TOP STORY: Rwf4.2 billion to promote investment climate

The project is designed to promote a competitive climate by reducing costs and increasing the efficiency of telecommunications, water and electric utilities and the tea industry. The African Development Bank (ADB) has approved a grant worth $7.4 million (about Rwf4.2 billon) to promote a competitive investment climate in Rwanda within a period of four yeas. The project will address the challenges in Rwanda’s private sector and the high cost of doing business in the country. It will also address the limitations to enterprise development in the country. The grant agreement was signed last week on, March 6, 2009, at the offices of the Ministry of Finance and Economic Planning between the ADB resident representative, Jacob Mukete and Finance Minister, James Musoni. Mukete commended the government for its sustained efforts in the implementation of the necessary institutional policies for fostering economic growth and reducing poverty, and promised that ADB will continue to support the country’s development agenda. According to the agreements, the 2nd phase of Competitive and Enterprise Development Project, will focus on two mentioned critical institutions in the improvement of business environment in Rwanda. These institutions include the National Bank of Rwanda and Rwanda Development Board (RDB)The other major objective of the project is to contribute to ‘enterprise competitiveness’ in Rwanda by promoting access to financial information through establishing of a Credit Reference Bureau (CRB) and strengthening risk-based banking supervision. A statement released recently on the same issue said that both objectives will contribute to making the financial sector an effective platform for private sector growth. CEDP in Rwanda started in 2001 under World Bank financing with the overall objective to establish an enabling environment for growth and development of the private sector that would help reduce poverty in Rwanda. The grant focused on the financial sector as an important part of the business environment and the government’s Financial Sector Development Program (FSDP), in five high priority areas. These areas include building capacity in the microfinance sector, developing accounting and auditing standards, enhancing the regulation and supervision of Non Bank Financial Institutions (NBFI), strengthening the national pension fund and modernizing the payment system. The FSDP was completed in 2007 and is an important part of the Government’s recent Economic Development and Poverty Reduction Strategy (EDPRS). The project is designed to promote a competitive climate by streamlining the business environment, reducing costs and increasing the efficiency of telecommunications, water and electric utilities and the tea industry. It will also improving access to financial and support services to local entrepreneurs. Ends