Monday, September 10, 2018 – Friday, September 14, 2018
Rwanda is lobbying to join the Organization for Economic Co-operation and Development (OECD) as it intensifies efforts to mobilize private investment. Joining international platforms such as the OECD could provide a way to lobby for international investors.
Rwanda, represented at the Forum on China–Africa Cooperation (FOCAC) by President Paul Kagame, signed a memorandum of understanding with the China-Africa Development Fund (CAD) to accelerate joint ventures between Rwandan and Chinese investors. The value of the agreement under this deal is still unknown but the Development Fund’s basket is worth $10 billion aimed at facilitating foreign direct investments from China to Africa.
Rwanda’s decision to cap the number of fees subsidiaries can pay to their mother companies could have far-reaching effects on technology and intellectual property-driven businesses. A provision in the new income tax law which came into force in April caps management, royalty and technical fees local companies pay to their related non-resident companies at two per cent of the turnover. The objective of this new regulation is to check capital flight, a practice the taxman say is used by multinationals seeking to minimize tax payments to reduce profits of subsidiaries, so that they pay less corporate tax.