RwandaDownload Full Scorecard
Goal – An efficient institutional framework that balances the rights of the public, owners, lenders and borrowers in the event of a dispute or loan default
Core Question: Do all market participants abide by the rule of law and have confidence in the courts and the ability of police to control crime? No – Weak, judiciary is government-influenced and suffers from inefficiency, a lack of resources and corruption.
4.1.1 What is the confidence level of the strength and impartiality of the police, courts and contract enforcement? Weak – Percentile Ranking – 46.9 Trend
Source: Governance Matters 2011, World Bank, www.govindicators.org
4.1.2 Can members of the judiciary be held accountable for their actions? No, Very Weak, Score 56 out of 100
Source: Global Integrity Report 2009 – http://report.globalintegrity.org/Rwanda/2009/scorecard
Costs of Crime
4.1.3 What are the business costs of crime and violence? – Very Strong – Score 5.6 out of 7; Ranking 30th out of 144
Source: The Global Competitiveness Report 2012-2013, World Economic Forumhttp://www.weforum.org/issues/global-competitiveness
Core Question: Are systems in place for timely and efficient enforcement of contracts?
Commercial – Yes – Very Strong
Residential – Unknown
4.2.1 – Judicial Enforcement
Commercial – Very Strong – Ranking 39th out of 183
184.108.40.206 What is the number of procedures involved in resolving a commercial dispute? 23
220.127.116.11 What is the time between the filing of a lawsuit and resolution in judicial enforcements? 230 days
18.104.22.168 What is the cost of judicial enforcements as a percentage of debt value? 78.7%
Source: Doing Business 2013– http://www.doingbusiness.org/data/exploreeconomies/rwanda#enforcing-contracts
Residential – Unknown
SQ 12 What is the time between notice of intent to foreclose and loan collection in judicial enforcements? Unknown
SQ 13 What is the cost of judicial enforcements as a percentage of property value? Unknown
4.2.2 – Summary Proceedings
SQ 14 Summary proceedings are alternative dispute resolution processes where creditors can apply for a direct court order in property disputes. What is the time between notice of intent to foreclose and loan collection in summary proceedings if available to lenders? Unknown
SQ 15 What is the cost of summary proceeding if available to lenders as a percentage of property value? Unknown
4.2.3 – Power-of-Sale
SQ 16 Power-of-sale agreements give creditors to power to sell properties after notice to the borrower without court intervention. What is the time between notice of intent to sell and loan collection for power-of-sale agreements if available to lenders? Unknown
SQ 17 What is the cost of power-of-sale agreements if available to lenders as a percentage of property value? Unknown
Source – Financing Homes 2008, World Bank and International Housing Finance Corporation http://www.cipe.org/sites/default/files/publication-docs/Financing%20Homes%202008.pdf
Core Question: Can commercial disputes be resolved efficiently and fairly without exorbitant expense and delay? No – Weak, commercial courts not yet an effective means for enforcing contracts.
SQ 18 Do specialized commercial courts exist for the handling of property disputes and foreclosures? Yes – Weak, became operational May 15, 2008
Source: Enforcing Contracts – Case Study: Rwanda, World Bank www.doingbusiness.org/documents/CaseStudies/Rwanda_CS2008.pdf
Alternative Dispute Resolution
SQ 19 Are alternative dispute resolution mechanisms in place including commercial arbitration, private mediation and community based processes? Yes, Strong.
SQ 20 What bilateral, regional and international commercial treaties exist concerning business between countries? Weak Rwanda has not yet ratified WIPO internet treaties, but the Government has taken steps to implement and enforce the WTO TRIPS agreements.
Source: Rwanda Development Board, www.rwandainvest.com/
Source: U.S. State Department Investment Climate: http://www.state.gov/e/eb/rls/othr/ics/2011/157349.htm
FQ 7. To what extent do practitioners report contracts as enforceable?
There is a notary public and legitimate brokers indicated a reasonable confidence in the court systems. When quizzed, brokers indicated that they believed that the courts would enforce their listing and sales agreement. There seemed to be no hesitancy to look to the courts for resolution.
Source: IRPF Assessment May 2007