rwandair (the national flag carrier), Rwanda Airports
Company Ltd (air navigation services; management of airports), Akagera Aviation Ltd (aviation
(helicopter) services; aviation training; aviation maintenance), Rwanda Tours and Events Ltd
(tourism services), and Rwanda Links Logistics Ltd (ground handling). As from March 2018, the
RCAA remained solely the civil aviation regulator; it no longer acts as the manager of national
airports and provider of air navigation services.18
4.52. As at October 2018, Rwanda had three airstrips (Ruhengeri, Butare, and Nemba), one
domestic airport (Gisenyi), and two international airports (Kigali and Kamembe). All airstrips and
airports are state-owned. During 2011-18, the authorities made significant investments in the
renovation of airport infrastructure, and in the modernization of air navigation and weather
reporting systems. However, due to increasing traffic, Kigali International Airport has been
operating at nearly full capacity.
4.53. In September 2016, Rwanda signed a build–operate–transfer contract for what will become
the country's largest international airport (Bugesera) serving the Kigali metropolitan area. The
contract terms stipulate a 25-year concession for operating the airport, renewable for an additional
15 years. The main contractor, a Portuguese company, is to provide 75% of the funding, with the
remainder being provided by the state-owned enterprise Aviation Travel and Logistics Ltd (ATL).
4.4.2 Telecommunications
4.54. During 2011-18, the telecommunications sector maintained a steady growth trajectory and
remained one of the primary targets for foreign direct investment flowing into Rwanda.
Nevertheless, its contribution to real GDP remains low, although it increased from about 1.3% in
2011 to 1.7% in 2017.19 The number of formal employees in the sector also remains relatively low,
at 901 in March 2018 against 840 in December 2011.
16
Cross-border freight transport operators are licensed by the RRA.
17
IMF, Rwanda: Ninth review under the policy support instrument–debt sustainability analysis
(May 2018).
18
Law No. 03/2017 of 21 February 2017.
19
National Institute of Statistics of Rwanda, National accounts statistics, March 2018.
- 225 -
4.55. Internet was the most dynamic telecommunications market segment, in terms of both entry
of service providers and subscriber growth (Table 4.3). Two additional operators entered the fixed-
line telephony market in 2016, despite the declining trend in fixed-line teledensity. Market
concentration, as measured by the top three providers' combined market share, remained very
high in all segments.
Table 4.3 Penetration and concentration by segment, 2011-17

2011 2012 2013 2014 2015 2016 2017
Subscriptions per 100 inhabitants (%)
Fixed-line telephony 0.36 0.41 0.43 0.44 0.15 0.12 0.1
Mobile telephony 41.5 53.1 63.0 68.3 77.8 79.2 76.5a
Internet 7.0 8.4 19.6 n.a. 32.5 36.6 45.5
Mobile moneyb 6.0 13.4 23.9 57.1 68.1 86.3 86.0
Number of active providers
Fixed-line telephony 2 2 2 2 2 4 4
Mobile telephony 2 3 3 3 3 3 3
Internet 7 9 8 9 13 16 17
Market share of top provider
Fixed-line telephony 74.3 72.0 70.0 65.0 91.0 71.0 77.0
Mobile telephony 65.0 60.0 53.0 52.7 47.0 46.0 42.0
Internet 71.6 57.0 46.9 46.0 42.1 39.6 51.2
Market share of top 3 providers
Fixed-line telephony 100 100 100 100 100 99.9 99.9
Mobile telephony 100 100 100 100 100 100 100
Internet 99.7 99.6 99.9 99.9 99.9 99.8 99.7
n.a. Not available.

a The lower mobile teledensity figure for 2017 is attributable to a change in the definition of active
subscriptions (excluding those inactive for the past three months).
b Mobile money is a service that allows a mobile phone to be used for storing and transferring money,
and for accessing other financial services. Agent-assisted transactions account for the penetration
rate of mobile money being higher than that of mobile telephony.
Source: RURA quarterly publications. Viewed at: http://www.rura.rw/index.php?id=60.
4.56. During the review period, the Rwandan authorities adopted national policies on:
broadcasting, broadband, cyber security, data analytics, and digital talent.20 In November 2015,
following a review of the national Information and Communication Technologies (ICT) strategy and
plans, the authorities adopted the SMART Rwanda Master Plan (SRMP) with the aim of accelerating
the Rwandan economy's knowledge-based transformation. The SRMP, relies on three key enablers:
ICT governance and management; digital talent development; and broadband for all through
shared ICT infrastructure.
4.57. Legislative developments in the telecommunications sector included the enactment of a

framework ICT law, a law governing media, as well as laws establishing the Rwanda Information
Society Authority (RISA) and the National Cyber Security Authority (NCSA) (Table 2.1).
4.58. The Ministry of Information Technology and Communications (MITEC) has primary
responsibility for policy formulation. As from 2017, RISA is in charge of implementing national ICT
for development initiatives, whereas NCSA is responsible for implementing the national ICT
security policy. RURA remains the sectoral regulator; its mandate includes: granting licences;
monitoring compliance with licence obligations; managing scarce resources (frequency spectrum
and numbering); certifying imported ICT equipment; and representing Rwanda internationally on
issues pertaining to ICT.
4.59. Rwanda applies three types of licences: an individual licence granted by an express and
individual decision; a standard licence; and a "general authorization licence". Under the "general
authorization licence", a natural or legal person can install electronic communications networks,
provide electronic communications services, or use radio communications equipment on the basis
of a simple notification to RURA.21 The authorization is granted automatically, free of charge, and
for an unlimited term. Standard or individual licences are required from: providers of
20
Ministry of Information Technology and Communications online information. Viewed at:
http://mitec.gov.rw/policies-publications/policies-and-regulations/policies/approved-policies/.
21
Related activities, such as importation, supply, installation and maintenance of electronic
communications equipment, also fall within the general authorization system.
- 226 -
communications network infrastructure; network service providers; application service providers;

and content service providers.22
4.60. All licensed operators are required to contribute 2% of their annual turnover to a universal
access fund (UAF).23 RURA has the mandate to manage this fund in a way that favours the spread
and take-up of ICTs in designated remote and underserved areas of Rwanda. Project proposals
seeking UAF financing may be submitted by the general public and must be approved by RURA's
Regulatory Board. Implementation contracts for approved projects are awarded through
competitive bidding, in accordance with Rwanda's legislation on public procurement, to
telecommunications operators licensed in Rwanda.24
4.61. According to the authorities, most prices in the telecommunications sector are liberalized.
While operators may freely negotiate technical and commercial arrangements for interconnection,
RURA intervenes to set fair, reasonable and non-discriminatory interconnection rates.
4.62. Consumers' switching costs remain a significant barrier to entry in both mobile and fixed-
line telephony due to the lack of a number portability mechanism. Apart from the LTE (4G)
segment where retail service providers are required to purchase wholesale connectivity from a
single network operator (see below), there are no virtual telecommunications operators in
Rwanda. In addition, Rwanda is yet to implement pro-competitive measures, including: secondary
spectrum trading; local loop unbundling; national mobile roaming; carrier pre-selection; and
wholesale line rental.
4.63. Through a public-private partnership (PPP) with a Korean company, Rwanda launched the
deployment a national fibre-optic network and a national LTE network in 2008 and 2013,
respectively. The roll out of fibre-optic infrastructure (over 3,000 km covering all of Rwanda's 30
districts and 11 border points) was completed by 2011. This fibre-optic backbone is operated by
Korea Telecom Rwanda Networks (KTRN), which is 49% state-owned.
4.64. Following the launch of operations within Kigali in November 2014, the LTE network has
continued expanding. As of March 2018, it covered 92.5% of Rwanda's territory, representing an
area inhabited by 95.1% of the population. KTRN has been granted spectrum and an exclusive
license to operate the LTE network for 25 years. KTRN offers LTE connectivity on a wholesale basis
to mobile operators and internet service providers in Rwanda.
4.65. Any radio or telecommunications equipment, whether used in the deployment of networks
or by end-users, requires type-approval certification before it may be sold for use, imported, or
installed in Rwanda. Virtually all such equipment is imported. RURA issues type-approval
certificates on an item-specific basis. Subsequent importations of previously type-approved items
are not required to repeat the certification procedure in order to clear customs. To date, there are
no equivalence recognition arrangements for type approvals granted in overseas jurisdictions.
4.66. As at March 2018, there were 28 licensed courier and postal operators in Rwanda, including
1 intra-city, 5 regional, 14 domestic, and 7 international courier licensees, as well as the holder of
the public postal operator licence. The National Post Office (NPO), a public institution, provides:
mail services; certain financial services (money transfers, current and savings accounts, foreign
exchange); and ICT training and certification. According to the authorities, NPO retains a
monopoly on the management of P.O. boxes and the sale of postal stamps. Approximately 99.9%
of mail deliveries carried out by NPO take place through its 11,303 P.O. boxes.
4.4.3 Financial services
4.67. Rwanda's financial services sector accounted for about 3% of real GDP at end-June 2018,
up from 2.8% in 2011.25 Although it continued deepening during the review period, the Rwandan
financial system remains underdeveloped, with particularly shallow non-bank segments. Financial
22
Law No. 24/2016 of 18 June 2016.
23
Presidential Order No. 05/01 of 13 March 2004.
24
During 2011-18, UAF-funded projects included: the establishment of a national emergency call
centre; support to the National Council of Persons with Disabilities for acquisition of appropriate ICT
equipment; and provision of connectivity to schools and health facilities in remote areas.
25
National Institute of Statistics of Rwanda, National accounts statistics, March 2018.
- 227 -
intermediation, as reflected by the ratio of the (bank-dominated) overall loan portfolio to GDP, was
some 23.5% in June 2018 against 15.8% in 2011 (Table 4.4).
4.68. Total financial sector assets represented 53.7% of GDP in June 2018. Banks continue to
dominate the financial system, accounting for 65.5% of total assets in June 2018, down from
71.6% in 2011. The remaining financial sector assets were divided between the pension (18.1%),
insurance (9.8%), and microfinance (6.6%) segments. Banks also accounted for 92% of all loans,
down from 93.5% in 2011.
4.69. The National Bank of Rwanda (BNR) regulates and supervises the financial sector, except for
the securities market, and runs the central securities depository system. Its strategic goals
include: ensuring price stability and resilience to external shocks, promoting a sound and inclusive
financial system, and achieving a cashless economy. The Capital Market Authority (CMA) is
responsible for regulating the securities market, including commodity and warehouse receipt
exchanges, and collective investment schemes.26
4.70. During 2011-18, the state remained involved in the banking segment through the full
ownership of Development Bank of Rwanda (BRD), a majority stake in Rwanda's largest
commercial bank, Bank of Kigali, and (until March 2017) a minority stake in I & M Bank Plc. 27
Rwanda's public health insurance and pension schemes are operated by the Rwanda Social
Security Board (RSSB), and a "security organs" health insurance scheme is operated by Military
Medical Insurance (MMI). Both the RSSB and MMI are fully state-owned.
4.71. Rwanda's investment code designates financial services as a priority economic sector and
stipulates fiscal incentives for a range of financial intermediation activities (Section 2.4). Most
financial services are also VAT-exempt (Section 3.1.4.2). In addition, the state-owned BRD is
exempted from corporate income tax. In 2017, Rwanda's insurance segment received temporary
state support in the form of debt guarantees.28
Table 4.4 Financial sector indicators, 2011-18

(RWF billion, unless indicated otherwise)
2011 2012 2013 2014 2015 2016 2017 2018a
Total financial system assets, of which 1,513 1,881 2,289 2,714 3,193 3,559 4,047 4,280
Banks 1,084 1,248 1,511 1,803 2,133 2,380 2,685 2,824
Assets of state-owned banks 382 438 594 666 745 866 952 951
Micro finance institutions (MFIs) 77 101 129 159 209 223 244 283
Insurance companies 158 199 233 271 305 347 400 423
Pension funds 193 334 416 481 546 610 718 749
Loans, of which 623 835 954 1,141 1,386 1,591 1,784 1,874
Banks 583 775 881 1,051 1,269 1,457 1,646 1,723
State-owned banks 203 284 335 386 456 558 662 675
MFIs 41 59 74 90 117 134 138 150
Non-performing loans/total loans (%) 8.9 8.0 7.7 6.7 7.1 8.7 8.7 8.0
Non-performing loans/bank loans (%) 8.0 7.1 6.9 6.0 6.2 7.6 7.6 6.9
Non-performing loans/MFI loans (%) 12.0 8.5 6.8 7.0 7.9 9.0 8.2 8.0
Loans in foreign currency/bank loansb (%) 1.4 1.1 2.2 9.1 10.7 11.2 13.4 14.2
Loans/GDP (%) 15.8 18.5 19.4 20.9 23.2 23.9 23.5 23.5
Deposits, of which 697 795 935 1,128 1,535 1,645 1,847 1,989
Banks 651 741 866 1,042 1,418 1,530 1,723 1,833
State-owned banks 181 208 276 325 385 419 455 473
MFIs 46 54 69 86 117 114 124 156
Deposits in foreign currency/bank depositsb (%) 22.8 24.5 27.3 31.3 20.1 27.5 27.4 29.4
Deposits/GDP (%) 17.7 17.6 19.0 20.6 25.7 24.7 24.3 25.0
Interest rate spread, domestic currency (% point) 8.8 5.8 8.4 9.9 9.4 9.2 8.5 8.7
a As at 30 June 2018.
b Microfinance institutions (MFIs) are not allowed to take deposits or lend in foreign currency.
Source: National Bank of Rwanda.
26
Law No. 23/2017 of 31 May 2017.
27
In March 2017, the Government of Rwanda divested its stake of 19.81% in I & M Bank Plc through an
initial public offering and subsequent listing on the Rwanda Stock Exchange. MINECOFIN online information.
Viewed at:
http://www.minecofin.gov.rw/index.php?id=12&tx_ttnews%5Btt_news%5D=600&cHash=699f74eaef56bafdcf7
19b9d8aecd6e3.
28
IMF, Rwanda: Ninth review under the policy support instrument–debt sustainability analysis (May
2018).
- 228 -
4.72. Most loans remain short- to medium-term, with lending by both banks and microfinance
institutions (MFIs) concentrated mainly in retail trade and construction. As of June 2018, the
agriculture sector accounted for 14% of the entire loan portfolio of MFIs. During 2011-2018,
interest rate spreads between domestic-currency deposits and loans were in the range of 5.8 to
9.9 percentage points. The shares of foreign-currency denominated deposits and loans in the
banking segment's respective total portfolios have been on the rise (Table 4.4).
4.4.3.1 Banking and microfinance
4.73. At 30 June 2018, Rwanda's banking segment comprised 11 commercial banks, three
microfinance banks, one development bank, and one cooperative bank. Three new commercial
banks entered the Rwandan market during 2011-18, contributing to decreasing concentration in
the segment. In June 2018, the three largest banks accounted for 46.4% of total bank assets and
46.5% of total deposits, down from 50% and 57.8%, respectively, in 2011. However, their
combined share of gross loans increased from 54% to 55.8% over the same period.
4.74. Foreign banks may enter the Rwandan market by establishing a subsidiary; no foreign
equity caps apply. Foreign banks may also be authorized by the BNR to establish representative
offices, which are not allowed to conduct direct banking activities in Rwanda. Foreign payment
services institutions may conduct business through a branch office in Rwanda.
4.75. During 2011-18, the BNR revised several bank regulations, including on capital and liquidity
requirements, to align them with Basel II and (in some cases) Basel III Standards. Minimum
capital requirements apply depending on the type of bank licence sought: RWF 5 billion for
commercial banks; RWF 3 billion for development banks, and RWF 1.5 billion for microfinance
banks.29 In addition, foreign applicants must provide a statement of prior approval or no objection
from the supervisory authority of their home country for the establishment of a subsidiary or any
other office in Rwanda.
4.76. Licensed banks must also comply with prudential regulations, including minimum thresholds
for the risk-weighted capital adequacy ratio (15%), the liquidity ratio (30%), and the net stable
funding ratio (100%). According to the authorities, the licensing and prudential requirements apply
uniformly to all institutions regulated by the BNR.
4.77. Access to financial services in Rwanda remains driven by savings and credit co-operatives
(Umurenge SACCOs) and mobile phone-based financial services, known as mobile money. In its
2016 FinScope survey, the BNR estimated financial inclusion at 89% of the adult population, up
from 72% in 2012 and 47% in 2008.30 The establishment of district-level SACCOs is estimated to
have brought 2.7 million new customers into Rwanda's financial sector. Mobile money services
were first introduced in Rwanda in 2010 and by 2013 all three mobile telephony operators offered
mobile money products. Mobile money penetration grew from 6% in 2011 to 86% in 2017
(Table 4.3). The total value of e-payment transactions reached 30% of GDP in June 2018, up from
0.32% of GDP in 2011.
4.78. At 30 June 2018, there were 473 active microfinance institutions in Rwanda, including 19
limited liability microfinance companies and 454 SACCOs. MFIs serve approximately 3.7 million
depositors and 254 thousand borrowers in Rwanda. SACCOs accounted for 75.7%, 69.2% and
71.4% of total assets, loans and deposits, respectively, in the microfinance segment.
4.79. In order to obtain an MFI licence, applicants must establish as a legal person under
Rwandan law and comply with minimum capital requirements: RWF 5 million for a SACCO and
RWF 300 million for a limited liability company. The capital must be deposited in a blocked account
at the BNR.31 Licensed MFIs must also respect prudential capital adequacy and liquidity thresholds.
4.80. A deposit guarantee fund (DGF) for banks and MFIs, established in 2015, began collecting
quarterly premiums in April 2017.32 The DGF covers up to RWF 500,000 per depositor in the event
29
Applicants must pay a non-refundable application fee of RWF 1 million and an annual licence fee of
RWF 5 million.
30
National Bank of Rwanda, Annual Report 1 July 2016 – 30 June 2017
31
The BNR levies a licensing fee of RWF 50,000 and fee of RWF 5,000 for opening a branch.
32
Law No. 31/2015 of 5 June 2015 and Regulation No. 001/2016 of 18 May 2016.
- 229 -
of bankruptcy of a bank or a MFI. Deposits excluded from DGF protection include those made by:
banks and MFIs (interbank deposits); the Government or a public agency; insurance companies,
pension funds and collective investment schemes; and persons holding more than 5% of the
voting rights in the insolvent bank or MFI.
4.4.3.2 Insurance
4.81. In June 2018, Rwanda's insurance market comprised 16 insurance companies, including ten
non-life insurers, four life insurers, and two public medical insurers. There were also 17 insurance
brokers, 744 insurance agents, and 18 loss adjusters. The Rwanda Social Security Board (RSSB)
operates the public health insurance scheme, whereas Military Medical Insurance (MMI) operates
the "security organs" health insurance scheme.33
4.82. Gross written premiums amounted to RWF 70.2 billion, up from RWF 40.8 billion in 2011.
Private insurers, active predominantly in the non-life insurance segment, accounted for 53.7% of
gross premiums written. Compulsory insurance classes in Rwanda comprise: third-party liability
motor vehicle insurance, fire insurance of commercial or public gathering buildings, medical
professionals' liability insurance, and the community-based health insurance.
4.83. Insurance activities can be performed by Rwandan-incorporated companies or foreign

subsidiaries, duly licensed by the BNR. The licensing requirements include uniform minimum social
capital thresholds: RWF 1 billion for insurers and RWF 50 million for insurance brokers. In addition,
insurance intermediaries are required to have a professional indemnity insurance policy covering:
at least RWF 200 million per year and RWF 20 million per accident for insurance brokers; and at
least RWF 10 million per year for insurance agents and loss adjusters. 34 Foreign applicants must
provide a statement from the supervisory authority of their home jurisdiction declaring the
company's senior management to be fit and proper persons and giving prior approval (or no
objection) for the establishment of a subsidiary or any other office in Rwanda. Effective 23
February 2017, the BNR suspended the licensing of new insurance companies until further notice,
in a bid to strengthen the insurance subsector's financial stability and soundness.35
4.84. Licensed insurers are not allowed to carry out both short-term (non-life) and long-term
(life) insurance business. Prior approval from the BNR is required whenever Rwandan insurers wish
to underwrite risks outside the country or foreign insurers wish to underwrite risks in Rwanda. In
the latter case, the Rwandan insurers' association must confirm the lack of market capacity among
local insurers to underwrite the risk or the non-availability of the particular insurance product or
risk coverage on the domestic insurance market.36
4.85. According to the authorities, prudential requirements on liquidity, solvency and the
diversification of technical reserves apply uniformly to all licensed insurance companies.
4.4.3.3 Securities
4.86. As of June 2018, the securities segment comprised the Rwanda Stock Exchange (RSE),
8 securities brokers, 3 credit rating agencies, 2 custodians, 4 asset management companies,
3 investment advisors, 3 registrars, 1 sponsoring broker, and 1 unit trust. In principle, foreign
companies and individuals receive national treatment in licensing requirements and other
prerequisites for performing professional activities on the securities market. There are no
restrictions on foreign portfolio investment in Rwanda.
33
The Rwanda Social Security Board (RSSB) also dominates the pension segment, being the provider of
mandatory pension coverage to all formally employed workers in Rwanda. Voluntary pension schemes are still
at an embryonic stage of development.
34
The licensing of insurers is subject to a non-refundable application fee of RWF 1 million, an initial
licence fee of RWF 5 million and an annual supervision fee of RWF 5 million. Insurance intermediaries must pay
the following application and annual licence fees: brokers, RWF 100,000 and RWF 500,000; agents,
RWF 20,000 and RWF 50,000; and loss adjusters, RWF 50,000 and RWF 100,000.
35
BNR, Public notice on the moratorium of new insurance companies (23 February 2017). Viewed at:
https://www.bnr.rw/fileadmin/AllDepartment/PressReleases/doc00925220170223164847.pdf.
36
The BNR authorization is subject to the following processing fees: RWF 1 million for foreign insurers
and RWF 500,000 for insurance brokers licensed in Rwanda.
- 230 -
4.87. The capital market remains embryonic, with equities being the main securities traded,
although treasury bonds trading has been growing rapidly. The Government of Rwanda, through
the BNR, has been issuing treasury bonds in the primary market on a quarterly basis since 2013,
with a view to tapping domestic resources and fostering capital market development. Secondary
trading of treasury bonds on the RSE has been on the rise, spurred by the launching of a bond
reopening mechanism in June 2018. Total turnover on the secondary market for treasury bonds
was RWF 8billion in fiscal year 2017-18, up from RWF 4.7 billion in 2016-17.
4.88. As of June 2018, there were eight companies listed on the on the RSE; four initial public
offerings of shares took place during 2011-18. Bank loans remain the predominant source of
funding for Rwandan companies, although two corporate bond placements in 2008 and 2014
indicate investors' interest in such instruments.
4.89. In 2018, in an effort to attain full membership of the International Organization of Securities
Commissions (IOSCO), the CMA launched a review of the legal and regulatory framework in place
in Rwanda. Fiscal incentives aimed at promoting the development of Rwanda's capital market are
stipulated in the Investment Code, the income tax and VAT laws (Table 2.1).
4.4.4 Tourism
4.90. Rwanda's tourism sector grew steadily during 2011-17, although its estimated contribution
to real GDP remained below 3%. More than 1.5 million international arrivals were recorded in
2017, up from 908 thousand in 2011. Tourists arriving for holidays represented less than 10% of
all arrivals during the review period (Table 4.5).
Table 4.5 Arrivals by origin and purpose of visit, 2011-17

2011 2012 2013 2014 2015 2016 2017
Total arrivals (1,000) 908 1,061 1,122 1,219 1,298 1,377 1,553
(% of total)
By origin
EAC 41.1 41.1 42.2 43.2 43.6 41.6 43.1
Democratic Republic of the Congo 44.6 44.6 43.6 44.0 42.8 42.6 37.7
Rest of Africa 1.0 1.0 1.1 0.9 0.9 1.2 3.4
Europe 5.9 5.9 5.5 5.1 5.6 4.9 4.8
Asia 2.0 2.0 2.0 1.7 1.6 2.9 2.6
North America 2.7 2.7 2.9 2.5 2.7 3.2 2.6
Rest of the World 2.7 2.7 2.7 2.6 2.8 3.6 5.8
By purpose
Business 43.6 39.1 37.4 32.4 31.6 23.6 29.6
Visiting friends 32.6 28.8 29.2 32.6 34.2 35.1 30.6
Holiday 9.0 9.0 9.2 8.6 9.0 7.0 7.5
Transit 3.7 3.7 4.1 4.0 4.6 32.3 27.6
Other purposes 11.3 19.4 20.0 22.3 20.6 2.0 4.7
Source: Data provided by the authorities.
4.91. Rwanda is rich in biodiversity, including important endemic species of flora and fauna,
some of which are endangered. While it is renowned for mountain gorillas, Rwanda is home to
three more primate species: chimpanzees, black-and-white colobus monkeys, and the endangered
golden monkey. Other tourist attractions include savannah wildlife (notably the "big five" animals),
nearly 700 bird species, dense rainforests, beaches and night-fishing at Lake Kivu, cultural
experiences, and tea and coffee plantations. Kigali has also been developing a reputation for its
vibrant nightlife and for events tourism.
4.92. Despite the constraints posed by the country's relatively small total surface area
(26,338 km2), the authorities have allocated 10% of its territory to conservation and protection in
four national parks. Three national parks are transboundary in nature: Volcanoes National Park
borders parks in the Democratic Republic of the Congo and Uganda; Akagera National Park borders
a game reserve in Tanzania; and Nyungwe Forest National Park borders Kibira National Park in
Burundi. Total visits to these parks increased from 58,153 in 2011 to 94,036 in 2017. A fourth
- 231 -
national park in the west of the country, Gishwati-Mukura, was approved in 2015 but is yet to
become operational.37
4.93. MINICOM is responsible for policy formulation in the tourism sector. The Rwanda
Development Board (RDB) is in charge of tourism development, promotion and regulation, as well
as wildlife preservation and management of the national parks. The Rwanda Convention Bureau,
established in 2015, provides guidance and support to international event organisers through
every stage of planning.
4.94. National parks are state-owned; all except Akagera National Park are also state-managed.
According to the authorities, there is no state participation in the ownership of accommodation
facilities in Rwanda. Subject to conditions, investors in the tourism sectors are eligible for a
corporate income tax holiday of up to 7 years and/or an accelerated depreciation rate (50%) for
the first year of assets' acquisition.
4.95. During 2011-16, accommodation facilities maintained a steady growth trend (Chart 4.3). As
from October 2016, all tourism entities in Rwanda are required to obtain a tourism operating
licence. Specific prerequisites are stipulated for the licensing of accommodation facilities,
restaurants, bars, night clubs, tour guides, tour operators, travel agents, and tourism information
centres.38 No nationality or local sourcing requirements apply. Applicants must pay a licence fee of
RWF 80,000.
4.96. As at October 2017, there were 50 licensed accommodation establishments in Rwanda,

including three 5-star and seven 4-star hotels. Licensed tour companies and tour guides totalled
eight and nine, respectively. The first classification of accommodation facilities was carried out by
the RDB in 2011; the exercise follows EAC grading criteria and is repeated, in principle, every two
years. According to the authorities, a restaurant classification exercise is also under way.
Chart 4.3 Accommodation facilities, 2009-16
Source: National Institute of Statistics of Rwanda, Statistical Yearbook 2017.
4.97. Despite its good performance, the tourism sector still faces several challenges, including
scarcity of skilled labour and limited access to finance. The overreliance on gorilla tracking also
remains a challenge, although there has been some progress towards diversifying Rwanda's
tourism offer. The completion of Rwanda's largest airport, currently under construction, is
expected to attract more carriers and expand the network of direct international flights.
37
38
Ministerial Order No. 25 of 14 September 2016.
- 232 -
5 APPENDIX TABLES
Table A1. 1 Merchandise exports by product group, 2011-17

2011 2012 2013 2014 2015 2016 2017
Total exports, including re-exports (USD million) 402.9 471.2 596.4 653.4 612.5 648.4 980.4
% of total
Total primary products 88.5 88.5 90.9 82.2 83.3 72.8 86.6
Agriculture 42.2 47.1 41.5 34.8 44.2 41.1 35.9
Food 38.5 42.7 37.0 32.0 41.6 38.7 33.1
0741 - Tea, whether or not flavoured 13.1 18.5 10.3 8.8 11.0 11.4 8.8
0711 - Coffee, not roasted; coffee husks and skins 19.0 15.2 8.3 8.9 10.2 9.0 6.6
0423 - Rice, semi-milled or wholly milled 0.0 0.0 2.1 2.3 3.0 3.5 3.2
(including broken rice)
0461 - Flour of wheat or of meslin 1.7 2.7 2.2 3.1 2.6 2.6 2.9
0812 - Bran, sharps and other residues 0.0 0.0 0.0 0.5 0.6 1.3 2.6
4312 - Animal or vegetable fats and oils and 0.0 0.2 1.2 1.4 1.7 2.1 1.8
their fractions
4222 - Palm oil and its fractions 0.0 0.0 0.0 0.4 1.3 1.4 1.0
0011 - Bovine animals, live 1.3 1.1 1.3 1.1 1.1 1.0 0.8
0471 - Cereal flours (other than of wheat or meslin) 0.1 0.2 1.4 1.1 1.7 1.0 0.6
Agricultural raw material 3.7 4.4 4.5 2.8 2.6 2.4 2.8
2690 - Worn clothing and other worn textile articles; 0.8 0.2 1.1 0.2 0.5 0.8 1.6
rags
Mining 46.2 41.5 49.4 47.4 39.1 31.7 50.7
Ores and other minerals 41.2 29.7 37.5 31.3 19.9 13.8 34.3
2878 - Ores and concentrates of molybdenum, 9.6 12.1 22.5 16.0 10.9 6.3 14.6
niobium, tantalum, titanium, vanadium and
zirconium
2876 - Tin ores and concentrates 25.4 11.3 9.7 11.0 5.5 5.3 14.0
2879 - Ores and concentrates of other non-ferrous 5.9 5.6 4.9 4.0 2.9 1.8 4.9
base metals
2789 - Minerals, crude, n.e.s. 0.1 0.0 0.0 0.0 0.2 0.0 0.7
Non-ferrous metals 0.1 0.1 0.9 0.2 0.3 0.4 0.5
Fuels 5.0 11.7 11.0 15.8 18.8 17.4 15.9
334 - Petroleum oils and oils obtained from 4.9 11.7 11.0 15.8 18.8 17.4 15.9
bituminous minerals (other than crude)
Manufactures 11.1 11.5 9.1 16.7 11.8 14.6 11.7
Iron and steel 0.4 1.0 0.8 1.8 0.2 0.3 0.5
Chemicals 0.9 0.6 0.8 1.2 0.9 1.3 2.1
5429 - Medicaments, n.e.s. 0.4 0.1 0.0 0.0 0.0 0.0 1.1
Other semi-manufactures 0.8 0.8 1.4 2.4 1.9 2.5 3.9
6673 - Precious stones (other than diamonds) and 0.0 0.0 0.0 0.0 0.0 0.1 1.7
semiprecious stones
6612 - Portland cement, aluminous cement, slag 0.2 0.5 0.5 0.7 0.9 0.9 1.2
cement, etc.
Machinery and transport equipment 3.1 7.3 3.9 8.6 5.1 7.7 3.2
Power generating machines 0.1 0.0 0.2 0.2 0.5 0.1 0.2
Other non-electrical machinery 0.3 0.5 0.9 3.5 0.5 2.2 0.4
Agricultural machinery and tractors 0.0 0.0 0.0 0.1 0.0 0.1 0.0
Office machines and telecommunication equipment 0.4 0.2 0.5 1.1 0.7 3.0 0.3
Other electrical machines 0.1 0.1 0.1 1.3 0.8 0.4 0.3
Automotive products 2.0 6.2 2.2 1.8 1.6 1.3 1.6
7822 - Special-purpose motor vehicles 0.0 0.0 0.1 0.2 0.1 0.1 0.9
7812 - Motor vehicles for the transport of persons, 1.5 5.3 1.3 1.2 1.1 0.9 0.6
n.e.s.
Other transport equipment 0.2 0.3 0.1 0.7 1.0 0.7 0.4
Textiles 0.2 0.1 0.1 0.3 0.3 0.2 0.1
Clothing 0.0 0.0 0.0 0.1 0.1 0.2 0.4
Other consumer goods 5.8 1.7 2.2 2.3 3.3 2.3 1.4
Other 0.4 0.0 0.0 1.2 4.9 12.6 1.7
9710 - Gold, non-monetary 0.0 0.0 0.0 1.2 4.9 12.4 1.2

Source: WTO Secretariat calculations, based on data provided by the authorities and UN Comtrade.
- 233 -
Table A1. 2 Merchandise imports by product group, 2011-17

2011 2012 2013 2014 2015 2016 2017
Total imports (USD million) 1,456.2 1,805.6 1,852.7 2,004.5 1,980.1 1,970.3 1,838.8
% of total
Total primary products 35.9 34.5 36.0 33.7 32.7 31.2 35.9
Agriculture 17.2 17.9 18.6 17.4 17.1 17.8 21.5
Food 15.8 16.5 16.8 16.0 15.5 16.9 21.2
0612 - Other beet or cane sugar and 0.8 1.5 1.8 2.2 2.2 2.4 3.7
chemically pure sucrose
0412 - Other wheat (including spelt) and 2.3 2.8 2.8 2.1 1.6 1.5 2.7
meslin, unmilled
0423 - Rice, semi-milled or wholly milled 1.1 1.2 1.7 1.3 1.5 1.5 2.0
(including broken rice)
4222 - Palm oil and its fractions 2.1 1.9 1.5 1.0 1.1 1.2 1.5
4312 - Animal or vegetable fats and oils and 1.2 1.7 1.9 2.4 1.8 1.2 1.3
their fractions
0351 - Fish, dried, salted or in brine, but not 0.4 0.4 0.4 0.7 0.9 0.9 0.8
smoked
0441 -Maize, unmilled; seed 0.4 0.5 0.6 0.7 0.5 0.9 0.8
Agricultural raw material 1.4 1.4 1.8 1.4 1.6 0.9 0.3
Mining 18.8 16.6 17.4 16.4 15.7 13.4 14.5
Ores and other minerals 0.7 0.7 0.6 0.8 0.7 0.7 0.7
Non-ferrous metals 0.3 0.2 0.3 0.4 0.2 0.3 0.5
Fuels 17.8 15.7 16.5 15.2 14.8 12.4 13.3
334 - Petroleum oils and oils obtained 17.3 15.4 16.1 14.7 14.1 11.9 12.4
from bituminous minerals
(other than crude)
Manufactures 64.0 65.3 64.0 64.3 67.0 68.2 63.8
Iron and steel 5.9 5.7 5.0 4.4 5.0 3.7 4.3
6741 - Flat-rolled products of iron or non- 0.3 0.4 0.7 1.0 1.2 0.7 1.1
alloy steel
Chemicals 13.7 11.9 12.7 11.8 12.6 12.0 13.7
5429 - Medicaments, n.e.s. 2.8 2.9 2.7 3.2 3.5 3.6 4.0
5629 - Fertilizers, n.e.s. 1.3 1.8 1.5 0.9 1.3 0.9 1.4
5541 - Soap; organic surface-active products 1.0 1.0 0.9 0.9 0.9 0.8 0.9
and preparations for use as soap
5986 - Organic chemical products, n.e.s. 0.6 0.4 0.6 0.5 0.5 0.6 0.8
Other semi-manufactures 12.0 12.0 11.6 12.0 12.3 10.7 9.8
6612 - Portland cement, aluminous cement, 3.6 3.8 3.7 3.5 3.4 2.3 1.5
slag cement, etc.
6911 - Structures 1.8 1.0 1.3 1.5 1.7 0.8 0.9
Machinery and transport equipment 23.1 25.7 24.2 24.0 26.6 28.1 25.7
Power generating machines 0.6 1.3 1.2 0.7 0.7 0.8 0.7
Other non-electrical machinery 3.9 6.3 6.6 6.4 6.6 7.3 5.2
Agricultural machinery and tractors 0.4 0.2 0.3 0.3 0.4 0.2 0.2
Office machines and telecommunication 6.7 7.3 6.4 8.3 8.8 8.7 7.8
equipment
7643 - Transmission apparatus for 1.2 1.3 2.5 3.5 3.7 3.1 3.0
radio-telephony, radio-telegraphy,
radio-broadcasting or television
Other electrical machines 5.3 3.6 4.7 3.5 4.3 4.6 4.9
7731 - Insulated wire, cable and other 1.9 0.9 1.2 1.0 1.3 1.0 1.2
insulated electric conductors
Automotive products 4.8 5.5 4.1 4.1 4.8 5.5 5.4
7812 - Motor vehicles for the transport of 2.7 3.0 1.9 1.8 1.9 2.7 2.5
persons, n.e.s.
7821 - Motor vehicles for the transport of 1.3 1.2 1.1 0.9 1.5 1.5 1.5
goods
Other transport equipment 1.9 1.6 1.2 1.1 1.3 1.2 1.6
Textiles 1.7 2.6 2.1 1.4 2.3 2.5 1.7
Clothing 0.8 0.7 0.6 1.0 1.2 1.3 1.0
Other consumer goods 6.8 6.7 7.7 9.7 7.1 9.8 7.7
8722 - Instruments and appliances used in 1.0 1.4 1.3 1.5 1.1 1.2 1.0
medical, surgical or veterinary
sciences
Other 0.1 0.2 0.0 2.0 0.3 0.6 0.2

- 234 -
Table A1. 3 Merchandise exports by destination, 2011-17

2011 2012 2013 2014 2015 2016 2017
Total exports, including re-exports (USD million) 402.9 471.2 596.4 653.4 612.5 648.4 980.4
% of total
Americas 3.5 3.4 3.0 3.3 4.0 3.3 3.3
United States 2.5 3.3 2.9 3.3 3.9 3.1 3.3
Other America 1.0 0.1 0.1 0.0 0.1 0.2 0.1
Europe 49.4 35.9 28.6 11.9 18.6 15.2 13.7
EU-28 30.5 19.8 9.3 8.1 9.7 6.5 6.6
Belgium 11.6 8.2 6.1 1.2 3.2 3.1 3.2
United Kingdom 4.3 2.4 1.2 0.9 1.9 1.0 1.0
Luxembourg 0.4 0.3 0.2 0.1 1.3 0.3 0.7
Germany 0.6 1.2 0.6 0.6 1.3 0.4 0.7
Netherlands 0.2 0.3 0.4 0.2 0.1 0.1 0.3
Finland 0.0 0.0 0.0 0.0 0.1 0.3 0.3
EFTA 18.9 16.1 19.1 3.6 8.8 8.6 6.8
Switzerland 18.8 16.0 19.0 3.5 8.7 8.5 6.7
Other Europe 0.0 0.1 0.2 0.1 0.2 0.1 0.3
Turkey 0.0 0.1 0.2 0.1 0.1 0.1 0.3
Commonwealth of independent states (CIS) 0.0 0.0 3.5 0.0 0.0 0.0 0.0
Africa 35.2 48.4 49.5 78.4 59.7 59.9 49.7
Democratic Republic of the Congo 14.0 13.9 26.9 23.5 35.8 31.4 29.1
Kenya 15.8 24.2 15.2 11.4 17.0 15.8 12.4
Uganda 1.7 1.8 1.3 11.9 1.6 2.2 3.7
Burundi 2.0 2.5 3.6 3.0 2.9 5.5 2.1
Sudan 0.3 3.9 0.3 0.0 0.2 0.0 1.1
Ethiopia 0.1 0.6 0.6 0.6 0.7 0.9 0.5
Tanzania 0.4 0.8 0.3 27.8 0.3 0.8 0.2
Middle East 1.1 2.6 1.1 2.4 6.6 13.6 27.3
United Arab Emirates 0.8 1.3 1.1 2.0 6.5 13.5 25.6
Saudi Arabia, Kingdom of 0.0 0.9 0.0 0.4 0.0 0.1 1.5
Qatar 0.0 0.1 0.0 0.0 0.0 0.0 0.2
Asia 10.8 9.7 14.3 4.0 11.1 8.0 6.1
China 4.4 2.9 4.9 1.2 2.2 0.9 0.5
Japan 0.3 0.5 0.3 0.3 0.8 0.2 0.1
Other Asia 6.2 6.4 9.2 2.5 8.0 6.8 5.4
Singapore 0.0 0.4 0.9 1.2 3.2 3.1 3.0
Hong Kong, China 3.7 4.0 3.3 0.6 3.0 1.8 1.7
Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Memo:
EACa 19.8 29.4 20.4 54.0 21.9 24.3 18.5
a Including all EAC WTO Members.

- 235 -
Table A1. 4 Merchandise imports by origin, 2011-17

2011 2012 2013 2014 2015 2016 2017
Total imports (USD million) 1,456.2 1,805.6 1,852.7 2,004.5 1,980.1 1,970.3 1,838.8
% of total
Americas 4.9 4.1 3.8 2.5 3.2 3.5 3.8
United States 3.6 2.3 1.8 1.6 2.3 2.4 1.8
Other America 1.3 1.8 2.0 0.9 0.9 1.1 2.0
Europe 20.7 20.5 20.1 17.6 16.9 17.5 15.7
EU-28 15.4 15.2 15.5 13.1 12.9 13.1 12.7
Germany 2.9 2.5 3.1 2.6 2.9 3.6 2.9
Belgium 3.1 2.9 3.5 2.5 2.1 2.3 2.0
Netherlands 2.0 1.2 2.5 1.5 1.4 1.2 1.2
France 1.4 1.4 1.1 1.2 2.1 1.2 1.2
Sweden 0.9 1.5 0.9 0.9 0.5 0.8 1.1
United Kingdom 1.3 1.2 1.0 1.0 0.9 0.8 1.0
EFTA 4.7 4.8 3.7 2.6 2.3 2.0 1.2
Other Europe 0.5 0.5 0.9 1.9 1.7 2.4 1.8
Turkey 0.5 0.5 0.9 1.9 1.7 2.3 1.7
Commonwealth of independent states 0.4 2.4 1.7 1.9 2.0 1.6 2.7
(CIS)
Russian Federation 0.3 2.2 0.9 1.8 1.8 1.4 2.4
Africa 36.9 31.6 28.5 30.0 27.0 28.3 28.0
Uganda 12.8 12.3 11.1 11.7 10.5 9.8 9.5
Kenya 8.0 7.5 6.6 8.3 6.8 7.9 6.5
Tanzania 5.1 4.1 4.4 3.4 3.3 3.8 4.2
South Africa 4.6 4.0 3.6 3.7 3.3 2.4 2.7
Zambia 0.5 0.2 0.2 0.3 0.4 1.7 2.0
Egypt 1.7 1.1 1.2 1.1 1.3 1.1 1.2
Middle East 11.6 11.9 12.1 11.6 12.4 12.1 13.0
United Arab Emirates 7.5 7.4 7.4 8.9 9.6 9.9 8.7
Saudi Arabia, Kingdom of 0.7 2.3 2.3 1.2 1.4 0.8 3.4
Asia 25.5 29.6 33.7 36.4 38.6 37.0 36.7
China 10.2 12.5 13.2 18.2 16.7 17.5 17.4
Japan 2.8 3.2 2.5 2.0 2.3 3.1 3.0
Other Asia 12.5 13.9 18.0 16.2 19.6 16.4 16.4
India 7.2 8.4 10.5 11.2 12.5 10.0 9.8
Malaysia 0.2 0.2 0.2 0.2 0.4 1.0 1.6
Pakistan 0.7 0.8 1.5 1.1 1.5 1.6 1.2
Thailand 0.4 0.4 0.6 0.6 1.0 0.7 1.1
Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Memo:
EAC a 26.0 24.3 22.6 23.7 21.0 21.6 20.3
a Including all EAC WTO Members.

- 236 -
Table A3. 1 Goods and services exempted from VAT

Non-profit services regarding supplying clean water and ensuring environment treatment, with the
exception of sewage pump-out services
Goods and services for health-related purposes
(a) Health and medical services
(b) Equipment designed for persons with disabilities
(c) Goods and drugs appearing on the list established by the minister in charge of health and approved by
the minister in charge of taxes
Educational materials, services and equipment appearing on the list established by the minister in charge of
education and approved by the minister in charge of taxes
Books, newspapers and magazines
Transportation services by licensed persons
(a) Transportation of persons by road in vehicles which have a seating capacity of 14 persons or more
(b) Transportation of persons by air
(c) Transportation of persons or goods by boat
(d) Transport of goods by road
Lending, lease and sale
(a) Sale or lease of land
(b) Sale of the whole or part of a building for residential use
(c) Rent or grant of the right to occupy a house used as a place of residence of one person and his/her
family, if the period of accommodation for a continuous term exceeds 90 days
Financial and insurance services
(a) Premiums charged on life and medical insurance services
(b) Bank charges on current account operations
(c) Exchange operations carried out by licensed financial institutions
(d) Interest charged by banks on credit and deposits
(e) Operations of the BNR
(f) Fees charged by banks on vouchers and bank instruments
(g) Capital market transactions for listed securities and fees or expenses charged to investors by a regulated
collective investment scheme
(h) Transfer of shares
Precious metals: sale of gold in bullion form to the BNR
Any goods or services in connection with the burial or cremation of a body provided by an Order of the Minister
Energy supply equipment on the list established by the minister in charge of energy and approved by the
minister in charge of taxes
Trade union subscriptions
Leasing of exempted goods
All agricultural and livestock products, except processed ones. Processed milk, excluding powder milk and milk
derived products, is also exempted
Services of agriculture insurance
Services, agricultural inputs, and other agricultural and livestock materials and equipment appearing on the list
established by the minister in charge of agriculture and animal resources and approved by the minister in
charge of taxes
Gaming activities taxable under the law establishing tax on gaming activities
Personal effects of Rwandan diplomats returning from foreign postings, Rwandan refugees and returnees
entitled to tax relief under customs laws
Goods and services meant for Special Economic Zones imported by a Zone user holding this legal status
Mobile telephones and SIM cards
ICT equipment appearing on the list established by the minister in charge of ICT and approved by the minister
in charge of taxes
All goods, including materials, supplies, machinery and motor vehicles intended for public institutions in charge
of national defence or security
Machinery and capital goods of industries as well as raw materials used in industries appearing on the list
established by the minister in charge of industry and approved by the minister in charge of taxes
Source: Law No. 40/2016 of 15 October 2016.

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WT/TPR/S/384 • Rwanda

3.3.7 Intellectual property rights ...................................................................................... 213

Table 1.1 Selected macroeconomic indicators, 2011-17 ........................................................ 185

Table 3.4 Export Growth Facility components, 2018 ............................................................. 204

Table A1. 1 Merchandise exports by product group, 2011-17 ................................................. 232

1.1 Main Features of the Economy

Table 1.1 Selected macroeconomic indicators, 2011-17

2011 2012 2013 2014 2015 2016 2017

a Preliminary data for 2017.

1.2 Recent Economic Developments

Table 1.2 Balance of payments, 2011-17

2011 2012 2013 2014 2015 2016 2017

Source: BNR online information. Viewed at: https://www.bnr.rw.

1.3 Developments in Trade and Investment

1.3.1 Trends and patterns in merchandise and services trade

Chart 1.1 Composition of merchandise trade, 2011 and 2017

Exports (f.o.b.), including re-exports

Other 0.4% Other 1.7%

Total: USD 402.9 million Total: USD 980.4 million

Total: USD 1,456.2 million Total: USD 1,838.8 million

Note: Product groups follow SITC Rev. 3.

Chart 1.2 Direction of merchandise trade, 2011 and 2017

Exports (f.o.b.), including re-exports (f.o.b.)

Total: USD 402.9 million Total: USD 980.4 million

Total: USD 1,456.2 million Total: USD 1,838.8 million

Source: WTO Secretariat calculations, based on data provided by the authorities.

Source: WTO Secretariat's calculations, based on data provided by the authorities.

Table 1.3 FDI stock by sector, 2012-17

2 TRADE AND INVESTMENT REGIMES

2.1 General Framework

2.2 Trade Policy Formulation and Objectives

Table 2.1 Selected trade and trade-related laws, October 2018

Source: Information provided by the authorities, and various online sources.

2.3 Trade Agreements and Arrangements

Table 2.2 Status of WTO notifications, 30 November 2011-30 June 2018

Legal provision Description Date WTO document

Source: WTO Secretariat.

2.3.2 Regional and preferential agreements

2.3.3 Other agreements and arrangements

2.4 Investment Regime

3 TRADE AND INVESTMENT REGIMES

3.1 Measures Directly Affecting Imports

3.1.1 Customs procedures, valuation, and requirements

Chart 3.1 Customs disputes by subject, 2011-18

Source: Rwanda Revenue Authority.

3.1.2 Rules of origin

Table 3.1 Tax revenue, 2011-18

n.a. Not applicable.

Chart 3.[PIM] Evolution of imports, 2011-16

Non-preferential imports Preferential imports

USD 2,004 USD 1,980 USD 1,970

(20%) (18%) (17%) (18%) (18%) (18%)

3.1.4 Other charges affecting imports

3.1.4.1 Border taxes

3.1.4.2 Internal taxes

Table 3.2 Excise duties, 2018

Product categories Tax rate

3.1.5 Duty and tax concessions

Table 3.3 Forgone revenue from imports, 2011-18

Note: Reporting period (fiscal year): 1 July to 30 June.