Pillar 3: Investment Principle 1 1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective s. Agaciro Development Fund AGDF is registered with Rwanda Development Board as a corporate trust fund with registration No under company law and operates as a national sovereign wealth fund wholly owned by the people of Rwanda. Principle 2 The policy purpose of the SWF should be clearly defined and publicly disclosed. Principle 3 3. The activities of the Fund are reported to the Government via the ministry of finance.
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Pillar 3: Investment Principle 1 1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective s. Agaciro Development Fund AGDF is registered with Rwanda Development Board as a corporate trust fund with registration No under company law and operates as a national sovereign wealth fund wholly owned by the people of Rwanda.
Principle 2 The policy purpose of the SWF should be clearly defined and publicly disclosed. Principle 3 3. The activities of the Fund are reported to the Government via the ministry of finance. Principle 4 4. The source of SWF funding should be publicly disclosed. The general approach to withdrawals from the SWF and spending on behalf of the government should be publicly disclosed.
AGDF Finance Policy spells out the general approach to funding, withdrawal, and spending operations and is disclosed to the public via its website. This policy is supplemented by other key policies including the Investment Policy, the risk management policy and Internal Audit policy.
Principle 5 5. The relevant statistical data pertaining to the SWF should be reported on a timely basis to the owner, or as otherwise required, for inclusion where appropriate in macroeconomic data sets. Regular audited financial reports reflecting AGDF financial position are submitted to the Ministry of Finance quarterly and annually to the Government.
The reports are reviewed and approved by the Board of Trustees prior to transmittal to the Ministry of finance.
Detailed investment Reports are also prepared and submitted. Financial statements are published in newspapers with broader readership and on the AGDF website to ensure information disclosure to the stakeholders on its financial position.
The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.
The Board membership is approved by the Cabinet and the Board is accountable to the Government of Rwanda, through the Ministry of Finance and Economic Planning The Government of Rwanda has tasked the Board of Trustees to manage the funds on its behalf.
The board makes investment decisions independently in line with the AGDF objectives as approved by the Government. The Board Charter sets out comprehensively the role of the board. The management headed by the CEO who is appointed by the Cabinet of Rwanda is responsible for overseeing the running the operations of the fund on a daily basis.
AGDF is represented on boards where it is a significant shareholder. Principle 7 7. The overarching role of the Board is to provide professional, transparent and accountable management of the Fund so that it benefits current and future generations of Rwandans.
The governing body of the AGDF is the board of trustees which is appointed by the government. The chairperson of the board is accountable to the Government through the ministry of finance and signs performance contracts with the minister of finance in addition to meeting annually for evaluation of how the targets have been achieved.
Principle 8 8. The governing body ies should act in the best interests of the SWF, and have a clear mandate and adequate authority and competency to carry out its functions. The Trustees are experts drawn from different sectors of the economy both in public and private sectors and possess a vast pool of skills and competencies in business management, law and other relevant different areas. The AGDF has investment, finance and risk management policies that are approved and regularly reviewed by the board.
Principle 9 9. AGDF has in place institutional policies that set out clearly the organizational chart and well-defined staff responsibilities. The policies also define the governance structure. Operational management of the fund is also well-elaborated in the board charter, finance policy, audit policy, HR policy, investment policy, risk management and procurement policy.
The board makes investment decisions independently in line with the AGDF objectives as set by the Government. The CEO oversees the operational management of the day-to-day activities including managing budget approved by the board, human resources management, development and recruitment in accordance with HR policies approved by the board.
The CEO signs the performance targets together with the chairman, the progress of which is monitored and evaluation is done annually. Principle 10 Principle 11 Principle 12 The financial statements of AGDF are audited quarterly and an overall audit is carried out annually by an internationally recognized external auditor in accordance with IFRS.
Audited financial statements are published in the newspapers with wider readership and AGDF website for accountability and transparency to the public. AGDF financial statements disclosed to the public contain information on accounting policies including the opinion of the auditors.
Annual Report and Financial Statements Principle 13 AGDF has adopted professional and ethical standards as basic principles for its operations. Specifics thereon are defined in the Trust Deed. Members of the board must at all times comply with the express terms and spirit of their statutory obligations to the Board including acting honestly and in good faith and in what they reasonably believe to be the best interests of the Board. Members of the board must ensure that information they hold about the Board is treated in strict confidence and that property of the Board including information is used solely in the best interests of the Board.
Board members and staff operate in compliance with the Code of Conduct which sets out the standards of appropriate ethical and professional conduct for the Board. The Board charter stipulates matters related to conflicts of interest that may arise. Principle 14 All AGDF dealings with its third parties are carried out based on economic and financial grounds and follow the laws, rules and procedures that have previously been referenced in this document.
Principle 15 SWF operations and activities in host countries should be conducted in compliance with all applicable regulatory and disclosure requirements of the countries in which they operate. Currently, AGDF only operates on Rwandan territory and complies with the regulatory requirements related to its business.
AGDF has adopted ethics and transparency as upfront principles of its operations and complies with international conventions and regulations related to investment and trade as well as all applicable local laws and regulations. Principle 16 The Board of Trustees makes professional decisions independently and is accountable to the Government of Rwanda, through the Ministry of Finance on portfolio performance.
Principle 17 Relevant financial information regarding the SWF should be publicly disclosed to demonstrate its economic and financial orientation, so as to contribute to stability in international financial markets and enhance trust in recipient countries.
Updates on the AGDF financial status with details on assets under management and other relevant financial information and future plans are disclosed to the public via its website and widely read newspapers.
Financials are published in 2 widely read newspapers in Rwanda NewTimes and ImvahoNshya on a quarterly basis.
Principle 18 A description of the investment policy of the SWF should be publicly disclosed. The investment policy approved by the board provides details on objectives, risk tolerance and investment strategy.
The investment policy provides guidance on the risk management of the fund. It is complemented by a Board-approved Risk Management Policy. The investment policy sets out the responsibilities and authority of the investment managers as well as their performance monitoring. The criteria and procedures for the recruitment of internal investment managers are set out in HR Policy.
The powers to approve external fund managers are entrusted with the board with the help of management. Principle 19 If investment decisions are subject to other than economic and financial considerations, these should be clearly set out in the investment policy and be publicly disclosed. The Board operates in a manner consistent with international best practice for institutional investment.
Principle 20 The SWF should not seek or take advantage of privileged information or inappropriate influence by the broader government in competing with private entities. AGDF does not run its investments in competition with the private sector.
It does not have any privilege of information compared to other players in the investment industry. Principle 21 If an SWF chooses to exercise its ownership rights, it should do so in a manner that is consistent with its investment policy and protects the financial value of its investments.
The SWF should publicly disclose its general approach to voting securities of listed entities, including the key factors guiding its exercise of ownership rights.
AGDF adheres to the basic principles of acting in good faith and enhancing shareholder value in the long-term. The fund is owned by Rwandans with the oversight of the Government of Rwanda. The Government appoints the board to make investment decisions in line with approved regulations. Principle 22 The SWF should have a framework that identifies, assesses, and manages the risks of its operations.
The risk management framework should include reliable information and timely reporting systems, which should enable the adequate monitoring and management of relevant risks within acceptable parameters and levels, control and incentive mechanisms, codes of conduct, business continuity planning, and an independent audit function. AGDF has an internal risk analysis framework that stipulates clearly how the Fund manages risks as set out in its Risk Management Policy.
The risk management policy is very detailed with regard to all issues related to risk management and monitoring. Principle 23 The assets and investment performance absolute and relative to benchmarks, if any of the SWF should be measured and reported to the owner according to clearly defined principles or standards.
The AGDF investment policy highlights that the purpose of monitoring and reporting on investment performance is for the Board to be able to ensure compliance with system policy and applicable law, manage the risk of the portfolio and assess performance.
The audited financial statements are published in widely read newspapers and AGDF website for the purposes of information disclosure to the owners and stakeholders about the financial position of the Fund. Principle 24 AGDF has been conducting a self-assessment annually. AGDF remains committed and will continue to conduct a regular self-assessment on its adherence to the Santiago Principles. About Us.
Agaciro Development Fund
UNHCR is not responsible for, nor does it necessarily endorse, its content. The idea for a fund was proposed during the National Dialogue "Umushyikirano" in ibid. The fund was officially launched on 23 August ibid. The word "Agaciro" comes from kinyarwanda and means [translation] "dignity" ibid. The Minister of Finance and Economic Planning stated that the goal of the fund is to [translation] "make the country increasingly independent of foreign aid and give Rwandans back their dignity" cited in Jeune Afrique 21 Aug. In addition, the Minister stated that [translation] "the funds raised will be used to complete the national budget and support government projects such as access to electricity in rural areas" ibid.
Rwanda's Sovereign Fund Agaciro grows to over Rwf52bn
What is the Agaciro Development Fund?
Agaciro Development Fund Corporate Trust Limited (Agaciro)