An open and competitive market
Rwanda is an open trading economy with relatively low tariffs and few nontariff barriers. Nowadays, it is easy to set up a company in Rwanda, open a branch for your foreign company, open private and business bank accounts, rent or buy an office or a house and bring capital in or out of the country.
Except for the normal withholding tax on dividends, royalties and management fee, the government will not stand in your way to remit your return on investment, made in Rwanda. Next to that, the Rwanda Ministry of Trade and Industry have issued in the year 2008 a plan called the “ Rwanda Competition and Consumer Protection Policy”.
This plan is based on the vision 2020 and needs to create an enabling environment in which enterprises can operate with minimal interference. Rwanda’s program of economic liberalization is aimed at enhancing the efficiency and competitiveness of the domestic market.
Next to that, Rwanda has signed a number of bilateral, regional and multilateral treaties, conventions and agreements. The country is also a member of several regional and international bodies such as COMESA, EAC, and WTO. The principal aim of all these commitments is to create a favorable and competitive environment for business. Rwandan Competition Policy reflect its regional integration agenda. Rwanda’s competition policy is therefore a necessary complement to COMESA‟s regional competition policy.
VISION 2020 is a framework for Rwanda’s development, presenting the key priorities and providing Rwandans with a guiding tool for the future. One of the key pillars of the Vision 2020 is the development of an efficient private sector spearheaded by competitiveness and entrepreneurship.
The Government intends to act as a catalyst in ensuring that infrastructure, human resources and legal frameworks are geared towards stimulating economic activity and private investment. The vision 2020 statement recognizes that the emergence of a viable private sector that can take over as the principle growth engine of the economy is essential for Rwanda’s development.
The Rwanda Competition Policy is the essential infrastructure necessary for encouraging competitive private activities and therefore conforms to the National Investment Strategy. The competition policy would prevent established operators from setting up barriers for new entrants into the Rwandan markets. It would also prevent foreign investors from using their superior resources to practice anti-competitive practices in Rwanda.
The competition policy accepts the logic of free and active competition in markets, the need for greater economic efficiency, the objective of ensuring optimal allocation of resources, the principle of transparency, the need for greater national competitiveness, and the facilitation of entry into markets all within a developmental context that seeks to promote the growth and development of Rwandan enterprises.
The Rwanda Competition Policy seeks to be sufficiently flexible to incorporate existing policies and future modes of market regulation that extend in a coherent manner across the full spectrum of industrial and trade policy, foreign exchange policy, the attraction of foreign direct investment, the restructuring of state assets, tax reform, labor market policy, financial market regulation, consumer protection, research and development incentives, small business, corporate governance instruments, and revised company law.
The main mission of the competition policy is to improve competition as a means of assisting in the creation of markets responsive to consumer signals, and ensuring the efficient allocation of resources in the economy and efficient production with incentives for innovation.
The Rwanda Competition Policy is based on the following principles:
Source:
Ministry of Trade and Industry “Rwanda Competition and Consumer Protection Policy”.
Except for the normal withholding tax on dividends, royalties and management fee, the government will not stand in your way to remit your return on investment, made in Rwanda. Next to that, the Rwanda Ministry of Trade and Industry have issued in the year 2008 a plan called the “ Rwanda Competition and Consumer Protection Policy”.
This plan is based on the vision 2020 and needs to create an enabling environment in which enterprises can operate with minimal interference. Rwanda’s program of economic liberalization is aimed at enhancing the efficiency and competitiveness of the domestic market.
Next to that, Rwanda has signed a number of bilateral, regional and multilateral treaties, conventions and agreements. The country is also a member of several regional and international bodies such as COMESA, EAC, and WTO. The principal aim of all these commitments is to create a favorable and competitive environment for business. Rwandan Competition Policy reflect its regional integration agenda. Rwanda’s competition policy is therefore a necessary complement to COMESA‟s regional competition policy.
VISION 2020 is a framework for Rwanda’s development, presenting the key priorities and providing Rwandans with a guiding tool for the future. One of the key pillars of the Vision 2020 is the development of an efficient private sector spearheaded by competitiveness and entrepreneurship.
The Government intends to act as a catalyst in ensuring that infrastructure, human resources and legal frameworks are geared towards stimulating economic activity and private investment. The vision 2020 statement recognizes that the emergence of a viable private sector that can take over as the principle growth engine of the economy is essential for Rwanda’s development.
The Rwanda Competition Policy is the essential infrastructure necessary for encouraging competitive private activities and therefore conforms to the National Investment Strategy. The competition policy would prevent established operators from setting up barriers for new entrants into the Rwandan markets. It would also prevent foreign investors from using their superior resources to practice anti-competitive practices in Rwanda.
The competition policy accepts the logic of free and active competition in markets, the need for greater economic efficiency, the objective of ensuring optimal allocation of resources, the principle of transparency, the need for greater national competitiveness, and the facilitation of entry into markets all within a developmental context that seeks to promote the growth and development of Rwandan enterprises.
The Rwanda Competition Policy seeks to be sufficiently flexible to incorporate existing policies and future modes of market regulation that extend in a coherent manner across the full spectrum of industrial and trade policy, foreign exchange policy, the attraction of foreign direct investment, the restructuring of state assets, tax reform, labor market policy, financial market regulation, consumer protection, research and development incentives, small business, corporate governance instruments, and revised company law.
The main mission of the competition policy is to improve competition as a means of assisting in the creation of markets responsive to consumer signals, and ensuring the efficient allocation of resources in the economy and efficient production with incentives for innovation.
The Rwanda Competition Policy is based on the following principles:
- Free and active competition in markets;
- The need for greater economic efficiency, and aim to ensure optimal allocation of resources;
- To help the country be more competitive by lowering costs along the entire value chain, and by assuring foreign investors with an environment to do business unimpeded by closed or distorted markets;
- To maximize the benefits of, and compliment the national trade and investment liberalizations program while helping to reduce its potential disruptive effects;
- To preserve regulator flexibility in taking actions in line with the stated objectives of Rwanda’s Industrial and Trade Policy, and related policies.
Source:
Ministry of Trade and Industry “Rwanda Competition and Consumer Protection Policy”.
