The World Bank will set up a new platform in Rwanda to protect foreign investors amid concerns that when they get here, their businesses face various threats.
The Banks is scheduled to establish what has been called as ‘Systemic Investment Response Mechanism (SIRM)’ within the next three years.
The new platform is part of areas agreed with Government in the ‘Country Partnership Framework’ (CPF) running between July 2020-July 2023. For this period, the Bank has allocated US$912 million that will go to different sectors.
The document detailing the CPF was published last week and now available online.
Among the actions from the new financing is that investor office which will “better detect, manage and track investor grievances in the pre-establishment, establishment and post-establishment phases of FDI.”
“The impact on long-term growth of better contract enforcement and well-functioning courts is also very important,” says the partnership agreement.
“This will help address issues or problems before they have escalated into full-fledged investment legal disputes.”
There have been longstanding concerns in the business community that government entices investors to enter, but then leaves them to struggle on their own against very serious hurdles.
The Rwanda Development Board (RDB) which handles investment, has since 2017 introduced the so called “Investor Open Day” which was taking place every Friday. It was temporarily stopped due to the COVID-19 pandemic.
RDB says the Day was set aside to listen to investors and resolve their complaints.