The Rwanda Development Board recently announced the extension of the Manufacture and Build to Recover Program that was introduced in response to the impacts of the COVID-19 pandemic. The program is extended through 2025. Under the program, certain tax benefits are provided for general construction projects with a value of at least USD 10 million, factory construction projects with a value of at least USD 1 million, and agro-processing plant construction projects with a value of at least USD 100,000. Benefits include a VAT and import duties exemption on construction materials not available in the East African Community, as well as a VAT exemption on locally acquired materials. In addition, a VAT exemption is provided on locally sourced machinery and raw materials for registered investors in the manufacturing sectors.
GoR launches Manufacture and Build to Recover Program extension to attract more private sector investments
Today, the Right Honourable Prime Minister, Edouard Ngirente officially launched the extension of the Manufacture and Build to Recover Program during the Invest Rwanda Forum in Kigali. The program will run until 2025.
Introduced in 2020 the program is aimed at boosting economic recovery efforts by attracting private sector investments with specific incentives for the manufacturing, agriculture, construction and real estate development sectors. The sectors were selected given their high potential for increasing private investments, generating export revenues and creating productive jobs.
Since its inception, the program has attracted investments worth over US$ 1.7 billion that will create over 36,000 jobs. This is against the initial target of US$ 1.17 billion investments and 27,000 jobs.
In his keynote address at the forum that attracted over 600 participants, Prime Minister Ngirente noted:
"The incentives offered under the program are very unique and extensive and will contribute significantly towards scaling investment projects, exploring additional opportunities within value chains or starting new business ventures. Given the positive impact of the MBRP over the last two years, it is evident that we need more of such innovative and targeted interventions to address our unique challenges and achieve our ambitious aspirations."
Clare Akamanzi, the Chief Executive Officer at the Rwanda Development Board said that extending the program is crucial for Rwanda’s economy especially in building resilience amid the unstable global economic environment.
"This means that members of the private sector can continue to benefit from the very specialised incentives that this program offers for another two years. The Government of Rwanda remains committed to listening to you and your experiences investing in Rwanda and sometimes even adjusting policies to respond to what you tell them."
During the forum, members of the private sector shared some of the advantages of the program.
"Investing in real estate right after Covid-19 was not easy but with the incentives [under MBRP], the project became more affordable. And now with the program being extended, we are looking forward to working on a new project," said Moise Nsengiyumva, Chairman of Wild Urban International Developments Limited.
The forum featured networking and learning sessions with a range of topics discussed including Rwanda’s Investment Code, Special Economic Zones and Export Development, taxation, advantages of trading through the African Free Continental Area (AfCFTA) and project financing.
An exhibition was also held on the sidelines of the forum. It featured a showcase of the top 100 investment opportunities that the private sector can tap into and access incentives under the Manufacture and Build to Recover Program.