Prime Minister Dr. Edouard NGIRENTE presented to both chambers of Parliament two major Government of Rwanda initiatives to mitigate the economic impact COVID-19; the Economic Recovery Fund (ERF) and the Manufacture and Build to Recover Program (MBRP).
The Economic Recovery Fund was established to support the recovery of businesses severely affected by COVID-19 so that they can quickly resume operations and safeguard jobs. The fund was initially launched with Rwf 100 billion and is to be expanded to Rwf 350 billion by the end of 2021.
The incentives under the Manufacture and Build to Recover Program consist mainly of tax exemption on imported construction materials not available in the East African Community, as well as on construction materials sourced domestically, and reduction of tax credits on export revenues.”
Prime Minister Ngirente said:
“All businesses highly impacted by the restrictions put in place to prevent the spread of the virus, or exposed to consumer discretionary spending, and those with global supply chains that have been disrupted, are eligible to apply for the support provided by the Economic Recovery Fund.”
“The Manufacture and Build to Recover Program aims to fast track private sector investments in manufacturing and construction. It will play a big role in reducing the cost of setting up industries of key essential products as well facilitating the expansion of small and medium industries.”
Sectors targeted by the ERF include but are not limited to tourism, manufacturing (including agri-processing), transport and togistics and SMEs linked to domestic and global supply chain.
Construction materials incentives are applicable to a minimum investment of $10 million. Factory construction incentives are applied for a project whose investment is not less than $1 million of construction value for companies opening a subsidiary in Rwanda, and not less than $ 1 million or 20% of total investment when an entity purchases or leases an existing facility to begin new production in Rwanda. (End).