Kigali: A World Bank's Investment Climate Assessment (ICA) report on Rwanda has says high infrastructure and labour costs, high tax rates and limited access to finance are the major business constraints in Rwanda.

Compiled in 2006, the ICA report released last week covered 340 firms in the capital Kigali and the southern town of Butare.

"More than 70% of the firms in the manufacturing sector reported electricity to be a major constraint, followed by tax rates(50% of firms) and transport and access to finance(40% of firms)," reads the report in part.

Contrary to firms in manufacturing, firms in service sector (50%) reported that tax rates were their major constraint followed by electricity and access to finance.

Rwanda's electricity remains expensive and unreliable because the country relies heavily on costly heavy fuel machines, according to the State Minister for Energy Eng. Coletha Ruhamya.

Ms. Ruhamya, however, says that more power generation projects are currently in the pipeline to increase the current supply of 75 megawatts per hour.

Trade and Industry Minister Monique Nsanzabaganwa says that the country recently passed Small and Medium Enterprises(SMEs) development policy which provides for creation of SME Development Fund that will among other functions help SMEs to access credit and management expertise.

Rwanda was also informed that firms involved in export market are not more productive than those focusing on domestic markets.

Therefore, the country was urged to increase export products and links with foreign firms.

The ICA Report is one of the tools the WB uses to measure countries' competitiveness.

The report was launched at the same time when the WB was awarding Rwanda for leading the world in doing business reforms in 2010.