With the hugest number ever implemented in such a span of time compared to 52 reforms that were previously implemented in the last 15 years, Rwanda can only expect to improve in the next World Bank Doing Business ranking 2019 from the current 41st globally and second in Africa.
Speaking at a press briefing on Friday, RDB’s Chief Operations Officer Emmanuel Hategeka said the major reforms have reduced bureaucracy in construction, amount of time for electricity provision for investors, time exporters spend at customs and legal backlog, among other issues affecting the business climate.
“Ten years ago, the Government embarked on a strong agenda to transform our business environment in order to boost investment and private sector growth. One of the key tools that we relied on to guide this transformation is the World Bank Doing Business global report. Through strong leadership and consistent commitment to reforming the business environment, Rwanda implemented numerous business reforms over the last ten years”, said Hategeka.
The Doing Business report is a flagship World Bank publication which measures the relative ease of doing business across 190 economies, using a set of 10 indicators that track the entire lifecycle of a business such as what it takes to start, run and grow a business in a given country through the lens of business operators.
Reaffirming Rwanda’s vision to become competitive among the best globally, Minister of Trade and Industry, Vincent Munyeshyaka committed the Government of Rwanda to more reforms to make business environment increasingly competitive for local businesses and foreign investors alike.
“We must remain engaged with our private sector, understand the reforms needed for further growth and dynamism in the sector and uncover opportunities that will unleash the full potential of our private sector,” he said.
Munyeshyaka urged all institutions mainly RDB to double efforts for further improvements in business sector, saying that Rwanda has high ambitions as do many other economies, making the space of global trade and investment extremely competitive.
“As such, we must always ensure that our nation is able to compete among the best,” said the Minister.
Areas that require improvement include dealing with construction permit and getting electricity where Rwanda was ranked 122nd and 117th globally in Doing Business 2018. The power outage exceeding five minutes was also raised as an issue but as part of the solution, Rwanda Utilities Regulatory Authority has adopted a regulation to administer fines for power outages exceeding 10 minutes.
{{Major reforms implemented}}
Noting that all the reforms are crucial, Hategeka said that some are more notable and those include a software application that can be installed on any electronic device to replace the electronic billing machine (EBM) in processing value added tax (VAT) invoices. This system will eliminate the cost implications of buying an EBM that has often ignited outcry among business community.
In dealing with construction permits, buildings are now categorized according to the nature and magnitude of the anticipated risk and this therefore determines which projects must undergo a full or partial Environmental Impact Assessment (EIA). Geotechnical studies for buildings that fall in category DB as not exceeding 200 square meters and two floors has been eliminated, as well as topographic surveys for all types of buildings.
Another reform in dealing with construction permits is the removal of the requirement to fill a form notifying the One Stop Center at RDB of the commencement date of the project. Water connection now also takes two weeks, down from the previous 30 days.
Getting electricity connection has also improved, reducing the number of days from 34 to 20. The recently launched automated system also records and monitors power outages, improving transparency in the reliability of supply of energy in Rwanda.
In paying taxes, it now takes five hours to file for VAT since the introduction of the automatic VAT reconciliation online process. This advancement comes with the reduction of tax audit procedures and the opportunity to correct erroneous information entered after the deadline date.
As the Government of Rwanda is also focused on reducing the trade deficit by increasing exports, certain reforms such as the issuance of an online certificate of origin, the introduction of a risk based approach in inspection of exports, joint inspection of both exports and imports by agencies, and extension of working hours at Gatuna and Rusumo borders were introduced to reduce time and cost implications for investors.
In enforcing contracts, a new law on civil, commercial, labor and administrative procedures was passed with a provision for small claims procedures. Another reform includes a law limiting the grounds for adjournment for unforeseen and exceptional circumstances. On resolving insolvency, a new law particularly in relation to out of court voluntary mechanisms and individual bankruptcy was passed.
RDB also announced more key reforms in the offing including online auctions through a platform on which properties under auction can be viewed, bids entered and payments made; electronic titling to upgrade of the land administration system, just to mention but a few.
Leave a Reply