Promoting Private Sector Investment in Rwanda: Acase study of Rwanda Private Sector Federation
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Date
2013
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Publisher
Kabale University
Abstract
The purpose of this study was to investigate the role of Rwanda Private Sector Federation in the
promotion of investments. To achieve that objective, questionnaires, interview guides and focus
group discussions were used as research instruments. A total of 70 respondents were involved in
this study comprising of PSF staff and sectoral associations members, government officials and
other private sector operators who are not enlisted with PSF The results show that Private Sector
Federation has played a crucial role in the promotion of investments in Rwanda as judged by
respondents--participating in local business exhibitions and trade fairs (70 percent), in local
investment seminars and missions (14 percent). However, PSF contributed less by participating
in regional and international investment seminars and missions (5 percent), and in Regional and
International business exhibitions and trade fairs (2 percent). The private sector also played an
outstanding role in Public Private Partnerships (PPP) with the government in some priority
projects of the country. The results also showed that PSF achieved success in policy advocacy by
influencing the government for the removal of non service based fees, in the review of business
laws, labour code and national social security policy. Among the challenges raised by Private
Sector operators with regards to investment promotion in Rwanda are shortage of skilled labor
(20 percent), limited access to finance (16 percent), tax barriers (20 percent) and low business
management skills (11 percent), while robust governance and absence of corruption (30 percent),
access to markets (25 percent) untapped opportunities in agriculture, energy and tourism (14
percent).and sustained high economic growth (16 percent) are the main opportunities available to
them. The investigation showed that there is a great need for closer relationships between PSF
and the government in every endeavor aimed at promoting investments in Rwanda, as well as in
addressing challenges encountered by private companies. Towards that end, a new model for a
successful investment promotion framework in Rwanda has been proposed.
Description
Keywords
Private sector, Investement
Citation
African Development Bank (2011) Public–Private Partnership Infrastructure Projects: Case Studies from the Republic of Korea, Manila, Philippines.