BUSINESS & INVESTMENT IN RWANDA
Agriculture in Rwanda accounts for a third of Rwanda’s GDP; constitutes the main economic activity for the rural households (especially women) and remains their main source of income. Today, the agricultural population is estimated to be a little less than 80% of the total population. The sector meets 90% of the national food needs and generates more than 50% of the country’s export revenues.
Agriculture is supposed to grow from 5.8% to 8.5% p.a by 2018, people living under primarily agriculture sector to reduce from 34% to 25% with focus on agro processing, exports to increase in average from 19.2% to 28% p.a and imports to be maintained at 17% average growth.
For Opportunities, visit: http://www.rdb.rw/rdb/agriculture.html
Rwanda continues to be one of the fastest growing African countries in ICT and there are several avenues for growth for the ICT sector – from e-commerce and e-services, mobile technologies, applications development and automation to becoming a regional centre for the training of top quality ICT professionals and research. A robust ICT industry can create wealth, jobs and entrepreneurs.
Rwanda’s ICT Competitive advantage
- Cheap labour compared to other countries in the Region
- Young and dynamic workforce (98% of the population is under 50 years and 43% is under 16 years)
- Most favourable business environment in the Region (8th best place to do business in the world 2012)
- Low levels of corruption - Zero tolerance (Transparency international Bribery index 2012 ranked Rwanda as least bribery prone in the EAC)
- Bi-lingual business environment (French and English)
- Mobile broadband penetration
The country’s leading mobile telephony providers are MTN Rwanda, TIGO and Airtel. The network coverage accounts for99.79% of the country and the current subscriber base is at 63.5% ( 6,689,158 subscribers December 2013 ). The long term outlook of growth in these numbers is 7,437,196 by Q4 2016. Rwanda’s Internet penetration grew from less than 1% in 2000 to 13% at the end of December 2013. In addition to existing ICT infrastructure as well as access network rollout program, investment in a 4G LTE network is expected to increase penetration to at least 95% by end of 2016.
For investment opportunities in ICT, visit: http://www.rdb.rw/rdb/ict.html
- The banking sector is comprised of 9 commercial banks, 3 microfinance banks, 1 development bank and 1 cooperative bank
- The microfinance sector is comprised of 490 Institutions of which 11 are limited companies and 479 SACCOs (including 416 UMURENGE SACCOs).
- There are 12 insurance companies (7 non-life insurers, 3 life insurers and 2 public insurers).
- 1 public pension fund, the Rwanda Social Security Board and around 40 private pension schemes.
- 105 operational FOREX Bureaus
- And 1 stock exchange.
The 3 largest local banks are:
- Banque de Kigali with a market share of 31% of total banking assets and ˜ 50 % share of the total commercial bank profitability (BK 2011).
- Banque Populaire du Rwanda (BPR): 65% cooperative members, 35% Rabobank.
- Banque Commercial du Rwanda (BCR): 80% I&M from Kenya, 20% GoR.
Ecobank, Access Bank, Equity bank and Kenya Commercial Bank are among the large regional banks with a presence in Rwanda, but no international bank yet.
For investment opportunities in Financial Services, visit: http://www.rdb.rw/rdb/financial-services.html
- Rwanda energy primary use is dominated by biomass which accounts for 86.3%;
- Total installed generation capacity of 126 MW, with 22.5% connectivity rate (21% on-grid and 1.5% off-grid)R GENERATION TARGETS
- Biomass (wood energy) to drop from 86.3% to 50% by 2020;
- Generation capacity to reach 563 MW by 2017;
- Access to electricity to expand to 70% by2017;
- Public institutions to be connected 100% by 2017.
- Diversification of Energy sources;
- Focus on domestic sources of energy and phasing out heavy/fossil-fuel generation;
- Involvement of the private sector in power generation through Independent Power Producers (IPP’s) and Private Public Partnerships (PPP’s) structures;
- Provision of Power Purchase Agreement, underpinned with a minimum 25 years concession Agreement.
For investment opportunities in Energy, visit: http://www.rdb.rw/rdb/energy.html
The manufacturing sector in Rwanda is critical in pursuit of key government policies and strategies that are aimed at increasing export revenues and decreasing trade deficits, generate off-farm employment, and growth of GDP. To ensure economic transformation, the EDPRS II targets the industrial (manufacturing, construction and mining) sector to contribute 20% to GDP by 2018 and it requires growing at an annual rate of 14%.
The Rwanda industrial policy aims at increasing domestic production, improving export competitiveness and creating an enabling environment for industrialization.
Pillar two of the Rwanda Private Sector Development Strategy (PSDS) aims at building a more competitive manufacturing sector capable of competing in the EAC, Great Lakes region, using new technologies, improved quality and deepening supply and value chains.
The manufacturing sector including agro-processing currently constitutes 43% of the industrial sector and it contributes 7% to GDP.
For more information and investment opportunities in Manufacturing Rwanda, visit http://www.rdb.rw/rdb/manufacturing.html
Mining activities in Rwanda started in the early 1930’s, developed by Belgian foreign companies such as; MINETAIN, GEORWANDA, SOMUKI and COREM as well as private mining dealers for example MARSHALL, STINGLHAMBERT, GREENS, CARDINAEL, DE BORCHGRAVE etc.
In 1973 a new public mining company SOMIRWA (Société Minière du Rwanda) was created and it was declared bankrupt in 1985. Later in 1988, the new cooperative, COOPIMAR (Cooperative Industrielle Minière Artisanale) was formed to organize and assist small mining artisans to develop and increase production. By 1989, REDEMI (Régie d’Exploitation et de Développement des Mines) was created to replace the declared bankrupt SOMIRWA. The key minerals currently being mined and traded in Rwanda are Casseterite (tin), Coltan (niobo-tantalite), Wolframite (tungsten), beryl, amblygonite, monazite, gold etc.
Mining sector contributes substantially to the exports from Rwanda. It is considered the second foreign export earner after tourism. It has been growing at a rate of at least 10% every year since 1999. The major minerals exported from Rwanda are metal stones (casseterite, coltan and wolframite).
In the last three years, mineral exports recorded USD 96.4M (2010), USD 15.4M (2011) and USD 136.1M (2012). The sub-sector’s contribution to GDP is to increase from 1.2% to 5.27% (10% growth rate per each year) up to 2017/2018.
To learn more and to invest in Mining in Rwanda, visit: http://www.rdb.rw/rdb/mining.html
Construction and real estate sectors are key sectors and potential drivers of future economic growth in Rwanda, mainly due to the high demand for residential and commercial buildings for the business community.
Total Housing needs in Kigali alone reaches 458,265 dwelling units (2013-2022). Building new dwellings of up to 344,068 DU could meet these requirements.
The recent remarkable growth in local and foreign investment implies that there will be continued growing demand for residential as well as commercial buildings.
Growth in demand for low and affordable houses has been driven by among other factors, a growing population (2.89% per annum), an emerging and growing middle class, increased diaspora investment in Rwandan property markets and government investment in infrastructure expansion and modernization of urban and rural infrastructure.
Among the notable opportunities in the real estate and construction sector is the implementation of the Kigali City Master plan that entails a broad vision and guidelines for the entire city serving as the basis for more specific planning at the District and the Central Business District. It presents the most advanced sustainability in land use, infrastructure, environment, society and economy.
For more information and investment opportunities in Real Estate in Rwanda, visit http://www.rdb.rw/rdb/real-estate.html
Rwanda offers tourists a one of a kind journey home to one third of the world’s remaining Mountain Gorillas, one third of Africa’s bird species, several species of primates, volcanoes, game reserves, resorts and islands on the expansive Lake Kivu, graceful dancers, artistic crafts and friendly people.
Safe and easy to get around with short distances to diverse destinations: Rwanda is a thriving, safe country with one of the lowest crime rates in Africa . All major attractions are located along a circuit within 1-5 hour drive from the capital , Kigali. In a short vacation, a tourist can reach volcanoes, rainforests, savannah, islands, lakes and the beautiful city of Kigali.
A base to visit East African destinations: Located in the heart of central and East Africa with easy access to bordering countries of Uganda, Tanzania, Burundi , Democratic Republic of Congo and Kenya. Rwanda is an ideal location for travel within the region for conference and leisure tourists.
For investment opportunities in Leisure and Tourism in Rwanda, visit: http://www.rdb.rw/rdb/tourism.html
For current and recent tenders by the Rwanda Development Board, please visit (and check regularly) http://www.rdb.rw/home.html?tx_sbtab_pi1%5Btab%5D=2
- Business Registration in Rwanda
At the RDB, business registration has never been simpler or faster. Within 6 hours your business could be registered and ready to operate. The business registration service at RDB combines all registration requirements under one roof, incorporation, taxes and employee social security. The Office of the Registrar General (ORG) performs this service.
Today, you can register for incorporation; obtain a tax identification number (TIN) and a Social Security registration with one application.
RDB’s Office of the Registrar General goes further to:
- Register intellectual property;
- Register security interests in moveable property; and
- Register security interests in immoveable property
- You can also register your business online on our dedicated website rdb.rw