Why Invest in Rwanda-Mining Sector?
- Sustained Economic Growth
- Robust Governance
- Investor Friendly Climate
- Access to markets
- Excellent Labor Market
- Untapped investment opportunities
Mining is the second largest export sector in the Rwandan economy after Tourism. The Mining sector in Rwanda has untapped potential that presents lucrative investment opportunities in the entire value chain from exploration to value addition.
Mineral Export Revenues from 2010-2020 in USD Millions
Period 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Value in USD 71.25 158.8 136.3 226.1 210.6 149 166.5 373 346.6 412.6 733
Rwanda Export target in NST1
Rwanda recently set an ambitious target of generating USD 1.5B in export revenues by 2024
- Contribution to GDP is to increase from 2% to 8.5 % by 2024.
- The number of working people (16 years and above) with main job in the mining sub-sector will increase from 47,000 in 2017 to 62,000 by 2023.
- Export earnings will increase from USD 158 million in 2011 to USD 1.5 billion by 2024
Mining Investment Opportunities
The Government of Rwanda has invested in exploration works in Prospective Target Areas to generate good primary geology data to be used by mineral exploration companies. Intensive, up to date and detailed mineral exploration can be carried out in the recently identified Prospective Target Areas (PTAs) to delineate and quantify their mineral resources.
The mining law grants the right to exploit three categories of mines: small scale, medium scale and large scale mines to any person or company with proven technical expertise and financial capacity to develop and run a mining project.
Some of the Rwanda’s mineral ores produced in the country are exported as 100% raw mineral concentrates, not as metals. The establishment of processing plants to smelt cassiterite into tin, refining wolframite into tungsten, tantalite into tantalum, gemstones cutting and polishing.
Currently, Rwanda’s mining sector is mostly traditional; Modern technology is needed to upgrade the sector to a semi- mechanized and later at industrial level to increase production, which is low compared to the proven potential Mining equipment including drillers, bulldozers, gravity table shakers are needed to upgrade the sector
The exploration and exploitation of gemstones is still at a low level in Rwanda. The country possesses a variety of gemstones including: beryl (Aquamarine), Amblygonite, Corundum (Ruby and sapphire), Tourmalines and different types of Quartz. There are opportunities to set up businesses cutting and polishing gemstones.
Rwanda possesses a variety of minerals such as good quality silica sands, kaolin, granite, vermiculite, diatomite, clays, limestone, talcum, gypsum and pozzolana. However, exploitation and processing of industrial minerals to meet the demand for construction materials is still low especially production of tiles, slabs sculptures, paints, bricks and concrete aggregates.
PROVISION OF MINING EQUIPMENTS:
Mining equipment and services are required both in the country and the region. There is a gap in companies trading in or offering mining related services.
TRADE IN MINERAL SUBSTANCES:
Trade in mineral substances is carried out by holders of mining and mineral trading licenses and owners of smelting companies. Trading in minerals, including cassiterite, wolframite and niobium – tantalite, must contain at least 30% value added.
Regulatory frame work
- Rwanda Development Board: Investment process, guidance, facilitation, leading negotiations for strategic projects, issuing EIA, and providing incentives
- Rwanda Mines Board: Designing Policy and strategies, Issuing of Mining and Quarry licenses, laws and regulations elaboration and supervision and Promotion of mining sector at national and international levels, enhance geological and mining knowledge of the country, improve exploitation and investment conditions, monitoring mining activities to comply with the law and increase value addition to Rwanda’s mines and quarries.
- Rwanda environment management authority: Setting environment standards, environment inspection of mining projects and rehabilitation of exhausted mines and quarries
- Local Authorities (District and Sector): Issuing of noncommercial quarry license and Commercial small scale quarry license.
Rwanda Mines Board Licensing Regime
The new mining code offers a variety of licenses as shown below;
Exploitation License Category
Small Scale License
100% Local shareholding
Medium Scale License
Large Scale License
Quarry License Category
Non-Commercial Quarry License:
Commercial Small Scale Quarry license
(Owned by Rdese)
An industrial Quarry License
Besides the above, there are other types of licenses like;
Mineral Trading License
Mineral Processing License
Below are the fees applicable for the Mineral trading and Mineral Processing Licenses
Type of License
Below are fees applicable for Mineral Exploration, Exploitation and Quarry Licenses
Type of License
Transfer of License
· 3rd Yr=2.7M
· 4th Yr=3.6M
· 5th to 8th Yr.
Commercial Small Scale
Non Commercial Quarry License
Rwanda’s mining Sector focuses on the optimization of financial benefits through payment of taxes, royalties and other payments that reflect the value of mineral resources to society.
Below are some of the taxes paid in Rwanda;
Type of Tax
Corporate Income Tax
Royalty Tax on Base Metals(3TS)
Royalty Tax on Precious Metals and
Mineral transparency initiatives in Rwanda
- Rwanda started following the enactment of the Dodd-Frank “conflict-minerals” Act
- Mineral traceability in Rwanda use two mineral traceability schemes: International Association (ITA) since 2010 and RCS Global since 2016
- Since April 2011, 100% of Rwandan minerals are traceable from their mine sites up to their export point
- Since 2012, Rwanda has integrated the Regional Certification Mechanism (RCM) in its mining regulations
- The RCM forms part of the ICGLR Regional Initiative on Natural Resources, adopted by heads of state in December 2010
Non Fiscal Incentives
A registered investor who invests USD 250,000may recruit 3 foreign employees without necessarily demonstrating that their skills are lacking or insufficient on the labor market in Rwanda
Registered investors holding a valid exploration license are entitled to carry forward losses for a period of ten (10) years from the first year of making the loss, by deducting losses in the order in which they incurred
Facilitate quick investment registration
15% Preferential Corporate Income tax for projects exporting processed minerals up to 50% of turnover of minerals produced in Rwanda
Facilitation with tax related services and exemptions
Accelerated depreciation of assets at 50%
Provision of EIA Certificates
Import free on Heavy Machinary used in Mining
Facilitation with obtaining visas and work permits
Vat exemption on Mining equipments
Notary services provided by our One Stop Center
Value added tax refund
Assigning Key Account Manager to projects registered within the One Stop Center
Capital Gains tax exemption and 0% Corporate Income Tax for companies planning to relocate H/Q’s to Rwanda
For any further details/information you may require, please contact:
Mr. Chris Picton Shyaka
Sector Marketing Analyst
Rwanda Development Board