Key Industries and Key Insights In Rwanda

What are the key industries in Rwanda?

An industry is a segment that produces goods and services in an economy. A firm’s key foundation of revenue indicates what industry it should be classified in.

When comparing Rwanda to the rest of the world, the industry sectors are still in a promising phase. The fact that 90% of Rwanda’s population is tangled in agriculture in the rural areas and has a scarcity of raw materials has caused the development of industries in the country.  

Rwanda’s industry compromises of two sectors; primary and secondary. The primary sector includes activities of using natural resources for renovation into commodities such as forestry, mining, agriculture, farming etc. The secondary sector renovates the natural resources made by the primary industry into commodities for the users. Examples of are; manufactured goods, food processing, oil refining, construction, fashion, small scale beverages etc.

Secondary Industries

• Online marketing
• Tourism and hospitality
• Foreign cuisine
• Food processing
• E-commerce
• Transport
• Clothing
• Office supply
• We design
• tutoring

Investments in Rwanda

Investment opportunities in Rwanda

Education

The aim of Rwanda’s government is to renovate the country into a middle income country by 2020. In order to attain economic and social development the people of Rwanda are required. The Rwandan people must be trained and given opportunities to advance their skills, knowledge and qualifications. This aids in striving and contributing to the labour market.

 The vision 2020 is aiming at having an adult literacy of 100%, primary GER of 100% and a secondary GER of 98%. The qualified pupil to teacher ratio is targeted to be 40:1 at primary level and 30:1 at secondary level.

Agriculture

Agriculture is the principal component to Rwanda’s fast economy growth.  It is the main component in creating jobs for almost 80% of the population. Every year this sector grows by 1.5%, from 4.5% to 6%. 13% of the national budget has been assigned to increase food productivity and security.

The key source of foreign exchange in agriculture is tea and coffee. The crop strengthening program aims to rise in the productivity of potential food crops such as; potatoes, beans, wheat, cassava, soya etc.

Mining

The main mineral exports in Rwanda are ores processed to remove tantalum, tin, tungsten and at times gold and gems. In the Rwandan economy, the mining segment is ranked the second largest export and has spawned approximately 300 million USD of foreign exchange. Mineral exports ongoing in Rwanda can be traced through the tagging system.

Real estates

Since the country is growing, there is a high demand for houses and land. This makes it one of the most beneficial features of economy. The Real estate segment is a significant factor for the economic growth.

In the past 13 years, investments in the real estate segment has risen from 100 million USD to 480 million USD due to investments in infrastructure, diaspora investments, population and middle class growth etc. This sector

If you do not have enough capital, you can invest in land and houses that are affordable. If you do though, investing in housing estates and outsized land would be a virtuous idea.

Infrastructure

Infrastructure is very important in Rwanda and they fully understand its significance in developing the private sector. Rwanda is investing in roads, rail and water transport to diminish the transport cost and advance a thrilling private sector.

Roads

In the past few years Rwanda’s transport segment has enhanced rapidly. It concentrates mainly on paving the roads. Over 1210 km have been paved and targeting to pave more. 90% of the roads are in a good condition and adds 7% to the GDP.

Rails

There are railways to be developed to connect Rwanda to the sea ports of Dar es Salaam and Mombasa. This will diminish the cost of doing business and encourage trade.

There is a project in progress of developing a railway to link Rwanda, Kenya, Uganda and South Sudan. It is estimated to cost approximately 5 million USD when it is finished. The project will cooperatively be financed by the four countries; Kenya, Rwanda, Uganda and South Sudan and each state will build the railway line within their border.

Air Transport

Kigali International Airport is the country’s major gateway. RwandAir is the national carrier with several domestic and international destinations. The airport hosts other international airlines including; Ethiopian Airlines, Kenya Airways, Brussels Airlines, Qatar Airways, KLM and Turkish Airlines.

The Government is constructing another airport (Bugesera International Airport). It will offer both extra capacity for passengers and cargo freight.

Energy

Rwanda’s main energy source is biomass which is 86.3%. Other sources are; Hydropower-48%, thermal- 32%, solar PV – 5.7%and 14.3% of methane. The generation capacity of 110 MW, which offers 16% connectivity.

Tourism

Rwanda home to volcanoes, Lake Kivu resorts, Mountain Gorillas, bird species etc. provides tourists a remarkable voyage. It has different entertainment opportunities and an outstanding and expanding transportation. It is calm and safe to move around with short distances. Rwanda being in the heart of Africa, gives easy access to neighbouring countries; Kenya, Burundi, Uganda, Tanzania and Democratic Republic of Congo.

Health

Rwanda is known for its success in submitting world-wide admission to healthcare. More than 80% of Rwandans are covered by the mutuelle de santé. This means that Rwanda has guaranteed that the citizens have access to health care. The child mortality rate has also been reduced by 60%.

Currently Rwanda runs an organized and functioning healthcare public facility system, with 1700 health posts, 500 centres, 42 hospitals etc. Rwanda also has a private health services segment, it has 2 general hospitals, 1 eye hospital, 50 general clinics, 4 eye clinics and 8 dental clinics. There is 1 International hospital and 1 public medical college creating about 100 general specialists per year.

Financial

The official financial system in Rwanda has a population of roughly 42%. So, Rwanda’s financial market embraces around 66.3% of total financial parts assets, making Banking able to prevail. The sector stays well exploited and profitable to endure development. The Interest rates on loans are currently from 14% to 22% making them moderately stable. The financial sector is controlled by The National Bank of Rwanda and provides licences to insurers, forex bureaux, commercial banks etc.

Why should you invest in Rwanda?

Rwanda has formed this environment which is comfortable for locals and foreigners to invest in. Below are a few reasons as to why you should consider Rwanda for investments;

• Rwanda itself is a very safe country and its economy is booming rapidly. It has a vibrant vision of 2020 intended to renovate Rwanda’s economy into a middle income country. Since 2004 the GDP grows by approximately 7.1% every year. The business outcome can be predicted .Therefore, the exchange rate and inflation are constant.

• Rwanda’s environment is great. This means climate is brilliant not too hot but not too cold. Kigali is an exquisite green and very clean country with fertile land. The nature and wildlife is stunning. The life quality is abundant with a relatively low crime late. On top of that it won the UN Habitant Award in 2008.

• Doing business in Rwanda is reliable, the country has no corruption. You can start a business, get employers, get credit, register your property effortlessly and still be protected. In addition, Rwanda has been ranked in 11^th place worldwide for being able to start and register your business easily. In 2008 there was a reform applied to simplify foreign businesses and investments.

• Rwanda is one of the top 3 countries in Africa with upright internet connectivity.

Investment Registration

1. Write an application letter to RDB CEO requesting to invest.
2. Give in a business plan
3. Business certificate
4. An approved license from the business sector
5. Pay the registration fee and show proof to RDBs bank account at the Bank of Kigali. 470,891.20 RWF to Account number: 0281460-96 or 500USD to account number 0281441-77