UK’s CDC Group signs MoU with Rwanda Finance limited, to develop new financial center

The United Kingdom government-owned finance development institution, CDC Group, has recently signed a memorandum of understanding with Rwanda Finance Limited in a historic partnership to develop the Kigali International Financial Center. This move marks a significant milestone in the collaboration between the UK and Rwanda in the financial sector. In an exclusive interview with CNBC Africa, Nick Barigye, the CEO of Rwanda Finance Limited, shed light on the significance of this partnership and the vision behind the Kigali International Financial Center. Barigye emphasized the importance of partnering with CDC Group, a renowned Development Financial Institution with a strong track record of investing in Africa. He highlighted the mutual agreement to establish a legal and regulatory framework that complies with international standards and meets the expectations of investors like CDC. Additionally, CDC will leverage its network to connect Rwanda Finance Limited with professional service advisors and providers, contributing to the growth and upscaling of professionals within the ecosystem. The aim of the Kigali International Financial Center is to create a strategic jurisdiction in Africa that facilitates cross-border investments and trade. Barigye stated that the Center aims to attract investors seeking a conducive environment and connectivity across the African continent. By positioning itself as a gateway for inward investments into Africa, the Center aims to support foreign investors looking to structure their investments within the region. In addition to inward investments, the Kigali International Financial Center seeks to encourage outward investments, allowing investors to explore opportunities not only in Rwanda but also across Africa. The Center intends to play a pivotal role in promoting continental African trade and fostering cross-border investments throughout the region. The Kigali financial services sector, which currently comprises 16 commercial banks, eight insurance companies, the Rwanda stock exchange, and microfinance institutions, is already vibrant. However, Barigye highlighted the need to diversify the sector and attract new products and tenants. The Center aims to attract fund managers, global traders, fintech companies, and facilitate special projects such as green financing. Moreover, the Center is keen on welcoming additional professional service providers like fund administrators, international law firms, and international banks to further enhance the financial ecosystem. The partnership between CDC Group and Rwanda Finance Limited signifies a strong commitment to driving financial growth and development in Rwanda and the broader African continent. With a focus on creating a conducive environment for investments and promoting cross-border trade, the Kigali International Financial Center is poised to emerge as a key player in the region's financial landscape.