It is to be expected that traders will always complain whenever new charges, however justified, are introduced that cut into their profit margin. This is the case of new maintenance charges investors in Kigali Special Economic Zone will have to pay on top of many other taxes. The investors argue that the charges are exorbitant and might push production costs up. Managers of the economic zone, on the other hand, justify the new tariffs – estimated at Rwf13 million annually for a 10,000 m2 plot – as being “in line with international standards of any special economic zone in the world”. The issue here is not whether either side is justified in their reasoning; the issue is whether consultations were held before coming up with the final figure. The Special Economic Zone is a lynchpin in the country’s roll towards building a sustainable production sector; therefore, there is urgent need to create a win-win environment for all stakeholders. The stakes are high in building a vibrant manufacturing zone, but so are the benefits. Bringing on board all players and working hand-in-hand to come up with a satisfactory blueprint that will not unnecessarily bog down the project is what should be the target. Pegging the tariffs on “other” economic zones in operation is not a viable argument because all zones have their particularities. Charges should be tailor-made to satisfy all parties, with none of them losing out.
