Rwanda WT/TPR/S/129 
 Page 11 
 
 
II. TRADE AND INVESTMENT REGIMES 
(1) INSTITUTIONAL FRAMEWORK  
1. The fifth Constitution of the Rwandese Republic  was adopted by referendum on 26 May 2003 
and published in the Official Gazette on 4 June 2003.  It establishes the separation of powers, 
guarantees fundamental rights, recognizes multiparty rule and prohibits political organizations from 
identifying themselves on the basis of race, ethnic, tr ibal or clan origin, region, sex, religion or any 
other consideration that may give rise to discriminat ion.  The principal aim of the Constitution is to 
achieve greater democracy and diminish the risk  of another genocide.  The first democratic 
presidential election since the 1960s took place on 25 August 2003 and the first multiparty legislative 
election from 29 September to 1 October 2003.1 
2. Legislative power is vested in a Parliament c onsisting of a Chamber of Deputies and a Senate.  
The Chamber of Deputies is composed of 80 members, as follows:  53 are elected by direct universal suffrage through a secret ballot with closed-list propor tional representation;  24 seats are reserved for 
women (two from each province and the city of Kiga li) elected by the district, town and Kigali city 
councils and the executive committees of women's or ganizations;  two members are elected by the 
National Youth Council and one by th e Federation of the Associations of the Disabled.  All members 
of the Chamber of Deputies are elected for a five-year term. 
3. The Senate is made up of 26 members serving an eight-year term (non-renewable except in 
the case of former heads of State), at least 30 per cent of whom must be women, and of former heads of State on request to the Supreme Court.  Twelve of the 26 Senators are elected through secret ballot 
by the executive committees of the sect ors and the district and town councils;  eight are appointed by 
the President of the Republic (with mandatory  representation of Rwanda's traditionally most 
disadvantaged community);  four are designated by the Forum of Political Organizations;  and two are 
elected by the academic staff of the country's uni versities and other public or private higher learning 
institutions. 
4. Executive power is vested in the President of th e Republic (who is also the Head of State) and 
the Government.  The President and the Prime Minist er may not belong to the same political party.  
The President is elected by direct universal suffr age (through secret ballot on a relative majority of 
votes cast) for a term of office of seven years (rene wable once only).  The Cabinet is made up of the 
Prime Minister, Ministers, Secretaries of State and such other members as may be designated by the President.  The Prime Minister is appointed by the President of the Republic.   The other Cabinet 
members are appointed by the President on the Prim e Minister's recommendation.  They are selected 
among the various political organizations, having regard  to the distribution of seats in the Chamber of 
Deputies and without prejudice to the selection of  independent candidates not belonging to any 
particular party.  The majority political party in the Chamber of Deputies may not hold more than 50 per cent of government seats. 
5. In the process of obtaining information and exercising oversight of government action, 
members of the Senate may address oral or written questions to the Prime Minister, to which responses are provided either by the Prime Minister in person or through the Ministers concerned.  
The Senate is also empowered to set up commissions of inquiry, but may not conduct interpellation or 
introduce a motion of censure.  The Chamber of Deputies may challenge the responsibility of the 
                                                     
 
1 The promulgation of the Constitution by the Presid ent of the Republic marked the end of the 
transition period.  Ins titutions set up during the trans ition period remained in place until the establishment of the 
corresponding institutions provided for in the new Cons titution.  Only the renewal of the judiciary is still 
pending.  WT/TPR/S/129 Trade Policy Review 
Page 12 
 
 
Government as a whole or of individual Cabinet members through a censure motion.  The motion 
must be signed by at least one fifth of the me mbers of the Chamber where it involves a Cabinet 
member or by at least one third where it involves the Government as a whole;  it is passed through secret ballot by a two-thirds majority of the member s of the Chamber.  A vote against the Government 
as a whole entails the latter's resignation, to be tende red to the President of the Republic by the Prime 
Minister. 
6. The Prime Minister may challenge the responsib ility of the Government before the Chamber 
of Deputies through a vote of confidence in respect  of approval of a government programme or the 
adoption of legislation.  Withdrawal of confidence requires a two-thirds majority vote of the members 
of the Chamber.  A no-confidence vote entails th e resignation of the Government, which the Prime 
Minister must tender to the President of the Republic within 24 hours. 
7. The President of the Republic may – only once during his term of office and after consulting 
the Prime Minister, the Presidents of both chambers of parliament and the President of the Supreme 
Court – dissolve the Chamber of Deputies.  The Senate may not be dissolved. 
8. Judicial powers are exercised by the ordinary courts (the Supreme Court, the High Court of 
the Republic, the provincial and Kigali city courts, and the district and town courts) and the special 
courts (the Gacaca  and the military courts).
2  All the ordinary courts except the Supreme Court may 
include chambers with special ju risdiction or independent chambers.  No provision is made for the 
establishment of extraordinary courts.  For the time being, trade disputes are heard by the courts of 
first instance.  According to the authorities, the forthcoming reform of the judiciary will provide for 
the provincial courts and the Kiga li, Butare and Ruhengeri courts to comprise one chamber with 
special jurisdiction in respect of trade and fiscal  matters and another competent to hear cases 
involving social matters. 
9. Districts and towns have legal personality and enjoy administrative and financial autonomy.  
A National Dialogue Council, made up of the Preside nt of the Republic and five representatives of 
each district and town council, d esignated by their peers, discusses inter alia  matters relating to the 
State of the Nation, local authority and national unity.  An Ombudsman is entrusted, among other 
tasks, with the responsibility of liaising between the country's citizenship and public or private 
institutions and services;  preventing and combati ng injustice, corruption and related offences in 
public or private services;  and receiving and ex amining complaints by individuals and private 
organizations against public or private agents or services, and drawing the authorities' attention to 
those complaints with a view to reaching a satisfactory settlement.  The Ombudsman is not 
empowered to intervene in the investigation or judgment of court cases but may bring complaints 
submitted to his attention before the cour ts or services conducting the investigation. 
(2) POLICY FORMULATION AND IMPLEMENTATION  
10. Policy is framed and implemented through legi slation.  Every Deputy and the Council of 
Ministers may conjointly propose laws and amendments thereto.  Draft laws are put before the two 
chambers and voted both article-by-ar ticle and as a whole.  Ordinary laws are adopted by an absolute 
majority and organic laws by a three-fifths major ity of attending members of each chamber.  Any law 
the adoption of which would entail a fall in nati onal revenue or increased government expenditure 
must be accompanied by a proposal for raisi ng revenue or achieving equivalent savings. 
                                                      
2 The traditional Gacaca  courts, involving the municipal councils, are responsible for prosecuting and 
judging the crime of genocide and other crimes against humanity committed between 1 October 1990 and 31 December 1994 (except those falling with in the jurisdiction of other courts). Rwanda WT/TPR/S/129 
 Page 13 
 
 
11. Within its spheres of competence, the Senate receives draft laws only once they have been 
adopted by the Chamber of Deputies, with th e exception of the organic law on the internal 
organization of the Senate.3  In the event of disagreement between the two chambers, a joint 
commission has the task of proposing a compromise.  Failing consensus by the two chambers on the 
compromise solution put forward, the draft la w or bill is returned to the initiator. 
12. Laws are promulgated by the President of the Re public within 15 days of the receipt by the 
Government of the final text adopted in Parliament .  Before a law is enacted, however, the President 
may refer the text back to Parliament for a second re ading.  If Parliament then adopts that same law 
by a two-thirds majority in the case of ordinary le gislation and a three-quarters majority in the case of 
organic laws, the President must promulgate the la w within the scheduled tim e-frame.  Laws adopted 
in Parliament are countersigned by the Prime Minist er and the Ministers and enacted by the President 
of the Republic;  they take effect from their date of publication in the Official Gazette and, in the 
event of an emergency, once they have been posted up in the provincial capitals. 
13. In the event that Parliament should be unable to convene, the President of the Republic may 
issue decree-laws adopted by the Council of Minister s that have the same ef fect as ordinary laws.  
Decree-laws must be confirmed by Parliament at  the session following their adoption, failing which 
they lose their binding effect. 
14. The Government's trade policy is laid down by th e Ministers for Foreign Trade and Finance.   
Depending on the matters involved, trade policy is coor dinated with other relevant ministries, such as 
the Ministry of Agriculture, and other government institutions, such as the National Bank of Rwanda 
(NBR), the Rwanda Revenue Authority and the Rwan da Investment Promotion Agency (RIPA).  The 
private sector too is consulted in meetings  held on the initiative of both parties. 
15. A Foreign Trade Board is due to study and pr opose procedures for the implementation of 
general foreign trade and licensing policy;  give its views on the rules and procedures applied and 
suggest corrective measures;  express its views on annual and pluriannual impor t and export forecasts 
and propose adjustments;  examine and propose expo rt promotion measures;  give its opinion on any 
issue relating to foreign trade, either on its own initi ative or at the request of the Minister for Foreign 
Trade or the Governor of the NBR;  and study que stions relating to region al integration and other 
international economic matters.4  A Presidential Economic Council,  without formal ties to the 
ministries, advises the President on such issues.  Ac cording to the authorities, the private sector is 
consulted on an informal but regular basis through  the Public/Private Partnership Forum headed by 
the Chairman of the Rwandan Private Sector Federation. 
16. At the Government's suggestion and following consultation with the Supreme Court, the 
President of the Republic may submit to referendum any matter of national interest and any draft law 
(ordinary law, organic law, or law ratifying a treaty) that may affect the operation of State institutions.  
The President must enact any law adopted by refere ndum within a period of eight days from the date 
on which the results are made public. 
17. The President of the Republic negotiates and ratifies international treaties and agreements.  
Parliament is informed once the pr ocess is completed.  However, th e ratification of certain treaties, 
                                                      
3 In the legislative sphere, the Senate is empowered to adopt inter alia  laws relating to the revision of 
the Constitution;  organic laws;  laws relating to the es tablishment, modification, operation and dissolution of 
State or parastatal institutions, and land organization;  and laws relating to international treaties and agreements.   
The Senate's advisory opinion is sought before final adoption of the Budget by the Chamber of Deputies. 
4 Law No. 34/91 of 5 August 1991 amending Law No. 22/1989 of 23 December 1989 on the 
Organization of Foreign Trade.  The Board is still not in operation. WT/TPR/S/129 Trade Policy Review 
Page 14 
 
 
such as trade treaties, treaties or agreements relati ng to international organizations and those involving 
State finances, is subject to prior authorization by Parliament. 
(3) MAIN LAWS AND REGULATIONS  
18. Rwandan law establishes the primacy of intern ational legal instruments, including the WTO 
Agreements, over domestic legislation.  Duly ratifie d or approved internationa l treaties or agreements 
rank above domestic legislation once they have been published in the Official Gazette.  In addition to 
international treaties and agreements, in accordance  with the hierarchy of laws the Constitution is 
followed, in decreasing order, by organic laws, or dinary laws, decree-laws, presidential orders, Prime 
Minister's orders, ministerial orders, instructions5, and regulations. 
19. In the trade sphere proper, domestic and fo reign trade are governed by a variety of 
instruments.  Domestic trade is regulated by Law No. 35/91 of 5 August 1991, as amended and 
supplemented by Law No. 15/2001 of 28 January 20 01.  The Law establishes free trade and enshrines 
the principles of pricing freedom and consultation with the private sector in the event of market 
failure.  It also contains provisions governing competition (Chapter III(4)(ii)). 
20. Foreign trade is regulated by Law No. 22/19 89 of 23 December 1989, as amended by Law 
No. 34/91 of 5 August 1991.  The Law establishes a Foreign Trade Board responsible for studying 
and giving views on foreign trade issues;  laying down rules pertaining to mandatory import and export documents;  drawing up a list of imports exempt from formalities imposed by the Law;  and defining products that may not be imported.  It also provides penalties in the event of infringement, including import over-invoicing and export under-invoicing. 
21. Customs legislation comprises a number of texts which cover the customs system, the various 
customs schemes and border taxation (excise du ties, consumption tax and customs duties) 
(Chapter  III(2)(iv) and (v)).  Table II.1 below lists th e main trade-related legal instruments in force in 
Rwanda. 
Table II.1 
Main trade laws and regulat ions in force, February 2004  
Area Legal instrument 
Domestic trade and 
competition Law No. 35/91 of 5 August 1991 on the Organization of Domestic Trade  
 Law No. 15/2001 of 28 January 2001 amending and suppl ementing Law No. 35/91 of 5 August 1991 on the 
Organization of Domestic Trade  
 Ministerial Order No. 22/MINICOM/91 of 16 October 1991 establishing the list of products and services 
subject to price fixing or the profit margin regime 
 Ministerial Order establishing the list of sensitive products and services s ubject to price fixing 
 Ministerial Order No. 004/15.01/82 of 15 November  1982 enacting Law No. 31/1982 of 13 September 1982 
 Ministerial Order No. 6/12/04/72/Commint of 30 March 1972.  Locations where street vending is prohibited. 
Foreign trade Law No. 22/1989 of 23 December 1989 on the Organization of Foreign Trade  
 Law No. 34/91 of 5 August 1991 amending Law No. 22/ 1989 of 23 December 1989 on the Organization of 
Foreign Trade  
Customs duties Law No. 25/2002 of 18 July 2002 establishing the import tariff 
 Law No. 42/2002 of 31 December 2002 on the import tariff for products on the supplementary negative list  
Customs system  Law of 17 July 1968 on the Customs System (subsequently amended) 
 Law No. 04/2000 of 19 April 2000 amending the La w of 17 July 1968 on the Customs System 
 Table II.1  (cont'd) 
 
                                                      
5 These are issued by authorities designated by la w, such as the Governor of the NBR and the 
Commissioner General of the Rwanda Revenue Authority. Rwanda WT/TPR/S/129 
 Page 15 
 
 
Area Legal instrument 
 Ministerial Order No. 08.09/FIN 4 of 27 July 1968 implementing the Law on Customs Operations, as 
amended 
VAT Law No. 40/2002 of 31 December 2002 
 Law No. 06/2001 of 20 January 2001 introduc ing value-added tax, as amended 
 Ministerial Order No. […] of […] laying down directives and procedures  for applying value-added tax (VAT) 
 Law No. 23/2002 of 10 July 2002 amending Law No. 06/2001 
 Law No. 17/2002 of 10 May 2002 
Special tax on sugar  Law No. 41/2002 of 31 December 2002 
Privatization Law No. 2 of 11 March 1996 on Priva tization and Public Investment 
 Presidential Order No. 08/14 of 3 May 1996 establishing the National Privatization and Public Investment 
Commission  
Government 
procurement Decree of 25 February 1959 
Royal Order of 26 June 1959, a nd general terms and conditions 
Intellectual property Legislative Order No. 41/63 of 24 February  1950 on unfair competition and enforcement  
 Law of 25 February 1963 on Patents  
 Ministerial Order No. 5/10/67 of Ma y 1967 implementing the Law on Patents 
 Law of 25 February 1963 on Trademarks 
 Ministerial Order No. 3/10/67 of 18 May 1967 implementing the Law on Trademarks 
 Law of 25 February 1963 on Industrial Designs 
 Ministerial Order No. 4/10/67 of 18 May 1967 im plementing the Law on Industrial Designs  
 
Source: Information provided by the Rwandan authorities. 
(4) TRADE POLICY OBJECTIVES  
22. Trade policy is a component of Rwanda's economic  policy.  Promotion of the country's social 
and economic development and povert y reduction are its long-term goa ls.  These are defined in the 
"Rwanda Vision 2020" programme aimed at raising Rw anda to middle-income status over a period of 
20 years.  In addition to poverty reduction, th e objectives include sound political and economic 
governance;  transformation of the rural economy;  development of services (primarily tourism), 
industry (mainly textiles) and human resources;  de velopment and promotion of the private sector;  
and regional and internatio nal economic integration. 
23. To attain these objectives, Rwanda plans to accel erate its economic growth;  to stimulate its 
economy through programmes geared towards disadvantag ed areas and social strata;  to promote food 
security by using quality seeds and fertilizer and improvi ng storage facilities;  to diversify its exports;  
to encourage its small- and medium-sized enterprises;   and to make more effective use of its natural 
and human resources.  It recognizes that development of the private sector calls for more extensive 
liberalization, privatization and strengthening of  the partnership between the public and private 
sectors. 
24. Rwanda believes that the multilateral trading system will contribute towards the country's 
international integration.  It intends to seize the opportunity provided by the establishment of the 
customs union of the Common Market for Eastern and Southern Africa (COMESA) in order to 
continue liberalizing its trade regime.  In Ja nuary 2004, Rwanda entered the COMESA free-trade 
area, having completed the elimination of duties on  imports from other member countries.  This now 
enables it to obtain raw materials and other inputs at  lower cost and to enjoy broader market access.  
Rwanda has also applied for membership of th e Southern African Development Community (SADC) 
in order to improve prospects for its agricultural e xports.  It considers that experience at the regional 
level will provide good preparation for more effec tive participation in the world market, without 
regional opportunities hampering global prospects for the time being.  Rwanda also intends to take WT/TPR/S/129 Trade Policy Review 
Page 16 
 
 
advantage of the benefits afforded by the ACP-EU Agreement and the African Growth and 
Opportunity Act (AGOA) through investment promoti on efforts.  It has, moreover, initiated the 
process for joining the East African Community (EAC). 
(5) TRADE AGREEMENTS AND ARRANGEMENTS  
(i) World Trade Organization (WTO) 
25. Rwanda has been an original member of the WTO since 22 May 1996, having been a 
contracting party to the GATT since 1 January 1966.  As a least developed country (LDC), Rwanda benefits from more extensive special and differen tial treatment than that given to developing 
countries, in particular longer transitional peri ods and less onerous commitments.  Nevertheless, 
Rwanda's insufficient capacities have hampered its  active participation in the multilateral trading 
system and have delayed its implementation of the WTO Agreements.  The result is that it has been 
unable to make the best use of the opportunities afforded by the system.  Rwanda's technical 
assistance needs are outlined  in section (7) below. 
26. Rwanda's notifications to the WTO are limited to three areas (Table II.2).  Rwanda has not 
signed any of the WTO plurilateral agreements and is not an observer to any of these agreements. 
Table II.2 
Status of WTO notification obligations, June 2003 
WTO Agreement  Obligation  Periodicity Symbol of latest notification  
Anti-dumping (Article 16.4) Report Semi-annually  G/ADP/N/41/Add.1,  19 October 1998 
Customs valuation (Annex III, 
para. 1) Extension of the delay for 
implementation of the Agreement  At the end of the period of 
delay granted to developing 
and least developed countries G/VAL/W/84, 12 June 2001 
Subsidies and countervailing 
measures (Article 25.11) Report Semi-annually G/SCM/N/40/Add.1, 20 October 1998 
 
Source:  WTO documents. 
 
27. Addressing the Cancún Ministerial Conference,  Rwanda voiced concern over the slow 
progress in the negotiations on agriculture.  It unde rlined the importance of basing its own economic 
development on integration in the multilateral trad ing system in order to achieve sustainable 
development.  Rwanda urged the international comm unity to move forward in establishing a fairer, 
more equitable economic partnership.  It also asked for a commitment by the developed countries to 
eliminate all export subsidies and remove trade ba rriers, and called on the developing countries to 
make the necessary sacrifices to promote and deve lop South-South trade.  It underscored the 
importance of liberalizing trade in services in the in terest of economic development, and of the free 
movement of persons in ac hieving such liberalization.6   However, Rwanda believes that the primary 
obstacle to its full participation in the multilateral sy stem is a lack of pers onnel qualified to negotiate 
and monitor the ongoing negotiation process. 
(ii) Regional agreements 
(a) Overview 
28. Rwanda is a member of the Common Market for Eastern and Southern Africa (COMESA), 
the Economic Community of Central African States  (ECCAS), the Economic Community of the Great 
                                                      
6 Statement by the Rwandan Minister of Commerce, Industry, Investment Promotion, Tourism and 
Cooperatives, Ministerial Conference, Fifth Session, Cancún, 10-14 September 2003.  WTO document WT/MIN(03)/ST/137 of 13 September 2003. Rwanda WT/TPR/S/129 
 Page 17 
 
 
Lakes Countries (CEPGL), the Regional Integration Facilitation Forum (RIFF), the Organization for 
the Management and Development of the Kagera River Basin (KBO), the African Union (AU) and 
the African Economic Community (AEC).  As re gards trade issues, only two of these regional 
agreements (RIFF and COMESA) are truly operational. 
29. Rwanda has applied to join the Southern African Development Community (SADC), whose 
member countries (particularly South Africa) offe r favourable prospects for Rwanda's agricultural 
exports, and the East African Community (EAC) in order to diversify its export destinations.   
Rwanda expects to derive economic benefits from COMESA membership, as a result of broader 
market access and increased investment in its economy. 
(b) Common Market for Eastern and Southern Africa (COMESA)7 
30. The COMESA aims to deepen and expand the integration process for member countries by 
adopting general measures to liberalize trade, wh ich include the removal of all tariff and non-tariff 
barriers and the adoption of a common external ta riff;  free movement of capital, labour and goods, 
and the right of establishment in the region;  the adoption of a common set of standards, technical 
regulations, quality control procedures, certific ation systems, and sanitary and phytosanitary 
regulations;  tax harmonization (including VAT and excise duties), and provisions on industrial 
cooperation in spheres such as company law, intell ectual property and investment;  implementation of 
a harmonized competition policy;  and the establishment of a monetary union.8  The COMESA has 
been notified to the WTO under the Enabling Clause. 
31. The COMESA should therefore lead to a customs and monetary union.  Its free-trade area was 
set up on 1 November 2000;  nine of its member countries were able to meet this deadline9, whereas 
Rwanda has been given a waiver to allow it to a pply an 80-per cent reduction of its MFN tariffs on 
exports from other COMESA members.  Rwanda in creased the reduction to 90 per cent in 2003, and 
on 1 January 2004 it entered the COMESA free-trad e area.  The customs union should come into 
effect at the end of 2004, with a common external ta riff (CET) comprising four rates:  0, 5, 15, and 
30 per cent (these rates apply to capital goods, ra w materials, intermediate goods, and finished 
products, respectively).  Rwanda has been applyi ng these four rates since the end of August 2002 
(Chapter III(2)(iv)(b)). 
32. The granting of tariff preferences is subject to regulations on rules of origin.  The COMESA 
lays down four criteria for determining the right to  receive preferential treatment:  the goods must be 
wholly produced in the region, without any raw mate rials of foreign origin;  or the imported content 
must not exceed 60 per cent of the c.i.f. value of  all the materials used in production;  or the ex-
factory value added must account for at least 35 per cent of the price of the finished product10 or the 
value added must be at least 25 per cent if the fi nished good is deemed "particularly important" for the 
                                                      
7 At the end of 1994, the Preferen tial Trade Area for Eastern and So uthern African States became the 
COMESA.  In addition to Rwanda, the other members are Angola, Burundi, Comoros, Democratic Republic of 
the Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Namibia, Seychelles, 
Sudan, Swaziland, Uganda, Zambia and Zimbabwe.  Lesotho, Mozambique and Tanzania have withdrawn. 
8 Further details can be found at http//:www.comesa.org/obj.htm. 
9 The nine members are Djibouti, Egypt, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia and 
Zimbabwe.  Goods transactions among members of the COMESA free-trade area  are duty free, without 
exception. 
10 "Value added" is defined here as being the difference between the ex-factory price of finished 
products and the c.i.f. value of the inputs imported from countries that are not COMESA members.  The 
minimum level of value added was brought down from 45 to 35 per cent in 2000.  Egypt and Uganda, however, continue to apply the 45-per cent threshold. WT/TPR/S/129 Trade Policy Review 
Page 18 
 
 
development of a member State (in accordance with th e previously defined list of products);  or the 
processing implies a change in the tariff heading. 
33. The COMESA's competition policy is about to be introduced and will be applied as soon as 
the Council of Ministers has adopted the releva nt provisions.  The draft provisions prohibit inter alia 
restrictive business practices;  abuse of a dominant position;  agreements fixing prices;  collusive 
tendering and bid-rigging;  market or consumer alloca tion agreements;  allocati on by quota as to sales 
and production;  collective action to enforce arra ngements;  concerted refusal to purchase goods or 
services from a potential supplier, or to supply goods or services to a potential purchaser;  and collective denial of access to an arrangement or as sociation which is crucial to competition.  The 
provisions also lay down merger and acquisitio n control procedures and establish mandatory 
notification of annual turnover or assets in the re gion exceeding a certain threshold (yet to be 
determined).  A Competition Commission is establishe d, with authority to act on its own initiative or 
upon application by any person or consumer organization. 
34. The monetary harmonization programme is to be implemented in four stages between 1992 
and 2025.  The last stage should result in a full-fl edged monetary union in which there will be either 
permanently fixed exchange rates or a single currency;  full harmonization of the member States' 
economic, budgetary and monetary policies;  full integr ation of the financial structure;  a pooling of 
exchange reserves;  and the establishment of a single monetary authority.  A coordination body 
composed of experts from central banks and minist ries of finance in the region has been set up to 
oversee implementation of the measures and ensure that the harmonization process makes progress 
towards monetary union. 
35. Several institutions have been established in or der to facilitate the de velopment of COMESA 
members.  The Eastern and Southern African Tr ade and Development Bank (PTA Bank) finances 
foreign trade transactions and projects by public or private investors resident in one of the member 
States.  In 2000, Rwanda was granted a US$2.6 m illion loan for the rehabilitation and expansion of a 
sugar factory (Kabuye Sugar Works SARL);  in 2002,  it received a loan of US$1.29 million to build 
the head office of the Bank of Commerce, Developm ent and Industry in Kigali;  and in 2001, trade 
financing was provided for the import of raw ma terials and capital goods.  The COMESA clearing-
house has become less important following the libera lization of the exchange regime in the majority 
of member countries.  Its role has changed and it now focuses mainly on enhancing the efficiency of 
clearing operations in order to supplement the services provided by commercial banks;  to give 
business persons a form of insurance against political risks in intra-regional trade;  and to facilitate 
harmonization of monetary and budge tary policies within the region. 
36. The PTA reinsurance company (ZEP-RE) helps to  foster the development of insurance and 
reinsurance in the region.  Rwanda has signe d the Agreement establishing the ZEP-RE, and the 
Rwandan Government and the Rwanda National In surance Company (SONARWA) are shareholders.  
The African Trade Insuran ce Agency (ATI) was set up in August 2001 to boost investors' confidence 
by providing cover against political risks.  The ATI is a COMESA creation, but all African Union 
(AU) member States may belong to it.  The COMESA Court of Justice came into operation in 1998 and has jurisdiction to adjudicate on all matters which may be referred to it under the COMESA Treaty.  Rwanda has not been involved in any dispute within this framework so far. 
37. The Protocol on free movement of persons is to be implemented in several stages.  The first 
stage involves the abolition of visa requirements, whic h was to enter into force in 2000;  the majority 
of countries, including Rwanda, no longer require vis as for citizens of other COMESA countries.  For 
Rwanda, the COMESA measures to facilitate m ovement of persons and transit of goods are 
particularly important because of the country's landlocked situation. Rwanda WT/TPR/S/129 
 Page 19 
 
 
38. According to the authorities, the initial phase of  Rwanda's integration into the COMESA has 
had the following impact on the domestic economy:  While some products have become available at 
low prices to the consumer, there h as also been a loss in customs re venue (approximately RF 3 billion 
between January and September 2003)  and a slowdown in activity in certain local industries as a 
result of competition from products from other COMESA  member countries.  Rwanda's expectations 
regarding the COMESA are the removal of non-tari ff barriers, free movement of goods, persons and 
services, and the transfer of technology. 
(c) Economic Community of Central African States (ECCAS) 
39. In addition to Rwanda, the following are me mbers of the ECCAS:  Angola, Burundi, 
Cameroon, Central African Republic, Chad, Democra tic Republic of the Congo, Equatorial Guinea, 
Gabon, Republic of the Congo, and Sao Tomé and Principe.  The ECCAS was established in 1985, 
but the integration process has been at a stands till since 1992 because of peace and security problems 
in the region. 
(d) Economic Community of the Great Lakes Countries (CEPGL) 
40. The Economic Community of the Great Lake s Countries was established in 1975 and is 
composed of Burundi, the Democratic Republic of the Congo and Rwanda.  Joint entities were set up, 
including a joint bank, an agricultural and anim al research institute, and an energy generating 
company (energy from the Great Lakes).  The signa tories also agreed to apply reciprocal trade 
preferences and drew up a list of products eligible for such treatment.  As a result of the crises in the three countries, the CEPGL is no longer in opera tion.  Consequently, the signatories, including 
Rwanda, have been unable to apply the preferential treatment agreed. 
(e) Regional Integration Facilitation Forum (RIFF) 
41. The Regional Integration Facilitation Forum, fo rmerly known as the Cross-Border Initiative, 
is neither a permanent structure nor a new regional organization.  It focuses chiefly on creating the 
conditions needed for effective implementation of  the participating countries' various regional 
integration initiatives and on ensuring their consistency.
11  The RIFF was developed in close 
consultation with the region's economic integration organizations.  As a forum, it is intended to 
reinforce and supplement the activities of these organi zations.  It seeks to integrate the economies of 
participating countries by facilitating private inv estment, trade and payments among these countries, 
as well as cross-border movement of labour and capital.  A number of eastern and southern African and Indian Ocean countries belong to the Forum.
12  The RIFF was established in 1992 and is 
sponsored by the European Commission, the Intern ational Monetary Fund, the World Bank, and the 
African Development Bank.  It does not have any regional secretariat and operates on a voluntary 
basis. 
(f) Organization for the Management and Develo pment of the Kagera River Basin (KBO) 
42. The Organization for the Management and De velopment of the Kagera River Basin was 
established in 1977.  Its task is to address all matt ers pertaining to activities to be developed in the 
Kagera River Basin, including water and hydropower  resources development;  the provision of water 
supplies and related services;  agriculture and livestoc k development, forestry, and land reclamation;  
mining;  transport and communications;  trade;  tourism;  wildlife conser vation and development;  
                                                      
11 The RIFF is open to COMESA , SADC, EAC and Indian Ocean Co mmission member countries. 
12 The current participating countri es are Burundi, Comoros, Kenya, Madagascar, Malawi, Mauritius, 
Namibia, Rwanda, Seychelles, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. WT/TPR/S/129 Trade Policy Review 
Page 20 
 
 
fisheries;  industrial development;  and protection of the environment.13  Its members are Burundi, 
Rwanda, Tanzania and Uganda.  The KBO is not operational in practice but negotiations are under 
way to revive it. 
(g) African Union (AU) and African Economic Community (AEC) 
43. The African Union came into being on 8 July 2002 as the successor to the Organization of 
African Unity (OAU).14  The OAU Treaty had been signed by 30 African countries on 25 May 1963.  
The objective of the 1991 Treaty of Abuja (Nigeria) is to establish an African Economic Community, 
but this is not yet in operation. 
(iii) Bilateral agreements and arrangements 
44. Rwanda has concluded bilateral framework trade agreements to facilitate movement of goods 
and persons with Burundi, the Democratic Republic  of the Congo, Kenya, Mauritius, South Africa, 
Tanzania, and Uganda. 
(iv) Other agreements and arrangements 
(a) The Cotonou Agreement and the "Everything But Arms" initiative 
45. Rwanda has signed the Cotonou Agreement (whi ch replaced the Lomé Convention) between 
the European Union (EU) and 77 African, Caribbean, and Pacific countries (ACP).  This Agreement 
renews most of the non-reciprocal trade preferences already afforded by the EU to the ACP countries.  
At the Doha Ministerial Conference, the WTO Memb ers granted the waiver, requested by the parties 
to the Cotonou Agreement, fro m commitments under Article I.1 of the GATT 1994 (MFN treatment) 
until 31 December 2007.  Before then, the parties sh ould conclude new trade arrangements consistent 
with the WTO Agreements.  This should lead to th e gradual elimination of barriers to trade among the 
parties and strengthen their cooperation in all tr ade-related areas, particularly through the 
establishment of a free-trade area within a period of 12 years, i.e. by the year 2020. 
46. In September 2002, the EU initiated negotiations with ACP countries in order to conclude 
bilateral partnership agreements or agreements  with various regional groups (regional economic 
partnership agreements), which should come into effect at the latest by January 2008.  These 
agreements should be based on reciprocal liberalizat ion so that, in principle, Rwanda, like the other 
ACP countries, should gradually grant preferentia l access for the EU's exports.  Nevertheless, a 
special clause in the Cotonou Ag reement gives LDCs the right not  to enter into a reciprocal 
partnership agreement, in which case the country in  question would receive the preferences granted by 
the EU under the "Everything But Arms" initiative.   This initiative was launched in March 2001 and 
grants duty- and quota-free access for all products imported from LDCs, with the exception of arms.  
A timetable has been set for applying preferen tial treatment to sugar, rice and fresh bananas.15 
                                                      
13 Agreement for the Establishment of the Organiza tion for the Management and Development of the 
Kagera River Basin, signed at Rusumo on 24 August 1977.  Available at: http://faolex.fao.org/docs/texts/ 
mul16016.doc.  
14 Almost all African countries belong to the AU. 
15 See WTO (2001) for further details. Rwanda WT/TPR/S/129 
 Page 21 
 
 
(b) African Growth and Opportunity Act (AGOA) 
47. The African Growth and Opportunity Act gi ves extended preferential access to the United 
States market to Sub-Saharan African count ries which meet certain eligibility criteria.16  At present, 
38 African countries are eligible.  Rwanda became el igible for the general be nefits provided under the 
AGOA on 2 October 2000 and to those pertaining to textiles and clothing on 4 March 2003.  
Rwanda's duty-free exports to the United States were  estimated at US$10,000 in 2002, i.e. less than 
1 per cent of total exports to the US.17 
(c) Generalized System of Preferences (GSP) a nd Global System of Trade Preferences (GSTP) 
48. Rwanda receives GSP treatment from industriali zed countries.  According to the Rwandan 
authorities, almost all exports (handicrafts, mini ng products, coffee and tea) enjoy such treatment.  
Rwanda has not acceded to the GSTP Agreement among developing countries. 
(6) INVESTMENT REGIME  
49. In Rwanda, investment in all sectors is governed  by the Investment Code issued by Law No. 
14/98 of 18 December 1998 establishing the Rwanda Investment Promotion Agency (RIPA).18  The 
RIPA entered into operation in 2000.  It is empow ered to open branches and as of early 2004 should 
serve as a one-stop centre for investors.19  Subject to the provisions of this Law, foreign investors may 
invest in all forms of activity in Rw anda and are granted national treatment.20 
50. To qualify for benefits under the Code, investme nts must be registered with the RIPA.   
Foreigners are required to invest a minimum ca pital of US$100,000 and citizens of Rwanda or of 
other COMESA member countries no less than US$50,000.21  Administrative registration fees amount 
to RF 120,000.  Zero duty-rated imports of plan t, machinery or equipmen t items are exempt from 
sales tax;  otherwise a single flat rate tax of 5 per cen t of the c.i.f. value of the items applies in lieu of 
all duties and taxes that would normally be payable.22 
                                                      
16 In order to benefit under the AGOA, a country mu st make progress towards the establishment of a 
market-based economy, a multiparty syst em and the rule of law, the removal of discriminatory barriers to trade 
and investment by the United States, the protection of intellectual property, combating corruption, protection of human rights and labour standards, and the abolition of certain forms of child labour. 
17 2003 Comprehensive Report on US Trade and Investment Policy Toward Sub-Saharan Africa and 
Implementation of the African Growth and Opportunity Act , The Third of Eight Annual Reports, May 2003, 
available at: http://www.agoa.gov/resources/annual_3.pdf. 
18 Law No. 14/98 of 18 December 1998 establishing the Rwanda Investment Promotion Ag ency, which 
replaces Law No. 21/87 of 5 August 1987 establishing th e Investment Code.  The Inve stment Code is currently 
under revision. 
19 No branches have as yet been opened. 
20 Natural persons from a COMESA member countr y and commercial companie s incorporated under 
the laws of COMESA member countries are regarded as domestic investors.  A commercial company 
incorporated under the laws of Rwanda may be regarded as a foreign investor if over 50 per cent of the company's shares are owned by persons who are not citi zens of Rwanda or of a COMESA member country.  
The same applies to partnerships in which the partnership controlling interest is owned by a person who is not a 
citizen of Rwanda or of a COMESA member country.  In either case, the investment must amount to at least the equivalent of US$100,000 in foreign capital. 
21 Banking institutions also require approval by the NBR.   
22 The RIPA is in the process of bringing its invest ment tax exemption procedures into line with those 
of the Rwanda Revenue Authority. WT/TPR/S/129 Trade Policy Review 
Page 22 
 
 
51. A holder of a certificate of registration is e ligible for common incentives such as the fiscal 
measures provided in Law No. 8/97 of 26 June 1997 on the Code of direct taxes on different profits 
and professional income (as amended and supplemen ted by Law No. 53/2001 of 30 December 2001);  
investment allowances of 30 per cent of the valu e of invested capital during the first year of 
operations;  additional deduction fro m taxable income of 50 per cent of  training, research and product 
development costs;  the right to fully expend th e cost of providing the necessary infrastructure;  
drawback for all duties and taxes paid on raw materi als imported by an exporter operating outside the 
free economic zones, whose access to foreign market s, training, and promoti on and trade exhibitions 
is also facilitated by the Agency;  and export tax exemption.23 
52. The Code guarantees registered investors the fr eedom to externalize funds for the repayment 
of foreign loans or interest on those loans;  paymen ts of dividends to shareholders who are not citizens 
of Rwanda or to Rwandan citizens residing abroad;  payment of royalties or fees in respect of an agreement for the transfer of foreign technology;  payments of emoluments and other benefits to 
foreign staff employed in Rwanda;  externalization of profits or proceeds on disposal of capital assets and of proceeds from the sale of an enterprise fo r foreigners and Rwandan citizens residing abroad. 
53. Registered industrial companies investing at least US$100,000 in Rwanda are automatically 
entitled to three work permits for expatriate staff.   An investment of US$50,000 in capital assets is 
required of enterprises intending to provide profess ional services, such as accountants, architects, 
doctors, engineers and lawyers. 
54. The Code contains special provisions in r espect of investors seeki ng to exploit a "scarce 
resource".
24  In consultation with the relevant ministri es, the RIPA must determine the nature and 
number of available investment opportunities;  set terms and conditions for the exploitation of the 
resource in question;  specify the mechanism to be used by the Agency to select an investor for each 
available opportunity;  and advertise the investment  opportunities.  The final selection is made by a 
team of senior staff from the RIPA and the ministry concerned. 
55. The Code provides further incentives in the case of free economic zones, including corporate 
income tax reduction;  duty-free importation of inpu ts to production;  exemption from all other taxes 
normally levied on businesses operating in Rwanda; a one-stop service;  tax-free externalization of 
funds;  flexibility in the grant of work permits;   exemption from withholding taxes and taxes on 
dividends;  and exemption from duties and sales  tax on locally produced goods and services 
purchased as inputs to production (Chapter III(3)(vi)).25 
56. In the event that the State should take possession of or acquire the rights of an investor in a 
registered enterprise or its assets, or assert a claim of interest in or a right over a property or undertaking, the Code provides for payment, within 12 months, of "adequate" compensation in convertible currency, which may be tran sferred abroad, free of duty and taxes. 
                                                     
 
23 Pursuant to Article 31 of the Code, the Counc il of Ministers may accord additional incentives and 
facilities for projects depending on their nature, national importance, location, or volume of capital investment.  
The Code also maintains all rights and benefits accorded and all obligations imposed under the previous legislation repealed by the Code;  these may be reviewed by the RIPA at the investor's request.  
24 Within the meaning of the Code, scarce resources  are "non-renewable resources or resources which 
renew themselves over a long period of time and whose economic exploitation is, by necessity, restricted to a 
small number of operators including investments in mining, petroleum exploration and production, fishing and 
forestry resources, and provision of utility services  such as power, water and telecommunication". 
25 The law on the establishment and operation of free zones is still under consideration, meaning that no 
such zones exist as yet.  Rwanda WT/TPR/S/129 
 Page 23 
 
 
57. The Code also establishes procedures for the settle ment of disputes between foreign investors 
and the RIPA or the Rwandan State, including ne gotiation and arbitration within the framework of 
bilateral or multilateral agreements on investment protection (the injured party may otherwise also 
lodge a complaint with the competent Rwandan court of first instance)26, or any other international 
procedure, such as that provided under the Convention of 18 March 1965 on the Settlement of 
Investment Disputes between States and Nationals  of Other States, ratified by Rwanda on 
16 July 1979.  A company's registration certificate may specify arbitration procedures.  In the event of 
disagreement on the method or forum for arbitration,  the injured party may apply to the relevant 
Rwandan court of first instance. 
58. Rwanda is also a member of the Mu ltilateral Investment Guarantee Agency. 
(7) TRADE -RELATED TECHNICAL ASSISTANCE  
59. According to the Rwandan authorities, technical assistance is primarily needed to achieve a 
better understanding and hence more effective implementation of the WTO Agreements;  it is also 
necessary to improve negotiating capability.  Rw anda plans to set up a national committee to 
coordinate WTO-related activities at the domes tic level and ensure implementation of the 
Agreements.  At present, the low level of knowledge in this regard and the lack of financial and 
human resources are still preventing the country from r eaping the full benefits of participation in the 
multilateral trading system. 
60. The genocide in 1994 delayed Rwanda's access to technical assistance.  A seminar on export 
promotion was organized and a WTO reference centre was set up in 1998;  the centre did not become 
operational until June 2003.  At the same time, a WTO mission initiated the review of Rwanda's trade 
policy, providing the opportunity for a national trade policy seminar, moderated by the WTO, in Kigali.  Rwanda has also applied to benefit unde r the revised Integrated Framework for Technical 
Assistance and Capacity Building.
27  Today's stable political climat e bodes well for an increase in the 
number and quality of technical assistance activities. 
61. Rwanda's trade-related technical assistance requirements span a number of areas, including 
the implementation of trade agreements;  participat ion in trade negotiations;  formulation of trade 
policies;  supply constraints;  and the in tegration of trade and development policies. 
(i) Implementation of agreements, training and policy formulation 
62. Rwanda's chief areas of concern regarding implementation are customs valuation;  sanitary 
and phytosanitary measures (SPS);  technical barriers to trade (TBT);  competition policy;  and 
TRIPS.  Rwanda needs technical assistance in the following areas:  Harmonization of its laws and 
regulations with WTO principles and rules;  notif ications;  staff training and establishment of the 
necessary institutional structures;  and/or formulatio n of policies which allow greater benefit to be 
derived from implementation of the Agreem ents and minimize any possible costs. 
                                                      
26 Rwanda has signed double taxation agreements with South Africa and Mauritius and an investment 
protection agreement with OPEC. 
27 In order to benefit from the Integrated Framework, set up in 1996 and revised in 2002, countries are 
required to fulfil certain criteria, including the following:  (i) firm commitment by the Government to integrate 
trade into its national development strategy and Poverty Reduction Strategy Paper (PRSP) ;  (ii) the country must 
at least be preparing its PRSP;  (iii) the country must  at least be at the preparatory stage for forthcoming 
meetings of the World Bank Consultative Group or UNDP Round Table;  and (iv) the country must provide a 
conducive operating environment (e.g. infrastructure level, resource base of the World Bank, IMF and UNDP country offices, donor response, an d the pace of domestic reform). WT/TPR/S/129 Trade Policy Review 
Page 24 
 
 
63. Rwanda was granted a waiver allowing it to  delay implementation of the WTO Customs 
Valuation Agreement until 22 May 2001.  It has re quested a three-year extension, arguing the 
inadequacy of resources.  The authorities have drafted a plan of action, specifying that its 
implementation would largely depend on the amount of  technical assistance received, particularly in 
training customs officials in the content and implem entation of the Agreement, including application 
of the transaction value method. 
64. Other specific needs have been identified in the customs sphere, including revision of customs 
legislation;  computerization of customs administ ration;  restructuring of the Customs Valuation 
Division, strengthening of the inspection process, and establishment of two sections on rules of origin 
and post-clearance auditing, respectively;  training  of customs officials in the revised customs 
legislation;  fraud control;  post-clearance audit faciliti es and methods;  rules of origin;  and training in 
customs procedures for the private sector. 
65. As regards standards and techni cal regulations, the Rwanda Bu reau of Standards (RBS) was 
established in 2001 but has not yet become fully operati onal.  Support is needed in the preparation and 
adoption of domestic standards, in circulating the relevant information, and in setting up a quality 
control system to promote better access for Rwanda's  exports to regional and international markets.  
Technical assistance is also required for the RBS to develop and implement a national certification 
and accreditation system.  Moreover, Rwanda w ould welcome support in setting up a central 
standardization laboratory, attached to the RBS, a nd a food quality control laboratory.  The country's 
existing laboratories lack the necessary technical facilities. 
66. In addition to the above, assistance is needed to train staff working for the RBS and the 
Rwanda Investment Promotion Agency;  customs personnel (especially those involved in the "GATT 
Commission"), and examiners and other officials of the future section on rules of origin.  Support is 
also requested for training in investment and tr ade promotion;  trade negotiations;  and project 
planning and evaluation. 
67. Since its entry into the WTO, Rwanda has not taken an active part in the negotiations.  The 
sheer number of negotiations – the Doha negotia tions, the COMESA negotia tions and negotiations 
with the EU under the Cotonou Agreement, for exam ple (each with a different scope, timetable and 
procedures) – is severely stretching the country's ca pabilities in terms of trade policy formulation.  
The most pressing needs for technical assistance in this sphere are (i) the identification of sectors and 
issues important for Rwanda;  (ii) training in negot iating techniques;  and (iii) identification of the 
reforms necessary to implement the results of the negotiations.  In the negotiations on trade in 
services, Rwanda needs technical assistance as to  how to structure its specific commitments. 
68. The Rwandan authorities would welcome technical assistance in drafting a law pertaining to 
competition policy and another law (Chapter III(4)( ii)(a)) providing for appropriate trade measures 
(anti-dumping, countervailing and safeguard measur es).  Rwanda is in the process of revising its 
industrial property legislation;  a draft law ha s been finalized with WIPO technical support 
(Chapter III(4)(iv)).  Technical a ssistance needs chiefly concern th e training of personnel responsible 
for implementing and enforcing the new law. 
(ii) Supply constraints 
69. Supply constraints are among the main barriers to the expansion of Rwanda's foreign trade.  
These are mainly due to Rwanda's landlocked situation, which mak es transport more costly;  the 
inadequate transport infrastructure, both within Rw anda and throughout the region;  the scarcity of 
arable land, since Rwanda is one of the most den sely populated countries in Africa;  the lack of skilled Rwanda WT/TPR/S/129 
 Page 25 
 
 
staff, aggravated by the consequences of the genocid e in 1994;  the high cost of electricity, water and 
telecommunications;  and quality management diffi culties.  Trade financing problems, poor trade 
information and the low competitiveness of Rwa ndan manufactures are all obstacles to the 
diversification of export products and markets. 
70. A number of infrastructure-related issues can be found in the PRSP, drawn up in 
November 2001, and in the Government's sectoral strategies.  These include privatization of the 
national telecommunications company (RwandaTel);  investments in the new electric generator;  more 
efficient management of the Electrogaz company (which will remain in government hands until 
2007);  development of the railway infrastructur e;  rehabilitation of the Kanombe airport;  
maintenance and rehabilitation of roads and bridges;  and privatization of tea factories and plantations, 
and of coffee washings stations and processing plants. 
71. Rwanda's aim in stating its assistance requireme nts is to strengthen the institutional capacity 
of trade promotion organizations;  to improve export financing mechanis ms and broaden knowledge 
of available preferential market access schemes;  and to acquire the computer and telecomputing 
equipment necessary to access up-to-date information on international markets.  In order to ensure a 
coordinated response to those needs by the various  providers of technical assistance, Rwanda has 
applied for participation in the Integrated Framework programme, a mechanism whereby six 
multilateral agencies (World Bank, ITC, UNCTAD,  IMF, WTO and UNDP) coordinate the delivery 
of trade-related technical assistance to LDCs so as to improve coherence in trade-related policies by 
integrating trade priorities into poverty reduction strategies. 
(iii) Integration of trade in development strategies 
72. The Integrated Framework emphasizes the neces sity for each country to take its trade 
priorities into account in its national development pl an or poverty reduction strategy.  It also enables 
donors to target technical assistance more effectively.28  If foreign trade is to stimulate economic 
growth and improve people's living conditions, inte gration should preferably be achieved through 
commitment at the political and institutional levels  and in partnership between the Government and 
the donors. 
73. Political commitment to integration is not yet systematic in Rwanda.  Although the final 
version of the PRSP, completed in November 2001, is closely concerned with trade policy issues, 
trade (apart from export diversification) is not e xplicitly recognized as a poverty reduction strategy.  
When Rwanda becomes a participant in the Integr ated Framework programme, a diagnostic study will 
facilitate the identification of a number of trad e policy-related priorities.  These can then be 
incorporated in future revisions of the PRSP. 
                                                      
28 A meeting was held between Rwanda and the donors to coordinate the financing of technical 
assistance.