Rwanda’s expanding meetings, incentives, conferences and exhibitions (MICE) and tourism industries, growing private sector and increasing demand for executive mobility have created significant opportunities for investment in private car rental services. From airport transfers and corporate transportation to luxury vehicle hire and tourism-related travel, the sector plays an increasingly important role in the country’s service economy. However, establishing a private car rental business requires more than acquiring vehicles and registering a company with the relevant authority. Investors need to understand the sector’s legal, regulatory and tax framework to ensure that their businesses operate lawfully and benefit from available investment incentives. Article 3 of Law No. 006/2021 of 05/02/2021 on Investment Promotion and Facilitation provides that “all business sectors are open to private investment, irrespective of the origin of the investor.” Additionally, Article 9 permits foreign investors to invest in and acquire shares in Rwandan investment entities and receive the same treatment as Rwandan investors regarding investment incentives and facilitation. These provisions create a conducive environment for investors seeking to establish private car rental businesses in Rwanda, subject to other sector-specific requirements. Following successful registration of the company with the Office of the Registrar General at the Rwanda Development Board (RDB), an investor is required to obtain the relevant operating licence from the Rwanda Utilities Regulatory Authority (RURA), which is responsible for issuing licences in the transport sector. According to the licensing requirements communicated by RURA, an applicant must submit a five-year business plan covering the investment project, implementation plan, financing, market assessment and projected income. Other requirements include investment and incorporation certificates, evidence of compliance with the applicable fleet requirements, either five vehicles aged five years or less, or 15 vehicles aged 10 years or less, parking space approved by the local authority, and payment of the prescribed fees. Transport as a priority The Investment Code expressly designates transportation and tourism as priority investment sectors under Article 4, paragraphs 6 and 9. Tourism activities covered include hotels, adventure tourism and agro-tourism. This designation is relevant to private car rental businesses, which provide transportation services to tourists, corporate clients, government institutions and international visitors. The code also provides incentives for investors in the transport sector. Article 6 stipulates that registered investors who satisfy the applicable conditions may benefit from the investment incentives set out in the annex to the code, as well as others that may be approved by ministerial order. One important consideration for investors in premium car rental and tourism transportation is the import duty relief available for high-value vehicles serving a growing clientele of high-end customers and tourists. Through Legal Notice No. EAC/160/2026, published in the East African Community Gazette of June 30, 2026, Rwanda maintained a special import duty arrangement for motor vehicles valued at more than US$60,000. The notice provides for a zero per cent import duty rate on the portion of a vehicle’s cost, insurance and freight (CIF) value exceeding US$60,000 for investors and institutions approved by RDB. This measure aims to attract foreign investment and facilitate the importation of premium vehicles, supporting Rwanda’s positioning as a MICE and tourism destination. The investment law also establishes an important framework for building investor confidence. Articles 10 and 12 provide protections for private property and investment assets and establish the right to repatriate capital and profits, subject to the fulfilment of applicable tax obligations. These guarantees, together with the recognition of transport and tourism as priority investment sectors, reinforce Rwanda’s commitment to creating an environment conducive to both local and foreign private investment. Rwanda’s recognition of transport and tourism as priority sectors highlights their strategic importance. Investors who understand and comply with the applicable legal framework are better positioned to benefit from opportunities in the country’s fast-growing mobility and tourism economy. The writer is Legal Counsel and Company Secretary at PTS.
