AfDB-EMRC SME Forum Session 7 Kampeta Sayinzoga

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AfDB-EMRC SME Forum Session 7 Kampeta Sayinzoga

  1. 1. The process of Doing Business Reforms – Rwandan ExperienceKampeta SayinzogaPermanent Secretary & Secretary to the TreasuryMinistry of Finance and Economic PlanningRepublic of Rwanda 0
  2. 2. Rwandan reform guiding principles A clear vision, committed leadership & capable institutions reinforcing rather than undermining each other Vision 2020: good governance, private-sector as an engine for growth. Private -Public sector dialogue informs reforms Consensus and shared commitment at Leadership retreats Support of Parliament and Judiciary: e.g. fast-tracking legal reforms Enforce reform measures: e.g. client charters enforced by a gazetted Prime Minister’s Instruction, IMIHIGO performance contracts)
  3. 3. The Milestones 2005 -The law reform commission established to review the existing business laws and recommend efficiency 2007 -Cabinet directs RIEPA to coordinate the regulatory reforms and improve Rwandas ranking in the DB index December 2007 – Doing Business Unit established to coordinate the national task force of Doing Business March 2008, 4 commercial courts established August 2008 Rwanda Development Board is created – merging 8 institution to fast track economic development September 2008, DB 2009 Rwanda jumps 10 positions and the results generates reform momentum The National Taskforce targets to move to a double digit position in 2010 report- Identifies opportunities for short and medium term reforms The 2010 report results (Top global reformer) inspires reforms across the whole the government The 2011- results shifts our focus beyond DB indicators
  4. 4. DB indicators: to inspire and sustain reforms across the board RWANDAS PERFORMANCE IN DOING BUSINESS 2008-2011 DB 2008 DB 2009 DB 2010 DB2011Rwanda Ranking 150th 139th 70th 58thStarting a Business 71 64 11 9Dealing withconstruction permits 125 89 89 82Employing Workers 102 113 30Registering property 138 59 38 41Getting credit 141 147 61 32Protecting Investors 168 171 27 28Paying Taxes 54 58 60 43Trading Across Borders 170 171 170 159Enforcing Contracts 46 48 40 39Closing a Business 178 181 183 183
  5. 5. “Starting a Business” reforms• Reduced from 9 procedures involving over 7 institutions taking 16 days to 1 procedure in 24 hours• Passed a new company’s law• Creating a one-stop shop for all registration ;merging procedures and eliminating unnecessary ones• Reduced fees from $US400 for registration to $US25• Introduced free online registration of companies• As a result, register average of 6000 businesses a year which use to be a five year average before reforms• Reduced cost of compliance benefited most the SMEs
  6. 6. Registering Property Replaced 6% property transfer fees to a flat low fee of $US 4 Reduced from 5 steps to 2 steps Cut down on number of documents for transfer of land Started a registration of land exercise countrywide to facilitate formal ownership and transfers Newly introduced electronic registration of land
  7. 7. Construction permits Started a one-stop shop for construction permits, which includes agencies for environment, water, electricity and local govt Cut from 14 procedures to 6 taking 98 days instead of almost 200 days Streamlined fees structure which were previously scattered and unpredictable The centre handles projects worth $US 500mio a year
  8. 8. Other areas Passed new labour law to ease employing workers indicator Passed insolvency law to facilitate closing a business Streamlined procedures, cut documents and time for paying taxes and trading across borders Introduced 24 hours border posts, one border posts with neighboring countries Introduced commercial courts that have made it possible to resolve disputes in 3 months
  9. 9. DB implementation framework PRESIDENT Prime Minister DB steering committee DB UNIT TF on Paying taxes Dealing with Getting Legal and trade construction Registeringstarting a property credit taskforce logistics permitsbusiness
  10. 10. Lessons to share High level support- is critical Reform boldly and broadly – reforms cannot happen without pragmatism, don’t wait for a perfect start- perfection is achieved through work in progress. Keep on identifying the next binding constraint-reform in series. Streamline and then automate- eg one stop center for company registration, National land center Private sector engagement is key
  11. 11. THANK YOU

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