The following article was suggested by one of our readers—if theres an idea you would like us to cover, please submit it here. Over the last one year, the Kigali International Finance Centre, an initiative seeking to position Rwanda as a business and financial hub in Africa, has attracted a number of investors and members. Below are some of the pioneer entrants on to the scene. Chancen International is a social impact investor focusing on tertiary education. They provide financing for young people in Africa to access quality education. This model of financing is called an Income Share Agreement and originated in Germany before being launched in East Africa in 2018. Chancen is investing in Rwanda and providing education to low-income background students by offering a new financing option to Rwandan students as an alternative to a typical bank loan. Initially, Chancen was set up as a non-profit organization; however, with KIFC’s new product offering, Chancen is setting up a special purpose vehicle with the objective of collecting funds from various investors – to date 700 million Rwf has already been invested in Rwanda. Dakar Network of Angels (DNA) is an Angel Network based in Dakar (Senegal) investing in startups in Francophone Africa. DNA targets tech-enabled businesses building innovative solutions for Africa and serving a significant market. DNA has set up an investment holding company in Rwanda, sending a strong message that KIFC is a financial centre that is interested in and caters for Francophone markets. Due to ease of operations, an investor-friendly onboarding process DNA chose to structure its operations through KIFC. RH Bophelo is a South Africa-based healthcare investment company. The company’s portfolio includes operating hospitals, healthcare-related infrastructure, pharmaceuticals, ancillary healthcare services, among others. In May 2020, it became the first non-East African company to cross-list on the Rwanda Stock Exchange, after receiving approval from the Capital Markets Authority. The reinvested funds from the cross-listing and the subsequent soon-to-established healthcare fund will contribute to Rwanda’s ambition to develop its medical tourism offerings for the benefit of Rwanda and the East African region. The cross-listing by RH Bophelo was facilitated by Rwanda Finance Limited. Southbridge Rwanda is the first pan-African investment bank offering financial advisory and strategic consulting in Rwanda. Southbridge is led by seasoned Rwandan economist Dr. Donald Kaberuka, who is its Chairman and Managing Partner. The firm is facilitating strategic partnerships for Rwandan companies to expand their businesses enabling them to get access to new sources of funding and have access to the regional market. Southbridge will also help develop capital markets by advising companies in issuing financial instruments that could be listed. Fund for Export Development in Africa (FEDA) is a subsidiary of the African Export-Import Bank (Afreximbank). In November 2020, the Government of Rwanda signed agreements to establish and host the permanent headquarters of FEDA in Kigali. The fund will have an initial commitment of USD350 million from Afreximbank. Some of its objectives are to: increase private equity investments in sectors critical to driving Intra-African trade and export development, create a vehicle to drive and facilitate Foreign Direct Investment (FDI) into Africa’s value-added export sector and increase the share of equity instruments in the funding mix in Africa. The establishment of FEDA in Kigali will enhance the profile of Rwanda as an international financial centre, increase the potential of attracting equity capital funds, and expand the scope and contributions of financial services in the Rwandan economy. RDB initiated discussions with Afreximbank in August 2020 which led to the establishment of the FEDA Headquarters in Rwanda. AfricInvest is uniquely positioned as one of the most experienced private equity investors on the continent. AfricInvest is an active promoter of the private equity industry in the region having co-founded the African Venture Capital Association (AVCA) as well as the Middle East North Africa Private Equity Association (MENAPEA). It is the largest fund manager in Africa, approved by international development financial institutions and a new player in the Rwandan financial ecosystem and the private equity space. AfricInvest will structure its future investments in Rwanda through KIFC, bringing its extensive network as an added value for the country. Westbridge Mortgage is a Canadian holding company and mortgage bank. It is the first operating and licensed mortgage bank in Rwanda. As a new entrant it is expected to drive change, growth and transformation of the local mortgage and real estate sector and market which will provide alternative housing finance especially at a time when there is increased demand for homeownership. As an international entity, Westbridge considered proximity to markets, practical adherence to the rule of law, low incidence of corruption, growth potential, and quality of life. And on all accounts Kigali and the KIFC delivered. JurisTax is a Mauritian Trust and Corporate Services Provider (TCSP). JurisTax offers a wide range of services including incorporation of companies, Accounting and Reporting, corporate compliance and taxation, fund administration, Anti-Money Laundering and Countering Financing of Terrorism audits. As Rwanda invests in a comprehensive, modern, transparent, and globally – recognized legal, tax, regulatory and supervisory regime, this will project very clear rules and guidelines for international investors and businesses. Juristax therefore comes in to provide investors with comfort that TCSPs incorporating and maintaining their companies are regulated and increase width to our financial ecosystem by offering new services such as fund administration.
