RWANDA Law and Practice Contributed by: Aimery de Schoutheete and Penina Ngabire, Liedekerke Great Lakes
tion under the Investment Law, or a double tax treaty assigns taxing rights differently. Transfer Fees In any event, transfer fees are applicable to the transfer of an ML or a QL. Depending on the type of licence (exploration, mining, processing or trade licence) and the size of the licensed area, the fees vary between RWF900,000 and RWF4.5 million (USD700 and USD3,700). 5. Mining Investment and Finance 5.1 Attracting Investment for Mining Mining activities relating to mineral exploration and export are considered priority economic sectors and therefore benefit from various investment incentives, both tax related and non-tax related. To benefit from these incentives, the mining investor must obtain an investment certificate issued by the RDB. Tax Incentives Tax incentives available to mining investors are dis - cussed in detail in 4.2 Tax Incentives for Mining Investors and Projects . Non-Tax Incentives In addition, a mining investor can benefit from the fol - lowing non-tax incentives: • the RDB can assign a key account manager at the RDB One Stop Centre to assist the company with administrative tasks; • the RDB can provide notary services to the com - pany; • the RDB can facilitate access to utilities (water and electricity); • the RDB can conduct environmental impact assessments and evaluations; • the RDB can facilitate land acquisition and the obtaining of permits in collaboration with the Kigali City Council One Stop Centre for construction; and • the RDB can facilitate the obtaining of visas and work permits (in this respect, a registered investor who invests the equivalent of at least USD250,000 may recruit three foreign employees without neces -
sarily demonstrating that their skills are lacking or insufficient in the labour market in Rwanda). 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors There is no restriction on foreign investment in the exploration and mining sectors. However, any investors wishing to carry out mining- related activities must incorporate, or partner with, a local entity, as MLs and QLs can only be granted to companies registered in Rwanda. 5.3 International Treaties Related to Exploration and Mining Rwanda is not a party to multilateral or bilateral trea - ties specifically related to mining. That said, Rwanda is a party to: • the ICSID Convention, which provides for set - tlement by conciliation, mediation or arbitration of disputes arising directly out of an investment between a contracting state and a national of another contracting state; • various bilateral investment treaties (BITs) aimed, among other things, at protecting foreign investors against unfair treatment and illegal expropriation; and • various double tax agreements (DTAs) aimed at avoiding the double taxation of income for compa - nies. Rwanda is also considering joining the Kimberley Pro - cess Certification Scheme to facilitate the diamond trade. 5.4 Sources of Finance for Exploration, Development and Mining The main sources of financing include ordinary finance methods such as debt financing (mainly through com - mercial banks) and equity finance. In addition, the government may acquire shares in mining or quarry operations on such terms as agreed between the LH and the government.
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