RWANDA:A STRATEGIC LOCATION FOR DOING
BUSINESS IN EAST AND CENTRAL AFRICA
by Dr. Charles MURIGANDE
Ambassador of Rwanda to Japan
September 2014

© Rwanda Development Board, Confidential
This document does not constitute Government policy
This document forms part of an oral presentation and should not be reproduced or distributed without prior permission

ContentI. Moving from Hopelessness to Hopefulness
II. Why should you do business/invest inRwanda?
III. Some examples of possible investments

2I.
Moving from hopelessness tohopefulness3

After the 1994 genocide: Rwanda was aplace of Chaos and Hopelessness
In 100 days (From April to July 1994):• Rwanda lost one million people (15% of her population);• Hundreds of thousands made orphans, widows, widowers;• Entire surviving population displaced (internally or as refugees);• All socio-economic infrastructures destroyed;• Central and local administrations had collapsed;• Perpetrators of genocide busy reorganizing and rearming inrefugees camps, and ready to pursue their destructive activities;• Entire population traumatized and in despair;Many around the world expected Rwanda tobecome a permanently failed state!
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20 Years after the genocide: Rwanda has beentransformed into a Place of Order and Hopefulness
Rwanda is a thriving, united, reconciled,peaceful and safe country;

Rwanda is among top 20 fastest growing
economies in the world and on course toachieve all MDGs;

Rwanda leads the World in Women
Empowerment;

Rwanda is an active member of theInternational Community: 6th contributorof UN Peacekeepers;

Kigali, as a clean and green city, with thelowest crime of any capital city in theregion; Winner of UN Habitat Award(2008) the highest award for an urban
area, is representative of thisZero tolerance for corruption

turnaroundSource: World Bank ‘Governance Indicators’ 2007, UN, press search, RDB

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Key factors for this quick turnaround
1. We had a strong, visionary, inspirational and pro-people
leadership, which does what it says;
2. Innovative leadership that thinks out of the box leading toinnovations such as: Gacaca, Imihigo, Umuganda, Ubudehe,etc.;
3. Leadership that is disciplined in pursuing our vision (2020)
and its implementation plans (EDPRS);
4. A people who believe in their self-worth, convinced thatthey can achieve what other peoples have achieved, i.e.
peace, stability and development;
5. Support to our vision and development plan from partners
and friends, but we remained in the driving seat.
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II.
Why should you do business / invest in
Rwanda?

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Rwanda enjoys a good economic growth andstability
 Rwanda’s economy has grown at an average real GDP of 8% for the last 10years (2004 -2013) and is among the 20 fastest growing economies in theworld; Inflation has declined since 2008, due to improved domestic foodproduction & prudent management of fiscal and monetary policies. Average
inflation rate is 3%;
 Fitch and S&P recently upgraded Rwanda’s credit outlook to B+ due to a
track record of prudent and coherent fiscal & monetary policies. (2014);
 The service sector is the country’s largest by economic output: 50% of total
GDP in 2013. Agriculture accounts for 34% and Industry for 16%.

Source: RDB, BNR and MINECOFIN

Rwanda has an extremely conducive businessenvironment:•

32nd out of 189 countries and 2nd in Africa (World Bank Doing Business 2014);•Rwanda is the 9th easiest in the world to start a business - you can register acompany in 6 hours (even online).

•

Best global reformer (World Bank Doing Business Report 2014)•

Most competitive place to do business in East Africa and 2nd in Africa, afterMauritius. (WEF Global Competitiveness Index 2013)•

Most competitive place to do business in East Africa and 3rd in Africa (GlobalCompetitive Index Report 2013-2014)•

7th best destination for investments after Botswana, Hong Kong, Taiwan, Qatar,Singapore, India (Baseline Profitability Index (BPI) 2014, by Foreign PolicyMagazine)

Source: RDB, BNR, MINECOFIN, WB, WEF, GCI, BPI

Rwanda is an ideal location for accessing thehuge markets of East and Central Africa
 Rwanda is a member of the East African Community - EAC (142Million people), the Common Market of East and Southern
Africa - COMESA (400 Million people) and Economic
Community of Great Lakes Countries – CEPGL (90 Million) – allthese have achieved various levels economic integration withfree movement of people and goods;
 The middle class is growing at an average of 20% in Rwanda
and the region;
 Rwanda is in the heart of Africa and uses both English andFrench languages and can serve as a hub of a rapidly
integrating region.
Source: RDB, BNR and MINECOFIN

Rwanda offers attractive incentives for investors Duty free importation of machinery and equipment
as well as of raw materials
 Investment allowance- Accelerated depreciation
 No restriction on repatriation of capital & profits
 100% write off on R&D costs
 Additional fiscal incentives in strategic sectors (e.g.
energy, ICT) Work permitsFurther, as an EAC custom union member,
Rwanda has Duty free importation for EAC products
due to the Common external tariff
Source: RDB, BNR and MINECOFIN

Rwanda has a growth ambition for becoming
Middle Income Country (VISION 2020)
OBJECTIVESTARGETS

Rapid
economic
Rapid
economic
growtgrowthAvg. GDP growth from 8% to 11.5%
GDP per capita from $644 to $1240

Increased
growthin
Increased
growthinsectors
allallsectors

Agriculture 5.8% to above 8.5% p.a.
Industry 8.8% to above 14% p.a.
Services 10.5% to above 13.5% p.a.

Structuralshift
Shiftofof
Structuraltheeconomy
economytheAgriculture from 34% to 25% of GDP
Industry : 16% to 20% of GDP
Services: 50% to 55% of GDP

Close the external
Close
the external
trade balance
trade balanceExports: Increase avg. growth from
19.2% to 28% p.a.
Imports: Maintain17% p.a. avg. growth

III.
Examples of some investment projects

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ENERGY
CURRENT SITUATION
Total installed generation capacity of 119MW.
Need to increate to 563MW by 2017

Need to increase the connectivity from
20% to 70% by 2017

POSSIBLE ENERGY SOURCES Hydro-power (various sites for micro to minihydro-power) generation;

 Methane gas; Geothermal energy; Solar; Peat to power
Source: RDB

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INFRASTRUCTURE
MOMBASA – KAMPALA – KIGALI RAILWAY
 Responsible Agency- MININFRA
 Project cost. $3.5billion

 Project description: Railway linking
3 countries Kigali – Kampala(Uganda) - Malaba – Mombasa(Kenya) Financing model: PPP Status: Feasibility and designs to becompleted by end 2014
Source: RTDA15INFRASTRUCTURE
Eldoret-Kampala-Kigali Oil PipelineResponsible Agency- MininfraProject cost. $402 Million

Project description: EAC flagship project toease the transportation of oil and petroleum
products from Kenya to Kigali throughKampala.



Financing model: PPP

Status: Kampala–Kigali feasibility study
underway, with final findings expected end
2014

Source: RTDA

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LOGISTICSKIGALI LOGISTICS PLATFORM PROJECT Responsible Agency: MINICOM
 Cost: $28 million – Phase 1

 Description: Project to consolidate alllogistics services in a single locationwith key logistics facilities.
 Financing model: PPP model (servicedland to be provided by GoR).

Source: RDB17

REAL ESTATE AND CONSTRUCTION Leading contributor to GDP (15%).
Investment Opportunities
 Huge demand for residential & commercial
housing (344,068 dwelling units needed tomeet the current housing needs).
 CBD- fully serviced land available for mixed
use-commercial complexes and shoppingmalls.
 Huge demand for affordable housing to caterfor the growing middle class (186,163DU).
 High demand for construction materials dueto growing construction industry.
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CONSTRUCTION MATERIALSSTEEL PRODUCTS
Steel building products worth over $81million wereimported in 2012. (hollow sections, rolled steel plates,accessories such as gutters, ridges, wire meshes, etc.)
ELECTRICAL CABLES
No local manufacturers, but high demand (imports were $28 million in 2011). Demand for cables is projected toexponentially.
SHEET GLASS
Float and architectural glass for building construction ismostly imported, yet Rwanda has huge deposits of themajor raw materials required for float glass manufacture(Silica sand, Dolomite, Limestone and Felds path clay).

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TOURISM
Leading foreign exchange earner- generated$293.6M in 2013 :Unique assets: Mountain Gorillas, Diverse
bird species, diverse primate species, gamereserves, Equatorial forest, furthest source ofthe Nile, etc.
Major International brand hotels: Marriott,Radisson Blue, Radisson by Park Inn,Sheraton, Protea, Kempinski.
Growing Conference Tourism: Potential tobe the conference tourism hub of East Africa
once Kigali Convention Centre is operational;Easy access: East Africa single tourist visa
launched in January 2014.
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TOURISM
SOME INVESTMENT OPPORTUNITIESHot Springs Eco-resort
Value of project: $40 M
Size of property: 12.5 Ha
Access & Transport: Gisenyi, 3hr drive from Kigali or
20mins flight to Rubavu Airport
Attractions: L. Kivu, Mountain Gorillas, Congo Nile Trail,
hiking and trekking trails.
Karongi Golf Resort

Value of project: US $ 100–152 M
Access & Transportation: The site is only a 2hr driveaway from Kigali. Infrastructure and Utilities : Water
supply, stable power grid.
Attractions : Congo Nile Trail, Environment Museum,caves, flora and fauna, hiking and trekking trails, LakeKivu and its surrounding islands
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Rwanda’s Investment Opportunities

Financial Services•••

Rwanda aims to be a financial hub inthe region.
58% of Rwandans have no access tofinancial services
Return on Equity 10.9 %Opportunities in:•••

Investment banking services,Provision of life policies and other
innovative assurances schemes;
Fund management including private
equity, fund of funds, wealthmanagement, etc.
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Rwanda’s Investment Opportunities

Business Process Outsourcing•The Rwanda has one the best IT
Infrastructure in Sub-Saharan Africa witha Fiber Optic National Backbone
reaching all major trading andadministrative centers, a first class Data
Center and skilled IT labor force Rwanda is ready to become a major
BPO Center in Africa.

Opportunities in:••••

Financial and accounting services;
Middle / back office; call centers;
Human resources related services;
Etc.
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Rwanda’s Investment Opportunities

Agribusiness Opportunities:• Food processing for domestic & international
markets.
• Coffee-Washing and roasting opportunities• Dairy farming and milk processing (UHT milk forexport)• Textile: Growing sericulture sector supported by theGovernment of Rwanda through the National Sericulture
Center (NSC) to promote the silk industry.
Horticulture / Flower Park•••••

Aim: develop a 200 ha flower park
Expected to produce over 95 million stems
Export potential to EAC, Europe and others
Looking for investors; US$ 21 million
Feasibility study completed24

MINING A leading foreign exchange earner, mining contributes
significantly to the Rwandan economy. In 2013 export
revenues were $226.2M.
Investment opportunities in: Mineral Exploration Opportunities in the identified 21
prospective target areas Value Addition- Establishing processing plants to smelt ores.
 Mining & Mineral Trade in:o Tin, Tungsten and Coltan- details, volumes (exports andusage)o Gemstones. A variety of gemstones including beryl, andcorundumo Industrial Minerals (silica sands, limestone, talcum, etc.)25

Rwanda’s Investment Opportunities
Other Sectors of opportunity
EDUCATIONHEALTHCAREINFRASTRUCTURE
MANUFACTURE
And more…

Source: RDB

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For more information contact:
Rwanda Development Board (RDB)
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Rwanda Development Board (RDB)

Boulevard de l'Umuganda, Gishushu, Nyarutarama Road.
P.O. Box 6239 Kigali, Rwanda
Fax: +250 252 580388
Email: info@rdb.rw or investorfeedback@rdb.rw
Website: www.rdb.rw

RDB is the government agency, with a private sector mindset, charged with fasttracking economic development of Rwanda. RDB is:•

The Information hub for investors – Investment Promotion team•The link to the right people•

The One Stop Centre for starting a business•

The Facilitator for business implementation – Aftercare team