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Asset and Business Management

The Government of Rwanda has significantly invested in quality infrastructure to create a conducive environment for investments. With a private sector that is still emerging, the
Government of Rwanda will continue to make investments in strategic sectors where necessary to facilitate private sector development.

Managing these assets in a professional manner is critical for financial sustainability but also to ensure that these investments are maintained for the benefit of the Rwandan economy.

In some cases, the investments can become viable commercial businesses and divesting them will help increase private sector involvement in the economy.
RDB, where many such assets reside, aims to manage the existing assets professionally (and, in some cases, privatise them) and ensure new investments are made that will facilitate private sector entry in the future.

Goals

Maximize financial returns on investment while achieving GoR’s development goals
Facilitate private sector entry into the economy by investing in strategic sectors
Support goal of a financially independent and self sustaining RDB by generating revenues for RDB

 

Scope

The department only manages assets that meet two conditions:
(1). Physically developed and ready for operations
(2). There is value from being managed by the department rather than by the clusters.


For assets meeting the two conditions, if the asset has potential to be commercial i.e. be able to generate revenues to at least fully cover costs it will be managed under Special Purpose Vehicles set up and overseen by the Department. If the asset is not expected to be commercial it will be managed directly by the Department.

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Strategies

Development of a strategic business plan for each asset

  • Professional management of assets i.e. set up private companies (SPVs) to manage commercial assets
  • Facilitate private sector takeover of asset where appropriate
  • Maintain a portion of the revenue proceeds on assets given to manage or services rendered by RDB for RDB budget
  • Make new investments into profitable commercial activities to generate financial returns for RDB (long term strategy)

 

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