15 May 2013

Rwandan Foreign investments increased over last two years

Rwandan volume of  foreign private investments increased from US $ 590.5 million in 2010 to US $  832.3 million in 2011. 
 
The latest report on Foreign Private Investment in Rwanda indicates that the big part of this investment came from European Union (32 percent), followed by East African Community -EAC with 14.0 percent."This increase in inflows indicates more attraction of foreign investment from abroad responding to continuously improving business environment and existence of investment," the report said.
 
Most of the investments approved in 2012 three years were made from  South Africa, Kenya, United Kingdom and Germany, described to the countries leading accounting for 34.6 percent of total stock end 2011.
 
Other findings on foreign and joint owned companies indicate that compared to the year 2010, combining local investments and foreign investments in companies that declared foreign investments, actual investments increased by 30.4 percent, entity turnover by 51.8 percent, employment by 88.0 percent, and compensation of employees by 14.4 percent.
 
According to the report, there are currently some reasons why investors can have confidence in Rwanda and direct their investments to potential economic sectors with promising returns. 
 
This is especially related to  the existing good macroeconomic environment where Rwanda enjoyed a year on-year average real GDP growth rate of 8.16 percent between 2007 – 2011, the good governance as well the current Investor friendly climate where by the World Bank Doing Business Report 2012 ranked Rwanda the 2nd top global reformer for five years consecutively and 3rd easiest place to do business in Africa.
 
Moreover, Rwanda is a Market of over 10.5 million people with a rapidly growing middle class. It is located centrally bordering with 3 countries in East Africa and Democratic Republic of Congo and the country has also adhered to EAC Common Market and Customs Union with market potential of over 125 million people, according to the same source.
 
This is third private capital census conducted in Rwanda and a total of One hundred and thirty companies (140) were surveyed.

By: Aimable & Tharcisse

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