Rwanda SIRM

completed

The objective of the Systemic Investors Response Mechanism (SIRM) project is to pilot the SIRM tool in Rwanda (another pilot is being implemented in Ethiopia). SIRM is an early warning and tracking tool to identify and resolve issues that arise due to specific action or inaction of a government agency. The project aims to customize the SIRM tool to the political economy of Rwanda to enable them to measure the FDI retained and expanded as a result of early detection and management of investors' problems arising out of government action. Further, on the basis of the pilot, the project aims to extract lessons as how to better customize the tool to the African context and improve the efficiency and adaptability of the SIRM to other developing client countries. A SIRM is designed based on a country's specific political, economic and legal/institutional framework. A Lead Agency is designated with the authority to implement SIRM, including coordinating with national, subnational and sector-specific agencies to influence their actions to effectively reduce political risks at their source. As such, the SIRM is a key instrument to promote de-risking of investments, creating markets and a more enabling environment for private investment. In Rwanda, the agency hosting the SIRM will be Rwanda Development Board, which has the mandate and is the current main actor to assist investors with their operational issues and grievances involving the government. The project is being implemented from May 2018 to December 2019 and is structured along three specific components: (1). Support and Strengthen RDB's capacity to handle investor issues for entry, establishment, retention and expansion of investment (2). Support prevention of escalation of investor issues (3). Horizontal support for technology tool and capacity building.