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.

AgDF Corporate Trust Ltd (AGDF standing for Agaciro Development Fund, hereinafter referred to as “AgDF” or the “Fund”)) is a private limited liability company duly incorporated and registered as a corporate trust under company code No103050268, wholly owned by the Government of Rwanda. The Fund operates in accordance with the law governing companies as amended from time to time.

AgDF was launched on 23rd August 2012 by His Excellency the President of the Republic of Rwanda, Paul Kagame. 

AgDF is governed by the Board of Directors appointed by Cabinet Resolution which oversees the operations of the Fund. The Board reports quarterly and annually to the Government of Rwanda, through the Ministry of Finance and Economic Planning (MINECOFIN) which is its supervisory authority as the line Ministry acting in the name of the Government of Rwanda, sole shareholder of the Fund.

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 Directors appointed by the Cabinet, and the Board is accountable to the Government of Rwanda      through the Ministry of Finance and Economic Planning. 

The role of the Board      is to provide professional, transparent and accountable management of the Fund. AgDF complies with the highest standards of corporate governance. The Board makes investment decisions independently in line with AgDF’s objectives as approved by the Government. The Board charter sets out comprehensively the role of the Board. The Management is headed by the CEO, who is appointed by the Cabinet and is responsible for overseeing the running the operations of the Fund on daily basis. The CEO is assisted by a Chief Finance Officer, a Chief Investment Officer and a Chief Shared Services Officer.

Following the Cabinet’s decision to transfer its shares in a number of companies to AGDF, the Fund is a shareholder in different companies owning a varying shareholding ranging from minority to majority. The portfolio companies operate in various sectors of the economy such as IT, agri-processing, banking and services. AGDF is represented on most Boards of its portfolio companies.

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 Statement approved by the Board provides details on objectives, risk tolerance and investment strategy.

The Investment Policy Statement provides guidance on the risk management of the Fund. It is complemented by a Board-approved Risk Management Policy. 

During the FY 2022, AgDF developed a risk register for the Fund, and it is subject to being updated annually. 

The Investment Policy Statement sets out the responsibilities and authority of the investment managers as well as their performance monitoring.  The criteria and procedures for recruitment of internal investment managers are set out in HR Policy. Regarding the hiring of external fund managers, AgDF’s investment policy sets out guidelines on their selection, responsibilities and monitoring. The power to approve external fund managers is entrusted to the Board with the help of management.  

The AgDF site has its Investment Policy Statement on its website.