A robust bankruptcy system functions as a filter, ensuring the survival of economically efficient companies and reallocating the resources of inefficient ones. Fast and cheap insolvency proceedings result in the speedy return of businesses to normal operation and increase returns to creditors.
Effective commercial dispute resolution has many benefits. Courts are essential for entrepreneurs because they interpret the rules of the market and protect economic rights. Efficient and transparent courts encourage new business relationships because businesses know they can rely on the courts if a customer fails to pay.
In today’s globalized world, making trade between economies easier is increasingly important for business. Excessive document requirements, burdensome customs procedures, inefficient port operations and inadequate infrastructure all lead to extra costs and delays for exporters and importers, stifling trade potential.
While taxes are essential for a government to offer public services, the level of tax rates needs to be carefully chosen and needless complexity in tax rules avoided.
Protecting minority investors matters for the ability of companies to raise the capital they need to grow, innovate, diversify and compete. Effective regulations define related-party transactions precisely, promote clear and efficient disclosure requirements, require shareholder participation in major decisions of the company and set detailed standards of accountability for company insiders.
Rwanda enacted sound laws regarding collateral in 2011 to enable businesses to use their assets, especially movable property, as security to generate capital, while strong creditors’ rights have been associated with higher ratios of private sector credit to GDP.
For businesses, ensuring formal property rights is fundamental, and effective administration of land is at the core of that.
Access to reliable and affordable electricity is vital for businesses, and Rwanda is constantly working to ensure that new electricity consumers get their connection in the easiest way.
Construction regulation needs to be efficient in order to avoid excessive constraints on a sector that plays an important part in every economy.
Registering a business in Rwanda has become easier and quicker over the years. In 2014, the time required to obtain a registration certificate was reduced from one day to six hours, and online registration was introduced. The latter method became mandatory in 2015.