High confidence of foreign investors in Rwanda increases FDI by 78pc

Foreign Private Capital Census (FPC) 2015 latest report released by the central bank shows that Foreign Direct Investment (FDI) in Rwanda have increase by 78.1 pecent to US$458.7 million in in 2014 from US$ 257.6 million recorded during 2013 due to high confidence of foreign investors in Rwanda and the country’s attractiveness to foreign investment.

Flagship investments that were registered in 2014 include C&H garment in textile industry, Advanced Factory Units (AFUs) in call center manufacturing.

Mauritius investments in Rwanda are leading with $ 113.5 million followed by Switzerland $ 106.2 million. The United States of America and Luxembourg come on third and fourth positions with $ 70 million and $ 52.6 million worth of investment respectively. In East Africa, Kenya comes on 7th position with $ 28.3 million inflows.

According to the report, for the last seven years (2009-2014), a total of 338 investments projects fully owned by foreign investors or in joint ventures with local investment have been registered with pledged investment value of $ 2,607 million and planning to create 55,141 jobs.

In 338 pledged projects, 211 are operational, 69 are in implementation phase, and 32 have closed, while 36 remain committed to start their activities.

The performance is attributed to several reforms in doing business including; a tax holiday of up to seven years, government’s protection of investments, settlement of disputes, transfer of funds and special economic zone facilitations.

Country ranking in doing business and investment by credible global institutions also is believed to have indicated that Rwanda is one of the best areas to do business.

According to World Bank doing business, 2015-2016 Rwanda improved its world ranking to 46nd position in the world, up from 48th the previous year. In Africa, Rwanda retained 3rd position and number one in the East African Community.

The country is also among countries with least burden of government regulations and least cost of crime and violence. Rwanda ranks among the top 10 in: starting a business, government spending, foreign Direct Investment rules and procurement of advanced technology.