<h1>Renew Capital’s East Africa Investment Survey Results</h1>At Renew Capital, we believe that Africa's economic potential hinges on its ability to develop and expand its small and medium enterprises (SMEs), especially as it rolls out its African Continental Free Trade Area.&nbsp;In an effort to confirm gaps and needs for entrepreneurs, Renew Capital launched an&nbsp; East Africa Investment Survey recently. The responses from more than 300 companies across the region confirmed that Renew Capital’s gender-smart ecosystem-building work remains crucial and is helping us further refine our capacity building efforts.&nbsp;The top three findings from the survey are:<ul><li>Women-owned Company Growth Lags Behind -&nbsp;The survey showed that female entrepreneurs continued to lag behind their male counterparts in building high revenue companies.&nbsp;Male-owned companies in the sample were able to hire more employees and began experiencing higher revenues at an earlier phase. While majority female-owned companies appeared to catch up as they grew, they fell behind in revenue again by the time they reached maturity.&nbsp;</li><li>Companies are Missing Regional Trade Opportunities&nbsp;-&nbsp;Approximately half of the companies in the sample have yet to take advantage of the broader regional market through cross-border trade. In addition, SMEs reported difficulty accessing capital and&nbsp;consistently reported access to markets as one of the most significant barriers to growth. Infrastructure issues and skilled management were also frequently reported as primary barriers to growth.&nbsp;</li></ul><figure class="image"><img src="/uploads/Regional_Trade_by_Country_fa0255669d.png"></figure><figure class="image"><img src="/uploads/Barriers_to_Growth_0c47a7fb64.png"></figure><ul><li>No Surprise, Entrepreneurs are Optimistic&nbsp;-&nbsp;Despite these barriers, entrepreneurs remained optimistic about the economic outlook. Most companies expressed a basic level of security about economic prospects within their countries as well as across the region. Even politically, few companies predicted that the economic situation in their country or region would deteriorate.</li></ul><figure class="image"><img src="/uploads/Regional_Economic_Outlook_444d1991db.png"></figure>&nbsp;Survey respondents were asked questions along six dimensions: Access to Capital; Growth and Trade; Gender Equality; Climate/Environmental Sustainability; Management Capacity; and Outlook on the Future. Respondents include 323 unique companies that have headquarters in Ethiopia, Kenya, Rwanda,&nbsp;Tanzania, Uganda and Zambia. The full results are available&nbsp;<a href="https://renew-new-api.madtechet.com/uploads/Investment_Survey_Report_Aug_2022_34abc5dac8.pdf" target="_blank" rel="noopener noreferrer">here.</a>“Surveys like this are integral to Renew Capital’s decade-long effort to refine our management capacity building offerings, support ecosystems and grow the missing middle of the African economies,” said Renew Capital Managing Partner Laura Davis.&nbsp;This blog post and the August 2022 East Africa Investment Survey report were authored by Raisa Chowdhury, senior consultant and monitoring and evaluation lead.&nbsp;

Survey Results  confirm need for capacity building, additional support for women entrepreneurs and an opportunity for regional trade.


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Renew Capital’s East Africa Investment Survey Results

<h1 style="text-align:center;">RENEW’s Legal Corner: September 2022</h1>Our take on developments in the investment ecosystems of East Africa<figure class="image"><img src="/uploads/LWN_4362_7b576fe01c.jpg"></figure>ETHIOPIANew Tax Regulation Exempts Share Premium Tax on Newly Issued SharesThe Ethiopian Council of Ministers has approved an amended income tax regulation (“Amendment Regulation'') which exempts resident companies from payment of tax on share premium income obtained from newly issued shares. Investors have been disputing the implementation of the 2016/2017 <a href="http://www.mor.gov.et/web/guest/regulations/-/document_library/Yy5kLMTyMZt7/view_file/173104?_com_liferay_document_library_web_portlet_DLPortlet_INSTANCE_Yy5kLMTyMZt7_redirect=http%3A%2F%2Fwww.mor.gov.et%2Fweb%2Fguest%2Fregulations%2F-%2Fdocument_library%2FYy5kLMTyMZt7%2Fview%2F172549%3F_com_liferay_document_library_web_portlet_DLPortlet_INSTANCE_Yy5kLMTyMZt7_redirect%3Dhttp%253A%252F%252Fwww.mor.gov.et%252Fweb%252Fguest%252Fregulations%253Fp_p_id%253Dcom_liferay_document_library_web_portlet_DLPortlet_INSTANCE_Yy5kLMTyMZt7%2526p_p_lifecycle%253D0%2526p_p_state%253Dnormal%2526p_p_mode%253Dview">Income Tax Proclamation</a> and <a href="https://www.mofed.gov.et/media/filer_public/c0/31/c0319984-501a-4eab-bf5b-98c15fa7985c/income_tax_regulation_english_clean.pdf">Regulation</a> by the Ministry of Revenues. The Ministry of Revenues used to apply capital gains tax on the share premium of a company under Schedule D of the Income Tax Proclamation. Although different circulars and directives were issued by the Ministry of Finance directed toward alleviating the gaps in the application, the efforts remained on paper and only moved the tax on premiums from Schedule D (capital gains tax) to Schedule C (tax on profit). The Council of Ministers per the Amendment Regulation and the explanatory note issued therewith stressed the wrongful implementation of the provisions of the Income Tax Proclamation and Regulation and its impact on the country’s effort to attract foreign private equity investors. The Council of Ministers in its explanatory note emphasized that taxing investment discourages investors, especially foreign private equity investors, from investing in Ethiopia. The Amendment Regulation resolved this long-lasting issue between investors and the tax authority by specifically classifying share premiums on newly issued shares as exempt incomes. However, the Amendment Regulation still faced some criticism from domestic investors for specifically exempting share premiums by foreing investors (non-residents).Introduction of Social Welfare Levy on Imported Products&nbsp;Ethiopia is ranked among the top countries that tax imports heavily. In principle, there are five different taxes applicable on imported goods in Ethiopia. These are custom duty, excise tax, value added tax, surtax and withholding tax. In addition to this, the Ethiopian government has introduced a new tax on imported products. According to the regulation which introduced this levy the main reason for the introduction of this tax is to support the rehabilitation and construction of schools and medical facilities and the expansion of other social services in the country. The tax rate will be three percent (3%) on imported products and imposed on the Cost, Freight and Insurance (CIF) value of the imported goods. Goods that are exempted from surtax are required to pay the social welfare levies. For instance, petroleum and lubricants were exempted from surtax under the surtax proclamation. However, importers are now expected to pay a social welfare levy on imported petroleum and lubricants. The imposition of a new tax on petroleum and lubricants is expected to fuel the existing inflation in the country.&nbsp;Opening of the Financial Sector to Foreign InvestorsIn Ethiopia, the financial sector has been a forbidden fruit for foreign investors. However, on August 6, 2022, the Council of Ministers approved the amendment of <a href="https://nbebank.com/wp-content/uploads/2019/04/nationalpaymentsystem.pdf">Proclamation No. 718/2011 A Proclamation to Provide for National Payment System</a>, the purpose of this amendment is to open the sector for foreign fintech companies. The National Bank of Ethiopia (NBE) recently licensed Ethio-telecom and Kacha Digital Financial Services to engage in the country’s financial sector. Now, the opening of the sector to foreign investors is expected to contribute to the development of the country. Safaricom and other international companies had communicated their interest to engage in the financial sector and the amendment of this Proclamation will give them the right to operate in Ethiopia.&nbsp;<hr>UGANDAUSD 2.7M fund to benefit over 10,000 youth and womenThe Challenge Fund for Youth Employment, a Netherlands government funded program, will look to create several job opportunities for women and youth in Uganda during a six year time frame. The fund is partnering with the likes of Palladium and Randstad, Voluntary Service Overseas (VSO), and Marula Agribusiness B.V. to scope out viable solutions that will create favorable employment opportunities for the participants. According to an article in the New Vision, the fund has an estimated portfolio of 10 projects worth over EUR 5.85M and plans to create and match over 25,000 jobs for women and youth, through its implementing partners. According to macrotrends.net, as of 2021, the&nbsp; unemployment rate in Uganda stood at 2.94%, a 0.17% increase from 2020 while the youth unemployment rate was at&nbsp; 4.33%, a 0.33% increase from 2020. This program will create better job opportunities in a country that has one of the youngest populations but has exceedingly struggled with unemployment over the years.<hr>RWANDAEnhanced Public Finance Management Assured with New LegislationA new law passed by the Rwandan senate earlier this month gives the Auditor General more powers to audit institutions that his office didn’t usually audit. Specialized entities such as the National Bank of Rwanda, which the AG’s office was not previously auditing, will now fall under the category of public organs which will be audited. According to an article in the New Times Rwanda, the Chairperson of the Committee on National Budget and Patrimony, Omar Munyaneza, stated that though such organs were not drawing finances directly from the national budget, they were using public funds. The new change is meant to ensure that, though they are not allocated funds from the approved national budget, their finances be audited to know how they manage public funds. The new law shall encompass all public organs including those that were originally being audited by auditing firms such as KPMG but under the supervision of the Office of the Auditor General. Under the new law, the Auditor General shall also have access to the audited financial statements of public organs a month earlier than in the previous law. This new legislation will go a long way in managing public funds and maintaining accountability within these institutions. Rwanda continues to maintain a zero tolerance towards corruption with such legislations in order to set a precedent for all public organs and citizens alike.&nbsp;&nbsp;<hr>&nbsp;1) <a href="https://www.newvision.co.ug/category/business/10000-to-benefit-from-youth-employment-fund-141663">https://www.newvision.co.ug/category/business/10000-to-benefit-from-youth-employment-fund-141663</a>2) https://www.newtimes.co.rw/article/388/news/finance/how-new-law-could-improve-public-finance-management

Our take on developments in the investment ecosystems of East Africa: September

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RENEW’s Legal Corner: September 2022

<h1 style="text-align:center;">RENEW’s Legal Corner: August 2022</h1>Our take on developments in the investment ecosystems of East Africa&nbsp;<figure class="image"><img src="/uploads/LWN_6417_94da49e087.jpg"></figure><hr>ETHIOPIAEthiopia is Changing its Two Decades Old VAT Proclamation&nbsp;It has been two decades since Ethiopia introduced Value Added Tax (VAT) per Proclamation No. 285/2002 (“VAT Proclamation''). The VAT Proclamation has gone through two amendments in 2008 and 2019, making a few tweaks to the age-old law; however, it has failed to take into consideration the current economic developments and technological advancements. The executive bodies (Ministry of Finance and Ministry of Revenue) have been the principal players in introducing several directives and circulars focused on VAT to cope with the dynamic changes in the business environment. However, this is expected to change. The government is working on a new VAT proclamation which will bring significant changes to the existing VAT Proclamation (Read our review of the draft VAT proclamation here).&nbsp;Ethiopia Licensed the First Private Company to Provide Digital Financial Services&nbsp;Under the <a href="https://www.mofed.gov.et/media/filer_public/38/78/3878265a-1565-4be4-8ac9-dee9ea1f4f1a/a_homegrown_economic_reform_agenda-_a_pathway_to_prosperity_-_public_version_-_march_2020-.pdf">Homegrown Economic Reform Agenda</a>, the Ethiopian government specified&nbsp; its intention to enhance financial inclusion in the financial sector. This reform promised the revision of the then restriction against mobile payment technology service providers. In April 2020, the government introduced <a href="https://www.nbe.gov.et/wp-content/uploads/pdf/proclamation/oversight-the-national-payement-system.pdf">Licensing and Authorization of Payment Instrument Issuers Directive No. ONPS/01/2020</a> which provides the legal framework for introducing fintech companies in Ethiopia. Following this, Ethio-telecom introduced Telebirr, which is the first mobile payment mechanism launched by a non-financial institution. Since its launch, Telebirr has recorded more than 21M users and ETB 25B in transactions through July 19, 2022.1 This month, the National Bank of Ethiopia (NBE) has licensed Kacha Digital Financial Services S.C. to provide digital financial services, which makes it the first licensed private mobile money service provider. This is in line with the government’s move to liberalize the financial sector and could be considered as a big step towards full liberalization of the sector.&nbsp;Leather and Textile Exporters Get an Exemption for Sample ExportThe Ministry of Finance has exempted exporters of leather and textile products from acquiring and getting permits and paying duties before sending or receiving samples.2 These exporters can now send and receive samples of up to 30kg of textile and 30sqm of hides without paying customs duty. This is done in order to increase the competitiveness of the Ethiopian producers in the international market and enhance their capability. This is expected to resolve one of the many issues that exporters face in Ethiopia.<hr>UGANDAWomen Entrepreneurs at Forefront of New NSSF ProgramThe National Social Security Fund has rolled out its flagship accelerator program that will among other things fund over 92,400 women entrepreneurs. As a prerequisite, the businesses should be in priority sectors that include manufacturing, technology, agriculture and commerce. The beneficiaries will obtain about USD 30,000 in funding. According to an article in the New Vision, an NSSF representative stated that the opportunity is now targeting women to motivate them to improve their economic growth and survival in the bad economy. The fund seeks to support small businesses with potential to scale and create jobs. Historically women-owned businesses have not been deemed investment ready due to a plethora of internal and external factors including size and ability to scale. Thus, they find themselves in a vicious cycle of operating as a small business. However,investors are now more aware of this conundrum when it comes to supporting women-led businesses and according to a recent survey from the Morgan Stanley Institute for Sustainable Investing, 67% of global asset owners identify gender diversity as an area of interest within their investment portfolios. This is positive considering that women face biases and discrimination when they pitch to investors and it’s essential that capital is channeled to directly fund unrepresented entrepreneurs.&nbsp;Uganda Government Mull New TVET Bill.The newly proposed Technical Vocational Education and Training (TVET) Bill, which will outline technical and vocational training, courses and programmes and the management of trainers and stakeholders, is said to be one of the solutions to the unemployment problem in Uganda. The Minister of ICT and National Guidance emphasized the need to promote technical and vocational training alongside formal academic training to reduce the unemployment rate. He stated in a briefing to journalists this week that the bill is going to be employer-led legislation, which must answer to the needs of employers and also the skills that we need in society. With an exceedingly young population, Uganda is taking steps to ensure that the unemployment issue is resolved by offering various options of formal education and training or technical/vocational training.<hr>RWANDADe-escalation of Tension Between DRC-Rwanda UnderwayThe DRC as the newest member of the East African Community has presented an immense potential for regional economic growth. Several neighboring and international countries are looking forward to the economic, political ties and benefits it will bring to the regional bloc. Businesses have already started to advance and make road maps for the economic flow that is expected to happen. However, with the ever rising political tension from the reemergence of M23 rebels in eastern Congo, there is a lot of political instability that has adversely affected the businesses within the community in an already trying financial time. According to an article in All Africa, the de-escalation process will be managed by the revived DRC-Rwanda committee that held their first meeting in Luanda on July 12. The paradox of including DRC in the East African Community and it being marginalized as an unsafe region to do business in is weighing heavy on the member states.Rwanda Judiciary Looks to Reduce Case Backlogs SignificantlyAs a measure to reduce the case backlog in Rwanda, the judiciary has contracted over 20 judges and 10 registrars to preside over cases in primary courts. According to an article in the New Times Rwanda, the average time a case spends before it is tried increased from 8 to 10 months which has subsequently created a huge backlog. The judiciary is also devising other methods to remedy this issue like court annexed mediation that expedites conflict resolution between parties. The New Times article also mentioned that the trials postponed in different courts increased by 28 percent from 22,784 to 29,259, and one of the reasons for this increase is the Covid-19 preventive measures which led to limited court activity. This is a very timely measure for the country to ensure law and order are upheld coupled with fair and reasonable justice.&nbsp;&nbsp;&nbsp;1) <a href="https://businessinfoeth.com/telebirr-mobile-money-service-transaction-value-reached-25-billion-birr/">https://businessinfoeth.com/telebirr-mobile-money-service-transaction-value-reached-25-billion-birr/</a>2)) https://addisfortune.news/leather-textile-exporters-salute-relaxed-sample-shipping-rules/

Our take on developments in the investment ecosystems of East Africa

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RENEW’s Legal Corner: August 2022

<h1 style="text-align:center;">RENEW’s Legal Corner: August 2022</h1>Our take on developments in the investment ecosystems of East Africa&nbsp;<figure class="image"><img src="/uploads/LWN_6417_94da49e087.jpg"></figure><hr>ETHIOPIAEthiopia is Changing its Two Decades Old VAT Proclamation&nbsp;It has been two decades since Ethiopia introduced Value Added Tax (VAT) per Proclamation No. 285/2002 (“VAT Proclamation''). The VAT Proclamation has gone through two amendments in 2008 and 2019, making a few tweaks to the age-old law; however, it has failed to take into consideration the current economic developments and technological advancements. The executive bodies (Ministry of Finance and Ministry of Revenue) have been the principal players in introducing several directives and circulars focused on VAT to cope with the dynamic changes in the business environment. However, this is expected to change. The government is working on a new VAT proclamation which will bring significant changes to the existing VAT Proclamation (Read our review of the draft VAT proclamation here).&nbsp;Ethiopia Licensed the First Private Company to Provide Digital Financial Services&nbsp;Under the <a href="https://www.mofed.gov.et/media/filer_public/38/78/3878265a-1565-4be4-8ac9-dee9ea1f4f1a/a_homegrown_economic_reform_agenda-_a_pathway_to_prosperity_-_public_version_-_march_2020-.pdf">Homegrown Economic Reform Agenda</a>, the Ethiopian government specified&nbsp; its intention to enhance financial inclusion in the financial sector. This reform promised the revision of the then restriction against mobile payment technology service providers. In April 2020, the government introduced <a href="https://www.nbe.gov.et/wp-content/uploads/pdf/proclamation/oversight-the-national-payement-system.pdf">Licensing and Authorization of Payment Instrument Issuers Directive No. ONPS/01/2020</a> which provides the legal framework for introducing fintech companies in Ethiopia. Following this, Ethio-telecom introduced Telebirr, which is the first mobile payment mechanism launched by a non-financial institution. Since its launch, Telebirr has recorded more than 21M users and ETB 25B in transactions through July 19, 2022.1 This month, the National Bank of Ethiopia (NBE) has licensed Kacha Digital Financial Services S.C. to provide digital financial services, which makes it the first licensed private mobile money service provider. This is in line with the government’s move to liberalize the financial sector and could be considered as a big step towards full liberalization of the sector.&nbsp;Leather and Textile Exporters Get an Exemption for Sample ExportThe Ministry of Finance has exempted exporters of leather and textile products from acquiring and getting permits and paying duties before sending or receiving samples.2 These exporters can now send and receive samples of up to 30kg of textile and 30sqm of hides without paying customs duty. This is done in order to increase the competitiveness of the Ethiopian producers in the international market and enhance their capability. This is expected to resolve one of the many issues that exporters face in Ethiopia.<hr>UGANDAWomen Entrepreneurs at Forefront of New NSSF ProgramThe National Social Security Fund has rolled out its flagship accelerator program that will among other things fund over 92,400 women entrepreneurs. As a prerequisite, the businesses should be in priority sectors that include manufacturing, technology, agriculture and commerce. The beneficiaries will obtain about USD 30,000 in funding. According to an article in the New Vision, an NSSF representative stated that the opportunity is now targeting women to motivate them to improve their economic growth and survival in the bad economy. The fund seeks to support small businesses with potential to scale and create jobs. Historically women-owned businesses have not been deemed investment ready due to a plethora of internal and external factors including size and ability to scale. Thus, they find themselves in a vicious cycle of operating as a small business. However,investors are now more aware of this conundrum when it comes to supporting women-led businesses and according to a recent survey from the Morgan Stanley Institute for Sustainable Investing, 67% of global asset owners identify gender diversity as an area of interest within their investment portfolios. This is positive considering that women face biases and discrimination when they pitch to investors and it’s essential that capital is channeled to directly fund unrepresented entrepreneurs.&nbsp;Uganda Government Mull New TVET Bill.The newly proposed Technical Vocational Education and Training (TVET) Bill, which will outline technical and vocational training, courses and programmes and the management of trainers and stakeholders, is said to be one of the solutions to the unemployment problem in Uganda. The Minister of ICT and National Guidance emphasized the need to promote technical and vocational training alongside formal academic training to reduce the unemployment rate. He stated in a briefing to journalists this week that the bill is going to be employer-led legislation, which must answer to the needs of employers and also the skills that we need in society. With an exceedingly young population, Uganda is taking steps to ensure that the unemployment issue is resolved by offering various options of formal education and training or technical/vocational training.<hr>RWANDADe-escalation of Tension Between DRC-Rwanda UnderwayThe DRC as the newest member of the East African Community has presented an immense potential for regional economic growth. Several neighboring and international countries are looking forward to the economic, political ties and benefits it will bring to the regional bloc. Businesses have already started to advance and make road maps for the economic flow that is expected to happen. However, with the ever rising political tension from the reemergence of M23 rebels in eastern Congo, there is a lot of political instability that has adversely affected the businesses within the community in an already trying financial time. According to an article in All Africa, the de-escalation process will be managed by the revived DRC-Rwanda committee that held their first meeting in Luanda on July 12. The paradox of including DRC in the East African Community and it being marginalized as an unsafe region to do business in is weighing heavy on the member states.Rwanda Judiciary Looks to Reduce Case Backlogs SignificantlyAs a measure to reduce the case backlog in Rwanda, the judiciary has contracted over 20 judges and 10 registrars to preside over cases in primary courts. According to an article in the New Times Rwanda, the average time a case spends before it is tried increased from 8 to 10 months which has subsequently created a huge backlog. The judiciary is also devising other methods to remedy this issue like court annexed mediation that expedites conflict resolution between parties. The New Times article also mentioned that the trials postponed in different courts increased by 28 percent from 22,784 to 29,259, and one of the reasons for this increase is the Covid-19 preventive measures which led to limited court activity. This is a very timely measure for the country to ensure law and order are upheld coupled with fair and reasonable justice.&nbsp;&nbsp;&nbsp;1) <a href="https://businessinfoeth.com/telebirr-mobile-money-service-transaction-value-reached-25-billion-birr/">https://businessinfoeth.com/telebirr-mobile-money-service-transaction-value-reached-25-billion-birr/</a>2)) https://addisfortune.news/leather-textile-exporters-salute-relaxed-sample-shipping-rules/

<h1 style="text-align:center;">RENEW’s Legal Corner: July 2022</h1>Our take on developments in the investment ecosystems of East Africa<figure class="image"><img src="/uploads/LWN_4361_73f63f253a.jpg"></figure><hr>ETHIOPIAA New Investment Incentive Regulation is Already Underway&nbsp;The Council of Ministers has come up with a new investment incentive regulation this month. After the introduction of investment laws in 2020, the business community had been looking for new investment incentive packages from the government. To the satisfaction of the investors and other stakeholders, the Council of Ministers has approved a new investment incentive regulation in its 8th ordinary summit. This regulation contains income tax and custom duty exemptions and introduced some big changes to the investment ecosystem compared to the previous law. (Read our review of the new incentive regulation <a href="https://www.renewcapital.com/resources/blogs/The%20New%20Investment%20Incentive%20Scheme%20is%20Expected%20to%20Change%20the%20Investment%20Ecosystem%20">here</a>.)The National Bank of Ethiopia Revised the Reserve Requirement for a Second Time This Year&nbsp;The National Bank of Ethiopia (NBE) took different measures to mitigate the soaring inflation in Ethiopia, one of which was increasing the reserve requirement of commercial banks. However, this month the NBE reversed that decision and reduced the reserve requirement of commercial banks from 10% to 7%. In September 2021 when the NBE introduced a 10% reserve requirement, the decision was seen as a means to reduce the supply of money in the market. However, this month’s measure of reduction in the reserve requirement is expected to increase the flow of money in the market and fuel the already skyrocketing inflation rate.&nbsp;&nbsp;Financial Regulator has Banned Virtual Currencies from the Ethiopian Market&nbsp;&nbsp;The NBE has banned digital currencies. According to the NBE, there is a huge transaction rate through digital currencies and this is creating a suitable condition for money laundering and illegal financial activities in the country. <a href="https://nbebank.com/wp-content/uploads/2019/04/amendement%20of-nbe-stab-proclamation.pdf">The National Bank of Ethiopia Establishment Proclamation No. 591/2008</a> clearly recognizes Ethiopian Birr as the country’s national currency for any financial transaction in Ethiopia unless the NBE permits otherwise. In addition, <a href="https://nbebank.com/wp-content/uploads/2019/04/nationalpaymentsystem.pdf">National Payment System Proclamation No. 718/2011</a> clearly renounces payment systems that are not allowed by the NBE. In its press release this month, the NBE gave these rationales for the prohibition of virtual currency from Ethiopia’s financial system.&nbsp;Recently, the Ethiopian government has introduced a <a href="https://id.gov.et/">National ID Program</a> and embraced blockchain technology only for the effective implementation of a biometric ID system. Though the government opens its hand to blockchain technology in general, this decision shows its rejection of blockchain technology from the country’s financial sphere.Council of Ministers Approves Budget for the Coming Fiscal Year&nbsp;The Council of Ministers has approved Ethiopia’s budget for the coming fiscal year. The country’s budget for the 2022-2023 fiscal year will be 786.61 ETB which is an&nbsp; increase from the previous year’s amount by 16.59%. (1) The House of People Representatives (HPR) is expected to ratify the decision of the council. The major source of the budget will be domestic sources&nbsp; according to the Ministry of Finance. The government is expected to broaden its tax base to raise more money from domestic sources.<hr>RWANDASenators Urge Efforts to Address Affordable Housing GapsIn a recent meeting on Economic Development and Finance, Rwandan senators have put the Ministry of Infrastructure to task in order to fast-track sustainable urbanization in line with the National Strategy for Transformation 2018-2024. This is important to RENEW’s investment practice because it reveals affordable housing as a fairly underfunded sector in Rwanda and puts policies in place to accelerate urbanization. The World Bank earlier this year extended a $150 million loan for the expansion of access to housing finance. According to the New Times Rwanda, the 25-year credit facility, which was approved by parliament and cabinet, attracts an interest rate of 1.35% per annum. It will be implemented by the Development Bank of Rwanda, working with other financial institutions to expand mortgage lending. This will also set a precedent for investment firms looking to venture into the real estate sector and offer more debt financing.EAC Says New Common External Tariff will Benefit CitizensThe East African Community (EAC) ministers recently adopted a higher tariff for fourth band goods produced outside of East Africa, such as dairy and meat products, cereals, textiles, edible oils, leather products, iron and steel, among others. The newly revised 35% regional Common External Tariff is likely to take effect in July as a second pillar to regional integration. It will promote efficiency in local production and manufacturing, which would ensure high quality East African products that can compete with other foreign imports. In addition, it will create jobs for the youth as expressed in a New Times interview with the Secretary General of the EAC, who said “We really encourage more people to come and invest in East Africa and produce from here, instead of bringing finished products, because bringing finished products means they are processed and manufactured elsewhere and you are creating jobs elsewhere.”&nbsp;This decision by the EAC ministers in charge of trade and finance is a notable move towards regional economic integration and subsequently boosting trade and investment in the African Continental Free Trade Area.<hr>UGANDACSOs want 70% of Budget for Development Expenditure&nbsp;The civil society budget advocacy group (CSBAG) has criticized the government for allocating most of the country’s budget for consumption expenditures. For the 2022-2023 fiscal year, 30% of the country’s budget will be used for development purposes while the rest will be allocated to cover consumption expenses. According to the CSBAG, the delivery of services to citizens requires the allocation of more money to development expenses and this will not be seen in the coming fiscal year. In addition, the CSO shared its worries about the increasing public debt of the country. The public debt is resulting in low resource service delivery and the country needs to mobilize its domestic resources in order to tackle this problem. In addition, for economic recovery the CSO suggested zero new tax rates and a pro-people rental tax. Moreover, targeting the lower-income part of society and supporting the subsistence economy have been suggested as major ways to drive economic recovery.&nbsp;&nbsp;38.8B UGX to be Reinvested in the Uganda Development Bank&nbsp;Shareholders of the Uganda Development Bank (UDB) permitted the bank to retain UGX 38.8 billion of profit which will be used to finance development projects. Compared to 2021, the bank’s profit showed a 76% increase; this increase is attributed to growth in capitalization of the bank coupled with an increase in investment in interest-earning assets, notably loan disbursement to development projects and reinvestment of the profits to the bank. According to the CEO of the bank, the reinvestment “will be used for the growth of the investment portfolios in Uganda.” &nbsp; &nbsp;&nbsp;&nbsp;1) <a href="https://www.fanabc.com/english/council-of-ministers-approves-786-6-billion-birr-draft-budget/">https://www.fanabc.com/english/council-of-ministers-approves-786-6-billion-birr-draft-budget/</a>

Our take on developments in the investment ecosystems of East Africa: July


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RENEW’s Legal Corner: July 2022

<h1 style="text-align:center;">RENEW’s Legal Corner: June 2022</h1>Our take on developments in the investment ecosystems of East Africa.<figure class="image"><img src="/uploads/Screen_Shot_2022_05_12_at_11_13_40_AM_1d149622f5.png"></figure><hr>ETHIOPIA​​The Ethiopian Securities Exchange (ESX) is Under FormationStarting from the entry into force of the Capital Market Proclamation in July 2021, the government of Ethiopia has been taking the necessary steps to make the capital market operational. One of the cardinal steps to operationalize this is the establishment of a securities exchange. Therefore, on May 19, 2022, the government took this crucial move by signing a cooperation agreement for the establishment of the Ethiopian Security Exchange (ESX). The Ministry of Finance (MoF), Ethiopian Investment Holding (EIH) and Financial Sector Deepening Africa (FSD Africa) have signed an agreement for establishing the ESX. According to the CEO of FSD Africa, the ESX will be operational within the next two years. When the ESX comes into effect, financial institutions and key economic players will be listed, which is expected to widen the investment opportunities for potential investors in Ethiopia. In addition, this is expected to have a positive impact on the country’s development by facilitating access to finance for businesses, whose source of finance has been limited to the banking sector for a long time.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Registration and Licensing Activity Goes Fully Digital&nbsp;According to the <a href="https://www.pmo.gov.et/media/other/b2329861-f9d7-4c4b-9f05-d5bc2c8b33b6.pdf">digital Ethiopia 2025 strategy</a>, which was endorsed by the Council of Ministries on June 15, 2020, the government mentioned lack of E-governance as a reason for the country’s low rank on the Ease of Doing Business index. In order to avert this and other problems which are facing Ethiopia’s businesses, the government has listed initiatives that are undertaken in the digital Ethiopia 2025 strategy. These include digitizing government operations, government services and developing better service delivery channels.&nbsp;As part of digitizing government operations and services, the Ministry of Trade and Regional Integration (MoTRI) has introduced an Online Trade Registration and Licensing System (OTRLS) this month. Clients of MoTRI and Addis Ababa Trade Bureaus are now not required to go to government offices to get the services previously provided by appearing in person at the above mentioned respective trade bureaus. Effective May 2022, MoTRI has stopped all in-person licensing activities and has shifted everything online. However, the online system has its flaws. From our experience, we have noticed that the system is not user friendly. In addition, we have realized that the personnel at MoTRI who handle the system itself are not accustomed to how it operates, which still causes some delays and frustration in the business community.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Mobile Money Operators Allowed to Operate in Ethiopia ahead of Revisions to the Banking Proclamation&nbsp;Following the government’s decision to open up the financial sector to foreign players, the National Bank of Ethiopia (NBE) indicated that it is working on building the legal framework that liberalizes the sector. Similarly, NBE announced the government’s decision to allow foreign mobile money operators or other digital financial services to operate in Ethiopia ahead of revisions to the banking proclamation. This decision is part of the series of measures being taken by the government to liberalize the market. This is also related to another recent government decision – opening the telecom sector for foreign investors. Allowing mobile money will be a great advantage for Safaricom (who will be opening operations in Ethiopia this year) in its competition with Ethio Telecom, which recently announced Ethio-birr and gained millions of subscribers within a short period of time.<hr> UgandaLitigation Continues in Bitature Case - A Deterrent for Foreign Investors?Vantage Mezzanine Fund II (Vantage), a South African investment fund, and Mr. Patrick Bitature (Bitature), a Ugandan local, continue a litigation battle in Uganda’s courts. Vantage was recently blocked by Ugandan courts from foreclosing on its investment in Bitature’s hotel/real estate business, Simba Group.&nbsp;Vantage provided a $10M secured loan to Simba Group in 2014. Simba Group defaulted on the loan in 2017; Vantage agreed to restructure the loan, with payments coming due in 2019. By 2019, the company had still failed to repay anything on the loan, and Bitature filed suit, claiming that the loan was invalid, and alternatively that it was signed under duress, and thus his company did not have to repay the loan. This lawsuit was eventually dismissed as baseless, but the legal battle continued. Vantage tried to enforce its security over the shares in Simba Group in an effort to recoup its loan. Under Ugandan law, the share transfer has to be registered with the Uganda Registration Services Bureau (URSB). When Vantage attempted to register it, URSB refused (there is speculation that Bitature may have interfered with the registration). Vantage filed suit to compel URSB to act, and the court dismissed the claim on the basis that Vantage Mezzanine Fund II was not registered as a partnership in Uganda and thus lacked standing to sue in Uganda.&nbsp;This ruling is significant for the international investment community – it calls into question the enforceability of foreign investments in the country and may harm Uganda’s reputation in the international investment world. Foreign investors want certainty and predictability from the laws and legal systems of the countries in which they invest. This case puts a question mark on whether government agencies and courts in Uganda will uphold and enforce foreign investments.&nbsp;In the latest development, Vantage received the green light from a commercial court in Uganda to sue Bitature and his wife directly, as they were guarantors on the loan. Bitature moved to dismiss this suit and asked the court to order a temporary injunction preventing Vantage from bringing private legal action against the Bitatures. The court dismissed Bitature’s requests and, remarkably, the judge directed the Bitatures’ lawyer to personally pay the court costs for&nbsp; representing his clients unprofessionally and filing a baseless lawsuit. This is the latest in the ongoing struggle by Vantage to recoup its investment; time will tell whether Vantage can win its money back through private prosecution.<hr>RwandaRwandan Central Bank Creates Regulatory Sandbox for Testing Fintech ProductsThe Rwandan Central Bank has introduced a platform for testing innovative fintech products and services in a live environment. This platform will serve a vital role in assessing and managing risks that financial products and services providers may face, such as interoperability and cybersecurity. Previously, financial products did not need to come to such an environment before applying for licensing. However, starting from this month, the central bank will now use this platform to assess the marketability of certain innovative financial products before issuing licenses. This will help the central bank to issue new laws and regulations, or amend existing regulations, by witnessing how these products function in a real market rather than based on assumptions. The sandbox regulation is part of the government policy to support innovation and development in Rwanda and is designed specifically for financial products that are deemed innovative.&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;

Our take on developments in the investment ecosystems of East Africa: June 

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RENEW’s Legal Corner: June 2022

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<h1 style="text-align:center;">RENEW’s Legal Corner: May 2022</h1>Our take on May’s developments in the investment ecosystems of East Africa.<figure class="image image_resized" style="width:100%;"><img src="/uploads/097_A2836_15ec557b17.jpg"></figure><hr>ETHIOPIAThe New Directive by the Ministry of Revenues Eases the Deductibility of LoansThe Ministry of Revenues (MoR) issued a directive related to keeping tax books of accounts. The new directive No. 176/2014, which repealed Directive No 152/2011, aims at bringing clarity to the business community on keeping books of accounts and having supporting documents with an ultimate goal of creating consistency in terms of application. The new directive has made some noteworthy changes. However, perhaps the significant one is related to the registration and documentation of loans.&nbsp;Previously, taxpayers were required to show a loan agreement that was notarized at Documents Authentication and Registration Services (DARS) in order to recognize a certain entry to the company’s books as a debt. Otherwise, there is a high probability that the transfer will be considered an income and subject to tax. This has been a major dispute area between the taxpayers and the tax authority.The rigidity of the process at DARS to get a loan agreement notarized added to the fact that most businesses are family-owned and lack of awareness resulted in shareholders usually putting their personal money into their business at times of distress without DARS registration and facing excessive taxation.&nbsp;The new directive has provided some clarity to that. Even though the burden of proof still rests on the taxpayer, now a loan can be proven in different ways in addition to proof of notarization at DARS. Despite the upgrades to the law, be advised that not getting a loan agreement notarized at DARS will have consequences in terms of stamp duty penalty. The business community is still advised to get the loan agreement notarized at DARS, however, the consequence of not doing so is now less grave.&nbsp;NBE has Released a Complete Guidelines for Telecom OperatorsIn 2020, the National Bank of Ethiopia (NBE), came up with a <a href="https://nbebank.com/wp-content/uploads/pdf/directives/Payement%20system/ONPS-02-2020.pdf">Licensing and Authorization of Payment System Operators Directive - ONPS/02/2020</a>, which allowed telecom operators to engage in payment and related services in Ethiopia. As a follow-up to this, NBE has introduced a <a href="https://www.nbe.gov.et/wp-content/uploads/pdf/directives/Payement%20system/A-complete-Guide-on-licensing-process.pdf">Complete Guide on Payment System Operator License Process</a> that stipulates the details of the licensing process for the financial firms that want to engage in related businesses.&nbsp;The guideline has five phases detailing the application procedure to secure the license. These include to whom the application should be addressed, documents that should be submitted with the application, company formation and the authorization process.&nbsp;&nbsp;&nbsp;&nbsp;Basic Food Items Can Now Enter Ethiopia on Franco Valuta Basis&nbsp;In an effort to control the food inflation in Ethiopia, triggered by internal and international factors, the government is taking new measures. As part of this move, the Ministry of Finance has issued a circular allowing the Ethiopian diaspora and Ethiopians’ who live abroad to import basic food items into Ethiopia without a foreign currency permit.&nbsp;In a circular which is written to the Ethiopian Customs Commission, the Ministry of Finance has given permission to the diaspora and Ethiopians who live abroad to import oil, wheat, sugar, rice and instant milk under the franco valuta scheme. The new circular waives the restrictions that were imposed on the volume that is allowed. Under the new circular there is no minimum requirement and persons who are considered eligible can import any amount of the basic food items which are listed under the Directive.&nbsp;NBE Has Come up with a New Directive for the Implementation of Technology in Core Banking OperationsNBE has introduced a Directive that obligates commercial banks to automate their system, at least their core business processes. As per this law, commercial banks are required to automate their customer due diligence, loan processing, loan portfolio management, and interest banking services among others.&nbsp;NBE has set a time frame for banks to modernize their banking processes, which is within the next two years starting from the effective date of the Directive. Not complying with the Directive within the set time framework will result in an ETB 10,000 fine each month. If a bank fails to automate its core banking business within additional two years, it will face partial or full suspension of related core business in due consideration of the nature of the function.<hr>UGANDAThe End of Umeme’s Monopoly over the Supply and Distribution of ElectricityThe Ugandan Parliament has passed an Electricity Amendment Bill 2022 which, if ratified by President Museveni, will end Umeme Limited's (“Umeme'') monopoly as the sole bulk power supplier of the country. Umeme has been operating under a 20 years electricity distribution concession effective March 2005 from the Government. Umeme is Uganda’s main electricity distribution company, listed on the Uganda Securities Exchange and cross-listed on the Nairobi Securities Exchange of Uganda and is currently distributing about 97% of all electricity used in the country.&nbsp;The new bill permits suppliers to receive generation and transmission licensees to supply electric power in bulk directly to categories of customers specified by the Minister. The assent of President Museveni is the only remaining hurdle for the bill to be implemented.The implementation of the presidential directive will take away Umeme’s service territories where it is not licensed. It will also give a selling power to industries at a tariff that eliminates the current expensive distribution costs of Umeme.&nbsp;Uganda Import Rule Over Age-Old CarsIn a new directive by the Uganda Revenue Authority (URA), imports of vehicles older than nine will be cleared under the East African Community’s Single Customs Territory (SCT) which allows members of the bloc to jointly collect customs taxes. Complementary to this directive, any vehicle nine years old or more from the date of manufacture shall no longer be cleared under the current warehousing regime. As a result, based on CRSP The price of used cars will be inflated as it attracts an import duty of 25%, excise duty (ranging from 25% to 35%) and value-added tax of 16% payable cumulatively and in that order.The likely impact of this directive will be first, a decrease in vehicles sold on the automobile black market in Kenya and secondly, it will create a tough environment for Ugandan importers as they will be required to lodge import declaration forms in their respective home countries and pay relevant taxes upfront to facilitate the export process. Thus, the price of automobiles will likely imminently increase. However, for some, this is viewed as positive news from an environmental point of view because consumers will inevitably opt to purchase newer cars that have lower carbon emissions. Kampala, Uganda’s capital, is currently reported to have the second-worst air quality in Africa.<hr>RWANDARwanda to Benefit from $25m Initiative for Climate Resilient Crop VarietiesBurundi, Rwanda and the Democratic Republic of Congo (DRC) are part of the countries listed for consideration in the new initiative that strives to ensure environmental conservation and increase food security. According to an article in the New Times, the&nbsp; $25 million regional initiative dubbed “Transforming Agri-Food Systems in West and Central Africa” (TAFS-WCA) initiative has been launched by CGIAR, a global research partnership to improve nutrition and food security within the context of climate change in West and Central Africa through nutritious, climate-adapted and market-driven food systems. Rwanda depends greatly on agriculture for both domestic consumption and export. Earlier this year, a prolonged drought eroded more than 40% of Rwanda’s farmer’s produce, mainly beans and maize. This situation was exacerbated when the heavy rains that came, later on, damaged the crops that had survived the dry spells. This initiative will offer farmers some relief from the adverse and sometimes unavoidable effects of climate change subsequently ensuring food security and steady yields for consumption and export.Ukrainian Refugees Could be Sent&nbsp; to RwandaIn an interesting twist, senior officials in the UK have stated that Ukrainian refugees entering the country with illegal documentation may be relocated to Rwanda. The process will begin in the next few weeks following a $158M deal struck by the British government and Rwanda last month. Thousands of illegal migrants who haven’t yet been processed in the UK will be granted asylum or refugee status. According to an article in The Guardian UKTom Pursglove, the minister for justice tasked with tackling illegal migration stated in defense of the new immigration scheme that, “This is a new and untested policy at this point in time. I do think that in the fullness of time we will see this policy, as part of a wider package that we are introducing, really shift the dynamic.” The Migration and Economic Development Partnership will likely be beneficial in achieving Rwanda’s economic and social transformation by integrating the asylum seekers into the workforce.&nbsp;1. <a href="http://umeme.co.ug/">http://umeme.co.ug/</a>2. <a href="https://www.monitor.co.ug/uganda/news/national/mps-end-umeme-monopoly-as-electricity-distributor-3781812">https://www.monitor.co.ug/uganda/news/national/mps-end-umeme-monopoly-as-electricity-distributor-3781812</a>3. <a href="https://www.monitor.co.ug/uganda/news/national/uganda-import-rule-boosts-kenya-car-dealers-3779394">https://www.monitor.co.ug/uganda/news/national/uganda-import-rule-boosts-kenya-car-dealers-3779394</a>4. Current Retail Selling Price

Our take on May’s developments in the investment ecosystems of East Africa


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RENEW’s Legal Corner: May 2022

<h1 style="text-align:center;">RENEW’s Legal Corner: April 2022</h1>Our take on last month’s legal developments in the investment landscapes of Ethiopia, Rwanda and Uganda.<figure class="image image_resized" style="width:100%;"><img src="/uploads/097_A2846_254237521f.jpg"></figure><hr>ETHIOPIAA Startup Proclamation that Incentivizes Startups and Investors is in the MakingEthiopia is in the process of enacting a Startup Proclamation that aims to create an innovative ecosystem that is able to promote innovation and job creation. The proclamation that is currently in the draft stage is expected to bring solutions to some of the challenges that startups and innovative businesses face in Ethiopia including barriers to entry and exit, administrative challenges, and access to finance.&nbsp;One of the major measures taken by the Startup Proclamation is incentivizing angel investors to invest in startups and innovative businesses in Ethiopia. The incentives to such investors include tax breaks on capital gains tax and allowing debt investment, among others. [We will be publishing a white paper next week on angel investing in Ethiopia, and will include details on how the Startup Proclamation will likely impact angels.]Road Transport Proclamation in the PipelineThe Ethiopian Ministry of Transport and Logistics released a draft Road Transport Proclamation (Draft Proclamation), which, once enacted, will repeal the nearly decade and a half old Transport Proclamation No. 468/2005 (Transport Proclamation). The revision is needed in order to restructure the road transport sector in a manner that makes it competitive, safe and efficient and cognizant of the economic and social developments of the country. Below, we have summarized some of the major changes that are proposed by the draft proclamation as compared to the current one.Railway Transport Sector RemovedThe current proclamation regulates almost all forms of land transport including railway transport and their operators. However, in reality, this hasn’t been the case since 2017. With the enactment of the Railway Transport Administration Proclamation 1048/2017, the sector has been removed from the Transport Proclamation. Reinforcing that decision, the draft proclamation removed the regulation of railway transport from the scope of application.&nbsp;Maritime Transport Sector RemovedSimilar to the railway transport sector, the maritime sector administration has been part of the Transport Proclamation. However, this has been removed from the transport sector and a separate regulation has been set up per the Maritime Sector Administration Proclamation No. 549/2007. Similarly, the draft proclamation reinforced that decision and left the maritime sector out of the scope of the transport sector regulation.&nbsp;&nbsp;&nbsp;Establishment of the National Road Transport CommissionUnder the current Transport Proclamation, powers in relation to regulating the transport sector are given to the Transport Authority, which is empowered to promote an efficient, adequate, economical and equitable transport system. The new draft proclamation changes the name of the regulator to the National Road Transport Commission, which will have similar mandates to the Transport Authority. However, since there is a need to tie the works of the regulatory body with cross-border activities and neighboring countries, the decision is being taken to elevate the body to a commission.The Use of Technology&nbsp;The draft proclamation emphasizes the need for integrating technology into the transport sector, which is also one of the major reasons for the need to revise the current Transport Proclamation. The use of technology is mainly introduced in relation to data collection and dissemination. The draft proclamation provides for the establishment of a data center for such purposes.&nbsp;<hr>UGANDAChanges in the Coffee Sector Continue to Raise Concern&nbsp;A recent deal between the Ugandan government and Uganda Vinci Coffee Company Limited (UVCC) to set up a coffee processing plant in Uganda has raised concerns based on the exclusive rights given to the company to purchase all the Ugandan coffee to the exclusion of other players in the coffee sector. UVCC has been given free land in the Namanve Investment Park on a 49-year lease agreement and has been granted priority rights over the purchase of coffee to ensure its supply. There is also concern around the tax exemption extended to the investor. According to an article in the <a href="https://www.monitor.co.ug/uganda/news/national/inside-multibillion-coffee-deal-govt-signed-with-uvcc-3769446">Monitor</a>, the agreement, which lasts for a 10 year period, states that ‘the exemptions shall extend to taxes and impositions applicable to all the activities of the company and its foreign staff in respect to the export of green coffee beans.’It further states that ‘where no exemption from tax is allowed under the law of Uganda or exemption provided is inadequate to provide the company with comprehensive relief from taxes or other impositions, then the government undertakes that it will bear the cost of all taxes.’ In effect, this ensures the company will not have to pay any taxes and puts taxpayer money at risk for a deal they had not previously been made aware of or approved.&nbsp;This agreement comes after the recent decision of the Ugandan government to withdraw its membership from the International Organization of Coffee Exporters where it previously has been a pivotal member. The timing also aligns with the new National Coffee Bill passed in August 2020, which requires the registration of coffee farmers and, according to the Monitor, has not been well received.&nbsp;<hr>RWANDAImproved land rights for foreign investors may increase Rwanda’s attractiveness&nbsp;&nbsp;In an effort to position Rwanda as an entrepreneurial hub of Africa, significant changes continue to be made to the country’s laws in order to attract investments from all parts of the world. The new amendments to the land law n° 27/2021 of 10/06/2021 will likely play an instrumental role in achieving this. New land rights regarding state land leases and land concessions were revised alongside the existing rights that apply to nationals and foreigners in Rwanda.Under the new amendments, an <a href="https://www.collinsdictionary.com/dictionary/english/emphyteusis">emphyteutic</a> lease that initially stipulated a lease term of 49 years for investments and 20 years for a residential house extended the term to 99 years for both types of lease. This will likely encourage investors.&nbsp;Regarding freehold titles, historically a foreigner was only allowed full and exclusive rights to land by virtue of international bilateral agreements between Rwanda and other states, if they co-owned the land with a Rwandan citizen who had at least a 51% ownership stake, or were apportioned land in a special economic zone. The new revisions to the land law grants freehold rights to foreigners if approved by a presidential order in exceptional circumstances of strategic national interest. Though this is undefined in the new land law, and no such presidential order has been issued yet, the hope is that the order would cover all strategic investment undertakings under the new investment laws.&nbsp;The additional inclusions to the land law consist of land concession that entails use of private state land for a period not exceeding 49 years for strategic investment like forestry, agriculture and livestock, among others. An article in <a href="https://www.newtimes.co.rw/opinions/foreigners-rights-land-rwanda-new-land-law-and-its-impact-investment">The New Times Rwanda </a>stated that “All projects of national importance are deemed as strategic investments, such projects focus on special impact to the development of the country and its people.” The article further details the state lands lease which is “a State private domain land lease agreement between the State and an investor for strategic investment in construction of infrastructure for commercial purposes such as trade centers, hotels, real estate, restaurants, public parks, tourism sites, schools, hospitals passengers or goods transportation stations and industries.” The lease term is 99 years and can be renewed pending fulfillment of the investor’s tax obligations and diligent land conservation.&nbsp;

Our take on last month’s legal developments in the investment landscapes of Ethiopia, Rwanda and Uganda