Santiago Principles Self-Assessment

Agaciro Development Fund

Fund Details Fund Website Search Assessments PDF version
  • Pillar 1: Legal
  • Pillar 2: Institutional
  • 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).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

Agaciro Development Fund (AGDF) is registered with Rwanda Development Board as a corporate trust fund with registration No103050268 under company law and operates as a national sovereign wealth fund wholly owned by the people of Rwanda. AGDF was officially launched on 23rd August 2012 by His Excellency the President of the Republic of Rwanda, Paul Kagame.

The Law Regulating the Creation of Trusts and Trustees and the Law governing Companies in Rwanda provide the legal framework for AGDF

The Government of Rwanda is the sole registered shareholder of AGDF and the company reports quarterly and annually to the Ministry of Finance and Economic Planning which is its supervisory authority.

Principle 6

6. 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.

AGDF is governed by the Board of Trustees. 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 role of the Board’s is to provide professional, transparent and accountable management of the Fund so that it benefits the current and future generations of Rwandans and to ensure that AGDF complies with the highest standards of corporate governance. 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 a shareholder in different companies owning a varying shareholding ranging from minority to majority following the Government of Rwanda’s decision transferring to AGDF shares it previously owned in different companies that operate in various investment sectors [IT, agro processing, banking and services]. AGDF is represented on boards where it is a significant shareholder.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. 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. Regarding the hiring of external fund managers,  AGDF investment policy sets out guidelines on their selection, responsibilities and monitoring. The powers to approve external fund managers are entrusted with the board with the help of management.  

The AGDF site has an  Investment Policy statement on its website.