WT/TPR/S/129 Trade Policy Review 
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IV. TRADE POLICIES AND PRACTICES BY SECTOR 
(1) OVERVIEW  
1. Since 1996 the policy of Rwanda has been prim arily to rebuild its scantily diversified 
economic base, in which agriculture plays a key role, particularly in terms of employment and 
exports.  Rwanda began liberalizing its agricultural sector in 1998.  Cu stom duties were reduced in the 
1990s and coffee export taxes were abolished in 1999.   In 2003, customs duties in this sector (as 
defined under the International St andard Industrial Classification) averaged 7 per cent, with a 
maximum of 30 per cent.  In 2000, the Rwandan Py rethrum Board (OPYRWA) was privatized and tea 
factories are expected to follow shortly.  Unpro cessed agricultural and livestock products, inputs, and 
agricultural machinery and equipment are exempt from VAT;  there are no customs duties on agricultural inputs.  A line of credit has been est ablished to facilitate the importation of chemical 
fertilizers.  The Government's strategy is aimed at  moving from subsistence farming to market-driven 
agriculture, and to reduce the number of persons employed in the sector. 
2. The mining sector's contribution to exports has substantially increased over recent years.  The 
sector is dominated by the Mining Production and De velopment Board (Redemi), which is one of the  
companies slated to be privatized.  It is one of th e non-agricultural sectors which, together with coltan, 
could contribute to the devel opment of non-traditional exports. 
3. The manufacturing sector is still embryonic.  It is the most protected sector of the economy, 
with an average customs duty of 19 per cent a nd a maximum of 30 per cent.  The production of 
leather and hides, and of textiles could potentially contribute to the development of the sector and 
exports.  The Government intends to give manuf acturing a leading role in its poverty reduction 
strategy by channelling investments into light indust ry, and, through the establishment of free zones, 
to promote local processing of certain goods prior to export. 
4. Rwanda is a net importer of services.  The Stat e is a major shareholder in the banking and 
fixed-line telephony subsectors.  Under the current pr ivatization programme these shares will be given 
up.  Rwanda's commitments under the General Agreem ent on Trade in Services (GATS) are limited to 
certain professional services, adult education, sewage and similar services;  hotel and restaurant 
services;  and recreational, cultural and sporting services in centres promoting eco-tourism. 
(2) A
GRICULTURE , LIVESTOCK , FISHING AND RELATED ACTIVITIES  
(i) Major features 
5. Rwanda is a rural country, with 90 per cent of the population working in the agricultural 
sector (including plant and animal production, fishing, forestry, and related activities).  Rural population density is 574 inhabitants for each square kilometre of arable land.
1  In 2000, the share of 
agriculture in real GDP was 45.1 per cent, and th e 2001 estimate was 45.8 per cent.  In 2002, the 
sector accounted for 61.8 per cent of total goods expor ted (56.1 per cent in the case of tea and coffee), 
comprised mainly of unprocessed products. 
6. Agricultural output is mainly based on family and subsistence farming, with almost 80 per 
cent of farms under one hectare.  Livestock pro duction is on the decline because pastures are being 
turned into crop lands.  Fishing and forestry are underdeveloped.  Bananas, sweet potatoes, manioc, 
beans and sorghum are the main food crops.  The ch ief cash crops are tea and coffee, which provide 
                                                      
1 Rwanda Investment Promotion Agency (2002). Rwanda WT/TPR/S/129 
 Page 53  
 
 
more than half of Rwanda's export revenue;  they  are managed by the Office for Industrial Cultivation 
in Rwanda (OCIR-Thé) and (OCIR-Café).2  A third industrial crop (pyrethrum) was revived in the 
mid-1990s (Table IV.1).  Rwanda is a net importer of  food products.  Its imports of cereals, vegetable 
and animal oils, sugar and dairy products accounted for 16.3 per cent of total imported goods in 2002. 
Table IV.1 
Agricultural production, 1990 and 1995-2002 
(Tonnes) 
 1990 1995 1996 1997 1998 1999 2000 2001 2002 
Total crops 4,795,070 3,157,400 3,619,701 3,872,032 4,276,458 4,763,203 5,722,770 5,826,476 1,464,346 
Variation (%)   14.6 7.0 10.4 11.4 20.1 1.8 .. 
Cereals 254,569 141,000 182,081 221,433 191,226 175,006 235,415 293,001 .. 
  Sorghum 142,603 77,300 102,076 122,204 102,533 107,566 155,106 174,927 .. 
  Maize 95,685 55,600 66,595 83,427 58,618 54,912 62,502 92,129 78,465 
  Wheat 6,976 6,000 6,814 5,997 4,140 3,607 6,444 8,248 .. 
  Rice 9,305 2,100 6,596 9,805 7,935 8,921 11,363 17,697 24,539 
Pulses 242,027 134,000 189,219 156,221 177,193 162,142 251,561 329,749 .. 
  Beans 204,707 126,300 178,697 141,815 153,917 140,425 215,347 289,983 244,623 
 Groundnuts 8,276 7,700 10,522 7,549 4,882 8,113 15,341 16,042 .. 
  Soya 18,096 0 0 4,279 9,831 4,707 7,034 6,584 19,216 
  Peas 10,948 0 0 2,578 8,563 8,897 13,839 17,140 .. 
Roots and 
tubers 1,448,214 881,000 1,143,004 1,245,959 1,204,203 1,445,637 2,880,668 2,914,965 .. 
  Potatoes 283,673 137,700 195,381 229,625 181,138 175,889 954,418 969,982 1,097,503 
  Sweet potatoes 817,738 550,500 664,601 741,624 751,141 862,567 1,025,573 1,136,569 .. 
  Cocoyams 81,613 44,800 62,384 71,716 83,743 90,247 88,235 101,399 .. 
  Manioc 265,190 148,000 220,638 202,994 188,182 316,934 812,442 688,015 .. 
Bananas 2,776,764 2,001,400 2,105,397 2,248,419 2,625,485 2,897,435 2,150,501 2,103,122 .. 
Fruit and 
vegetables 73,496 .. .. .. 78,350 82,983 204,625 185,639 .. 
Coffee .. 21,952 15,285 14,830 14,268 18,817 16,098 18,268 .. 
Tea (dried) .. 5,414 9,057 13,239 14,874 12,669 14,481 17,817 .. 
Sugar cane .. .. 15,000 20,000 30,000 40,000 40,000 .. .. 
Pyrethrum .. .. 900 900 950 950 1,000 .. .. 
Tobacco .. .. 3,600 3,600 3,700 3,700 3,800 .. .. 
 .. Not available.  
Source:  Ministry of Finance and Economic Planning (2002), Rwanda in Figures ;  Rwanda Investment Promotion Agency (2002);  and 
information provided by the Ministry of  Agriculture, Livestock and Forestry. 
 
7. Agricultural productivity has been declining fo r over a decade because of environmental 
degradation and loss of soil fertility through over-cultiv ation (due to population increase);  limited use 
of modern inputs;  and excessive parc elling-out of land.  This decline is also attributable to the fact 
that demographic pressure has forced farmers to u se less fertile land at the base of the hills.  
Traditional cultivation methods are still widespread. 
8. Rwanda began to liberalize the agricultura l sector in 1998 and has invited broader 
participation of the private sector in various activities.  During the 1990s, customs duties were 
reduced, and in 1999, export taxes on coffee were  abolished.  In De cember 2000, the Rwandan 
Pyrethrum Board (OPYRWA) was sold to a priv ate company, the Rwandan Pyrethrum Company 
(SOPYRWA). 
(ii) Objectives and policy instruments 
9. The main objective of Rwanda's agricultural po licy is food security.  Agricultural strategy, as 
laid down in "Rwanda Vision 2020", aims to mo ve from subsistence farming to market-driven 
                                                      
2 The OCIR was established in 1964 for both crops, and divided into the Tea Board (OCIR-Thé) and 
Coffee Board (OCIR-Café) in 1975.  The two boards are currently under th e administration of the Ministry 
responsible for agriculture. WT/TPR/S/129 Trade Policy Review 
Page 54  
 
 
agriculture, and to reduce the number of people wo rking in the sector from 90 to 50 per cent over a 
period of 20 years.  This will involve improving land use and soil conservation and management;  
developing the markets for land, inputs and fini shed goods;  enhancing production methods through 
research, extension services and mo re intensive application of modern  inputs;  promoting rural credit 
schemes and other financial mechanisms;  delivering tr aining for farmers' and pr ofessional associations;  
and improving storage facilities, marketplaces and road infrastructure to ease the isolation of farmers.3  
The plan is also to encourage the diversification of crops and of more lucrative and nutritious products 
such as potatoes, manioc, maize, sorghum, wheat and soya, through regional specialization based on 
comparative advantage.  At present, five crops, namely , beans, maize, potatoes, rice and soya have been 
declared priority crops.4 
10. Within the framework of its poverty reduction strategy, in November 2001 the Government 
launched a 14-year rural development project for th e modernization of agriculture.  The cost is 
estimated at US$168 million, with 95 per cent fundi ng from the World Bank.  The project aims to 
raise productivity, income and rural employment through the promotion of market gardening, improvement of product marketing, research deve lopment and the establishment of marketing 
infrastructure.
5  In order to safeguard price stability , Law No. 15 of 28 January 2001 on the 
Organization of Domestic Trade establishes measur es for the stockpiling of strategic food products. 
11. The National Agronomic Research Institute of Rwan da (ISAR) is in charge of research in this 
area.  A law on seed multiplication, inspection and ma rketing has been adopted by Parliament for the 
purpose of improving production.  In 2002, a stor age facility with a 500-tonne capacity and a seed 
washing unit were constructed;  of the 1,600 tonn es of seed produced, 1,200 were distributed to 
farmers.  Regular seed quality inspections will also be conducted and administrative arrangements 
have already been made to that effect. 
12. In conjunction with the NBR, the Ministry with  responsibility for agriculture has established a 
line of credit to facilitate the importation of chemical fertilizers.6  In 2002, the Government provided 
the people's banks with RF 124 million for seasonal loan s, and it has continued to deliver training for 
farmers in the use of modern inputs.  The G overnment has also introduced guarantee funds and 
reimbursement plans for agricultural indus tries using World Bank and USAID funds.7  Under a 
project supporting the development of the dairy cattle  industry, RF 300 million have been allocated to 
guarantee 50 per cent funding for the construction of  animal feedlots, processing plants, marketing 
companies, and animal fattening operations.  This  project also includes a RF 500 million line of 
credit. 
13. A draft land law is being prepared to ensure a secure land tenure system, improve land use 
and provide a framework for the development of the land market.8  In 1999, the Government adopted 
a strategic framework for the distribution of agricult ural inputs, which are now exempt from sales tax.  
                                                      
3 Rwanda Investment Promotion Agency (2002). 
4 Rwanda has three rice mills:  in Rwamagana, with a daily capacity of 9,000 kg, but which is operating 
at only 10 per cent of its capacity;  in Gikonko, and in Bugarama, which is not currently in operation because of 
a shortage of machinery and spare parts. 
5 Approximately two-thirds of food transactions (in value) are conducted outside markets.  MINEFI–
DREE (2002). 
6 US$2 million have been allocated for this purpose, with an additional US$300,000 for the purchase of 
agricultural inputs. 
7 Ministry of Finance and Economic Planning (2003). 
8 Land ownership is currently influenced by customary and Western practices.  In principle, foreigners 
enjoy the same land rights as nationals. Rwanda WT/TPR/S/129 
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Unprocessed agricultural (including livestock) pr oducts, inputs, and agricultural machinery and 
equipment are exempt from VAT.  There are no customs duties on agricultural inputs. 
14. In 2003, the average duty on imports of agricultural products was 13.2 per cent (with a 
minimum rate of 5 per cent and a maximum of 30 per cent).  Many of the applied rates are higher than 
the bound rates, chiefly on dairy products, malt, saps,  and fruit (Table AIII.2).  A special 25-per cent 
tax on sugar imports was introduced through  Law No. 41/2002 of 31 December 2002. 
(iii) Policy by product 
(a) Tea 
15. The tea industry is robust;  climatic conditio ns and soil quality provide certain comparative 
advantages.  Rwandan tea is widely used in tea blends.  In 2001, the production of green tea leaves 
reached a record level of 78,000 tonnes, while bl ack tea production was close to 18,000 tonnes;  this 
trend shows that the industry has recovered well si nce the 1994 genocide.  In 2000 and 2001, tea had 
surpassed coffee as the main export product.  In 2002, tea exports amounted to US$11.8 million, or 
25.6 per cent of total goods exported;  only 3 per cent of tea production is consumed locally.  Tea 
accounts for approximately 36 per cent of State re venue.  According to the authorities, with an 
average yield of 841 kg. (potential yield between 2.5 and 3 tonnes) per hectare in the industrial units, 
the industry is still under-exploited.9 
16. The tea industry is one of the country's leadi ng employers, providing close to 60,000 jobs not 
counting indirect employment.  The plantations are managed by the Tea Board factories, tea 
cooperatives (Coopthés), the tea planters' association (Assopthé), "Thés Villageois" (village planters) 
and the only private tea factory – Sorwathé.10  Returns in State-run entities are clearly lower than 
those earned by the cooperatives or private producers.   For example, Sorwathé and Assopthé have 
only 9 per cent of the land used for tea plantations, yet together they produce 23 per cent of national 
production of green tea leaves and 25 per cent of black tea.11 
17. Rwandan tea is sold either at auction in Momba sa or directly to private customers;  the selling 
price in Mombasa serves as a reference for setting prices  to private clients.  The price of Rwandan tea 
ranges between one and three United States dollars, depending on its factory of origin, its grade and 
adherence to production standards.  In an effort to bolster rural income and exports, the price paid to 
tea farmers was increased from RF 37 to 45 per kg. of green tea leaves in 2001.12  The privatization of 
tea factories and estates operated by the Tea Board began in 1999.13  Nine factories are to be 
privatized and the share held by the State in the Sorwathé factory, the only private factory at the 
moment, is also to be sold.14  A new regulatory framework has been adopted;  it includes,  inter alia , a 
                                                      
9 Ministry of Finance and Economic Planning , Privatization Secret ariat (undated (b)). 
10 All factories are operated by the Tea Board (OCIR-Thé), except for Sorwathé. 
11 Ministry of Finance and Economic Planning, Privatization Secretariat (2002a). 
12 Ministry of Finance and Economic Planning, Privatization Secretariat (2002a). 
13 In the factories working with "Thés Villageois"  and Coopthés a portion of the equity capital is 
reserved as follows:  10 per cent for "Thés Villageois", 35 per cent for Coopthé Mulidi, 20 per cent for Coopthé 
Shagasha and 15 per cent for Coopthé Mwaga-Gisakura.  It was also decided to reduce the percentage of shares reserved for the strategic investor in the Pfunda factory from 90 to 55 and to offer those freed shares (35 per 
cent) to local investors. 
14 The Government owns 49 per cent of Sorwathé stocks (through OCIR-Thé and the Rwandan 
Development Bank), and the American company, Tea Importers, owns the remaining 51 per cent.  The 
privatization programme reserves 10 percentage points of the 23.5 per cent of shares held by OCIR-Thé for 
Assopthé, and the remaining 13.5 percentage points will be bought by Sorwathé itself, after Tea Importers gives 
up its pre-emptive right. WT/TPR/S/129 Trade Policy Review 
Page 56  
 
 
revised mandate for the Tea Board to turn it into  an agency for the regulation, promotion and 
surveillance of the tea industry's performance.15  Ongoing research on the tea industry, conducted by 
ISAR, seeks to identify the optimal conditions for production and to improve seed quality. 
18. A major constraint on tea production and mark eting is the distance from markets and the 
country's landlocked situation (aroun d three-quarters of the harvest is sold in Mombasa).  The main 
buyers are Great Britain, for "prime" grade tea, Egypt and Pakistan, for medium grades, and South 
Africa, Somalia, Sudan and Yemen for lower grades16.  Transport is a constant problem because of 
road conditions, and the number of bor ders the products must cross befo re reaching their destination.  
According to the authorities, the tea industry is much  affected by the purchasing power of its partners, 
as the Rwandan population consumes very little tea. 
(b) Coffee 
19. Coffee is produced by approximately 400,000 sm allholders under the supervision of the 
Coffee Board, which manages the stocks;  there are no large estates.17  The coffee industry was 
liberalized in the mid-1990s and, consequently, the Coffee Board is no longer engaged in coffee 
processing, marketing or exports.  At present, sec ondary processing of coffee is handled by the five 
factories exporters (Agrocoffee, CBC, SICAF, Rwacof and Rwandex).18  The Government is also  
selling its interest in Rwandex, the chief coffee exporter in Rwanda. 
20. Approximately 97 per cent of the crop is Arab ica coffee, and 3 per cent is of the Robusta 
type.  Production rose from 15,285 tonnes in 1996 to  18,268 tonnes in 2001, partly because of the 
planting of new varieties which are more productive and precocious.  Some 90 per cent of coffee is exported before roasting.  Coffee is the main export commodity, except in 2000 and 2001, when it 
relinquished that position to tea.
19  In 2002, coffee exports rose to US$14 million, that is, 30.5 per cent 
of total exports. 
21. Generally, the industry is suffering from a deteriora tion in quality, due in part to a loss of soil 
fertility, age of the plantations, the varieties grown,  the absence of producers' organizations and of a 
system of quality control, and the insufficient num ber of washing stations.  Coffee production has not 
recovered from the 1994 genocide, and is held back by poor promotion on international markets, the 
lack of infrastructure and the high cost of capital, which is scarce. 
22. Since 1997, the price paid to producers is no l onger fixed.  A "floating" price is announced 
before each week end, and this serves as a base line for negotiations between coffee producers and 
buyers.  The calculation of this price is based  on a "moving scale" which takes into account the 
various elements related to coff ee picking, processing and export. 
23. Export taxes on coffee were abolished in 1999.   In 1997, the Government adopted a new 
policy for development of the coffee industry, along with a new strategy for enhancing quality.  This 
policy has served as a guide for the definition of a four-year recovery programme (2000-2003), aimed 
                                                      
15 Rwanda Investment Promotion Agency (2002). 
16 Pakistan alone buys 65 per cent of tea produced in Rwanda. 
17 OCIR-Café does not have its own plantations, but groups all the growers, to whom it distributes 
seedlings and insecticides and provides certification on qua lity standards.  It is remunerated by growers at 3 per 
cent of their export sales price.  OCIR-Café al so issues licences to private coffee traders. 
18 Primary processing is done by the producers them selves using traditional or semi-modern methods.  
Only a small quantity is processed at modern washing stations. 
19 The drop in coffee exports was triggered by plunging coffee prices on the international market, but 
also by the fall in the quantity and quality of Rwandan coffee. Rwanda WT/TPR/S/129 
 Page 57  
 
 
at increasing production through intensification,  boosting producers' earnings, and improving 
quality.20  In an attempt to contain coffee growing in certain areas, the Government has withdrawn its 
assistance to regions which are not targeted, that is , zones with climatic and soil conditions that are 
less favourable to coffee growing.  Quality can  also be improved through washing, and the 
Government is encouraging the private sector to build washing stations.21  The National University of 
Rwanda (PEARL project), in coope ration with various partners, built and inaugurated an  experimental 
washing station in Maraba for a local cooperative in July 2002.22 
24. As in the case of tea, research on coffee fo cuses on identifying the optimal conditions for 
production and on improving seed quality.  ISAR has a coffee research programme which is partially 
funded by the Coffee Board.23  The Board is due to be reformed  and turned into an industry-based 
organization, with terms of reference limited to regulation, su rveillance, promotion, research and 
possibly the provision of extension services.  Training for farmers' associations  will be encouraged in 
order to improve communication and to promote th e distribution and use of higher-quality inputs.  
Two coffee factories (Nkora and Gikondo) were pr ivatized in 1999, as wa s the Masaka washing 
station in 2002.24 
25. The quantitative objectives of the Government  are ambitious: to produce 30,000 tonnes of 
coffee in 2005 (compared with 18,268 tonnes in 2001) , including 20 per cent of high-grade Arabica, 
for which Rwanda has ideal natural conditions .  The coffee production goal for 2010 is between 
44,000 and 60,000 tonnes and the price paid to producers should go up from RF 120 to 400 per kg.25 
26. In order to achieve these objectives, the Gove rnment will establish a plan to develop  
production (opening of around 100 washing stati ons, strengthening of the coffee growers' 
associations, renewal of seedling varieties, and setting up of a quality control system).  It will 
emphasize the marketing and promotion of Rwandan coffee (collection of data on the domestic and 
international markets, launching of new promotiona l activities in Rwanda and abroad, and promotion 
of domestic coffee consumption), and the setting up of an appropriate institutional framework 
(establishment of new associations or a quality co ntrol bureau, capacity building within the Coffee 
Board, and creation of funding mechanisms).26  The plan will also entail reducing the number of 
intermediaries in the marketing process. 
(c) Pyrethrum 
27. The production of pyrethrum resumed at the e nd of the 1990s and Rwanda now ranks third, 
with 8 per cent of world production, after Kenya (64 per cent) and Tanzania (14 per cent).  In 2002, 
the production of dried flowers stood at 1,000 tonnes.27  Since the Rwandan Pyrethrum Board 
                                                      
20 The 2004-2010 action plan is being drafted. 
21 Rwanda currently has around 15 washing stations, as opposed to two in 2000.  These stations grant 
credit to producers in their regions to guarantee coffee quality standards. 
22 PEARL (Partnership for Enhancing Agriculture in Rwanda Through Link ages) is a three-year, 
renewable project designed to boost the agricultural sector through partnerships.  It was launched in 2001 and is 
funded by USAID through collaboration with two US un iversities (Michigan State University and Texas A&M 
University). 
23 In 2004, the Coffee Board contributed RF 11 million to the ISAR budget. 
24 There is a total of four hulling factories. 
25 Coffee sold by the "Abahuzamugambi ba kawa" cooperative already fetches RF 1,400 per kg.  Other 
producers receive between RF 120 and 140 per kg.  This cooperative had taken the decision to produce only a 
specialty grade coffee – Arabica Bourbon. 
26 Ministry of Finance and Economic Planning, Privatization Secretariat (2002(b)). 
27 FAOSTAT, available online at:  http://apps.fao.org/default.htm . WT/TPR/S/129 Trade Policy Review 
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(OPYRWA) was privatized and became the Rwandan Pyrethrum Company (SOPYRWA) in 
December 2000, pyrethrum production appears to ha ve revived, even though it is still relatively 
modest.28  Pyrethrum concentrate is exported mainly to  the United States under the AGOA, but also to 
Kenya and South Africa.29  According to some reports, afte r 18 months, Sopyrwa's exports had 
already reached between US$2 and 3 million.30 
28. Sopyrwa employs 75 permanent workers and a te mporary workforce of up to 500.  Estimates 
issued by the authorities state that over 50,000 pe ople depend on the company.  Sopyrwa currently 
produces crude pyrethrum extract, which is then expor ted and refined abroad.  However, the company 
is expecting to refurbish its refinery to begin expo rting refined pyrethrum extract.  The kg. price for 
extract is US$82.  Under the Investment Code, So pyrwa is tax-exempt for a period of five years.31 
(d) Other crops and by-products 
Sugar products  
 
29. Sugar cane production in 2000 stood at 40,000 tonnes (0.8 per cent of total agricultural 
production), i.e. an increase of 15,000 tonnes since 1996, and covered 0.1 per cent of cultivated land.  
Sugar imports totalled 13,023 tonnes in 2002 (including 10 ,434 tonnes of sugar cane), to the tune of  
US$5.9 million, or 2.34 per cent of total imports (1.74 per cent for sugar cane).  Rwanda does not 
export sugar. 
30. Custom duties on imports are 30 per cent for suga r confectionery not containing cocoa, 15 per 
cent for molasses, produced by sugar extraction and re finement, and 5 per cent for other products.  In 
December 2002, a special  25-per cent tax was introduced on sugar imports.32 
(e) Livestock raising 
31. Livestock production is extensive in Rwanda.  In 2003 Rwandan animal stocks consisted of 
850,000 cows, 372,000 sheep, 1,270,000 goats, 212,000 pi gs, 498,000 rabbits and 2,482,000 fowls.  
The development of livestock farming has been cu rbed by the expansion of crop production and the 
resulting fall in the amount of land available for pasture. 
32. Cattle is mostly raised as a symbol of wealth and social status;  only 15 per cent of the cow 
herd is slaughtered annually.33  The traditional method of cattle rearing creates soil degradation due to 
overgrazing.  The current Government policy is to  reduce the herd of cattle to 500,000 head over a 
period of 10 years in order to move away from "pres tige" cattle rearing of large herds with low yield 
towards a more viable livestock production.  Pedi gree dairy cattle are also being introduced into 
Rwanda and efforts are being made to impr ove the stock through artificial insemination.34 
33. Prices are determined by the market. Import duties on live animals are 5 per cent, and 15 per 
cent on meat.  Duties on dairy products, eggs and honey  range from 5 to 30 per cent.  Imports of meat  
                                                      
28 OPYRWA was founded in 1978, with the merger of the Association of Pyrethrum Planters (ASPY) 
and a crude pyrethrum extract factory, Usinex.  ASPY was replaced by a new cooperative, Ishyabiki, which has a membership of 12,000. 
29 In 2001, exports to the United States rose to US$0.94 million. 
30 PressNet, Rwanda, available on-line at:  http://www.pressnet-dc.com/pdfs/rwanda.pdf . 
31 Ministry of  Finance and Economic Planning, Privatization Secretariat (2001).  
32 Law No. 41/2002 of 31 December 2002. 
33 Rwanda Investment Promotion Agency (2002). 
34 The national centre for artificial insemination intends to perform 200,000 procedures over five years. Rwanda WT/TPR/S/129 
 Page 59  
 
 
and foodstuffs of animal origin from countries wh ere certain diseases are prevalent are banned.  
Importation is contingent upon presentation of a certificate of origin and health issued by the official veterinary service of the exporting country (Chapter III(2)(viii)(b)). 
(f) Fishery products and by-products 
34. The share of fishing in real GDP is low, and was estimated in 2002 at 0.33 per cent.  
Following the 1994 genocide, production had fallen to under 2,000 tonnes of catch per year.  
However, rehabilitation and revitalization efforts have led to a significant increase in production, 
which reached 7,100 tonnes in 2001, and was estimated  at 7,000 tonnes in 2002.  Fishing generates an 
annual turnover of US$6.1 million and employs around 30,000 people.  Imports currently meet 
approximately 45 per cent of the demand.  Exports are almost nonexistent and consist of border trade 
of around 1,000 tonnes of Limnothrissa miodon  with the Democratic Republic of the Congo 
(Table IV.2).
35 
35. Artisanal fishing is practised in Rwanda, primar ily on the lakes, but also along waterways and 
rivers over a surface area of 1,420 km2, or 5.4 per cent of the national territory.  Fish species in lakes 
are primarily Limnothrissa miodon  (40 per cent of total catch), followed by Tilapia ( tilapia spp. ) and 
African catfish ( clarias gariepinus ), among others.  Rwandan lakes, except for Lake Kivu and the 
lakes of the Akagera national park, are mostly overfi shed.  They have borne the effects of increased 
fishing activity, an outdated legislative framework, a lack of monitoring and fisheries management 
policy, and the use of dest ructive fishing techniques.36 
Table IV.2 
Fishing, 2001 
(Tonnes)  
 Production Imports Exports 
Fishing 7,100 6,053 1,000 
Fish farming 300 0 0 
Total 74,000 6,053 1,000 
Value (RF million) 2,840.0 2,421.2 .. 
 
.. Not available. 
 
Source:  FAO (2002a). 
 
36. Fish farming is basically undertaken as a sour ce of additional income and is estimated at 
300 tonnes annually, with 25,000 fish breeders par ticipating in production.  There are currently 
2,600 ponds in operation throughout Rwanda (compared with 4,300 befo re 1994).  Attempts to raise 
fish in cages and ponds are under way, and inte grated fish culture is being considered.37  In order to 
diversify the types of fish produced, efforts have  been made to introduce other species, such as 
common carp and Chinese carp, but without success. 
37. The three main objectives of Government policy are food security, poverty reduction and 
environmental protection through the rational husband ry of fishery resources.  The Government hopes 
to develop the subsector through various programm es aimed at increasing productivity.  This will be 
accomplished through rehabilitation and enhancement of the fish stock;  a participatory approach to 
lake management, and the strengthening of fishing and fish farming associations.  State involvement 
in production-related activities a nd marketing will be phased out th rough privatization of State 
                                                      
35 FAO (2002a). 
36 Ministry of Agriculture, Livestock, Environment and Rural Development, Environment Division 
(1998). 
37 FAO (2002a). WT/TPR/S/129 Trade Policy Review 
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fisheries and fish culture establishments, in or der for increased focus to be placed on planning, 
research and extension services to impart new production techniques. 
38. The regulatory framework dates back to the period between 1930 and 1950 and needs 
updating.38  A draft law on fisheries and fish culture h as been prepared with FAO assistance and is 
now under review by the Council of Ministers and Pa rliament.  It will cover such areas as the fisheries 
regime and types of fishing licence;  management  and development of fisheries and aquaculture;  
authorization;  measures for conserving fishery resour ces;  aquaculture;  regulation of water resources;  
hygiene and quality of fishery products;  research, and offences. 
39. Recreational or professional fishing in Rwanda requires a fishing licence.  Non-resident 
foreigners in Rwanda may earn access rights by ag reement between Rwanda and their countries of 
origin, or special authorization from the Minist ry responsible for fisheries.  Fishing under a 
concessionary arrangement will enter into force when  the new law on fisheries and fish culture is 
adopted. 
40. Through "Vision 2020", the Government of Rw anda plans to reach a production target of 
17,362 tonnes of fish by 2010, consolidate legi slation under various arrangements between 2010 and 
2020, and raise production to 24,560 tonnes by 2025.39 
(g) Forestry  
41. Rwanda produces mainly raw or lightly processed forest products (scarcely diversified) such 
as fuel wood (charcoal or unprocessed), building lu mber and sawnwood.  Wood is chiefly used as a 
source of energy.40  In 2001, forestry contributed to 1.4 per cent of real GDP.  Imports consist mainly 
of  manufactured forest outputs such as paper ar ticles, panels and plywood, sawnwood, treated poles, 
and wooden furniture.  In 2002, the value of impor ts rose to US$10.8 million.  Exports are down, 
some US$78,700 in 2002 (from US$482,600 in 200041) for wood, and US$140,800 for wooden 
furniture (exported mainly to Italy).42  Table IV.3 summarizes the situation in the subsector (apart 
from wooden furniture) in 2001. 
                                                      
38 Decree of 12 July 1932 relating to fishing concessions;  Decree of 21 April 1937 relating to fishing 
regulations;  Decree No. 325/Agri of 16 October 1947 relating to the introduction of foreign species into the 
indigenous animal population;  Decree No. 52/25 of 3 February 1955 which prohibits fishing using narcotics;  Decree No. 52/160 of 16 February 1955 establishing regulations on lake fishing;  Decree No. 5520/186 of 
14 August 1958 establishing regulations  on fishing in the Rusizi river;  Decree No. 5520/97 of 2 December 1959 
prohibiting seine fishing on inland lakes;  Ministerial Order No. 1076/05 regarding the appointment of criminal 
investigation police officers in the ar ea of fisheries and fish culture;  Ministerial Instructions (No. 1900/07.24) 
of 11 December 1997 issuing a remi nder regarding the fishing regulati ons, and Ministerial Instructions 
(No. 1069/11.24) of 1 September 1999 relating to fishing permits. 
39 FAO (2002b). 
40 Wood supplies over 80 per cent of  the energy consumed in Rwanda. 
41 The wide discrepancy between the years can be explained by the organization of exhibitions. 
42 These figures were obtained from data provided by  partner countries.  According to the statistics for 
Rwanda, 2002 exports were a mere US$17,900, and furnitu re wood, US$6,500.  Official  reports state that these 
amounts also include exports of artwork. Rwanda WT/TPR/S/129 
 Page 61  
 
 
Table IV.3 
Forest products, 2001 
 Imports Exports Production Consumption 
 Quantity US$  
(thousands) Quantity US$ 
(thousands) Quantity Quantity 
Sawn wood (m3) 27 20 86 3 79,000 78,941 
  Lumber (coniferous) 0 0 86 3 22,000 21,914 
  Lumber (non-coniferous) 27 20 0 0 57,000 57,027 
Wood-based panels (m3) 3,530 772 0 0 0 3,530 
  Veneer sheets 0 0 0 0 0 0 
  Plywood 2,437 608 0 0 0 2,437 
  Chipboard  1,057 150 0 0 0 1,057 
Fibreboard 36 14 0 0 0 36 
Wood pulp (tonnes) 0 0 0 0 0 0 
  Chemical pulp 0 0 0 0 0 0 
Paper and paperboard 
(tonnes) 995 860 198 153 0 797 
  Newsprint 3 3 0 0 0 3 
  Paper, printing and writing 564 505 123 109 0 441 
  Other 428 352 75 44 0 353 
Round wood (m3) 0 0 143 159 7,836,000 7,835,857 
  Industrial round wood (m3) 0 0 143 159 336,000 335,857 
  Firewood (m3) 0 0 0 0 7,500,000 7,500,000 
 
Source: FAO, available at:  http://www.fao.org/forestry  [4 December 2003]. 
 
42. The only lumber processing factory in Rwanda is the Rwandan Matches Company  
(SORWAL).  Its annual processing capacity of 2,160 m3 is largely under-utilized (760.5 m3 annually).  
Approximately 160 people work in the factory, not counting those involved in felling the trees and 
working the wood.43  In 2000, the State sold its shares (29.5 per cent) in the "Development and 
Business Prospects"  enterprise (Debupro).  Ten establishments are involved in furniture 
manufacturing, artwork and match production.  Furniture is produced by three companies 
(Manumétal, Ameki Color and Chez John) and by associations of craftsmen. 
43. The declared policy objectives for the subsector are the building  and conservation of forest 
resources, increase in production, and better use a nd promotion of forest products.  However, 
Rwandan forestry resources are on the decline.  Between 1990 and 2000, Rwanda lost 32 per cent of 
its forest cover, due to several factors such as land clearance for crops, intensive logging and poor 
management.  In 2000, forest cover nationwide w as estimated at 473,200 hectares, or 18 per cent of 
the domestic territory (47 per cent of which wa s natural forest and 53 per cent comprised of 
plantations).44  In Rwanda, wood resources per capita are among the lowest on the continent owing to 
tremendous demographic pressure.  The annual production capacity of forests (apart from processed 
forest products) meets approximately 70 per cent of the population's needs.45  This situation leads to 
increased dependence on imported forest products. 
44. The forestry subsector is governed by  Law No. 47/1988 of 5 December 1988 on the 
Organization of Forestry Policy, the main object of  which is to protect a nd develop wooded areas and 
institutionalize the national forestry ser vice.  It distinguishes between State , communal and private 
forests, establishes conditions fo r their management, and lays down measures providing for resource 
conservation and forestry operations.  The implemen tation of the forestry policy and its corresponding 
enforcement provisions are also defined therein. 
                                                      
43 Mihigo, Augustin (2001). 
44 Reafforestation efforts have been undertaken in an attempt to compensate for the regression of 
natural forests.  As a result, the surface area of forest  plantations rose from 80,000 to 252,000 hect ares between 
1980 and 1999. 
45 Mihigo, Augustin (2001). WT/TPR/S/129 Trade Policy Review 
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45. The Law has been heavily criticized.  The obligation placed on owners of plantations 
exceeding two hectares to draw up management pl ans is controversial since following up on its 
implementation is hampered by insufficient human and material resources.  The penal provisions and 
provisions relating to forest rangers are considered  weak and unsuitable.  The 1-per cent tax on the 
yield of private forest plantations of more than two hectares has the effect of a production tax, and 
discourages investment.  The measures necessary to ma ke the Law fully operational have not yet been 
taken.  Application orders have  not been adopted or updated with respect to the organization and 
powers of the national forestry service;  the crea tion of a permanent service to manage the national 
forestry stock and the prefectural forestry commi ssion;  management contracts;  guidelines for felling 
trees;  or procedures for classifying and declassifying forests.46 
46. At present, there are protected areas, where all activity (especially felling) is prohibited.  
Felling is likewise prohibited in State-owned for ests under ministerial orders.  Felling permits are 
issued at the provincial level by the director in charge of agriculture, livestock and forestry, after 
evaluating the potential environmental effects, and pa yment of RF 2,000 in administrative fees to the 
NBR.  Permits are valid for three months.  In order to cut trees covering an area of over two hectares, a preliminary assessment of the consequences is requ ired.  The establishment of a forest protection 
service is also envisaged. 
47. The subsector faces several constraints, such as hilly terrain with low fertility, drought, and 
termites;  absence of reliable statistics to enable proper planning;  inoperable legislation on forestry 
and national forestry fund;  scattered management and forest resource protection structures;  high 
management costs;  and insufficient number of forestry  officials and specialists in forestry operations 
and woodcraft.
47 
(3) MINING AND ENERGY  
(i) Mining 
48. The mining industry employs just over 600 workers, and contributed 0.2 per cent of real GDP 
in 2001.  Cassiterite (tin oxide), colombo-tanta lite (coltan) and tungsten are the most extensively 
mined minerals48, and their production in 2001 totalled 555, 395 and 162 tonnes respectively.49  As in 
the case of other sectors, mining also suffered from the effects of the 1994 genocide;  in 2001 mining 
production was down to 77 pe r cent of its 1990 level.50  The mining industry exports all its 
production, which in 2002 amounted to 35.5 per cent of  total goods exports.  A new mining code is to 
be finalized in 2004. 
                                                      
46 Mihigo, Augustin (2001). 
47 Ministry of Agriculture, Livestock, Environment and Rural Development, Environment Division 
(1998). 
48 There are also other minerals and ores, such as:  gold, ruby/sapphire, beryl, amblyogonite, amethyst, 
iron, chiastolite, marble, dolomite, laterite, quartz ite, silica sands, quartzophylade/slate schists, 
granite/migmatite, amphibolite, clay, kaolin, talc, pouzzolana, volcanic rock, travertine, diatomite and gypsum. 
49 Ministry of Finance and Economic Planning , Privatization Secret ariat (undated (c)). 
50 According to the Rwandan authorities, the sector also suffers from a lack of information on minerals, 
including reserves, from a fiscal po licy offering few incentives, from continued illegal mining operations, 
inadequate power supply, low international prices, inadequate support,  training and information for mining 
operators, and low investment in the sector. Rwanda WT/TPR/S/129 
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49. The sector is led by the Mining Producti on and Development Board (Redemi), a State 
enterprise which began operating in 1989 and is curren tly on the list of companies to be privatized.51  
Its cassiterite, tungsten and coltan output in 2000 w as 203, 117 and 12  tonnes respectively.  Redemi 
numbered 493 employees and 212 temporary workers in 2000.  Other companies operating in the 
sector are COPIMAR, SOGERMI, Rwanda Metals, Pyramide Internationale , and RAS.52 
50. The Ministry in charge of mining issues va rious types of permit - concessions, special 
operating permits, and temporary authoriza tion for mining surveys and operations.53  A mining 
concession is valid for 30 years and renewable for 15- year periods:  the licensing fee is RF 150,000, 
renewal RF 300,000, changes or transfer cost RF 250,000 and amalgamation fees are RF 250,000;  
survey fees are RF 75,000. 
51. Special operating permits are reserved for sma ll-scale mining or limited production and for 
small-scale mining associations.  These are valid for a period of four years at a cost of RF 50,000.  It 
is possible to renew such permits twice, at a cost of RF 75,000 and 100,000 respectively).54  
Temporary authorization for mining surveys and ope rations is valid for 12 months, costs RF 5,000, 
and is renewable twice, for RF 10,000 and 25,000 respectively. 
52. The average customs duty on imports of mining products is 5.9 per cent;  the rates vary 
between 5 and 30 per cent. 
(ii) Energy 
(a) Overview 
53. In 2001, water and electricity contributed 0.2 per cent of real GDP, and are produced almost 
exclusively for the domestic market.  At present, 80. 4 per cent of energy consumed is derived from 
wood which is burnt in its primary state or processed into charcoal.  This form of energy is used 
mainly by households.  However, Rwanda has a deficit in wood, both for energy purposes and for 
other economic activities.55  Alternative sources and uses of energy are shown in Chart IV.1 below. 
                                                      
51 In December 2001, the Karuruma foundry, bel onging to Redemi, was sold to Niobium Mining 
Company, a German enterprise, for US$300,000.  The othe r enterprise to be privatized in the sector was the 
Lime Project (transferred in 1998 to the Limestone  Development Project (PVC) cooperative), which mines 
travertine and turns it into limestone, which is sold mainly to Electrogaz; PVC paid only 14 per cent of the 
offered price of RF 110 million. 
52 Ministry of Finance and Economic Planning , Privatization Secret ariat (undated (c)). 
53 Minstry of  Energy, Water and Natural Resources (MINERENA). 
54 Since 2002, 46 quarrying permits have been granted. 
55 Ministry of Finance and Economic Planning, Privatization Secretariat  (undated(a)). WT/TPR/S/129 Trade Policy Review 
Page 64  
 
 
 
 
54. The Government's aims to make better use of existing resources.  It envisages the following 
alternatives to the traditional sources of energy prod uction:  establishment of micro-power plants, use 
of solar and wind  energy (particularly in rural areas ), geothermal energy, use of peat or methane gas 
from Lake Kivu, with an estimated 55 billion m3 in reserves.  Prior to the conflict, there were 
21 micro-power plants, of which only one is curren tly in operation.  The Nkora coffee factory has a 
micro-power system.  As far as solar energy is c oncerned, a pilot project to supply electricity to 
30 villages is under review by the World Bank.  In  1999, a unit was established for the promotion of 
methane gas from Lake Kivu (UPGAZ).  This gas is  being used experimentally by Rwandan Beer and 
Soft Drinks Company (Bralirwa).  The use of energy from other sources is at the reconnaissance 
stage. 
(b) Electricity 
55. Electrical energy production in Rwanda is almost  exclusively hydraulic, even though fuel and 
solar energy are also sometimes us ed.  Electrogaz, a State enterpri se, has a de facto monopoly on the 
production and distribution of water and electricity in Rwanda.  Only 6 per cent of the population is 
currently connected to the electricity network, but Electrogaz is not in a position to satisfy the entire 
domestic demand.  The enterprise has sustained lo sses of nearly 60 per cent of amounts owed by 
customers, and is burdened by debt and outdated water supply and electricity networks, resulting in 
huge technical losses (33 per cent of electricity production and 50 per cent of water supply).56  I n  
2002, domestic production of electricity reached 98. 2 million kWh and imports, mainly from the DRC 
and Uganda, totalled 116 million kWh.   Exports to Uganda amounted to 8.4 million kWh.  In 2001, 
the supply of water and electricity re presented 0.2 per cent of real GDP. 
                                                      
56 Ministry of Finance and Economic Planning , Privatization Secret ariat (undated (a)). Chart IV.1  
Sources and destinations of energy, 2002
Source:  Ministry of Finance and Economic Planning, (2003), Energy and Water.  .Sources  Destinations  
Wood 
80.4 Households
9.0
Electricity
0.9Peat and gas  
0.1 Charcoal  1.9Petroleum 
products  6.0Agricultural
residues   
10.7Industry 
2.7
Transport
4.5Public utilities  
1.8 
 Rwanda WT/TPR/S/129 
 Page 65  
 
 
56. In 1998 the Government launched a programme of sectoral reform, to end the Electrogaz 
monopoly, restructure the company, encourage private-sector participation, and develop rural infrastructure.  The Electrogaz monopoly on production, transport and distribution of water, electricity and gas has been officially abolished.  Organi c Law No. 18/99 of 30 August 1999 provides for a two-
tiered approach to the restructuring of Electrogaz:  firstly, through a management contract, then by a 
concession or lease.  The Lahmeyer International Consortium of Germany has been retained and a 
contract to that effect was signed on 28 August 2003.  The company has been officially managed by 
the Consortium since 24 October 2003.  No date h as been set for granting a concession or lease.  A 
regulatory body for public utility services, with re sponsibility for the monitoring of production, and 
price setting for exports and imports was established in 2001. 
57. The basic rate for electricity was set at  RF 8.5/kWh by virtue of an order dated 
7 January 1988.  The rate for low voltage is RF 42/kWh, RF 42/kWh for medium voltage for 
installations of less than 100 kW and RF 10/kWh for installations of higher capacity.
57 
(c) Petroleum products 
58. Rwanda has neither oil resources nor a refinery .  All petroleum products are imported.  The 
annual consumption of refined pe troleum products is estimated at 100,000 tonnes, and these are 
imported from Kenya and Tanzania.  The Ministry with the energy portfolio is responsible for 
regulating this subsector. 
59. Around 15 oil companies operate in Rwanda.  Each company is free to import petroleum 
products.58  Rwanda has five main storage facilities in Gatsatsa and Butare with a total capacity of 
almost 15,000 m3;  smaller facilities are located in Kigali a nd Giseny.  On 5 August 1999, a contract 
was signed with Shell Rwanda for the sale, by th e Rwandan State, of 19 service stations owned by 
PetroRwanda and for a 30-year lease of the Gatsata depot.59  Shell offered US$2.1 million for the 
stations.  At the moment Shell has not fully take n over and operates only 14 stations.  Shell Rwanda 
now employs, directly and indirectly, over 200 employees. 
60. Customs duties on imports of petroleum products  are 30 per cent for gasoline and diesel, and 
5 per cent for kerosene and aviation (jet) fuel.  Othe r taxes include a 3-per cent concession licence fee, 
a warehousing profit tax (2.32 per cent of the customs value), 18 per cent VAT (except for kerosene 
imports, which are tax-exempt), and a 37-per cent domestic consumption tax on gasoline (apart from 
aircraft fuel) and on diesel oil.60  A contribution to the national roadway fund (RF 24.43/litre and 
RF 20.23/litre on gasoline and diesel imports respectiv ely) is also levied.  Apart from these taxes, 
other duties, charges and profit margins are taken in to account by the Government in setting the price 
for diesel oil and gasoline, since the prices of ot her petroleum products ar e not controlled.  For 
example, load loss costs are estimated at RF 0. 78/litre, banking fees for the four products mentioned 
are 2.5 per cent, profit margin taxes of wholesalers are RF 14/litre and for retailers RF 11/litre.  In 
January 2004, the price at the pump for gasolin e and diesel was RF 482/litre, kerosene RF 250/litre 
and aviation fuel US$0.51/litre.61 
                                                      
57 These tariffs for electricity were set by orders dated 25 June 1991, 29 July 1996 and  30 March 1997. 
58 These enterprises are: Total, Shell, Sakirw a Petroleum, Discentre,  PETROCOM, Source Oil, 
MEREZ, GAPCO, Kalinda Léonald Station Service (KLSS), Max Station, Kobil, SIGECO, and STIPPAG. 
59 PetroRwanda was liquidated in 2002. 
60 VAT was introduced in 2001 to replace the 15-per cent turn over tax (Icha). 
61 These prices were set in conjunction with the Ministry of Commerce, Industry and Tourism, the 
Rwandan Private Sector Federation and the Association of importers and distributors of petroleum products. WT/TPR/S/129 Trade Policy Review 
Page 66  
 
 
61. In terms of reliability and efficiency, road tr ansport is preferred;  rail, air and pipeline 
transport are also used.  However, because Rwanda  is landlocked, high transportation costs remain a 
major obstacle for the subsector. 
(4) MANUFACTURING  
(i) Overview 
62. The manufacturing sector is still at an embryonic stage.  In 2001, the sector employed fewer 
than 2 per cent of the active population (22,356 em ployees in 2000) and its share in real GDP was 
estimated at 8.6 per cent for 2001 (10.5 per cent in  1996).  Exports of manufactured goods are very 
limited and consist almost exclusiv ely of agro-industrial products, mainly tea, coffee and pyrethrum.  
Apart from these products, the agri-food industry is not highly developed, and output is mainly geared 
towards the domestic market.  At the fiscal level,  the main contributors to the State budget are 
Bralirwa and the cement industry.62 
63. In 2001, Rwanda had 111 small, medium and large manufacturing enterprises.63  
Manufacturing is dominated by the food processing industry (45 enterprises, 15 of which produce coffee and tea).  Food processing provides almost 70 per cent of all industrial jobs, employing 24,603 people, 15 per cent of whom work in the tea and coffee subsectors.
64  There are 
10 establishments in the furniture industry and 13 each in publication and printing, and the 
manufacture of chemicals.  The sector consists mainly of small enterprises – 88 with fewer than 
100 employees;  eight establishments have a staff of  over 500 (tea, textile and cement subsectors).  In 
2000, around 77 per cent of workers in the sector were employed by 22 public and parastatal 
entities.65 
64. Production focuses on the manufacture of goods such  as beverages, textiles, tobacco, cement, 
tea and coffee (Table IV.4).  Three areas, beve rages and tobacco-based products, food products, and 
chemicals account for approximately 66 per cent of production.  Almost two-thirds of the companies 
involved are located in Kigali.  Only 18 of th ese companies belong to foreign entities, 97 are owned 
exclusively by Rwandans, and 41 are government-invested.66 
                                                      
62 Bralirwa is also one of the la rgest employers in the private sect or, with 650 workers;  its annual 
turnover is approximately €55 million. 
63 According to information provided by the Ministry of Commerce, Industry, Investment Promotion, 
Tourism and Cooperatives, Industry and Crafts Division, 91 enterprises had more than ten permanent employees 
in June 2003. 
64 Ministry of Commerce, Industry, Investment Promotion, Tourism and Cooperatives (2002). 
65 Marchés tropicaux et méditerranéens  (Tropical and Mediterranean markets), No. 2923 (2001), 
"Spécial Rwanda", 16 November. 
66 Ministry of Commerce, Industry, Investment Promotion, Tourism and Cooperatives (2002). Rwanda WT/TPR/S/129 
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Table IV.4 
Main manufactures, 1990 and 1998-2001 
 1990 1998 1999 2000 2001 
Cattle feed  (tonnes) 3,003 2,787 2, 955 3,118 3,114 
Modern beer (000 litres ) 59,604 65,007 51, 950 44,244 47,961 
Lemonade (000 litres) 12,494 28,946 22,165 20,778 22,842 
Sugar (tonnes) 2,283 .. 2,137 1,068 6,363 
Cigarettes (millions) 347 303 217 327 278 
Textiles (000 metres) 20,037 10,346 9, 832 9,934 10,431 
Soap (tonnes) .. 6,966 6,431 5,867 7,056 
Paint (tonnes) .. 540 944 968 997 
Toothpaste (boxes) .. 1,007 5,379 28,730 5,648 
Batteries (000 cartons) .. 10 4 4 4 
Cement (tonnes) 60,000 60,030 66,291 70,716 83,024 
PVC pipes (tonnes) 1,960 2,957 3,252 3,578 3,864 
Sheet metal (tonnes) 5,988 2,588 4,575 5,435 4,532 
Nails (tonnes) 383 560 1,125 879 879 
 
.. Not available. 
 
Source: Ministry of Finance and Economic Planning (2002), Rwanda in Figures . 
 
65. According to official sources, the main factor s hampering the development of the sector are 
the high transport and energy costs, a lack of qualified personnel and training opportunities, and 
frequent power outages. 
66. The main objective of industrial policy is  poverty reduction.  Under the "Vision 2020" 
programme, the Government expects to channel inv estments into light industry for the processing of 
local resources, and to focus on economic divers ification and competitiveness within an export-
oriented setting.  In order to achieve this, detaile d files on local resources, their availability and 
markets are provided to potential investors.  The Go vernment also intends to develop the appropriate 
infrastructure (in particular transport, communicati ons, water and energy) and to provide a sound legal 
framework in which industry can thrive.  It fu rther plans to promote local change through the 
establishment of free economic zones (Chapter II (6 )), and accelerate the process of  privatization. 
67. Enterprises that have already been pr ivatized in this sector include, inter alia , the Rwandan 
Agency for the Development of the Banana Industry (OVIBAR) and the Imprimerie nationale du 
Rwanda  (Rwanda national printing works) in 1998;  SORWAL in 2000, Papeteries du Rwanda, 
(Rwanda paper mills), Sonafruits  and Tabarwanda in 2001.  Régie de l'imprimerie scolaire  (State-
owned printing works - Imprisco), the Rwanda Te xtile and Blanket Compa ny (Rwantexco) and two 
tea factories (Table AIII.3) are in the process of being privatized. 
68. Import duty on manufactured goods averages 19 pe r cent, with rates ranging between zero 
and 30 per cent.  Manufacturing is the most protected sector of the economy.  The maximum rate of  
30 per cent applies mainly to manufactures.  This  situation is evidenced by the generally positive 
escalation of duties which reflects effective levels of protection that are much higher. 
(ii) Main industries 
(a) Chemical and related industries 
69. The chemical and related industries consist of  22 enterprises, only one of which – Sulfo 
Rwanda Industries67 – employs more than 100 people;  seven ot hers have a staff of 50 to 100, and the 
                                                      
67 This company is among the 10 main VAT contributors.  It  produces, inter alia , soaps, detergents, 
cosmetics, plastic items, paperboard, pans, tins, and also sweets, mineral water, margarine and tea. WT/TPR/S/129 Trade Policy Review 
Page 68  
 
 
remainder each employ fewer than 50 people.68  These industries account for almost 4 per cent of 
manufactures.  In 2001, they contributed 0.4 per cen t of real GDP, and chemical products represented 
0.5 per cent of total merchandise exported (compare d to 0.4 per cent in 2002).  Rubber or plastic 
articles accounted for 0.1 per cent of  total goods exports in 2002 (Table AI.2). 
70. Import duties on chemicals and related products range between 0 and 30 per cent, with an 
average of 13.3 per cent.  Rubber products are the most protected (with an average tariff of 25.3 per 
cent), followed by paints, varnishes and lacque rs (24.4 per cent), and soaps (23.4 per cent). 
(b) Agri-food industry 
71. In 2001, the agri-food industry (including tobacco) represented 8 per cent of real GDP.  It 
includes approximately 30 enterprises, the largest two of which are Bralirwa and the Kabuye State-
owned sugar company.  Bralirwa operates a brew ery and a factory producing beverages under licence 
by the Coca-Cola Company.  It employs close to 600 people and is the only company in the country 
producing beer and carbonated beverage s.  In 2001, its market share w as estimated at 99 per cent;  the 
rest was imported.  Seventy per cent of Bralirwa  belongs to the Heineken Group;  the remaining 
30 per cent is owned by the State and is in the prep aratory stages of privatization.  The Kabuye sugar 
factory was privatized in 1997.  It produces white  sugar and employs approximately 300 workers.  
Among the other enterprises, 17 employ between 50 and 100 people, and the remainder fewer than 
50 workers, for the most part in the coffee industry. 
72. Average duty on agri-food imports is 18.4 per cen t, with rates ranging between 5 and 30 per 
cent.  The average tariff is 30 per cent on carbonate d beverages, mineral water, bakery and pastry 
imports;  29 per cent on wine, 26.7 per cent on distilling,  rectifying and blending spirits, 23.2 per cent 
on cocoa, chocolate and confectionery , and 22.6 per cent on dairy products. 
(c) Textile industry 
73. The textile industry is currently  composed of two enterprises – the Rwanda Textile Factory, 
(Utexrwa) and the Rwanda Textile and Blanket Company (Rwantexco).69  In 2001, textile production 
amounted to 10.4 millions metres, or 52 per cent of  the production level in 1990.  Although the textile 
industry is burdened by high production costs (ene rgy, water, transport), and probably could not 
compete with the Asian countries on the world market, Rwanda has export markets for its textiles in 
the region.  The industry could also benefit from th e AGOA arrangement in th e area of textiles and 
clothing, for which Rwanda became eligib le on 4 March 2003 (Chapter II(5)(iv)(b)). 
74. Average customs duty on textiles and textile ar ticles was 20.2 per cent, with tariffs ranging 
between 5 and 30 per cent and applied rates ex ceeding the bound rates on several goods, mainly 
carpets and tapestries and some ite ms of clothing (Table AIII.2). 
(d) Hides, skins and leather industry 
75. Only one industrial enterprise is currently pro cessing skins, hides and leather, the Nyabugogo 
Slaughterhouse ( Société d'abattoir de Nyabugogo - SABAN), a private entity formed in 1998.  
                                                      
68 In 2000, close to 2,000 persons were working in the industry. 
69 Utexrwa employs more than 500 people and produces cotton products and clothing.  Rwantexco 
employs fewer than 50 people, and is on the list of enterprises to be privatized. Rwanda WT/TPR/S/129 
 Page 69  
 
 
SABAN consists of two units:  a slaughterhouse and a tannery.70  Fewer than 50 people are employed 
in the tannery. 
76. In 2002, Rwanda exported skins, hides and l eather at a value of US$2.3 million.  These 
products hold great promise for the development of  manufactured exports, even though their progress 
has been set back by a lack of local processing capacity (tanneries).  Rwanda currently sells raw hides 
and skins and semi-finished leather to leather proces sing industries in Asia a nd the European Union.  
SABAN is now testing the processing of raw goat skin s into wet blue, and is expecting to convert 
them at a later stage to crust and finished leather. 
77. Import duties on skins, hides and leather vary be tween 5 and 30 per cent, with an average of 
20.7 per cent.  The highest rates apply to leather go ods other than footwear (average rate of 30 per 
cent) and footwear (28 per cent), followed by fu r dressing and dyeing (18.8 per cent) and leather 
tanning and dressing (14.5 pour cent). 
(5) SERVICES  
78. Services accounted for more than 45 per cent of  real GDP in 2002.  The largest subsectors 
were the wholesale and retail trade (between 9 and 10 per cent of GDP), public administration (7 per cent of GDP), and transport and communications services, whose share in GDP rose from 4.1 per cent 
in 1997 to 7.5 per cent in 2002.  Financial services are not highly developed and account for 
approximately 3 per cent of GDP. 
79. Rwanda has undertaken limited commitments  under the General Agreement on Trade in 
Services (GATS) with respect to certain professional services
71;  adult education services;  sewage 
and similar services;  hotel and restaurant services;  and recreational, cultural and sporting services in centres promoting eco-tourism.  For each of these se rvices, Rwanda has undertaken not to maintain 
any market access or national treatment restrictions for modes of supply 1 to 3 (cross-border supply, 
consumption abroad and commercial pr esence).  There has been no binding  with respect to measures 
affecting the presence of natural persons for the su pply of medical and dental services and hotel and 
restaurant services.
72  For all the remaining activities mentione d above, Rwanda has undertaken not to 
maintain any restrictions on the presence of natural persons. 
(i) Financial services 
(a) Banks 
80. The banking subsector in Rwanda consists of the National Bank of Rwanda (NBR), six 
commercial banks73, the Mortgage Bank of Rwanda ( Caisse hypothécaire du Rwanda) , the Rwandan 
Development Bank (RDB), the Union of People's Banks of Rwanda ( Union des banques populaires 
du Rwanda - UBPR), which groups savings and loans coope ratives, and Duterimbere, an institution 
specializing in micro-finance.  It was estimated  that, in 2001, 300,000 people (4 per cent of the 
                                                      
70 The Nyabugogo tannery was sold to SABAN wh en the Joint Rwandan/Li byan Company for the 
Development and Marketing of Agricultural Products  and Livestock (SODEPARAL) was liquidated and the 
Nyabugogo slaughterhouse, when the Agency for the Promotion, Sale and Importation of Agricultural Products 
(OPROVIA) was liquidated in 1998. 
71 Legal, medical, dental services. 
72 Specialized personnel and executives are the exception. 
73 Bank of Kigali, Commercial Bank of Rwanda, African Continental Bank in Rwanda (BACAR), 
Bank of Commerce, Development and Industry (BCDI), Gold Trust Bank (BANCOR), and General Banking Company (COGEBANQUE). WT/TPR/S/129 Trade Policy Review 
Page 70  
 
 
population) held bank accounts and that 200,000 of them had their accounts with UBPR.74  In terms of 
customer deposit accounts, the Commercial Bank of Rwanda (CBR), the Bank of Kigali (BK), and the 
Bank of Commerce, Development and Industry (BCDI) controlled 30 per cent, 37 per cent and 20 per 
cent, respectively, of market share in 2001.  Depos its and loans granted by the commercial banks are 
presented in Table IV.5.  These are usually short-te rm loans and are granted mainly for financing 
distribution activities and working capital for compan ies engaged in manufacturing or tourism-related 
activities  (Table IV.6). 
81. The State participates extensively in banking  activities and owns 86.75 per cent of CBR 
shares;  50 per cent of BK;  55.76 per cent of RDB;  69.02 per cent of the Mortgage Bank of Rwanda;  
2 per cent of UBPR, and 1 per cent of the African  Continental Bank in Rwanda (BACAR).  The 
Mortgage Bank is wholly State owned.75  Privatization of CBR and BACAR is under way.  UBPR 
receives indirect State aid, in the form of tax ex emptions, because of its role in poverty reduction, and 
in 2003, the World Bank provided US$50 million for th at purpose.  Foreign investors own 50 per cent 
of BK, 43 per cent of BANCOR, 34.11 per cent of RDB and 12.86 per cent of CBR. 
Table IV.5 
Commercial bank deposits and loans granted, 1999-2003 
(RF billions) 
 1999 2000 2001 2002 September 2003 
 Deposit Loan Deposit Loan Deposi t Loan Deposit Loan Deposit Loan 
BK 31.0 22.9 32.4 24.0 37.1 24.9 41.5 23.1 46.0 24.4 
CBR 23.8 18.8 27.3 20.5 26.9 19.8 25. 1 17.5 25.9 16.8 
BCDI 13.8 11.2 14.0 16.3 18.8 17.0 23.0 18.1 26.5 21.0 
BACAR 7.5 6.8 8.5 7.2 7.9 8.2 15.8 13.1 13.3 11.2 
COGEBANQUE 0.6 0.02 1.9 1.3 3.8 3.7 5.6 5.1 5.9 7.6 
BANCOR 1.1 0.3 1.5 0.7 4.3 2.5 11.5 9.0 14.0 11.2 
Total 77.8 60.0 85.6 70.0 98.8 76.1 122.5 85.9 131.6 92.2 
 
Source:  Data provided by th e Rwandan authorities. 
 
Table IV.6 
Spread of commercial bank loans¸ 1997-2001 (a) By sector 
(Percentage) 
Sector 1997 1998 1999 2000 2001 
Agriculture 0.4 0.1 0.5 1.2 1.1 
Mining 0.1 0.1 0.1 0.0 0.0 
Manufacturing 20.1 16.7 14.6 17.3 17.3 
Real estate  19.1 24.7 19.0 25.3 25.3 
Distribution and tourism 47.0 41.9 46.2 41.4 42.8 
Transport and communications 4.8 6.6 8.7 8.2 7.0 
 
(b) By term 
(Percentage) 
Term 1997 1998 1999 2000 2001 
Less than one year  70.6 64.2 69.4 56.0 53.3 
1-5 years 21.3 28.4 21.9 19.2 18.2 
More than 5 years 8.1 7.3 11.1 24.8 13.3 
 
Source: Data provided by the Rwandan authorities. 
 
82. The banking system has some problems:  in  2002 several banks failed to maintain the 
minimum capital to risk-weighted assets ratio (8 pe r cent);  the proportion of bad loans increased from 
10.4 per cent of the total value of loans to the privat e sector in 1997 to 38.5 per cent in 2001.  This is 
                                                      
74 Ministry of  Finance and Economic Planning, Privatization Secretariat (2002c). 
75 Another institution, the Savings Bank of  Rwanda, ( Caisse d'épargne du Rwanda),  has been 
liquidated. Rwanda WT/TPR/S/129 
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partly due to an adjustment of accounts on the part of  financial institutions to reflect loans affected by 
the 1994 crisis (death of some debtors, impoverishment  of others, and the destruction of guarantees).  
It is also due to the failures of the commercial cour ts in enforcing the performance of contracts, and of 
the land tenure system with respect to the rea lization of land guarantees.   Between 1995 and 1998, 
several banks invested in real estate and road transport without carefully assessing the risks.  
Exogenous shocks have contributed76 since 1998 to a reversal in the economic climate which has 
increased the volume of bad debts. 
83. Under the provisions of the 1999 law on banks an d other financial institutions, the NBR is 
responsible for regulating and supervising the ba nking system. NBR approval is required for the 
establishment of any financial institution or branch office.77  An application for such approval must be 
submitted to the NBR, stating the purpose of th e institution to be established, with detailed 
information on the share ownership78, and must include a feasib ility study showing financial 
projections over a five-year period and explaining the assumptions on which those projections are based.  A minimum capital endowment is required, together with a commission to be paid to the 
NBR;  the amounts required vary depending on the natu re and purpose of the institution.  Since 2001, 
the minimum capital requirement has been RF 1. 5 billion for commercial banks, RF 3 billion for 
investment or development banks, 500 million fo r merchant banks;  200 million for savings funds, 
300 million for financial credit institutions, 10 milli on for financial associations or cooperatives, 
commission agents or brokers, and foreign currenc y exchange bureaux, and 100 million for portfolio 
management firms (Table IV.7).
79  This requirement extends e qually to foreign and Rwandan 
establishments.  In the event that a foreign institu tion has majority ownershi p, prior consent of the 
monitoring authority in the country of origin is essential.  The NBR may request any additional 
information it deems necessary, inter alia  to ascertain the lawful origin of funds, the effective 
management monitoring capacity of the institution  based on the calculation rules for voting rights, and 
the integrity and competence of the intend ed administrators, directors and managers.80 
84. Merger absorption operations are subject to  approval by the NBR upon submission of the 
following:  resolutions adopted by the general asse mbly;  five-year financial projections;  and an 
                                                      
76 The withdrawal of several foreign aid organizations has contributed to a slump in the real estate 
market in Rwanda.  The COMESA's decision to limit the to tal authorized weight for road transport in the region 
to 30 tonnes per axle has also limited prospects for growth in this subsector. 
77 Instruction No. 04/99 on the classification of ba nks and other financial institutions distinguishes 
between various types of banks (commercial banks, devel opment or investment banks, and merchant banks);  a 
category entitled "other financial institutions" and including saving funds , financial credit institutions, financial 
associations and cooperatives, portfolio management, or  securities firms, and brokerage companies;  and a 
category for "approved intermediaries", including any financial institution that has obtained the approval of the NBR to conduct, alongside its main activities, fo reign exchange or foreign trade transactions. 
78 Legal persons are required to prov ide reports certified by an external or independent auditor covering 
the last three business cycles;  on the composition of their boards of directors and the rules governing the calculation of voting rights;  their capital structure and re ports certified by an external or independent auditor on 
their legal shareholders holding 5 per cent or more of their capital.  Persons holding 5 per cent or more of the 
capital must provide their curriculum vitae and a copy of an extract from their police record. 
79 Annex to Instruction No. 05/99 of 14 October 1999 on the legal and financial conditions for access to 
the banking profession or setting up a financial establishm ent.  Institutions had until April 2002 to increase their 
capital. 
80 No person who: has declared personal bankruptcy; has been involved as an executive or shareholder 
in the failure of a bank, financial establishment, or an y other commercial entity;  or has been convicted as the 
perpetrator or accessory to an offence (particularly counterfeiting or falsifica tion of bank notes;  forgery and use 
of forgeries;  infringement of foreign trade and foreign exchange legislation or regulations;  corruption; theft, 
extortion, embezzlement, br each of trust, fraud, possession of stol en goods, tax fraud;  and crime) may 
administer, direct, manage, engage, or control a financial institution. WT/TPR/S/129 Trade Policy Review 
Page 72  
 
 
expert report certified by an inde pendent expert selected from a list approved by the NBR.  These 
measures apply regardless of whether the merger absorption operation involves Rwandan or foreign 
institutions.  There have been no merger absorpti on operations approved by the NBR since 1999.  In 
order to set up business abroad, a Rwandan financia l institution must obtain authorization from the 
NBR and observe the releva nt domestic regulations.81 
Table IV.7 
Legal and financial conditions governing  banks and financial institutions 
Fees payable to the NBR 
(in RF) Categories Legal status Capital 
requirementa 
(in RF) At the time 
of applying 
for approval  At the time of opening or 
transferring subsidiaries, 
branches or offices 
bureauxb 
Banks     
Commercial banks Public limited company 1,500,000,000 1,000,000  100,000 
Investment or development banks Public limited company 3,000,000,000 1,000,000  100,000 
Merchant banks Public limited company 500,000,000 500,000 50,000 
Other financial institutions     
Savings funds  Public limited company 200,000,000 200,000 20,000 
Financial credit institutions  Public limited company or 
private limited company 300,000,000 300,000 30,000 
Associations or cooperatives  Cooperative 10,000,000 10,000 1,000 
Portfolio management firms All forms 100,000,000 100,000 10,000 
Commission agents or brokers All forms 10,000,000 10,000 5,000 
Foreign exchange bureaux All forms 10,000,000 20,000 c 
 
a The entire amount of declared capital must be brought in. 
b In the case of closure, there is no fee. 
c Foreign exchange bureau approval is required.  
Source: Data provided by the Rwandan au thorities, Annex to Instructi on No. 05/99 of 14 October 1999. 
 
85. Managers of banks or financial in stitutions are required to have resident status, that is, in the 
case of a natural person, to be domiciled in Rwanda, or, in the case of a legal person, to be registered 
in, or operate from, Rwanda.  Conditions for access to the banking profession in Rwanda are similar 
to those governing the exercise of management duties.  Access to the banking profession is not 
restricted to residents, and no specific requirements are imposed on foreigners. 
86. The prudential regulations are similar to the international standards of the Basel Committee 
(Bank for International Settlements) drawn up in 1988 and amended in 1991.82  Since December 
2003, banks and financial in stitutions are required to maintain a minimum 10-per cent ratio of net 
equity to total assets on and off the balance shee t.  However, Rwandan law does not distinguish 
between the various types of equity ("Tier1"/"Tier2")83;  for example, provisions on reserves are 
classified in the same manner as capital endowments.  The Rwandan asset-weighting system for 
calculating the above ratio divides assets into six broad categories.84  It differs from the provisions of 
                                                      
81 NBR approval is required for other transactions which imply substantial amendments to the initial 
terms of approval, inter alia :  any change resulting in a reduction of the equity or capitalization provided (in full 
or in part) other than through a fresh supply of liquid assets;  any significant change to the capital structure, 
particularly when one or several shareholders acquire 5 per cent or more of the capital;  any change in activities 
that would imply a change in the category under which th e financial institution is registered;  any transfer of 
assets equal to, or higher than, 10 per cent;  and any change in the composition of the board of directors or 
senior management, or any appointment of heads of departments (NBR Instruction No. 10/2000). 
82 Bank for International Settlements (1988). 
83 NBR Instruction No. 01/2000 regarding the solvency ratio of banks and other financial institutions. 
84 The weight of balance-sheet commitments ( inter alia , short and long-term loans) and off-balance 
sheet commitments on behalf of clients, is 100 per cent;  signed commitments on their behalf (for example, tax or customs surety bonds, or surety bonds in favour of procuring entities) 25 per cent;  claims on banks abroad Rwanda WT/TPR/S/129 
 Page 73  
 
 
the Basel Committee in that it gives ( inter alia ) a 20- rather than the 100-per cent weighting assigned 
by the Committee to bank claims exceeding one year on banks incorporated outside the OECD.  Such 
weighting underestimates the level of risk and undermines prudential rules.  Since September 2001, 
all financial institutions are required to maintain a minimum liquidity ratio of 100 per cent.  In other 
words, the value of assets that are available and/or may be realized at short notice must be at least 
equal to short-term liabilities.85  Fixed capital and valueless assets net of amortization, and equity 
stakes (net of provision for depreciation) shoul d not exceed 75 per cent of the gross capital base.86 
87. Measures have also been provided for risk sharing.87  Equity investment by a bank or 
financial institution in the capital of an enterprise must not exceed 15 per cent of its net equity and 
20 per cent of the capital of the enterprise (25 per cent in the case of an investment or development 
bank or merchant bank).  Total holdings may not exceed 60 per cent  of the financial institution's net 
own funds;  the limit may be raised to 75 per cent for investment or development banks and merchant 
banks.88 
88. Financial institutions based in Rwanda are requi red to establish systems to control internal 
operations and procedures;  accounting and data processing systems;  risk assessment and 
performance evaluation procedures;  risk m onitoring and management, and documentation and 
information systems, among others.  All banks ha ve implemented internal control mechanisms, but 
problems persist in practice.  A deposit guarantee fu nd, managed by the NBR, is envisaged.  It will be 
financed by contributions from fi nancial institutions;  loans;  divi dends, and other potential resources.  
The fund will be run by a management board compri sed of representatives of the NBR, the banks and 
an official from the Ministry responsible for finance. 
89. The law on foreign exchange regulations, a dopted in 2003, authorizes Rwandans living 
abroad to open and manage accounts abroad.  Howe ver, they are required to close them and to 
repatriate their foreign currency when they re turn to Rwanda.  Approved banks may open accounts 
and maintain credit balances abroad, and they ma y also open foreign currency accounts for residents 
and non-residents alike.  Approval by the NBR is re quired for Rwandans residing in Rwanda to open 
accounts abroad. 
90. Specific rules apply to micro-financing institutions.89  These institutions must receive NBR 
approval before starting operations .  A capital endowment of RF 5 million (RF 4 million if the request 
for approval involves only the granting of credit) must be deposited in a blocked account with the 
NBR, as well as a commission of RF 50,000.  The N BR should also be provided with the information 
necessary to verify, inter alia , the professional experience and good reputation of the executives 
involved, and the developers' aptitude to successfu lly achieve their development objectives according 
                                                                                                                                                                     
25 per cent;  claims on banks located in Rwanda 20 per cent;  commitments in respect of the State and 
international non-financial institu tions receive a weighting of 0. 
85 NBR Instruction No. 04/2000 regarding the liquidity ratio of banks and other financial institutions. 
86 NBR Instruction No. 05/2000 of the NBR regarding the ratio of coverage of fixed assets and other 
medium- and long-term liabilities by the permanent resources of banks and other financial institutions. 
87 In compliance with Instruction No. 02/200 of the NBR regarding rules on risk sharing and coverage 
applicable to banks, risks on a singl e debtor or several debtors belonging to a single group must not exceed 25 
per cent of net equity;  risks on an administrator or manager of a bank or financial institution must not exceed 5 
per cent of net equity;  the total amount of risk on ma nagers, administrators, and shareholders whose equity 
ownership is higher than 10 per cent must not exceed net equity. 
88 NBR Instruction No. 06/2000 on equity investment by banks and other financial institutions. 
89 NBR Instruction No. 06/2000 on the regulation of mi cro-finance activities.  In this context, micro-
finance is taken to mean granting loans to, and/or borrowin g by a clientele that is "not usually serviced by the 
traditional banking and financial system and/or does not have sufficient collateral as a guarantee of reimbursement of the credit granted."  WT/TPR/S/129 Trade Policy Review 
Page 74  
 
 
to terms conducive to the proper functioning of th e banking and financial system.  These conditions 
also apply to micro-finance institutions which belong  to, or are affiliated with, foreign institutions or 
institutions whose headquarters are located outsi de Rwanda.  Management of a micro-credit 
institution may be exercised by foreign nationals who have lived in Rwanda for a minimum of one 
year.  Only one such institution has been approved since 1997. 
91. Minimum liquidity requirements are the same as  for traditional financial institutions.  Micro-
finance institutions are required to maintain equity  corresponding to at least 10 per cent of their risk-
weighted assets.  The same weighting system is the same as that applied by traditional financial institutions.  A micro-finance institution may not gran t guarantees or loans to a single person or group 
for an amount exceeding 2.5 per cent of the total deposits.  The total amount of risk incurred by a micro-finance institution may not exceed 80 per cent of the deposit base of its customers or members 
(or 60 per cent of net equity for institutions that do not handle savings).  Micro-finance institutions are 
required to implement an inte rnal control system to assess inter alia  their financial policies and 
practices, the quality and reliability of their accounti ng, and conformity of their operations with the 
pertinent regulations.  There is a network of  micro-finance banks, consisting of UBPR and 
148 people's banks.
90  Inspections of micro-finance institu tions by the NBR should begin as of 
15 March 2004. 
(b) Insurance 
92. The insurance subsector includes three commercial entities, SONARWA, COGEAR and 
SORAS, which offer a conventional range of insura nce products (life, health, property).  To these 
should be added the Rwandan Insurance and Re-insurance Company  (CORAR), whose shareholders 
consist exclusively of institutions belongi ng to the Rwandan Catholic church, and the  Caisse sociale 
du Rwanda , a State-owned institution with responsibility for social security (health, old age and 
disability insurance) mainly for civil servants.  SONARWA holds a leading position in the insurance 
market, accounting for 75 per cent of total pr emiums.  The Government owns 60 per cent of 
SONARWA shares (10 per cent directly, and 50 per cent through the Caisse sociale du Rwanda ) and, 
therefore, has broad influence over the subsector. 
93. Under the 1982 law establishing conditions on th e insurance industry, the provision of 
insurance coverage is exclusively reserved for lega l persons incorporated under Rwandan law.  The 
1982 law also sets a minimum threshold of 30 per cent for Rwandan ownership in the equity of any insurance company.  The establishmen t of an insurance company is subject to prior authorization by 
the President of the Republic.  The National In surance Control Commission, under the Ministry 
responsible for finance, was created in 2002 to revi ew compliance with the terms of approval.  The 
Commission is also responsible for supervision of th e subsector, mainly in issues relating to solvency 
and rates.  Insurance premiums are currently set by the companies themselves, but in future they will 
be determined by the Commission. 
(ii) Telecommunications 
94. Rwanda had 17,568 fixed telephone lines in 2000, i.e.  a teledensity of 0.2, one of the lowest 
in the world (Table IV.8).  The total demand for fixed-line telephony is estimated at 70,000, but the 
saturation of cable networks and a lack of res ources necessary for funding an expansion of the 
network system are obstacles  to raising teledensity.
91  This contrasts greatly with the dramatic 
increase in mobile telephony.  Since the first licen ce was granted for mobile phone services in 1998, 
                                                      
90 As at 31 March 2003, the value of their deposits was RF 18.9 billion and the value of loans was 
RF 11.9 billion. 
91 Marchés tropicaux et méditerranéens  (2001), "Spécial Rwanda", November. Rwanda WT/TPR/S/129 
 Page 75  
 
 
the number of subscribers has surged, from 5,000 to almost 140,000 in 2003 (equivalent to 
1.64 subscribers per 100 inhabitants).  Fixed- line telephony services are mainly provided by 
RwandaTel SA, a State company.92  This enterprise also owns 28 per cent of the shares in MTN 
Rwandacell, the only mobile phone operator;  the remaining shares of MTN Rwandacell are owned by 
two private foreign investors. RwandaTel SA has c ontacted a private operator, Artel, to establish and 
operate a network of public telephones by  relay satellite, mainly in rural areas. 
Table IV.8 
Telecommunications:  basic indicators, 1997-2002 
 1997 1998 1999 2000 2001 2002 
Teledensity 0.19 0.2 0.16 0.17 0.23 .. 
Percentage of lines connected to  digital exchanges 100 100 100 100 100 100 
Public telephones 300 350 360 400 .. .. 
Cellular subscribers - 5,000 11,000 39,000 .. .. 
Cellular density - 0.08 0.15 0.5 .. .. 
Outgoing international traffic (thousa nds of minutes) .. 3,000 5,000 5,000 .. .. 
Incoming international traffic (thousands of minutes) .. .. .. .. .. .. 
Revenue (US$ million) 17 19 18 18 .. .. 
Annual investments (US$ million) .. .. 17 .. .. .. 
Investments (as a percentage of gross capital formation) .. .. 4.9 .. .. .. 
Number of Internet users 100 800 5,000 5,000 .. .. 
 
.. Not available. 
 Source : ITU(2001), African Telecommunications Indicators ;  and data provided by the Rwandan authorities. 
 
95. The subsector is governed by Law No. 44/2001 of 30 November 2001 regulating 
telecommunications.  The Ministry responsible for transport and telecommunications is the 
supervisory body of RwandaTel SA and formulat es domestic telecommunications policy.  A public 
utilities regulatory agency and its supreme body, th e Regulatory Board, were established in 2001.93  
Standard licences are delivered in four weeks by th e Board and individual licences in three months by 
the competent authority, on the Board's recommendation .94  The Law makes it mandatory for 
networks to be interconnected, where requested by  one of the public telecommunications operators. 
96. The Law requires public telecommunications operato rs to offer individuals and organizations 
connection to a public telephone service in the region  of Rwanda for which their individual licences 
have been issued.  It also establishes a "univer sal access fund", made up of contributions by the public 
telecommunications operators.  These contributions are set by the Regulatory Board (maximum of 
4 per cent of turnover).95  The aim of the fund is to facilitate  the broadest possible access to public 
telephony throughout Rwanda.  Pub lic network operators and provide rs of public telephone services 
themselves set and submit the tariffs to the Regul atory Board, which may ask them to reduce their 
rates to a level that reflects the cost of providi ng the service.  The rates of interconnection negotiated 
between operators must also observe the principle of approximating real costs. 
                                                      
92 RwandaTel SA was formed in January 1993, succeeding the Rwandan PTT.  The company earned 
profits of US$3.8 and 4.6 million  in 1999 and 2000 respectively. 
93 The Agency was created by virtue of Law No. 39/2001 of 13 September 2001 establishing the 
Agency for the Regulation of Public Utility Services.  It is in charge of providing these services, guaranteeing fair competition, facilitating and encouraging private investment, and implementing sectoral legislation.  It is 
partially funded by annual levies base d on a percentage of turnover from each public utility service.  This 
percentage has been set at 2 per cent. 
94 A standard licence enables its holder to provide a specific type of network and/or 
telecommunications services.  Individual licences are issu ed by Ministerial decision for the provision of public 
network and/or public telecommunications services, subject to specific rights or obligations.  
95 The annual rate of contribution of each operator is set by 31 January at the latest. WT/TPR/S/129 Trade Policy Review 
Page 76  
 
 
97. There are currently two operators providin g fixed-line telephony - RwandaTel and Artel 
(rural telephone services).  RwandaTel is the owne r of the network system;  interconnection is 
governed by agreements between ope rators.  According to the author ities, two licences were awarded 
in 2003 – one to Rwandacell for fixed telephony and th e other to RwandaTel for mobile telephony;  in 
practice, the two operators specialize in their r espective original areas of  competence for the time 
being. 
98. The Government envisages the privatization of RwandaTel (except the "Telecom House" 
building) in 2004;  80 per cent of the shares will be sold to a strategic foreign investor, 18 per cent will be reserved for Rwandan investors and 2 per cent for RwandaTel personnel. 
(iii) Transport 
(a) Road transport 
99. Rwanda's road network covers  approximately 14,000 kilometr es, 7.3 per cent of which is 
asphalted.  Despite a road density of 0.52 km per sq uare kilometre, one of the highest in Africa, the 
poor road conditions (particularly the unasphalte d roads) and interconnection network make it 
difficult to reach markets in the interior:  it is esti mated that close to 50 per cent of the mostly rural 
population live more than an hour away from the nearest market.  Because of the great distance 
separating Rwanda from shipping ports (over 1,500 km),  and the state of road transport infrastructure 
in the subregion, there is an implicit tax ( on international trade) of over US$160 per tonne. 
100. Road policy falls within the ambit of the Mini stry dealing with public works and transport;  
the network of minor roads is managed by the local authorities.  The main priorities are to continue 
the rehabilitation of roads damaged by the 1994 conf lict, raise the proportion of asphalted roads and 
ensure the maintenance of existing road infrastructure.  The purpose of the road maintenance fund has 
been altered in order to provide funding for the road projects presented by the Ministry.  It is partially 
funded by income from a fuel tax, earmarked in part for the maintenance of local roads.  The 
Government has opened the market for road works to private enterprises. 
101. Public transport services are open to private competition.  However, the national public 
transport agency (ONATRACOM), a State enterpri se, provides 30 per cent of passenger transport, 
mainly serving rural areas.  ONATRACOM does not r eceive State subsidies.  Foreign transport 
providers are free to operate in   Rwanda.  Cabotage is prohibited, except upon request and only 
pursuant to an agreement between Rwanda and the c ountry of which the applicant is a national.  In 
practice, road transport rates are set join tly by the operators and the Government.
96 
(b) Air transport 
102. Rwanda has three airports, the main one bei ng Kigali-Kanombe.  Airport operations are 
managed at the moment by the Ministry in charge of infrastructure.97  The airports are the 
responsibility of the Régie des aéroports du Rwanda98, an agency under the authority of the Ministry 
in charge of public works, transport and communicat ions.  The number of pass engers using the airport 
(departures, arrivals, transit) ranges between 120,000 and 130,000 depending on the year.  Some 
ground services – fuel supply, freight handling – are provided by private companies;  maintenance is 
                                                      
96 There is a ministerial order pertaining to  price-setting, but it is old and obsolete. 
97 The establishment of a Rwandan civil aviation auth ority is envisaged (the enabling law has already 
been adopted by Parliament). 
98 Established in 1986. Rwanda WT/TPR/S/129 
 Page 77  
 
 
carried out by Rwandair Express.  Departure taxes, included in the price of tickets, are US$20 per 
passenger travelling outside COM ESA and US$10 within COMESA.  
103. Rwanda signed the Yamoussoukro agreements in 2000, but it has not yet implemented the 
measures provided.  It has also concluded an open skies agreement with the United States.  There is 
also an agreement within the CO MESA framework aimed at replaci ng bilateral agreements between 
member States and at liberalizing the subsector;  Fifth Freedom rights are currently granted only by 
Uganda. 
104. Foreign companies allowed to service Rwanda are determined by prior bilateral agreement 
between countries.  At present the companies flying to Rwanda are, inter alia :  Air Burundi, Ethiopian 
Airlines, Kenya Airways, SN Brussels Airlines, South African Airways and Rwandair Express, a 
public company created in 2002 to replace Alliance Express.  Rwandair Express serves domestic and 
regional destinations.  Ca botage is prohibited. 
(iv) Tourism 
105. The finest tourist attractions in Rwanda are its natural sites: the Volcanoes National Park  (in 
the northwest), which is the most popular and is a habitat for mountain gorillas;  the Akagera National 
Park (in the east);  the Nyungwe National Park  (in the southwest);  and Lake Kivu.  During the 1990s, 
tourism was gravely undermined by the country's inst ability, and the number of visitors, measured by 
the visitor count in the national parks, fluctuated  between 61 and 5,384 per year in the period 1990-
1999, compared to 19,084 - 23,698 between 1985 and 1990.  Although there was some increase from 
2000 to 2003, (the threshold of 10,000 visitors  was crossed in 2002, reaching 16,478 in 2003)99, the 
development of tourism is still marred by comp etition from other countries of the sub-region, 
particularly Uganda, Tanzania and Kenya, which have similar attractions, greater stability, more 
reliable infrastructure, and enjoy a greater internatio nal reputation.  In the 1980s, tourism represented 
1 per cent of real GDP, and was the third largest sour ce of export income.  Its current share of GDP is 
unknown but, by all appearances, it will be lower th an the previous 1980s le vel.  Tourism-related 
activities are reported to generate employment for 5, 000 people.  According to the authorities, tourism 
revenue has yet to regain its pre-genocide level.  In 2001, Rwanda's hotel capacity was 2,502 beds. 
106. Tourism policy is mainly formulated by the Ministry with responsibility for tourism.  Sectoral 
policy for the 2003-2010 period aims to increase a nnual tourism earnings to US$100 million, and to 
raise the number of visitors per year to 70,000.  The promotion of eco-tourism, cultural tourism and 
domestic tourism are special areas of priority.  The achievement of these objectives would require a total investment of US$103 million spread over the eight-year period up to 2010.
100  Almost 40 per 
cent of that amount would be allocated to building or improving hotels.101  The privatization of hotels 
should attract foreign investment into the subsector.  Five hotels were privatized by the end of 2003, 
and another is to be privatized in 2004.  Tw o State-owned hotels – the Intercontinental and the 
Kivusun – are run by private entities.  Under the GA TS, Rwanda has undertaken not to maintain any 
market access or national treatment restrictions fo r modes of supply 1 to 3 of hotel and restaurant 
services. 
107. All tour operators wishing to set up a business in Rwanda must register with the Rwanda 
Investment Promotion Agency (RIPA).  The occupation of tour guide is governed by local provisions.  
Licences and permits required to establish and mana ge hotels are issued free of charge.  At the 
                                                      
99 In 2003, one-third of total visitors were local. 
100 Government of Rwanda (2002). 
101 This sum of US$103 million will be raised from various sources, as follows:  36 million will be 
provided by the private sector, 43 million by the Government, and 24 million by donors. WT/TPR/S/129 Trade Policy Review 
Page 78  
 
 
moment, room rates are set by the hotels, but in future they will be regulated by a new law.  The 
Government does not own any travel agencies.  At present, there are no standards of control 
applicable to hotels and restaurants.  The Governme nt is in the process of preparing a framework law 
on tourism, which will be supported by decrees gove rning the activities of travel agencies, and 
establishing standards and ratings for restaurants and hotels.  Restaurants are expected to be rated 
according to a system of scores, from 1 to 4 forks, and hotels would be rated from 1 to 5 stars.  
MINICOM, the Ministry responsible for the rating process and for monitoring the implementation of 
the rules, will be assisted in  these tasks by a commission.  The Rwandan Office of Tourism and 
National Parks (ORTPN) has been restructured, unde r a law adopted on 1 November 2003, to create a 
genuine office of tourism in charge of implementing all policy affecting the sector, park conservation, 
management of protected areas and th e promotion of tourism in Rwanda.102  Consideration is also 
being given to the establishment of a Rwandan tourism development fund. 
 
                                                      
102 The ORTPN is mainly involved in the sale of admission tickets to the Volcanoes National Park. Rwanda WT/TPR/S/129 
 Page 79  
 
 
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