Rwanda is proving to be a favourite for the investors, and the amount of investment in the country as of now speaks volumes as regards the level of confidence the investors have in Rwanda. Its fast-growing economy is highly credited for luring investors to the country.
As it stands right now, investment in the country is amounting to around $2 billion. Rwanda’s Development Board (RDB) released stats which showed that 173 projects worth US$2 billion had been registered in the country by the beginning of 2019. It's pretty much a mammoth figure.
This is also being aided by the major manufacturing and mining projects in the country. The International Monetary Fund says that economic growth in Rwanda has been averaging more than 7 percent every year since 2000. These are the kinds of statistics that play a huge role when an investor makes a decision to invest in Rwanda.
Rwanda has enjoyed political stability, accompanied with a fast-growing economy. These have been the ingredients which have been key to attracting investors to the country.
The human rights situation in Rwanda is not the best one can hope for. The president, Paul Kagame, denies allegations of imprisoning political opponents and muzzling the freedom of the media.
Prosper Ndayiragiye, country manager of Africa Improved Foods credits high rates of investment to political stability and economic growth. Africa Improved Foods is a local manufacturer of fortified and nutritious complementary food.
"I would say that in Rwanda mostly what is easy is for example, you can start your company quickly, company registration goes very first. You can also make agreements, commitments with the government on incentives, that can also help the company to start," he remarked.
The Chief Investment Officer of RDB, Guy Baron, said: "31,000 jobs created in the economy is the estimate related to those investments. The second part is that it represents an increase in business activity, and investment activity, that then produce tax revenue, which feeds, education, up scaling health care, all the things that government funds that supports it as well, and I think the third factor is that activity promotes more activity. So when we get a level of investment, what it means our rate of investment is going to be increasing and more investors then encouraged to come."
Rwanda has made some impressive strides in being innovative, and this has greatly helped towards the growth of its economy, which in turn attracts investors. The Kigali Special Economic Zone provides room for manufacturing companies to operate without incurring huge import costs.
Header image credit - The New Times