The government will annually be contributing Rwf 5 billion (currently $6.7 million) from the national budget towards the sovereign wealth fund writes AGNES BATETA.
The Agaciro Development Fund (AgDF), is a sovereign wealth fund launched in 2012 by President Paul Kagame.
At the time he said, “Aid is never enough, we need to complement it with home-grown schemes. We are not changing our relations with our partners, but rather adding value. More dignity can only help.”
Addressing guests recently to celebrate the AgDF achievements in Kigali, Rwanda’s Minister of Finance and Economic Planning Amb. Claver Gatete said, “This fund does not compete with the budget, but is a fund for the future and it has to be managed and will keep growing”.
“To make sure that this fund is managed properly and it keeps growing properly, this is why government is looking for an international expert specialized in this area of managing a fund,” Gatete said.
The function brought together members of the private sector, district leaders, sector leaders, finance ministry officials and AgDF officials among others.
“We will also be contributing 5% of any loyalties on any natural resources, those that are there and others that will be discovered whether it is oil, or minerals,” the Finance Minister said.
The government will again be contributing 5% of anything privatized and this will continue as long as the fund exists which is going to be permanent. “This is the government, but it also depends on our own signal in terms of our own contribution because this is our fund,” Gatete said.
Speaking on behalf of the private sector, Chairman Board of Directors, Private Sector Federation (PSF) Benjamin Gasamagera said, “The private sector which has not been that consistent in contributing to the fund will now be consistent.
“We will be consistently contributing between a range of 2% to 5% per month which might even go higher not only for the structured companies but also the non-structured,” Gasamagera said.
Rwanda did not have any revenue collection of any kind immediately after the 1994 genocide. There were no taxes and no reserves in the central bank after the lootings that took place. This caused both physical and financial insecurity since there was no revenues of any kind apart from the finances that came from the United Nation’s Roundtable conferences worth $2.2 billion from 1994-1997. However, Rwanda has continued to progress despite the many difficulties.
Source: Bloomberg
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