The World Bank Doing Business Report (2013) ranked Rwanda 32nd
out of 189 countries, which is a significant jump up by 22 positions from the
previous year. It excels in registering property and starting a business by
entering the top 10 worldwide. In Rwanda, it takes only 12 days to register
property and two days to start a business, which are far less than the regional
averages and even the averages of OECD countries. Several reforms have
contributed to improving the business environment. For example, recently, Rwanda
reduced the time required to obtain a registration certificate for starting a
business. It also eased transferring property by eliminating the requirement for
a tax clearance certificate and by implementing the web-based Land
Administration Information System for processing land transactions.
Privatization of state-owned enterprises and reformation to pro-investment
policy has actively taken place to attract foreign direct investment (FDI).
However, despite no limits on foreign investment, participation, or control of
enterprises, FDI levels are still low. Many current investors find the country’s
taxation regime and the room interpretation of contracts as the main challenges
to investing in Rwanda. Moreover, access to investment and credit by both
Rwandan and foreign investors are influenced by networks close to the government
or by certain privileged circles of Rwandans abroad (U.S. Investment Climate
Statement 2013) .
|The Business Environment: Doing Business