CORPORATE GOVERNANCE STATUS
IN RWANDA
PRESENTED BY:
A.KANTENGWA
THIRD PAN AFRICAN CONSULTATIVE FORUM ON
CORPORATE GOVERNANCE
DAKAR – SENEGAL
NOVEMBER 8TH TO 10TH 2005
CORPORATE GOVERNANCE ISSUES AND ASSESSMENT
TO PROMOTE AN ENABLING ENVIRONMENT FRAMEWORK FOR
CORPORATE ACTIVITIES
TO ENSURE VOLUNTARY ADHERANCE TO GOOD CORPORATE
CITIZENSHIP AND SOCIAL RESPONSIBILITY
TO PROMOTE ETHICAL CORPORATE BEHAVIOR AND ADOPT
BEST PRACTICES
TO ENSURE FAIRNESS AND PROTECTION OF ALL STAKEHOLDERS
 TO ENHANCE ACCOUNTABILITY AND TRANSPARENCY
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STATUS
 TO INCREASE AWARENESS AND ACCEPTANCE OF CORPORATE
GOVERNANCE PRINCIPLES.
TO SENSITIZE ALL STAKEHOLDERS TO IMPROVE AWARENESS OF
THE PRINCIPLES.
TO ADOPT NEW LEGAL AND REGULATORY FRAMEWORK IN LINE
WITH INTERNATIONAL BEST STANDARDS AND PRACTISES.
TO ESTABLISH REGULATORY BODIES TO IMPROVE COMPLIANCE.
TO INCREASE CAPACITY BUILDING IN ORDER TO UPGRADE
SKILLS AND OWNERSHIP.
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CHALLENGES
LOW LEVEL OF AWARENESS OF CORPORATE GOVERNANCE
PRINCIPLES
 LACK OF RELIABLE &UP-TO-DATE STATISTICS
 FAST CHANGING REGULATORY FRAMEWORK
 LARGE PUBLIC AND INFORMAL SECTORS
 LANDLOCKED POSITION AND POOR INFRASTRUCTURE
 HIGH COST OF DOING BUSINESS, FINANCING, UTILITY COST
 INADEQUATE SKILLED PROFESSIONALS
 HIGH POVERTY LEVELS
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ACTION TAKEN TO ADDRESS THE CHALLENGES
COMMERCIAL LAW REFORM
TRADE LIBERALISATION AND TAX REFORM
 PUBLIC ENTERPRISE REFORM AND PRIVATISATION
 FINANCIAL SECTOR STRENGHTNING
 ESTABLISHEMENT OF REGULATORY AND INSTITUTIONAL
FRAMEWORK TO FOSTER PRIVATE SECTOR DEVELOPMENT
 COMMISSIONING CONSULTANCIES
 INVESTMENT IN INFRASTRUCTURE AND LIBERALISATION OF
UTILITY SECTOR
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ASSESSMENT
LEGAL FRAMEWORK: ONGOING LAW REFORM TO BE USER-FRIENDLY FOR BOTH
STAKEHOLDERS AND ADMINISTRATION
LAW
STATUS
 COMPANY , BANKRUPTCY
OUTDATED-UNDERGOING REFORM
TO MODERNISE AND CONSOLIDATE
SOLVENCY LAWS
 REGISTRATION / ORGANISATION
COMMERCIAL ENTREPRISES
 BANKS AND FINANCIAL
INSTITUTIONS
CUMBERSOME-UNDERGOING
REFORM - TO ESTABLISH A
REGISTRAR OF COMPANIES
CENTRAL BANK AND BANKING
ACTS TO BE AMENDED TO
ENHANCE COMPLIANCE WITH
BASLE PRINCIPLES AND BEST
PRACTICES
INCOME TAX ACT
FRAGMENTED, RESULTING INTO
INCOHERENCE AND CONFUSION.
BEING AMENDED, CODEFIED AND
CONSOLIDATED
DOMESTIC AND FOREIGN
TRADE LAW
TO BE UPDATED
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ASSESSMENT
INSTITUTIONAL FRAMEWORK
 RWANDA BUREAU
OF STANDARDS
EXPAND
CAPACITY BUILDING BEING
STRENGHTENED TO
COVERAGE - WORKS
CLOSELY WITH REGIONAL
BUREAUX.
 RWANDA INVESTMENT AND EXPORT
PROMOTION AGENCY
RESTRUCTURED TO FOCUS ON
INVESTMENT AND EXPORTS
 RWANDA NATIONAL TENDER BOARD
RESTRUCTURED AND
DECENTRALISED TO EMPOWER
SELF-ACCOUNTING
MINISTRIES AND
AUTHORITIES.
ENTITIES,
LOCAL
NATIONAL BANK OF RWANDA
MONITORING
SUPERVISORY ROLE
CAPACITY BUILDING IS ON-GOING
TO STRENGHTEN
AND
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ASSESSMENT
INSTITUTIONAL FRAMEWORK Cont’d
INSTITUTE OF CERTIFIED PUBLIC
ACCOUNTANTS
BEING SET UP TO REGULATE THE
PROFESSION, ENFORCE STANDARDS
AND PROFESSIONAL ETHICS.
PRIVATE-PUBLIC’S SECTOR ECONOMIC
FORUM
BRIDGING COMMON VISION FOR
ECONOMIC DEVELOPMENT
TRADE BOARD
CAPACITY BUILDING TO TAKE INTO
ACCOUNTS STAKEHOLDERS
RIGHTS
PRESIDENTIAL ECONOMIC COUNCIL
UNDER THE CHAIRMANSHIP OF
THE PRIVATE SECTOR FEDERATION
ADVISES THE PRESIDENT ON
ECONOMIC ISSUES
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ASSESSMENT
 INSTITUTIONAL FRAMEWORK
Cont’d
RWANDA REVENUE AUTHORITY
TAX CODE AND TAX SYSTEM BEING
AMENDED TO BE USER FRIENDLY.
ONGOING CAPACITY BUILDING TO
IMPROVE EFFICIENCY AND
EFFECTIVENESS
 OFFICE OF AUDITOR GENERAL
CAPACITY BUILDING ONGOING
TO IMPROVE SKILLS AND ENHANCE
ABILITY TO DELIVER QUALITY
SERVICE.
OMBUDSMAN
RECENTLY SET UP, DEVELOPING
OPERATING PROCEDURES AND
BUILDING CAPACITY.
 RITA
IMPLEMENT NATIONAL STRATEGY IN
INFORMATION AND COMMUNICATION
TECHNOLOGY
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ASSESSMENT
INSTITUTIONAL FRAMEWORK Cont’d
RURA
REGULATES PUBLIC UTILITIES.
ONGOING CAPACITY BUILDING
INSURANCE COMMISSION
INSURANCE ACT IS BEING
DEBATTED IN PARLIAMENT
CIVIL AVIATION AUTHORITY
ENSURES SAFETY OF AIR
TRANSPORT
REMA
IMPLEMENT AND MONITOR
ENVIRONMENT POLICY. LAND
AND WATER ACTS ADOPTED. 10
ASSESSMENT
INSTITUTIONAL FRAMEWORK Cont’d
ORTPN
TOURISM POLICY AND RATING
OF HOTELS,RESTAURANT AND
TRAVEL AGENCIES
PRIVATISATION SECRETARIAT ENSURES FAIR AND
TRANSPARENT PRIVATISATION
OF PUBLIC ENTITIES
PROFESSIONAL BODIES
LAW, MEDICAL, INSURANCE,
BANKERS, LAWYERS,
ACCOUNTANTS,…
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CODES AND STANDARDS
“Rwandan
law establishes the primacy of international legal instruments over
domestic legislation. Duly ratified or approved international treaties or
agreements rank above domestic legislation once they have been published in the
Official Gazette »
 INTERNATIONAL ACCOUNTING
STANDARDS(IAS)
ADOPTED FOR USE BY ALL BANKS
ALSO USED BY MULTI-NATIONALS.
TO HARMONISE NATIONAL CHART OF
ACCOUNTS WITH IAS.
 INTERNATIONAL STANDARDS
AUDITING (ISA)
COMPLIED WITH BY ALL
INTERNATIONAL AUDIT FIRMS AND THEIR
AFFILIATE OPERATING IN RWANDA.
 LABOUR CODES
RATIFIED 27 ILO CONVENTIONS
INCLUDING 8 COMPULSARY ONES.
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CODES AND STANDARDS Cont’
BANKING AND FINANCIAL
INSTITUTION
TO
 CORPORATE GOVERNANCE
PRINCIPLES
CENTRAL BANK , BANKING
AND FINANCIAL
ACT BEING REVIEWED
ENSURE COMPLIANCE.
CENTRAL BANK TO ADOPT
DEVELOPPED FRAMEWORK
FOR FINANCIAL INSTITUTIONS
TO BE DEVELOPED FOR
OTHER ENTITIES
 STOCK EXCHANGE
REGULATIONS
BEING DEVELOPED
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CODES AND STANDARDS Cont’
 INSURANCE REGULATIONS
BEING DEVELOPED
AFRICAN CHARTER ON HUMAN
AND PEOPLE’S RIGHTS
RATIFIED
CODES ON INDUSTRIAL AND
ENVIRONMENTAL SAFETY AND
HYGIENE OF THE W.H.O
RATIFIED BUT ENABLING
LAW NOT YET ENACTED.
STEPS BEING TAKEN TO
EFFECTCOMPLIANCE
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ACTION PLAN
Objective
Task
Responsibility
Time Frame
To ensure proper
running of the
stock exchange
and protection of
shareholders.
Develop Core
Task Force
Principles of Stock
Exchange
December 2005
To create
oversight body to
supervise
insurance
industry.
Establishing
Insurance
Commission
MINECOFIN
June 2005
To enhance
efficient and
effective running
of insurance
industry.
Core Principles of
Insurance
Supervision
Insurance
Commission
September
2005
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ACTION PLAN cont…
Objective
Task
Responsibility Time Frame
To modernize and
make commercial
laws consistent.
Company Law
Reform.
MINICOM/
MINIJUST
Dec 2005
To fight fraud
corruption and
comply with best
practice guidelines.
Anti Money
Laundering.
BNR /
Insurance
Commission
Dec 2005
To ensure total
compliance with
Basle I principles.
Banking act
amendment.
BNR
Dec 2005
To establish the
status of Corporate
Governance in the
country.
National Evaluation
of Corporate
Governance.
PSF/
MINECOFIN
Dec 2005
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ACTION PLAN cont…
Objective
Task
To assess level of National
corruption in the Corruption
country.
Survey
Responsibility
Time Frame
Ombudsman
Dec 2005
To govern the
profession and
ensure
compliance with
standards.
Established
Steering
Institute of
Committee /
Certified Public
MINECOFIN
Accountants ( R )
May 2005
To ensure
consistence and
compliance with
IAS.
Harmonize
MINECOFIN/
National Chart of AUDITOR
Accounts with
GENERAL
IAS.
Dec 2005
To improve skills Institutional
efficiency and
Capacity
effectiveness.
Building
(HR & MCBA)
March 2005 – Dec
2010
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THANK YOU FOR YOUR ATTENTION !
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