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:-
Inflation remains below 8 percent (pushed up from 5% in 2016).
The country maintains its reputation for low corruption
Rwanda's debt-to-GDP ratio at 40 percent is relatively low
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
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.
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.
Paul Mubiligi, the Board Chairman of Southern Province Investment Corporation (SPIC) has announced that a factory is in the process of being set-up in the Kamonyi District. The purpose of the factory will be to brew sorghum beer, a nonalcoholic drink, known locally as ‘Ikigage’. A non-alcoholic drink called ‘Ubushera’ will also be a part of the factory’s agen. . .
The Transportation Sector is set to play a pivotal role under the Economic Development Poverty Reduction Strategy 2, in achieving the goal of increasing international as well as domestic interconnections, boosting the national economy in the process.
The Rwandan Government identifies the transport sector as a key area to foster the growth and development of th. . .
Last year the construction sector in Rwanda was flourishing, so the players in Rwanda’s construction sector are positive for it to be replicated in 2017.
There are some very big projects to be kicked off soon. The Bugesera airport is one example of a major project which is set to become a transportation hub for the East African region and there are many ot. . .
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