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The Rwandan Government recently announced the second phase of the Manufacture and Build to Recover Programme. The program aims to fast-track private sector investments in key priority sectors to push economic recovery.
The Rwandan Government recently announced the second phase of the Manufacture and Build to Recover Programme. The program aims to fast-track private sector investments in key priority sectors to push economic recovery.
The first phase of the programme introduced in 2020 included tax breaks and tax credits to businesses to help reduce cost of investment for new manufacturers as well as those planning expansions of the existing operations.
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According to Richard Tusabe, Minister of State in charge of the National Treasury, the first phase of the programme that focused on key priority sectors including manufacturing, agro-processing, and construction succeeded in attracting investments of around $1.8 billion by the end of 2022. The government decided to extend the Programme by two years to accommodate more investors. He added that the extension is expected to double the investments made in the first phase estimated at around $2.5 billion in the next two years. The removal of Value-Added Tax (18 per cent) on imported goods and removal of customs duties on goods imported from African countries outside EAC, as well as tax credits he said will bring down the cost of investment. These incentives along with the incentives under the Economic Recovery Fund will reduce the cost of investment by close to 40 per cent, he added.
