Market News | Buildexpo Rwanda 2017

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Why Rwanda is a market to target

Rwanda the land of a thousand hills is also known as one of the world’s fastest-growing economies, Rwanda has established the powerful role of entrepreneurship in reconstruction and reconciliation. The country’s annual GDP growth has averaged 8 percent over the past several years, and the percentage of people living in poverty has declined significantly. Rwanda aims to become what it describes as a “knowledge-based, service-oriented economy with middle-income country status” within the next few years.

Rwanda has a population of 11.8 million people and a Gross Domestic Product (GDP) of USD 8.096 billion dollars. Rwanda’s economy flourished by an average of 8 percent annually from 2002 to 2012, and then 6.9 percent growth in 2015 and 5.9 percent growth in 2016. The International Monetary Fund (IMF) expects Rwanda’s GDP to grow between 6-7 percent in 2017 and 2018.

There are many clear big picture economic signs that lead us to believe that Rwanda is the next country to target for conducting business. Here are some of the signs:-

  1. Inflation remains below 8 percent (pushed up from 5% in 2016).
  2. The country maintains its reputation for low corruption
  3. Rwanda's debt-to-GDP ratio at 40 percent is relatively low
  4. The percentage of foreign assistance in the country’s annual budget has dropped from over 80 percent a decade ago to 38 percent in 2016/2017 National Budget
  5. Rwanda enjoys relatively high rankings in the World Bank's Ease of Doing Business Index, which ranked Rwanda 59th out of 190 economies in the 2016 report—second-best in sub-Saharan Africa behind Mauritius.

Leading sectors in Rwanda include energy, agriculture, trade, hospitality and financial services. Rwanda’s economy is essentially rural and heavily dependent on agriculture but they have big plans to change things. Strong and steady growth in the services sector particularly construction and tourism have contributed immensely to overall economic growth.

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The government’s economic priority is turning Rwanda into a regional trade, logistics, and conference hub. Pillars of this progress include the construction of several new international business class hotels and a convention centre in downtown Kigali and expanding and investing in the fleet for the national carrier RwandaAir.

When we talk about the exports, Rwanda’s exports increased by 7.4 percent year-on-year in 2016, reaching USD 621.6 million according to UN ComTrade data. Commodities, mainly gold, tin, tantalum, tungsten, tea, and coffee, got over 48 percent of its export revenue. Rwanda earned USD 73.5 million from tea exports in 2016, a nine percent increase from 2015.

Over the same period, coffee accounted for USD 59.5 million worth of exports, down seven percent from the previous year. Major markets for coffee exports are the United States and Europe, while the Middle East and Pakistan are the main buyers of Rwandan tea. 

Tourism was, for the first time in 2016 the country’s leading foreign exchange earner with total revenues estimated at USD 390 million in 2016, according to the National Bank of Rwanda. 
Leisure tourism and Business tourism played pivotal roles in this upsurge. They are the highest income generating sectors. The escalation of Meetings, Incentives, Conferences and Events (MICE) led to the same.

When it comes to crime rates Rwanda’s strong police and military provide a security umbrella that minimizes potential criminal activity and political conflicts. 
Rwanda is not for the short-term investor, but there are opportunities to be pursued over the long haul.

  • East Africa Upbeat About Economic Prospects for 2018

    Posted on :Friday , 1st December 2017

    An expansion in communications, transport and construction sectors is being eagerly expected by East African economies for the year 2018. 

    Tanzania's economy is expected to expand by 7.1 per cent in 2018, up from an estimated 7 per cent this year and it’s Finance and Planning Minister Philip Mpango has vowed to boost public investment in infrastructure, including a standard g. . .

  • President Kagame Sees Scope For Growth In Rwanda

    Posted on :Thursday , 9th November 2017

     The Rwandan economy could expand to 6 percent in 2017 and a further 7 percent in the following year, according to President Paul Kagame. 

     
    This growth could be credited to domestic demand and better commodity pricing.
     
     The economic index of Rwanda is projected to experience a rapid rise this year and the year after that . . .

  • New Cricket Stadium Launched in Rwanda

    Posted on :Wednesday , 1st November 2017

     In a historic event for Rwanda’s cricket fraternity, the country’s very first international cricket stadium was launched.  

     
    The brand new ‘Gahanga Cricket Stadium’ covers 4.5 hectares and was inaugurated by Paul Kagame, the President of Rwanda.
     
    The stadium was funded mainly by international crick. . .

  • Wood-Mizer exhibiting at Buildexpo Rwanda 2017

    Posted on :Monday , 30th October 2017

    Wood-Mizer started trading in 1982 with the successful launch of the company’s first LT-type sawmill. The simple to use, portable and affordable sawmill was an immediate success. Sawmillers were now able to produce accurately sawn quality timber normally only associated with costlier mills.The availability of affordable sawmilling technology that could grow businesses that suppo. . .

  • Vision City Project Transforming Rwandan Real Estate

    Posted on :Wednesday , 11th October 2017

     Private Real Estate Company Ultimate Developers Ltd is proactively transforming the property business in Rwanda. 

    UDL is directly responsible for the socio-economic transformation of many Rwandans through the work they have done with the Vision City project. Vision City is the biggest residential housing project undertaken in Rwandan history. 
     
    . . .

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