Doing Business 2018 Rwanda Economy Pro le of Rwanda Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Rwanda Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Rwanda Income Category Low income 41 Population 11,917,508 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 700 0 100 73.40 City Covered Kigali DB 2018 Distance to Frontier (DTF) 0 100 77.54: Mauritius (Rank: 25) 73.40: Rwanda (Rank: 41) 54.00: Mozambique (Rank: 138) 50.43: Regional Average (Sub­Saharan Africa) 46.92: Burundi (Rank: 164) Page 3   37.65: Congo, Dem. Rep. (Rank: 182) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Rwanda Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Rwanda Income Category Low income 41 Population 11,917,508 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 700 0 100 73.40 City Covered Kigali DB 2018 Distance to Frontier (DTF) 0 100 77.54: Mauritius (Rank: 25) 73.40: Rwanda (Rank: 41) 54.00: Mozambique (Rank: 138) 50.43: Regional Average (Sub­Saharan Africa) 46.92: Burundi (Rank: 164) 37.65: Congo, Dem. Rep. (Rank: 182) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Rwanda 2 6 1 16 31 28 55 78 78 87 85 82 Rank 112 109 119 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Rwanda 100 93.26 87.66 90.00 84.60 80 73.33 72.44 65.56 60.69 58.62 60 DTF 47.79 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:0.00 Change:+0.59 Change:0.00 Investors Change:+9.82 Borders Change:+1.86 Change:-0.06 Change:+0.49 Permits Change:+16.66 Change:0.00 Change:+2.75 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:0.00 Change:+0.59 Change:0.00 Investors Change:+9.82 Borders Change:+1.86 Change:-0.06 Change:+0.49 Permits Change:+16.66 Change:0.00 Doing Business 2018 Rwanda Change:+2.75 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Rwanda Standardized Company Legal form Limited Liability Company (Société à Responsabilité Limité) Paid-in minimum capital requirement RWF 0 City Covered Kigali Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Procedure – Men (number) 5 7.6 4.9 1.00 (New Zealand) Time – Men (days) 4 24.0 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 44.6 49.9 3.1 0.00 (United Kingdom) Procedure – Women (number) 5 7.7 4.9 1.00 (New Zealand) Time – Women (days) 4 24.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 44.6 49.9 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 25.6 8.7 0.00 (113 Economies) Figure – Starting a Business in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 92.00: Mauritius (Rank: 40) 91.94: Burundi (Rank: 42) 89.78: Congo, Dem. Rep. (Rank: 62) 87.66: Rwanda (Rank: 78) 79.86: Mozambique (Rank: 137) 76.82: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Rwanda – Procedure, Time and Cost Time Cost 4 30 3.5 25 ost (% of income per capita) 3 20 2.5 Time (days) 2 15 1.5 10 Page 6   1 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Rwanda Figure – Starting a Business in Rwanda – Procedure, Time and Cost Time Cost 4 30 3.5 25 Cost (% of income per capita) 3 20 2.5 Time (days) 2 15 1.5 10 1 5 0.5 0 0 1 2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Rwanda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain an electronic signature Less than one day no charge Agency : Rwanda Development Board (RDB) (online procedure) The documents required to obtain an electronic signature are: - Proof of identity (Simple copy) of the managing director or of one of the shareholders of the company being formed or of an authorized representative. Scanned copy of the ID. - Contact Details of the managing director or of one of the shareholders of the company being formed or of an authorized representative - Email account of the managing director or of one of the shareholders of the company being formed or of an authorized representative The e-signature contains the user name and password which are used to log into the system for the registration process. The e-signature used to apply for business registration must be of the managing director or of one of the shareholders of the company being formed or of an authorized representative with powers of attorney. To obtain an electronic signature, applicants sign up with their email addresses and scan their ID cards to be attached to the account application. Once the account is set up, a registration number is generated to enable users to proceed to online registration. This registration number is also the tax identi cation number (TIN) and VAT number of the company. 2 Register the company 1 day no charge Agency : Rwanda Development Board (RDB) Page 7   Online company registration has become mandatory as of February 17th, (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Rwanda Details – Starting a Business in Rwanda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain an electronic signature Less than one day no charge Agency : Rwanda Development Board (RDB) (online procedure) The documents required to obtain an electronic signature are: - Proof of identity (Simple copy) of the managing director or of one of the shareholders of the company being formed or of an authorized representative. Scanned copy of the ID. - Contact Details of the managing director or of one of the shareholders of the company being formed or of an authorized representative - Email account of the managing director or of one of the shareholders of the company being formed or of an authorized representative The e-signature contains the user name and password which are used to log into the system for the registration process. The e-signature used to apply for business registration must be of the managing director or of one of the shareholders of the company being formed or of an authorized representative with powers of attorney. To obtain an electronic signature, applicants sign up with their email addresses and scan their ID cards to be attached to the account application. Once the account is set up, a registration number is generated to enable users to proceed to online registration. This registration number is also the tax identi cation number (TIN) and VAT number of the company. 2 Register the company 1 day no charge Agency : Rwanda Development Board (RDB) Online company registration has become mandatory as of February 17th, 2014. It is free of charge. Entrepreneurs need to check the uniqueness of their company name rst, then they can submit the company documents and obtain an electronic copy of the registration certi cate online as well as an electronic copy of their noti cation on tax duties and obligations. The dossier is subsequently transferred to the Rwanda Revenue Authority (RRA) and all relevant entities' representatives to assign the new company with identi cation numbers. The company code issued is the same number for social security, tax identi cation and VAT. The required documents for submission are: - Duly completed online application - Proof of identity (Simple copy) for each signatory of the memorandum of association form. The documents need to be scans of the national ID for Rwandans - Name of the designated chairperson of the board of directors Starting in July of 2015, VAT registration can be completed during the online registration process. Any person who carries out taxable activities exceeding twenty million Rwandan Francs (20,000,000 RWF) of in the previous scal year, or ve million Rwandan Francs (5,000,000 RWF) in the preceding calendar quarter is required to register for VAT at the Rwanda Development Board within a period of seven (7) days from the end of the year or from the end of the quarter mentioned above. Typically, business entrepreneurs complete online company registration from a Business Development Center or from the Rwandan Development Page 8   users to proceed to online registration. This registration number is also the Doing tax 2018number identi cation Business (TIN) and VAT number of the company. Rwanda 2 Register the company 1 day no charge Agency : Rwanda Development Board (RDB) Online company registration has become mandatory as of February 17th, 2014. It is free of charge. Entrepreneurs need to check the uniqueness of their company name rst, then they can submit the company documents and obtain an electronic copy of the registration certi cate online as well as an electronic copy of their noti cation on tax duties and obligations. The dossier is subsequently transferred to the Rwanda Revenue Authority (RRA) and all relevant entities' representatives to assign the new company with identi cation numbers. The company code issued is the same number for social security, tax identi cation and VAT. The required documents for submission are: - Duly completed online application - Proof of identity (Simple copy) for each signatory of the memorandum of association form. The documents need to be scans of the national ID for Rwandans - Name of the designated chairperson of the board of directors Starting in July of 2015, VAT registration can be completed during the online registration process. Any person who carries out taxable activities exceeding twenty million Rwandan Francs (20,000,000 RWF) of in the previous scal year, or ve million Rwandan Francs (5,000,000 RWF) in the preceding calendar quarter is required to register for VAT at the Rwanda Development Board within a period of seven (7) days from the end of the year or from the end of the quarter mentioned above. Typically, business entrepreneurs complete online company registration from a Business Development Center or from the Rwandan Development Board o ces. This is due to lack of knowledge about the online portal, as it is still a very new system. 3 Purchase an electronic billing machine 1 day RWF 150,000 Agency : Certi ed Supplier approximately By law, every company or tax payer must buy an electronic billing machine from a certi ed supplier. This is a new requirement based on the Ministerial Order No. 002/13/10TC of 31/07/2013 on Modalities of use of a certi ed Electronic Billing Machine, which was published in the O cial Gazette Nr. 34 of 26/08/2013. Every invoice needs to be printed with this electronic billing machine. The machine costs about RWF 150,000. 4 Register employees at the Social Security O ce Less than one day no charge Agency : Rwanda Social Security Board (RSSB) (online procedure) In order to register employees for social security, the employer must go to the Social Security O ce to provide the employees’ information on a ash disc. This information is uploaded within 2 hours. Filing of returns is done quarterly. This procedure has been available online since December 2013. 5 Obtain a trading license (“patente”) 1 day RWF 90,000 Agency : Tax Administration - Sector Level Every company needs to pay for a trading license (“patente”). The cost of the trading license depends on the company’s annual turnover and the type of business – for companies with a turnover above 40,000,000, the trading license costs RWF 90,000 (based on Law No. 59/2011 of December 31, 2011). The fee of the trading license can be paid during the scal year (paid annually Page 9   before March 31). The new company must go to the tax administration at the disc. This information is uploaded within 2 hours. Filing of returns is done Doing quarterly. Business This procedure 2018 has been available online since December 2013. Rwanda 5 Obtain a trading license (“patente”) 1 day RWF 90,000 Agency : Tax Administration - Sector Level Every company needs to pay for a trading license (“patente”). The cost of the trading license depends on the company’s annual turnover and the type of business – for companies with a turnover above 40,000,000, the trading license costs RWF 90,000 (based on Law No. 59/2011 of December 31, 2011). The fee of the trading license can be paid during the scal year (paid annually before March 31). The new company must go to the tax administration at the Sector level where the company is located. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) Page 10   - Will be 150 meters (492 feet) from the existing water source and sewer Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Rwanda Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 11   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Rwanda Standardized Warehouse Estimated value of warehouse RWF 26,903,094.00 City Covered Kigali Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Procedures (number) 15 14.8 12.5 7.00 (Denmark) Time (days) 113 147.5 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 13.2 9.9 1.6 0.10 (5 Economies) Building quality control index (0-15) 14.0 8.0 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.45: Mauritius (Rank: 9) 72.80: Mozambique (Rank: 56) 65.56: Rwanda (Rank: 112) 63.91: Congo, Dem. Rep. (Rank: 121) 56.91: Regional Average (Sub-Saharan Africa) 51.16: Burundi (Rank: 168) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Rwanda – Procedure, Time and Cost Time Cost 8 100 7 Cost (% of warehouse value) 6 80 5 Time (days) 60 4 40 3 2 20 1 0 0 1 *2 *3 4 5 *6 7 *8 9 10 11 12 13 14 * 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 12   component indicators. Doing Business 2018 Rwanda Figure – Dealing with Construction Permits in Rwanda – Procedure, Time and Cost Time Cost 8 100 7 Cost (% of warehouse value) 6 80 5 Time (days) 60 4 40 3 2 20 1 0 0 1 *2 *3 4 5 *6 7 *8 9 10 11 12 13 14 * 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Rwanda and comparator economies – Measure of Quality 16 14.0 14.0 14 12 11.0 Index score 10 8.0 8.0 8 6 4 3.0 2 0 Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Details – Dealing with Construction Permits in Rwanda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and Obtain a Geotechnical Study 14 days RWF 2,000,000 Agency : Private Company According to Art. 1.5.1.5 of the Building Code enacted in May 2015, it is mandatory to attach a geotechnical report except for Category 1 - the warehouse in case study of Doing Business is not a Category 1 - BuildCo. will hire a private company to do a geotechnical report to be submitted to the One-Stop Center. 2 Apply for an Environmental Impact Assessment Certi cate online and 7 days no charge awaits inspection Page 13   Agency : Rwanda Development Board Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Doing Business 2018 Rwanda Details – Dealing with Construction Permits in Rwanda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and Obtain a Geotechnical Study 14 days RWF 2,000,000 Agency : Private Company According to Art. 1.5.1.5 of the Building Code enacted in May 2015, it is mandatory to attach a geotechnical report except for Category 1 - the warehouse in case study of Doing Business is not a Category 1 - BuildCo. will hire a private company to do a geotechnical report to be submitted to the One-Stop Center. 2 Apply for an Environmental Impact Assessment Certi cate online and 7 days no charge awaits inspection Agency : Rwanda Development Board According to Article 1.5.1.5. Content of new building construction permit application le - it is a requirement to submit an Environmental Impact Assessment Certi cate when requesting a building permit. The application is made online on the RDB website http://osc.rdb.rw/. Several documents must be provided, such as the site plan, the oor plans (ground oor and the rst oor), the ownership certi cate as well as a project brief. The RDB will conduct a site inspection to check the impact such development will have on the environment and will prepare the Terms of reference for the expert to be hired to conduct the environmental report. 3 Request and Obtain topographic survey (lever topographique) 5 days USD 500 Agency : Private Company The topographic survey (lever topographique) is conducted to ascertain the topography of the existing ground and shall be carried out for identi cation, location, alignment and depth of various utilities below the surface of the existing ground level. 4 Receive site inspection by the Rwanda Development Board and awaits 14 days no charge the TOR Agency : Rwanda Development Board The Rwanda Development Board conducts a site inspection in order to draft the Terms of Reference for the environmentalist to be hired by BuildCo to do the environmental study for the building permit. 5 Hire an environmental expert and obtain the EIA report 14 days RWF 570,000 Agency : Private company Art 1.5.1.5. Content of new building construction permit application le made it mandatory to have an external environmental expert to do a study on the impact of the construction on the environment. This report must be very detailed and consider every aspect that might a ect the environment. Only an expert certi ed by the Rwanda Development Board can be hired, and a list is available on the RDB website. This expert will provide a environment study report to BuildCo that will be submitted when requesting a building permit Page 14   6 Hire private rm for inspections during construction 1 day RWF 538,062 the Terms of Reference for the environmentalist to be hired by BuildCo to do Doing the 2018 study environmental Business for the building permit. Rwanda 5 Hire an environmental expert and obtain the EIA report 14 days RWF 570,000 Agency : Private company Art 1.5.1.5. Content of new building construction permit application le made it mandatory to have an external environmental expert to do a study on the impact of the construction on the environment. This report must be very detailed and consider every aspect that might a ect the environment. Only an expert certi ed by the Rwanda Development Board can be hired, and a list is available on the RDB website. This expert will provide a environment study report to BuildCo that will be submitted when requesting a building permit 6 Hire private rm for inspections during construction 1 day RWF 538,062 Agency : Private Firm A private rm is engaged to certify the set-out as well as to supervise the construction work. With the recent implementation of the self-certi cation, the need to have a supervising engineer is necessary to certify that the set- out has been done according to regulations and that the approved set-back and building layout (footprint) has been properly implemented. In addition, due to decennial liability of the architect and builder, a private rm must supervise the construction so that the decennial insurance will apply. 7 Apply for the building permit (online), the environmental impact 30 days RWF 60,000 assessment Certi cate and the water connection Agency : One Stop Center BuildCo can apply for the building permit, the environmental impact assessment Certi cate and water connection at the one-stop center (OSC). Since February 1, 2013, the application can be done online at www.kcps.gov.rw. The Ministerial Order N° 003/2008 of 15/08/2008 requires that all developmental projects shall be subjected to an environmental impact assessment (EIA) before obtaining authorization for their implementation. The developer submits an environmental report prepared by an environmental expert approved by the Rwanda Development Board to obtain the environmental impact assessment certi cate. The preliminary assessment will be evaluated by the EIA review team at the OSC to determine if a full EIA study is required. The decision made after the evaluation will be provision for a full EIA or the delivery of an Environmental Impact Assessment Certi cate. The following documents must be submitted for the permit: • Land ownership documents • Location maps • Site analysis • Environmental impact assessment report or clearance • Site plan • Architectural and structural plans • Building services: - Plumbing, drainage, storm water and waste water data - Electrical, telecommunication and mechanical data • Safety measure plan ( re management, disaster prevention, etc.) • Estimated cost of constructions 8 Receive joint site-inspection for permit and water 1 day no charge Page 15   • Safety measure plan ( re management, disaster prevention, etc.) Estimated cost Doing •Business 2018 of constructions Rwanda 8 Receive joint site-inspection for permit and water 1 day no charge Agency : One Stop Center There is a joint visit by the one-stop center and all the relevant services such as the water agency, cadastre and the municipality. These agencies will verify the feasibility of the project in regards to connection to utilities, if the deed plan is correct and that no construction has started. 9 Notify the One-stop Center of commencement of work 1 day no charge Agency : One Stop Center Per the new Building Code, prior to commencement of work, the Builder must inform the One Stop Center by sending Form 5: Notice for commencement of works. 10 Receive site immobilisation inspection 1 day no charge Agency : One Stop Center According to Article 5.14.1.3.2. - Chapter 5 of the Building Code, there are three stages of inspections, the rst one is the site mobilization and set out inspection. During this inspection, the inspectors will inspect the site, verify that there is water, electricity, sanitation for workers, safety (such as helmets) and also the set out of the building. The construction site is fenced and the beacons for the excavation are laid out and the inspectors will check that there is no encroachment on other property. 11 Receive foundation inspection 1 day no charge Agency : One Stop Center 12 Request nal inspection, occupancy permit and freehold land title 1 day no charge Agency : One Stop Center According to Art. 1.5.14.2. of the Building Code, the owner of the new warehouse must request a certi cate of occupancy and freehold title at the One stop Center. 13 Receive nal inspection 7 days no charge Agency : One Stop Center The inspectors from the District will visit the property, accompanied by other agencies, such as the Fire Department. 14 Obtain water connection 30 days no charge Agency : EWSA According to the Public announcement f 11.07.024/982/14/CEO-DCS/JS-LR/fg from the Water & Sanitation Corporation (WASAC), that all administrative fees, caution fees as well as material and labor fees have been removed for all commercial and industrial buildings meeting certain criteria. Obtain occupancy permit and the freehold land title 7 days no charge 15 Agency : One Stop Center According to Article 12 of the Ministerial Order N°06/Cab.M/015 Of 08/06/2015 Determining The Instructions Of Categorization Of Buildings, Conditions And Procedure For Application For And Issuance Of Building Permits, the owner of a newly constructed building can request the occupancy permit and the freehold land title at the same time at the one- stop center. BuildCo must submit a certi cate that the electrical installation has been Page 16   veri ed by certi ed electricians, the as-built plans and all requirements fees, caution fees as well as material and labor fees have been removed for Doing all commercial Business 2018and industrial Rwanda buildings meeting certain criteria. Obtain occupancy permit and the freehold land title 7 days no charge 15 Agency : One Stop Center According to Article 12 of the Ministerial Order N°06/Cab.M/015 Of 08/06/2015 Determining The Instructions Of Categorization Of Buildings, Conditions And Procedure For Application For And Issuance Of Building Permits, the owner of a newly constructed building can request the occupancy permit and the freehold land title at the same time at the one- stop center. BuildCo must submit a certi cate that the electrical installation has been veri ed by certi ed electricians, the as-built plans and all requirements related to re safety. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Rwanda – Measure of Quality Answer Score Building quality control index (0-15) 14.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 3.0 What types of inspections (if any) are required by law to be carried out during Inspections by 2.0 construction? (0-2) external engineer or rm; Inspections at various phases; Risk-based inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is Page 17   done by Takes place simultaneously with previous procedure. Doing Business 2018 Rwanda Details – Dealing with Construction Permits in Rwanda – Measure of Quality Answer Score Building quality control index (0-15) 14.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 3.0 What types of inspections (if any) are required by law to be carried out during Inspections by 2.0 construction? (0-2) external engineer or rm; Inspections at various phases; Risk-based inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 Page 18   possible structural aws or problems in the building once it is in use (Latent Defect required by law Construction Doing Business 2018 Rwanda company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance ; Insurance is commonly taken in practice. Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Being a registered architect or engineer. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst Page 19   time. architect or engineer. Doing Business 2018 Rwanda Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 20   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Rwanda Standardized Connection Price of electricity (US cents per kWh) 16.4 Name of utility REG - EUCL City Covered Kigali Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Procedures (number) 4 5.3 4.7 2 (United Arab Emirates) Time (days) 34 115.3 79.1 10 (United Arab Emirates) Cost (% of income per capita) 2722.6 3737.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 0 0.9 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.03: Mauritius (Rank: 51) 60.69: Rwanda (Rank: 119) 52.54: Mozambique (Rank: 150) 45.91: Regional Average (Sub-Saharan Africa) 33.59: Congo, Dem. Rep. (Rank: 175) 26.45: Burundi (Rank: 182) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Rwanda – Procedure, Time and Cost Time Cost 3000 30 2500 Cost (% of income per capita) 25 2000 Time (days) 20 1500 15 1000 10 5 500 Page 21   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Rwanda Figure – Getting Electricity in Rwanda – Procedure, Time and Cost Time Cost 3000 30 2500 Cost (% of income per capita) 25 2000 Time (days) 20 1500 15 1000 10 5 500 0 0 1 *2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Rwanda and comparator economies – Measure of Quality 7 6 6 5 Index score 4 3 2 0.9 1 0 0 0 0 0 Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Details – Getting Electricity in Rwanda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application and await estimate of connection fees 8 calendar days USD 0 Agency : REG-EUCL The customer has to ll out an application form. A copy of the ID card should be attached to the application. This procedure is done in person at the utility. After the external inspection, the customer receives the estimate of the connection fees. 2 Obtain external inspection 1 calendar day RWF 0 Agency : REG-EUCL After approval of the application by the technical department, the customer has to pay a fee at REG-EUCL and arrange an appointment with technical Page 22   Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Doing Business 2018 Rwanda Details – Getting Electricity in Rwanda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application and await estimate of connection fees 8 calendar days USD 0 Agency : REG-EUCL The customer has to ll out an application form. A copy of the ID card should be attached to the application. This procedure is done in person at the utility. After the external inspection, the customer receives the estimate of the connection fees. 2 Obtain external inspection 1 calendar day RWF 0 Agency : REG-EUCL After approval of the application by the technical department, the customer has to pay a fee at REG-EUCL and arrange an appointment with technical experts from the utility. Usually, the technicians will be available to visit the property within 24 to 48 hours after payment. The customer then picks up technicians at the utility and takes them to the property for an external inspection of the site. 3 Purchase material for external connection 11 calendar days USD 19,058 Agency : Customer The customer can purchase the material for the external connection himself. 4 Obtain external works, meter installation and nal connection by utility 15 calendar days USD 0 Agency : REG-EUCL The utility is in charge of the external connection works, however the utility outsources the works to private companies. The meter is installed at the same time. Electricity starts owing immediately after the meter has been opened. Takes place simultaneously with previous procedure. Details – Getting Electricity in Rwanda – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 10.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Page 23   Takes place simultaneously with previous procedure. Doing Business 2018 Rwanda Details – Getting Electricity in Rwanda – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 10.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.rura.rw/ uploads/media/Boar d_Decision_on_Elect ricity_End_user_Tarif f.pdf Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 24   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Rwanda Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value RWF 26,903,094.00 City Covered Kigali Page 25   Sub-Saharan OECD high Doing Business 2018 Rwanda Standard Property Transfer Property value RWF 26,903,094.00 City Covered Kigali Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Procedures (number) 3 6.2 4.6 1.00 (4 Economies) Time (days) 7 59.3 22.3 1.00 (3 Economies) Cost (% of property value) 0.1 7.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 28.0 8.6 22.7 29.00 (Singapore) Figure – Registering Property in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.26: Rwanda (Rank: 2) 77.89: Mauritius (Rank: 35) 62.54: Burundi (Rank: 95) 59.27: Mozambique (Rank: 104) 51.71: Regional Average (Sub-Saharan Africa) 45.85: Congo, Dem. Rep. (Rank: 158) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Rwanda – Procedure, Time and Cost Time Cost 7 0.12 6 0.1 Cost (% of property value) 5 0.08 Time (days) 4 0.06 3 0.04 2 0.02 1 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 26   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Rwanda Figure – Registering Property in Rwanda – Procedure, Time and Cost Time Cost 7 0.12 6 0.1 Cost (% of property value) 5 0.08 Time (days) 4 0.06 3 0.04 2 0.02 1 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Rwanda and comparator economies – Measure of Quality 30 28.0 25 20 Index score 17.0 15 10.0 9.5 10 8.6 4.5 5 0 Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Details – Registering Property in Rwanda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct a title search at the District Land Registry 1 day Transfer Fees RWF Agency : Rwanda Land Management and Use Authority 20,000 + Notary Fees RWF 2,000 + Fees to The buyer should perform due diligence before entering into a sale establish a new agreement with the owner of the property by making sure that the property Registration has no charges against it. The buyer will request a title search with the O ce certificate: RWF 5,000 of the Registrar of Land Titles District Land Registry. A letter will be issued by as established by the O ce of the Registrar providing information on the status of the property. Presidential Order No. 25/01 of At this time if the potential buyer is satis ed with the search, he/she will pay 09/07/2012 the total amount of RWF 27,000 Establishing the List Page 27   of Fees And Other Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Doing Business 2018 Rwanda Details – Registering Property in Rwanda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct a title search at the District Land Registry 1 day Transfer Fees RWF Agency : Rwanda Land Management and Use Authority 20,000 + Notary Fees RWF 2,000 + Fees to The buyer should perform due diligence before entering into a sale establish a new agreement with the owner of the property by making sure that the property Registration has no charges against it. The buyer will request a title search with the O ce certificate: RWF 5,000 of the Registrar of Land Titles District Land Registry. A letter will be issued by as established by the O ce of the Registrar providing information on the status of the property. Presidential Order No. 25/01 of At this time if the potential buyer is satis ed with the search, he/she will pay 09/07/2012 the total amount of RWF 27,000 Establishing the List of Fees And Other Transfer Fees: RWF 20,000 (Art. 16 of the O cial Gazette nº Special of Charges Levied By 27/07/2012 – Page 67) Decentralized Entities And Notary Fees: RWF 2,000 (art. 17 of the O cial Gazette nº Special of Determining Their 27/07/2012 – page 70) - Presidential Order N°25/01 of 09/07/2012 Thresholds and Establishing the List of Fees And Other Charges Levied By Decentralized Presidential Order Entities And Determining Their Thresholds No. 100/01 of 24/02/2017 Fees to establish a new Registration certi cate: RWF 5,000 (Art. 16 of the Determining Fees O cial Gazette nº Special of 27/07/2012 – Page 69) Paid for Notarial Services. There is no more need to pay for additional copies; the RWF 5,000 includes the fees for 3 copies + the cost of the cancellation of the old registration certi cate. This information is posted in the Land Registry. 2 The sale agreement is notarized 2 days Paid in procedure 1 Agency : Notary at the Sector level The law requires that the sale agreement be authenticated by a notary. Article 35 of the property law speci es that for the transfer of any property, any adult of 21 years or older, must give their consent to the transfer of property. It is the practice that parties ask the notary to draft the sale agreement himself. In order to facilitate land transfers, the District Land Registry set up a short form of 2 pages, ful lled by the parties to the contract. In principle, the contract shall be made of 3 mandatory copies, 2 of which are given to the parties (the buyer and the seller), the remaining (which is actually the minute) is kept by the land notary in his/her records. The buyer and seller will meet with the notary at the Sector Level to sign the sales agreement. There must be two witnesses signing on the sales agreement as well. 3 Finalize registration at the District Land Registry and obtain new deed 4 days Paid in procedure 1 Agency : District Land Registry The seller takes the authenticated sale agreement, the registration receipt and the certi cate of good scal standing to the Land Registry and les a request of the transfer of property. Page 28   The documents to be provided are the following: sales agreement. There must be two witnesses signing on the sales Businessas Doing agreement well. Rwanda 2018 3 Finalize registration at the District Land Registry and obtain new deed 4 days Paid in procedure 1 Agency : District Land Registry The seller takes the authenticated sale agreement, the registration receipt and the certi cate of good scal standing to the Land Registry and les a request of the transfer of property. The documents to be provided are the following: (1) Completed form to request the transfer (2) Original property title (3) The notarized sale agreement (4) Copies of identi cation of the buyer and seller (5) Proof of payment of transfer and notarial fees equivalent to twenty seven thousand Rwandan Francs paid into the bank account of the district where the land is located. Once the request is made at the District Land Registry level, the document will be scanned and sent to the Rwanda Natural Resources Authority where it will be approved and the new title signed. The new title will then be sent to the District Level where the new owner will come and pick it up. Takes place simultaneously with previous procedure. Details – Registering Property in Rwanda – Measure of Quality Answer Score Quality of the land administration index (0-30) 28.0 Reliability of infrastructure index (0-8) 8.0 What is the institution in charge of immovable property registration? Rwanda Land Management and Use Authority In what format are the majority of title or deed records kept in the largest business city Computer/Fully 2.0 —in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Rwanda Land Management and Use Authority In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 Page 29   the same identi cation number for properties? Takes place simultaneously with previous procedure. Doing Business 2018 Rwanda Details – Registering Property in Rwanda – Measure of Quality Answer Score Quality of the land administration index (0-30) 28.0 Reliability of infrastructure index (0-8) 8.0 What is the institution in charge of immovable property registration? Rwanda Land Management and Use Authority In what format are the majority of title or deed records kept in the largest business city Computer/Fully 2.0 —in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Rwanda Land Management and Use Authority In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 4.5 Who is able to obtain information on land ownership at the agency in charge of Only 0.0 immovable property registration in the largest business city? intermediaries and interested parties Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: www.rnra.rw Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: Presidential Order n°25/01 of 09/07/2012 establishing the list of fees and other charges Page 30   levied by immovable property registration in the largest business city made publicly available– and if Doing so, how? 2018 Business Rwanda Link for online access: Presidential Order n°25/01 of 09/07/2012 establishing the list of fees and other charges levied by decentralized entities and determining their thresholds, published in the O cial Gazette number Special of 27/07/2012, available online at: http://rnra.rw/ l eadmin/user_upl oad/documents/l and_law_policies/ New_Fees_Presid ential_Order_O cial_Gazette_no_ Special_of_27_07 _2012.pdf Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://rnra.rw/ l eadmin/user_upl oad/documents/l and_doc/service_ standard.pdf Is there a speci c and separate mechanism for ling complaints about a problem that Yes 1.0 occurred at the agency in charge of immovable property registration? Contact information: http://rnra.rw/in dex.php?id=160 Are there publicly available o cial statistics tracking the number of transactions at the Yes 0.5 immovable property registration agency? Number of property transfers in the largest business city in 2015: 12572.0 Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries and interested parties Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: Presidential Order n°25/01 of 09/07/2012 Page 31   Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and Doing if so, how? Business 2018 Rwanda Link for online access: Presidential Order n°25/01 of 09/07/2012 establishing the list of fees and other charges levied by decentralized entities and determining their thresholds, published in the O cial Gazette number Special of 27/07/2012, available online at: http://rnra.rw/ l eadmin/user_upl oad/documents/l and_law_policies/ New_Fees_Presid ential_Order_O cial_Gazette_no_ Special_of_27_07 _2012.pdf Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: http://rnra.rw/ l eadmin/user_upl oad/documents/l and_doc/service_ standard.pdf Is there a speci c and separate mechanism for ling complaints about a problem that Yes 0.5 occurred at the cadastral or mapping agency? Contact information: http://rnra.rw/in dex.php?id=160 Geographic coverage index (0–8) 8.0 Are all privately held land plots in the economy formally registered at the immovable Yes 2.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? Yes 2.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 7.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Page 32   Is the system of immovable property registration subject to a state or private Yes 0.5 Land dispute Doing 2018 index resolution Business (0–8) Rwanda 7.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a Intermediate property worth 50 times gross national income (GNI) per capita and located in the Court of the largest business city, what court would be in charge of the case in the rst instance? location of the plot How long does it take on average to obtain a decision from the rst-instance court for Less than a year 3.0 such a case (without appeal)? Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Page 33   Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Rwanda Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Strength of legal rights index (0-12) 10 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 8 3.0 6.6 8.00 (34 Economies) Page 34   Credit registry coverage (% of adults) 8.2 6.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Rwanda Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Strength of legal rights index (0-12) 10 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 8 3.0 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 8.2 6.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 19.5 8.2 63.7 100.00 (23 Economies) Figure – Getting Credit in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Rwanda (Rank: 6) 65.00: Mauritius (Rank: 55) 40.73: Regional Average (Sub-Saharan Africa) 30.00: Congo, Dem. Rep. (Rank: 142) 25.00: Mozambique (Rank: 159) 10.00: Burundi (Rank: 177) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Rwanda and comparator economies 12 10 10 8 Index score 6 6 6 5.1 4 2 2 1 0 Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Details – Legal Rights in Rwanda Strength of legal rights index (0-12) 10 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Page 35   Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Doing Business 2018 Rwanda Details – Legal Rights in Rwanda Strength of legal rights index (0-12) 10 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be Yes performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Rwanda and comparator economies 10 8 8 7 Index score 6 4 4 3.0 2 0 0 0 Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Details – Credit Information in Rwanda Page 36   0 0 0 Rwanda Doing Business 2018 Burundi Rwanda Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Details – Credit Information in Rwanda Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes Yes 1 Are both positive and negative credit data distributed? Yes Yes 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - Yes No 1 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes Yes 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes Yes 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes Yes 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 8 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 1,247,086 523,342 Number of firms 65,732 32,065 Total 1,312,818 555,407 Percentage of adult population 19.5 8.2 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 37   transactions; Available legal remedies (damages, Percentage of adult population 19.5 8.2 Doing Business 2018 Rwanda Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 7 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7.7 4.0 6.4 Page 38   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Rwanda Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 7 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7.7 4.0 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.33: Rwanda (Rank: 16) 66.67: Mauritius (Rank: 33) 43.72: Regional Average (Sub-Saharan Africa) 43.33: Burundi (Rank: 132) 41.67: Mozambique (Rank: 138) 36.67: Congo, Dem. Rep. (Rank: 164) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Rwanda and comparator economies – Measure of Quality Rwanda 7 9 7 8 8 5 Burundi 2 7 8 1 6 2 Congo, Dem. Rep. 4 1 7 3 4 3 Mauritius 7 8 6 3 7 9 Mozambique 1 4 5 2 6 7 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Sub-Saharan Africa 4.2 3.5 5.5 3.3 4.6 5.6 0 5 10 15 20 25 30 35 40 45 50 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Rwanda – Measure of Quality Answer Score Page 39   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Rwanda Details – Protecting Minority Investors in Rwanda – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 7 Extent of disclosure index (0-10) 7 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0 excluding interested parties Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 9 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if unfair or 2.0 caused to Buyer? (0-2) prejudicial Can shareholders hold the other directors liable for the damage the transaction caused Liable if unfair or 2.0 to Buyer (0-2) prejudicial Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair 2.0 or prejudicial Ease of shareholder suits index (0-10) 5 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) No 0.0 Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Page 40   Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0 Can the Doing obtain any plainti 2018 Business documents from the defendant and witnesses at trial? (0-3) Rwanda No 0.0 Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0 questions only Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes regardless of 2.0 outcome Extent of shareholder governance index (0-10) 7.7 Extent of shareholder rights index (0-10) 8 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require Yes 1.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 8 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Page 41   Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Doing Business 2018 Rwanda Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a Yes 1.0 maximum period set by law? Extent of corporate transparency index (0-10) 7 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general No 0.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with Page 42   post ling processes. Information is also compiled on frequency of ling Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Rwanda Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Payments (number per year) 8 37.2 10.9 3 (Hong Kong SAR, China) Page 43   return, but within the tax assessment period. Doing Business 2018 Rwanda Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Payments (number per year) 8 37.2 10.9 3 (Hong Kong SAR, China) Time (hours per year) 94.5 280.8 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 33.2 46.8 40.1 18.47% (32 Economies) Postfiling index (0-100) 63.68 54.39 83.45 99.38 (Estonia) Figure – Paying Taxes in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.85: Mauritius (Rank: 10) 84.60: Rwanda (Rank: 31) 66.13: Mozambique (Rank: 117) 60.34: Burundi (Rank: 138) 57.49: Regional Average (Sub-Saharan Africa) 39.40: Congo, Dem. Rep. (Rank: 181) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Rwanda and comparator economies – Measure of Quality 100 87.65 90 80 70 63.68 Index score 58.56 60 54.39 50 40 28.21 27.08 30 20 10 0 Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Details – Paying Taxes in Rwanda Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% Notes contribution (number) Payments (hours) tax rate Tax base of profit) on TTR Page 44   Corporate income 1 online 19 30% taxable profit 25.74 Doing Business 2018 Rwanda Figure – Paying Taxes in Rwanda and comparator economies – Measure of Quality 100 87.65 90 80 70 63.68 Index score 58.56 60 54.39 50 40 28.21 27.08 30 20 10 0 Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Details – Paying Taxes in Rwanda Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% Notes contribution (number) Payments (hours) tax rate Tax base of profit) on TTR Corporate income 1 online 19 30% taxable profit 25.74 tax Social security 1 online 29 3.3% gross salaries excluding 5.94 contributions - transport allowance paid employer in cash Business license 1 RWF fixed fee 1.23 250,000 Property tax 1 0.1% Value of building 0.10 Property transfer 1 RWF fixed fee 0.10 tax 20,000 Road Maintenance 1 RWF 0.08 Levy 62.17 per litre Accident insurance 0 jointly 2% gross salaries 0.00 Fuel tax 1 fee per fuel consumption 0.00 small liter amount Value added tax 1 online 47 18% value added 0.00 not (VAT) included Withheld 0 gross salaries 0.00 withheld contributions Totals 8 94.5 33.2 Details – Paying Taxes in Rwanda – Tax by Type Taxes by type Answer Page 45   Profit tax (% of profit) 25.7 Totals 8 94.5 33.2 Doing Business 2018 Rwanda Details – Paying Taxes in Rwanda – Tax by Type Taxes by type Answer Profit tax (% of profit) 25.7 Labor tax and contributions (% of profit) 5.9 Other taxes (% of profit) 1.5 Details – Paying Taxes in Rwanda – Measure of Quality Answer Score Post ling index (0-100) 63.68 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 9.0 82 Time to obtain a VAT refund (weeks) 41.2 26.71 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 50% - 74% Time to comply with a corporate income tax audit (hours) 19.0 67.89 Time to complete a corporate income tax audit (weeks) 7.0 78.13 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 46   Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Rwanda Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 47   of agriculture or industry, national security agencies and any other Doing Business 2018 Rwanda government authorities. Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Time to export: Border compliance (hours) 97 100.1 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 183 592.1 149.9 0.00 (19 Economies) Time to export: Documentary compliance 42 87.8 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 110 215.1 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 86 136.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 282 686.8 111.6 0.00 (27 Economies) Time to import: Documentary compliance 48 103.0 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 121 300.1 25.6 0.00 (30 Economies) Figure – Trading across Borders in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.90: Mauritius (Rank: 70) 72.44: Rwanda (Rank: 87) 67.25: Mozambique (Rank: 109) 52.56: Regional Average (Sub-Saharan Africa) 47.02: Burundi (Rank: 164) 1.26: Congo, Dem. Rep. (Rank: 188) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Rwanda – Time and Cost Time Cost 120 282 300 97 100 250 86 80 183 200 Time (hours) Cost (USD) 60 150 48 121 42 110 40 100 20 50 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 48   Doing Business 2018 Rwanda Figure – Trading across Borders in Rwanda – Time and Cost Time Cost 120 282 300 97 100 250 86 80 183 200 Time (hours) Cost (USD) 60 150 48 121 42 110 40 100 20 50 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Rwanda Characteristics Export Import Product HS 09 : Coffee, tea, matï and spices HS 8708: Parts and accessories of motor vehicles Trade partner Kenya United Arab Emirates Border Gatuna border crossing Rusomo border crossing Distance (km) 83 152 Domestic transport time (hours) 3 11 Domestic transport cost (USD) 293 363 Details – Trading across Borders in Rwanda – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 50.0 150.0 Export: Clearance and inspections required by agencies other than customs 47.3 33.3 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 84.0 282.1 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 4.7 0.0 Details – Trading across Borders in Rwanda – Trade Documents Export Import Packing list Bill of lading Commercial invoice Packing list Page 49   Domestic transport cost (USD) 293 363 Doing Business 2018 Rwanda Details – Trading across Borders in Rwanda – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 50.0 150.0 Export: Clearance and inspections required by agencies other than customs 47.3 33.3 Export: Port or border handling 0.0 0.0 Import: Clearance and inspections required by customs authorities 84.0 282.1 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 4.7 0.0 Details – Trading across Borders in Rwanda – Trade Documents Export Import Packing list Bill of lading Commercial invoice Packing list Export declaration Customs Import Declaration Transit document Transit document Export license Exit note Sanitary certificate by Minister of Agriculture SOLAS certificate Certificate of origin Exit note Bill of lading (in land) Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the (Seller - The dispute concerns a lawful transaction between two businessesPage 50   courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Bill of lading (in land) Doing Business 2018 Rwanda Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value RWF 3,531,554.00 Court name Nyarugenge Commercial Court City Covered Kigali Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Time (days) 230 656.8 577.8 164.00 (Singapore) Cost (% of claim value) 82.7 44.0 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 14.0 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.58: Mauritius (Rank: 27) 58.62: Rwanda (Rank: 85) 48.14: Regional Average (Sub-Saharan Africa) Page 51   of judicial processes Quality Business Doing index (0-18) 2018 Rwanda 14.0 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.58: Mauritius (Rank: 27) 58.62: Rwanda (Rank: 85) 48.14: Regional Average (Sub-Saharan Africa) 45.74: Burundi (Rank: 150) 36.06: Congo, Dem. Rep. (Rank: 172) 27.32: Mozambique (Rank: 184) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Rwanda – Time and Cost Time Cost 1000 950 140 832 119.0 120 Cost (% of claim value) 800 656.8 100 610 577.8 82.7 Time (days) 80.6 600 519 80 400 60 44.0 38.6 230 40 25.0 21.5 200 20 0 0 Burundi Congo, Dem. Rep. Mauritius Mozambique OECD high income Rwanda Sub-Saharan Africa Figure – Enforcing Contracts in Rwanda and comparator economies – Measure of Quality Rwanda 2.5 4.5 4 3 Burundi 1.5 1 0 4.5 Congo, Dem. Rep. 2 0.5 0 4.5 Mauritius 2.5 2 3 5 Mozambique 2.5 2 0 4.5 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 14 Page 52   16 0 0 Burundi Congo, Dem. Rep. Mauritius Mozambique OECD high income Rwanda Sub-Saharan Africa Doing Business 2018 Rwanda Figure – Enforcing Contracts in Rwanda and comparator economies – Measure of Quality Rwanda 2.5 4.5 4 3 Burundi 1.5 1 0 4.5 Congo, Dem. Rep. 2 0.5 0 4.5 Mauritius 2.5 2 3 5 Mozambique 2.5 2 0 4.5 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Rwanda Indicator Time (days) 230 Filing and service 20 Trial and judgment 120 Enforcement of judgment 90 Cost (% of claim value) 82.7 Attorney fees 45.4 Court fees 14 Enforcement fees 23.3 Quality of judicial processes index (0-18) 14.0 Court structure and proceedings (-1-5) 3.0 Case management (0-6) 4.5 Court automation (0-4) 4.0 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Rwanda – Measure of Quality Page 53   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Rwanda Details – Enforcing Contracts in Rwanda – Measure of Quality Answer Score Quality of judicial processes index (0-18) 14.0 Court structure and proceedings (-1-5) 3.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 0.0 2.a. Is there a small claims court or a fast-track procedure for small claims? No 2.b. If yes, is self-representation allowed? n.a. 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 4.5 1. Time standards 1.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? Yes 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.5 2.a. Does the law regulate the maximum number of adjournments that can be Yes granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? Yes 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 4.0 1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the Yes 1.0 competent court? Page 54   1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 Businesscourt? the competent Doing 2018 Rwanda 2. Is it possible to carry out service of process electronically for claims led before the Yes 1.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 1.0 4.a Are judgments rendered in commercial cases at all levels made available to the Yes general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 55   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Rwanda Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Recovery rate (cents on the dollar) 19.1 20.3 71.2 93.1 (Norway) Time (years) 2.5 2.9 1.7 0.4 (Ireland) Page 56   Cost (% of estate) 29.0 22.7 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Rwanda Sub-Saharan OECD high Indicator Rwanda Africa income Overall Best Performer Recovery rate (cents on the dollar) 19.1 20.3 71.2 93.1 (Norway) Time (years) 2.5 2.9 1.7 0.4 (Ireland) Cost (% of estate) 29.0 22.7 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 12.0 6.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Rwanda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.06: Mauritius (Rank: 36) 48.20: Mozambique (Rank: 75) 47.79: Rwanda (Rank: 78) 30.71: Burundi (Rank: 144) 30.28: Regional Average (Sub-Saharan Africa) 0.00: Congo, Dem. Rep. (Rank: 168) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Rwanda – Time and Cost Time Cost 6 35 5.0 30.0 29.0 5 30 22.7 25 Cost (% of estate) Time (years) 4 20.5 2.9 20 3 14.5 2.5 15 2 1.7 1.7 9.1 1.5 10 1 5 0 0 Burundi no practice Mauritius Mozambique OECD high income Rwanda Sub-Saharan Africa Congo, Dem. Rep. Figure – Resolving Insolvency in Rwanda and comparator economies – Measure of Quality Rwanda 6 3 3 0 Page 57   Burundi 4 2.5 1 1 Burundi no practice Mauritius Mozambique OECD high income Rwanda Sub-Saharan Africa Congo, Dem. Rep. Doing Business 2018 Rwanda Figure – Resolving Insolvency in Rwanda and comparator economies – Measure of Quality Rwanda 6 3 3 0 Burundi 4 2.5 1 1 Congo, Dem. Rep. 5.5 2 1 0.5 Mauritius 4 3 3 0.5 Mozambique 4 2.5 2 1.5 OECD high income 5.4 2.8 2.3 1.9 Sub-Saharan Africa 4.1 2.3 1 0.4 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Rwanda and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 70 67.4 60 50 40 31.5 30 19.1 20.3 20 7.7 10 0.0 0 Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Details – Resolving Insolvency in Rwanda Indicator Answer Explanation Proceeding liquidation As the mortgage is registered, the bank will request an authorization to sell the plot within 30 (after an days following the default. However, because the majority shareholder and Mirage’s attempt at management want to continue operations, Mirage will use article 37bis of Law 12/2009 of reorganization) 26/5/2009 on commercial reorganization and resolving insolvency problems as completed by law 35/2013 of 29/5/2013; provision that allows the debtor to suspend individuals actions related to a secured claim through suggesting a reorganization plan. As Mirage will be unable to pay debts as they fall due, it will try to obtain the opening of reorganization proceedings and avoid foreclosure. According to our estimations, if a reorganization plan is not submitted to the court after the commencement of insolvency proceedings, or if the jurisdiction rejects the plan, the procedure will fail and will be converted into liquidation a few months later. Reorganization converted into liquidation is the most likely procedure in Rwanda. Page 58   Rwanda Burundi Congo, Dem. Rep. Mauritius Mozambique Sub-Saharan Africa Doing Business 2018 Rwanda Details – Resolving Insolvency in Rwanda Indicator Answer Explanation Proceeding liquidation As the mortgage is registered, the bank will request an authorization to sell the plot within 30 (after an days following the default. However, because the majority shareholder and Mirage’s attempt at management want to continue operations, Mirage will use article 37bis of Law 12/2009 of reorganization) 26/5/2009 on commercial reorganization and resolving insolvency problems as completed by law 35/2013 of 29/5/2013; provision that allows the debtor to suspend individuals actions related to a secured claim through suggesting a reorganization plan. As Mirage will be unable to pay debts as they fall due, it will try to obtain the opening of reorganization proceedings and avoid foreclosure. According to our estimations, if a reorganization plan is not submitted to the court after the commencement of insolvency proceedings, or if the jurisdiction rejects the plan, the procedure will fail and will be converted into liquidation a few months later. Reorganization converted into liquidation is the most likely procedure in Rwanda. Outcome piecemeal sale According to our estimations, the reorganization attempt will fail and the proceedings will probably be converted to liquidation. The hotel will stop operating and will be dismantled, and the assets of the debtor will be sold separately. Time (in years) 2.5 According to our estimations, the procedure related to a liquidation under law 12/2009 would take 2,5 years approximately. The main cost components are: (i) an attempt to reorganize, (ii) a liquidation, and (iii) the public sale of the assets of the debtor. At the same time, with the reform introduced by law No. 35/2013, there will likely be a suspension of the foreclosure procedure under article 37 bis (if the debtor manifest its intention to present a reorganization plan). The duration of the suspension cannot exceed six (6) months. As a result, the total time needed to complete the procedure will be 2.5 years. Cost (% of 29.0 According to our estimations, a liquidation costs approximately RWF 35,000,000 (29% of the estate) value of the estate). Lawyer fees (15%), fees of the administrator, several service providers (6% of the amount of the sale (art. 2 of decree 10/7/1920 related to the public sale of movable or immovable assets)) and bailiffs and notaries (5%) constitute the main cost components. Recovery rate (cents on the 19.1 dollar) Details – Resolving Insolvency in Rwanda – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 12.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization Page 59   What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 dollar) Doing Business 2018 Rwanda Details – Resolving Insolvency in Rwanda – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 12.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 6.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over 1.0 ordinary unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 0.0 Which creditors vote on the proposed reorganization plan? (c) Other 0.0 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Page 60   plan, does each class vote separately and are creditors in the same class treated equally? Doing Business 2018 Rwanda Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). Page 61   the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Rwanda Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Rwanda Answer Hiring Page 62   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Rwanda Details – Labor Market Regulation in Rwanda Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 0.0 Ratio of minimum wage to value added per worker 0.0 Maximum length of probationary period (months) 6.0 Working hours Standard workday 8.5 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 0.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 18.0 Paid annual leave for a worker with 5 years of tenure (working days) 19.0 Paid annual leave for a worker with 10 years of tenure (working days) 21.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 19.3 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 63   Third-party Doing approval Business 2018 if nine workers are dismissed? Rwanda No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? Yes Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 4.3 Severance pay for redundancy dismissal for a worker with 5 years of tenure 8.7 Severance pay for redundancy dismissal for a worker with 10 years of tenure 13.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 84.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? n.a. Business Reforms in Rwanda In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Rwanda implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Dealing with Construction Permits: Rwanda increased quality control during construction by introducing risk-based inspections. Registering Property: Rwanda made registering property easier by implementing online services to facilitate the registration of property transfers. Protecting Minority Investors: Rwanda strengthened minority investor protections by making it easier to sue directors, clarifying ownership and control structures and requiring greater corporate transparency. Page 64   Paying Taxes: Rwanda made paying taxes easier by establishing an online system for ling and paying taxes. Minimum contribution period for unemployment protection (months)? n.a. Doing Business 2018 Rwanda Business Reforms in Rwanda In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Rwanda implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Dealing with Construction Permits: Rwanda increased quality control during construction by introducing risk-based inspections. Registering Property: Rwanda made registering property easier by implementing online services to facilitate the registration of property transfers. Protecting Minority Investors: Rwanda strengthened minority investor protections by making it easier to sue directors, clarifying ownership and control structures and requiring greater corporate transparency. Paying Taxes: Rwanda made paying taxes easier by establishing an online system for ling and paying taxes. Enforcing Contracts: Rwanda made enforcing contracts easier by making judgements rendered at all levels in commercial cases available to the general public through publication on the judiciary’s website. DB2017 Starting a Business: Rwanda made starting a business easier by improving the online registration one-stop shop and streamlining post-registration procedures. Dealing with Construction Permits: Rwanda made dealing with construction permits more cumbersome and expensive by introducing new requirements to obtain a building permit. It also strengthen the quality control index by implementing the quali cations required for architects and engineers. Registering Property: Rwanda made it easier to register property by introducing e ective time limits and increasing the transparency of the land administration system. Paying Taxes: Rwanda made paying taxes more complicated by introducing a requirement that companies le and pay social security contributions monthly instead of quarterly. Trading across Borders: Rwanda made trading across borders easier by removing the mandatory pre-shipment inspection for imported products. Enforcing Contracts: Rwanda made enforcing contracts easier by introducing an electronic case management system for judges and lawyers. DB2016 Starting a Business: Rwanda made starting a business easier by eliminating the need for new companies to open a bank account in order to register for VAT. Dealing with Construction Permits: Rwanda made dealing with construction permits easier by adopting a new building code and new urban planning regulations. Getting Credit: In Rwanda the credit bureau started to provide credit scores to banks and other nancial institutions while the credit registry expanded borrower coverage, strengthening the credit reporting system. Protecting Minority Investors: Rwanda strengthened minority investor protections by introducing provisions allowing holders of 10% of a company’s shares to call for an extraordinary meeting of shareholders, requiring holders of special classes of shares to vote on decisions a ecting their shares, requiring board members to disclose information about their directorships and primary employment and requiring that audit reports for listed companies be published in a newspaper. Paying Taxes: Rwanda made paying taxes easier for companies by introducing electronic ling and making its use compulsory. Trading across Borders: Rwanda increased the time and cost for documentary and border compliance for importing by making preshipment inspection mandatory for all imported products. Page 65   Resolving Insolvency: Rwanda improved its insolvency system by introducing provisions on voidable transactions and the employment and requiring that audit reports for listed companies be published in a newspaper. Paying Doing 2018 made Taxes: Rwanda Business paying taxes easier for companies by introducing electronic ling and making its use compulsory. Rwanda Trading across Borders: Rwanda increased the time and cost for documentary and border compliance for importing by making preshipment inspection mandatory for all imported products. Resolving Insolvency: Rwanda improved its insolvency system by introducing provisions on voidable transactions and the approval of reorganization plans and by establishing additional safeguards for creditors in reorganization proceedings. DB2015 Starting a Business: Rwanda made starting a business more di cult by requiring companies to buy an electronic billing machine from a certi ed supplier. Dealing with Construction Permits: Rwanda made dealing with construction permits easier by eliminating the fee for obtaining a freehold title and by streamlining the process for obtaining an occupancy permit. Getting Electricity: In Rwanda the electricity company made getting electricity less costly by eliminating several fees. Getting Credit: Rwanda improved access to credit by establishing clear priority rules outside bankruptcy for secured creditors and establishing clear grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures. DB2014 Starting a Business: Rwanda made starting a business easier by reducing the time required to obtain a registration certi cate. Dealing with Construction Permits: Rwanda made dealing with construction permits easier and less costly by reducing the building permit fees, implementing an electronic platform for building permit applications and streamlining procedures. Registering Property: Rwanda made transferring property easier by eliminating the requirement to obtain a tax clearance certi cate and by implementing the web-based Land Administration Information System for processing land transactions. Getting Credit: Rwanda strengthened its secured transactions system by providing more exibility on the types of debts and obligations that can be secured through a collateral agreement. Protecting Minority Investors: Rwanda strengthened investor protections through a new law allowing plainti s to cross- examine defendants and witnesses with prior approval of the questions by the court. Paying Taxes: Rwanda made paying taxes easier and less costly for companies by rolling out its electronic ling system to the majority of businesses and by reducing the property tax rate and business trading license fee. Trading across Borders: Rwanda made trading across borders easier by introducing an electronic single-window system at the border. Resolving Insolvency: Rwanda made resolving insolvency easier through a new law clarifying the standards for beginning insolvency proceedings; preventing the separation of the debtor’s assets during reorganization proceedings; setting clear time limits for the submission of a reorganization plan; and implementing an automatic stay of creditors’ enforcement actions. DB2013 Getting Electricity: Rwanda made getting electricity easier by reducing the cost of obtaining a new connection. Enforcing Contracts: Rwanda made enforcing contracts easier by implementing an electronic ling system for initial complaints. DB2012 Starting a Business: Rwanda made starting a business easier by reducing the business registration fees. Registering Property: Rwanda made transferring property more expensive by enforcing the checking of the capital gains tax. Getting Credit: In Rwanda the private credit bureau started to collect and distribute information from utility companies and also started to distribute more than 2 years of historical information, improving the credit information system. Paying Taxes: Rwanda reduced the frequency of value added tax lings by companies from monthly to quarterly. DB2011 Dealing with Construction Permits: Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits. Getting Credit: Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and Page 66   mandating that loans of all sizes be reported to the central bank’s public credit registry. Dealing with Construction Permits: Rwanda made dealing with construction permits easier by passing new building regulations Doing at Business the end 2018 of April 2010 Rwanda and implementing new time limits for the issuance of various permits. Getting Credit: Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and mandating that loans of all sizes be reported to the central bank’s public credit registry. Trading across Borders: Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment. DB2010 Starting a Business: Rwanda made starting a business easier by eliminating the notarization requirement; introducing standardized memoranda of association; putting publication online; consolidating name-checking, registration fee payment, tax registration and company registration procedures; and reducing the time required to process completed applications. Registering Property: Rwanda reduced the time required to transfer property through ongoing improvements in the property registration process. Getting Credit: Rwanda strengthened its secured transactions system by allowing a wider range of assets to be used as collateral, permitting a general description of debts and obligations in the security agreement, allowing out-of-court enforcement of collateral, granting secured creditors absolute priority within bankruptcy and creating a new collateral registry. Protecting Minority Investors: Rwanda strengthened investor protections through a new company law requiring greater corporate disclosure, increasing director liability and improving shareholders’ access to information. Trading across Borders: Rwanda reduced the time required for trading across borders by introducing administrative changes such as expanded operating hours and enhanced border cooperation and by eliminating some documentation requirements. Resolving Insolvency: Rwanda improved its insolvency process through a new law aimed at streamlining reorganization procedures. Labor Market Regulation: Rwanda increased the maximum duration of xed-term contracts and eliminated the obligation to notify and seek the approval of a third party in cases of redundancy dismissals. DB2009 Dealing with Construction Permits: Rwanda made dealing with construction permits easier by streamlining project clearances for the second year in a row—combining the procedures for obtaining a location clearance and a building permit in a single application form—and by introducing a single application form for water, sewerage and electricity connections. Registering Property: Rwanda reduced the cost and time to register property by replacing the 6% registration fee with a at rate, regardless of the property value, and by creating a centralized service in the tax authority to speed up the issuance of the certi cate of good standing. Trading across Borders: Rwanda reduced the time for exporting and importing by extending the opening hours of customs points, implementing or improving electronic data interchange and risk-based inspection systems and making improvements in the transport sector. Enforcing Contracts: Rwanda made enforcing contracts easier by launching 3 commercial courts—in Kigali, in Northern Province and in Southern Province. DB2008 Dealing with Construction Permits: Rwanda made dealing with construction permits easier by decentralizing the permit system —which reduced the time for getting a building permit and an occupancy permit—and by reducing the time for obtaining an electricity connection. Trading across Borders: Rwanda made trading across borders easier by expediting the acceptance of customs declarations and liberalizing the warehouse services market. Page 67   Trading across Borders: Rwanda made trading across borders easier by expediting the acceptance of customs declarations and liberalizing 2018 services the warehouse Doing Business Rwanda market. Page 68