World Bank Group Report Highlights Opportunities for Investors in Rwanda
The survey identifies investor perceptions of Rwanda as an investment destination with a focus on export oriented companies in eight economic sectors: Tea, Horticulture, Agro-processing, Minerals, Manufacturing, Tourism, ICT and Healthcare. The report makes specific recommendations for the Rwanda Development Board, as well as a recommendation on an analytical framework and methodology that can be replicated and implemented by the Rwanda Development Board(RDB) in the future.
The report points to the country’s stability and regulatory environment as key factors influencing the high confidence investors have expressed in establishing operations in Rwanda. When considering locations for foreign direct investment in Africa, Rwanda was ranked 8th by international investors. A significant percentage of international investors expressed positive sentiment, stating that Rwanda presents an attractive market opportunity with good security. More than 92% of existing investors have plans to invest further in Rwanda, with 45% of them interested in expanding via a joint venture and 42% via a strategic partnership.
However, the report also draws attention to areas for potential improvements for Rwanda as an investment destination. These include, the perception of Rwanda as having a small consumer market and high costs of transport, finance, and electricity – particularly for those in manufacturing. Finally, 79% percent of investors cited the quality of labor as a further limitation for their operations.
Clare Akamanzi, Chief Executive Officer of the Rwanda Development Board said, “Rwanda welcomes the Investor Perception Survey because it not only helps highlight what makes our country an attractive destination for investment, it also provides an important tool for the Government of Rwanda about where we should invest additional resources in order to attract further Foreign Direct Investments”.
Ignace Bacyaha, IFC Resident Representative in Rwanda said, “The World Bank Group commends Rwanda for its efforts to continue improving its investment climate, which has made Rwanda one of the leading reformers on the African continent.”
The international survey built a database of over 600 international company in the target sectors based on a range of sources that confirms company profiles as potential investors. 42% of companies were happy to be contacted by RDB to discuss FDI opportunities in Rwanda. Existing investors have good perceptions on the RDB’s performance. On a 10-point scale, 33% rate RDB’s performance at 9 or 10 (Very Good). 36% of respondents suggested that RDB focus more on aftercare services and 17% suggested that the RDB improve coordination with other GoR institutions.
About the World Bank Group. The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
About the Rwanda Development Board. The Rwanda Development Board was set up by bringing together all the government agencies responsible for the entire investor experience under one roof. This includes key agencies responsible for business registration, investment promotion, environmental clearances, privatization and specialist agencies which support the priority sectors of ICT and tourism as well as SMEs and human capacity development in the private sector. For more information, please visit www.rdb.rw
