Corporate Governance in Rwanda: Opportunities and Challenges

Abstract

This article explores the recent corporate governance developments in Rwanda. The development of corporate governance in Rwanda has been fostered by direct and indirect factors. Direct factors include annual governance reviews, enactment of legislation to promote a robust legal framework, establishment of institutions, establishment of a commercial justice system, and deliberate efforts of sensitization about corporate governance. On the other hand, indirect factors include privatization of government owned enterprises, establishment of a Capital Market, and the liberalization of the economy. Challenges facing effectiveness of good corporate governance in Rwanda are also discussed. It was shown that Rwanda has made a lot of headway in creating a favourable framework for corporate governance, in spite of certain challenges still facing effective corporate governance.