FOREIGN PRIVATE CAPITAL IN RWANDA YEAR 2019 37 Before fieldwork, a one-week preparatory workshop was organized, during which the technical team were trained with an emphasis on investment components of the Balance of Payments (BOP) and International Investment Position (IIP). The training also included; understanding the survey questionnaire, familiarization with investor perception questions, and other technical aspects like how to extract information from a company’s financial statements, data consistency checking, and discuss census logistics. Therefore, to have accurate statistics, the technical team assisted most of the companies to fill the questionnaire. The technical staff discussed with each respondent to clarify any issue that was not clear to the respondents and thereafter, collect the completed form and the financial statements. The fieldwork was done in two phases. The first phase involved distribution and collection of questionnaires in Kigali city within an interval of three weeks, and the second phase covered the distribution and collection of questionnaires in out of Kigali. • Data Processing Data entry and processing was done using the Private Capital Monitoring System developed by the Macroeconomic and Financial Management Institute for foreign assets and liabilities questions and the Census and Survey Processing software for trade in goods and service and perception. To ensure data quality, the technical team reviewed and corrected the completed questionnaires to ensure data completeness, consistency, and reliability. Also, the collected data were compared to the information provided in the previous censuses for each enterprise, for consistency check.
• Return on Equity (ROE) The ROE is the amount of net income returned as a percentage of shareholder’s equity. It is calculated as follow: ROE = (Net Profit)/(Average FDI Equity Stock) X 100 The net profit is the net income of the year before dividend s are paid to common stakeholders, while the FDI stocks include accumulated equity capital and accumulated retained earnings as presented in table 3.12. • Investor Perception Themes Governance Figure 8: Governance Indicators 100 90 80 70 60 50 40 30 20 10 0 Political stability Reliability of Governement to deliver Corruption at the central level Corruption at the local level Corruption in Judiciary Very poor Good Very good Index GOVERNANCE INDICATORS: % OF RESPONDENTS Source: FPC 2019 Census 94.3 87.6 75.5 70.0 75.0
FOREIGN PRIVATE CAPITAL IN RWANDA YEAR 2019 38 Legal Framework Figure 9: Legal Framework Indicators Support Services Figure 10: Support Services Indicators T rading Across Borders Figure 11: T rading Across Borders Indicators 100 90 80 70 60 50 40 30 20 10 0 LEGAL FRAMEWORKINDICATORS: % OF RESPONDENTS 78.2 75.7 7 7.6 78.5 78.5 88.6 Ability of legal institutions to enforce existing law Ability of legal institutions to stop anti-competitive action Legal frame work for accounting and auditing Ease of purchasing| registering land Ease of purchasing| registering property Political stability Very poor Good Very good Index Source: FPC 2019 Census 100 90 80 70 60 50 40 30 20 10 0 SUPPORT SERVICES: % OF RESPONDENTS Company registration Procedure to obtain permit Availability of necessary building support Local availability of relevant training Cost of relevant training 86.0 85.0 82.0 76.1 67.6 Very poor Good Very good Index Source: FPC 2019 Census CROSS-BORDER INDICATORS: % OF RESPONDENTS Ease dealing with customer Length of time taken to obtain export certification Ease and cost ofmeeting standards for export Efficiency of Dar-es Salaam Efficiency of of Mombasa port T ransport to Dar-es Salaam T ransport to Mombasa 100 90 80 70 60 50 40 30 20 10 0 T ransport by Air Very poor Good Very good Index Source: FPC 2019 Census 78.6 80.9 81.8 79.7 79.0 75.1 74.0 71.5 FOREIGN PRIVATE CAPITAL IN RWANDA YEAR 2019 39 Infrastructure Figure 12: Infrastructure Availability Indicators Figure 13: Infrastructure Cost Indicators INFRASTRUCTURE INDICATOR: % OF RESPONDENTSAvailability 100 80 60 40 20 0 Electricity Water T ransport Internet Water servicesT elephony Very poor Good Very good Index Source: FPC 2019 Census 78.3 76.2 75.6 80.8 76.3 76.1 INFRASTRURE INDICATORS: % OF RESPONDENTSCost 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 65 64 63 62 61 60 59 58 57 56 55 54 Electricity Water T ransport Internet Water services 55 57 59 64 62 Very poor Good Very good Index Source: FPC 2019 Census FOREIGN PRIVATE CAPITAL IN RWANDA YEAR 2019 40 T ax and Investment Framework Figure 14: T ax and Investment Framework Indicators T ax and Investment Framework Figure 15: Economic and Financial Indicators Domestic Resources Figure 16: Domestic Resources Indicators TAXATION: % OF RESPONDENTS 100 90 80 70 60 50 40 30 20 10 0 Ease of dealing with tax issues quickly Ease of remitting funds into or out of Rwanda Consistency and fairness services rendered by RRA Quality of tax incentives for investment Quality of tax incentives for export Quality of tax incentives for imports Customs and exercise duties Very poor Good Very good Index Source: FPC 2019 Census 67.7 76.0 71.2 70.2 75.8 69.9 Availability of local finances Interest rate Domestic market size Exchange rate Inflation ECONOMIC AND LOCAL FINANCE INDICATORS: % OF RESPONDENTS 100 90 80 70 60 50 40 30 20 10 0 80.0 63.0 50.0 75.0 87.0 Very poor Good Very good Index Source: FPC 2019 Census Very poor Good Very good Index Source: FPC 2019 Census DOMESTIC RESOURCES: % OF RESPONDENTS Raw materials Land Skilled labour labour cost Local supplies 100 80 60 40 20 0 58.9 57.6 58.8 60.0 65.1 FOREIGN PRIVATE CAPITAL IN RWANDA YEAR 2019 41