Market News | Buildexpo Rwanda 2018

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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.

  • Macro investments to boost trade in East Africa

    Posted on :Thursday , 25th October 2018

    Recent economic research and forecasts have found that investments in East African infrastructure construction are set to expand rapidly. Total infrastructure construction output in the region’s largest markets of Rwanda, Ethiopia, Kenya, and Tanzania, is expected to grow from USD 25.9 billion in 2017, to USD 98.8 billion in 2022.

    At present there are about 287 large scale publi. . .

  • Rwanda registers a healthy economic growth rate: International Monetary Fund

    Posted on :Tuesday , 9th October 2018

    The IMF and the World Bank have released the growth estimates for Rwanda to 7.2 percent . The International Monetary Fund(IMF) has retainied the economic growth projection for 2018 at 7.2 percent based on strong industrial policy and favourable climate which helped in boosting agricultural output. Rwanda is one of the fastest growing economies with an average growth rate of 7 percent every year. . .

  • An agreement USD 66.60 million for infrastructural construction signed between Rwanda and India

    Posted on :Monday , 1st October 2018

    Rwanda and India have signed a US$66.60 million (Approximately Frw 56 billion) concessional loan agreement worth US$66.60 million (Approximately Frw 56 billion) towards the construction of the Base- Butaro-Kidaho road project. Dr. Uzziel Ndagijimana, Rwandan Minister of Finance and Economic Planning signed on behalf of the Rwandan Government along with Mr. Tarun Sharma, General Manager and Regi. . .

  • RWANDA PINS MEGA HOUSING PROJECT AS PRIORITY

    Posted on :Saturday , 1st September 2018

    Rwanda Development Bank (BRD) has unveiled a housing project, which promises to ease the shortage of affordable housing in the country.

    A certified study by the City of Kigali, the Ministry of Infrastructure, and the European Union showed that Kigali could face a housing deficit of 344,000 homes by 2020.

    Currently about 800 and 1,000 housing units are constructed in Kigali annua. . .

  • Warehouse construction is the next big target

    Posted on :Tuesday , 13th March 2018

     Developers are currently targeting the warehouse industry in Kenya and somehow moving away from the crowded construction of residential, retail and office space.

    With the construction industry in Kenya witnessing a boom in the residential, retail and office space, developers are currently targeting the warehouse industry as a new avenue to expand.

    Tilisi Developments L. . .

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