This week , world leaders, ranging from Heads of states, global business magnates , entrepreneurs and tech-experts and venture capitalists will descend and settle in Kigali from the 11th to the 13th of may 2016 for the World Economic forum on Africa 2016.
Probably, many of these highly regarded business leaders and investors are coming to Rwanda for the first time. Rwanda, a very resilient,focused country that envisions to become a middle income, service and knowledge-based economy in just 5 years from now, has for the last two decades since the 1994 genocide against the Tutsi, redefined itself as a greatly considered investment destination in Africa.
Under HE President Paul Kagame’s leadership, Rwanda has consistently become a reference in Africa for good governance, political stability, well-functioning institutions, minimal corruption levels and ICT promotion.
The Gallup global report for 2015 ranked Rwanda as the safest place to
walk at night in Africa and the 5th safest country in the World.
Between 2006 and 2011, over one million Rwandans, out of the country’s 11 million moved out of poverty, prompting the prominent development expert and author of the Bottom Billion, Paul collier to say that Rwanda had pulled off a rare ‘’ hat trick’’ of rapid growth, sharp poverty reduction and reduced inequality. .President Paul
kagame’s government has initiated policies that enabled Growth to consistently
average about 8 percent for 7 years .
The world Economic forum’s global competitive report released in July last year , ranked Rwanda the best efficiently governed country in Africa, and 7th globally, with very minimal waste in government spending.
“THE GALLUP GLOBAL REPORT FOR 2015 RANKED RWANDA AS THE SAFEST
PLACE TO WALK AT NIGHT IN AFRICA AND THE 5TH SAFEST COUNTRY IN THE WORLD.”
The Global information Technology Report(GITR) of 2015, ranked the country as the first inThe country has managed to keep inflation at a single digit since 2008 and
has been rated by fitch ratings with a B+ outlook , citing strong Economic growth as well as being named the top global reformer in the World Bank Doing Business report.
The recent rankings has positioned the country to be the easiest place to do business in the East African region and second in Africa.
Rwanda is also a global leader in women representation in parliament, ranked best place to be a woman in Africa by the Global Competitiveness Report 2016 and has one of the best road networks in East and Central Africa.
• Lake Kivu contains about 60 billion m3 of methane gas, estimated to be sufficient to generate 700 MW of electricity over a period of 55 years
• Rwanda’s share of the total generation potential is about 350 MW, with the rest being DRC’s share
• An estimated 120 to 250 million m3 of methane is generated annually in the lake
• Rwanda plans to utilize this resource to develop methane-to power projects and other uses such as fertilizers and gas-to-liquids projects, but priority has been first put to power generation.
• Rwanda has immense untapped hydro resources of which there are identified and non-identified sites.
• 33 identified sites have pre-feasibility studies.
• Micro hydropower potentials around the country range between 11-900kW, and can be developed as off or on grid depending on the economic scale of the project.
• Rwanda has high solar irradiance
• Global horizontal irradiance (GHI) was recorded in 2013 in the eastern province at 1890 kWh/per square meter
• Opportunities in solar energy include off grid, mini-grid solar projects with hybrid and storage solutions
• There is also a high demand for solar energy systems, especially in remote rural areas for lighting where there is no power grid.
• Rwanda’s peat capacity is estimated to be more than 155 million tons of dry peat spread over 50,000 hectares in the country.
• An assessment of peat bogs in Rwanda and their potential use as a source of fuel for power generation indicated potential equivalent to 150MW and 117MW for sod and milled peat application respectively.
• Most of peat resources are found in the southern Province (Akanyaru, Nyabarongo river and Rwabusoro Plains).
CULTURAL TOURISM INFRASTRUCTURE PROJECT:
• Kigali Cultural Village (KCV) is aimed at making Kigali a tourism destination, and to serve as a showcase of the overall tourism product in Rwanda to both local and international tourists.
• The facility will have a conference hall with cinema theatres and galleria, Commercial and business center
• Proposed model of project implementation: Public Private Partnership.
• The vacation park is a lucrative concept for the Gicumbi District and targets families, singles and groups that enjoy an events-filled and outdoor lifestyle.
• The Vacation Village will provide visitors with every amenity required for a relaxing and exciting holiday..
HOTELS, ECO-LODGES & RESORTS:
• Rwanda’s tourism sector offers an opportunity to develop 4- to 5-star hotels, eco-lodges and resorts.
• Plans for the Twin Lakes in northern part of the country and The Kivu belt in western of Rwanda provide an opportunity for investment and potential earmarked sites and lands to develop into high end hotels and lodges, golf courses as well as hot spring eco-resorts.
LAKE KIVU SPORT:
• The project comprises three marinas to be constructed in the three tourism centres of Rubavu, Karongi and Rusizi.
• Additional jetty stations and mini ports in Rutsiro and Nyamasheke will be developed along the lake shores.
• Regular boat services between these hubs will not only trigger tourism between these centres and along the lake, they will also facilitate domestic tourism and business.
KIGALI INNOVATION CITY:
• This is a flagship project for Government of Rwanda aimed at providing World Class infrastructure, products and services.
• Targets: University, a skills academy, solution center, innovation growth center, locally-domiciled Innovation Growth Funds, innovation growth center.
Rwanda is looking for investment in an e-waste management plant in order to overcome some of the challenges that arise from the rapidly growing e-waste stream.
INTERNET DATA CENTERS:
There are opportunities to establish more data centers and business continuity centers for not only Rwanda but also the region and beyond.
BUSINESS PROCESS OUTSOURCING ACTIVITIES:
• Rwanda targets to increase the domestic demand for BPO services to US$274 million by 2020, up from the current (estimated) US$50 million..
• Rwanda offers many first-mover advantages for investors in the BPO sector which include; a young and dynamic work force, Upgraded IT infrastructure and a Bi-lingual business environment.
Other opportunities are in Smart Cities solutions, Smart Energy Grid development.
For domestic and international markets. Staple foods with significant potential for growth include beans, rice, maize and potatoes.
In the bid to boost the country’s exports, Rwanda presents enormous opportunities in the highly competitive commodities such as; French beans, peas, horticulture specialties - baby corn, chilli, mini leek, African eggplants, mushrooms and herbs - Exotic fruits growing, especially apples, bananas, passion fruits, avocados, as well as flower growing.
Washing and roasting opportunities as premium coffee harvests grow.
Irrigation and sale of agricultural equipment for large-scale farming.
DISTRIBUTION AND COLD CHAIN:
Need for improved infrastructure for export products.
Large-scale farms, slaughter houses and export of meat and feed mills
For meat exports
Cold chain, processing of UHT milk, yoghurt, cheese, butter etc
Rwanda’s building and construction industry has rapidly grown in the past couple of years with both
Government and private sector engaged in the construction of buildings and roads infrastructure. This has resulted in high demand for construction materials including Electric cables, steel materials, Clay products (tiles, bricks, and paving blocks), float glass, wood products and paints. In terms of volume, Rwanda imported 503,195 Tons construction materials – 28% of total import volume in 2013.
TEXTILES AND GARMENTS:
The textile and apparel industry in Rwanda is small with only one major textile manufacturing company (UTEXRWA), a number of sizable small to medium scale operators, knitting cooperatives and a silk sector, which is in its infancy stage. Given the unique characteristics of the Rwandan market, the following local production options seem most promising:
• Manufacture of mosquito bed nets for malaria prevention: Rwanda promotes universal coverage of long lasting insecticidal nets (LLIN’s) as part of an integrated strategy of combating the malaria disease.
• Processing of cotton, wool, and other woven fabric for use in uniforms and work wear;
• Weaving bed sheets and towels
New garments manufacturing - Rwanda has banned imports of second hand cloths
Rwanda imports most of the packaging materials needed in the country.
Most promising opportunity would be the manufacturing of corrugated paper and carton board boxes, unprinted paper labels, small paper bags and sacks, and paper containers would appear to be the most promising market segments on the domestic market.
SOAPS AND DETERGENTS:
The estimated size of the market demand for soaps and cleaning products is about US$50m with estimated domestic production of US$15-20m, representing about 40% of the total market size.
Motorcycle transport is one of the most common modes of transport in Rwanda and in the region, and the demand for motorcycles is growing. - There is great opportunity in local assembly of motor cycles to meet local and regional demand.
REAL ESTATE AND CONSTRUCTION
• There is a high demand for affordable houses. Over 186,000 units are required to address the housing needs of the middle class.in the next seven years (2016-2022)
CONSTRUCTION OF A MINISTERIAL OFFICE COMPLEX:
• The Ministerial complex is a Government of Rwanda project planned to accommodate a number of Ministries to address issue of office space for Government Ministries.
• The Technical descriptions of the project is to have a gross floor areas of 25,000 sqm, three basement floors for parking.
• A site equivalent to 1.26 Ha has been identified for this project
Other opportunities in the sector are in;
• Development of warehousing facilities.
• Construction of commercial complexes, office buildings and shopping malls.
• Production of construction materials.
• Increased credit in the agriculture sector is key to ensuring the development of the sector in Rwanda.
• Several innovations/products (weather-based crop insurance, warehouse receipt schemes, etc.) can be introduced to improve value chains within the agriculture sector.
• Existing Small and Medium Enterprises represent a large source of jobs in Rwanda. If the business environment for these firms can be improved, they can become more profitable, increase in size, and enter the formal sector
• Therefore attracting financial institutions experienced in SME financing, enhancing private equity and venture capital funds and establishment of a Rwanda Fund of Funds will help to increase access to finance for this category of enterprises.
INTERNATIONAL BANK REPO OFFICES
• Commercial banks are still the most important provider of financing in Rwanda. However, their investments tend to be constrained by the maturity of their liabilities, which consist mainly of local short-term deposits.
• The presence of international Global Banks will help to introduce a variety of products designed to finance big project born by both government and private sector such infrastructure financing, Transaction Advisory Services for privatization of government projects, Trade Finance, Cash Trade, and Pension Fund Management
REAL ESTATE INVESTMENT TRUST
• Financing and supply options for affordable housing through investing in the real investment trust by buying shares and the funds raised will be used to construct houses for low and middle market segments.
MANUFACTURING OF HEALTH PRODUCTS AND EQUIPMENT;
Opportunities are available in;
• Manufacturing of pharmaceutical products and medical equipment.
• Medical supply distribution companies to ensure that medical products are accessible.
PROVISION OF ADVANCED HEALTH CARE SERVICES,
• Health facilities such as clinics, super specialty hospitals and diagnostic centers are highly demanded.
• In order to pave the way for medical tourism, three niche sub sectors have been identified for Rwanda to focus on:
MEDICAL SCHOOLS TO GENERATE SKILLED STAFF FOR HEALTH SECTOR:
• With just one physician per 15,428 residents and one nurse per 1,200 residents, Rwanda has opportunities in medical education and training institutes such as medical schools, nursing paramedical schools, medical engineering schools and eLearning platforms.
• Qualified health workforce will help to respond to emerging health care needs.
MINERAL EXPLORATION OPPORTUNITIES:
• The Government of Rwanda has invested in exploration works in Prospective Target Areas s to generate good primary geology data to be used by mineral exploration companies.
• Intensive, up to date and detailed mineral exploration can be carried out in the recently identified Prospective Target Areas (PTAs) to delineate and quantify their mineral resources.
MINING OPPORTUNITIES (TIN, TUNGSTEN, COLTAN AND GEMSTONES):
The mining law grants the right to exploit three categories of mines: artisanal, small scale, and large-scale mines to any person or company with proven technical expertise and financial capacity to develop and run a mining project.
• Rwanda’s mineral ores produced in the country are exported as 100% raw mineral concentrates, not as metals.
• The establishment of processing plants to smelt cassiterite into tin, refining wolframite and tantalite into tungsten and tantalum respectively is open to private investors
• Currently, Rwanda’s mining sector is mostly artisanal;
• Modern technology is needed to upgrade the sector to a semi- mechanized and later at industrial level to increase production, which is low compared to the proven potential.
• Mining equipment including drillers, bulldozers, gravity table shakers are needed to upgrade the sector.
PARTNERSHIP WITH LOCAL MINING COMPANIES:
• Most local mining companies are artisanal in their settings.
• Over 400 local mining companies and 30 co-operatives are open to consider partnership and JVs, covering financing, capital equipment, technical support and competitive mineral trade contracts.
• The exploration and exploitation of gemstones is still at a low level in Rwanda.
• The country possesses a variety of gemstones including: Beryl (Aquamarine), Amblygonite, Corundum (Ruby and Sapphire), Tourmalines and different types of Quartz.
• There are opportunities to set up businesses cutting and polishing gemstones.
• Rwanda possesses a variety of minerals such as good quality silica sands, kaolin, granite, vermiculite, diatomite, clays, limestone, talcum, gypsum and pozzolan.
However, exploitation and processing of industrial minerals to meet the demand for construction materials is still low especially production of tiles, slabs sculptures, paints, bricks and concrete aggregates.
TRADE IN MINERAL SUBSTANCES:
• Trade in mineral substances is carried out by holders of mining and mineral trading licenses and owners of smelting and screening companies.
• Trading in minerals, including cassiterite, wolframite and niobium - tantalite, must contain at least 30% value added.
MOMBASA-KAMPALA-KIGALI RAILWAY LINE:
• The project is being implemented jointly by the four countries: Kenya, Uganda, South Sudan and Rwanda.
• Value of project: USD 1.5bn Rwanda Section (13.5bn entire project)
• Mombasa to Nairobi section launched in November 2013
• Feasibility studies are on-going for sections from Kampala to Kigali
• Proposed delivery mechanism: Public Private Partnership.
BUS RAPID TRANSPORT LINES (BRT) FOR KIGALI CITY:
• Project to develop a modern mass public transport system included in Kigali
• Master Plan to reduce congestion & emissions.
• 2 Phases: 1st Phase North-East to West, 2nd Phase South to West (40 km in total).
• Way Forward: Conduct feasibility studies, detailed design and secure funding.
RING ROADS FOR KIGALI CITY:
• Value of projects: USD 240M
• 80km of ring roads identified to increase mobility and reduce traffic congestion.
• 2 Phases: 1st Phase East to South section, 2nd Phase connecting | 1st Phase from South around Kigali to Eastern section.
• Project provided in the Kigali City Master Plan- Detailed study underway.
• Proposed model: Public Private Partnership with toll-road system.
LAKE KIVU FERRY SYSTEM:
Fast ferry system for passengers in touristic and highly populated area, stopping at Rubavu, Karongi and Rusizi.
Introduction of cargo system additional option
Feasibility study completed in 2010
Project will be implemented through a Public Private Partnership model
TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING (TVET):
• Infrastructure development and construction of TVET schools across the country.
• Introduce new programs that are closely connected to the labor markets
ICT IN EDUCATION:
• Smart classrooms
• Digital content development
• Teacher training in ICT at all levels.
HIGHER EDUCATION AND RESEARCH:
• Foreign universities are encouraged to open campuses in Rwanda
• There are opportunities in constructing and managing student hostels in private and Government universities.
• Supplement Government effort in scholarship provision of student loan schemes.
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