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.
Negative= Doing Business reform making it more difficult to do business.
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: Business start-up was eased by eliminating a notarization requirement; introducing standardized memorandums of association; enabling online publication; consolidating name checking, registration fee payment, tax registration, and company registration procedures; and shortening the time required to process completed applications.
Positive Registering Property: Property registration was simplified by decreasing the number of days required to transfer a property.
Positive Getting Credit: Getting credit was made easier with a new secured transactions act and 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. In addition, out of court enforcement of collateral has become available to secured creditors, who also now have top priority within bankruptcy.
Positive Protecting Investors: A new company law has strengthened investor protections by requiring greater corporate disclosure, director liability, and shareholder access to information.
Positive Trading Across Borders: By implementing 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—Rwanda has improved trading times.
Positive Resolving Insolvency: The process for dealing with distressed companies was improved with a new law aimed at streamlining reorganization.
DB2009:
Positive Dealing with Construction Permits: Construction permitting was streamlined for the second year in a row by combining the applications for location clearance and a building permit in a single form and introducing a single application form for water, sewerage, and electricity connections. This reduced both the number of procedures and the time required for dealing with construction permits.
Positive Registering Property: The time and cost to register a property also fell. A new fixed registration fee was introduced, and centralization of the tax service reduced the time to obtain a certificate of good standing.
Positive Trading Across Borders: Trade was facilitated by extending the opening hours of the customs border offices, implementing an electronic data interchange system, and introducing risk-based inspections. Together with growth in the transport sector, this reduced the time to import and export.
Positive Enforcing Contracts: Commercial courts began operating in three locations, in Kigali and in the Northern and Southern Provinces, making it easier to enforce contracts.
DB2008:
Positive Dealing with Construction Permits: Decentralization of the administrative system, which divided Kigali into three districts, and the privatization of water and electricity company Electrogaz, have reduced building permit and utilities connection time.
Positive Trading Across Borders: The cost of port and terminal handling was reduced by liberalizing the warehouse services sector. The increased competition led to a radical change in the way cost is calculated, effectively reducing it by 40%. Customs declaration points have also been increased to accelerate the process.
Source: www.doingbusiness.org
