The government is considering the possibility to include Rwanda Reserve Forces in the beneficiaries of armed forces’ shop (AFOS), the Minister of Defence, Juvenal Marizamunda, said on March 14.

He made the disclosure during a session in which he was explaining the relevance of a draft law establishing Rwanda armed forces’ shop.

He was responding to MP Beline Uwineza’s query on why Rwanda Reserve Forces are not beneficiaries of the shop.

Beneficiaries of the shop buy, from it, tax and duty-free items, including foodstuffs.

Its current beneficiaries are members of RDF (except Rwanda Reserve Forces), Rwanda National Police, and Rwanda Correctional Service (RCS) – as principal beneficiaries, and their families (spouses for those who are married, and children) which the existing law describes as other beneficiaries.

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Uwineza said that there was a need to add reservists on the list of AFOS beneficiaries.

"I would like to know whether the Ministry of Defence thought about other people who can be added to that category [of beneficiaries] to be determined by the ministerial order. I mean Reserve Forces or in police [retired police officers] such that they can also be included in the category of those who are eligible to shop from AFOS because it can help them in line with continuing to support ex-military and police personnel,” she said.

Marizamunda said that AFOS was set up to help improve the welfare of beneficiaries.

He indicated that the new bill maintained the current beneficiaries but proposes a provision stipulating that new other beneficiaries are determined by an order of the minister in charge of defence.

"Among others [beneficiaries of AFOS] who could be catered for soon are Reserve Forces. It is a project we are studying to identify their number, what it requires, what will it take the government, and how much will it forgo. Then, once we realise it is within the capacity of the country, it will immediately be implemented,” he said.

Reservists, he observed, are a service of RDF who previously used to shop from there [AFOS], and they might be negatively affected when they are no longer eligible to do that – to get the tax and duty-free goods which are relatively cheap compared to those sold inordinary markets.

"They are the people we need. We call them back [to serve] if necessary. So, you cannot bring back someone who is hungry and expect results from him/her,” he said.

Why the new bill?

Marizamunda said that the existing law under which AFOS was set up, was prepared based on the organic law of 2009 establishing general provisions governing public institutions.

He said that the organic law was later revised in 2020, and provided that a non-commercial public institution is established by a presidential order, instead of a law as it was the case before.

A challenge emerged that AFOS cannot be exempted from taxes if it is established by a presidential order.

To address the challenge, he said, Rwanda Law Reform Commision and other consulted entities including the Office of the Prime Minister, indicated that for the shop to continue enjoying tax-free treatment, it should be established as a specialised organ – by a law – and then the law provides for tax and duty exemption.

As such, the bill seeks to establish AFOS as a specialised entity.

Also, AFOS will enjoy powers to do business activities for it to be able to fulfil its responsibilities in a sustainable way.

He indicated that AFOS was already making investments, but that was not provided for by the current law.

Its investments are in cash deposits in banks and buying [government] treasury bonds.

On March 14, the lower chamber of Parliament approved the relevance of the new bill, and it will be analysed by a responsible parliamentary committee prior to being voted into law by the assembly.

AFOS was previously established by the law of 2012 establishing Rwanda Defence Forces and Rwanda National Police Shop and determining its mission, organisation and functioning.

It started as a shop for the army, and later extended access to police personnel, and Rwanda Correctional Service staff.