Investing rwanda by Africa Report

INVESTING

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INVESTING RWANDA 2012

RWANDA2012

Doing Business in Africa

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CONTENTS 4

INVESTING RWANDA 2012 REAL ESTATE

KEY POINTS

52 53

POLITICS & SOCIETY 11

A Nation-State Geographic map

Africaʼs highest population density

POLITICS

14 17

FOREIGN TRADE

28 30

A presidential system FACTFILE POLITICS

FACTFILE FOREIGN TRADE

ICT

60 61

RESOURCES

Rwanda in the world FACTFILE INTERNATIONAL

MINES AND QUARRIES

36 37

A huge geological potential Economic map

INFRASTRUCTURE

Major projects

INVESTMENTS

ECONOMY & BUSINESS ENVIRONMENT Development strategy FACTFILE ECONOMY

A modern, adapted framework

COMPANIES & MARKETS COMPANY LIFE

46 48

FACTFILE ENERGY AND ENVIRONMENT

The worldʼs most "sustainable” country Investment opportunities calling

FACTFILE INFORMATION TECHNOLOGY

HUMAN RESOURCES

63 65

People are Rwandaʼs richest asset FACTFILE HUMAN RESOURCES

TOURISM

A strategic industry for the future FACTFILE TOURISM

TRAVEL DIARY 70

Your trip

Effective tools FACTFILES COMPANY LIFE

BANKING AND FINANCE

49 OUTLOOK

24 27

Boosting exports

AGRICULTURAL RESOURCES 32 Food security is assured 35 FACTFILE AGRICULTURAL

INTERNATIONAL

18 21

Ten times more power by 2017

WATER AND ENVIRONMENT

POPULATION

FACTFILE REAL ESTATE

ENERGY

HISTORY

The building boom

The financial market rests on sound foundations

FACTFILES BANKING AND FINANCE

© The Africa Report ‒ Groupe Jeune Afrique Headquarters: 57bis, rue dʼAuteuil, 75016 Paris, France Tel.: (+331) 44 30 19 60 ‒ Fax: (+331) 45 20 08 23 www.theafricareport.com Photography by Antonin Borgeaud/Jeune Afrique, except where otherwise mentioned. Printer: Léonce Desprez, 62620 France

KEY POINTS The international community regularly praises Rwanda for its

STEADY GROWTH Since 2005 Rwanda has had an

good governance and economic

average growth rate of 8.8%, low

progress. Africaʼs “little dragon”

inflation and a stable currency

has become one of the continentʼs most reliable representatives. It is bilingual, stands at the crossroads

exchange rate. In January 2011 the IMF ranked it among the 10 countries that have made the fastest progress in the past decade.

of French- and English-speaking countries and belongs to two large regional organisations totalling 19 nations and 300M consumers, a position that makes it predestined to become the regionʼs hub and opens up huge prospects for its trade and services. Managed like a company, Rwanda welcomes international investors.

FIRM, HEALTHY GOVERNANCE The Vision 2020 development programme, based on the preeminence of the rule of law, the role of the private sector as a driving force and zero tolerance for corruption, aims to make Rwanda an intermediate-income country by the end of the decade.

A FAVOURABLE INVESTMENT CLIMATE

EMPHASIS ON UPGRADING SKILLS Rwanda is strengthening

Steps taken in favour of investors

education, professional training,

the development of a service economy. Investment prospects abound in trade (import-export), transport, NICT, health, higher education and tourism.

put Rwanda first in 2010 and

teaching, science, technology

second in 2011 among countries

and individual responsibility with

adopting the greatest number

the aim of setting up an economy

of reforms, according to the

based on high-level information

The secondary sector expanded

• Industry

World Bankʼs annual Doing

and communication technology,

by 8.4% in 2010. Industries with

Business Survey. It takes just two

finance, commerce and transport

the brightest outlook include

procedures and 24 hours to set

services by 2020.

mining (especially on-site ore

up a business. Foreign investment

processing), energy (geothermal,

rose 14-fold between 2004 and

power plant construction, solar),

2009.

PROMISING MARKETS

UNTAPPED OPPORTUNITIES Rwanda boasts many varied investment opportunities, but its fast pace of growth and

construction (materials and buildings) and public works.

• Agriculture and agro-industry Eighty percent of the population

Rwanda has 10.4M consumers

modernisation, which happened

and its membership in the

in just a few years, has left many

lives off the land and Rwanda

Common Market for Eastern

of them untapped.

earmarks over 10% of its budget for agriculture. Investments are

and Southern Africa (COMESA) and the East African Community (EAC), accounting for a total

expected in crop irrigation, on-

INVESTING IN

of $200bn in GDP, opens up promising markets where the

• Services

middle classes are growing at a

The tertiary sectorʼs growth

brisk pace.

in value (9.6% in 2010) reflects government efforts to spur

site tea and coffee processing and cultivation of exotic fruits as well as in agro-industry: dairy products, flour mills, biscuit factories, storage and handling, oils, leather and hides.

politiCS & sociEtY

POLITICS AND SOCIETY

HISTORY

A Nation-State The country has been uniﬁed since the 16th century

AN EXCEPTION IN AFRICA

1885

Rwanda was one of the last African countries incorporated into the European colonies

In the 16th century Rwanda was already a politically and culturally unified nation with a centralised administration and a king, the Mwami. Its borders encompassed areas that today are part of Tanzania, Uganda and the Democratic Republic of Congo (DRC). It was formed by a people in whom the Twas (descendants of the Pygmies), Hutus (farmers) and Tutsis (livestock breeders) comprised a single ethnic group and spoke the same language, Kinyarwanda. Rwanda was one of the last African countries incorporated into the European colonial system. In 1885 the Congress of Berlin defined RuandaUrundi (present-day Rwanda and Burundi). From 1900 the Catholic White Fathers, eclipsing Germanyʼs influence, established a sort of third power alongside the Mwami and the coloniser.

BELGIAN COLONISATION In 1916 German troops marched into the Belgian Congo, prompting Belgium to enter Rwanda. After the First World

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War the League of Nations entrusted the administration of Ruanda-Urundi to Brussels, with the mission of granting it statehood in the long-term. From 1923 to 1962 the Belgians turned the distinctions between Hutus and Tutsis into a system of government. In 1931 they had King Mutara III Rudahigwa require everybody to carry an ethnic identity card, instituting a formal separation between the communities. The basis for belonging to the Tutsi group was ownership of at least 10 head of livestock; everybody else was considered Hutu.

THE ARTIFICIAL HUTU-TUTSI DIVIDE In the 1950s the Belgian administration and the White Fathers exploited Hutu opposition to independence advocates, who had joined forces under the banner of the Rwandan National Union (UNAR). In 1956 the Mwami demanded the Belgiansʼ departure and statehood and the Party for the Emancipation of the Hutu People (Parmehutu) was founded. Its leader, Grégoire Kayibanda, opposed independence and preached “social

POLITICS AND SOCIETY HISTORY

revolution”. In March 1957 a document called Note on the Social Aspect of the Indigenous Racial Problem in Ruanda, better known as the Bahutusʼ Manifesto, imposed the artificial idea of two separate peoples, one of which was portrayed as the otherʼs historic oppressor. The first genocidal massacres took place in 1959, driving 300,000 Tutsis into exile.

The Republic of Rwanda was proclaimed on 28 January 1961 and Grégoire Kayibanda was elected president on 26 October. Rwanda became independent on 1 July 1962 in a context verging on civil war. Massacres in 1963, 1964 and 1973 drove tens of thousands of Tutsis into exile. On 5 July 1973 General Juvenal Habyarimana seized power in Kig ali. In 1975 he founded the National Revolutionary Movement for Development (MRND), which became the single party, and began forging closer ties with France. The political climate quickly worsened as Tutsi refugees who had fled the massacres organised an armed movement, the Rwandan Patriotic Front (FPR), on the other side of the Ugandan border.

INDEPENDENCE AND A SINGLE PARTY

DICTATORSHIP AND CIVIL WAR On 1 October 1990 the FPR launched its first offensive against Kigali. French troops intervened on the side of the regime. Talks began in 1992 and the following year the Arusha (Tanzania) Accords led to the formation of a coalition government including the MNRD and FPR. In November 1993 French soldiers left Rwanda and were replaced by the United Nations Assistance Mission for Rwanda (UNAMIR), in charge of overseeing implementation of the Arusha Accords. The Habyarimana regime eventually came round to the idea of sharing power, but Hutu extremists refused.

KEY FIGURES ◗ Area: 26,338 km

◗ Population: 10,7 million ◗ Population density: 407 inhabitants per km²

◗ Demographic growth: 2,9% ◗ Gross domestic product (PIB) : $5.4 billion ◗ Per capita GDP: $540

INVESTING RWANDA 2012

1962

On 1 July, Rwanda proclaimed independence

POLITICS AND SOCIETY HISTORY

They planned out the extermination of the Tutsi population before unleashing the genocide in April 1994. On 4 July 1994 the FPR took control of the capital. Officials fled and the

killing ended, but the country was battered. Eighteen years later, Rwanda has become for many an example of political stability and economic and social development. ■

With an average altitude of 1,000m, Rwanda has a temperate climate

THE “LAND OF A THOUSAND HILLS” Rwanda covers 26,338km2 (slightly smaller than Belgium) in the heart of the African continent just below the equator. The countryʼs terrain earned it the nickname “Land of a Thousand Hills”. The highest point is 4,507m at Mount Karisimbi in the north-westʼs volcanic range. The lowest (950m) is in the Rusizi Valley near the Congolese border. The central region, where Kigali is located (1,400m), features a series of plateaus with an average elevation of 2,000m. Rwanda has a temperate equatorial climate with two rainy seasons (100 to 200 days of precipitation a year): a long one from mid-February to mid-May and a short one from mid-September to mid-December. The elevation makes temperatures pleasant: 16 to 17° C in the volcano region, 18 to 21° C in the central area and 20 to 24° C in the lowest lands. The average temperature in Kigali is 19° C.

INVESTING RWANDA 2012

POLITICS AND SOCIETY HISTORY

Visoke 3 711 m

LC A VO

Karisimbi 4 507 m

GA N U Ruhengeri

ran

Mutumba 1 824 m

Bumbogo

ab arongo

C R E S T

- N I L E

Gitarama

Rwamagana

Nyarugenge

Lake Cyohoha North Akany aru

a ur

O C

Gikongoro

Ngenda

bar

Rusumo

aru

s izi

a g era

Lake Cyohoha (South)

Rwamiko

Lake Mpanga Lake Cyambwe

1 898 m

Lake Sake

Lake Rweru

o og

BURUNDI

Butare a

Kayonza

Lake Mugesera

Ruk

Lake Ihema Muhazi

Kibungo

Kigoma

Kaduha

2 768 m

Altitude in metres Over 2 500 1 900 to 2 000

Kigembe

1 500 to 1 900

BURUNDI

900 to 1 500 Volcano 0

50 km

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Marshland

Ru h w

KIGALI

Kanazi

Birambo

Mudasomwa Nyakabuye

Lake Muhazi

ongo

Cyangugu Cyimbogo

Rutongo

Kagano

Lake Kivumba

Lake Nasho

Ijwi Island

Tare

Ny ab ar

Kivumu Mabanza

Gitesi

Lake Mihindi

Gabiro

Lake Hago

go on

Kibuye

Ngarama

Byumba

Kayenzi

Ramba

Muhororo 1 692 m

2 647 m

Kabaya

KIVU

Lake Rwanyakizinga

Gabiro 1 770 m

Lake Ruhondo

Mt Muhungwe 2 920 m

Gisenyi

S NOE Lake Bulera

Nyakirama

Muvumba Kidaho

R BI

LAKE

Sabyinyo 3 674 m

DEMOCRATIC REPUBLIC OF CONGO (DRC)

TANZANIA

Umutara

Gahinga 3 474 m

Akagera

Ki zin ga

UGANDA Muhabura 4 127 m

Muvum ba

Akagera

POLITICS AND SOCIETY

POPULATION

Africaʼs highest population density

42% of the population are under 15 years of age

The number of inhabitants has doubled in 20 years

Rwandaʼs literacy rate exceeds 65%

THIRTEEN MILLION PEOPLE IN 2025 In 2011 Rwandaʼs population stood at 10.7 million, 80% of whom live in the countryside; 42.4% are under 15 years old. There were approximately three million people in 1962 and five million in 1995, after the genocide of the Tutsis. Rwandaʼs 407 inhabitants per km² make

INVESTING RWANDA 2012

it Africaʼs most densely-populated country. Based on a 2.9% growth rate, officials forecast 13 million inhabitants by 2025. According to 2006 data (the latest figures from the National Institute of Statistics), the biggest cities are Kigali (965,000), Ruhengeri (110,000), Gisenyi (106,000) and Butare (103,000).

POLITICS AND SOCIETY POPULATION

A SHIFTING LANGUAGE BALANCE Rwanda has three official languages: Kinyarwanda, French and English. Everybody speaks Kinyarwanda on a daily basis. The use of French is steadily declining. Nothing seems able to stem the growth of English, even though Rwanda was a founding member of the Organisation Internationale de la Francophonie (OIF) and participates in all of its summits. English is the working language of the two biggest organisations to which Rwanda belongs: the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). It is also the language of new technologies, which young Rwandans embrace. Another language, Swahili, is still used, mainly in Muslim communities.

WORLD PARITY CHAMPION As soon as Rwanda began rebuilding after the 1994 genocide, the decision was taken to tap the underused potential women represent at every level of the country.

The 2003 Constitution even set the minimum proportion of women in administrative jobs at 30%. In 2011 they accounted for 53.6% of the National Assembly, a world record, followed by Angola (37%), Mozambique (34.8%) and South Africa (33%). The average proportion of women in the worldʼs legislative bodies is 18.3% according to a 2008 Interparliamentary Union study. Just 24 countries, seven of which are in Africa, exceed the goal of at least 30% set by the United Nations.

407

people per km2

RELIGION Colonisation spurred the growth of Catholicism and gave it the leading role it has today: nearly 56.5% of Rwandans are Catholic, while 26% are Protestants or members of evangelical or Pentecostal churches. In cities, where there are communities of Indo-Pakistani shopkeepers and businessmen, 4.6% of the population practice a moderate form of Sunni Islam. Every big city has a mosque while Kigali has a dozen. ■

MAIN HUMAN INDICATORS ◗ Life expectancy: 52

◗ Population distribution by age:

◗ Birth rate: 36.67 per 1,000 ◗ Fertility index: 5.25 children/woman

0-14 years

42,4%

15-59 years 60+ years

53,8% 3,8%

INVESTING RWANDA 2012

Data: UNDP and NISR

◗ Literacy rate: 65% ◗ Proportion of women Ministers: 38% Senators: 35% Deputies: 56% Governors: 40% Judges: 36%

POLITICS AND SOCIETY

POLITICS

A presidential system

Parties and civil society are represented in Parliament

The National Assembly counts a record 53.6% of women

14,985 villages fall under the ﬁve administrative units

THE 2003 CONSTITUTION Rwandaʼs 2003 Constitution established an independent, sovereign, democratic, social and secular republic. Executive power is in the hands of the president, who consults with the leaders of the political parties in the government

INVESTING RWANDA 2012

before appointing the prime minister and ministers. A parliament including a Chamber of Deputies and a Senate wields legislative power.

SHARED LEGISLATIVE POWER The Chamber of Deputies has 80 members elected to five-year

POLITICS AND SOCIETY POLITICS

terms: 53 belong to political parties, 24 are women elected by special bodies, two are elected by the National Youth Council and one by the Federation of Associations of the Disabled. According to the Constitution, the party that wins legislative elections may not claim more than half the ministerial portfolios. The Senate has 26 members elected to eight-year terms: 12 are from the provinces and Kigali, eight are appointed by the president, named by the Forum of Political Formations, one by public institutions of higher learning and one by private institutions of higher learning.

A REBUILT JUDICIAL SYSTEM The judicial branch is independent and enjoys administrative and financial autonomy. The county courts, Supreme Court and High Court of the Republic are ordinary jurisdictions. Special jurisdictions are the military courts as well as traditional community tribunals called gacaca, which have judged crimes of genocide since late 2007. Capital punishment was abolished on 26 July 2007 and there are no exceptional tribunals. Commercial courts were set up in May 2008.

THE OMBUDSMAN AND THE NATIONAL COUNCIL OF DIALOGUE Citizens who consider themselves victims of an infraction or an abuse of power on the part of a public or private body may have recourse to the ombudsman, who heads a staff of 36 people and four mobile units that can travel round the country investigating complaints, which have gradually declined from 7,000 in 2004 to fewer

than 1,000 a year. The National Council of Dialogue, made up of the president of the Republic and five representatives of local administration councils, meets once a year with the cabinet and Parliament, with the provincial governors and mayor of Kigali in attendance. It deals with the state of the nation and sends its recommendations to the institutions concerned.

POLITICAL PARTIES ARE STILL YOUNG Rwanda has nine political parties: the Rwandan Patriotic Front (FPR), SocialDemocratic Party (PSD), Liberal Party (PL), Christian Democratic Party (PDC), Ideal Democratic Party (PDI), Rwandan Socialist Party (PSR), Democratic Union of the Rwandan People (UDPR), Party for Progress and Concord (PPC) and, the latest one, the Imberakuri Social Party. With the exception of the FPR, all of these parties were created after 1994. They lack experience, manpower and money. The 2003 Constitution set up the Political Parties始 Consultation Forum, which encourages them to meet and dialogue with each other. Training, especially by the deans of foreign universities, as well as material support, for example from the European Union, are gradually strengthening their capacities.

HIGHLY DECENTRALISED ADMINISTRATION Since 1 January 2006 Rwanda has been organised into five administrative units: four provinces (North, South, East and West) and the city of Kigali. This division has been designed with an eye towards broad decentralisation, considered essential

INVESTING RWANDA 2012

POLITICS AND SOCIETY POLITICS

The National Assembly: three of the 80 deputies are elected by young people and the disabled

for reconciliation and governance. When it entered into force, the state tripled civil service salaries to entice young graduates to settle outside of Kigali. Each province is divided into districts (30 in all) administered by mayors and including sectors (a total of 416) headed by coordinators.

Each sector is composed of cells (2,147 in all, including 14,985 villages). An executive committee assisted by a local council runs each local administration entity down to the village level. Their members are elected to five-year terms by universal suffrage. ■

PRESIDENT PAUL KAGAME Rwandaʼs President, Paul Kagame, was born in Gitarama prefecture in October 1957. His family ﬂed the anti-Tutsi pogroms in 1961 and he grew up in a refugee camp in Uganda. In October 1990 he became head of the Rwandan Patriotic Front (FPR) and in April 1994 led the oﬀensive against Kigali which, after cap© V. Fournier / JA

turing the capital on 4 July, helped put an end to the genocide. In April 2000 the National Assembly appointed him to replace the president, Pastor Bizimugu, who resigned. In August 2003, during Rwandaʼs ﬁrst free and democratic election, he was elected by universal suﬀrage with 95% of the ballots cast and a 93% Paul Kagame, President of the Republic of Rwanda

voter turnout. He was re-elected on 9 August 2010. President Kagame has big ambitions for Rwanda, which he runs like a company.

INVESTING RWANDA 2012

FACTFILE

POLITICS

THE CONSTITUTION of the Republic of Rwanda was approved by referendum on 26 May 2003 and promulgated on 4 June. It states that “all the power derives from the people. No group of people or individual can vest in themselves the exercise of power.” Rwandaʼs ﬁrst presidential and legislative elections took place in August and September 2003. THE FLAG , was adopted in 2001. It features three horizontal stripes: green stands for hope and prosperity, yellow for economic development and blue for happiness and peace. The sunburst in the blue stripe symbolises unity, transparency and the struggle against ignorance. THE NATIONAL MOTTO is Ubumwe, Umurimo, Gukunda Igihugu (unity, work, patriotism). THE PRESIDENT is the head of state and government. He or she is elected by direct universal suﬀrage to a seven-year term renewable once. Executive power is vested in the president and the cabinet; they and the two houses of Parliament, the Senate and the Chamber of Deputies, share legislative power. THE PARLIAMENT is made up of two houses, the Chamber of Deputies and the Senate. The

constitution encourages women and minorities to enter politics by setting up a quota system that sets 24 seats aside for women and three for young people and people with disabilities. ◗ The Chamber of Deputies has 80 members, of whom 53 are elected to ﬁve-year terms based on the proportional system (with a quorum of 5%), 24 by the provincial councils, two by the National Youth Council and one by the Federation of Associations of the Disabled. ◗ The Senate has 26 members serving eight-year terms: 12 are elected by the provincial councils, four by the Forum of Political Organisations and two by the universities. The president appoints eight senators to ensure the representation of marginalised communities. Former presidents may also request a seat.

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FINANCE AND ECONOMIC PLANNING Tel.: (+250) 252 575 113 Fax : (+250) 252 577 581 www.minecoﬁn.gov.rw

●

INFRASTRUCTURE Tel. : (+250) 252 585 503 Fax: (+250) 252 585 755 www.mininfra.gov.rw

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FOREIGN AFFAIRS AND COOPERATION Tel.: (+250) 252 575 339 Fax: (+250) 252 572 904 www.minaﬀet.gov.rw AGRICULTURE AND ANIMAL RESOURCES Tel.: (+250) 252 585 008 Fax: (+250) 252 585 057 www.minagri.gov.rw

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TRADE & INDUSTRY Tel.: (+250) 252 574 725 Fax: (+250) 252 575 465 www.minicom.gov.rw EDUCATION Tel.: (+250) 252 583 051 Fax: (+250) 252 582 161 www.mineduc.gov.rw

NATURAL RESOURCES (Forestry, environment and mining) Tel.: (+250) 252 582 628 Fax: (+250) 252 582 629 www.minela.gov.rw HEALTH Tel.: (+250) 252 577 458 Fax: (+250) 252 576 853 www.moh.gov.rw

MAIN GOVERNMENT AGENCIES

MAIN MINISTRIES ●

JUSTICE Tel.: (+250) 252 586 561 Fax: (+250) 252 586 509 www.minijust.gov.rw

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RWANDA AGRICULTURAL DEVELOPMENT AUTHORITY (RADA) Tel.: (+250) 55 102 618 www.rada.gov.rw RWANDA BUREAU OF STANDARDS (All areas) Tel.: (+250) 252 586 103 Fax: (+250) 252 583 305 www.rwanda-standards.org RWANDA DEVELOPMENT BOARD (RDB) (Promotion of investments) Tel.: (+250) 252 585 179 Fax: (+250) 252 585 223 www.rwanda-standards.org RWANDA PUBLIC PROCUREMENT AUTHORITY Tel.: (+250) 252 501 403 Fax: (+250) 252 501 402 www.rppa.gov.rw RWANDA REVENUE AUTHORITY (Public treasury and customs) Tel.: (+250) 252 595 510 Fax: (+250) 252 578 488 www.rra.gov.rw

POLITICS AND SOCIETY

INTERNATIONAL

Rwanda in the world Embracing its neighbours

AN ACTIVE MEMBER OF THE AFRICAN UNION

Oﬃcial Presidential visit to China.

LAND LOCKED COUNTRY

300 MILLION

people - a market with Rwanda at the centre

Rwanda shares a common border with four countries: Burundi (8.3m people, capital Bujumbura); Uganda (34.9m, Kampala); Tanzania (41.9m, Dodoma) and the Democratic Republic of Congo (66m, Kinshasa). It is strengthening economic and security ties with all of them ̶ an essential precondition for development. Rwanda is a landlocked country: Kigali lies 1,600km from the port of Mombasa in Kenya and 1,300km from that of Dar es Salaam in Tanzania.

INVESTING RWANDA 2012

Rwanda is one of the most active members of the African Union (AU), especially in the areas of peacekeeping and conflict prevention. It also ranks amongst the biggest contributors of troops for missions to monitor truces or protect civilian populations. As early as 2004 Rwandan soldiers took part in the African Union Mission in Sudan (AMIS). Today they account for nearly 2,000 of the 7,000 men in the United Nations and African Union Mission in Darfur (UNAMID). Rwanda is willing to supply an additional battalion for security missions in South Sudan, which has been independent since July 2011. A contingent of Rwandan police officers joined the UN Stabilisation Mission in Haiti (MINUSTAH) in March 2011.

FRANCOPHONIE AND COMMONWEALTH In addition to the main international organisations such as the United Nations and its various agencies, Rwanda belongs to the Organisation Internationale de la Francophonie (OIF), of which it is a founding member. Despite strained relations between France and Rwanda

POLITICS AND SOCIETY INTERNATIONAL

after the 1994 genocide, Kigali has taken part in all the groupʼs summits except that of 1995. In 2007 it was admitted to the Commonwealth during the organisationʼs summit in Kampala, Uganda, becoming a member of a group of countries with 1.7bn people ̶ nearly a third of the worldʼs population.

RELATIONS WITH FRANCE

$200 BILLION the combined GDP of COMESAʼs 19 countries

Bilingualism opens Rwanda up to the French- and English-speaking worlds but its relations with France deteriorated after the 1994 genocide. Both sides have made efforts to forge closer ties since diplomatic relations were broken off in 2006. French president Nicolas Sarkozy announced the restoration of diplomatic relations in November 2009 before travelling to Kigali in February 2010. Rwandan president Paul Kagameʼs September 2011 trip to Paris looked like a decisive step forward on the road to normalisation between the two countries.

OFTEN HELD UP AS AN EXAMPLE In matters of cooperation Rwanda has strong support from the international community both in the framework of bilateral ties and in relations with most of the major institutions, such as the IMF, World Bank and various Western, Asian, Arab and African development funds. The consideration it generally enjoys stems from its reputation as a sober, uncorrupted country entirely focusing on its economic and social development, like South Korea, Malaysia or Singapore did in past decades. In many respects ̶ economic reforms, absence of corruption, etc. ̶ Rwanda is often held up as an example. In 2010 UN Secretary-General Ban Ki-Moon even asked President Kagame to head the colossal “Millennium Development Goals” programme with Spanish prime minister José Luis Zapatero. ■

THE COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA ON THE ROAD TO UNION Rwanda belongs to three regional economic organisations: the Common Market for Eastern and Southern Africa (COMESA), Economic Community of the Great Lakes Countries (ECGLC) and East African Community (EAC), which has huge ambitions that several international diplomats believe will come to fruition. Whereas COMESA (19 countries, 300 million people) is a strictly

INVESTING RWANDA 2012

economic organisation, the EAC (five countries, 120 million people) aims to become a political federation patterned on the European Union. The first step in achieving that goal was a customs union in 2007. A common market was formed in 2010. A monetary union is planned for 2012 before the Community becomes a political federation in 2015 ̶ a first on the African continent.

FACTFILE REGIONAL ORGANISATIONS Rwanda belongs to three regional economic organisations: the Common Market for Eastern and Southern Africa (COMESA), Economic Community of the Great Lakes Countries (ECGLC) and East African Community (EAC). Comesa, which was founded in 1994, includes 19 countries with a combined GDP exceeding $200bn and a population of 300 million. The headquarters is in Lusaka, Zambia. Gisenyi in Rwanda hosts the headquarters of the ECGLC, created in 1976, which includes Rwanda, Burundi and the DRC (see below). Rwanda and Burundi joined the EAC, which Kenya, Uganda and Tanzania set up in 1999. It has 120 million people and a combined GDP of approximately $40bn.

FINANCIAL INSTITUTIONS Rwanda is a member of international and regional economic and ﬁnancial institutions such as the International Monetary Fund (IMF) and the World Bank. The African Development Bank (AfDB) and Arab Bank for Economic Development in Africa (BADEA) ﬁnance many projects in the country.

INTERNATIONAL RELATIONS Rwanda participates in all the UNʼs specialised institutions ̶ UNESCO, UNDP, UNICEF, WHO, FAO, etc. ̶ and belongs to the group of ACP countries (Africa-CaribbeanPacific), which has cooperation agreements with the European Union.

INTERNATIONAL UNITED NATIONS AGENCIES ●

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FAO (Food and agriculture) Tel.: (+250) 252 573 541 Fax: (+250) 252 573 527 WORLD HEALTH ORGANISATION Tel.: (+250) 252 576 862 Fax: (+250) 252 574 534 UNDP (Development) Tel.: (+250) 252 578 497 Fax: (+250) 252 576 263

EMBASSIES ●

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WORLD FOOD PROGRAMME (WFP) Tel.: (+250) 252 587 611 Fax: (+250) 252 587 618 UNESCO (Education, science and culture) Tel.: (+250) 252 578 847 Fax: (+250) 252 573 024 UNICEF (Children) Tel.: (+250) 252 573 209 Fax: (+250) 252 511 760 www.saembassy-kigali.org.rw

●

SOUTH AFRICA Tel.: (+250) 252 583 185 Fax: (+250) 252 511 760 www.saembassy-kigali.org.rw GERMANY Tel.: (+250) 252 575 222 www.konsulate.de/rwanda_e.php BELGIUM Tel.: (+250) 252 575 551 www.diplomatie.be/kigali/default.asp THE UNITED STATES Tel.: (+250) 252 505 601 Fax: (+250) 252 572 128 www.usembkigali.net FRANCE Tel.: (+250) 252 551 800 Fax: (+250) 252 551 820 Email : ambafrance.kigali-amba@ diplomatie.gouv.fr THE NETHERLANDS Tel.: (+250) 252 584 711 Fax: (+250) 252 510 603 www.nedsembassyrwanda.org THE UNITED KINGDOM Tel.: (+250) 252 584 940 Fax: (+250) 252 510 588 www.britishembassykigali.org.rw RUSSIA Tel.: (+250) 252 575 286 Fax: (+250) 252 503 322 www.russiaembassy.biz/rwanda-kigali

BOOSTING THE GREAT LAKES REGIONʼS ECONOMY The ECGLC has hardly been

cification. Hope also lies with

active until now but that may change with development projects based on the exploitation of Lake Kivuʼs methane gas and

the hydroelectric power plant in Bukavu, DRC; the Institute of Agronomic and Zootechnical Research in Gitega, Rwan-

the international communityʼs involvement in the regionʼs pa-

da; and a development bank in Goma, DRC.

ECONOMY & BUSINESS ENVIRONMENT

ECONOMY AND BUSINESS ENVIRONMENT

OUTLOOK

Development strategy Economic performance is a long-term vision

Agriculture accounts for 34% of GDP

projected economic growth rate in 2011 and 2012

STEADY GROWTH

PRIMARY SECTOR

Rwanda始s economy is growing at a steady pace despite the slump. The impact of the global crisis was felt in 2009 but even with rising food and oil prices expansion resumed in 2010 and 2011. The 2011 and 2012 growth rate is expected to be 7%, driven by industry and services, which have been steadily expanding by approximately 10% each.

Agriculture, which accounts for 34% of GDP, expanded by 5% in 2010 thanks to good weather and the growth of various government programmes, in particular those that supply farmers with fertilizer and improved seed stock. All the results are up, whether for subsistence or export crops.

INVESTING RWANDA 2012

ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

In 2010 the secondary sector, which makes up 14% of GDP, grew by 8.4%, fuelled mainly by construction and public works (52% of the total), up by 8.8% in 2010. A big boost came from major road-building programmes and easier credit terms. In 2010 manufacturing expanded by 9.2%, with furniture (+43.7%), non-metallic ores (+10.7%) and food (+9.3%) leading the way. Mining and quarrying, which are undergoing restructuring (see p. 36), declined by 10.8% in value and 10.3% in volume. Extracted amounts fell from 6,093tn in 2009 to 5,466 in 2010: cassiterite (-9.3%), wolframite (-3.5%) and colombite-tantalite (-21.2%). Power and water production rose by 13.2% and 22.8%, respectively.

THE TERTIARY SECTOR The service sector accounts for 46% of GDP and grew by 9.6% in 2010, stoked by finance (+23.6%), health care (+15.8%) and public administration (+14.9%). Easier credit terms for businesses played a key role in this trend.

VISION 2020 Rwanda, a credible leader both at home and abroad, has acquired the tools for its economic and social development. The country has implemented a sweeping national project, “Vision 2020”, which has set the goal of raising it to the level of an intermediate-income country. Benefiting from well-trained professionals and skilled managers, Rwanda will have a knowledge- and service-based economy by 2020. To achieve that aim the government is focusing on boosting education, increasing technical and scientific

SECONDARY SECTOR

In 20 years time, the economy will be knowlege- and services-based training, developing the private sector, strengthening skills and giving domestic and foreign investments priority.

ECONOMIC DEVELOPMENT Rwanda has implemented the Economic Development and Poverty Reduction Strategy (EDPRS) to achieve the Vision 2020 goals. Intended to run until 2013, it is made up of three flagship programmes. The first aims for sustainable growth to fuel jobs and exports; the second, Vision 2020 Umurenge, enhances social actions; the third seeks to continuously perfect the principles and methods of good governance.

SUPPORT FROM THE IMF... Rwanda and the IMF have developed a three-year Policy Support Instrument (PSI) in the framework of its economic and social development strategy. It started in June 2010 and replaced the

INVESTING RWANDA 2012

ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

framework that integrates reforms in consultation with the IMF. Its implementation means the country is credible and capable of carrying out quality structural reforms. In addition to Rwanda, six African countries ̶ Cape Verde, Mozambique, Nigeria, Uganda, Senegal and Tanzania ̶ developed a PSI in 2011.

Secondary sector growth is fuelled by construction

Poverty Reduction and Growth Facility (PRGF) after Rwanda decided to focus on structural spending instead of direct financial aid in the fight against poverty. The PSI defines a macroeconomic

46%

the service sector contribution to GDP

... AND INTERNATIONAL INSTITUTIONS The World Bank and other international lenders also cooperate with Rwanda. The biggest lenders are, in descending order, the World Bank, European Union, Arab Bank for Economic Development (BADEA) and United Kingdom through its Department for International Development (DFID). In 2010 multilateral aid to Rwanda stood at $651.2M, a 3.6% increase in one year, and bilateral aid reached $126.26M (+16%). ■

THE VISION 2020 UMURENGE PROGRAMME Designed to tackle extreme poverty, Vision 2020 Umurenge is one of the three ﬂagship programmes of the Economic Development and Poverty Reduction Strategy (EDPRS). It takes the shape of highly decentralised actions (Umurenge designates the administrative cell; the country has 2,147 cells) divided into three categories: credit access facilitation, direct ﬁnancial support and creation of labour-intensive activities. Rwanda has 30 districts, so

INVESTING RWANDA 2012

the programme started out by taking inventory of the needs in each districtʼs poorest cell. Then solutions such as ﬁnancing the education of children over nine years old to prepare them for secondary school, promoting free mutual health insurance that beneﬁts all Rwandans, and training for adults (savings, management, access to microcredit, etc.) were implemented. The Vision 2020 Umurenge programme managers add 30 new cells each year.

FACTFILE

ECONOMY STRUCTURE OF GDP

15% 10% 5% 0%

6.1 %

11.5 % 7.7 %

7.5 %

2007

2008

2009

2010

2011

Sources : MINECOFIN, RDB

STEADY GROWTH

INFLATION UNDER CONTROL 15% 10%

15.4%

5% 0%

5,5% 2008

5,8%

2009

2010

2011

2012

Sources : MINECOFIN, RDB

Agriculture 34%

20%

Industry 14% Services 46% Other 6% Agriculture employs 72% of the population.

Rising food and fuel prices account for higher inﬂation in 2008.

STRONG SERVICE SECTOR GROWTH (in billion of RWF) CA 2010

GROWTH OVER FIVE YEARS

Commerce (wholesale and retail)

292.2

42.5%

Hotels and restaurants

44.7

10.9%

Transport, logistics and communication

197.0

68.9%

Finance and insurance

66.1

34.6%

Real estate and business services

161.2

42.4%

Public administration

116.9

34.9%

Education

126.3

65.9%

Health

38.9

70.6%

Other (in particular, person-to-person services)

27.2

18.3%

1, 075.6

49.3 %

TOTAL

Revenues and donations

(in billion of RWF)

2007

2008

2009

2010

472.5

660.8

726.7

828,3

of which taxes

237.8

328.7

362.8

412,8

Spending and borrowing

491.4

649.7

750.8

879,4

of which spending

499.5

636.2

716.3

851,1

Current deﬁcit

- 61.1

12.5

- 45.04

- 70,1

PARITY OF THE RWANDAN FRANC 1 euro = 862,980 RWF (1 000 RWF = €1.16) 1 dollar = 599,500 RWF (1000 RWF = $1.67)

In 2010 the rise of salaries in the public and private sectors, as well as of the number of taxpayers, oﬀset falling customs duties, which are now standardised throughout the East African Community (EAC). The Rwanda Revenue Authority (RRA) has taken many steps to improve tax collection, which makes up 12.6% of GDP.

(August 2011)

STATE FINANCIAL OPERATIONS

ECONOMY AND BUSINESS ENVIRONMENT

FOREIGN TRADE

Boosting exports Steps to close the trade deﬁcit

50%

of total exports is made up of food products

Tea exports increase in volume and value every year

A KEY TO DEVELOPMENT Rwanda is moving to improve its international trade, in particular with neighbouring countries, and to close its trade deficit, especially in capital goods and energy products, which is caused by its development needs. It is counting on its steadily-growing means of transport and membership in the East African Community (EAC) and Common

INVESTING RWANDA 2012

Market for Eastern and Southern Africa (COMESA) to reach those goals.

DIVERSIFYING EXPORTS Coffee, tea, ore (cassiterite, colombitetantalite or coltan and wolframite), leather, hides and pyrethrum are Rwandaʼs main exports. Food products, which account for 50% of the total, are at the mercy of weather

ECONOMY AND BUSINESS ENVIRONMENT FOREIGN TRADE

and international market tensions. Compared to the leading producer countries, Rwanda does not export enough to have an influence on prices. The government is consequently trying to diversify exports, improve quality and increase value-added opportunities through local processing.

Coffee, tea and minerals, which are traditional products, accounted for 60.2% of export revenues in 2010. Tea sales continued to climb in value (15.2%) and volume (15.5%), thanks in particular to international price stability. Coffee exports followed the same trend, rising by 50.4% in value and 21.6% in volume in one year. Rising prices on world markets benefited ore exports, which grew by 22.4% in value despite a 10.3% drop in volume for the second consecutive year. Rising cassiterite prices, which increased by 62.3% during the period, account for most of that growth. Other exports include livestock, beef, wheat flour, beans, hides, leather and pyrethrum.

COFFEE, TEA AND MINERALS

The improved quality of Rwandan coﬀee has open up new markets

turning Rwanda into an intermediateincome country. Eventually, each of the countryʼs 30 districts will have a SEZ intended to encourage the creation of companies active in the areas of commerce, logistics, agroindustry, storage, information and communication technologies, building materials and services, all of which are considered strategic.

RISING IMPORTS

THE KIGALI SEZ

Rwandaʼs imports are climbing at a steady pace, driven by consumer goods (30% in 2010), energy products (3%) and intermediate goods (18%). In 2010 the rise was limited in value (+8.7%) because of falling consumer goods prices (-7%) and intermediate goods (-2.51%) offset higher prices on capital goods (+18%) and energy products (+15%).

The first SEZ started up near Kigali international airport in 2011. At the gateway to the capital and the crossroads of the main north-south and east-west trade routes, it is an ideal platform for access to regional markets, in particular the EAC and COMESA. It stretches out over 260 hectares, of which 70 were operational when it opened, with buildings, telecommunications infrastructure (fibre optic link), utilities and waste treatment facilities. Nearly 60% of the companies intending to operate there were registered when it opened.

SPECIAL ECONOMIC ZONES (SEZ) The government is setting up Special Economic Zones (SEZ) to achieve the Vision 2020 programmeʼs goal of

INVESTING RWANDA 2012

ECONOMY AND BUSINESS ENVIRONMENT FOREIGN TRADE

COMMERCE AND INDUSTRY

(biscuits, sweets, alcohol and spices) as well as tea, coffee and ore exporters. There are also Chinese television and mobile phone assembly plants, a paint manufacturer, a Ugandan sunflower oil company and a Libyan-Rwandan oil company (SP Petroleum Rwanda). ■

Half of the 16 warehouses planned at the Kigali SEZ will accommodate import-export products, the other half light industries. Most of the importers-exporters are companies trading in fast-moving consumer goods

Coﬀee washing station.

special economic zones by the year 2020

BOOSTING VALUE-ADDED Rwandaʼs high level of tea and coﬀee exports owes much to good weather, but it is also based on steady demand and technical improvements (maintenance and modernisation) to the production units. Better coﬀee quality has led not only to closer ties with Starbucks, but also to the penetration of new markets in China, Japan, Germany

INVESTING RWANDA 2012

and Australia. The same factors came into play for tea, which has risen to the level of upscale world markets. At the ﬁrst African Tea Convention, which took place in Mombasa, Kenya in 2011, two Rwandan companies (one with a facility in Gisovu, the other in Kitabi) were ranked ﬁrst and third on the continent.

FACTFILE

FOREIGN TRADE

● China 15.6%

● Switzerland 22.7%

● Uganda 12% ● Kenya 16.7%

● China 7.4%

● Kenya 9.6%

● Belgium 11.2%

● Hong-Kong 8.1%

● India 5.5%

MAIN EXPORTS

MAIN IMPORTS ● Consumer goods 27.2%

● Other 3%

● Other*

● Capital goods* 28.6%

(of which food, 9.1%)

● Japan 5.6%

27.4% ● Tea 25%

● Wolframite 3 % ● Coltan 10.5% ● Energy 16.5%

● Intermediate goods 24.7%

● Cassiterite 14.8%

* the ﬁrst three: motor vehicles, telecom equipment and building materials

TRADE BALANCE

Exports of which coﬀee and tea Imports of which energy Balance

* of which leather and hides (1% of the total) and pyrethrum (0.3%)

(in million of dollars)

2007

2008

2009

2010

176.8

267.7

192.6

297.3

375.6

67.2

92,0

85.6

111.8

138.9

581.2

880.7

960.7

1 084

1 400.5

87.2

121.1

135.7

158.2

231.8

- 404.4

- 613

- 768.1

- 786.7

- 1,024.9

VOLUME

REVENUE

(TONNES)

(MILLION OF DOLLARDS)

2007

13 673

2008 2009

VOLUME

USEFUL ADDRESSES ●

●

TEA

COFFEE EXPORTATIONS

● Coffee 19.3%

REVENUE

(TONNES)

(MILLION OF DOLLARDS)

35.7

18 375

31.5

19 710

46.9

19 097

40.5

14 992

37.3

18 689

48.2

RWANDA AGRICULTURAL DEVELOPMENT AUTHORITY (RADA) For an inﬂow import license (free) Tel.: (+250) 252 55 102 618 www.rada.gov.rw RWANDA ANIMAL RESOURCES DEVELOPMENT AUTHORITY For a license to import animals, leather and hides (free) Tel.: (+250) 252 55 109 814 www.rarda.gov.rw

Source: 2010 National Bank of Rwanda

● Others 12.5%

Source: 2010 National Bank of Rwanda

MAIN SUPPLIERS

MAIN CUSTOMERS

ECONOMY AND BUSINESS ENVIRONMENT

AGRICULTURAL RESOURCES

Food security is assured Rwanda leads Africa in agricultural development

"THE COUNTRYʼS BACKBONE"

80%

of the population works in agriculture

That is how Rwandaʼs prime minister described agriculture, from which nearly 80% of the population earn their living, in a 2011 report. The government is pursuing a long-term policy to make this sector not just one of its top foreign currency sources but also the main lever to lift people out of poverty. Boosting smallholdersʼ revenues, improving the use of natural resources, and encouraging private initiative in production and the quest for quality are the main goals. Earmarking over 10% of its budget for agriculture in 2010, Rwanda goes beyond the

INVESTING RWANDA 2012

recommendations of the New Partnership for Africaʼs Development (NEPAD) and positions itself as the leader of agricultural development in Africa. Whatʼs more, it guarantees its food security (see chart) and draws rising revenues from a sector that accounted for 45% of its 2010 export income.

FAR-REACHING GOALS Rwanda faces many challenges, starting with the lack of land in a country where the average plot size is 0.7 ha. Areas suitable for cultivation are unevenly distributed, from 78% in

ECONOMY AND BUSINESS ENVIRONMENT AGRICULTURAL RESOURCES

the northʼs Rubavu district to 27% in that of Nyaguru in the south. To make matters worse, the hilly terrain leaves soil vulnerable to erosion and the climate is increasingly unpredictable. Outside factors such as the cost of petroleum products have a growing influence on prices. Smallholders find it hard to get indispensable loans and often live far from production areas and markets. Yet the goals that the Ministry of Agriculture and Animal Resources (MINAGRI) set for 2012 have been achieved a year ahead of schedule: 17,420 ha of swampy land have been drained; 25% of rural households use chemical fertilisers; 25% use organic fertilisers; 34% have access to improved seed stocks; and 47% of livestock is intensively raised (the target is 60%).

a certain extent, limitations imposed by the terrain. Comparable efforts are under way in the areas of transporting, handling and storing agricultural products: two large storage sites have just been built, one for 10,000tn of grain at the Kigali Special Economic Zone (SEZ), the other in Musenyi (North). Agricultural cooperatives are building others, such as in Bugesera (East). Domestic crops ‒ potatoes, rice, wheat, corn and beans ‒ are deemed priorities and output increases from one year to the next. Swampland has been drained to grow rice, the consumption of which soared by 50% in 2010 alone. The number of processing units is on the rise, offering investors sound opportunities.

TARGETED PROGRAMMES MAJOR AGRICULTURAL PROJECTS Work has begun on irrigating 100,000 ha by 2017. The goal: to limit weather-related risks and overcome, to

The implementation of government action programmes has made a major contribution to the growth of agriculture (+4.9% in 2010). For

INVESTING RWANDA 2012

ECONOMY AND BUSINESS ENVIRONMENT AGRICULTURAL RESOURCES

example, the Crop Intensification Programme (CIP), under way since 2007, channels over $20M a year into upgrading soils and supplying farmers with fertilisers and improved seed stocks. It has helped boost grain output (wheat and corn) fourfold in three years. Moreover, a 2010 decree requires all public institutions (schools, prisons, hospitals, etc.) to buy at least 40% of their food from agricultural cooperatives. The trend towards eliminating middlemen, part of the fight against poverty, is a vigorous boost to increasing farmersʼ incomes. ■

4.9%

growth in agriculture in 2010

COVERAGE OF NUTRITIONAL NEEDS (based on 2,100kcal, 59g of protein and 40g of fat per adult per day)

RWANDA

1990

2001

2010

Kilocalories

83%

65%

131%

Protein

71%

60%

116%

Fat

17%

60%

Source: Food Security Research Project Data (FSRP) and MINAGRI

THE TEA INDUSTRY Rwanda had 10 tea preparation units in 2011. Eight are managed by private companies and two by the Oﬃce of Rwandan Industrial Crops (OCIR-Thé), a semi-public body in charge of regulating the sector and promoting it internationally. OCIR runs the plants in Mulindi (North province) and Shagasha (West province). Sowarthé in Kinihira in the North province (3,500tn/a) and Rwanda

INVESTING RWANDA 2012

Mountain Tea at Nyabihu and Rubaya (North province, 3,000tn/a) were privatised in August 2006. Next come Gisovu, 40km from Kibuye, West province (1,700tn/a), which Borelli Tea Holdings, a subsidiary of MacLeod Russels India, the worldʼs leading tea producer, bought in February 2011, and Gisakura (West), Mata and Kitabi (South), Pfunda (North) and Nishili-Kivu (West).

AGRICULTURAL RESOURCES

COFFEE

PYRETHRUM

MILK

A changing industry

High value-added

High consumption

Coﬀee exports soared from $37.3M in 2009 to $56M in 2010 (+50%), with the most elaborate grade (fully washed) accounting for 28% of those ﬁgures. The industry is continuing to invest in plantations and processing with the goal of boosting revenues by 30% a year.

The Société de Pyrèthre au Rwanda (Sopyrwa) processes and sells pyrethrum, a plant used to make insecticides. The process was improved in 2007, making this a reﬁned product. Sales abroad stood at $1.41M in 2010, more than twice as much as in 2009 ($0.64M).

TEA

LIVESTOCK AND MEAT

Annual milk consumption climbed from 22 litres per person in 2008 to 38 litres in 2010. National output rose steadily to over 40m litres in 2011, which is likely to spur the growth of a nascent dairy-product industry: just 20% of production is industrially processed by companies such as Inyange Industries (Maska and Kigali) or Rubirizi Dairy (Kigali).

New impetus

Production is up

The amount of land given over to growing tea has risen by 50% since 2003 and 97% of output is now industrialised. The government wants to increase the amount of land suitable for cultivation by 9,500 ha and plans to open ﬁve new production units by 2017.

The modernisation of breeding methods and the government programme “One household, one cow” have helped to sharply boost meat production, which increased by 9.9% from 2009 to 2010. The production of eggs rose by 59.2%, ﬁsh 6.4% and honey 27.5%, but there are not enough local processing industries to keep pace.

EXOTIC FRUITS Activities to develop Climate and the quality of its volcanic soil make Rwanda ideal for growing exotic fruits and vegetables, but market studies abroad for pineapple, mango, avocado and passionfruit were only recently launched. This subsector, a deep pool of potential jobs, oﬀers domestic and foreign investors countless opportunities.

FACTFILE

ECONOMY AND BUSINESS ENVIRONMENT

MINES AND QUARRIES

A huge geological potential

Rwanda wants to enter the Industrial Age

25%

of mining potential is currently exploited

Mining and related industries employ 50,000 people

NEW PROSPECTING AREAS Rwandaʼs geological structure is made up of volcanic rock on which several sedimentary basins have formed. In 2008 a sweeping gravity and magnetism survey was carried out by flying over the country. Combining the findings with already-known data helped identify 21 high-potential Prospective Target Areas (PTAs). Market demand and Rwandaʼs

INVESTING RWANDA 2012

economic dynamism make the sector particularly attractive.

A WIDE ARRAY OF ORES Rwanda produces some 6,000tn of cassiterite, wolframite, colombitetantalite and gold each year, but estimates put the potential exploited at barely 25%. The soil contains many other mineral riches, including lithium, thorium, phosphorus, lead, nickel, ›››

ECONOMY AND BUSINESS ENVIRONMENT MINES AND QUARRIES

Akagera International airport zin ga umb a

UGANDA

Secondary road

Muvumba

Kidaho VOLCANOES NATIONAL PARK

Karisimbi Karisimbi 4 507 mm 4 507

Goma

D. R. CONGO

Lake Ruhondo

Ruhengeri

Ngarama

Nyakirama

Gabiro

Byumba

Gisenyi

Bumbogo Kabaya

Tare

GISHWATI NATURE PARK

LAKE

Kayenzi

Ramba

KIVU

Gitesi

Gitarama

Ijwi Island

Muhazi

KIGALI

Rwamagana

Lake Nasho

Kibungo Kigoma

go on

ra Mu

RESERVE

Butare

Rwamiko

a hw

Mudasomwa

Subsistence crops, livestock

Kigembe

BURUNDI 50 km

INVESTING RWANDA 2012

ENERGY, MINING, INDUSTRY Hydroelectric power plant Methane reserves

Rice

Cassiterite deposits

Tea

A kagera

Coffee

Pyrethrum

Rusumo

AGRICULTURE

Cash crops u ar

s izi

Lake Rweru

Lake Cyohoha (South)

o og Akany aru

Nyakabuye

Nyabisindu

Gikongoro

NYUNGWE NATURE

Cyangugu

Cyimbogo

Bukavu

Ruk

Kaduha

Kagano

a ur

Lake Sake

Lake Cyohoha (North) Ngenda

Lake Mpanga Lake Cyambwe

Lake Mugesera

Kanazi

Birambo

Nya

Kayonza

Nyarugenge

Kivumu

Mabanza

Lake Ihema

Lake Muhazi

Rutongo Ny ab ar

go on

Kibuye

AKAGERA NATIONAL PARK

Tungsten deposits

Groundnuts

Gold deposits

Sugar cane

Food processing

Fishing and fish farming

Textiles

Provincial boundary

Lake Bulera

Akagera

Forest, Nature Reserve

Ka ran

National Park

TANZANIA

Umutara ga za

Main road

Muv

Aerodrome

ECONOMY AND BUSINESS ENVIRONMENT MINES AND QUARRIES

›››

iron, soapy clay, kaolin and travertine, for which the building industryʼs rising demand promises a bright outlook. There are also many deposits of precious stones (sapphire, ruby, beryl, topaz, etc.).

INDUSTRIALISATION Rwandan officials want to develop still-embryonic local processing activities. Tin ore (cassiterite) is exported as a raw material. Other ores are only washed, such as coltan (which is used to make niobium) tantalum and wolframite, a component of tungsten. The government encourages nonindustrial operations to band together in cooperatives and own grinding and processing plants to increase valueadded and transparency. There were approximately 40 of them in 2011. The industry employs 50,000 people.

FOREIGN INVESTMENTS The Régie dʼExploitation et de Développement des Mines (REDEMI) operated most mines until 2006, when approximately 20 of its concessions were privatised, clearing the way for * www.ogmr.minirena.gov.rw

INVESTING RWANDA 2012

private companies such as Gatumba Mining (South Africa) or Natural Resources Development (Germany). Foreign investors in particular, such as Transafrica Gold (South Africa), Rogi Mining (Russia) and Caracal Gold (the United States), are interested in the gold ore potential.

NEW MINING CODE A framework law (2009), new mining code (2010) and tax system (2011) have been designed to make the industry more attractive. Rwanda is one of the few countries in Africa to have set up a mining and natural resources regulatory agency, the Rwanda Natural Resources Authority*, which monitors mines and arbitrates disputes.

THE TRACEABILITY PRINCIPLE Emphasising transparency, officials have developed, in cooperation with the International Tin Research Institute (ITRI), a systematic production labelling process ensuring that extracted ores comply with the US Conflict Minerals Trade Act and can be sold worldwide. ■

ECONOMY AND BUSINESS ENVIRONMENT

INFRASTRUCTURE

Major projects Transport is a priority

Regular maintenance keeps 38% of the road network in good condition

A 25-YEAR PROGRAMME In 2011 Rwandaʼs infrastructure ministry (MININFRA) launched a 25-year Transport Master Plan (TMP) to achieve the countryʼs goal of boosting exports and becoming a regional logistics hub. The sweeping programme aims to cut the costs of shipping domestically-made or imported goods, which account for up to 40% of their value, by any means

necessary ̶ new roads, dry ports and customs zones (One Stop Border) ̶ and to serve the entire country. It is based on an observation: in 2010, 38% of the national road network (2,860km) was considered in good condition but just 3% of roads serving the districts (1,838km) were: this in a country with one of Africaʼs highest road density ratios (0.52 km/sq km) and where 90% of transport is by road.

INVESTING RWANDA 2012

90% of regional transport is by road

ECONOMY AND BUSINESS ENVIRONMENT INFRASTRUCTURE

in 2013, and the one from Kigali to Rusizi, Lake Kivu and the DRC. The Kigali-Butare stretch is finished while the one from Butare to Rusizi is under construction. Many projects are in cities: 36km of roads have been tarred in Kigali in less than three years and a 34km branch is under way.

INTERNATIONAL RAIL LINKS

In Kigali, 36 km of roads were tarred in less than three years.

CONNECTIONS WITH NEIGHBOURING COUNTRIES

450 KM of railway line to Tanzania in project

Most connections with the subregion rely on two main roads that are undergoing work: the 1,600km north corridor, which crosses Uganda and Kenya on the way to the port of Mombasa, and the 1,150km central corridor, which leads to the Tanzanian port of Dar es Salaam. The building of a new road alongside Lake Kivu (Rusizi-Kibuye-Gisenyi) is in the launch stage: three of the six lots have been financed. When this international road opens it will link Rwanda to Burundi and the DRC through the economically strategic Lake Kivu area.

ENTIRELY RENOVATED ROAD NETWORK In addition to those major connections, the entire road network is undergoing rehabilitation and new roads are being built. The Kigali-Gisenyi road to the Democratic Republic of Congo (DRC) is being resurfaced and the entire route will be completed by mid-2012. Other projects involve the Kigali-Gatuna road to Uganda, scheduled for completion

INVESTING RWANDA 2012

In the long term, the highly ambitious Kigali-Dar es Salaam project via Musongati, Burundi and the dry port of Isaka in Tanzania should help create a regional rail network. The privatisation of the Tanzania Railway Corporation and concession of Kenya始s and Uganda始s networks to South Africa始s Rift Valley Railways is part of that plan, backed by the World Bank. There is already a stretch between Isaka and Dar es Salaam in Tanzania, but it needs rehabilitation. The rest, which will cost $4bn, remains to be built, especially the 450km stretch between Kigali and Isaka. Feasibility studies on African Development Bank (AfDB) financing were completed in summer 2011. The technical studies will be completed by late 2012.

NEW AIRPORT Kigali international airport is undergoing modernisation to boost its current capacity of 4.4M passengers a year. Rwandair, the national airline, operates regional flights to Nairobi, Entebbe, Bujumbura, Kilimanjaro, Arusha, Mombasa, Dubai, Johannesburg, Brazzaville and Libreville. International companies (Ethiopian Airlines, Brussels Airlines, KLM, Kenya Airways, China Postal Airlines and African Star Airways) make international flights. A second

ECONOMY AND BUSINESS ENVIRONMENT INFRASTRUCTURE

international airport, which will help meet the growing needs of air traffic and export companies, will be built in Bugesera.

OTHER PROJECTS Thirteen bridges are undergoing rehabilitation and studies are under way to rebuild Rusumo Bridge, at the border with Tanzania, for a long

time the only point of access to Rwanda. The work, financed by Japan, is scheduled to start in early 2013. Many other studies are under way with the goal of improving Rwandaʼs connections with its neighbours. The priorities include shipping on Lake Kivu and navigability on the River Akagera, which flows along the border with Tanzania. ■

Kigali International Airport

BUGESERA INTERNATIONAL AIRPORT The future Bugesera international airport, located approximately 40km from Kigali and around 20km from the border with Burundi, will be built in three stages with the goal of reaching a capacity of 50 to 60M passengers/a by 2030, figures in harmony with the development forecasts of the East African Community (EAC). In the first stage it will be used mainly for freight (1.8M passengers and 15,000tn of goods/a starting in

2015). The feasibility studies have been completed and the road connecting the site to Kigali was tarred in 2008. The $635M project should start in 2012 under the responsibility of engineering firms based in the United States (TSS-Consult) and Kenya (GIBB Africa). The British company TPS Consultants, which has managed terminal 5 at Londonʼs Heathrow Airport, is studying the second stage (10M passengers/a).

INVESTING RWANDA 2012

ECONOMY AND BUSINESS ENVIRONMENT

INVESTMENTS

A modern, adapted framework Rwanda boasts one of Africaʼs most eﬃcient governments

MEANINGFUL REFORMS

in Africa for its business environment (WEF)

Aware it will not achieve its development goals without foreign investors, Rwanda has given itself the institutional means to welcome and help them on the ground. The investment regime and administrative environment reflect that determination in several ways. In particular, programmes based on strengthening the private sector and zero tolerance for corruption have enabled the country to boost the amount of foreign direct investment (FDI) fourteen-fold between 2004 and 2009. The IMF ranks it in the Top 10 fastest-developing countries between 2001 and 2011.

BUSINESS ENVIRONMENT The Global Economic Forumʼs 20112012 Global Competitiveness Report ranks Rwanda fourth in Africa (after Tunisia, South Africa and Mauritius but ahead of Morocco) and 70th worldwide (out of 142 countries), far ahead of its big neighbours Kenya (102nd) and Tanzania (120th).

INVESTING RWANDA 2012

Rwanda rose 12 places in 2010-2011 after climbing 76 in 2009-2010. The World Bank confirms the progress in its annual Doing Business report: Rwanda is the country that pushed through the most reforms to improve the business environment in 2010 and the second-most in 2011.

INVESTMENT CODE Rwandaʼs investment code (organic law 26/2005) says no sector is off limits to foreign investors, puts no restrictions on the percentage of funds they may own and lists priority sectors: information and communication technology (ICT), energy, agriculture, agro-industry, tourism, livestock breeding, fish farming, forestry, re-export activities, mining, research, water supply infrastructure and waste recycling. Exporters benefit from the same advantages as investors.

SIMPLIFIED FORMALITIES The investment code provides for tax breaks and exemptions,

ECONOMY AND BUSINESS ENVIRONMENT INVESTMENTS

dependi ng on the nature of the activity, and defi nes simplified administrative formali ties thanks to a si ngle wi ndow wi th a wide range of ser vi ces, the Rwanda Development Board (RDB). It i s thus possi ble to create a business i n a day for under $80. The code disti nguishes between foreign i nvestors, who must invest at least $250,000, and local investors, for whom the minimum i s just $100,000, and lays down the princi ple of three kinds of free zones: export, individual exporting companies and commerci al free zones. It grants non-tax i ncenti ves ̶ permanent resident status, Rwandan citizenship and access to land ownership ̶ to anyone i nvesti ng at least $500,000 i n an operati on.

PROTECTED BY LAW

RWANDAʼS GOVERNMENT PERFORMANCE World Bank and WEF rankings compiled

OECD countries

58 Eastern Europe

South-east Asia

North Africa and the Middle East

East African Community

117

Sub-Saharan Africa West Africa (UEMOA)

137

INVESTING RWANDA 2012

Rwanda Source: RDB based on WEF and World Bank rankings

The 2003 Constituti on enshri nes protection of property (arti cles 29 and 30), but the investment code upholds free, complete repatri ation of capital and profi ts without parti cular taxation. It also spells out guarantees flowi ng from the countr yʼs membership of i nternati onal conventi ons and makes the government responsible for protecti ng FDI accordi ng to the 2003 Constituti on. Rwanda i s a member of two World Bank bodies, the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for the Settlement of Investment Disputes (ICSID). It i s also a foundi ng member of the Afri can Trade Insurance Agency (ATI), created with World Bank backi ng in 2001. ■

COMPANIES & MARKETS

COMPANIES AND MARKETS

COMPANY LIFE

Eﬀective tools

The state supports new businesses and jobs

Bralirwa, Rwandaʼs leading company, saw its proﬁts rise 40 % in 2010.

MOTIVATING MEASURES

123,526 companies active in the country

In addition to the investment code (see p. 42), Rwandaʼs officials have implemented a battery of measures to help new companies start up. A single agency, the Rwanda Development Board (RDB), supports new businesses every step of the way, helping them find partners and intervening with officials on their behalf. They also

INVESTING RWANDA 2012

benefit from tax breaks on capital goods imports connected to the rules of the East Africa Community (EAC). Imports of EAC-made goods are exempt from customs duties; so are raw materials and capital goods from outside the zone. The tax on imports from countries outside the EAC is 15% for intermediate goods and 25% for finished products.

COMPANIES AND MARKETS COMPANY LIFE

THE RWANDA DEVELOPMENT BOARD In 2009 the government brought its investment and export promotion teams and business- creation single window together into one agency with a wide range of competences, the Rwanda Development Board (RDB). Although public, the RDB boasts a private companyʼs spirit and dynamism. It is the only stop investors need to make to carry out formalities and obtain sales licenses and investment certificates. It is also a guide, providing documentation on the national legislative arsenal, comprehensive or sector- based policies, government incentives, trends, opportunities, procedures and any other necessary information, including conditions for construction, employment and labour and access to water and electricity.

AN ACCURATE COMPANY CENSUS In August 2011 the Rwandan Statistics Institute published the results of its company census ̶ the first in the country and, in many cases, in subSaharan Africa. This very complete tool processes data from 96.7% of the 127,662 businesses listed and gives a highly accurate snapshot of Rwandaʼs entrepreneurial network. It found that the country has 123,526 active companies, of which 23.6% are in Kigali. Around half (60,202) have been set up since 2000. The main activities are retail and wholesale trade (52%) and food and housing (27%). Many are small businesses: just 2.6% have capital above RWF 15M, of which 4.3%, or 5,000, are in Kigali (see charts p. 48).

WELL-PLACED WOMEN Like its institutions and government (see p. 12), Rwandaʼs companies stand out for gender parity. Women run nearly 50% of the businesses in Kigali and almost one in three nationwide. Their estimated contribution to GDP is put at 30%. They still only account for 17.5% of senior management but are extending their skills to areas outside traditional activities: science and technology for example.

THE FUTURE OF AGRO-INDUSTRIES Most of Rwandaʼs micro-companies are agriculture-related, another reason to bet on the quick, sizeable growth of agro-industries. The country is bursting with opportunities, from the packaging of fruit, vegetables, flowers, medicinal plants and essential oils to the production of fruit juice, sunflower oil, silkworms, fertiliser and pesticides, which must be imported at high cost due to the lack of local factories. There is a considerable, urgent need for greenhouses, cold chambers and production facilities to manufacture packaging. ■

RWANDA STOCK EXCHANGE To energise businesses and the financial market, the state is gradually selling off its stakes in big companies on the Rwanda Stock Exchange (RSE). The first Initial Public Offer (IPO) involved Bralirwa. The state sold 5% of its shares to its historic stockholder, Heineken, and 25% of the capital, which netted $80M, nearly three times as much as expected ($29.5M). In addition to the brewery, the RSE lists the Nation Media Group (press and audiovisual), the Kenya Commercial Bank (KCB) and, since summer 2011, the Banque de Kigali (BK), of which 50% of the capital is up for sale. The Capital Market Authority Council, backed by a legal arsenal set up in 2007, regulates the market.

INVESTING RWANDA 2012

FACTFILE

COMPANY LIFE RWANDAʼS 10 BIGGEST COMPANIES

Bralirwa (ex-Brasseries et limonaderies du Rwanda)

75% Heineken, 25% Rwanda Stock Exchange (RSE)

MTN RwandaCell

Telecom, subsidiary of MTN (South Africa)

Banque de Kigali

45% RSE, 30% state, 25% private

Cimerwa (ex-Ciments du Rwanda)

90% Rwanda Investment Group (RIG), 10% state

Sonarwa (Société Nouvelle dʼAssurances du Rwanda)

Public, RSE listing planned

Soras (Société Rwandaise dʼAssurance)

Private, ex-subsidiary of UAP (France)

Inyange Industries

Food, private

Tigo

Telecom, subsidiary of Luxembourgʼs Millicom

Socatram (aluminium processing)

Subsidiary of TPS (branch of AKFED)

Ecobank Rwanda

Subsidiary of the African banking group Ecobank

Source: Jeune Afrique

RWANDAʼS BUSINESS NETWORK Type of shareholding

Kigali

Total Rwanda

Number of employees

Kigali

Total Rwanda

Family

45.4%

53.5%

1-3

88.3%

92.6%

Private

51.6%

41%

Cooperative

0.6%

1.5%

4-30

10.8%

6.9%

Public

0.1%

Over 30

0.9%

0.5%

Total companies

29,177

123,526

Total companies

184,772

281,946

Companies run by

Kigali

Total Rwanda

Main activities

Kigali

Total Rwanda

Men

56.8%

73.7%

Commerce

63.9%

30,206

Women

43.2%

26.3%

Housing and food

12.5%

11,418

Source: National Institute of Statistics of Rwanda, 2011

MAIN PORTALS ●

RWANDA DEVELOPMENT BOARD (RDB) A single window for setting up companies, and also an investment promotion agency Tel.: (+250) 252 580 804 www.rdb.rw

●

RWANDA DEVELOPMENT GATEWAY (RDG) Trilingual information portal www.rwandagateway.org PRIVATE SECTOR FEDERATION Employersʼ association and chamber of commerce and services Tel.: (+250) 252 57 06 50 www.psf.org.rw

●

CEPEX Central investment oﬃce Tel.: (+250) 252 570 978 www.cepex.gov.rw

COMPANIES AND MARKETS

BANKING AND FINANCE

The ﬁnancial market rests on sound foundations Geared towards the economy and supporting companies

COMPETITION AND DYNAMISM Rwandaʼs completely liberalised, tightly regulated banking market has been particularly buoyant since international banks arrived between 2007 and 2011. The competition they have introduced has helped bring down costs and improve the quality of services. In 2011 Rwandaʼs financial market boasts nine commercial banks, a development bank, three other banks, 98 micro-finance institutions, two specialised financial institutions, nine insurance companies, a public pension fund, 40 private pension funds and the Rwanda Stock Exchange in Kigali.

A February 2011 IMF evaluation mission confirmed the vitality of Rwandaʼs banking market and its ability to weather the global financial crisis, which only had a limited impact on the financial system, the central bank (National Bank of Rwanda, NBR) having maintained its official market rates in 2009 and 2010. The NBR fully exercises its regulatory and supervisory

THE CENTRAL BANK IS WATCHING

Rwandaʼs leading bank, the Bank of Kigali was privatised in 2011.

INVESTING RWANDA 2012

COMPANIES AND MARKETS BANKING AND FINANCE

mandates, in particular with regard to the re-organisation of accounts. The average rate of doubtful loans is under 10%. The creation of commercial courts in 2008 has helped settle many unresolved disputes.

SUPPORT FOR THE PRIVATE SECTOR

26%

increase in bank deposits in 2011

The amount of business loans has risen by 20% a year since 2007. Meanwhile, commercial banks have fully played their role as savings collectors: deposits grew by 26% from May 2010 to May 2011. In the framework of the decentralisation policy, 15 new bank branches opened in 2010 and as many are expected to have done so in 2011. The NBR has opened agencies in all four provinces as part of its public education programme. The goal is for 80% of the population to have access to financial services by 2017. The rate of people with bank accounts rose from under 21% in 2007 to over 30% in 2011 (average in sub-Saharan Africa: 10%).

ELECTRONIC BANKING GOES MOBILE All the banks are developing electronic banking services and the use of automated teller machines (ATMs).

The number of ATM transactions more than tripled between 2007 and 2010 and looks set to keep growing with international connections. The marketʼs four biggest banks will be accepting foreign bank cards by late 2011. Mobile banking, launched in 2010, has been a success, winning over more than 200,000 users in a year. The Banque Commerciale du Rwanda (BCR), Banque Populaire du Rwanda (BPR) and Nigeriaʼs Access Bank, although not too businessorientated, offer this service.

INDISPENSABLE MICROFINANCE Microfinance institutions can be found countrywide in the framework of a national programme to develop savings and access to credit. They operate under the central bankʼs supervision, which has very strict rules for issuing licenses. Savings and credit cooperatives are growing at a brisk pace alongside big institutions like Agaseke, the oldest, or Rwanda Microfinance, which belongs to Swedenʼs Swed-Fund group. They depend on administrative, district or industry authorities. Some specialise in loans to teachers, financed by the national education ministry. ■

THE INSURANCE INDUSTRY Insurance industry turnover is growing at a steady pace, but that is due more to rising premiums than the growth of activities. The penetration rate is still low (1.8%, compared to 10% in South Africa). Insurance companies mainly sell traditional products (automobile, death and ﬁre) and life insurance remains relatively undeveloped. They are splitting their life and non-life branches oﬀ from each other and developing rural insu-

INVESTING RWANDA 2012

rance products comparable to those that have become popular in India, Bangladesh or South Korea, extending them to craftsmen and the self-employed. These products will accompany government anti-poverty programmes. Rwanda has nine insurance companies, six of which are private. The biggest is Sonarwa. Nigeriaʼs Industrial General Insurance (IGI) group owns 80% of its capital.

FACTFILE

BANKING AND FINANCE RWANDAʼS 10 BIGGEST BANKS Bank of Kigali

30% state, 25% private, 45% listed on the RSE

Banque commerciale du Rwanda (BCR)

80% Actis (United Kingdom), 20% state

Ecobank

Subsidiary of the Ecobank African banking group

Fina Bank

90% Fina Bank Group (Kenya), 8% state

Compagnie générale de banque (Cogebank)

60% private Rwandan investors, 40% international funds*

Access Bank

Subsidiary of Access Bank (Nigeria)

Banque Populaire du Rwanda (BPR)

35% subsidiary of Rabobank (Netherlands)

Kenya Commercial Bank (KCB)

Subsidiary of KCB Group (Kenya)

Equity Bank Rwanda

Subsidiary of Equity Bank Group (Kenya)

Banque Rwandaise de développement (BRD)

56% state, 44% international development agencies

Source : Jeune Afrique - * ShoreCap (USA), Belgian Investment Company for Developing Countries (BIO), AfricInvest (Tunisia)

BANKS ●

●

BANK OF KIGALI (BK) Tel.: (+250) 252 593 100 www.bk.rw

●

ACCESS BANK Tel. : (+250) 252 500 089 www.accessrwanda.com

●

RWANDA COMMERCIAL BANK (BCR) Tel.: (+250) 252 595 399 www.bcr.co.rw

COGEBANK Tel.: (+250) 252 597 545 www.cogebanque.co.rw

●

ECOBANK Tel.: (+250) 252 503 580 www.ecobank.com

FINA BANK Tel.: (+250) 252 598 600 www.ﬁnabank.com

●

KENYA COMMERCIAL BANK (KCB) Tel.: (+250) 252 570 620 www.kcbbankgroup.com

INSURANCE COMPANIES ●

SONARWA Société Nouvelle dʼAssurances du Rwanda Tel.: (+250) 252 572 101 www.sonarwa.co.rw

●

SORAS Société Rwandaise dʼAssurances Tel.: (+250) 252 573 712 www.soras.co.rw

●

PHOENIX OF RWANDA Tel.: (+250) 252 570 331 www.phoenixkenya.co

MICROFINANCE ●

AGASEKE BANK Tel.: (+250) 252 585 697 www.soras.co.rw/agaseke

●

RIM Tel.: (+250) 252 503 616 Fax: (+250) 252 503 617 Email: rimsa@rwanda1.com

●

RWANDA MICROFINANCE Tel.: (+250) 252 501 127 www.rml.co.rw

●

VISION FINANCE COMPANY Tel.: (+250) 252 580 343 www.visionfundinternational.org

COMPANIES AND MARKETS

REAL ESTATE

The building boom Big opportunities in housing and materials

Investment in construction exceeds $350m a year

25,000

homes are currently required

URBAN PLANNING In December 1996 the Rwandan government adopted a housing policy based on grouping units together in rural areas in order to encourage the formation and development of growth clusters. At the same time, work began on redeveloping built-up

INVESTING RWANDA 2012

areas in city centres with the aim of improving living conditions. In 2009 the infrastructure ministry spelled out policies and instruments to give a framework to and spur the industryʼs growth: a national building industry policy, urban housing policy, and control regulations, etc. ›››

FACTFILE ADMINISTRATIONS

●

WANDA HOUSING AUTHORITY Ministry of Infrastructure Tel.: (+250) 252 585 503 Fax: (+250) 252 585 755 www.mininfra.gov.rw RWANDA DEVELOPMENT BOARD (RDB) Tel.: (+250) 252 580 804 www.rdb.rw

MATERIALS ●

CONSTRUCTION COMPANIES ●

●

FAIR CONSTRUCTION Tel.: (+250) 252 527 325 www.fairconstructionrw.com REAL CONTRACTORS Tel.: (+250) 788 518 686 www.realcontractorsltd.com HORIZON CONSTRUCTION Gikondo Industrial Area Tel.: (+250) 252 570 376 www.horizongroup.rw

●

BEMS DUHANGE Tel.: (+250) 252 516 344 www.bems.co.rw

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CHINA ROAD AND BRIDGE CORP. Tel.: (+250) 252 510 710 www.crbc.com

●

HYGEBAT Kigali City Tel.: (+250) 252 578 054

●

URBCON CONSULTANCY LTD Tel.: (+250) 788 307 733

CIMERWA Rusizi, West Province Tel.: (+250) 252 537 466 www.cimerwa.rw

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ROKO CONSTRUCTION Subsidiary of Roko Construction, Uganda Tel.: (+250) 252 518 807 www.roko.co.ug

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INTERNATIONAL MARBLE Tel.: (+250) 788 847 884 Email : joyal@crusherinc.com

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KIGALI CEMENT COMPANY Subsidiary of East African Portland Cement (EAPC), Kenya Tel.: (+250) 252 517 631

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ACROBETON Nyabugogo Road, Kigali Tel.: (+250) 252 57270

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ANIK RWANDA Avenue du Commerce, Kigali Tel.: (+250) 252 572 164

●

MUGARURA Tel.: (+250) 252 576 000

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BRIQUETTERIE RWANDAISE RULIBA Tel.: (+250) 252 576 034

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SONATUBE Tel.: (+250) 252 586 037

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REAL ESTATE

THE KIGALI CONVENTION CENTER The Rwandan company Ultimate Concept Ltd (UCL) and the German architects of Spacial Solutions has designed and developed the 13.6ha Kigali Convention Center (KCC), the countryʼs first project of this kind. It is scheduled to open in 2012. The complex features a museum, shops, a 292-room five-star Radisson Blu hotel and 24,000 m² of rental offices in downtown Kigali. The convention centre will boast a 2,600-seat conference hall, a medium-sized hall and 10 meeting rooms. The feasibility study and business plan were completed in April 2009. The total budget stands at $300M. Many spin-offs are expected, especially in the area of conference tourism, a key to the countryʼs tourism development policy.

COMPANIES AND MARKETS REAL ESTATE

›››

28.7%

increase in the construction industry turnover in 2010

BIG AMBITIONS The Vision 2020 programme forecasts that by the end of this decade 30% of the population will live in cities and 70% in cluster housing (Imidugudu). To meet demand, 300,000 houses were built between 1995 and 2010. Special efforts were made to bring down building costs by encouraging innovation and the use of cheap materials. In 2010 a study was carried out and a national action plan adopted to eradicate asbestos throughout the country. An agency ‒ the Rwanda Housing Authority ‒ was set up in the infrastructure ministry to meet soaring demand for housing.

OVER 25,000 HOUSING UNITS A YEAR Housing and land ownership issues are particularly urgent in such a denselypopulated, fast-growing country. Rwanda will have 15M people by 2025, not including returning expatriates wanting to participate in the countryʼs economic and social development. Current demand for housing units, running at approximately 25,000 a year, is bound to grow at a swift pace. In 2011 the Rwanda Housing Authority started building 40,000 low-income housing units scheduled

COMING HOME In 2011 the average price of a ﬁve-bedroom, three-bathroom house in Kigali with a kitchen, living room and dining room was around $100,000, an alluring prospect for Rwandans back from Canada, the United Kingdom, France, Belgium, Japan, the United States or South Africa to take part in their countryʼs economic and social development. It should also be pointed out that, with Rwanda positioning itself as a renewable energy leader in Africa, a niche has emerged: houses integrating alternative energy technological breakthroughs.

INVESTING RWANDA 2012

for completion in 2015. In Kigali, where just 5% of residents live in modern houses, estimated demand is put at 10,000 units a year.

INVESTMENTS HAVE TRIPLED Construction investments soared from $100M to $351M between 2003 and 2008, an increase explained by growing need and the simplification of administrative procedures. In the first six months of 2010 the industryʼs turnover rose by 28.7% compared to the same period the previous year ($64M to $83M). However, the high cost of imported building materials acts as a brake on that dynamism. In 2007 Rwanda imported $65M worth of materials, a figure that more than doubled the following year to $140M. All the steel used for building is imported. Demand for bricks and cement far outstrips local output.

OFFICIAL SUPPORT The Rwanda Development Board (RDB) is pulling out all the stops to attract investors likely to set up construction companies and, even more so, build factories to make much-needed materials, such as tile, wood, glass, electrical equipment, etc. Rwanda has approximately 60 licensed property appraisers capable of facilitating investorsʼ transactions during the postconstruction phase. The government emphasises long-term investments by giving priority to big, structural projects. An example is in the Bugesera district, where construction will soar with the building of the new international airport, the arrival of the railway and the opening of the commercial free zone.■

COMPANIES AND MARKETS

ENERGY

Ten times more power by 2017

Installed capacity likely to exceed 1,000 MW

In 2010, 240 km of medium-voltage lines were installed

RISING DEMAND

POWERFUL PROJECTS

Power supply is insufficient in Rwanda, where, as in most fastdeveloping countries, the emergence of industries and agro-industries, growth of commerce and services and improvement of living conditions is fuelling demand.

Rwanda plans to boost its power supply from the current 95 MW to 1,000 MW by 2017 by implementing a unique technology that can generate electricity from methane gas dissolved in the waters of Lake Kivu (potential: 700 MW, see box). New hydroelectric

COMPANIES AND MARKETS ENERGY

plants will be built, one on the River Nyabarongo (installed power: 27 MW), another, in the course of completion, on the Rukarara (9.5 MW) and a third on the Rusomo (37 MW). The exploitation of peat deposits (potential: 300 MW) and geothermal resources (700 MW) is planned in the long term. Three sites have been identified in the country.

LESS THAN 95 MW IN 2010

700 MW

the combined capacity of the Lake Kivu plants

Installed power capacity rose from 85.1 MW in 2009 to 95.24 MW in 2010. However, although demand is rising at a steady pace, available capacity did not exceed 80 MW in 2010 because of reservoir water level variations depending on rainfall, rehabilitation work under way at certain production units and technical snags in the extraction and exploitation of gas from Lake Kivu. However the rehabilitation work will be completed in 2012 and the KP1 pilot plant at Lake Kivu has reached 5 MW (instead of 4.2 MW).

SOARING DEMAND The number of connections to the power grid shot up from 142,702 in 2009 to 189,678 in 2010 (+33%). The

length of medium- and low-voltage power lines increased by 240 km and 154 km, respectively. In addition to economic development, that rise results from the implementation by the EWSA (Electricity, Water and Sanitation Agency) of a massive programme aiming to connect 350,000 consumers, many in rural areas, during the course of the Economic Development and Poverty Reduction Strategy (EDPRS) programme, which runs from 2008 to 2012.

REGIONAL INTERCONNECTION Feasibility studies for 220kV lines connecting Rwanda to the Democratic Republic of Congo (DRC) and Uganda have been completed. Others aim to raise the capacity of a transmission line between Rwanda and Burundi from 110 kV to 220 kV. They should be up and running at the same time as the plant on the Rusizi (Rusizi III), whose installed power will reach 150 MW, and which will supply electricity to 100M people in Burundi, the DRC and Rwanda. The lenders decided to launch the $500M projectʼs financing phase at a July 2011 meeting in Kigali.

NEW ENERGY SOURCES

A UNIQUE PROCESS Rwanda is the worldʼs ﬁrst country to implement a high-level technology to produce electricity: the use of methane dissolved in the deep waters of Lake Kivu. Estimated reserves of the renewable gas are put at 55bn m³. On account of glitches due to the use of advanced technology, the pilot plant (Kibuye Power Project 1, or KP 1), managed by the US company Contour Global, does not yet produce the 38 MW expected in 2008. When the plants built on the shores of Lake Kivu are running at peak capacity, they will produce a total of 700 MW for Rwanda and its neighbours. In 2011 the $142M project, called Kivuwatt, received an investment guarantee from the World Bankʼs Multilateral Investment Guarantee Agency (MIGA). Considering the important developments expected, another concession might be granted in the long term.

INVESTING RWANDA 2012

Solar power plants were installed at 47 healthcare centres and a contract was signed to equip 300 schools in December 2010 in order to make electricity available to the greatest possible number of public institutions. Hundreds of households and approximately 10 schools have been fitted out to use biogas. Lastly, the increase in research and trials has led the government to acquire hundreds of thousands of energy-efficient light bulbs and recommend the use of solarpowered water-heaters. ■

FACTFILE

ENERGY AND ENVIRONMENT

INSTALLED POWER AND ELECTRICITY GRID 200

Customers

160 140

112.1 69.5

86.2

95.24

85.1

73.7

40 20 0

2007

2008

2009

2010

WATER DISTRIBUTION NETWORK

POWER OUTPUT CAPACITY (IN MW)

100,000 00,000

82.181

80,000

69.051

70,000

59.281

60,000 50,000

42.276

30,000 20,000 10,000 2007

2008

2010

2009

Source: Mininfra, Rura

40,000

Domestic hydro-electricity

35.85

Imported hydro-electricity

16.50

Micro-hydro-electricity

0.64

Domestic thermal

27.80

Individual thermal

Lake Kivu methane gas plant

4.20

Solar

0.25

Total

95.24

Source: Mininfra, Rura

142.7

Source: Mininfra, Rura

120 100

189.7

Electricity capacity

180

2007 situation

2012/2013 goal

Access to drinking water (%/population)

64%

80%

Water preservation (% depolluted)

30%

70%

Soil preservation (%/arable land made suitable for cultivation)

40%

80%

Fight against deforestation (% of forests/land area)

20%

25%

Ecosystem rehabilitation (%/land area)

10%

USEFUL ADDRESSES ●

RWANDA UTILITIES REGULATORY AGENCY (RURA) Water, power, transport and telecom regulation Tel.: (+250) 252 584 562 www.rura.gov.rw

●

RWANDA ENVIRONMENT MANAGEMENT AUTHORITY (REMA) Environmental protection ″watchdog″ Tel.: (+250) 252 580 101 www.rema.gov.rw NATIONAL LAND CENTER (NLC) National geographic archives www.nlc.gov.rw

●

ELECTRICITY, WATER AND SANITATION AGENCY (EWSA) National utility and sanitation company Tel.: (+250) 252 598 400 www.ewsa.rw

Source: Rema, RNRA

MAIN ENVIRONMENTAL GOALS

COMPANIES AND MARKETS

WATER AND ENVIRONMENT

The worldʼs most ″sustainable″ country Public health is key to progress in Rwanda

ANOTHER RECORD IN AFRICA

577 KM

was added to the drinking water distribution network in 2010

The Rwandan populationʼs drinkingwater access rate rose from 76.2% to 80% in the year between 2009 and 2010 (average in sub-Saharan Africa: 60%) and is on track to reach 100% by 2015. The network has been lengthened by 577 km, 278 km have been rehabilitated and 250 new fountains built to serve the 261,000 new customers. In March 2010 the government adopted a national water and purification policy leading to the implementation of a computer database in 2011. Currently 56% of the population has access to satisfactory sanitation, a figure that is also likely to reach 100% by 2015.

INCREASING THE FLOW The Electricity, Water and Sanitation Agency (EWSA) manages water supply and purification. Thanks to its climate Rwanda has enough water resources but anticipates a sharp rise in demand. In the capital, which alone consumed 60% of the total in 2008, demand soared by

INVESTING RWANDA 2012

400% between 2005 and 2010. From 2009 to 2010 the amount of treated water increased by 22.8% from 22 to 28 million m³. Many projects are in the development stage in various provinces with backing from foreign lenders ̶ Japan, for example, in East Province ̶ while increasingly effective water treatment processes are being implemented.

PRESERVING THE ENVIRONMENT It should come as no surprise that Rwanda is probably the worldʼs most environmentally-aware country. It is very densely populated. Land suitable for cultivation is scarce and easily degraded, while economic activity is growing throughout its small area. Rwanda seeks to avoid the mistakes made in developed countries, a principle applied to every level of state and society. The environmental aspect is included everywhere in the framework of the Vision 2020 programme and the Economic Development and Poverty Reduction Strategy (EDPRS).

COMPANIES AND MARKETS WATER AND ENVIRONMENT

By 2013, 70 % of wastewater will be recycled

A DEDICATED AGENCY

NO COMPROMISING WITH REMA

Compliance with environmental standards is particularly strict. The Rwanda Environment Management Authority (REMA), a regulatory agency set up in 2006, addresses a major issue: ensuring that economic development in both industry and services is sustainable. Part of the natural resources ministry, which is in charge of protecting the environment, REMA enjoys administrative and financial autonomy. It must ensure that any public or private investment, even if the government initiates it, complies with the principle of sustainable development. The agency is vested with judicial police powers, allowing it to inspect any facility or company without prior warning and, if necessary, immediately shut it down.

REMA is also very strict when it comes to applying the principle of precaution, which is inscribed in its statutes. For example, several companies had to give up on the idea of locating to Rwanda when they found out that plastic bags are banned throughout the country or that they had to carry out studies to develop biodegradable packaging materials. Likewise, after a long campaign REMA got the Gikondo industrial zone, located in a swampy, unhealthy area near Kigali, to move to higher ground. Awareness campaigns targeting professionals or the general public are also part of the arsenal the agency has implemented in the framework of its missions to preserve the countryʼs economic development. ■

COMPANIES AND MARKETS

ICT

Investment opportunities calling New technologies lead service sector growth

2008

Rwandaʼs 30 districts were connected to the national ﬁbre optic network

A 20-YEAR PLAN

GOVERNMENT ON LINE

The National Information and Communication Infrastructure (NICI) plan, a 20-year strategy launched in 2001, includes four five-year modules. The first two, which have been completed, led to the implementation of institutional reforms, infrastructure and tax incentives for the importation of ICT goods.

The NICI 2 module (2006-2010) has emphasised the promotion of e-government projects. Administrative transactions can be made by fibre optics over the Kigali Metropolitan Network, which serves 97 ministries and public agencies. Now Rwandans can complete all their procedures on line, from applying for visas to filing income tax returns, declaring patrimony and setting up businesses (on the Rwanda Development Board site).

NATIONAL FIBRE OPTIC NETWORK Since 2008 Rwandaʼs 30 districts have been connected to the national fibre optic network , which serves 227 schools, hospitals and police stations. An access point is available to the public in each district; private individuals can pay to have a cable run to their homes. The network will be fully operational by late 2011. In 2014 it will be connected to two international underwater cables ending at Dar es Salaam in Tanzania, Mombasa in Kenya, and neighbouring countries by way of nine border points.

INVESTING RWANDA 2012

MORE TELECENTRES The NICI planʼs third module (20112015) aims to set up tools available to as many people as possible. For example, Business Development Service Centres patterned on cybercafes, which will give everybody, including the most disadvantaged people, access to ICT, will open up throughout the country. They will help strengthen the private sector, improve governance and develop many citizensʼ communities, such ›››

FACTFILE

INFORMATION TECHNOLOGY PHONE FIGURES Mobile

Landline

(in thousands)

MTN Rwanda

2,794

12,917

Tigo Rwanda

1 116

30,252

TOTAL

3 910

33,169

Penetration rate

36.5 %

0.4 %

Rwandatel

Customers

Source: Rura (June 2011 data)

INTERNET FIGURES Customers

Mobile

Landline

MTN Rwanda

431,381

932

Tigo Rwanda

31,014

Rwandatel

731,027

15,091

Other*

708

TOTAL

1,193,422

16,731

Penetration rate

11.3%

Source: Rura (December 2010 data) * Rwanda had nine Internet access providers in June 2011

USEFUL ADDRESSES ●

●

RWANDA UTILITIES REGULATORY AGENCY (RURA) Telecom regulation Tel.: (+250) 252 584 562 www.rura.gov.rw RWANDA TELECENTRE NETWORK Sets up telecentres nationwide Tel.: (+250) 252 584 562 www.rtnrwanda.org MINISTRY OF INFORMATION For a radio or television station license www.mininfor.gov.rw

TELECOM OPERATORS ●

●

MTN RWANDA Tel.: (+250) 252 586 863 www.mtn.co.rw RWANDATEL Tel.: (+250) 252 503 263 www.rwandatel.rw TIGO RWANDA Tel.: (+250) 722 000 100 www.tigo.rw

INTERNET ACCESS PROVIDERS ●

●

ARTEL Tel.: (+250) 252 583 474 www.artel.rw ISPA Tel.: (+250) 252 587 144 www.ispa.net.rw

COMMERCE ●

RWANDA REVENUE AUTHORITY To obtain a Duty Free Shop or warehouse license Tel.: (+250) 252 595 510 Fax: (+250) 252 578 488 www.rra.gov.rw

COMPANIES AND MARKETS ICT

››› as producersʼ, womenʼs and young peopleʼs organisations.

SIX MILLION MOBILE CUSTOMERS BY 2012

DTT

The television network went digital in 2011

This is the target the government has set in its search for a third mobile telephony operator, to whom it will sell the license taken away from Rwandatel. The former incumbent operator, which long ranked second behind South Africaʼs MTN, was privatised in 2003, sold to the Libyan investment company LAP Green and overtaken by newcomer Tigo a few months later. In April 2011 the Rwanda Utilities Regulation Authority (RURA) excluded it from the mobile phone market for breach of contract. In addition to winning over customers, the three operators have one goal: to pursue the diversification of mobile phone services. The WiBro (Wireless Broadband Network) will

provide them with the necessary infrastructure.

DIGITAL TELEVISION One end of Rwandaʼs fibre optic network terminates atop 4,507m Mount Karisimbi on the border with the Democratic Republic of Congo, where a 40m pylon was set up as a radiowave relay in the 1980s. Destroyed in 1994, it was rebuilt as a broadband (WiMax) and digital television communications relay serving Rwanda and the Great Lakes region. Rwandaʼs television network went totally digital in July 2011; the analogue signal will go off in late 2012. With support from the Common Market for Eastern and Southern Africa (COMESA), the Mount Karisimbi station will also be used for air traffic control. Rwanda and COMESA have signed a contract to build an air control centre in Kigali. ■

AN AMERICAN UNIVERSITY AT KIGALI ICT PARK Launched in 2006, Kigali ICT Park intends to entice high-tech companies ̶ subsidiaries of foreign groups or local start-ups ̶ to move to Rwanda and create skilled jobs. Oﬃce buildings will gradually rise at the $115M complex. Thirteen companies, including a subsidiary of the US ﬁrm A-Link (business networks), had already moved in by 2008. An ICT Centre of Excellence

INVESTING RWANDA 2012

ﬁnanced by the African Development Bank (AfDB) opened in 2011. It is managed by Carnegie-Mellon University in Pittsburgh, Pennsylvania, which is setting up a Masterʼs programme in information technology in Kigali. Carnegie-Mellon has already begun recruiting teachers and enrolling students. Classes will start in August 2012.

COMPANIES AND MARKETS

HUMAN RESOURCES

People are Rwanda始s richest asset The government focuses on health and professional training

HUMAN CAPITAL People everywhere consider Rwandans friendly, serious, hardworking and disciplined. The government is focusing on upgrading their skills and abilities in order to achieve economic development goals. Health, education and professional training are three top priorities. Education has the lion始s share of the budget.

The number of primary schools has multiplied by three in 13 years, of secondary schools by 30. The number of universities, both private and public, has increased from one to 12. Thousands of classrooms are built each year and the enrolment rate rose from 74.5% in 2002 to 97% in 2009. The Education for All programme, which established free tuition for the first nine years of schooling, has enabled the number of children going on from primary to secondary school to climb from 20,000 in 2008 to over 38,000 the following year.

漏 V. Fournier / JA

A 100% SCHOOL ENROLMENT RATE

Over 6,000 students entered tertiary education in 2010.

HEALTH FOR ALL: MORE THAN JUST A SLOGAN Health infrastructure has followed the same trend. Four reference hospitals, 41 district hospitals and over 400 health centres were built between 2003 and 2010. The number of doctors rose by 150%. The proportion of people with access to essential drugs was 96%

INVESTING RWANDA 2012

COMPANIES AND MARKETS HUMAN RESOURCES

in 2011. Mortality due to tuberculosis and malaria is being fought while vaccinations and awareness campaigns have led, for example, to the eradication of polio.

96%

CONCLUSIVE RESULTS AGAINST HIV

of Rwandans have access to essential medicines

The number of HIV-infected babies in utero fell from 11.2% in 2006 to 4.1% in 2010. That figure looks set to further drop to the same level as in developed countries (under 2%) in 2011 before completely disappearing in 2012. Over 74% of women were screened in 2010. The number of mothers giving birth in clinics has risen from 20% in 2005 to 63%. Nearly all AIDS patients have access to antiretroviral treatments.

THE HIGHER EDUCATION BOOM The National University of Rwanda in Butare, 135 km from Kigali, was long the only place to train the countryʼs managers. Today many private post-secondary schools have opened, mainly in the capital near the countryʼs growth clusters. Examples include Kigali Free University, the Rwandan Institute of Administration

and Management, the School of Finance and Banking and the Kigali Institute of Science and Technology (KIST), whose teaching focuses particularly on information and communication technologies and which plans to become a world-class university by 2020.

RWANDAN MANAGERS: HIGHLY-REGARDED WORLDWIDE The fact that Rwandans work in the worldʼs major decision-making centres attests to how highly the international community regards managers from this small African country. For example, Valentine Sendanyoye Rugwabiza is one of the World Trade Organisationʼs (WTO) four deputy directors-general; former finance and planning minister Donald Kaberuka has been head of the African Development Bank (AfDB) since 2005; the UN SecretaryGeneral has appointed Mbaranga Gasarabwe, a Rwandan woman, as assistant secretary-general for safety and security; and Richard Sezibera has been secretary-general of the East African Community (EAC) since April 2011. ■

Access to healthcare 100

95%

85%

This is extremely rare in Africa: every Rwandan is covered by mutual health insurance. The results of a pilot project that began in three of the countryʼs 30 districts in 1999 were so successful that parliament drafted texts setting up the Rwandan Health Insurance Scheme (RAMA) for civil servants. Health insurance became compulsory for all in

80 70 60

60.7%

50 40 30 20 10 0

2006

2008

MUTUAL HEALTH INSURANCE ‒ COVERING THE COUNTRY

2010

Source: Mineduc

INVESTING RWANDA 2012

2007. Today, as recourse to microﬁnance structures becomes widespread, the government and certain NGOs cover 100% of over one-third of the populationʼs healthcare costs. The International Labour Oﬃce (ILO), which considers social protection a pillar of economic development, praises those results.

FACTFILE

HUMAN RESOURCES EDUCATION STRATEGY Real 2009

Target 2012

Target 2015

Proportion of enrolment-age population with access to secondary education

34.6%

90%

100%

Proportion of enrolment-age population with access to higher education

16.9%

25%

48%

Number of students enrolled in secondary school

38,312

55,000

75,000

57.7/42,3

55/45

50/50

Proportion public/private secondary (in %)

USEFUL ADDRESSES

●

MINISTRY OF EDUCATION Tel.: (+250) 252 582 161 www.mineduc.gov.rw

●

MINISTRY OF HEALTH Tel.: (+250) 252 577 458 www.moh.gov.rw

●

INSTITUTIONS OF HIGHER LEARNING ●

●

KIGALI FREE UNIVERSITY (ULK) Tel.: (+250) 788 304 081 www.ulk.ac.rw

●

KIGALI INSTITUTE OF EDUCATION Tel.: (+250) 252 513 876 www.kie.ac.rw KIGALI HEALTH INSTITUTE Tel.: (+250) 252 571 788 www.khi.ac.rw

●

INTERNATIONAL SCHOOL OF KIGALI International high school, three to 17 years old Tel.: (+250) 788 302 899 www.isk-rwanda.org RUHENGERI INSTITUTE OF HIGHER EDUCATION Tel.: (+250) 788 903 032 www.ines.ac.rw

NATIONAL UNIVERSITY OF RWANDA Tel.: (+250) 252 530 122 www.nur.ac.rw KIGALI INSTITUTE OF SCIENCE AND TECHNOLOGY (KIST) Tel.: (+250) 257 46 93 www.kist.ac.rw SCHOOL OF FINANCE AND BANKING Tel.: (+250) 252 574 302 www.sfb.ac.rw

●

Source: Mineduc

Head oﬃce of the Social Security Fund of Rwanda

COMPANIES AND MARKETS

TOURISM

A strategic industry for the future

A bright outlook, from training to hospitality

Four and a half times bigger than Lake Geneva, Lake Kivu is remarkably peaceful

6.6% annual growth for the tourism sector

GROWTH FROM EARLY 2000 At the turn of the millennium a working group started thinking about integrating the tourism industry into Rwandaʼs development. It distinguished between three kinds of visitors: ″ecotravellers″ in search of nature, culture and applied ecology; ″explorers″ drawn by the idea of meeting people and new

INVESTING RWANDA 2012

experiences; and ″business travellers″ seeking to combine work with pleasure, the most demanding group when it comes to comfortable accommodation and transport and fast, quality communications. Since then, the Rwanda Office of Tourism and National Parks (ORTPN) has made hefty investments in infrastructure and national parks.

TOURISM

FACTFILE

GROWTH OUTLOOK 2011-2021 Real 2011

Estimated 2021

Annual growth

Number of international arrivals

1,016,000

1,528,000

4,2%

Contribution to GDP (bn of RWF)

290.5

555.1

6.6%

130,000

191,000

3.8%

Exports (bn of RWF)

155.5

295.8

6.6%

Investments (bn of RWF)

63.6

120.4

6.6%

Jobs (direct and indirect)

Source: World Travel and Tourism Council

VISITOR FIGURES Average daily amount spent by visitors Average length of stay Hotels

$200 7 days

BREAKDOWN OF VISITORS

200 hotels/ 4,800 rooms

Occupancy rate, superior category hotels

70%

of which foreigners

97%

Source: RDB, 2010

Leisure

35 %

Business 49 % Transit and other

16 %

Source: RDB, 2010

USEFUL ADDRESS ●

OFFICE OF TOURISM AND NATIONAL PARKS (ORTPN) Tel.: (+237) 252 576 514 www.rwandatourism.com

COMPANIES AND MARKETS TOURISM

SOUGHT-AFTER ASSETS Rwanda has a temperate climate all year, an exceptional atmosphere of security in every region and conditions that make it easy to get around. The major tourist sites are a one- to fivehour drive from Kigali. The countryʼs central location makes it a good base for travelling to Kenya, Burundi, Uganda, Democratic Republic of Congo and Tanzania. Business tourism, already a major resource given Rwandaʼs economic dynamism, is likely to grow even more after the 2012 opening of the Kigali Convention Center (see p. 52), which will be able to host prestigious international conferences.

A VARIED, ATTRACTIVE OFFER

UNDERUSED POTENTIAL

Rwanda boasts gorgeous scenery, preserved flora and wildlife ‒ including many primate species and one-third of all the bird species in Africa, majestic volcanoes and carefully-managed and maintained national parks. Volcanoes National Park is world famous for mountain gorillas and nearly half the planetʼs surviving gorillas live in Rwanda. The country also offers holiday homes on Lake Kivu, dance troupes that are internationally-renowned for their gracefulness and elegance and handicrafts exported worldwide.

A 2011 World Travel and Tourism Council (WTTC) survey estimates that tourism will grow by 6.6% a year between 2011 and 2021 and that its share of exports will rise by 10.5% a year. The industry is expected to provide 191,000 direct and indirect jobs by 2021 (130,000 in 2011). However, there are still some challenges the country has to overcome, such as limited air connections, weak infrastructure, insufficient organisation and a marketing effort that pales in comparison to those of some other African countries. ■

A COMMITMENT FROM DUBAI WORLD The Emiratesʼ investment group has invested $50M in building two luxurious, ultramodern ecolodges in Nyungwe Forest National Park and Volcanoes National Park (the Mountain Gorilla Nest Lodge), which will ﬁll a gap in the countryʼs tourist oﬀer. In cooperation with the Rwanda Development Board

INVESTING RWANDA 2012

(RDB), Dubai World is planning an international operation to promote the lodges, breaking with the countryʼs usual relative discretion. In the longterm, a $230M investment is planned to develop Akagera National Park, including construction of an ecolodge, luxury hotel and golf course.

TRAVEL DIARY

Your trip GORILLAS

Very good mid-category, 30-room hotel in Kiyovu, a residential suburb of Kigali. The chain plans to open a second hotel in the capital itself. Rue du Parc, Kiyovu Tel.: (+250) 252 501 717 Fax: (+250) 252 501 716 www.gorillashotels.com

UMUBANO HOTEL

A relatively inexpensive four-star hotel popular for its sports facilities (swimming pool, tennis, volleyball, fitness). Until recently it belonged to Libyaʼs Laico chain. Tel.: (+250) 252 593 500 Fax: (+250) 252 582 957

Umbubano Hotel

HOTELS IN KIGALI MILLE COLLINES

KIGALI SERENA

Made famous by the film Hotel Rwanda, this is probably Kigaliʼs bestknown big hotel. Though renovated in 2009, it still has a charming 1970s style. The garden and poolside restaurant are popular spots to meet at the end of the day. One of the cityʼs best lodgings. Boulevard de la Révolution Tel.: (+250) 252 576 530 Fax: (+250) 252 576 541 www.millecollines.net

This hotel features the class and quality service of the South African chain Serena. Many consider it Kigaliʼs most beautiful hotel and the prices reflect that. A total refurbishment will be completed in 2011. Avenue de lʼArmee Tel.: (+250) 252 597 100 Fax: (+250) 252 597 101 www.serenahotels.com

Serena Hotel

Mille Collines Hotel

CHEZ LANDO

This mid-category (four-star equivalent) hotel made up of small brick and wood buildings dotting park-like grounds may be Kigaliʼs most pleasant accommodation. It boasts one of the most popular restaurants in town. Reasonable rates and guaranteed quality. Remera, Kisimenti Tel.: (+250) 252 582 050 Fax: (+250) 252 584 380 www.hotelchezlando.com

Akagera Falls

FREE FOR 24 HOURS OR MORE? THE GISOZI MEMORIAL

Nobody can visit Kigali without seeing the Memorial inaugurated in April 2004, 10 years after the genocide. This powerful educational monument, financed by thousands of donations from around the world, was designed to raise the awareness and sense of responsibility of visitors from all walks of life. Permanent exhibitions, an education centre, gardens and a documentation centre pay a moving tribute to the all the victims of a murderous era in Rwandaʼs recent history.

NIMBLE EMBROIDERERS

Rutongo, a small, quiet hillside town known for its talented embroiderers, is on the road to Byumba half an hour (25 km) from Kigali. The Sisters of the Visitation set up a studio here where 260 particularly skilled embroiderers worked until it was destroyed in 1994. But the tradition has been passed down from mother to daughter, and today a handicrafts centre supported by a Swiss association employs 200 women who, in addition to traditional embroidery, make soap, baked goods, honey, etc.

TRAVEL DIARY YOUR TRIP

Akagera National Park

ON THE TEA PLANTATIONS

The huge Mulindi Valley tea plantations, created in 1946 and Rwandaʼs first are 75 km north of Kigali near Byumba. You can see the various stages of tea production, from picking to the industrial operations and packaging.

MYTHICAL SOURCE OF THE NILE

A good tarred road leads to Rusumo, 168 km east of Kigali, where you can behold one of Rwandaʼs most beautiful natural wonders: Akagera Falls. A branch of the eponymous river is considered a source of the upper Nile and marks Rwandaʼs entire eastern border with Tanzania as well as its southern border with Burundi.

ON THE SHORES OF LAKE MUHAZI

The charming shores of Lake Muhazi, 70km north-east of Kigali, are a popular meeting spot. Sunday strollers and tourists in search of nature and tranquillity come to this peaceful, approximately 30 kmlong stretch of water branching out in every direction. After a boat ride, enjoy the grilled chicken or local igisafuriya ̶ chicken and bananas in sauce ̶ at the lakeside restaurant.

Tea plantations offer tours

TRAVEL DIARY YOUR TRIP

DISCOVERIES NYUNGWE FOREST NATIONAL PARK Nyungwe Forest National Park, which stretches out over more than 1,000 km² in the south-west atop the Congo-Nile Ridge that cuts Rwanda in two, features one of Africaʼs last high-altitude primary forests (1,700-2,300 m), which is a sanctuary for many species, especially birds (150 species found) and primates (13 species, the worldʼs biggest concentration). The parkʼs 200 tree species, myriad flowers, marshes and waterfalls make it an enchanting place for people who love the great outdoors. Since March 2011 it has had Africaʼs newest and probably one of its most beautiful ecolodges, built by Dubai World (24 luxurious suites).

a preview of the kind of tourism Rwandaʼs government intends to develop on the shores of Lake Kivu. Like at Gisenyi further north, you can enjoy leisure activities on a huge stretch of water edged with jagged, dizzying peaks and verdant peninsulas and dotted with chains of mountainous islets. Even the most jaded tourists are impressed by the beauty, majesty and mild climate of the 2,650 km² Lake Kivu.

LEISURE AT LAKE KIVU The small resort of Kibuye, a two-hour drive from Kigali, offers

It is four-and-a-half times bigger than Lake Geneva but dwarfed by the other Rift Valley lakes to which it belongs, such as the 31,900 km2 Lake Tanganyika or the 68,100 km2 Lake Victoria. Charming, high-quality lodgings like the Lake Kivu Serena Hotel welcome tourists along Gisenyi Beachʼs five kilometres of fine white sand, where year-round bathing is possible.

This park in the Virunga Range north-west of Kigali, which has been a UNESCO Natural and Cultural World Heritage Site since 2002, is one of the last places on earth where mountain gorillas live in peace and freedom. Rwandaʼs Office of Tourism and National Parks (ORTPN) has set up observation posts where you can see them up close in conditions that strictly respect their habitat and tranquillity. One travels from Kigali along a beautiful 120 km scenic drive to Ruhengeri. The visitorʼs centre in Kinigi is surrounded by lush forests, extinct volcanoes with little crater lakes and, on the Congo side, tall, active volcanoes like Nyamuragira (the last eruption was in 1976) and Nyiragongo, which wiped out the city of Goma, DRC in 2001. From Kinigi you can behold five volcanoes with peaks ranging from 3,474m (Gahinga) and 4,507m (Karisimbi). The simple hut where zoologist Diane Fossey, author of the 1983 best-seller Gorillas in the

Mist, lived until she was murdered in 1985 is on their slopes.

AKAGERA NATIONAL PARK Akagera National Park, named after the river that flows between its western edge and the border with Tanzania, was created in 1934. Although two-thirds of its land area (90,000 ha) was amputated in 1998, the hilly terrain and varied landscapes, so unlike East Africaʼs monotonous savannas, still make this one of the continentʼs most beautiful parks. Rising to elevations of more than 1,300m above sea level, the park is an area of high plateaus dotted with hills and crisscrossed by rivers that have formed many marshes and lakes. But Akagera has another advantage: it is less crowded and busy than some neighbouring countriesʼ parks. There are no minibus traffic jams here. You can see lions, giraffes, hippopotamuses and, especially, big herds of zebras, buffaloes and antelopes without having to leave the road, which is against the rules anyway.

VOLCANOES NATIONAL PARK

TRAVEL DIARY YOUR TRIP

Rwanda is famous for its gorillas

TRAVEL DIARY YOUR TRIP

USEFUL INFORMATION ●

VISA

Visas are required except for citizens of the United States, Canada, Germany, Uganda, Kenya, Tanzania, Burundi, and the DRC. It is easy to obtain one on the Internet. ●

HEALTH

Yellow fever vaccination required. Cholera and tetanus vaccinations recommended. Take precautions against malaria: treatment and protection (insecticide-treated mosquito net in rural areas). Water is generally safe to drink, but use bottled water whenever possible. ●

GETTING AROUND

An international driverʼs license is required. Wearing seat belts is compulsory. Drive on the right-hand side of the road. Roads are in generally good condition. The main network is fully tarred but, like everywhere in Africa, there are many untarred roads and the use of an all-terrain vehicle is recommended. ●

Rwanda is a high-altitude country (at least 1,000 m above sea level everywhere) with a humid but mild climate. The two dry seasons ̶ from June to September and December to February ̶ are the best times to go. The average temperature in Kigali is 19°C.

AIRLINES ●

CREDIT CARDS

Big hotels accept most credit cards (best to check beforehand). Kigali has a few automatic teller machines. Plan on using cash for everyday expenses.

ETHIOPIAN AIRLINES

Centenerary House, Kigali Tel.: (+250) 252 570 440 www.ethiopianairlines.com ●

SN BRUSSELS AIRLINES

Hôtel des Mille Collines, Kigali Tel.: (+250) 252 575 290 www.rwanda.brusselsairlines.com ●

KENYA AIRWAYS

UTC building, City Centre, Kigali Tel.: (+250) 252 577 972 www.kenya-airways.com ●

RWANDAIR

Centenerary House, Kigali Tel.: (+250) 252 503 687 www.rwandair.com ●

AIR BURUNDI

City Centre, Kigali Avenue des Mille Collines Tel.: (+250) 252 572 113

MONEY

The national currency is the Rwandan Franc (RWF). The rate is variable but fairly constant. €1 = 862.980 RWF 1,000 RWF = $1.16 (August 2011) ●

CLIMATE

●

KLM

UTC building, City Centre, Kigali Tel.: (+250) 252 501 652 www.klm.com ●

SOUTH AFRICAN AIRWAYS

From October 2011 www.flysaa.com