Kigali International Financial Centre - 5 things you need to know

Kigali International FinancialCentre (KIFC) has been in the news in recent months with huge expectations on its role in the countrys 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 Financial 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 at Rwanda Finance Limited, KIFC is a concentration of financial services, not a physical place. “It is made up of institutions like banks, providers of corporate services such as lawyers and accountants, private investors and family offices, financial sector regulators and the Registrar of businesses in Rwanda, among other stakeholders”, he said. What is the role of Rwanda Finance Limited? Rwanda Finance Limited (RFL) is a private agency whose responsibility is to promote and develop the Kigali International Financial Centre. Rwanda Finance’s Limited mission is to work with industry players within the financial services sector, understand their needs, challenges, and then engage with policy formulators to address them. Rwanda Finance also leads skills-development for the sector. What are the ongoing tasks to set up KIFC? To achieve the desired ambitions of 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, compliant and attractive for investments, setting up an efficient and stable tax policy, as well as developing a skilled workforce. Other key factors 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 alternatives for mobilizing capital and reducing over-reliance on traditional avenues. Like in other countries that have developed IFCs such as Singapore, it will also lead to an increase in the quality of jobs and specialized skills development, as well as additional tax revenues for 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 businessperson, look nowhere 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 at Rwanda Finance, added that there are often misperceptions that international financial 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, here in Rwanda,” he said.

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Kigali International Financial Centre - 5 things you need to know