Business Reforms in Rwanda

Positive= Doing Business reform making it easier to do business. Negative= Doing Business reform making it more difficult to do business.

DB2013:

Positive Enforcing Contracts:

Rwanda made enforcing contracts easier by implementing an electronic filing system for initial complaints.


Positive Getting Electricity:

Rwanda made getting electricity easier by reducing the cost of obtaining a new connection.


DB2012:

Positive Starting a Business:

Rwanda made starting a business easier by reducing the business registration fees.


Negative Registering Property:

Rwanda made transferring property more expensive by enforcing the checking of the capital gains tax.


Positive Getting Credit:

In Rwanda the private credit bureau started to collect and distribute information from utility companies and also started to distribute more than 2 years of historical information, improving the credit information system.


Positive Paying Taxes:

Rwanda reduced the frequency of value added tax filings by companies from monthly to quarterly.


DB2011:

Positive Dealing with Construction Permits:

Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits.


Positive Getting Credit:

Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and mandating that loans of all sizes be reported to the central bank’s public credit registry.


Positive Trading Across Borders:

Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment.


DB2010:

Positive Starting a Business:

Rwanda simplified the start-up process by eliminating the notarization requirement, introduction of standardized memoranda of association, making publication on-line, consolidation of name-checking, registration fee payment, tax registration and company registration procedures, and reducing the time required to process completed applications.


Positive Registering Property:

Rwanda continued to ease the registration of property by decreasing the number of days required to transfer a property.


Positive Getting Credit:

Rwanda made it easier to get credit with a new Secured Transactions Act and a new Insolvency Act to make secured lending more flexible, allowing a wider range of assets to be used as collateral and a general description of debts and obligations. Furthermore, out of court enforcement of collateral is now available to secured creditors who also now have absolute priority within bankruptcy. A new collateral registry has been created.


Positive Protecting Investors:

Rwanda adopted a new company law that strengthened investor protections by requiring greater corporate disclosure, director liability and shareholder access to information.


Positive Trading Across Borders:

Rwanda has improved trading times with administrative changes such as increased operating hours and enhanced cooperation at the border along with the removal of some documentation requirements for importers and exporters.


Positive Resolving Insolvency:

Rwanda improved the process of dealing with distressed companies with a new law that aims at streamlining reorganization procedures.


DB2009:

Positive Dealing with Construction Permits:

Rwanda streamlined project clearances for the second year in a row by combining the processes for obtaining a location clearance and building permit in a single application form. Rwanda also introduced a single application form for water, sewerage and electricity connections.


Positive Registering Property:

Rwanda abolished the 6% registration fee and replaced it with a flat rate of RWF 20,000 (about $34), regardless of the property value. Rwanda also created a new centralized service in the tax authority to speed up the process of issuing the certificate of good standing. As a result, the cost to transfer a property and time were reduced.


Positive Trading Across Borders:

Due to extended opening hours, implementation or improvement of EDI, risk-based inspections, transportation sector led to a decrease in export and import time.


Positive Enforcing Contracts:

Commercial courts began operating in three locations--in Kigali and in Rwanda’s Northern and Southern province.


DB2008:

Positive Dealing with Construction Permits:

Rwanda made obtaining construction permits easier by decentralizing the permit system which reduced the total time of getting a building permit and an occupancy permit. Meanwhile, the total time to obtain electricity connection was decreased. The government also set up the requirement for waste management facilities and proper sewerage.


Positive Trading Across Borders:

Rwanda has eased trading across borders by expediting the acceptance of customs declarations and by liberalizing the warehouse services market.


Reform Summaries


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