Privatization Unit in Rwanda

Rwanda through the Rwanda development board (RDB) has a special privatization unit as Asset and Business Management Department.Rwanda Development Board, where many such assets reside, aims to manage the existing assets professionally and, in some cases, privatize them and ensure new investments are made that will facilitate private sector entry in the future.The department only manages assets that are physically developed and ready for operations.

There is value from being managed by the department rather than by the clusters.
For assets meeting the two conditions, if the asset has potential to be commercial i.e. be able to generate revenues to at least fully cover costs it will be managed under Special Purpose Vehicles set up and overseen by the Department. If the asset is not expected to be commercial it will be managed directly by the Department.

The Government of Rwanda has significantly invested in quality infrastructure to create a conducive environment for investments. With a private sector that is still emerging, the Government of Rwanda will continue to make investments in strategic sectors where necessary to facilitate private sector development.

In some cases, the investments can become viable commercial businesses and divesting them will help increase private sector involvement in the economy.

Role of privatization Unit

  • Professional management of assets i.e. set up private companies (SPVs) to manage commercial assets
  • Facilitate private sector takeover of asset where appropriate
  • Maintain a portion of the revenue proceeds on assets given to manage or services rendered by Rwanda Development Board for Rwanda Development Board budget
  • Make new investments into profitable commercial activities to generate financial returns for Rwanda Development Board.

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