Revenue sharing scheme: Why delays in up-scaling from tourism to mining

During the ceremony of naming baby gorillas in September 2015, President Paul Kagame promised Rwandans that the government plans to share with them revenues from natural resources like mines as it does with residents in neighborhoods of parks.

The cabinet meeting of 13th September 2016 approved the scheme to share part of mining revenues with residents.

At the time, it was explained that residents will get 10% of mining revenue to be used in road construction, increasing water infrastructures, technology among other projects improving social welfare in the areas of education, health and agriculture among others.

The revenues have not yet been shared until today. But concerned parties attribute it to the difference in settings of mining sites and parks, that the project is being assessed for implementation.

Speaking to IGIHE, the Minister of Finance and Economic Planning (MINECOFIN), Dr Uzziel Ndagijimana has said that the government plans to share mining revenues with surrounding communities beginning 2019/2020 fiscal year.

“It is different from revenue sharing scheme in tourism because it doesn’t benefit a very big number. It can benefit residents in the neighborhood of Nyungwe or Akagera but mining sites are many in the country, it is impossible to do it simultaneously. We shall execute projects one after another,” he said.

Minister Ndagijimana explained that concerned parties are studying the feasibility of the project and promised that the scheme will have been implemented by the beginning of the next fiscal year in July.

Rwanda has 87 sectors in which minerals are extracted.

Until last year, Rwanda Development Board (RDB) had shared $1.28 million under the tourism revenue sharing scheme, executed over 158 projects benefiting parks’ neighborhoods including infrastructures, access to safe water, health centers, schools and houses.

Rwanda earned $373 million from mineral extraction in 2017/2018 fiscal year and targets $600 million this year and projects 800$ million and $1.5 million mining revenues respectively in 2020 and 2024.