CDC Group signs partnership memorandum with Rwanda Finance
CDC Group, the UK’s development finance institution and impact investor, has signed a partnership agreement with Rwanda Finance to support the development of a new international financial capital for Africa.
The Kigali International Financial Center (KIFC) is intended to be a world-class financial hub, designed to promote inward investment and the creation of thousands of highly skilled financial sector jobs for the benefit of Rwanda and the African continent.
This partnership will see CDC provide expertise that will help shape a strong legal and regulatory framework which is designed to attract institutional investors seeking to finance African businesses through a world class financial center.
“This partnership is a major milestone for our nascent international financial center. It will ensure that we have an optimal legal, regulatory and institutional framework that is in line with international norms and standards,” said Rwanda Finance CEO, Nick Barigye during the virtual signing of the partnership.
He added that Rwanda already has a strict compliance framework which makes the country an ideal conduit for multinational investment deals.
Nick O’Donohoe, chief executive of CDC Group said, “The African continent needs a vibrant and stable financial services industry to foster inward investment and nurture a professional and technical skills base to support wider economic development.
“It is still very early days in Kigali’s development as a financial hub, but we are confident it will deliver on its early potential. And if it does, then I see no reason why we wouldn’t look to use it ourselves.”
The KIFC will only support transactions that have a substantial business and economic purpose, rather than those that are designed for managing tax liabilities.
Rwanda Finance is mandated by the Government of Rwanda to develop effective frameworks for regulations, tax and capacity-building in the country and to promote the KIFC as a jurisdiction which provides a range of professional, business and financial services to international clients. The KIFC is modelled on Luxembourg and Singapore in the way it will provide a wide range of services for both regional and international clients.
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