The minister revealed this yesterday as he presented agreements determining the establishment of FEDA to the lower house of parliament which it endorsed.
Munyangeyo Théogène, the chairperson of the Standing Committee on Economy and Trade in the Lower Chamber of Parliament explained that the fund comes in handy to address challenges related to lack of capital among Rwandans and Africans in general.
“African countries experience trade deficit. Therefore, these agreements are beneficial to African countries. It is a great milestone to sharpen Rwandans’ skills and address issues pertaining to the lack of capital investment,” he said.
The cabinet meeting held on 11th November 2020, approved a Memorandum of Understanding on the hosting of the permanent headquarters of FEDA in Kigali.
Dr. Biruta said that agreements establishing the fund were signed in Cairo, Egypt on 22nd November 2020 expected to promote investment in Rwanda and Africa, address barriers hindering trade and facilitate the implementation of Africa Continental Free Trade Area (AfCTA).
“The agreements will also promote investment especially in our country where the fund will be headquartered whereby Rwanda will take advantage of several benefits like promoting Rwanda’s visibility as the hub for international financial institutions,” he said.
“FEDA will also open doors for Rwandan business community, connecting them to other African countries and investors. The fund will also provide jobs to Rwandans,” added Biruta.
The fund will begin operations with US$200 million initial capital provided by African Export–Import Bank (Afrexim Bank).
The fund is also expected to foster jobs creation.