RWANDA Law and Practice Contributed by: Aimery de Schoutheete and Penina Ngabire, Liedekerke Great Lakes
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 commercial 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. 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining Several major companies (including the main commercial banks and the first telecoms opera - tor) are listed on the Rwandan Stock Exchange (RSE). However, most companies undertaking explo - ration and mining activities in Rwanda will raise funds from international markets such as the London Stock Exchange, the Toronto Stock Exchange and the Australian Securities Exchange. 5.6 Security over Mining Tenements and Related Assets Securities on movable property, like an ML or a QL, are governed by Law No 34/2013 of 24 May 2013 on security interests in movable property (the “Law on Security Interests”). Scope of the Law In a nutshell, the Law on Security Interests applies to all rights in movable assets created by an agreement that secures payment or other performance of an obligation, regardless of the form of the transaction, the type of movable assets, the status of the debtor or secured credi - tor, or the nature of the secured obligation.
employees without necessarily 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 min - ing-related activities must incorporate, or part - ner 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 treaties specifically related to mining. That said, Rwanda is a party to: • the ICSID Convention, which provides for settlement by conciliation, mediation or arbi - tration 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 companies. Rwanda is also considering joining the Kimber - ley Process Certification Scheme to facilitate the diamond trade.
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