Kigali special economic zone maintenance fee to be revised

A special committee has been set up to study and come up with new maintenance fees for investors within the Kigali Special Economic Zone.The Committee that includes the Prime economic zone authorities, Special Economic Zones Authority of Rwanda (SEZAR) based at Rwanda Development Board, three investors and Ministry of Trade and Industry officials has been given one month to come up with a maintenance fee agreeable to all parties.The development comes days after investors warned that the Rwf1500 maintenance fee per square meter-per-year, that was meant to be levied effective this month, would stifle business.Jeanne Isabella Gasana, the managing director of Kigali Special Economic Zone, Phase One, said they want to agree on the amount of fees that will not hurt investors, but also make it possible for the zone to be maintained.She said the fee should be enough to cater for the maintenance and protection of the investor’s property so as to create a conducive environment for all the stakeholders.“You wouldn’t like to see damaged roads, sewerage and drainage systems, optic fiber cables among others go without being maintained. All we are looking for is a harmonised way of having these issues addressed. We believe within a month’s time, we shall be able to come up with an agreeable fee,” Gasana said. Investors agree to disagree Suchir Bhatganar, general manager SRB Investments Ltd, a paper bag plant urged the authorities to work with investors for the good of the economy. “Working together will make it easy for all the stakeholders to come up with a harmonised fee that will not suffocate businesses. We are talking about those areas which may not necessarily need the zone’s intervention such as payment of electricity and water. Investors normally pay for these services themselves. This is an area where we can agree, the fact that we do not have a road repaired very often, is yet another area that can be harmonised,” Bhatganar said. However, Mary John, the chief executive of Sahasra Electronics Rwanda Ltd, a firm which is constructing a LED lights factory in the zone, urged authorities to find alternative sources of finance to maintain the zone.“The government can consider using revenue generated by the very investments so as to be able to maintain the zone,” she said. Another investor said the revision move is in the right direction. “We are responsible investors. It is our duty to ensure that this economic zone is maintained and fully protected. However, fees should be levied with restraint,” an investor who preferred anonymity said.Other investors still maintain that the fees should be scrapped. “Whether revised or not, there is no justification for one to impose a fee on an investor who, apart from creating jobs for Rwandans, pays taxes and contributes to the country’s economic development,” John Mary said.Investors in the special economic zone received a letter from the prime economic zone late last month instructing them to pay a maintenance fee of Rwf1500 per square meter per year effective this month.If not revised it would mean that on average, one will have to pay Rwf15 million for every 10,000 square meter of land space annually as maintenance fee which translates to about $62 per day (about Rwf30,000).Alex Ruzibukira, the board chair of Special Economic Zone, and director-general of industry and SMEs department at the Ministry of Trade and Industry, earlier argued that the fees are in line with international standards of any special economic zone in the world though he said the fees could be revised.Kigali Special Economic Zone is a merger of two projects, namely; Kigali Free Trade Zone and Kigali Industrial Park.With each square metre at Rwf20,000, the zone sits on 276 hectares of land, and is expected to boost and help diversify economic activity, create jobs, and increase investments.

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Kigali special economic zone maintenance fee to be revised