Stepping up Kigali’s Economic zone

A World Bank expert on special economic zones has advised the government to embark on the promotion of a more conducive environment to attract more foreign and local investors.

Wednesday, October 17, 2012

A World Bank expert on special economic zones has advised the government to embark on the promotion of a more conducive environment to attract more foreign and local investors.Noel Gulliver, a consultant with the International Finance Corporation of the World Bank Group, disclosed this to The New Times at the sidelines of a workshop organised by Rwanda Development Board (RDB) to assess the current status of Kigali Special Economic Zone.He will be working closely with the newly established Special Economic Zones Authority to ensure the implementation of the projects.The Kigali special economic zone that is located in Gasabo District, will host an industrial park, which is due for relocation from Gikondo in Kicukiro District, amongst other related investments in the country.He said that though the government has succeeded in ensuring a favourable business environment for investors, more was needed for the economic development of the country."You may start with many economic or financial incentives and more users will find it an easy place to do business and later you can increase your charges to get your profits,” he advised.Gulliver said there was need to learn from other successful special economic zones in the world like Dubai, Malaysia, China, and Thailand and contextualise it in the local market for the country to realise its goals.He however, observed that there would be a challenge of mindset change among the people to embrace the projects, adding that relevant authorities should exert a lot of effort in changing it.Kigali special economic zone is nearly 96 percent complete, including roads, sewerage system and water, amongst others. The Chief Executive of the Kigali Economic Zone Authority, John Bosco Sendahangarwa, noted that 90 percent of the first phase of land has already been booked by 80 foreign and local investors.He mentioned that they intend to have a "One stop shop” to provide all services including immigration and duty.RDB’s acting Chief Executive Officer, Clare Akamanzi, said they are in the process of putting up a working group of several institutions to ensure that the remaining work at special zone is completed."The industrial sector in Rwanda is the one we want to see developing rapidly. We have seen the service sector and agro- processing growing, to contribute to the economic growth of the country.”She further pointed out that for the economy to grow, all sectors should contribute their services.Akamanzi said that government plans to establish other special economic zones countrywide.The Director of Trade Advocacy at the Private Sector Federation, Antoine Manzi, however observed that though the economic zone was a new opportunity to investors, it occupied a small space that could impede investment opportunities."The space is small, for example in Gikondo, where most industries are located, there is  enough space  and traders are effectively operating,  but the Kigali economic zone is small and cannot accommodate all the industries and other investors, and this could be a major challenge,” he noted.If successfully established, the zone will provide employment opportunities to the local market, growth of industries and as well as help consumers to access their goods and services in a single area.The industrial sector in Rwanda is one of the most undeveloped in the east African region. A policy towards the establishment of special economic zones  in the country was formulated and approved by the Cabinet in December 2009 and consequently, the law regulating them was enacted in January 2011 and three ministerial orders approved in December 2011.