Rwanda is experiencing a mining boom that is transforming the lives of thousands of people living near the mining sites. The government has implemented a revenue-sharing scheme that allocates 10 percent of the mining royalty tax to fund development projects in the communities hosting mining activities.
The scheme, which was introduced in 2016, has so far disbursed up to Rwf2 billion (about $2 million) to eight districts across the country, according to the Rwanda Mines, Petroleum and Gas Board (RMB). The money has been spent on projects such as water and electricity supply, medical facilities, roads, model villages, disaster relief, and environmental protection.
The RMB said the projects have benefited more than 59,000 households in Gatsibo, Kamonyi, Rutsiro, Burera, Rulindo, Kayonza, Ngororero, and Muhanga districts. Some of the projects have been completed, while others are still ongoing or in the pipeline.
The beneficiaries of the scheme have expressed their gratitude and satisfaction with the improved living conditions and economic opportunities. For example, in Burera district, where a health post worth more than Rwf400 million was built, residents said they no longer have to travel long distances to access health care services. In Kayonza district, where a model village worth Rwf158 million was built for 16 families, residents said they have gained decent housing and access to social amenities.
The revenue-sharing scheme is part of the government’s efforts to ensure that the mining sector contributes to the socio-economic development of the country and its people. Rwanda’s mining sector is one of the main drivers of the economy, generating $851.6 million in export revenues from January to September 2023, representing an increase of 45.6 percent compared to the same period in 2022. The country targets to earn $1.5 billion from the sector by 2024, according to the RMB.
Rwanda is not the only country in Africa that has adopted a revenue-sharing scheme for its mining sector. Other countries, such as Ghana, Tanzania, and Zambia, have also implemented similar policies to ensure that the local communities benefit from the mineral wealth of their lands. However, some challenges remain, such as ensuring transparency, accountability, and participation in the allocation and management of the funds.
The RMB said it is committed to addressing these challenges and enhancing the impact of the revenue-sharing scheme. It said it is working closely with the local authorities and the mining companies to monitor and evaluate the implementation of the projects. It also said it is engaging with the communities to identify their needs and priorities and to raise awareness about the scheme.
The RMB said it hopes that the revenue-sharing scheme will not only improve the livelihoods of the communities but also foster a positive relationship between them and the mining sector. It said it aims to create a win-win situation for all stakeholders, where the mining sector can operate in a conducive and sustainable environment, while the communities can enjoy the benefits and opportunities of the sector.
Source: MSN
