Sub-Plan for….

Developing and Facilitating the Private Sector

Relevant Vision for Rwanda (VfR) Mission Strategies

Relevant Government Policy Commitments

The GOR recognizes the critical role that the private sector can play as a key partner in the process of moving Rwanda into an information and knowledge economy. The government is therefore committed to promoting and facilitating the role of the private sector in the development and participation in the Rwandan information society and economy.

Key Players

Government and the Private Sector as the lead Players with the Participation of the Civil Society

Programme

PSR-1: Programme to facilitate a stable policy implementation environment and to provide incentive packages to support the rapid deployment, and exploitation of ICTs in key sectors of the economy

Relevant SUNRISE Component

Type and Scope of Programme

Implementation Details Requirements

Programme Ownership

• To facilitate the development of the service sector into the ‘business service hub’ of the region through the deployment and exploitation of ICTs
  
• To promote and facilitate the role of the private sector in the development and participation in the Rwandan information society and economy.
  
• To promote and encourage the rapid deployment and utilization of ICTs within the Private Sector

Programme-Specific Goals

• To provide and ensure a reasonably stable policy and regulatory environment to facilitate the development of the ICT service sector and industry
  
• To implement special tax instruments and budgetary provisions to provide targeted incentives to the private sector to speed up the process of the deployment and exploitation of ICTs
  
• To develop and implement policy instruments to facilitate the importation of computers, computer components and other ICT equipment at special low import duty rates targeted at the private sector
  
• To implement special service sector development incentive programmes and packages

Plan-Specific Actions

Plan-Action Prerequisites and Linkages

Time-Bound Measurable Targets

Plan-Action Implementation Agency

P1.1

The Government to ensure a stable ICT-related regulatory regime and policy making and implementation environment to facilitate the activities of private sector within the ICT service sector and industry

Non

Government to within the time frame of NICI-2005 ensure a stable policy and regulatory regime within the ICT service sector and industry

The GOR through the relevant Ministries and Agencies

P1.2

Design and implement special tax instruments and incentive packages in the Year 2000/2001 Budget specifically targeted at kick-starting the development of the ICT production sector in the areas of hardware, software and system development

Non

Implement special tax instruments and incentive packages in the 2000/2001 Budget to kick-start the ICT production sector

Ministry of Finance and Economic Planning

P1.3

Design and implement special incentive packages in the Year 2000/2001 Budget specifically targeted at aiding the growth of the ICT-related service sector.

Non

Implement special tax instruments and incentive packages in the 2000/2001 Budget to aid the growth of the ICT service sector

Ministry of Finance and Economic Planning

Design and implement follow-up tax instruments and incentive packages in subsequent Budgets (2002/2003, 2003/2004, 20004/2005, 2005/2006) aimed at broadening the base of the ICT industry and increasing its product range

Non

Implement special tax instruments and incentive packages in the 2002/2003, 2003/2004, 2004/2005, 2005/2006 Budgets to the broaden ICT industry base and increase its product range

Ministry of Finance and Economic Planning

Design and implement special incentive packages in subsequent Budgets (2002/2003, 2003/2004, 20004/2005, 2005/2006) aimed at speeding up the growth of the ICT-related service sector and increasing its export capability within the region.

Non

Implement special tax instruments and incentive packages in the 2002/2003, 2003/2004, 2004/2005, 2005/2006 Budgets to speed up the growth of the ICT-related service sector and increase its export capability

Ministry of Finance and Economic Planning

Programme

PSR-2: Programmes to promote the development and expansion of a local industry for assembling, repair, and maintenance of computers and peripheral equipment and computer systems

Relevant SUNRISE Component

Type and Scope of Programme

Implementation Details Requirements

Programme Ownership

Policy-Relevant Strategic Goals

• To support the development and the growth of the ICT industry of the economy to facilitate the production, distribution and provision of ICT products, goods and services
  
• To promote the development and expansion of the service sector into a highly competitive value-added sector with the potential develop into a business-service hub of the region.
  
• To promote and facilitate the role of the private sector in the development and participation in the ICT industry and service sector.

Programme-Specific Goals

• To promote and facilitate the local assembly of computers, network equipment and other peripheral and electronic devices for the domestic market and for export into the sub-region and beyond
  
• To promote the development of a cottage industry for the repair, servicing and maintenance of computer and network equipment

Plan-Specific Actions

Plan-Action Prerequisites and Linkages

Time-Bound Measurable Targets

Plan-Action Implementation Agency

P2.1

Implement special tax policy instruments and budgetary provisions targeted at making the importation of computer equipment in component form cheaper than the importation of assembled computers and related equipment.

Non

Implement in the 2001/2002 Budget and other subsequent Budgets (within NICI-2005 time-frame) special tax provisions to facilitate the importation of computer components for local assembly

Ministry of Finance and Economic Planning

P2.2

Implement a special tax instrument to reduce or totally eliminate taxes on locally assembled computers to encourage the purchase of these computers to boast the local computer assembly industry

Non

Implement in the 2001/2002 Budget and other subsequent Budgets (within NICI-2005 time-frame) special tax instruments to reduce or totally eliminate taxes on locally assembled computers and related equipment.

Ministry of Finance and Economic Planning

Put in place a government policy directive to encourage educational institutions, the civil and public services to purchase locally assembled computers and other peripheral equipment and devices to promote the development of the local computer industry

Non

Develop and implement by 2002 a Government Policy directive to encourage educational institutions, the civil and public service organizations to purchase locally assembled computers and peripheral equipment and devices

Ministry of Finance and Economic Planning

Put in place a government policy directive to encourage the educational institutions, the civil and public services to contract reputable local companies (especially SMEs in the cottage industry) to carry out the repair, servicing and maintenance of their computer equipment and other peripheral devices

Non

Develop and implement by 2002 Government Policy directive to encourage educational institutions, the civil and public services to contract local computer system repair, servicing and maintenance companies

Ministry of Finance and Economic Planning

Develop and implement a project to establish a National Computer Hardware Assembly Facility with private sector involvement

Non

Establish a National Computer Hardware Assembly Facility by 2002

The Private Sector

P2.6

Note: The proposed National Vocational Training Commission (NVTC) will play a key role in this initiative. Some of the NVTC Training Centers will be targeted to provide this Certificate Programme in collaboration with other Institutions like the NUR and KIST.

H11.3

The NVTC Training Centers, NUR, KIST and other interested private and public ICT training institutions and establishments to develop and run and a 6-month Certificate Vocational course in computer hardware repair and servicing in collaboration with public and private technical vocational institutions by 2002

Kigali Institute of Science, Technology and Management (KIST)

Programme

PSR-3: Programme to promote the development of Software Technology Parks (STPs)

Relevant SUNRISE Component

Type and Scope of Programme

Implementation Details Requirements

Programme Ownership

• To support the development and the growth of the ICT industry of the economy to facilitate the production, distribution and provision of ICT products, goods and services
  
• To promote and facilitate the role of the private sector in the development of the ICT industry and service sector.

Programme-Specific Goals

• To promote the development of a competitive software development export sector with the active participation of local software houses and developers.
  
• To tap into the world-wide multi-million dollar off-shore software development industry
  
• To develop a competitive ISO standard local software development industry
  
• To encourage the creation of quality software development jobs
  
• To promote, encourage and facilitate the active participation of foreign investors in the local software development industry
  
• To promote joint ventures between local and foreign software houses to facilitate the rapid growth in the software industry and knowledge transfer.

Plan-Specific Actions

Plan-Action Prerequisites and Linkages

Time-Bound Measurable Targets

Plan-Action Implementation Agency

P3.1

Develop and implement a Comprehensive Government policy guidelines and provisions to guide and facilitate the setting up of private STPs and public (government-sponsored) STPs in the country.

Non

Establishment of private and public STPs to start by 2003

Private sector and public institutions interested in setting up STPs

Develop and implement specific incentive programmes and packages (tax holidays, investment incentives, grants, loans etc) targeted at encouraging and facilitating local companies to set up of STPs within or outside the Export Processing and Free Zones (EPfZs)

F2.1

Implement in the 2002/2003 Budget and other subsequent Budgets (within NICI-2005 time-frame) special tax instrument to facilitate the setting up STPs within or outside the EPfZs.

Ministry of Finance and Economic Planning

Implement a National Project to set-up pilot public STPs in public institutions like NUR, KIST and in specially established Technology, Research and Development Parks

F4.1

Set up a pilot public STPs at NUR, KIST and in specially established Technology, Research and Development Parks by 2002

NUR, KIST

Develop and implement specific incentive programmes (tax holidays, investment incentives, grants, loans etc) to attract World-class Software Houses to set-up private STPs either as sole ventures or as joint ventures with local software development companies

Non

Implement within the 2001/2002 Budget and other subsequent Budgets (within NICI-2005 time-frame) special tax and incentive packages to attract World-class Software Houses to set-up STPs within or outside the Export Processing and Free Zones (EPfZs)

Ministry of Finance and Economic Planning

P3.5

Develop and implement initiatives to adopt and enforce ISO standards and quality levels in the Software Development Industry.

Non

Develop and enforce ISO standards and quality levels in the Software Development Industry by 2002

RITA

Programme

PSR-4: Programme to develop and implement guidelines and internationally-accepted standards for the provision of ICT services by the private sector

Relevant SUNRISE Component

Type and Scope of Programme

Implementation Details Requirements

Programme Ownership

• To promote and facilitate the role of the private sector in the development and participation in the Rwandan information society and economy.

Programme-Specific Goals

• To promote the development of a competitive value-added ICT service sector
  
• To promote, encourage and facilitate the provision of ISO standard ICT services by Rwanda Companies
  
• To promote the development of locally-based World-Class ICT Service Providers

Plan-Specific Actions

Plan-Action Prerequisites and Linkages

Time-Bound Measurable Targets

Plan-Action Implementation Agency

P4.1

Set-up an NITC Working Group (WG) with Private Sector involvement on: Developing a World-Class ICT Service Sector in Rwanda

Non

Set-up the NITC Working Group on Developing a World-Class ICT Service Sector in Rwanda by 2001

NITC

P4.2

The NITC-WG on ’Developing a World-Class ICT Service Sector in Rwanda’ in collaboration with the National Standards Organization to formulate guidelines and standards for the provision of quality ICT services by the private sector.

Non

Formulate guidelines and standards for the provision of quality ICT services by the private sector by 2002

The National Standards Organization

Put in place mechanisms and procedures for implementing the guidelines and standards for the provision of quality ICT services by the private sector.

Non

Begin the implementation of guidelines and standards for the provision of quality ICT services by the private sector by 2002

The National Standards Organization

Programme

PSR-5: Electronic Commerce (e-commerce) and Electronic Trade (e-trade) Initiative

Relevant SUNRISE Component

Type and Scope of Programme

Implementation Details Requirements

Programme Ownership

• To facilitate the development of the service sector into the ‘business service hub’ of the region through the deployment and exploitation of ICTs
  
• To support the development and growth of the ICT industry to facilitate the production, distribution and provision of ICT products, goods and services
  
• To promote and facilitate the role of the private sector in the development and participation in the Rwandan information society and economy
  .
• To promote the rapid development of business-to-consumer (B2C), business-to-business (B2B) and business-to-government (B2G) electronic commerce and electronic trade in Rwanda

Programme-Specific Goals

• To kick-start e-commerce and electronic trade in Rwanda
  
• To facilitate the rapid development and the spread of e-commerce services in the private sector
  
• To facilitate the involvement of SMEs in domestic, regional and global e-commerce and e-trade.
  
• To promote the development of business-to-consumer (B2C); business-to-business (B2B); and business-to-government (B2G) e-commerce in Rwanda

Plan-Specific Actions

Plan-Action Prerequisites and Linkages

Time-Bound Measurable Targets

Plan-Action Implementation Agency

P5.1

Non

Commission and complete the Electronic Commerce and Trade Report by 2001

Ministry of Commerce, Industry and Tourism

P5.2

Implement a Pilot Business-to-Government (B2G) e-commerce in the area of procurement of goods and services to involve a number of Government Ministries, PSOs and selected Suppliers and Service Providers

G8.2

Ministry of Commerce, Industry and Tourism to facilitate the implementation of a Pilot B2G e-commerce system by 2002

Participating Relevant Government Ministries, PSOs and Private Sector Organizations

P5.3

Set-up E-commerce Resource Service Centers (ERSCs) and Electronic-Trade Point Centers (ETPCs) in a number of key Prefectures

Non

Set-up ERSCs and ETPCs in all Prefectures by 2005

Ministry of Commerce, Industry and Tourism

Programme to enact relevant cyberlaws and other legal and legislative provisions to support the development of e-commerce and e-trade in Rwanda

Non

Enact relevant cyberlaws and necessary e-commerce and e-trade legal and legislative provisions by 2003

Ministry of Commerce, Industry and Tourism

Programme

PRS-6: The Electronic Banking Initiative

Relevant SUNRISE Component

Type and Scope of Programme

Implementation Details Requirements

Programme Ownership

• To promote the development and expansion of the service sector into a highly competitive value-added sector with the potential develop into a business-service hub of the region.
  
• To promote and facilitate the role of the private sector in the development and participation in the ICT industry and service sector.

Programme-Specific Goals

• To put in place the necessary regulations to support online and Internet Banking
  
• To facilitate the development and provision of online financial services
  
• To promote the development of Rwanda as a regional hub for online financial and banking services
  
• To promote the development of online inter-banking services within the Banking System of Rwanda

Plan-Specific Actions

Plan-Action Prerequisites and Linkages

Time-Bound Measurable Targets

Plan-Action Implementation Agency

Implement a Programme to put in place the necessary banking and financial regulations and procedures to facilitate online banking and financial service provision in Rwanda and the Sub-region

Non

Put in place relevant Banking and Financial Regulations and Procedures to facilitate online banking and financial service provision by 2002

Ministry of Commerce, Industry and Tourism

P6.2

Note: This Initiative is to speed-up the process of introducing online banking and Internet Banking into Rwanda. Banks and other Financial Institutions will by this Initiative be required to provide at least some of their services to the public online using either their propriety online system or the Internet or both

Non

Put in place and implement an initiative aimed at encouraging the provision of online services by the Banks and other Financial Institutions by 2002

The Commercial Banks and Financial Institutions

Implement a Programme aimed at facilitating and promoting Rwanda as the regional hub for online and Internet banking services as well as for the provision of online financial services

Non

Put in place and implement an initiative aimed at facilitating and promoting Rwanda the regional hub for online banking and financial services 2003

Ministry of Commerce, Industry and Tourism

Implement a Programme to facilitate electronic (online) inter-bank transaction within the Commercial Banking System and between the Central Bank of Rwanda and the Commercial Banks

The setting-up of an inter-bank computer network linking the computer systems of the Commercial Banks and that of the Central Bank of Rwanda

Facilitate the implementation of inter-bank transactions online by 2002

The Commercial Banks and Financial Institutions

Programme

PRS-7: Special Initiatives to facilitate the rapid development of an Export-Oriented Software Services and Product Development Industry

Relevant SUNRISE Component

Type and Scope of Programme

Implementation Details Requirements

Programme Ownership

Policy-Relevant Strategic Goals

• To promote the development and expansion of the service sector into a highly competitive value-added sector with the potential develop into a business-service hub of the region.
  
• To promote and facilitate the role of the private sector in the development of the ICT industry and service sector.

Programme-Specific Goals

• To promote the development of the Rwanda Software Products and Services industry
  
• To facilitate the development of a competitive export-driven software industry
  
• To tap into the world wide multi-million dollar off-shore software development industry
  
• To develop a competitive ISO standard local software development industry
  
• To facilitate an investor-friendly enabling environment to attract quality investments into the local Software Industry

Plan-Specific Actions

Plan-Action Prerequisites and Linkages

Time-Bound Measurable Targets

Plan-Action Implementation Agency

The Federation of Rwandan Private Sector is to be a key stakeholder in the setting-up and of this Agency.

Non

Initiate a process for developing and popularizing on the international market a Rwandan Brand for Quality Software Products and Services by 2005

The Private Sector Federation

Note: Universities and Colleges under this initiative will have the option to either set up a Special Department to offer these courses or use relevant existing Department to develop and offer these programmes. Graduates of these programmes will be expected to have those relevant mathematical and logical skills specifically required for software development. These types of Graduates will in addition to Computer Science graduates are essential for supporting the development of the Rwandan Software Industry.

Non

Initiative to train Software Development oriented Applied Mathematics Graduates at the country’s Universities and Colleges to begin by 2003

Universities and Colleges

Implement a Programme to enact enforceable copyright and Intellectual Property Rights laws directed at encouraging the inflow of Software Development related foreign direct investments (FDIs) by International Software Houses and Computer Companies into Rwanda.

L2.3

Enact enforceable copyright and Intellectual Property Rights laws to attract Software Development related foreign direct investments (FDIs) by 2003

The National Transitional Assembly

Implement an Initiative aim at attracting at least 5 Fortune 500 companies to out-source computer services and software development in Rwanda by 2005

Non

RIPA to put in place and implement an initiative to attract at least 5 Fortune 500 companies to out-source computer services and software development in Rwanda by 2005

RIPA

Note: This initiative will focus on new start-up computer companies, especially those set-up by up and coming young entrepreneurs and newcomers into the industry. Apart from emphasis on software development, some of the computer service provision companies that can be supported under the scheme include: computer networking and cable installation companies, Web-based System Development companies, ISPs, companies and private institutions involve in ICT human resource development especially in the area of software development, computer repair and maintenance service provision companies, etc.

Non

The Commercial Banks to set-up a Special Business Loan Schemes targeted at Software Development companies, STPs and other top-end computer service providers by 2001

The Commercial Banks Operating in Rwanda

Another key component of the YITE Business Support Scheme is a Management and Business Training Programme targeted at potential Young Entrepreneurs. Completion of this Training Programme will be a pre-requisite for qualifying for the YITE soft-business start-up loan. It is possible that the YITE Business Training Programme will be offered at the NVTC Training Centers

P7.5, P8.1, H11.2

Note: The YITE Scheme is to be set-up by the Ministry of Commerce, Industry and Tourism with the involvement of the local Commercial Banks and Micro-Finance Agencies

Micro-Finance Agencies

Note: The Ministry of Finance and Economic Planning to facilitate this Initiative by introducing an incentive package within which expenditure on training and software productivity and quality tools by qualified Software Companies and STPs are tax deductible.

Non

Ministry of Finance and Economic Planning to implement special tax instruments and incentive packages in the 2002/2003, Budget (and subsequent Budgets within the time frame of NICI-2005) to make expenditure on training and software productivity and quality tools by qualified Software Companies tax deductible.

Ministry of Finance and Economic Planning

Note: The Ministry of Finance and Economic Planning to facilitate this Programme by introducing an incentive package within which export earnings use for re-investment by STPs and other Software Companies are tax deductible.

Non

Ministry of Finance and Economic Planning to implement special tax instruments and incentive packages in the 2002/2003, Budget (and subsequent Budgets within the time frame of NICI-2005) to make export earnings use for re-investment by STPs and other Software Companies tax deductible.

Ministry of Finance and Economic Planning

Programme

PRS-8: Business and Career Development Support Services Initiative

Relevant SUNRISE Component

Type and Scope of Programme

Implementation Details Requirements

Programme Ownership

• To promote the development and expansion of the service sector into a highly competitive value-added sector with the potential develop into a business-service hub of the region.
  
• To promote and facilitate the role of the private sector in the development of the ICT industry and service sector

Programme-Specific Goals

• To promote the development of Business Support Services targeted at SMEs
  
• To support business career development among the youth and the ‘out-of-work’

Plan-Specific Actions

Plan-Action Prerequisites and Linkages

Time-Bound Measurable Targets

Plan-Action Implementation Agency

These Centers will also serve as a Citizen’s Advisory Bureaus to provide services on Career Development to the Youth and the Out-of-Work.

P7.6

Set-up pilot CABDACs in selected Prefectures by 2003

Ministry of Commerce, Industry and Tourism in Collaboration with the Private Sector

This Initiative to develop an in-house ICT Policy Team within the Private Sector Federation is aimed at providing the Federation the necessary capacity to facilitate the role of the private sector in the development and participation in the Rwandan information society

Non

The Private Sector Federation to implement an Initiative to put in place an ICT Policy Advisory and Facilitation Team within the Federation by 2001

The Private Sector Federation

The Private Sector Federation to Organize regular ICT Briefing Sessions and Meetings for its members on developments within the local ICT industry, and the possible impact of policies and plans within the sector

Non

The Private Sector Federation to organize regular ICT-Industry Briefings and Meetings for its members during the time frame of NICI-2005

The Private Sector Federation

Programme

PSR-9: Programme to facilitate the involvement of the Military in Commerce

Relevant SUNRISE Component

Type and Scope of Programme

Implementation Details Requirements

Programme Ownership

• To facilitate the development of the service sector into the business service hub of the region through the deployment and exploitation of ICTs
  
• To support the development and the growth of the ICT industry of the economy to facilitate the production, distribution and provision of ICT products, goods and services

Programme-Specific Goals

• To put in place relevant structures and mechanisms to facilitate the involvement of the Military in ICT-related commercial ventures.
  
• To raise the necessary funding to support projects and initiatives targeted at facilitating the involvement of the Military in commercial ventures

Plan-Specific Actions

Plan-Action Prerequisites and Linkages

Time-Bound Measurable Targets

Plan-Action Implementation Agency

Commission a Report on the establishment of a Foundation for Military Engagement in Commerce (FMEC) to serve as a National Agency for promoting and facilitating the involvement of serving, retired and demobilize military personnel as well as military establishments, organizations and associations in commercial ventures

Non

Set-up FMEC by 2002

Ministry of Defense and National Security

Membership of the ABCs and ABEs will be made up of serving, retire and demobilized military personnel of all ranks. The ABCs will operate more like NGOs involve in commercial ventures while the ABEs will operate as fully fledged registered companies with the membership being the share holders of the company. The formation of an ABC or ABE to engage in any business venture can be undertaken by any group of military personnel who voluntary come together for this purpose provided the guidelines set-up by FMEC are followed. It is also possible for a given Military establishment to set up its own ABCs or ABEs.

Non

Begin setting up ABCs and ABEs by 2003

Interested Military Personnel with assistance from FMEC

Set-up a ‘Military Fund for Entrepreneurship’ (MFE) under the auspices of FMEC to serve as a Special Fund to provide seed money, grants, start-up capital, and loans to ABC, ABEs and other qualified military personnel and organizations to facilitate their involvement in commercial ventures

Non

The initial capital endowment of MFE should be increased by 50% by 2005

FMEC

Note: Candidate areas to begin with include: operating local commercial radio stations, assembling of computers and other ICT equipment and devices for the local and regional market; provision of ranges of ICT services targeted at the service sector and the cottage industry; providing human resource development and training services in ICT, management and other related areas etc

Non

FMEC

Possible Contributions to the Realization of the GOR’s Multi-Sectoral Economic Development Policy

On the whole, since the programmes and initiatives of the Sub-Plan are aimed at the entire private sector which encompasses the agricultural sector, the service sector and the industrial sector the potential for contributing to the realization of the GOR’s multi-sectoral economic development policy is great.

Areas of Emphasis as per the ICT-2020 Policy

On the whole, the programmes and initiatives of this Sub-Plan will contribute to the realization of the GOR’s policy goal aimed at simultaneously pursuing both ICT exploitation and production involving: the utilization and exploitation of ICTs to support the delivery of government services and the activities of various sectors of the economy as well as the production, development and delivery of ICT products and services ---- i.e. towards the development and promotion of an ICT industry and service sector.

The Risk Factors

It is also anticipated that apart from boasting the economy, facilitating the development of the private sector will also generate additional demand for quality manpower in the medium and long term. This additional manpower requirement of a fast growing private sector is expected to be met by the implementation of the Human Resource Development Sub-Plan. There is therefore that risk element, (measured in terms of the resources devoted to human resource development) in the event that the private sector failed to generate enough economic activity and by so doing failed to create quality jobs.