BK Group has become Rwanda’s first local holding company to register with Kigali International Finance Centre. This will see the Group set to unlock opportunities through and benefiting from the incentives under the new investment code. The group which has subsidiaries in banking, investment banking, insurance and tech, officials say is set to make the most of incentives in the new code which encourages investments in financial services. For instance, while its banking operations are still taxed at the current tax rate, the group holding will benefit from incentives that includes a preferential tax rate of 3 per cent. This is expected to ensure the efficiency of capital flow and allow the group to re-invest more in Rwanda, or to expand into new financial activities through KIFC. This could see the group become more attractive for investors looking for higher return in Rwanda as new opportunities emerge.
The group also becomes the first local entity to join the KIFC Club in the Platinum category.
KIFC membership gives exclusive access to a pan-African financial community enabling members to promote their operations and network with national and international business leaders. Members also enjoy business facilitation, special promotion packages, participation in policy dialogues, among other benefits.
Dr. Diane Karusisi, BK Group Plc. The Chief Executive Officer noted that the development is set to facilitate the entity in attracting capital formation and inflows as well as contributing to the positioning of Rwanda as a leading financial center.
“We are proud to be the first local holding company to register with KIFC Club in the Platinum category. We look forward to great opportunities through this membership and benefiting from the incentives under the new investment code. This partnership will facilitate BK Group in attracting capital formation and inflows as well as contributing to the positioning of Rwanda as a leading financial center across the globe” she said.
The new code also allows the group –like other members- to attract the diaspora, talents from outside, and create a platform for knowledge transfer. This is key as the global financial landscape is fast changing with the debut of trends such as financial technology, open banking, digital currency, digital banking which the group is bracing itself for.
The new investment code, further incentivizes BK Group to expand its activities beyond Rwanda generating engagement with clients, investors, and stakeholders across the region.
As a Platinum Member with KIFC the Group will also gain access to a growing regional financial community which will strengthen existing networks and build new ones to be able exploit untapped opportunities.
The group can also expect increased visibility and enjoy business facilitations with local and regional stakeholders as well as benefit from publications and research papers.
Ntoudi Mouyelo the Chief Investment Officer at Rwanda Finance Limited said that onboarding BK Group as the first platinum member is key for KIFC’s efforts around building a community of local and foreign businesses that can benefit.
“When developing KIFC, it is important to demonstrate that we have the framework to build local champions; meaning local companies that can be referenced beyond Rwanda. Onboarding BK Group as our first platinum member is key for KIFC’s efforts around building this community of local and foreign businesses that can benefit from the services of our biggest bank by market shares,” he said.
Kigali International Financial Centre continues to attract a number of investors and members ranging from social impact investors, Angel Investors, investment companies, financial services providers, Corporate Services Providers among others.
It was this year ranked 5th in Africa on the Global Financial Centres Index (GFCI), a renowned ranking on the competitiveness of financial centres across the world and mentioned among the top 15 centres globally likely to become more significant going forward as well as among centres enjoying reputational advantage.
In August 2020 cabinet approved a law relating to investment promotion and facilitation which features incentives for investors joining the Kigali International Finance Centre. Rwanda Finance Limited led in the development of the incentives for the Kigali International Finance Centre.
The adjustment in the investment code which was preceded by two previous ones; 2005 and 2015 is also aimed at adjusting the ecosystem to the latest global trends and aligned with national objectives.