The Rwandan government has put into place special incentives to stimulate private sector investment in manufacturing and construction under the initiative dubbed manufacture and build to recover program (MBRP). These measures will help the country's economy to recover from the effects of the COVID-19 pandemic.
Under the MBRP, registered investors with general construction projects worth USD 10 million and more can benefit from exemptions from value added tax (VAT) and import duties on construction materials not available in the East African Community and an exemption from VAT on locally sourced materials. The MBRP also offers the same incentives for factory construction projects with a value of USD 1 million.
Further, registered investors in the manufacturing sector can benefit from an exemption from VAT on locally sourced machinery and raw materials.
It should be noted that incentives under the MBRP are not automatically granted. Qualifying registered investors can submit their application to the Rwanda Development Board (RDB) one stop centre for consideration and/or the incentives committee.
The measures were announced by the Prime Minister in his address to both chambers of the parliament on 25 March 2021.