This is a distressing reality to confront, given that adequate housing is considered a fundamental human necessity, alongside food, clothing, and education. Nevertheless, a significant portion of healthcare workers in Rwanda cannot afford this essential luxury due to the soaring costs associated with construction.
In October 2023, the Ministry of Infrastructure disclosed that a substantial 50.8% of Rwandans earning less than Rwf200,000 per month can only manage to acquire a residence valued at less than Rwf40 million.
During a talk show aired on Radio Rwanda, Dr. Corneille Ntihabose, the Head of Clinical and Public Health Services at the Ministry of Health, made a striking revelation.
He stated that among healthcare professionals, more than 80% do not have homeownership. “Out of the 3,000 healthcare workers we surveyed,” he explained, “82% admitted to renting their residences.” Surprisingly, 33% of them possess a plot of land but lack the financial means to construct a house.
This predicament is further compounded by their hesitance to take out bank loans due to the perceived exorbitant interest rates, which far exceed their modest salaries.
The healthcare workforce is distributed across the country, with 28% based in Kigali, 17% in the Northern Province, 18% in the Eastern Province, 16% in the Southern Province, and 21% in the Western Province.
To address this pressing issue, the “Muganga SACCO” cooperative was established in 2020. This cooperative now offers low-interest loans to enable healthcare professionals to build their own homes. Claudine Uwambayingabire, the Director General of the cooperative, highlights their unwavering commitment to alleviating the economic challenges faced by healthcare workers.
According to research conducted by the Ministry of Health, 38% of healthcare workers aspire to own homes valued between Rwf15 and 30 million, while 30% desire homes that do not exceed Rwf45 million.
However, the country “vowed to not let the past define their future” as it is now ranked the premium destination for world travel.
Rwanda has become the first African country to host the prestigious 23rd Global summit of World Tourism and Travel Council (WTTC), which commenced on 1st November, 2023 and will end on 3rd, November, 2023.
During the opening day, the president and CEO WTTC, Julia Simpson commended Rwanda’s efforts to transformation and development.
“Ten years ago, Rwanda didn’t even rank in the top 150 countries with the ease of doing business; today, it’s in the top 20,” she remarked.
Simpson also commended Rwanda’s efforts in conserving mountain gorillas that were on the verge of extinction due to poaching and deforestation.
According to Simpson , the population of mountain gorillas around the world has grown from 200 in 1990’s, to 1600 to date, thanks to Rwanda’s implementation of a financial premium on the coexistence of the gorillas with man.
Additionally, the CEO WTTC acknowledged Kagame’s role in promoting gender equality in the country terming the president a ‘man of his word’.
“Here it’s not just talk, the Rwandan parliament has the largest percentage of women in the world,” she exclaimed, stressing the role women play in the social and economic development of the country.
The WTTC summit intends to develop the economy of the African continent by boosting the tourism and travel sector that, according to Simpson, has doubled in the past two decades, and has potential to thrive more in the next decade.
“Eighty four million international visitors added 196 billion dollars to Africa’s bottom line, which is 7% of the continent’s economy. The focus in the next ten years is to grow the sector by 5.1% annually, twice as fast as the general economy,” she explained.
In agreement with the CEO’s remarks, the WTTC chair , Arnold Donald, sent a sounding message to the world stating that “the heart of tourism is strongly in Africa” after the continent’s tourism investments “rose to a much stronger rate than the Global average,” despite financial challenges and COVID-19 pandemic.
For the past 33 years, WTTC has been a strong advocate for the positive impact tourism and travel has on the world. However, according to Simpson, the sector faces a major challenge of visa regimes especially in Africa.
“With the right vision, tourism and travel could increase Africa’s GDP by 50 billion dollars by 2033 and create 6 million more jobs,” said Simpson.
In his speech, president Paul Kagame announced that “any African is free to get on a plane at anytime and come to Rwanda without paying anything” emphasising the need to not forget the continental market.
During the bilateral meeting, both officials signed a Memorandum of Understanding on Visa Waiver for holders of Diplomatic, Official, and Special passports.
This landmark decision marks a pivotal moment in the diplomatic relationship between the two nations.
This progressive step aims to simplify and expedite travel for these passport holders, promoting ease of diplomatic exchange and collaboration between Rwanda and Venezuela.
Minister Yván Gil Pinto’s visit to Rwanda holds particular significance in the broader context of diplomatic relations between the two nations.
It followed a promising meeting between President Paul Kagame of Rwanda and President Nicolás Maduro of Venezuela, which took place in September 2023 during the G77 meeting in Cuba.
During their meeting, the two leaders pledged to work more closely for the mutual benefit of their respective countries.
The diplomatic relationship between Rwanda and Venezuela date back to August 18, 1981.
Since then, both countries have been working together to strengthen their diplomatic ties and foster mutually beneficial cooperation in various areas.
This law replaces the previous VAT Law No 37/2012, which had been in place since December 2012. The new VAT Law introduces comprehensive changes to the country’s taxation framework to promote fiscal alignment with the recent Income Tax Law (ITL 2022) and the Tax Procedure Law (TPL 2023.
The reforms are in line with the developments within the Kigali International Financial Center (KIFC) initiative and aim to improve tax compliance and expand the tax base in Rwanda.
This article aims at providing an in-depth overview of the key provisions and changes brought about by the VAT Law 2023
{{Defining New Terms}}
The VAT Law 2023 introduces new terms and amends existing ones to provide clarity and alignment with current practices. Notable definitions include “Exported service,” “Hybrid automotive vehicle,” “Final consumer,” “Goods,” “Person,” and “Liberal Professional.”
{{Taxation of Online Supplies}}
A new paragraph has been added to the VAT Law 2023, bringing “online supplies” under taxation.
This change aligns with the ITL 2022, which included digital services as taxable sources of income.
The specific rules and procedures for taxing digital services under VAT will be detailed in an Order of the Minister.
{{Responsibility for Paying VAT}}
The new law expands the list of entities responsible for paying VAT. While previously, VAT obligations primarily rested with VAT-registered individuals, the updated law now specifies that every VAT-registered taxpayer must charge and account for the tax.
Additionally, public procuring entities are now obligated to withhold VAT on payments to successful VAT-registered bidders.
{{Taxable Goods and Services}}
The VAT Law 2023 clearly outlines what constitutes taxable goods and services. It covers goods supplied in Rwanda, services provided within Rwanda or to residents of Rwanda, assets of a person used in business that are sold, and more. Importation of goods or services is also subject to VAT unless explicitly exempted.
{{Zero-Rated Goods and Services}}
The new law expands the list of goods and services subject to a zero-rated (0%) VAT rate. Notable additions include exported goods and their auxiliary services, commission fees for all-inclusive tour-package booking services, minerals sold domestically, and locally assembled electric and hybrid vehicles.
{{Exempted Goods and Services}}
The list of goods and services exempted from VAT has been expanded to include items such as sanitary pads, leases of movable property by licensed financial institutions, and agricultural insurance services.
{{VAT Point Determination}}
The VAT Law 2023 incorporates the date on which a taxpayer requests deregistration from VAT as a determining factor for the VAT point.
{{Acquisition of Foreign Services}}
Additional procedures have been introduced for the importation of foreign services, requiring taxpayers seeking such services to request authorization from the Minister. Guidelines for this process will be provided in an Order of the Minister.
{{Time for Importation of Goods and Services}}
The new law clarifies that goods are considered imported when they enter Rwandan territory according to customs law, while services are considered imported when the importer receives them.
{{Entitlement of Input Tax}}
To claim input VAT on taxable goods and services, taxpayers must have paid output tax to the Tax Administration. The law reduces the time limit for input tax entitlement to 12 months from the previous two-year limit.
{{Restrictions on Input Tax}}
The VAT Law 2023 expands the items eligible for restricted input tax to 40% of the value added tax paid on taxable goods and services in a “business activity.”
{{Post-Sale Adjustment for Unrecoverable Debt}}
To claim a refund for unrecoverable debt, an individual whose debt is less than FRW 3m must prove they made reasonable efforts to recover the debt over a three-year period.
{{Amendment of Original VAT Return}}
The law outlines procedures for amending an original VAT return after the deadline, requiring taxpayers to apply in writing to the Commissioner General.
{{Value Added Tax Refund}}
Input VAT refundable as per the law must be claimed in its taxable period.
{{Rewards for Final Consumers}}
The VAT Law 2023 introduces incentives for final consumers who present the Tax Administration with electronic invoices. The details and value of the reward will be determined through a Ministerial order.
{{Enterprise and Branch Registration}}
The law mandates that multiple branches be registered under a single Taxpayer Identification Number (TIN) for VAT purposes, aligning them with the main company.
{{Currency Conversion}}
When expressing or paying amounts in foreign currencies, the law specifies methods for conversion into Rwandan francs to ensure uniformity and fairness.
{{Tax Refund for International Organizations}}
International organizations holding meetings and conferences in Rwanda may be eligible for a refund on goods incurred or imported during these events, subject to authorization.
{{Next Steps}}
The VAT Law 2023 came into effect on September 14, 2023. All concerned taxpayers are advised to ensure compliance with the new provisions and align their tax practices accordingly to avoid any disruptions or penalties in light of these significant changes to Rwanda’s tax system.
Since French President Emmanuel Macron’s historic visit to Rwanda in May 2021, during which he offered a formal apology for France’s responsibility in Rwanda’s dark history, more French companies have begun exploring opportunities in the country. Companies like Vivendi, Groupe Duval, and Total Energies have joined this trend, investing in Rwanda’s various sectors.
For example, Groupe Duval is currently developing Inzovu Mall, a climate-smart mixed-use property set to redefine Kigali’s urban landscape while adhering to stringent green building practices. Located opposite the Kigali Convention Center, Inzovu Mall aims to become a beacon for international visitors, further enhancing Rwanda’s economic landscape.
French Ambassador to Rwanda, Antoine Anfré, has confirmed the active involvement of French investors in Rwanda’s tourism and hospitality sector. This newfound interest has not only reinvigorated existing establishments like Umubano Hotel but has also introduced innovative concepts such as the Mantis Kivu Queen Uburanga, a floating luxury hotel experience on Lake Kivu.
Umubano Hotel, originally a collaborative effort between Rwanda and Libya in the 1980s, has undergone several changes in ownership and names over the years. Now, it is undergoing extensive renovations and is expected to be rebranded as Mövenpick Hotel, a part of the Groupe Accor, a prominent French company. The revamped hotel is poised to resume operations as one of Kigali’s iconic hospitality establishments, offering world-class services.
Moreover, French investors are venturing into the realm of lake tourism with the Mantis Kivu Queen Uburanga. This floating hotel will be managed by Acor Group and will cruise along Lake Kivu, providing tourists with exceptional dining experiences and the chance to unwind in the comfort of a floating hotel on the serene lake.
Amb. Anfré has revealed that the boat hotel will serve as a transportation service, connecting Kibuye, Cyangugu, and Rubavu, thereby contributing to Rwanda’s tourism industry. It not only enhances the tourism landscape but also underscores the safety of Lake Kivu.
The boat hotel is expected to commence its services in early 2024, promising to be a significant addition to Rwanda’s thriving tourism sector.
The RGS’s 10th edition, launched on October 31, 2023, unveiled these findings, drawing the participation of various stakeholders, including diplomatic corps, international organizations, government representatives, the private sector, civil society, and academia.
Following the Safety and Security pillar, the Anti-corruption, Transparency, and Accountability pillar secured the second spot with a score of 88.97%. Rule of Law closely followed with an 88.89% rating, although the report identified room for improvement, particularly in clearing backlog cases within the judiciary.
Political Rights and Civil Liberties claimed the fourth position with 88.01%, while Participation and Inclusiveness ranked fifth with 84.04%. Economic and Corporate Governance rounded off the top six with a score of 79.98%.
The 10th edition of the RGS underscored the importance of focusing on tailored service delivery for people living with disabilities (PwDs). The report reveals that only 39.4% of PwDs are categorized, and 48.88% benefit from social protection. Usta Kaitesi, CEO of RGB, emphasized the need for significant progress in service delivery across sectors, especially for PwDs. She urged efforts to expedite the categorization of persons with disabilities to enhance their access to essential services such as healthcare and education.
Minister of Local Government, Jean Claude Musabyimana, acknowledged delays in establishing a comprehensive database of people with disabilities due to societal stereotypes and challenges in identifying and registering individuals with special needs. He however reiterated the government’s committment to addressing these issues.
Judith Uwizeye, Cabinet Minister in the Office of the President, stressed the significance of the RGS as a tool for promoting governance and accountability in line with the National Transformation Strategy (NST1). She called upon public and private sector stakeholders, civil society organizations, and religious bodies to consider the report’s recommendations as part of their responsibilities in enhancing their areas of intervention.
RGS is an independent annual publication of the RGB that seeks to gauge the state of governance in Rwanda, comprehensively assess governance in using both primary and secondary data sources.
It is mainly designed to generate credible and reliable data on governance issues, serves as a practical tool that drives policy reform in the domain of governance through the identification of areas for improvement and generates actionable recommendations and to contribute to current and authentic knowledge formation about Rwanda.
Talks about new areas of cooperation began during a two-day visit to Rwanda by Zhuang Rongwen, the Chinese Minister responsible for Cybersecurity.
As he arrived in Rwanda on October 30th, Zhuang engaged in discussions with Prime Minister, Dr. Edouard Ngirente. The meeting was also attended by Rwanda’s Minister of ICT and Innovation, Ingabire Musoni Paula, and David Kanamugire, the Chief Executive Officer of Rwanda’s National Cyber Security Authority (NCSA).
The discussions between Rwandan officials and Minister Zhuang Rongwen revolved around deepening cooperation in the technology sector between the two nations.
China is already actively collaborating with the National Cyber Security Authority, particularly in providing training to Rwandans.
Minister Ingabire informed the press that the talks with China aimed to explore how both countries can further collaborate in various technological sectors, including the implementation of 5G networks. She emphasized, “We discussed in detail how to strengthen this relationship, not only in terms of training but also in research and development, especially regarding 5G.”
The Minister also highlighted the necessity for Rwanda to have a 5G connection, underscoring the opportunities it presents, particularly in the medical sector. 5G technology is considered a significant advancement, offering connection speeds up to a hundred times faster than 4G.
She expressed that medical services are one of the areas where Rwanda sees outstanding potential for the adoption of 5G.
Following these initial discussions, the two nations agreed to establish working groups to oversee the implementation of agreements, with the prospect of signing partnerships in various sectors.
It’s worth noting that these discussions come shortly after Rwanda and SoftBank Corp announced that on September 24, 2023, they successfully tested SoftBank’s proprietary 5G communications payload in the stratosphere, installed on a solar-powered High Altitude Platform Station (HAPS) unmanned aerial vehicle (UAV) prototype in Rwandan airspace.
The demonstration, conducted for HAPS research purposes in Rwandan airspace by SoftBank and the Government of Rwanda, marked the world’s first publicly announced delivery of 5G connectivity from a HAPS UAV in the stratosphere.
The successful 5G connectivity demonstration followed a stratospheric flight test conducted in Rwanda in June 2023, during which the HAPS UAV prototype carried a mockup of the payload with similar weight and dimensions.
SoftBank’s stratosphere-ready communications payload continuously delivered 5G connectivity for approximately 73 minutes in the stratosphere at a maximum altitude of 16.9km and performed as expected in demanding atmospheric conditions.
{{Ruhengeri Level Two Teaching Hospital Modernization}}
Ruhengeri Hospital, located in the district of Musanze, serves as the reference medical facility for six surrounding districts, anticipating a population growth of 2.1 to 3 million by 2040. Built in 1939, the hospital has reached its maximum capacity.
In response to these challenges and aligned with Rwanda’s strategic health plan, the government has requested AFD’s support.
The modernization initiative will double the hospital’s capacity, expanding from 320 to 550 beds, establish new diagnostic departments (electrocardiogram, MRI, CT Scan), intensive care units, and elevate the hospital to international standards. The project will be financed with a loan of 75 million euros and a contribution from the Government of Rwanda of 15 million euros.
AFD will also provide a grant of 4 million euros, managed by Expertise France, AFD’s technical cooperation agency, to provide capacity building and trainings for the medical staff, particularly in maternal, gynecological and child health, acute medicine and infectiology, in line with government priorities.
{{Rural Infrastructure Development for Vulnerable Populations}}
While Rwanda has made significant progress in local economic development and governance, many remote districts continue to face funding shortfalls, hindering access to public services and livelihoods for the most vulnerable populations.
In cooperation with the German cooperation agency KfW, Luxembourg will also contribute through LuxDev and AFD, the Rwandan government, has launched a multi-donor basket fund to address the specific needs of 16 of the country’s poorest districts.
AFD’s contribution of €16 million to this fund will facilitate de construction of health, education, agriculture, and economic infrastructures. Furthermore, the Basket-fund will enhance the resilience of rural communities to climate change.
This project will also improve the regulatory and operational framework for local economic development (LED) and enhance the capacity of individuals working in this sector.
Commenting on this development, said Arthur Germond, AFD Director in Rwanda said: “Health and climate resilience are two essential pillars of AFD’s interventions in Rwanda. Our commitment is to create real, on-the-ground impact, and we’re dedicated to achieving visible results in 2023 for these new initiatives.
In a promising step, the first cardiologists training kicked off in Kigali in October 2023, and more practitioners will be trained in Ruhengeri by year’s end. It’s an exciting journey, one that holds the promise of enhancing the well-being and resilience of Rwanda’s communities in the face of many future challenges.”
According to French Ambassador to Rwanda, Antoine Anfré, the signing of these two agreements will play a crucial role in upholding France’s commitment of 500 million euros in cooperation with Rwanda.
“The rehabilitation of the Ruhengeri Hospital represents a flagship project within the broader framework of our healthcare partnership, reinforcing our shared dedication to the well-being and prosperity of the Rwandan people,” he highlighted.
“The population growth, epidemiological transition, introduction of universal health coverage and the surrounding tourism context no longer allows Ruhengeri referral Hospital to meet all the population’s needs.
The AFD funding will support construction, rehabilitation and supply of medical equipment. The objective is to provide sustainable access to healthcare for the population of the Northern Province,” said Minister Tusabe.
Türkiye observes Republic Day on October 29, commemorating the proclamation of its foundation and the establishment of a republic on October 29, 1923, following a three-year independence war against multiple countries, effectively marking the end of the Ottoman Empire.
In honor of Republic Day, ceremonies, parades, and various events are held across Türkiye.
During the celebration in Rwanda, Turkish Ambassador to Rwanda, Aslan Alper Yüksel, expressed his delight at commemorating the day in Rwanda.
Yüksel highlighted the transformative leadership of Mustafa Kemal Atatürk, who initiated the independence war, leading to the establishment of the Republic of Türkiye in 1923 and his visionary reforms.
The event in Kigali underlined the robust relationship between Rwanda and Türkiye, built upon mutual respect and cooperation.
Ambassador Yüksel drew parallels between the resilience of both countries, emphasizing Rwanda’s remarkable transformation under President Paul Kagame’s visionary leadership after the 1994 Genocide against the Tutsi.
In an exclusive interview with IGIHE, Ambassador Yüksel emphasized the significant achievements and milestones in the partnership between Rwanda and Türkiye.
He particularly noted the positive impact of Rwandan students in Türkiye and highlighted
the branch of Türkiye’s cultural center, Yunus Emre Institute, located at the Gikondo Campus of the UR, offering Turkish language education.
The relationship between Rwanda and Türkiye was described as excellent, with 600 Rwandan students currently studying in Turkish universities, benefiting from Türkiye’s strategic location at the crossroads of Africa, Asia, and Europe.
This highlighted Türkiye’s commitment to educational exchanges and strengthening human connections between the two nations.
Collaboration across various sectors, including trade, culture, security, and education, laid the foundation for ongoing growth and cooperation.
During the event, Rtd Gen James Kabarebe, the Minister for Foreign Affairs in charge of Regional Cooperation, emphasized the importance of enhancing bilateral ties between Rwanda and Türkiye.
He commended Türkiye’s role as a reliable partner in global peacekeeping operations and their shared commitment to diplomacy in addressing global challenges. The Minister reaffirmed Rwanda’s determination to advance its partnership with Türkiye, exploring opportunities for collaboration across various domains.
Senator Jean Pierre Dusingizemungu, representing the Senate President, also emphasized the friendship between Rwanda and the Turkish Parliament.
The event was further enriched through cultural performances of Rwanda and Türkiye, staged by Rwandan artists, adding vibrancy to the celebration.
As the celebrations concluded, a toast captured the essence of the occasion: “May this milestone anniversary be a catalyst for continued growth, prosperity, and peace for the Republic of Türkiye.”
The event not only highlighted the strong bond between the two nations but also emphasized their joint commitment to fostering global prosperity and stability. With a promising future ahead, Rwanda and Türkiye are poised to continue their journey of mutual growth and development.
The official announcement of this funding took place in Brussels on the sidelines of the “Global Gateway” investment forum.
The disclosure occurred during a meeting between Prime Minister Dr. Edouard Ngirente and the European Commissioner for International Partnerships, Jutta Urpilainen, which transpired on Thursday of this week.
The deal was signed by Rwandan Minister of Education, Gaspard Twagirayezu, who represented Rwanda, and Ms. Urpilainen, who represented the EU.
In addition to discussions about this critical funding, Dr. Ngirente also presented Rwandan initiatives in the domain of essential medical equipment.
One of these initiatives is the establishment of the African Institute for Bioproduction, a venture aimed at alleviating the scarcity of skilled professionals in the pharmaceutical and medical equipment manufacturing sector.
The global COVID-19 crisis underscored the shortage of medical equipment worldwide, underscoring the pivotal importance of investing in the healthcare sector.
The European Investment Bank has also allocated supplementary funds to be utilized for the construction of schools and related infrastructure.
Among others, the role of the Global Gateway in the enhancement of medical equipment production was emphasized. The forum encouraged companies to make further investments in this field, with a focus on elevating the quality of services available to the general population.
