Kigali International Financial Centre (KIFC) has been in the news in recent months with huge expectations on its role in the country’s economic development.
However, there still exists questions on the Centre, its ambitions and affiliated institutions. Below are key points about the centre and its pursuits.
Where is the Kigali International Finance Centre? Is it a physical space?
Kigali International Financial Centre (KIFC), is an initiative that seeks to position Rwanda as a preferred financial jurisdiction for investments into Africa, as well as reform the domestic industry.
According to Adelit Nsabimana the Technical Advisor Rwanda Finance Limited, KIFC is an ecosystem, not a physical place.
“It is made up of financial institutions, service providers, users of the center, regulators and institutions in charge of registration of businesses in Rwanda among other stakeholders, he said.
What is the role of Rwanda Finance Limited?
Rwanda Finance Limited is a government-owned company, whose mandate is to develop and promote Rwanda as a business and financial services hub.
Rwanda Finance’s Limited mandate is to work with the industry players within the services sector, understand their needs, challenges, and then cause dialogue with policy formulators to address them.
What are the ongoing tasks to set up KIFC?
To achieve the desired ambitions to set up the KIFC, experts say that it requires among other things to have a safe and conducive investment and business ecosystem.
The ambitions according to Nsabimana require putting in place a legal and regulatory framework that is robust and attractive for investment, setting up an efficient and stable tax policy as well as developing a skilled work force.
Other factors that are key in the process include having a flexible tax regime, provisions for repatriation of capital to avoid double taxation as well as a regulatory framework that reflects global standards.
Michele Umurungi, a Senior Policy and Strategy Analyst at Rwanda Finance Limited said that it also requires a country to have great quality of life so that professionals can choose the country as their operating base.
What impact will it have on the country?
A vibrant financial centre can be a catalyst for development for any country. Among the top benefits which have a trickle-down effect on the economy include creating an alternative for mobilizing capital reducing dependence on traditional avenues such as bank loans.
Like in other countries that have developed IFCs, it will also lead to increased quality jobs creation as well as additional tax revenues from the government.
How can Rwandans get involved?
The Kigali International Finance Centre is not only tailored to target international investors but also Rwandan investors and firms.
“Rwandans can be and should be involved, If you are a business person, look no else but Rwanda as a base for your holding company or investment funds. We are creating a base for you,” Umurungi said.
Jackson Rugambwa a Tax Policy Analyst said that often, there are often misperceptions that international finance centers only target international players.
“The truth is that it can be used by regional players and local players. For KIFC, we have designed policies, programmes and facilities. We are encouraging local players to restructure their brands to benefit from the incentives,” he said.
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