Legal Framework

Rwanda has actively pursued investor-friendly reforms, ensuring robust protections for investments. Notably, the country has implemented the Investment Code, providing clear regulations and incentives for fostering a favorable investment environment. Additionally, Rwanda has continuously worked to streamline business processes, exemplified by the establishment of the Rwanda Development Board, serving as a one-stop center for investors. The government's commitment to ease of doing business is complemented by sector-specific initiatives, such as the Made in Rwanda policy, encouraging local production. These efforts collectively contribute to an attractive landscape for diverse investors, aligning with Rwanda's broader economic development goals.

Regulatory Framework

Rwanda has modernized its legal framework to bolster investor confidence, exemplified by the revamped Insolvency Law, enhancing bankruptcy procedures in line with global standards. Additionally, the country has enacted an Arbitration Law, aligning with UN guidelines to expedite arbitration proceedings and discourage delays. Foreign investors in Rwanda benefit from the option to refer disputes to external arbitration committees. The regulatory environment for employment is streamlined, with labor laws accommodating flexible contracts, ensuring efficiency. Notably, Rwanda has been recognized for its ease in hiring foreign labor, securing a prominent global ranking for both the accessibility of skilled employees and the overall ease of employment practices.

In Focus: 2018 FDI Law

The Law on Investment Promotion and Facilitation (Law No. 006/2021 of 5 February 2021) is the primary legislation governing foreign direct investment (FDI) in Rwanda

Foreign Ownership

  • The Law on Investment Promotion and Facilitation (Law No. 006/2021 of 5 February 2021) states that foreign investors have the right to own and establish business enterprises in all forms of remunerative activity, subject to any applicable laws and regulations.
  • Equal treatment: Foreign investors are treated equally to Rwandan investors with regard to incentives and investment facilitation.
  • Investment protection: Rwanda has signed a number of bilateral investment treaties (BITs) with other countries. These treaties provide foreign investors with protection against expropriation, nationalization, and other forms of government interference

Cabinet Powers

The Rwandan Cabinet is supportive of investment in the country and believes it is essential for economic development. The Cabinet has highlighted several areas of investment opportunity, including agriculture, tourism, manufacturing, ICT, and financial services. The Rwandan government is committed to providing foreign investors with the support they need to succeed.

Positive Investment List

  • Tourism and Hospitality
  • Transport and storage
  • Agriculture
  • Construction and infrastructure
  • Manufacturing industry
  • Renewable energy and mining
  • Hospitality and food services
  • Information and communication
  • Professional, scientific and technical activities
  • Administrative and support services
  • Educational activities
  • Healthcare
  • Art and entertainment
  • Financial services

Free Zone Regulatory Frameworks

Rwanda's free zones, managed by the Rwanda Special Economic Zones Authority (SEZA), encompass export processing zones (EPZs) and logistics free zones (LFZs). These zones offer incentives such as zero corporate income tax for up to 15 years, duty exemptions, simplified customs procedures, and a streamlined business registration process. With a focus on attracting export-oriented and logistics businesses, Rwanda's free zone framework has been instrumental in fostering economic growth, supported by world-class infrastructure and criteria ensuring substantial investment and job creation.