Market News | POWER & ENERGY RWANDA 2021

Market News

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 2019.

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.

RWANDA - Preview 2017

Kigali Masterplan 2040

Kigali Convention Centre - Venue Preview

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.

  • Global Recognition for the Rwandan Sustainable Mobility Providers

    Posted on :Thursday , 13th February 2020

    The Rwanda Utilities Regulatory Authority (RURA) and Ampersand have been listed among Africa's most promising climate and clean energy inventors lined up for the 2020 Ashden Awards.

    The Ashden Awards recognize the most exciting climate action solutions being implemented around the world.

    This year, a total of 44 nominees have been declared, comprising of cities and organisations t. . .

  • AfDB Grant US $8.9m for Ruzizi IV Hydropower Project in Rwanda

    Posted on :Tuesday , 21st January 2020

    Ruzizi IV Hydropower Project in Rwanda has gained US $8.9m approval from the African Development Bank (AfDB), taken from the European Union's Africa Investment Platform (EU-AIP) to help the implementation of the Project.

    At present, two power plants are already in operation: Ruzizi I which builds 29.8MW and Ruzizi II which produces 43.8 MW. Ruzizi III with an estimated 147MW output is un. . .

  • Rwanda Launches 188MVA Shango Power Substation at Kigali

    Posted on :Tuesday , 21st January 2020

    The substation is part of the NELSAP Regional Interconnection Project involving Kenya, Uganda, Rwanda, DRC and Burundi.

    The Rwandan component, at a prediction cost of €111.03 million ($124 million), involves the construction of 286 km of 220kV lines, three substations and the upgrade of two substations.

    The African Development Fund, part of the African Development Bank G. . .

  • Rwanda Solar Energy Ambition Receives Boost of U.S. $9 Million

    Posted on :Tuesday , 22nd October 2019

    Rwanda's energy ambition received a boost following an endorsement of a financial instrument by the Global Innovation Lab for Climate Finance that will gear up the arrangement of solar home systems.

    The institution grants the piloting of solar securitization in Rwanda, which seeks to develop the financial capacities of developers to enable them to expand and meet the demands in the local . . .

  • Development Finance Institution In UK to Invest $300m in African Power Networks

    Posted on :Monday , 10th June 2019

    The UK government’s foreign investment tool, CDC Group, said it would provide more than $300m in a new business to expand electricity networks in Africa, which is one of the biggest hitches to economic development in the world’s indigent continent.  

    CDC chief executive Nick O’Donohoe said, Gridworks Company to get launched soon, and it will make fundi. . .

Expogroup

Expogroup is a full service exhibition organiser with over 23 years experience in International trade exhibitions. Our current portfolio includes 27 annual exhibitions from a diverse range of industries being held across the Middle East & Africa.

EXPOGROUP © 1996 - 2020 | Privacy policy

Facebook

Instant Reply