{{Investors have stronger protection laws in Rwanda compared to other East African member states.}}
According to a 2013 World Bank Doing Business Report, Rwanda ranks 7th out of 185 countries in which the survey was conducted globally.
Burundi which has just seen an end to civil strife has been ranked 49th while Uganda is at 139th position, Tanzania and Kenya ranked at the 100th position.
The report notes that Rwanda and Burundi have made impressive strides as most improved countries in Sub-Saharan Africa.
“While many economies around the world have strengthened investor protection, Rwanda and Burundi have made huge progress since 2005,” says the report.
In comparison to other regional blocs, the report says EAC bloc has been more active putting in place strong legislation to further protect and empower minority shareholders in Africa.
Investor confidence in domestic firms and the economy, according to the report, is built by reforms in favour of minority shareholders.
According to Eusebe Muhikira, the head of trade and manufacturing department at the Rwanda Development Board, “The new company law boosts investor protection and makes it mandatory for directors to disclose personal interest in any firm or deal they may be involved in”.
Leave a Reply