VZCZCXYZ0000
RR RUEHWEB

DE RUEHLGB #0032/01 0150608
ZNR UUUUU ZZH
R 150608Z JAN 08
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC 5040
INFO RUEHJB/AMEMBASSY BUJUMBURA 0224
RUEHDR/AMEMBASSY DAR ES SALAAM 1042
RUEHKM/AMEMBASSY KAMPALA 1801
RUEHKI/AMEMBASSY KINSHASA 0358
RUEHNR/AMEMBASSY NAIROBI 1114
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPARTMENT OF COMMERCE WASHINGTON DC
RUCPDOC/USDOC WASHDC
RUCPCIM/CIMS NTDB WASHDC

UNCLAS KIGALI 000032 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EB/IFD/OIA 
DEPT PLEASE PASS TO USTR 
 
E.O. 12958: N/A 
TAGS: EINV EFIN ETRD KTDB RW
SUBJECT: RWANDA INVESTMENT CLIMATE STATEMENT 2008 
 
REF: 07 STATE 158802 
 
Following is the text of the Investment Climate Statement for 
Rwanda for 2008: 
 
RWANDA INVESTMENT CLIMATE STATEMENT 
 
OPENNESS TO FOREIGN INVESTMENT 
------------------------------ 
 
 
The Government of Rwanda (GOR) recognizes that the private 
sector is an essential engine of development.  The government 
welcomes foreign investment in policy and in practice. 
 
In March 2006, the government enacted an updated investment 
law to facilitate necessary licenses, visas, work permits, 
and tax incentives.  The law provides permanent residence and 
access to land for investors who deposit USD 500,000 in a 
commercial bank in Rwanda for a period not less than six 
months.  This law also fixed the minimum initial capital 
investment requirement for foreign investors at USD 250,000. 
 
In 2007, foreign companies successfully opened operations, 
merged with local companies, and participated in 
privatization programs.  No statutory limits on foreign 
ownership or control exist, and there is no official economic 
or industrial strategy that has discriminatory effects on 
foreign investors.  In fact, there are no statutory 
restrictions on investment in any sector in Rwanda. 
 
Nonetheless, the commercial legal infrastructure is still in 
the developing stages.  There are currently no specialized 
commercial courts in Rwanda; they are projected to start in 
early 2008. 
 
A business law reform commission is in place to draft major 
business laws including intellectual property protection, 
contract law, bankruptcy regulations, and arbitration law. 
 
There is no mandatory screening of foreign investment, but 
the Rwanda Investment and Export Promotion Agency (RIEPA) 
does evaluate business plans with the objective of recording 
incoming foreign investments, allocating investment 
incentives to qualified foreign investors, and determining 
the commitment of investors.  The evaluation is not mandatory 
for those who do not seek tax incentives or an investment 
certificate.  This practice does not limit competition or 
protect domestic interests. 
 
Through tax incentives and outreach, the government welcomes 
and seeks to encourage foreign investment.  The only 
difference in treatment between foreign and domestic 
companies is the initial capital requirement for official 
registration (registration is not mandatory) - USD 250,000 
for foreign investors; USD100,000 for domestic investors. 
This has not proven to be a barrier; there are no reports of 
foreign investors declining to invest due to these differing 
treatments.  Foreign investors can start businesses 
irrespective of the initial capital requirement. 
 
Foreign investors can acquire real estate, but there is a 
general limit on land ownership.  Land is owned by the state, 
but both foreign and local investors acquire land through 
lease-hold agreements that extend from 50 to 99 years.  These 
lease-hold agreements are accepted as collateral by 
commercial banks. 
 
The Government of Rwanda established the Privatization 
Secretariat and the National Tender Board to ensure 
 
SIPDIS 
transparency and foreign companies have participated equally 
and successfully. 
 
In 2005, the law establishing RIEPA was expanded to include 
export promotion reflecting the Government's focus on export 
driven development.  No discrimination has been reported 
against foreign investors who use RIEPA's "one stop" investor 
services.  Investors who do not use RIEPA, however, often 
incur extra charges from private sector contractors such as 
shipping agents or brokers.  Legally, foreign firms are 
treated equally with regards to taxes, access to licenses, 
approvals, and procurement. 
 
No laws exist specifically authorizing private firms to adopt 
articles of incorporation or association which limit or 
prohibit foreign investment, participation, or control.  No 
such practices have been reported, either. 
 
RIEPA organizes investment conferences, both in Rwanda and 
abroad, in attempts to attract foreign investment into the 
country.  On many occasions RIEPA directors and local 
businesses join the President of Rwanda in tours around the 
world to attract foreign investors.  RIEPA assists potential 
investors in securing all required approvals, certificates, 
land for their projects, work permits, and tax incentives. 
In 2006, RIEPA registered 69 investment projects worth USD 
245.5 million. Foreign direct investments accounted for 49 
percent.  By comparison, only 40 investment projects were 
registered in 2005.  RIEPA expects figures for 2007 to be 
even higher.  Dubai World, a company from United Arab 
Emirates, is reportedly investing USD 240 million in a 
variety of tourism projects, making it the largest investor 
in the country. Some observers discount RIEPA FDI figures as 
overly optimistic. 
 
CONVERSION AND TRANSFER POLICIES 
-------------------------------- 
 
There is no difficulty in obtaining foreign exchange, or 
transferring funds associated with an investment into a 
freely usable currency and at a legal market clearing rate. 
In 1995, the Government of Rwanda established a market 
-determined exchange rate system under which all lending and 
deposit interest rates were liberalized.  The Central Bank 
holds daily foreign exchange sales freely accessed by 
commercial banks. 
 
Investors can remit payments only through authorized 
commercial banks, not through any parallel markets.  There is 
no limit on the inflow or outflow of funds, but justification 
for all transfers over USD 20,000 is required by the Central 
Bank to facilitate the oversight of potential money 
laundering. 
 
There is no limitation on the inflow of funds for 
remittances, but there are some restrictions on the outflow 
of export earnings.  Export earnings must be repatriated 
within three months after the goods cross the border unless 
the exporter makes arrangements to have more time.  Tea 
proceeds must be deposited after auctions in Mombasa (the 
usual site for sale of Rwandan tea).  Repatriated export 
earnings deposited in commercial banks must match the exact 
declaration the exporter used crossing the border. 
Justifications are required to transfer more than USD 20,000 
per year from Rwandan commercial banks.  Rwandans working 
overseas can make remittances to their home country. 
 
It takes three days to transfer money using SWIFT financial 
services and investors are allowed to use many other 
financial services such as Western Union and MoneyGram, which 
may be faster. 
 
The Rwandan Franc (RwF) is convertible for essentially all 
business transactions since January 2007.  Rwanda has a 
liberal monetary system and complies with IMF Article VIII 
and all Organization for Economic Cooperation and Development 
(OECD) convertibility requirements.  The Rwandan Franc 
exchange rate is set against a batch of currencies, including 
the Euro, the Pound Sterling, and the USD. 
 
EXPROPRIATION AND COMPENSATION 
--------------------------------------------- ------------ 
The Government of Rwanda is authorized to expropriate 
property if "in the public interest" and "for qualified 
private investment" under the expropriation law adopted in 
April 2007.  Compensation is negotiated directly between the 
buyer and the seller.  Expropriation procedures in theory 
take four months from the time the application is approved to 
final disposition.  Valuation remains non-transparent and 
controversial. 
 
Expropriation actions have been common in the capital because 
Kigali is undergoing major development, although it does not 
appear to be done in a discriminatory fashion.  No industrial 
plant has been expropriated thus far, as expropriation has 
been limited to residential and small farm parcels.  For 
detailed information on the expropriation law, visit 
www.primature.gov and official gazette law No 18/2007 of 19 
April 2007. 
 
There are no laws that require local ownership, but the 
Organic Land law allows government to expropriate land that 
lies fallow or is underutilized. 
 
 
DISPUTE SETTLEMENT 
------------------ 
The GOR established an arbitration center in 1998 as an 
alternative dispute resolution mechanism, but it has not 
lived up to expectations according to businesses that have 
utilized it.  Rwanda is a member of the International Center 
for the Settlement of Investment Disputes (ICSID) and African 
Trade Insurance Agency (ATI), which are supported by the 
World Bank and Lloyds of London.  ATI covers risk against 
restrictions on import and export activities, 
inconvertibility, expropriation, war, and civil disturbances. 
 
Rwanda currently has no specialized commercial courts; they 
will begin operation in early 2008. 
 
Until commercial courts begin operation and new business 
codes are enacted and operate appropriately, there will be no 
effective means for enforcing property and contractual 
rights.  Laws governing commercial establishments, 
investments, privatization and public investment, land, and 
protection and conservation of the environment are the main 
statutes governing investments in Rwanda.  Laws on privately 
financed infrastructure projects, insurance and mining are 
still lacking. 
 
Judgments of foreign courts and governing law clauses in 
agreements are accepted and enforced by local courts.  There 
have been growing numbers of private investment disputes in 
Rwanda.  The Government has never been involved as a 
complainant or respondent in a World Trade Organization 
dispute settlement. 
 
A U.S. investor is currently involved in a commercial dispute 
that has not been resolved through arbitration. 
Restructuring of the court system has created continuous 
delays and frustration for the investor, whose case has been 
in the court system since 2002.  Settlement negotiations 
continue between the government and the investor.  Rwanda 
signed and ratified the Multilateral Investment Guarantee 
Agency (MIGA) convention on October 27, 1989.  MIGA issues 
guarantees against non-commercial risks to enterprises that 
invest in member countries. 
 
 
PERFORMANCE REQUIREMENTS AND INCENTIVES 
--------------------------------------- 
 
The Government maintains measures that allegedly violate the 
WTO's TRIMs (Trade Related Investment Measures).  There are 
parallel imports of goods where patents and original trade 
marks are not registered and recognized.  However, as a least 
developed country Rwanda has up to 2013 to abide by specific 
WTO TRIMs. 
 
Unless stipulated in a memorandum of understanding that 
concerns the purchase of privatized enterprises, performance 
requirements are not imposed as a condition for establishing, 
maintaining, or expanding other investments.  They are mostly 
imposed as a condition to access tax and investment 
incentives.  Investors who demonstrate capacity to add more 
value, and invest in priority sectors enjoy more tax and 
investment incentives which include VAT exemptions on all 
imported raw materials, 100 percent write-off on research and 
development costs, 5 percent to 7 percent reduction in 
corporate income tax if the company exports products and 
services valued from USD 3 million to USD 5 million, duty 
exemption on equipment, and a favorable accelerated rate of 
depreciation of 50 percent in the first year. 
Although there are no legal obligations regarding these 
matters, foreign investors are encouraged to transfer 
technology and expertise to local staff in the development of 
human resources.  Work permits are granted to foreign 
expatriates as long as they are key personnel and fall into 
categories of skilled labor where Rwandans are not available. 
 
RIEPA has been relatively successful in developing important 
incentives and publicizing investment opportunities. 
Registered investors obtain certificates that bring benefits, 
including exemption from value-added tax and duties when 
importing machinery, equipment, and raw materials.  RIEPA 
also assists with the issuance of expatriate work permits, 
securing all the required government permits, and assisting 
with land acquisition if required.  Grants and special access 
to credit is provided to investors promoting rural areas. 
There no import quotas for investors. 
 
There is no legal requirement that investors purchase from 
local sources or export a certain percentage of their output. 
 In order to benefit from incentives of the planned free 
export zone, a certain percentage of the finished product 
must be exported.  There is regulation regarding access to 
foreign exchange in relation to exports. 
 
More tax incentives are given to investors who create 
significant export-oriented growth.  Determination is made 
upon request and is based on several factors: exports must 
total at least 80 percent of production (or must be at least 
10 percent if manufactured under bond); capital investment 
must be at least USD 100,000 (local investors and COMESA 
members) or USD 250,000 (non-COMESA investors). 
 
There is no legal obligation that nationals own shares in 
foreign investments or that shares of foreign equity be 
reduced over time.  Technology transfer can only be imparted 
to local employees.  There is no condition that technology be 
transferred on certain terms. 
 
The Government is not involved in assessing the type and 
source of raw materials for performance but the National 
Bureau of Standard determines quality standards.  Investors 
are not required to disclose proprietary information to 
government authorities. 
 
U.S. and other foreign firms are allowed to participate in 
government financed and/or subsidized research and 
development programs.  In practice, foreign firms are given 
special priority in research projects because Rwanda has not 
yet fully developed a highly trained cadre of research 
professionals. 
 
There are no onerous visa residence or work permit 
requirements that inhibit foreign investors' mobility.  U.S. 
nationals are not required to have visas for the first 90 
days of their stay in Rwanda.  Other foreign nationals have 
their visas processed in a timely manner.  As a result of 
joining the East African Community, East Africans are not 
required to have work permits in Rwanda.  RIEPA facilitates 
visas and work permits for potential investors. 
 
 
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT 
-------------------------------------------- 
 
Local and foreign investors have the right to own and 
establish business enterprises in all forms of remunerative 
activity.  Private ownership is preserved in the constitution 
of Rwanda.  The constitution stipulates that every person has 
the right to private ownership, whether personal or in 
association with others.  It cannot be violated except in the 
public interest, and with procedures that are determined by 
law, and subject to fair compensation. 
 
Private entities are also allowed to acquire and to dispose 
of interests in business enterprises.  Foreign nationals may 
hold shares in locally incorporated companies.  Competing 
with public enterprises is not a serious concern for the 
private sector as the Government has privatized and continues 
to privatize public enterprises that would compete with the 
private sector. 
 
 
PROTECTION OF PROPERTY RIGHTS 
----------------------------- 
The legal system protects and facilitates acquisition and 
disposition of all property rights.  Investors involved in 
extensive agriculture have lease-hold titles to their land; 
investors are able to secure other forms of property titles, 
if needed.  The land law passed July 14, 2005 stipulates 
modalities of property registration, but no registries have 
been established yet.  Real property titles cannot be held 
without development on the land.  Title can be donated or 
sold. 
 
Rwanda adheres to key international agreements on 
intellectual property rights and adequate protection of 
intellectual property rights.  As a least developed country, 
Rwanda has up 2013 to abide by specific Trade Related 
Intellectual Property (TRIP) arrangements.  As a member of 
the Common Market for East and Southern Africa (COMESA), 
Rwanda is automatically a member of the African Regional 
Intellectual Property Organization (ARIPO).  It is also a 
member of the World Intellectual Property Organization (WIPO) 
and is currently working towards conformity of its 
legislation to WTO trade-related aspects of intellectual 
property.  The Ministry of Commerce (MINICOM), the Rwandan 
Revenue Authority (RRA), and the Rwandan Bureau of Standards 
(RBS) work together to address issues involving counterfeit 
products on the Rwandan market.  In one instance, an American 
firm was grateful to Rwandan support for destroying 
contraband shoe polish that entered the country illegally. 
Through the RBS and the RRA, Rwanda has earned accolades for 
its protection of intellectual property rights, but many 
goods make it to market that violate patents, especially 
pharmaceutical drugs. 
 
Rwanda has not yet ratified WIPO internet treaties, but steps 
to implement and enforce the WTO TRIPS agreements have taken 
place.  Intellectual property legislation covering patents, 
trademarks and copyrights have been introduced in parliament 
and await action by that body.  A Registration Service Agency 
due to be established early in 2008 will further improve 
intellectual property rights; the Agency will register all 
commercial entities and their businesses. 
 
 
TRANSPARENCY OF THE REGULATORY SYSTEM 
------------------------------------- 
 
The GOR generally uses transparent policies and effective 
laws to foster clear rules consistent with international 
norms.  Institutions such as the Rwanda Revenue Authority, 
the Ombudsman's office, the Bureau of Standards, the Rwanda 
Utilities Regulatory Agency, the National Tender Board, and 
the Privatization Secretariat all have clear rules and 
procedures.  Regulations concerning the Rwanda Environment 
Management Agency and the Rwanda Utilities and Regulation 
Agency in contrast lack the same degree of transparency and 
confuse investors. 
 
There is no formalized mechanism to publish draft laws for 
public comment, although civil society is often accorded the 
opportunity to review proposed laws.  Nonetheless, there is 
no government effort to restrict foreign participation in 
industry standards-setting consortia or organizations. 
 
Some investors complain that the strict enforcement of tax, 
labor, and environmental laws impede investment, but the 
complaints come mainly from local investors unaccustomed to 
modern regulatory mechanisms. 
 
Bureaucratic procedures including those for licenses and 
permits are not sufficiently streamlined.  A draft law 
establishing a Rwanda Registration Service Agency has been 
passed, and the Agency will be established early in 2008. 
The law is intended to simplify procedures for obtaining 
trade permits and licenses. 
 
Rwanda established an Ombudsman's office in 2004 that 
monitors transparency and compliance with regulations in all 
governmental sectors.  The Rwanda Utility Regulation Agency, 
the Auditor General's Office, the Anticorruption Division in 
the Rwanda Revenue Authority, the National Bureau of 
Standards, and the National Tender Board are all in place to 
enforce regulations as well.  The press exposed instances of 
bad debts and malfeasance in 2007 involving private citizens 
and GOR officials.  Government investigation and public 
exposure has led to some arrests and resignations within the 
GOR, and Rwanda continues to fight corruption vigorously. 
 
There is no informal regulatory process managed by 
nongovernmental organizations.  Existing legal, regulatory 
and accounting systems are generally transparent and 
consistent with international norms.  However, some public 
officials lack autonomy in certain circumstances. 
 
A key component of the GOR's regulatory system is the Auditor 
General's Office, established in 1999 to audit government 
adherence to fiscal controls.  The Auditor General's report 
for 2007 cited many accounting irregularities.  The 
Prosecutor General and the police are using the report to 
examine official conduct of government business in several 
dozen institutions. 
 
No consumer protection associations exist.  Through the 
Rwanda Private Sector Federation, the business community has 
been able to lobby the GOR and to provide feedback on 
government policy and execution. 
 
 
EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT 
--------------------------------------------- ----- 
Access to affordable credit is a serious challenge in Rwanda, 
as interest rates are relatively high and loans are usually 
short term.  Nonetheless credit is allocated on market terms 
and foreign investors are able to get credit on the local 
market if they have collateral and bankable projects. 
 
The private sector has limited access to credit instruments. 
Most Rwandan banks are conservative, risk-averse and trade in 
limited commercial products.  A variety of credit instruments 
were introduced with the privatization of the commercial 
banks and more products such as mortgages will expand as the 
industry matures.  Credit cards are still lacking but debit 
cards have been introduced on a limited basis. 
 
The Central Bank encourages and facilitates investments 
through the sale of treasury bills, but capital markets and 
the associated regulatory systems do not yet exist. 
 
A 2006 United Nations Conference on Trade and Development 
publication reported that the percentage of non-performing 
loans in the commercial market was 24 percent. 
 
From 2001 to 2005, the total capital requirement for 
commercial banks was 1.5 billion Rwanda Francs (USD 3 
million) and RF 3 billion for investments banks.  In 2006, 
the central bank increased the capital requirement for 
commercial banks and investment banks to USD 9.2 million or 5 
billion Rwanda Francs. 
 
Since there is no public stock exchange, corporations trade 
shares among themselves or with private investors.  No 
hostile takeovers have occurred involving foreign investors, 
and both the Central Bank and the GOR have been very active 
in seeking foreign investors for the banking sector.  Private 
firms have not engaged in arrangements to restrict foreign 
investment. 
 
Plans are underway to develop capital markets.  Ministry of 
Finance and Central Bank officials are working on the 
creation of a bond market with assistance from the U.S. 
Department of the Treasury.  An effective regulatory system 
is monitored by the Central Bank, which is given high marks 
by the IMF. 
 
 
POLITICAL VIOLENCE 
------------------- 
 
Rwanda remains a stable country with little violence.  A 
strong police and military provide an umbrella of security 
that continues to minimize criminal activity and political 
disturbances.  There have been no incidents involving 
politically motivated damage to projects or installations 
since the 1994 genocide and war. 
 
Presidential elections in 2003 were peaceful, although 
significant voting irregularities were documented.  Rwanda no 
longer faces insurgent activity from rebel groups operating 
in the Democratic Republic of Congo.  Rwanda acts in concert 
with its neighbors to fight crime and terrorism, and the GOR 
actively cooperates in efforts to identify and freeze the 
assets of known terrorist individuals or organizations. 
 
 
CORRUPTION 
---------- 
 
The GOR senior leadership maintains a consistent policy of 
combating corruption within Rwanda.  Although less corrupt 
than many other governments, the GOR is confronted with 
periodic allegations of misconduct by officials using their 
office for personal gain.  In general, such incidents are 
investigated and punishment imposed when guilt is 
established; enforcement is equal for both foreign and local 
investors.  When corruption involves high-ranking officials, 
they are dismissed or prosecuted.  Senior government 
officials appear to take pride in Rwanda's reputation for 
being tough on corruption, and the parliament takes an active 
role in investigating public officials accused of corruption. 
 
Rwanda has signed and ratified the UN Anticorruption 
Convention.  It is a signatory of the OECD Convention on 
Combating Bribery and of the African Union Anticorruption 
Convention.  Giving and accepting a bribe is a criminal act 
under law, and penalties depend on circumstances surrounding 
the specific case.   U.S. firms have not identified 
corruption as an obstacle to investment. 
 
Corruption is generally low, but the 2007 Auditor General 
report highlighted irregularities in government procurement. 
Businessmen report occurrences of petty corruption in the 
customs-clearing process, but there is almost no reported 
corruption in transfers, dispute settlement, the regulatory 
system, taxation or investment performance requirements. 
 
A local company cannot deduct a bribe to a foreign official 
from taxes.  A bribe by a local company to a foreign official 
is a crime in Rwanda. 
 
Institutions including the Ombudsman Office, the 
Anti-Corruption Unit in the Rwanda Revenue Authority, and the 
Auditor General's Office identify corruption cases.  The 
police and Prosecutor General's office prosecute the actual 
acts. 
 
Transparency International or other similar regional non 
governmental organizations do not operate in Rwanda, yet 
periodically issue reports. 
 
 
BILATERAL INVESTMENT AGREEMENTS AND AGOA 
---------------------------------------- 
 
Rwanda is eligible for trade preferences under the African 
Growth and Opportunity Act (AGOA), which the United States 
enacted to extend duty-free and quota-free access to the U.S. 
market for nearly all textile and handicraft goods produced 
in eligible beneficiary countries.  A Trade and Investment 
Framework Agreement (TIFA) was signed between the U.S. and 
Rwanda in 2006.   Negotiations continue toward a Bilateral 
Investment Treaty. 
 
 
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS 
--------------------------------------------- 
 
The Overseas Private Investment Corporation (OPIC) has 
provided a single investment guarantee in Rwanda to Sorwathe, 
an American-owned tea factory. 
 
The exchange rate regime is stable.  OPIC currently has one 
 
 
loan program in Rwanda.  Given the enduring stability in the 
country and ongoing investment reform, OPIC officials have 
expressed strong interest in expanding its involvement. 
 
The Export-Import Bank (EXIM) continues its program to insure 
short-term export credit transactions involving various 
payment terms, including open accounts that cover exports 
from the U.S. of consumer goods, services, commodities, and 
certain capital goods.  Rwanda is a member of the 
Multilateral Investment Guarantee Agency (MIGA) and the 
African Trade Insurance Agency (ATI). 
 
 
LABOR 
------ 
 
General labor is available and improving, but there is a 
shortage of skilled labor, including accountants, lawyers, 
and technicians.  Higher institutes of technology, many 
private universities, and vocational institutes are improving 
and producing more and more graduates each year. 
 
Rwanda adheres to International Labor Organization (ILO) 
conventions protecting worker rights.  Policies to protect 
workers in special labor conditions exist, but enforcement 
remains questionable.  On-the-job training and technology 
transfer to local employees is encouraged but not obligatory. 
 
The national labor code was revised in 2000 to eliminate 
gender discrimination, restrictions on the mobility of labor, 
and wage controls.  Laws relating to insurance are being 
prepared.  Companies will find skills deficits in many 
sectors when hiring, but these deficits will continue to 
shrink as literacy rates increase and more qualified people 
graduate from Rwandan institutions of higher learning. The 
general population's literacy rate continues to improve each 
year since the 1994 genocide and war. 
 
 
FOREIGN TRADE ZONES/FREE PORTS 
------------------------------ 
 
Rwanda is a member of several sub-regional economic 
organizations, such as the Economic Community of the Great 
Lakes (CEPGL), the Common Market for Eastern and Southern 
Africa (COMESA), and the East African Community (EAC). 
Member countries in COMESA operate under a free trade 
agreement.  Goods originating from COMESA countries that 
fulfill conditions of rules of origin qualify for duty free 
status (value addition on imported raw materials must be 35 
percent to qualify for duty free status).  Rwanda plans to 
establish a free trade zone in the near future.  Free trade 
between East African Community members is scheduled to start 
in 2009 and should boost investment in Rwanda. 
 
 
FOREIGN DIRECT INVESTMENT STATISTICS 
------------------------------------ 
 
Foreign direct investment statistics from 2001 to 2004 as 
provided by UNCTAD are as follows.  In 2001 FDI was USD 3.8 
million or $ 2.30 per $1000 of GDP.  In 2002 it was USD 7.4 
millions or $4.50 per $1000 of GDP.  In 2003 FDI was USD 4.7 
millions or 3.00 in per $1000 of GDP.   In 2004, FDI was USD 
10.9 million or $5.90 in per $1000 of GDP.  RIEPA reports FDI 
of $115.1 million for 2005 and $104.9 million for 2006. 
However, most observers consider RIEPA estimates to be 
inflated. 
ARIETTI