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© 2023 Invest-Time. By Afrik-Shine Medias Group. All rights reserved.
Finance

Rwanda : major reforms to simplify certification and reduce business costs

In an effort to modernize the National Quality Infrastructure (NQI), Rwanda's Ministry of Trade and Industry (MINICOM) has unveiled a series of measures aimed at streamlining the provision of services by key institutions such as the Rwanda Standards Board (RSB), the Rwanda Food and Drug Authority (RFDA) and the Rwanda Inspection, Competition and Consumer Protection Authority (RICA).

By
Aissatou Amirah
Published: 10 January 2025
Last updated: 10 January 2025
4 Min Read
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Rwanda : major reforms to simplify certification and reduce business costs

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All quality and safety licenses and permits issued by these bodies will be valid for five years, renewable subject to compliance with current standards and regulations. An important exception applies, however: licenses relating to the import of pharmaceuticals, vaccines and medical devices are not affected by this reform, and remain subject to stricter requirements.

End of export licenses and simplification of imports

As part of these reforms, the need to obtain an export license has been abolished, unless required by the importing country. This decision, welcomed by economic operators, should considerably reduce the time and costs involved in administrative procedures.

For imports, only products deemed to be high-risk will now require a specific permit. This measure is designed to simplify procedures, while maintaining strict control over products that could represent a danger to consumers.

To encourage the development of small and medium-sized enterprises (SMEs), the government has decided to waive all service charges for this sector. As for large companies, the cost of services offered will not exceed 71.46 USD (100,000 Frw), an amount which will be paid directly into the national treasury, via a dedicated Rwanda Standards Board (RSB) account.

These reductions in certification costs are particularly important at a time when local companies are seeking to increase their competitiveness on both domestic and international markets.

Eliminating institutional overlaps and inefficiencies

One of the recurring criticisms levelled by economic operators was the overlap of responsibilities between the institutions responsible for inspections and certifications. According to the Minister of Commerce and Industry, Prudence Sebahizi, this led to inefficiencies, delays and, above all, multiple fees for similar services. “Cross-border traders, in particular, suffered from this situation. With the new reforms, a product will no longer need to be inspected by more than one institution,” he said.

To avoid duplication of services, clear mandates will now be assigned to specific institutions, such as RICA, RFDA, RSB, NAEB (National Agricultural Export Board) and RAB (Rwanda Agriculture and Animal ResourcesBoard).

Reduction of tariff categories: another step towards simplification

The reforms also include a drastic reduction in the number of tariff categories. The Rwanda Standards Board (RSB) has reduced its fee categories from 1,780 to just 13, while the RFDA has reduced its categories from 276 to 20. This streamlining not only reduces the complexity of the process, but also cuts costs for companies. What’s more, instead of paying several fees for inspections and certifications, companies will now be able to pay a single amount for all the necessary services.

A positive impact on the business environment

These reforms are part of the Rwandan government’s wider efforts to improve the business climate. They address the concerns of economic players, while bringing Rwanda into line with international best practice in certification and regulation. “These reforms represent a step forward in making trade certification and quality services more accessible, efficient and cost-effective for businesses,” said Prudence Sebahizi. She went on to stress that these changes should promote economic growth by stimulating business activities, and attracting more foreign investment.

By simplifying certification processes and reducing costs, the Rwandan government is sending a strong signal to entrepreneurs and investors that Rwanda is a country where business is easy and institutional efficiency is a priority. With an effective date of January 6, 2025, these reforms mark a turning point in the management of the national quality infrastructure. They promise to lighten the burden on businesses, while guaranteeing a high level of compliance with standards and regulations.


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