Three years ago, Rwanda launched the Kigali International Financial Centre (KIFC), an initiative spearheaded by Rwanda Finance Limited, in a bid to transform Kigali into a regional financial hub capable of attracting foreign investments as well as encouraging the creation of highly skilled jobs in the sector.

Significant milestones have since been reached and several activities completed, an opportune moment for "achieving even bigger”, according to KIFC.

Under the new plan, KIFC says it seeks to remain an attractive, compliant and credible international finance center, underpinned by its openness to international markets and robust regulatory standards.

This was highlighted during the firm&039;s annual review ceremony, hosted last week to, among others, reflect on its achievements but also unpack future prospects in a bid to imprint its footsteps in improving Rwanda’ financial sector on the global market.

Various stakeholders were present at the colorful event hosted in Kigali Convention Center, with the Minister of Finance and Economic Planning Uzziel Ndagijimana presiding over the ceremony

KIFC continues to play an important and immediate role in unlocking new investment and facilitating Rwanda’s economic recovery and resilience, pointed out Nick Barigye, CEO of Rwanda Finance Limited.

"The year 2022 saw us reach greater heights in our quest to develop and promote Rwanda as a Pan-African financial hub evidenced by 49 newly incorporated entities,” Barigye said.

Equally remarkable, he added, is the establishment of a Pan-African fund to support tech and education sectors, the launch of the $100 million African Development Bank (AfDB) Pan-African foundation established through KIFC to facilitate investment in regional vaccine and healthcare specialty services were also remarkable achievements.

"KIFC’s achievements to name a few include 6 tax treaties signed, 16 laws gazetted and 25 investors attracted into our ecosystem,” Barigye said, citing that it was particularly for the year 2022.

He added that other notable investment funds that have been domiciled through KIFC over the last two years, include: $350million (FEDA fund), $250million (Virunga fund) and $21million (Future for work fund).

Since debuting on the Global Financial Centres Index (GFCI), a ranking of the competitiveness of financial centers across the world, KIFC retained its fifth position last year.

The index rates 116 financial centers, combining assessments from financial professionals with quantitative data.

On the continent, KIFC comes after Casablanca, Cape Town, Johannesburg and Mauritius but ahead of Nairobi and Lagos.

Currently Rwanda’s financial sector contributes 3 percent to the economy and there are plans, according to KIFC, to increase this contribution to 11.8 percent in the next few years.

KIFC projects to venture in creating an ecosystem for innovators and future entrepreneurs – a place that leverages finance and technology to build Rwanda’s knowledge-based economy.

This is expected to generate $150 million in ICT exports annually once fully operational, but overall modernization of the Rwandan economy will touch sectors as varied as financial services, health care and even agriculture.

On the right path

According to Hortense Mudenge, the Chief Operating Officer, the transfer of skills and economic substance requirements associated with KIFC ensure that investors prioritize the development of local talent.

The minimum threshold of 30 percent for Rwandan professional staff is neither unusual nor overly-ambitious, however.

Rwanda already hosts a number of internationally-accredited institutions that support skills in legal, accounting and other professional services.

For Minister Ndagijimana, the goal of turning Kigali into a regional financial centre fits with the goals of the African Continental Free Trade Area (AfCFTA). Both projects are motivated by a desire to end African dependence on commodity exports.

"Kigali International Financial Centre plays a crucial role in realizing Rwanda’s aspirations to become an upper-middle-income country by 2035 and a high-income country by 2050,” he said.

Club members take

"We are grateful for the opportunity to partner with KIFC in unlocking the vast opportunity for the African Market. Mettle is borne out of the desire to see how we African can take the front seat of our combined destiny ensuring we win our economic independence and stand as the pride of the world,” said Tuvei Onojaife, Chief Executive Officer at Mettle Ltd.

Onojaife said his company’s commitment is to start this movement from Rwanda, through Rwanda for Africa

Mettle Ltd is a holding entity, building economic value across Africa through circular economy, agriculture, finance and energy.