Rwanda has revised several policies to attract investment and accerelate economic growth in the country.
Some of the reforms include the process of registering property and wided security base to help businesses access credit to invest.
Hubert Ruzibiza, Head of Services Development at Rwanda Development Board (RDB), says commercial banks required immovable property as mortgage to access credit, but with the new reforms, “even a cow, a goat or cash crops are accepted as security.”
the country has also set a Credit Reference Bureau that works with both commercial banks and micro finance institutions.
“If your credit information is good, with no debt, you have a negotiation power,” said Ruzibiza. He said banks now process credit quickly and second, businesses can negotiate a decreased interest rate.
With the property registration, transfer of property requires only three procedures and a deed is issued not more than 30 days.
As a result, the World Bank has ranked Rwanda the 3rd easiest place to do business in Sub-Saharan Africa and remains the easiest place to do business in East and Central Africa.
The World Banks says Rwanda has one of the most conducive business environment, after Mauritius and South Africa, respectively.
Researchers at the World Bank Group said Rwanda has reformed more than any other economy in the world since 2005. The Doing Business report of 2013 said Rwanda stood out for consistently improving since 2005, featuring as a case study, after implementing 26 regulatory reforms.
“Rwanda has been an example for emerging economies in Sub-Saharan Africa and worldwide,” said Melissa Johns, an economic advisor at the World Bank.
She said the country has successfully implemented a strategy to improve the business environment, which has for example, seen local entrepreneurs achieve tangible results.
Ten years ago, Johns said, it took an entrepreneur 168 hours a year to pay taxes. Now it takes 107 hours a year – faster than in most developed countries. And now, a business can be registered at 7 a.m. and begin operations at 1 p.m., the same day. The service is also available online.
The Doing Business Report is study on how easy it is to do business in a country. High ranking means the country is more friendlier to start and operate a firm.
By Didier Bikorimana