Comments on the draft Investment Incentives Law

• The investment incentives law is pivotal to the Rwandan government’s aims of boosting FDI

• The IGC was asked to comment on the draft investment incentives law to ensure it was well aligned with international best practice

• The researchers found that the law was strong although some key amendments were suggested

• The comments were read and received by the Minister of Trade and the Chief Economist at the Rwandan Ministry of Finance explicitly acknowledged the IGC’s work in a presentation on trade liberalisation

The investment incentives law is pivotal to the Rwandan government’s aims of boosting FDI. The CEO of the Rwanda Development Board and the Chief Economist of MINECOFIN (The Ministry of Finance and Economic Planning) made a request for comments on the draft law to ensure that the law was aligned with international best practice, and balanced Rwanda’s needs for both improved trade and investment and improved revenues.

4 trade experts reviewed and analysed the government’s draft law, highlighting how it might better serve Rwanda’s need to improve trade, tax revenues, and effective, sustainable business incentives and signals.

The researchers made several general and specific recommendations to improve the report, namely: more clearly specifying the role of government; making sure certain requirements on investors are not excessively complex; clarifying specific investor requirements; integrating ‘sunset clauses’; and giving stronger weight to tax revenue needs in light of the relative import of a strong business environment and low transportation costs over tax incentives.

These notes were requested by and conveyed directly to the Minister. The Minister later explicitly acknowledged the IGC’s work in a presentation he gave on trade liberalisation at an IMF convened meeting of African tax authorities.