Rwanda, Qatar sign agreement to avoid double taxation

Rwanda and Qatar have taken a significant step towards enhancing their economic ties by signing a double taxation avoidance agreement. This agreement, aimed at halting double taxation of incomes arising from Foreign Direct Investment inflows, among other sources, signifies a substantial milestone in the economic partnership between the two nations. Francois Nkulikiyimfura, Rwanda's Ambassador to Qatar, spoke to CNBC Africa, highlighting the importance of this agreement in bolstering trade and investment flows between Rwanda and Qatar. He emphasized that the DTA agreement would facilitate inbound investments and cooperation in tax matters, ensuring the effective collection of taxes and preventing fiscal evasion by sharing tax information between the tax authorities of both countries. One key point discussed in the interview was Rwanda's strategy to attract investments in various sectors and position itself as a financial hub. Ambassador Nkulikiyimfura highlighted Rwanda's success in implementing a favorable and competitive business environment, as evidenced by its ranking of 38th globally and second in Africa on the World Bank's Doing Business Index. He expressed Rwanda's desire to invite Qatar investors to tap into the country's robust business governance and excellent investment climate. Moreover, the ambassador identified key priority areas for investment in Rwanda, including services, agriculture, hospitality, real estate, construction, infrastructure, energy, and mining. These sectors were identified during the New RDP (Recon Plan de Development) presented by the government and present lucrative opportunities for Qatar investors looking to capitalize on Rwanda's economic potential. Regarding Rwanda's relationships in the Middle East, the ambassador confirmed that Rwanda has already signed DTA agreements with more than 12 countries and is in the final negotiation phases with five others, with 26 countries in the pipeline. While Rwanda aims to establish similar agreements with various countries, the focus on Qatar stems from the country's track record of signing DTA agreements with 80 nations, emphasizing the incentive for investments and the need to boost economic cooperation. In response to questions regarding the implementation of previous agreements, such as the MOU with Qatar and the development of the Bugesera International Airport, Ambassador Nkulikiyimfura clarified that there are no roadblocks in the process. Despite delays caused by the COVID-19 pandemic and travel restrictions, negotiations are ongoing, and he expressed optimism that these agreements would be finalized soon. In conclusion, the signing of the double taxation avoidance agreement between Rwanda and Qatar signifies a strong commitment to advancing economic cooperation and facilitating investments between the two countries. With Rwanda's thriving business environment and strategic focus on key sectors, the agreement sets the stage for mutual growth and prosperity, fostering a favorable climate for Qatar investors to explore Rwanda's promising market.