﻿Kigali, Rwanda Rwanda’s economy has been on boom
in the last decade, thus it is no surprise that the real estate industry in its capital, Kigali
is growing at an exponential rate. 20 years after the Rwandan genocide, Rwanda is becoming an East
African success story. After the genocide of 1984, Rwanda’s economy plummeted as the war brought more
than half a million casualties. It led to the impoverishment of its population, devastating
Rwanda’s already fragile economy, which shrank by 50% within the year of the genocide, and the
Per capita income dropped to $80 a year. Since then, Rwanda has made significant progress and
development in the economy, as indicated by the Gross Domestic Product (GDP) annual growth rates.
Exports of coffee and strong tea and a successful government policy were the main contributions
to the growth. The government of Rwanda has implemented successful regulatory reforms since
2008. The reforms include new intellectual property law, a law establishing the Kigali
international centre, a law on arbitration and conciliation in commercial matters,
and a new company law adopted in 2009. These laws have reduced bureaucratic barriers,
creating a conducive environment for both domestic and foreign investors.
Kigali is the capital and largest city of Rwanda. It is near the nation's geographic centre in a
region of rolling hills, with a series of valleys and ridges joined by steep slopes.
The city has been Rwanda's economic, cultural, and transport hub since it became the capital
following independence from Belgian rule in 1962. It is located in the centre of the country on
the Ruganwa River. Kigali was a trade centre during the German colonial administration and
became a regional centre during the Belgian colonial period (1919–62). Kigali’s light
industry includes shoe, paint and varnish, radio-assembly, and tanning factories.
Cassiterite (tin) mining companies have their headquarters in Kigali, and a smelting plant was
built there in the 1980s. The city is connected by roads, including several that are paved,
to all four borders of the country. It also has an international airport and a technical college.
Rwanda’s Development Board (RDB) which we established in 2008 to facilitate new investment
projects. As a result of the investment law of 2006. RDB has consolidated various government
agencies previously involved in promoting investments. The agencies now work as a group
and act as an information centre for investors to obtain the required approval certificates land,
work permit, and tax incentives.The RDB also evaluates the business plans for potential
investors to allocate investment incentives better and record income from investments. The board
targets investments in the energy, tourism, and Information Communication and Technology sector.
The government of Rwanda invites all Foreign investment in all sectors with no restrictions
on equity or ownership. Making it great for investment. Here are some great sectors to
invest in in Kigali. Agriculture Sector
Agriculture is the primary economic sector for the people of Rwanda. It employs 90% of the workforce
and contributes 35.9% of the GDP. The sector is a success since manual labour is readily available
in Rwanda. But skilled professionals are limited due to the county’s recent tragic genocide,
although the government has made considerable investments in the education sector.
Coffee and tea make up Rwanda’s significant exports, accounting for a substantial part of
the foreign exchange earnings. The major markets for coffee exports being the US and Europe,
while the primary market for tea export being the middle east and Pakistan.
The sector also meets the national food needs. Investment opportunities exist in Dairy,
Poultry, farming, aquaculture, mechanization, crop sourcing, block chain, agro-tourism,
manufacturing of agriculture equipment, and cold chain logistics.
Energy sector
The energy sector in Rwanda is still developing. Over 80% of its energy is always sourced from
wood or in its processed form: Charcoal. This form of energy is used mainly by households.
The high use and demand of it have led to the deficit of wood for domestic life and
economic activities. Rwanda, for now, faces substantial electricity problems,
therefore, providing you with investment opportunities in the Rwandan energy sector.
A sustainable energy source’s high need pushed the government to create investment opportunities
in the energy sector, including installing standalone solar systems for households and
Mini-grid systems’ structures from various resources, solar, hydropower, and biomass.
Banking and finance sector.
Investments in Rwanda’s banking and financial sector are small since less than 20% of the
country’s adult population has access to financial services or has a bank account. Nevertheless,
the industry has made great strides towards modernizing its services.The industry is stable,
well-capitalized, profitable, and liquid. The sub-sector consists of the Central bank,
commercial banks, and the Development Bank of Rwanda. The major obstacle you will face as an
investor in the banking sector is the limited access to credit, the high-interest rates on
loans and most loans are short-term. Telecommunication and ICT sector
The government of Rwanda has made ICT a high priority sector and has granted licenses to
foreign investors such as MTN and Tigo Rwanda. The investors have been instrumental in the
government strategy to develop a knowledge of the economy to facilitate business in general.
Rwanda’s ambition to become a regional hub in capacity building in ICT has made the government
invest in developing ICT infrastructure to enable service delivery. Investment opportunities in the
ICT sector include software development, software R&D, cloud computing, E-governance, ICT education
and training, business process outsourcing, ICT business financing, and IT consulting.
Tourism sector
The tourism sector in Rwanda operates under a developed strategy that focuses
on high-end eco-tourism. The industry proposed projects to enhance their tourism experience by
creating high-value and low environmental impact experience for eco-travellers,
explorers, and business travellers. The projects include cultural tourism infrastructure projects,
vacation villages, hotels, eco-lodges, and resorts. The projects provide an investment
opportunity, and Rwanda invites private investments into developing the sector.
The investment-friendly climate in Rwanda backed by laws that favour investors is
one of the reasons to invest in Rwanda. Its robust governance and Anti-corruption system
of government offer investors security for their investment. Rwanda is a hub for rapidly
integrating East Africa and offers investors access to markets with over 10 million people.
The sustained high economic growth with an average annual GDP growth rate highly
favours domestic and foreign investors with a stable inflation and exchange rate.
In Rwanda, there are numerous untapped investment opportunities with the potential
for investments offering you a diverse investment platform in many sectors.
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