Africa Profile

Rwanda is a country with a promising future, as it pursues various capital projects aimed at driving growth and prosperity. With a population of 13 million, of which the vast majority below the age of 25, its economy has the opportunity to benifit significant future consumer spending income.

In addition, the country has undergone significant improvements over the years, making it one of the fastest-growing nations in Africa with an annual growth rate of 7.5% since 2007. With an unemployment rate of 13.3%, the country enjoys a GDP of $11-Billion (Source: World Bank) and a B+ stable rating.

Overall, Rwanda is a low-risk region with the lowest debt ratio in the region as well as stable credit ratings and a solid currency. It’s also one of the safest countries for solo travellers, making it an ideal investment destination. Rwanda’s economy is particularly business-friendly, with an impressive ranking of second for ease of doing business in Africa and first for government transparency (Source: Rwanda Development Board July 2023)

Rwanda is also IT-ready, boasting a 97% 4G LTE network coverage and ranking first in the East African Community for network readiness. Additionally, it ranks 5th in Africa and has more than 7 000 km of internet fibre, making it an ideal investment hub.

Ease of doing business

Rwanda has developed an investment-friendly atmosphere by implementing business-oriented rules, supporting priority sectors, simplifying processes, and expressing its commitment to foreign proprietorship, making the country an attractive destination for investors.

The country also opens access to African and global markets through rigorous free trade agreements and serves neighbouring markets such as Uganda, Burundi, Tanzania, and the DRC through regional connections.

Investors looking to invest in Rwanda can enjoy diverse incentives through a new Investment code.

An international company that invests $10-Million or more and sets up its headquarters or regional office in Rwanda, is eligible for a preferential corporate income tax rate of 0%.

Investors operating in mass transport, energy production, manufacturing, ICT & e-mobility are also eligible for a preferential corporate income tax rate of 15%.

Registered investors who invest an equivalent of $50-Million and contribute at least 30% of equity are eligible for a corporate income tax holiday of seven years. Export incentives also exist, based on meeting export threshold.

Talent attraction and immigration incentives, include a two-year entrepreneurship visa for start-ups, a two-year talent visa for qualifying international students, and the option for an investor who invests $250 000 to recruit three foreign employees without demonstrating that their skills are lacking.

Investors looking to benefit from attractive incentives in the construction, general manufacturing, and agro-processing industries can also explore fiscal and non-fiscal incentives.

Investment opportunities in Rwanda

• SUSTAINABILITY- The Kigali Green City Project is a sustainable development for middle-income residents and comprises green spaces, efficient energy, local sourcing, and circular living. The 16-ha pilot size is expected to start in mid-2023, while the whole city is estimated to be 600ha. The project will consist of 680 housing units which require an estimated investment of $86-Million, generating sales revenue and commercial rentals such as shopping malls and leisure facilities. Investors can benefit from the fact that the feasibility study has been completed in Sept 2021. Additionally, the project secured EUR40-Million in funding from the government of Germany through the KFW Development Bank, with detailed designs set to be completed in the second half of 2023.
• KIGALI INNOVATION CITY is a 61-hectare mixed-use development project that aims to build Rwanda as a pan-African knowledge economy. The city combines university campuses, research and development facilities, Grade A office spaces, student housing, science and technology museums, retail, and hospitality. The city has already attracted a community of highly skilled students from more than 40 African countries. Currently, project development activities are ongoing, including
  the design and construction of the first mixed-use building set to be completed in 2024. The city has already secured three anchor tenants, including Carnegie Mellon University - Africa.
  Sustainable packaging is another important investment opportunity in Rwanda. The project involves investing in recycling plants and sustainable packaging plants to create carton and biomaterial based sustainable packaging solutions.
  Various investments are available depending on the size of the project. The Plastic Recycling Plant is estimated to generate $14-Million in annual revenue, using local waste collection systems. The Paper Recycling Plant is expected to generate $15-Million in annual revenue and a Biomaterial-Based Sustainable Packaging Plant is estimated to yield $15-Million in revenue per annum. A Carton Packaging Plant for branded tea exports is another initial opportunity to target 5 000 TPA paper cartons and tea bags estimated to generate $15-Million in revenue per annum. This project is a fully private investment.
• Rwanda is set to see exciting developments in the AGRICULTURAL AND AGRO-PROCESSING sectors, with projects such as the Gabiro Agro Business Hub and the Gako Meat Project. The former will cover around 10 000 hectares of fully irrigated land and offer lease opportunities to investors, with a focus on job creation and improving food security through increased crop production. Meanwhile, the Gako Meat Project is a substantial operation spanning 5 919 hectares and sets out to modernise the agriculture industry in the country. To complete the project, an investment of $63-Million will be required.
• In the HEALTH sector, Rwanda presents a wealth of opportunities for investment, including imaging clinics, equipment manufacturing, and medical consumables manufacturing. The country has a strong existing healthcare system that covers 13 million people, with a multi-layered administrative structure overseen by the Ministry of Health and the Rwanda Biomedical Centre.
• Rwanda’s MINING industry is also primed for investment, with the country seeking to add value to its mineral output through processing. While the country already has a tin smelter, a gold refinery and a tantalum refinery under construction, there are numerous opportunities to establish processing plants for other minerals such as tungsten, lithium, and gemstones.
• Rwanda’s CONSTRUCTION industry has shown steady growth of 9% over the past decade and is expected to continue on an upward trend with a projected growth of 10% over the next decade. This growth will primarily be driven by major commercial construction projects such as the New Bugsera Airport, Kigali Innovation City, Kigali Green City, and major affordable housing projects. Investors looking for opportunities within the construction sector can explore investment in the low exploitation and processing of industrial materials necessary to meet the demand for construction materials such as tiles, slab sculptures, paints, bricks, and concrete aggregates.