{{Rwanda may offer reduced tax rates soon for investors in energy, transport and logistics, as well as to fund managers and export-oriented projects, under a new investment code, Rwanda Development Board (RDB) said.}}
The new code, which still needs cabinet approval, is part of a broader strategy to wean Rwanda’s economy off aid and speed up the country’s development.
It could be in place by the end of April, said Vivian Kayitesi, head of investment promotion and implementation at the state board.
The proposals could see investment in selected areas qualify for reduced corporate tax, now set at 30%.
They also aim to ease restrictions on employing expatriates and attract investment from financial institutions.
This could see Rwanda follow the lead of the Indian Ocean island of Mauritius, a financial center serving Africa and beyond.
“We are trying to see if we can attract more foreign direct investment and to widen the tax base as well,” Kayitesi told media.
The priority would be to provide tax incentives to investors in sectors such as energy, transport and logistics, which are vital to clearing bottlenecks to development, although Kayitesi did not give the size of tax reductions to such ventures.
“Export-oriented projects would probably get a lower rate” than the current 30%, she said, adding there could also be tax holidays of 0% for a couple of years for “really large projects”, without saying what size would qualify.
Rwanda has won broad acclaim for policies that have ranked it the easiest place in Africa to set up a new company after the nation was left in ruins following the 1994 genocide that killed a million people.
Kayitesi said Rwanda secured $400 million to $500 million of foreign direct investment in 2013.
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