CDC Group, the UK development finance institution, has signed a partnership agreement with Rwanda for the creation of a new international financial capital for Africa through the Kigali International Financial Centre (KIFC). The financial platform will support foreign direct investment into Africa as well as provide the right financial sector skills to conclude transactions on the African continent for international clients. The KIFC will be supported by the Rwandan government which has an interest in transforming Rwanda into a financial hub and a gateway into Africa and this move add more space to successes, such as in Mauritius, without providing investors a platform to manage their tax challenges.
Rwanda is a land locked country in the East of Africa and is one of the fastest growing economies in Africa with population of 11 million and GDP in the region of US$7-billion. Rwanda’s main areas of trade are commodities which are gold, tungsten, cassiterite and coffee. The economy is also becoming a competing hub for ICT in the region. Rwandan political and economic stability has resulted in an improvement in the country’s GDP growth rate which has been growing ahead of the Sub-Saharan Africa region.