the european times - rwanda

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RWANDA

THE EUROPEAN TIMES

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Rwanda’s Fact FileOfficial Name: Republic of Rwanda

Location: Central Africa, east of the Democratic Republic of the Congo

Capital: Kigali

National anthem: “Rwanda nziza” (Rwanda, Our Beautiful Country)

Border countries: Burundi 290 km, Democratic Republic of the Congo 217 km, Tanzania 217 km, Uganda 169 km

Geography: landlocked; most of the country is savannah grassland with the population predominantly rural

Climate: temperate; two rainy seasons (February to April, November to January); mild in mountains with frost and snow possible

Area Total: 26,338 sq km

Country comparison to the world: 149

Land: 24,668 sq km

Water: 1,670 sq km

Terrain: mostly grassy uplands and hills; relief is mountainous with altitude declining from west to east

People Population: 12,337,138 Rwanda is the most densely populated country in Africa

Population growth rate: 2.63%

Local name for citizens: Rwandan (singular), Rwandans (plural)

Ethnic groups: Hutu (Bantu) 84%, Tutsi (Hamitic) 15%, Twa (Pygmy) 1%

Official languages: Kinyarwanda only (offi cial, universal Bantu vernacular) 93.2%, Kinyarwanda and other language(s) 6.2%, French and other language(s) 0.1%, English (offi cial) and other language(s) 0.1%, Swahili (or Kiswahili, used in commercial centres) 0.02%, other 0.03%, unspecifi ed 0.3%

Religions: Roman Catholic 49.5%, Protestant 39.4% (includes Adventist 12.2% and other Protestant 27.2%), other Christian 4.5%, Muslim 1.8%, animist 0.1%, other 0.6%, none 3.6%, unspecifi ed 0.5%

PoliticsGovernment type: republic; presidential, multiparty system

Administrative divisions: four provinces (Est (Eastern), Nord (Northern), Ouest (Western), Sud (Southern)) and one city (Kigali)

Independence: 1 July 1962

Legal system: mixed legal system of civil law, based on German and Belgian models, and customary law; judicial review of legislative acts in the Supreme Court

Head of State: President Paul Kagame (since 22 April 2000)

Head of government: Prime Minister Anastase Murekezi (since 23 July 2014)

Cabinet: Council of Ministers appointed by the President

Elections: President elected by popular vote for a seven-year term (eligible for a second term); election last held on 9 August 2010 (next to be held in 2017)

Economy at a GlanceCurrency: Rwandan Franc (RWF)

GDP (purchasing power parity): US$16.37 billion (2013 est.)

GDP per capita: US$1,500 (2013 est.)

GDP real growth rate: 7.5% (2013 est.)

GDP contributions by sector: agriculture: 31.9%, industry: 14.8%, services: 53.3% (2013 est.)

Industries: cement, agricultural products, small-scale beverages, soap, furniture, shoes, plastic goods, textiles, cigarettes

Total exports: US$538.3 million (2013 est.)

Export commodities: coffee, tea, hides, tin ore

Total imports: US$1.937 billion (2013 est.)

Import commodities: foodstuffs, machinery and equipment, steel, petroleum products, cement and construction material

Source: www.cia.gov

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RWANDA

INTRODUCTION

• President Leading Rwanda’s Successful Transformation 5

• An African Success Story 7

• Playing a Supporting Role: The European Union and Poverty Alleviation in Rwanda 10

• Ambassador Highlights Rwanda’s Strong Ties to the EU 11

• UN Views Rwanda as Model for African Development and Transformation 12

• IMF Bullish on Rwanda 13

• Strong Macroeconomic Fundamentals 14

• Britain Foresees Bright Future for Rwanda 17

• German Ambassador Highlights Rwanda’s Investment Potential 18

• Ambassador Highlights Close Ties between Rwanda and Belgium 19

• Netherlands Positive about Rwanda’s Potential 19

• Kenyan Envoy Highlights Strong Regional Ties 20

• Ambassador Emphasises Ties between Uganda and Rwanda 20

GOVERNMENT

• Independent Republic with Forward-Thinking Leadership 22

BUSINESS AND INVESTMENT OPPORTUNITIES

• High-Potential Economy Achieving Strong Export Growth 25

• Leading Regional Trade and Logistics Hub 26

• Exciting Investment Target in the Heart of the EAC 28

• Privatisation Programme on Track 36

• Rwanda Development Board Offers One-Stop-Shop Services for Investors 38

• Printex Ltd. 39

• Modern, Progressive and Transparent Legal System 40

• RR Associates & Co. Advocates 41

• Rwanda: Fast-Tracking a Knowledge-Based Economy 42

• PSF is the Voice of Rwanda’s Private Sector 43

FINANCE

• An Engine of Growth: Rwanda’s Financial Services Sector is on a Sure Footing 45

• Strong Financial Sector Continues to Grow 46

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RWANDA

RWANDATHE EUROPEAN TIMES

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• Cogebanque 48

• KCB Bank Rwanda 48

• Banking Sector Liquid, Profitable and Growing 49

• Ecobank Rwanda 50

INFRASTRUCTURE

• Building Modern, World-Class Infrastructure 52

• Investing in Powering the Future 54

• Rwanda Energy Group 56

• Ngali Energy 58

• Rwanda Utilities Regulatory Authority 59

• 3E Power 59

• Vast Improvements in Transport Infrastructure 60

• Trans-Africa Container Transport 62

• Akagera Business Group 63

• Construction Sector Growing Rapidly to Meet Demand 64

• Seyani Brothers & Company Ltd 65

• NPD Cotraco Ltd. 66

• Real contractors Ltd. 67

• Staco Ltd. 68

• Satisfying Growing Demand for Residential Property 69

• Modulus 70

MINING

• Developing Natural Resources wile Protecting the Environment 72

• Mining: Key Economic Driver and Investment Target 73

• Coopemikando Mine 76

ARGICULTURE

• The Ministry of Agriculture’s Aspirations for the Sector 78

• Agriculture Mainstay of National Economy 79

• Promoting 21st Century Agriculture 81

HEALTH

• Minister of Health Highlights Impressive Progress and Future Goals 84

• Escalating Demand for High-Quality Pharmaceuticals 85

• Impressive Success through Innovative Healthcare Policies 86

• La Croix du Sud Hospital 87

TOURISM

• The Land of 1,000 Hills a Must-See Destination 89

• Hôtel des Mille Collines by Kempinski 91

• Kigali Serena Hotel 92

• Karisimbi Hotel Kigali 93

• Unique Ecotourism Destination with Wealth of Attractions 94

• Exceptional Facilities for Business and Leisure 96

• Step Town Motel 97

• Okapi Hotel 98

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Introduction

President Leading Rwanda’s Successful Transformation

Paul Kagame, Rwandaʼs President, has led his countryʼs successful drive to transform itself from a crippled nation devastated by genocide to become one of the worldʼs fastest-growing economies. In a speech he gave to the United Nations General Assembly in New York City in September 2014, President Kagame outlined Rwandaʼs progress in the two decades since the genocide ended in 1994. He explained, “In Rwanda, we have focussed on building accountable governance institutions, and renewing our dignity as a nation.

As a result, Rwandans today are among the most opti-mistic and civic-minded people in the world. For us, stability is not an abstraction; it is a reality that abides in the minds and hearts of the people, and the institu-tions they build to sustain it. Once achieved, the horizon expands from poverty reduction, to wealth creation, and the attainment of ever higher measures of human development.”

History of commitment to progressive government

Paul Kagame was born in October 1957 in Rwanda’s Southern Province. His family fled to Uganda in 1960 to escape ethnic persecution and the future president spent 30 years there as a refugee. Determined to resist oppres-sive regimes, as a young man he joined future Ugandan president Yoweri Museveni and his group of guerrilla fighters to launch a war to free Uganda from dictator-ship. Under the new government, he served as a senior military officer.

In 1990, Paul Kagame returned to Rwanda to lead the Rwandan Patriotic Front’s (RPF) four-year struggle to liberate the country and end genocide. The RPF defeated Rwandan government forces in July 1994 and subsequently set Rwanda on its current course towards reconciliation, nation-building and socioeconomic development.

Paul Kagame was appointed Vice-President and Minister for Defence in the Government of National Unity in July 1994, and in 1998 he was elected Chairman of the RPF. In April 2000, he became President of Rwanda after being elected by the Transitional National Assembly. In general elections in August 2010, he was elected President for a second term.

International recognition for leadership

President Kagame has received international recogni-tion for his leadership in promoting peace-building and


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Sector

reconciliation, economic development, good governance, human rights and women’s empowerment, education and technological advances. President Kagame currently serves as co-chair of the UNSG’s Advisory Group on Millennium Development Goals and as co-chair of the International Telecommunications Union’s Broadband Commission.

Paul Kagame is strongly committed to positioning Rwanda as a productive member of the regional and international com-munities. In a speech he made at Chatham House, London, in October 2014, he commented on Rwanda’s role on the global stage. He said, “Rwanda is always in the spotlight, because our tragic history became closely intertwined with the reputation of the international system itself. There is a positive side to the scrutiny. It is helping to bring the story of Rwanda’s recovery to wider attention, and generate curiosity to know more about how exactly we went about solving our problems.”

The President then noted just how far Rwanda has come since the genocide ended. He said, “Rwanda’s economic and social development is built on political development and strong institutions. We have emphasised the impor-tance of consensus-building, national unity, and account-able public institutions. A strong capacity for popular mobilisation at all levels of society was also essential, as we worked to transform mindsets. Everyone matters. Each citizen needs to be convinced of the direction for change, and each one must be afforded the opportunity to offer input to the process.”

Emphasis on nation-building

In the late 1990s, President Kagame hosted meetings every Saturday in the President’s Offi ce where representatives from all Rwanda’s political parties, even those responsible for the genocide, as well as from business, academia, the legal sector and civil society, met to determine the causes of the Rwandan tragedy and to reach a consensus about how to move forward. President Kagame noted in his

London speech, “Since then, the fi ght against corruption and abuse of offi ce has been fi rm and consistent. Well-organised political organisations are an important part of nation-building. The RPF and its coalition partners came to the table with a well-developed programme of action, derived from progressive ideals. But the outcome of these dialogues refl ected a wide national consensus, not just our own.”

The Kagame administration’s approach has achieved undeniable successes. As the President points out, “Inclusive politics and accountable governance are the reasons why Rwanda is not just secure, but stable. They explain why external fi nancing for Rwanda’s public insti-tutions produces measureable development results, year after year. They explain why Rwandans express high levels of trust and satisfaction with the quality of governance in independent surveys. And just as crucially for a society that was as divided as ours, Rwandans increasingly trust each other.” He added, “Rwanda’s successful Eurobond offering in London in 2013 showed that trust in Rwanda is shared in fi nancial markets.”

“Everyone matters.

Each citizen needs to be

convinced of the direction

for change, and each one

must be afforded

the opportunity to offer

input to the process.”

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Introduction

Rwanda, torn apart by ethnic violence 20 years ago, has transformed itself into a peaceful, progressive nation with a democratic government and one of Africaʼs most successful economies. In fact, Rwanda was recently ranked the most competitive nation in East Africa and third in Africa in the World Economic Forumʼs Global Competitiveness Report. Rwanda has achieved healthy GDP growth averaging 7% to 8% per year since 2003 and aims to continue that stellar performance – as well as bring the benefi ts of this growth to more of its population – through its ambitious Vision 2020 initiative.

The Rwandan government has already made significant progress in improving Rwandans’ quality of life. The percentage of the Rwandan population living below the poverty line dropped from 59% to 45% over the past decade and continues to decline. The government’s recently launched Economic Development Poverty Reduction Strategy aims to make Rwanda a middle-income country over the medium term. Fitch ratings service has taken note of Rwanda’s achievements and has upgraded the country’s rating to B+ with a stable outlook.

International confi dence in Rwandan economy

Rwanda has also gotten high marks for economic freedom. Its score in the 2015 Index of Economic Freedom is 64.8, making its economy the 65th-freest in the world this year. This score reflects improvements in half of the 10 economic freedoms, including freedom from corruption and trade freedom. Rwanda is ranked

© Solver Photography

An African Success StoryKigali City Tower


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number four in economic freedom out of 46 countries in the Sub-Saharan Africa region, and its score exceeds the world average. Over the past five years, economic freedom in Rwanda has advanced by 2.1 points, led by 20-point and 15-point improvements in freedom from corruption and investment freedom, respectively. The Index points out that Rwanda’s efforts to reform the economy have contributed to sustained economic growth and poverty reduction.

The World Bank is also confident in Rwanda’s future and has budgeted around €175 million to €218 million per year for Rwanda through its Rwanda Country Partner-ship Strategy 2014-2018. The World Bank’s most recent economic assessment of Rwanda, published in August 2014, notes that Rwanda is one of the few countries anywhere in the world which has managed fast economic growth, robust reductions in poverty, and a narrowing of inequality, all over the same period.

Through the Country Partnership Strategy, the World Bank Group’s International Finance Corporation (IFC)

will provide investments and advisory services to help expand access to fi nance in Rwanda and to support critical sectors of the economy, including agribusiness and infrastructure. “To unlock rapid and uninterrupted growth that is sustainable and inclusive, Rwanda needs to transform the drivers of growth from the public to the private sector by removing key constraints,” says Oumar Seydi, IFC’s Director for Eastern and Southern Africa. He adds, “These constraints include a small fi nancial sector, weak infrastructure (particularly electricity), and low human capital and qualifi ed workers. Under the partner-ship strategy, we aim to expand our support in responding to these challenges.”

Diariétou Gaye, World Bank Country Director for Rwanda, explains that Rwanda is moving into a new development phase. She says, “Rwanda can focus on sec-ond-generation economic reforms of export diversifica-tion, structural transformation, regional integration and financial-sector deepening to accelerate economic growth and boost incomes of the poorest so that Rwandans can advance in their journey to prosperity.”

Kigali

© Bjlongmore - Dreamstime.com

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Introduction

Peace and political stability

Rwanda’s success story is particularly impressive since 20 years ago the country was ravaged by genocide which resulted in the deaths of around 75% of the Tutsi popu-lation. Today, Rwanda is a peaceful, politically stable nation with a population of around 12.3 million, of which around 84% are of ethnic Hutu origin, with 15% Tutsi and around 1% Pygmy. The country’s official languages are Kinyarwanda (a Bantu vernacular), which is spoken by around 93% of the population, and English. Swahili and French are also widely spoken.

Rwanda borders Burundi, the Democratic Republic of the Congo (DRC), Tanzania and Uganda. It is land-locked other than Lake Kivu on its western border. In recent years Rwanda has placed a high priority on regional integration and is a leading member of the East African Community, a regional bloc which also includes Burundi, Kenya, Tanzania and Uganda. As an EAC member, Rwanda enjoys the EAC’s single customs protocol, single-window entry to the region’s two main ports (at Mombasa, Kenya, and Dar es Salaam, Tanzania), access to a region-wide electronic cargo-tracking system, and steadily improving regional transport infrastructure.

Strategic location in the heart of the EAC

Rwanda enjoys a strategic location in the heart of the EAC on both of the region’s two main trade routes, the northern and southern corridors. The northern corridor runs from the Port of Mombasa to Kigali by way of Uganda’s capital, Kampala. The southern corridor runs from the Port of Dar es Salaam to Burundi’s capital, Bujumbura, and then to Kigali. Rwanda’s privileged position at the crossroads of these two major trade routes is a key attraction for international investors.

The Rwandan government is participating in a number of regional transport-infrastructure projects which will help to boost Rwanda’s exports, including an effort to build a central railway corridor in partnership with Tanzania and Burundi which will also connect to the

DRC. Rwanda is also partnering with Kenya, Uganda and South Sudan in another railway project. Rwanda benefits from EAC energy resources and signed an agreement with Kenya in 2014 which will bring nearly 30 MW of additional electricity to the Rwandan power grid. Rwanda is also working with Tanzania and Burundi in building the 90-MW Rusumo hydropower plant in Ngara, Tanzania, and is building the 145-MW Rusizi III and the 287-MW Rusizi IV plants in partner-ship with Burundi and the DRC.

While focusing on EAC integration, Rwanda has also joined other African and international organisations. It assumed a nonpermanent seat on the UN Security Council in the 2013-2014 term and is a member of the African Union, the African Economic Community, and the Common Market for Eastern and Southern Africa (COMESA).

Rwanda still faces a number of challenges. These include poverty, with most of the population surviving through subsistence farming. The Rwandan economy needs addi-tional diversifi cation as well as capacity-building; tourism, minerals, coffee and tea are Rwanda’s main sources of for-eign-exchange earnings at present. Despite Rwanda’s fertile lands and mild climate, food production often does not keep pace with demand. To help solve these problems, Rwanda has rolled out the red carpet for international investors.

Praise from IMF head

In spite of the challenges, Rwanda is clearly an African success story, as Christine Lagarde, Managing Director of the IMF, pointed out on her first trip to the country in January this year. She said, “My visit to Rwanda – one of Africa’s economic success stories – has been extremely fruitful and informative. I was really impressed by the ability of the country to get back on its feet, and all without exclusion, through economic policies imple-mented in recent years. Rwanda’s economic achieve-ments are based on real GDP growth that has averaged 8% a year over the past decade, subdued inflation, and foreign reserves maintained at adequate levels.”

Rwanda has positioned itself as a model of African economic development and progress.


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MASTER REGIOTHE EUROPEAN TIMES

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Playing a Supporting Role: The European Union and Poverty Alleviation in Rwanda

The European Unionʼs Ambassador to Rwanda, Michael Ryan, talks about the great strides the country has already taken, the work that still needs to be done and the role of the EU in supporting economic development, peace, and stability within Rwanda and the wider region.

European Times: What are the competitive advantages offered by Rwanda from an investor’s perspective?

Michael Ryan: Companies can enjoy several benefi ts here. The regulatory framework is improving with a strong judicial and fi scal regime. While the tax incentive structure has not been fully worked out, the government is taking steps in this direction. The investment code, for example, is currently pro-gressing through parliament. I see a society enjoying the benefi ts of rapidly increasing infrastructure development, expanding connectivity through its aviation and ICT network, excellent transport routes, and a sound legal system. When an investor does due diligence on any country, these issues would certainly be a priority. On top of this, Rwanda is an active member of the East Africa Community, and I believe

its close partnership with the European Union sends a strong signal of confi -dence and shared values to potential investors.

European Times: How is the EU supporting economic develop-ment in Rwanda?

Michael Ryan: Andris Piebalgs, the former European Union Commis-sioner for Development, signed the €460 million aid budget for Rwanda in September, covering the next fi ve years. The funding, which is 20% up on the last cycle, will come from the 11th European Development Fund. The EU feels strongly that poverty alle-viation is the underlying objective of its fi nancial support and we are working on a number of projects with this

rationale in mind. In the energy sector, this entails fi nding ways to improve the reliability and security of power supply to the national grid, as well as off-grid solutions. In agriculture, we are working to develop the high value horticulture sector. The EU is offering support for accountable governance with the intention of strengthening institutions such as the ombudsman, the Parlia-ment, the Auditor General, the Ministry of Finance and the National Institute of Statistics, as well as civil society.

European Times: What role does the EU play in promoting stability in the region?

Michael Ryan: The EU is translat-ing political backing for the Peace, Security and Co-operation Framework Agreement signed in Addis Ababa in February 2013 into practical action. This includes measures to improve trade, upgrade infrastructure and provide humanitarian assistance to refugees. We are helping to foster the vibrant Rwanda-DRC border trade, for example. We are also working to secure fi nancing for the Ruzizi III hydroelec-tric project in conjunction with other donors and banks. This will provide a major boost to power production in the region. Finally, we are fully supporting initiatives to disarm militias in the Kivus region. We do this in close collabora-tion with Rwanda and its neighbours, including DRC, and with other interna-tional actors, notably the African Union and ICGLR, the conference of Great Lakes countries.

Michael Ryan, EU Ambassador to Rwanda

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Introduction

THE EUROPEAN TIMES

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Sector

Ambassador Highlights Rwanda’s Strong Ties to the EU

Robert Masozera, Rwandaʼs Ambassador to the EU in Brussels, discusses the close ties between the EU and Rwanda. He also notes Rwandaʼs signifi cant investment appeal.

European Times: Can you describe relations between Rwanda and the EU?

Robert Masozera: Diplomatic relations between Rwanda and the EU are based on mutual respect and understanding. Rwanda’s President Kagame participated in the EU-Africa Heads of State Summit in April 2014, and the EU has allocated €460 million in development aid for Rwanda for the period 2014-2020. The EU rec-ognises the great progress Rwanda has made since 1994 and knows that

Rwanda will use aid support wisely. The Economic Partnership Agree-ments that Rwanda and the EU have signed are benefi cial for both sides.

European Times: Why does Rwanda want to attract investors from the EU?

Robert Masozera: European invest-ment not only creates jobs and revenues but also attracts other global investors. We believe that EU investment in Rwanda is a win-win. Rwanda offers outstanding investment opportunities as well as stability and an excellent business climate, and the EU offers expertise, quality and know-how.

“Investors looking for

a stable and secure

environment in an ideal

location should take a

close look at Rwanda.”

European Times: What are some recent projects of interest to EU investors?

Robert Masozera: The single EAC visa regime will promote tourism throughout the region, while the con-struction of the Kigali Convention

Centre Complex will enhance services for investors and position Rwanda as a conference hub. Rwanda also has major projects underway in ICT, energy and transport infrastructure. Rwanda has implemented a nationwide broadband network and a 4G LTE broadband network, and in the energy sector con-struction has begun on an 8.5 MW solar-power plant which will add 6% to 8% to Rwanda’s power output. These are just few projects among many that have been done in these few years. But beside them, there are other many projects underway.

European Times: What is your personal message about Rwanda?

Robert Masozera: The Rwandan Embassy in Brussels is ready to assist European investors. Rwanda is a beautiful, peaceful, very well governed and business-friendly country with enormous potential. Many people call Rwanda the Singapore of Africa or the Switzerland of Africa. This is because Rwanda has transformed itself to establish very strong and effi cient insti-tutions headed by men and women who are hard-working, resilient and courageous. Rwanda is unique. It is strategically located at the cross-roads of Africa’s main north-south and east-west axes and it is a bilingual country (French/English), making it an excellent hub for business in the region. Investors looking for a stable and secure environment in an ideal location should take a close look at Rwanda.


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Sector

UN Views Rwanda as Model for African Development and Transformation

Lamin Momodou Manneh, the UNʼs Resident Coordinator and UNDP Representative in Rwanda, discusses Rwandaʼs progress and potential.

European Times: What makes Rwanda special?

Lamin Momodou Manneh: Rwanda is one of those unique cases that we can be proud of as Africans. It is a country that is doing things right. The current president has transformed Rwanda from a nation plagued with very serious problems 20 years ago into a country which has become a model for development and transformation in Africa. I am also impressed with Rwanda’s transparent and responsible use of international funds.

European Times: What are the UN’s activities in Rwanda?

Lamin Momodou Manneh: The UN focuses on trans-formational capacity development, deepening governance, promotion of gender equity, employment creation, food security, green growth, human development (particularly education, healthcare and response to HIV/AIDS) as well as humanitarian assistance. The Rwandan government is committed to “trade, not aid” and the UN is happy and

ready to support this. The UN stands behind value addition for agricultural goods, especially concerning non-traditional agricultural products, industrial development, especially in more diversifi ed areas and in the tourism sector. The UN has budgeted around €333 million (US$ 411 million) in support for Rwanda for 2013 to 2018.

European Times: What are some of the challenges Rwanda is facing?

Lamin Momodou Manneh: Rwanda still faces serious challenges in infrastructure development and electricity supplies as well as broadening the industrial sector. All this provides important opportunities for investors. Providing enough skilled human resources is also another challenge for Rwanda, and the government needs to focus more on human capacity development, especially when it comes to responding to critical technical and vocational needs. Rwandan people have the will to learn and grow but the educational facilities need to be further reinforced and their curricula rendered more responsive to requirements of industries. The need for more European assistance in this process is apparent. In this regard, we should acknowl-edge that European countries such as Germany, Belgium, Holland, Sweden and the UK are already providing sig-nifi cant support to technical and vocational development in Rwanda, but they can still do more.

European Times: Why should investors and funding organisations target Rwanda?

Lamin Momodou Manneh: People should not take their eyes off Rwanda. This is a country where Europeans should feel confi dent about investing. Rwanda offers many outstanding opportunities for investors as underscored by its very strong performance in the World Bank’s Doing Business rankings and efforts to make render a major technological and innovation hub in America. The Rwandan government is facilitating foreign investment, there are no serious corrup-tion problems, the political situation is stable and security is excellent. Rwanda is also an excellent base for business for companies looking to trade and establish a presence in the East African Community and the Great Lakes region. I am excited about Rwanda’s progress and I am also excited to be a part of it at this time.

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Introduction

1

IMF Bullish on Rwanda

Through the current Policy Support Instrument (PSI) 2014-2016, the International Monetary Fund (IMF) works closely with the Rwandan government in a number of areas, including by providing policy advice and technical assistance on fi scal, monetary, and fi nancial policies. Mitra Farahbaksh, the IMFʼs representative in Rwanda, discusses the countryʼs recent progress and strong growth potential.

European Times: What is the IMF’s assessment of Rwanda’s economic development so far?

Mitra Farahbaksh: Our outlook for Rwanda remains positive. Growth rebounded last year and infl ation remains well contained. We expect GDP growth rates to rise gradually towards 7 to 7.5% in the medium term, while infl ation should gradually approach the medium-term target of 5% from below. The Economic Devel-opment and Poverty Reduction Strategy for 2013-18 is focussed on economic transformation, rural development, and youth employment. The strategy is rightly aimed at further reducing poverty. I think that the continued roll-out of planned measures and the successful inclusion of the private sector in leading economic development

will help make sizeable inroads in making growth even more inclusive and further reducing inequality.

European Times: Are the people of Rwanda benefi ting from this economic success?

Mitra Farahbaksh: Rwanda’s poorest have benefi ted from the country’s economic growth. The government has been suc-cessful in lowering poverty, with the poverty rate – the number of people below a basic-needs poverty line as a proportion of the population – falling from 60% to 45% between 2001 and 2011. The government has targeted the agricultural sector, employment, and gender equality in its drive to share the fruits of Rwanda’s sustained high growth more widely. The strong macroeconomic growth performance was accompanied by substantial improvements in living standards, as witnessed by the two-thirds drop in child mortality, and the attainment of near-universal primary school enrolment.

European Times: What government strategies have contributed to this growth?

Mitra Farahbaksh: Agriculture has been the main driver of growth and poverty reduction in Rwanda, sig-nifi cantly lifting rural households out of poverty. Better agricultural productivity has been a key factor, which was achieved through provision of seeds and fertilisers to farmers, and also more access to regional markets. Capacity is being built at the grassroots levels, with farmers being educated on land use. Rwandan households have diversifi ed their income portfolios by taking up non-farm activities, in addition to their agricultural activities. The fall in the average fertility rate has also been helpful.

European Times: What are the IMF’s goals for Rwanda?

Mitra Farahbaksh: The IMF fully supports the govern-ment’s objectives of mobilising domestic revenue to reduce aid dependency, increasing exports, and removing impedi-ments to private-sector development, including by accel-erating infrastructure projects and creating an enabling environment for a successful economic transformation to a more diversifi ed, private-sector-led growth strategy. The government’s commitment to well-designed macroeconomic policies, strong governance and inclusive growth has paved the way for achieving these objectives.

Mitra Farahbaksh, IMF representative in Rwanda


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Rwanda has made impressive progress in stabilising its economy and bringing it back to pre-1994 levels. The countryʼs GDP growth has averaged 7% to 8% per year since 2003 and infl ation has been reduced to the single digits while the public debt-to-GDP ratio is healthy. Rwandaʼs GDP grew by 7.8% in the third quarter of 2014 alone, following an increase of 7.5% in the fi rst quarter of the year and 6.1% in the second quarter. In its sixth economic update on Rwanda, the World Bank Group forecasts a GDP growth rate of 6.6% for the country in 2015.

In recognition of Rwanda’s strong performance, inter-national credit-rating agency Fitch upgraded Rwanda’s long-term foreign and local currency Issuer Default Ratings (IDR) from B to B+ in July 2014. “Rwanda certainly has been one of Africa’s great success stories. There are two main reasons why we took the decision to upgrade Rwanda, the first being a track record of prudent and coherent fiscal and monetary policy. The second is

that Rwanda really has a stellar growth record,” explains Carmen Altenkrich, Fitch’s Director, Sovereign Group.

Christine Lagarde, IMF Managing Director, visited Rwanda in January this year and praised the Rwandan government for its “fiscal and monetary policies [which] have been consistently at the centre of the effort to maintain macroeconomic stability.” She added, “The

Strong Macroeconomic Fundamentals

Butare

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Introduction

Rwandan government has sustained its efforts to improve public financial management, good governance, and the business environment, all of which has placed Rwanda among the top African economies in the World Bank’s Doing Business indicators.”

Services sector top contributor to GDP

The services sector has been the top contributor to Rwanda’s GDP growth in recent years and continued to dominate the country’s GDP in 2014. Rwanda’s fastest-growing sectors last year were ICT, which grew by an impressive 25%; mining (22%); real estate (14%); food crops (24%); trade (12%); and construction (7%).

In the ICT sector, Rwanda launched a Fourth Genera-tion Long-Term Evolution (4G LTE) Internet network in November 2014, a boost for business in general and for the ICT sector in particular. Small and medium-sized ICT companies will play an increasingly important role in Rwanda’s economy, according to Zhao Houlin, Secre-tary-General of the International Telecommunications Union. On a visit to Rwanda in February this year, he said, “Rwanda’s ICT SMEs are key to restructuring the national economy.”

East Africa’s easiest country to do business in

One reason for Rwanda’s outstanding GDP growth is that the country has made impressive progress in improving its business climate. As the Rwanda Development Board points out, the Rwandan government’s radical reforms have made it easier for businesses to begin operating, get credit and pay taxes. Thanks to reforms implemented in 2012, for example, a new business can be registered in just six hours. In the World Bank’s Doing Business Report 2014, Rwanda was the most improved economy worldwide since 2005, coming in 32nd out of 189 countries. The report also cites Rwanda as the easiest country in East Africa to do business in and the second in Africa overall.

One stumbling block for Rwanda’s economy in the past was the country’s land-locked location. Now, thanks to

Rwanda’s membership in the East African Community, enterprises operating in Rwanda benefit from stream-lined access to the international ports at Mombasa and Dar es Salaam as well as Rwanda’s trade advantages and partnerships with its EAC neighbours.

Rwanda has been steadily increasing its exports, although it still faces a trade deficit. In the first eleven months of 2014, total exports rose by 4.9% in value and 5.4% in volume, while imports increased by 8.5% in value and 3.9% in volume. With informal cross-border trade included, exports covered 29.3% of imports against 30.7% over the same period in 2013.

Global lending organisations confi dent

While the Rwandan government emphasises a “trade, not aid” agenda, support from international organisations still underpins Rwanda’s economic growth. “Foreign aid and the effective use of it have played a critical role in growth and macroeconomic stability in Rwanda,” says Toru Nishiuchi, a World Bank Group economist. Rwanda benefi ted from an IMF-World Bank Heavily Indebted Poor Country debt-relief initiative in 2005 and 2006. In 2010, in recognition of Rwanda’s economic progress, the IMF upgraded its assistance for Rwanda to a Policy Support Instrument.

The World Bank is also bullish on Rwanda and has committed substantial support for the country through its Rwanda Country Partnership Strategy 2014-2018. Explaining the goal of this programme, Diariétou Gaye, World Bank Country Director for Rwanda, says, “Rwanda can continue to build on its remarkable two-decade-long turnaround.”

Pillars of the World Bank partnership are increased support for the private sector and more investment in transport and energy infrastructure (including an addi-tional 450 MW of energy capacity) to bring down the costs of doing business and help attract more private investment.

The World Bank’s most recent economic update on Rwanda singles out the mining sector as a major factor in keeping Rwanda’s GDP growth on track and creating more higher-paid jobs in the coming years. “The produc-


16

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tion capacity and export earnings of Rwanda’s mining sector have progressively increased,” says Rachel Perks, World Bank Group mining specialist and one of the lead authors of the World Bank report.

To maximise benefits from mining, the report points out, Rwanda needs to focus on improving the legal and regu-latory environment for investment in mining projects, building geological knowledge, ensuring prudent revenue management and improving labour conditions. Growth in mining revenues will also depend on increas-ing production capacity; the government estimates that the mining sector is currently performing at only around 20% of its potential.

The agriculture sector

is another target of the World Bank’s partnership strategy, since developing this sector can directly benefi t Rwanda’s rural residents and help the country reach its poverty-reduction targets. The World Bank Group plans to irrigate an additional 14,000 hectares of marshlands and hillsides and improve rural roads throughout Rwanda so that small-scale farmers can connect to new markets and increase their family incomes.

Improving institutional capacity, public services, and links

with the regional economy are additional priorities in the World Bank programme. To help Rwanda reach these goals, the World Bank Group will build on its current portfolio of a net commitment of almost €526.7 million and invest around €878 million or more new resources up to 2018 to support Rwanda’s journey to prosperity.

Focus on attracting FDI

Attracting more FDI is crucial to Rwanda as it pursues its ambitious economic-development goals. At a recent meeting of Rwanda’s leading development partners, Claver Gatete, Minister of Finance and Economic Planning, commented, “The Rwandan economy will maintain steady growth if foreign investors continue to target this country.”

Minister Gatete also highlighted the importance of job training, particularly of Rwanda’s youth, to provide the right human resources for investors as well as help raise the standard of living of the country’s people. He said, “Our youth-employment programme should ensure that our young people have the proper skills and that the private sector is involved in job-creation initiatives.”

The Rwandan government’s economic policies will continue to be geared towards ensuring sustainable growth, attracting FDI and making the economy more inclusive. Rwanda, an African success story, clearly has a bright future.

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Introduction


1

Britain Foresees Bright Future for Rwanda

William Gelling, the British High Commissioner to Rwanda, discusses the partnership between the two countries. He also highlights the great progress Rwanda has made over the past two decades as it builds a modern economy.

European Times: Can you describe Britain’s programmes in Rwanda?

William Gelling: We have a very signifi cant aid programme that is highly focused on the education sector. We want education to help ensure a brighter future for the country. We also support education for women and reducing gender-based violence. Another of the efforts we support is aimed at consolidating border posts into one-stop shops. It is important to note the history of bilateral relations between the UK and Rwanda. Before the genocide, Britain had limited ties

with Rwanda. Over the past 20 years, however, Rwanda has become one of Britain’s largest benefi ciaries. We have provided around €110 million per year to this country.

European Times: What pro-grammes is the embassy planning for the future?

William Gelling: We have been working closely with the government and now we are planning to expand our work in the private sector, which we see as the key to the country’s economic development. One priority is to reduce electricity costs.

European Times: Why should investors target Rwanda?

William Gelling: Rwanda is extremely safe. More and more companies from elsewhere in East Africa are coming here because of the better security, less red tape and the lack of traffi c. It is also extremely easy to start a business in Rwanda now thanks to the govern-ment’s reform measures. Several sectors offer strong potential, including ICT, tea production, food processing and added-value manufacturing in the agriculture sector, among others. The country is crying out for energy investment, and Rwanda offers access to a market of around 100 million people within fi ve hours by car. The key message is that Rwanda seems to have a very positive future.

European Times: What are some challenges for companies here?

William Gelling: The number one challenge is the cost of electricity. Transport is also an issue since Rwanda is land-locked, and the tax system is still somewhat unpredictable. In spite of these challenges, Rwanda is experienc-ing a meteoric rise after the tragedy of the genocide. Rwandans really want to believe in the success story that Rwanda can be.

European Times: What is your personal message to our readers?

William Gelling: Rwanda is on the cusp of a truly fl ourishing economy. Come and be part of it!


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1

German Ambassador Highlights Rwanda’s Investment Potential

Peter Fahrenholtz, Germanyʼs Ambassador to Rwanda, discusses the ties between the two countries. He also highlights Rwandaʼs recent economic progress and its investment appeal in many sectors.

European Times: Can you describe the diplomatic rela-tionship between Germany and Rwanda?

Peter Fahrenholtz: Germany has been having diplomatic relations with Rwanda since 1962. Our development cooperation with Rwanda focuses on three areas: vocational training, par-ticularly to help young Rwandans fi nd jobs; developing the private sector in a sustainbable way; and assisting Rwanda in its decentralisation and good governance efforts. Germany is also supporting a number of social

projects in Rwanda, including building schools, providing assistance to villages, offering scholarships for Rwandan students, and other projects. A number of German NGOs are present in Rwanda as well.

European Times: Not so many German companies are operating in Rwanda as of yet. What can the country do to attract more German investors?

Peter Fahrenholtz: Investors will not come to a country unless they are given a reason to. Rwanda needs to reach out, market itself and be more proactive in the search for investors, particularly investors from Europe, since European investors have proven to be reliable partners. Rwanda is receiving so far instead second-rate investors, and such investors can fail. Many potential investors around the world know little about Rwanda except that there was the genocide and do not realise how much progress the country has made since then. For example, Rwanda has sent no trade missions to Germany for the past two years but is planning to do so in 2015. The German Embassy in Rwanda participated in the African Infrastructure Forum in Munich last December together with the Rwandan State Minister for Infrastructure to help promote Rwanda’s investment appeal, and we also organise events here in Rwanda to attract investors. The Federation of German Industry has identifi ed East Africa as one of the regions globally following the BRICS. Also, Rwanda is a good base for projects looking at the whole East African market.

European Times: Why should European investors choose Rwanda?

Peter Fahrenholtz: There are many opportunities in a wide range of sectors in Rwanda. These include infrastructure (including new air links), energy, mining, tourism (including a new convention centre as well as hotels and tourism services throughout the country), healthcare, ICT, value adding of agricultural products and coffee and tea production, among others. Rwanda also needs more investment in manu-facturing, and German investors have a lot to offer concerning manufactur-ing projects. For investors, Rwanda is an excellent choice. It has little cor-ruption, good economic governance, an effi cient administration, excellent communication networks such as 4G internet or mobile phone connec-tivity, no ethnic problems, political stability, and strong growth potential of over 7% per year overall. Also, the capital market is very liberal, allowing free movement of capital out of the country. I believe that Rwanda is a force for stability in this region.

“There are many opportunities

in a wide range of sectors

in Rwanda.”

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IntroductionSector

Ambassador Highlights Close Ties between Rwanda and Belgium

Belgium is a major international partner for Rwanda. Arnout Pauwels, Belgian Ambassador to Rwanda, discusses ties between the two countries.

European Times: Can you describe the relationship between Belgium and Rwanda?Arnout Pauwels: For well-know historical reasons, the links between the two countries are broad and deep. These relations are the foundation for cooperation in the fi eld of commerce, investment and development cooperation. Belgium is Rwanda’s top European trade partner and the Belgian embassy is among the largest in the country. Belgium is providing major support for Rwanda’s energy and healthcare sectors as well as the government’s decentralisation initiative and Trademark East Africa, which focuses on promoting regional trade and the integration of Rwanda into the East African community.

European Times: Why should European investors and companies target Rwanda?Arnout Pauwels: In addition to its domestic market of 12 million, Rwanda offers a strategic location in East Africa as well as safety and stability. A stable and predictable investment climate is essential for investors. Rwanda offers that. Trade companies can access the Democratic Republic of Congo, and as transport-infrastructure projects move forward, particularly new rail links, Rwanda will be even more attractive as a logistics hub.

European Times: What are Belgium’s goals for Rwanda? Arnout Pauwels: Belgium will continue to serve as a voice for Rwanda in the EU. Rwanda is making great progress. If the present speed of change is maintained, it will be a very different country in a few years. Its government has dem-onstrated leadership and vision, and Rwanda offers great quality of life as well as quite a few tourism attractions, most famous of which are the mountain gorillas.

Netherlands Positive about Rwanda’s Trade Potential

Leoni Cuelenaere, Ambassador of the Netherlands in Rwanda, discusses ties between the two countries and highlights Rwandaʼs investment potential.

European Times: What are some of the Nether-lands’ current projects in Rwanda?

Leoni Cuelenaere: The Netherlands favours a “trade, not aid” agenda and is promoting Rwanda’s trade activities. We have also budgeted €50 million in support for projects in Rwanda concern-ing water management, justice, food security, media development, child nutrition in partnership with UNICEF, expansion of the electricity grid and other areas. The Netherlands is particularly involved in agriculture projects since Rwanda’s agriculture sector has great potential and both countries are densely populated and largely agricultural. The embassy provides information for Dutch investors on doing business in Rwanda and helps potential investors make local connections.

European Times: Why should European investors choose Rwanda?

Leoni Cuelenaere: Rwanda is a stable country with low cor-ruption and a government committed to economic and social development. Although a small market, Rwanda has a strategic location in the heart of Africa and is an excellent base for trade with Uganda, Kenya, the eastern Congo and other countries. Dutch investment in Rwanda includes KLM, a 40% share in BPR/ RABO Bank, Bralirwa and Minimax. Investors should view Rwanda as a fi rst step towards exporting to regional markets.


20

Kenyan Envoy Highlights Strong Regional TiesKenyaʼs High Commissioner to Rwanda, John Mwangemi, discusses the strong ties between the two countries.

European Times: What is the role of the Kenya High Commission in Rwanda?

John Mwangemi: Kenya is currently concentrating on promoting regional economic development within the EAC, and the High Com-mission plays an important role in this effort. Kenya’s pri-orities for the EAC are trade liberalisation, investment, transfer of human capital, and improved diplomatic relations. The High Com-mission recognises Rwanda’s

importance to the EAC’s future.

European Times: What are some of Kenya and Rwanda’s joint projects?

John Mwangemi: The High Commission is involved in many trade commissions and projects with Rwanda, including our northern corridor integration projects with Uganda. This includes building new regional infrastructure most notably the development of a standard gauge railway and oil pipeline which will run from Mombasa, Kenya via Kampala, Uganda to Kigali, Rwanda with a branch line to Juba, South Sudan by the year 2017. Kenya is making major improvements to the Port of Mombasa, which now hosts a single customs union manned by customs offi cials from EAC partner states. In addition, Kenya Ports Authority opened a liaison offi ce in Kigali in 2013.

European Times: Has Rwanda attracted invest-ment from Kenya?

John Mwangemi: Kenyan investors have a strong and growing presence in Rwanda in many sectors, including retail sales, banking, insurance, hospitality and tourism. Both Rwanda and Kenya have achieved political stability and Kenya’s improvements to the Port of Mombasa will help boost Rwandan exports. I foresee a very bright future for both countries.

John Mwangemi, Kenyaʼs High Commissioner to Rwanda

Ambassador Emphasises Ties between Uganda

and Rwanda

Richard T. Kabonero, Ugandaʼs Ambassador to Rwanda, discusses the ties between the two countries and notes Rwandaʼs investment potential.

European Times: What is the relationship between Rwanda and Uganda?

Richard T. Kabonero: Uganda and Rwanda have always had strong ties, and today both countries are working together as members of the East African Community. Rwanda is

Uganda’s top trade partner, and the two countries have many infrastructure projects in the works under the Northern Corridor Integration as well as cooperation in education, pro-tection of the environment including protecting the UNESCO World Heritage Site where gorillas live. The two countries are undertaking critical regional projects like the railway from Mombasa to Kigali, the Kampala Kigali oil pipeline, and the single East African Tourism Visa (EATV). European Times: What is your embassy’s mission?

Richard T. Kabonero: Our mission is to promote trade and investment, eliminate trade barriers such as delays at borders, ensure peace and security, and make sure the EAC integration process moves forward. We have established one-stop border posts operating around the clock and we are cooperating in lowering the cost of doing business in our region.

European Times: Why are Ugandan investors targeting Rwanda?

Richard T. Kabonero: Ugandan investors see Rwanda as a stable market as well as a gateway to other markets in the region and have invested in many sectors here.

Richard T. Kabonero, Ugandaʼs Ambassador to Rwanda

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Government

• Independent Republic with Forward-Thinking Leadership


22


1

Independent Republic with Forward-Thinking Leadership

Rwanda is a republic which declared its independence from a Belgium-admin-istered UN trusteeship in 1962. Its government is a multiparty democracy led by a President and Prime Minister and based on a constitution. Rwandaʼs most recent constitution was adopted through a 2003 referendum.

Parliament


Government Organisation

Executive Branch The Chief of State is the President, currently Paul Kagame (since April 2000). The Head of Government is the Prime Minister, currently Anastase Murekezi, appointed in July 2014. The Prime Minister and the members of the Council of Ministers (cabinet) are appointed by the President.

Legislative BranchThe legislative branch is the bicameral Parliament (Inteko Ishinga Amategeko or Parlement) which consists of a Senate (Umutwe wa Sena or Sénat) and a Chamber of Deputies (Umutwe w’Abadepite or Chambre des Députés). The Senate has 26 members, 12 indi-rectly elected by provincial and sectoral councils representing each province and the city of Kigali, eight appointed

by the President, four appointed by the Political Organisations Forum, and two representing institutions of higher learning. All members serve eight-year terms.

The Chamber of Deputies has 80 members, of which 53 are elected by direct popular vote using the party-list proportional representation system, 24 women are elected by electoral colleges from each province and the city of Kigali, two members are elected by the National Youth Council, and one member is elected by the Federation of the Associations of the Disabled. All members serve fi ve-year terms.

Judicial BranchRwanda has a mixed legal system based on German and Belgian civil-law models and customary law. The highest court is the Supreme Court, which

reviews legislative acts. It is made up of the court president, vice president, and 12 judges. Judges on the Supreme Court are nominated by the President on the recommendation of the Cabinet and the Superior Council of the Judiciary. The court president and vice president are appointed for eight-year non-renew-able terms.

Subordinate courts are the High Court of the Republic; commercial courts, including the High Commercial Court; intermediate courts; primary courts; Gacaca, a special court established in 2001 to try cases of genocide against the Tutsis; and specialised military courts.

Key leaders

President Paul KagamePaul Kagame was born to Tutsi parents

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Government

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Sector

in Rwanda in October 1957 and spent his childhood in exile in Uganda, where he served in the armed forces before forming the Rwandan Patriotic Front (RPF). As the leader of the RPF, he achieved victory over Rwanda’s incumbent Hutu government in July 1994, which effectively ended the Rwandan genocide. Under his leadership, Rwanda has developed a fl ourishing economy. President Kagame has become a well-known advocate for new models of foreign aid designed to help recipients become self-reliant. Serving as president since 2000, in August 2003 he won a landslide victory in the fi rst national elections held since his gov-ernment had taken power in 1994, winning 95.5% of the votes.

Prime Minister Anastase Murekezi Born in Rwanda’s Nyaruguru District in 1952, Anastase Murekezi has a bachelor’s degree in agricultural engineering from Belgium’s University of Leuven. He has served in many senior government posts, including Minister of State in charge of Industry and Investment Promotion, Minister of Agriculture and Animal Resources, and Minister of Public Service and Labour.

Elections

Rwanda has universal suffrage with all citizens aged 18 or over eligible to vote. The President is elected by popular vote for a seven-year term and is eligible for a second term. The last presidential election was held in August 2010 and the next will be held in 2017.

The last Senate elections were held in September 2011 and the next will be held in 2016. The last Chamber of Deputies elections were held in September 2013 and the next are scheduled for September 2018.

Cabinet Ministers

Minister of Local Government (MINALOC): Francis Kaboneka

Minister of Natural Resources (Land, Forests, Environment and Mining): Dr. Vincent Biruta

Minister of Sports and Culture (MINISPOC): Joseph Habineza

Minister of Youth and ICT: Jean Philbert Nsengimana

Minister of Cabinet Affairs (MINICAAF): Stella Ford Mugabo

Minister of Finance and Economic Planning (MINECOFIN): Claver Gatete

Minister of Agriculture and Animal Resources (MINAGRI):Gerardine Mukeshimana

Minister of Defence (MINADEF): General James Kabarebe

Minister of Disaster Management and RefugeeAffairs (MIDIMAR): Séraphine Mukantabana

Minister of Justice and Attorney General (MINIJUST): Johnston Busingye

Minister of Public Service and Labour (MIFOTRA): Judith Uwizeye

Minister of Health (MOH): Dr. Agnes Binagwaho

Minister of Education (MINEDUC): Professor Silas Lwakabamba

Minister of Internal Security (MININTER): Sheikh Mussa Harerimana

Minister of Foreign Affairs and Cooperation (MINAFFET): Louise Mushikiwabo

Minister of Trade and Industry (MINICOM): François Kanimba

Minister in the Offi ce of the President (MINIPRESIREP): Venantia Tugireyezu

Minister of Infrastructure (MININFRA): James Musoni

Minister for Eastern African Community (MINEAC): Valentine Rugwabiza

Minister of Gender and Family Promotion (MIGEPROF): Oda Gasinzigwa


24

Business & InvestmentOpportunities

• Leading Regional Trade and Logistics Hub

• Exciting Investment Target in the Heart of the EAC

• Privatisation Programme on Track

• Rwanda: Fast-Tracking a Knowledge-Based Economy

“Rwanda is the easiest place to do business in Africa and is a gateway to

a much larger market.”Jean-Philbert Nsengimana, Minister of Youth and ICT

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1

High-Potential Economy Achieving Strong Export Growth

François Kanimba, Rwandaʼs Minister of Trade and Industry, highlights his ministryʼs recent achievements and goals. He also discusses opportunities for investors in Rwanda.

European Times: What is the mission of the Ministry of Trade and Industry?

François Kanimba: This ministry aims to facilitate Rwanda’s economic trans-formation through enabling a competi-tive private sector which is integrated into regional and global markets, while ensuring a level playing fi eld for investors as well as protecting the rights of consumers.

European Times: What are some of Rwanda’s recent achievements concerning trade and industrial development?

François Kanimba: Rwanda’s domestic production has improved in all sectors and exports of goods and services averaged 23% annual growth between 2010 and 2013, mainly driven by mining, manufac-

turing and informal cross-border trade. Rwanda has put in place a plan to develop the cross-border market to support trade with neighbouring countries. The National Export Strategy (NES) was revised to focus better on key intervention to improve the competitiveness of exporters, broaden the market access and alleviate constraint to access trade fi nance. The cost of trading across the border reduced signifi cantly following the implementation of the single custom territory through the northern corridor and now similar reforms are being undertaken on the central corridor through Dar es Salaam port. Rwanda’s ranking in the Logistic Performance Index rose from 151 in 2010 to 80 in 2014. The logistics and distribution services strategy for Rwanda was developed with the vision to transform Rwanda into a regional trade hub. The key logistics project to be implemented shortly include the Kigali Logistic Platform, bonded warehouses at the busiest trade borders, off-dock facilities in Mombasa and upgrading the air cargo centre at Kigali international airport.

In industry, the fi rst phase of the Kigali Special Economic Zone (SEZ) was fully operational in 2014 and 15 companies are now operational with phase two nearing development completion and 80% of the plot being fully booked. The Ministry of Trade and Industry has designed a Domestic Market Recapturing Strategy (DMRS) to increase domestic production for local consumption and reduce import. An institutional framework to support SMEs has been operationalised. The com-bination of all these efforts resulted in an accelerated growth of industrial GDP which reached 7.8% in 2014.

European Times: Why should investors target Rwanda?

François Kanimba: Rwanda is a fast-growing economy with a globally recognised, business-friendly envi-ronment. It is ranked the third-best country in Africa for doing business after Mauritius and South Africa and the fi rst in East Africa. In addition, Rwanda’s participation in the EAC and COMESA free-trade areas provides free access to a growing regional market. Rwanda’s leadership has set the ambitious target of upgrading the country’s status from least-developed to middle-income by 2020. Strong public-private partnerships will help Rwanda achieve this goal. Rwanda enjoys duty-free and quota-free access to the EU and US markets through the EU trade-facilitation arrangement for least-developed countries and will soon benefi t from the EAC-EPA agreement. Rwanda is also a benefi ciary of the AGOA (African Growth and Opportunity Act), which provides quota-free and duty-free access to the US market. In addition to opportunities in Rwanda’s traditional export sectors (coffee, tea and minerals), investors can benefi t from growth potential in horticulture, apparel, processed agricultural products, con-struction materials, pharmaceuticals, packaging, textiles, leather processing, fi nancial services, ICT, green energy, light manufacturing, tourism, health-care, and business-process outsourcing. Rwanda’s Ministry of Trade and Industry encourages public-private partnerships as a means of boosting industrial production and welcomes investment that will add value to local products and bring in new know-how and technologies.

Business & Investment Opportunities


26

Leading Regional Trade and Logistics HubRwanda aims to become a leading regional trade and logistics hub, building on its strategic location in the centre of the East African Community as well as its privileged access to regional markets through its membership in the Southern Africa Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). The EAC has also signed an Interim Economic Partnership Agreement and an “Everything but Arms” treaty with the EU which allows for duty-free and quota-free EAC exports to EU markets as well as extended rules of origin for farming, fi shing and clothing.

Kigali International Airport


In addition, Rwanda has signed a number of bilateral free-trade and investment agreements, including with the US, where exports from Rwanda can enter the US market on a duty-free and quota-free basis thanks to the African Growth and Opportunity Act and the Generalised System of Pref-erences. Rwanda has also signed bilateral trade and invest-ment agreements with South Africa, BLEU (the Belgium-Luxembourg Economic Union), Germany, Korea, Mauritius and Switzerland. At the signing of the US-Rwanda invest-ment treaty in December 2011, US Trade Representative Ron Kirk commented, “The US sees Rwanda as a leader in seeking to transform its economy through open trade and investment.”

Streamlining regional connections

To step up its trade activities, Rwanda is focussing on improving its transport links to regional markets. At a recent Services and Investment Forum held in Kigali, Rwanda’s Minister of Trade and Investment, François Kanimba,

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Business & Investment OpportunitiesSector

pointed out that improvements in border services have signif-icantly decreased the costs of shipping to and from Rwanda as well as reduced transport times, especially to the inter-national ports in Mombasa and Dar es Salaam. Neverthe-less, Minister Kanimba noted, “The cost of trading across borders still affects the cost of shipping goods from Kigali. Our ambition of making Rwanda a regional trade and logistics hub will be achieved only through multi-facilitated partnerships.”

Rwanda has already made signifi cant progress in stream-lining regional connections through signing the Single Customs Territory agreement with Kenya and Uganda. A similar agreement is under negotiations with Tanzania. The Northern Corridor Integration and the Central Corridor Integration projects will also boost Rwanda’s regional trade since Rwanda lies at the crossroads of these major trade arteries.

Other initiatives in the works include signifi cant road, rail and airport upgrades within Rwanda and between Rwanda and its trade partners. Rwanda is also building the Kigali Logistics Platform. Minister Kanimba explains, “This dry port will facilitate quick transport turnarounds and reduce costs. Once such logistics services are up and running, they will attract business from transporters in other countries.”

Spurring on industrial development

Along with improving its transport infrastructure, Rwanda is spurring on the expansion of its industrial activities. The Rwanda Development Board points out that the Rwandan government aims for the industrial sector (including man-ufacturing, construction and mining) to contribute 20% of Rwanda’s GDP by 2018, which requires an annual growth rate of 14%. Rwanda’s industrial policy aims at increasing domestic production, improving export com-petitiveness and creating an enabling environment for industrialisation.

The Rwanda Private Sector Development Strategy focuses on developing a more competitive manufacturing sector, including agro-processing, which now accounts for 43% of Rwanda’s manufacturing output and 7% of GDP. Invest-ments in agro-processing have grown by an amazing 675% over the past three years, according to the RDB.

Challenges to industrial growth include the need for more and better transport infrastructure as well as reliable supplies of electricity and water. A major new water system at Bugesera Industrial Park is to be operating within the next two years to help meet this need. In addition, Rwanda will boost its power capacity by importing around 30 MW of power from Kenya and 400 MW from Ethiopia.

Rwanda is working hard to reduce its trade defi cit, currently around 15% of GDP. The Buy Local-Twigire campaign by the Ministry of Trade and Industry aims to boost consump-tion of locally made products through enhancing quality standards as well as branding and packaging.

One positive sign is a strong growth in Rwanda’s exports to other EAC countries, especially exports of tea, coffee, hides and skins, vegetables and alcoholic beverages. Minister Kanimba says, “We expect sustained high growth of our exports in the EAC in the next decade.” The EAC is now Rwanda’s top export market, accounting for 35% of the total, followed by the EU at 32%.

Incentives for investment in industry

To stimulate local and foreign investment in industry, Rwanda has developed a number of fi scal and non-fi scal incentives, including zero corporate tax for companies operating in the Kigali Special Economic Zone. Rwanda has also established industrial parks at Bugesera and Kicukiro. During a recent tour of the new Master Steel plant in Kicukiro, Minister Kanimba commented, “When we look at the new industrial ventures being launched in Rwanda, we are confi dent that the country’s industrial output will grow signifi cantly in the next fi ve years.”

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The Rwandan government says the KivuWatt project could double the countryʼs electricity production.

While making these impressive economic and social advances, Rwanda has also maintained stable infl ation and exchange rates, and the Rwandan government is now known for its sound macroeconomic management and robust fi scal disci-pline. In fact, with its thriving, business-oriented economy, Rwanda has often been called “the Singapore of Africa”. The administration of President Paul Kagame has made progress in lifting the Rwandan people out of poverty while earning the country a reputation as a desirable tourism desti-nation, emerging fi nancial and technology hub, outstanding investment choice, and up-and-coming bilingual (French and English) services centre.

Rwanda’s Vision 2020 strategy focuses on stimulating continued economic development through supporting private investment. The Rwandan government recognises that foreign investors are essential to the success of the Vision 2020 programme and continues to implement reforms and offer incentives to keep FDI fl owing in.

As an investment choice, Rwanda has all kinds of attractions. In the two decades since its devastating genocide, Rwanda has pursued an ambitious reform programme that has made it the 10th-fastest-growing economy in the world, with an average 7% to 8% annual GDP growth since 2003. Rwanda also introduced measures that allowed it to become, in 2010, the fi rst African nation to be named the World Bankʼs top business reformer. And, through a drive to promote gender equality, Rwanda became in 2008 the fi rst country in the world to have more female than male members of parliament.

Exciting Investment Target in the Heart of the EAC

© Rwanda Energy Group

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Exceptional business climateRwanda has created an exceptional business climate. The World Bank’s Doing Business Report 2014 ranks Rwanda number two in Africa in ease of doing business and 32nd worldwide. In addition, the World Economic Forum’s Global Competitiveness Report 2013-2014 ranks Rwanda the most competitive place to do business in East Africa and the third in Africa. Rwanda has maintained political stability since the genocide ended in 1994 and has earned a reputation as a benchmark among African nations thanks to its efficient institutions, technological progress, commitment to a rule of law and fight against corruption.

Top 10 reasons to invest in Rwanda

The Rwanda Chamber lists the top ten reasons to invest in Rwanda: zero tolerance for corruption, a vibrant and growing economy, a stable political environment, a good mix of business and leisure attractions, an open and competitive market, high-quality ICT infrastructure and services, the Kigali Free-Trade Zone, investment options in many sectors, a vibrant local culture, and membership in the East African Community. International investors are taking note of these attractions. In 2013, FDI into Rwanda increased by 6.3% over the 2012 total, making Rwanda one of the top 10 countries in Africa in attract-ing FDI.

A 2012 report by Global Risk Insights singles out three main factors that make Rwanda a desirable investment choice: it is the easiest country in the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) for investors to set up a business and take advantage of opportunities in these fast-developing regional markets; Rwanda has vast potential in energy and other sectors; and the Rwandan government strongly encour-ages foreign investment by implementing measures to make investing in Rwanda simple and profi table.

Hub of the EAC

Rwanda offers a domestic market of over 11 million people with rapidly growing income levels as well as privileged

access to a regional market of over 125 million thanks to the country’s EAC membership. Strategically located in the heart of the EAC, Rwanda provides streamlined access to the international ports in Mombasa, Kenya, and Dar es Salaam, Tanzania, and is partnering in major regional infrastructure projects to develop new road and rail connections.

The Rwandan government is committed to support-ing peace and security in the EAC. In January this year, Rwanda became the fi rst EAC member to ratify the East African Community Mutual Defence Pact for regional co-operation. The pact, developed jointly by Kenya, Uganda and Rwanda, aims to lay the foundation for EAC states to play a bigger role in fi ghting trans-national crime. The three countries have also committed troops to the East Africa Standby Force, which is backed by the United Nations. Once formally ratifi ed by all EAC countries, the pact will allow armed forces from member countries to conduct joint military operations when combating terrorism and other international crimes.

Following its entry into the EAC in 2007, Rwanda attracted around €88 million in new investment up to 2014 and saw the creation of some 400 new companies, many of them owned by investors in other EAC countries. These companies have created around 2,500 new jobs and are active in a wide range of sectors, from fi nancial services to agriculture, tourism, transportation and manufacturing.

To make the most of its EAC advantages, Rwanda has been working with its neighbours to speed up regional transport times. Eliminating non-tariff barriers in the form of road-blocks, weigh bridges and other bottlenecks has led to an 81% drop in the number of days it takes to transport con-tainers from the ports at Mombasa and Dar es Salaam to Kigali. In addition, border crossings have been made much more effi cient. The Gatuna border crossing between Rwanda and Uganda now operates around the clock while the Rusumo border crossing with Tanzania is open 16 hours a day.

Renewed commitment to private sector

The Rwandan government under the leadership of President Paul Kagame is strongly committed to private-sector-led


30


growth, and this policy is paying off. In just one example, a recent survey by Rwanda’s Private-Sector Federation showed that 88 collective investment groups have raised €400 million in equity in Rwanda and invested in many sectors of the Rwandan economy.

The government’s private-sector focus will continue. In a speech he made in January 2015, President Kagame said, “We want our economy to be private-sector-led and we cannot allow the private sector to lag behind. Much more needs to be done if we are to achieve our goals of devel-opment. The private sector needs to be given the kind of thinking, possibilities and autonomy to make the most of its capacities. We need to do everything we can, not only to continue making progress but to accelerate that progress.”

President Kagame has made entrepreneurship, especially in high-tech fi elds, a priority. He has also reached out to foreign universities and international companies like VISA, which decided to invest in Rwanda rather than in larger countries in the region. Now VISA is helping Rwanda modernise its fi nancial infrastructure and has introduced a mobile payment system. President Kagame has also advocated new business services like electronic business registration to help attract investors.

New investment incentives

Investing in Rwanda is expected to become even more attractive soon. In November 2014, Rwanda’s parliament considered amendments to the country’s 2005 investment law; these amendments are designed to help the Rwandan government achieve its medium-term development strategy (2013-2018) to boost the country’s average GDP growth rate from 7.7% to 11.5%.

New regulations specifi ed in the proposed amendments include special incentives for investment in priority sectors such as energy, manufacturing, agriculture and tourism. These incentives are to include a preferential corporate tax of 15%, mainly for projects in energy, tourism and manufacturing. The new amendments will also provide clearly defi ned tax holidays of fi ve to 10 years for major investments.

Defending the proposed amendments before parliament in November 2014, Francis Gatare, CEO of the Rwanda Development Board, commented, “When we speak of investment promotion, we are speaking of lowering the costs of doing business in Rwanda, which will attract more domestic and foreign investment.” He added that the existing

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Gigawatt Globalʼs solar fi eld at the Agahozo Shalom Youth Village in Rwanda

© Gigawatt Global

law on investments was designed to attract investment and promote exports, but did not include clear incentives for priority sectors. He said, “Between 2005 and today, many things have changed; we have to change the way we operate by setting up favourable economic environments for invest-ment promotion.”

Connie Bwiza, the chairperson of the Committee on Economy and Trade, also supports the amendments to the investment law since these changes will facilitate SME development, a priority in the government’s Vision 2020 programme. Constance Mukayuhi Rwaka, the chairperson of the parliamentary Standing Committee on National Budget and Patrimony, concurs. She says, “The new bill, once passed into law, will favour SMEs, which will definitely increase government revenues in the long run, hence stimulating economic and human development.”

Louise Kanyonga, Head of Investment Promotion at the Rwanda Development Board, emphasizes that the proposed changes will focus on sectors that are crucial to making Rwanda a private-sector-led economy by 2020. She says,

“We are not taking a blanket approach; we are promoting strategic sectors that will get us where we aspire to be. We hope that promoting private-sector investment in key sectors will also stimulate growth in other sectors.”

Outstanding opportunities in diverse sectors

The Rwanda Development Board, the ideal fi rst point of contact for potential foreign investors in Rwanda, offers detailed information on investment opportunities and provides one-stop-shop services for investors. According to the RDB, investors will fi nd high-potential investment options in Rwanda’s infrastructure, agriculture, energy, tourism, ICT, mining, fi nancial services, real estate and con-struction, and manufacturing sectors.

ICT is one example. A key growth sector for Rwanda, ICT was the top contributor to the country’s GDP in 2014. Rwanda’s ICT Minister Jean Philbert Nsengimana notes that Rwanda has all the necessary tools to compete globally in ICT, including a new fourth-generation (4G) high-speed Internet


32

network. The Rwandan Information Technology Authority (RITA) recently completed a national fi bre-optic network, and Rwanda’s One Laptop per Child programme has brought thousands of laptops to schools around the country.

Rwanda is positioning itself as a regional and global ICT leader. In 2013, Rwanda and the International Telecom-munications Union (ITU) co-hosted the Transform Africa Summit, which saw the birth of the Smart Africa Alliance, a platform that is shaping the future of ICT adoption through-out the continent. Meanwhile, Rwanda is a member of the ITU Council and President Paul Kagame is the chairman of the ITU broadband commission. The ITU has chosen Rwanda to serve as the offi cial African Centre of Excellence for Cyber Security.

ICT start-ups are thriving in Rwanda. The Telecom House in Kigali is the centre of Rwanda’s start-up scene, housing Carnegie Mellon University-Rwanda and kLab, one of the country’s best-established incubators. Another incubator is Think, funded by Millicom.

Boosting manufacturing

Rwanda also encourages investment in manufacturing. According to the Rwanda Development Board, the gov-ernment aims for Rwanda’s industrial activities, including manufacturing, construction and mining, to contribute 20% of the country’s GDP by 2018. To reach this target, the industrial sector needs to grow at a rate of 14% per year. Rwanda is actively looking for investors in a range of man-ufacturing activities, including the production of construc-tion materials, pharmaceuticals, packaging, textiles, leather and leather goods, soaps and detergents, and fertilisers.

Mining offers particularly strong FDI appeal in Rwanda. The mining sector has been growing at a remarkable rate of 46% per year since 2008, and the Rwandan govern-ment anticipates that mining and quarrying will account for around 5.27% of Rwanda’s GDP by 2017 or 2018. The gov-ernment also projects that 100% of Rwanda’s certifi ed mines will be equipped with effi cient water and waste-management systems by 2017, compared to around 25% in 2013.

The government privatised the mining sector in 2007 and now Rwanda has over 500 licensed mining enterprises.

Companies involved in prospection, exploration or actual mining are active on more than 650 sites throughout the country. Rwanda has implemented a strong regulatory envi-ronment for the mining sector to help attract investors, and the government welcomes international investment and partnerships.

Rwanda has extensive mineral resources. The three main ones are cassiterite, wolfram and coltan; Rwanda was the world’s top exporter of coltan in 2013. The country also has deposits of gold, gemstones and other minerals and accounted for 28% of the world’s tantalum exports in 2013.

Evoda Imena, Minister of State for Mining, comments, “We are encouraging investment in technology and we are making loan facilities available for potential investors.” Vision 2020 calls for increasing the number of jobs in mining to around 60,000 by 2017, with around 30% of those jobs being performed by females.

Investing in agriculture

The agriculture sector, including food processing, is another top investment target in Rwanda. The government is par-ticularly encouraging investment in agricultural projects since these can directly benefi t Rwanda’s rural population and help combat poverty.

One new initiative designed to stimulate the growth of the agriculture sector is Rwanda’s East Africa Exchange (EAX), which is currently adding to the range of agricultural com-modities it sells and is expanding regionally by opening ware-houses in Uganda, Kenya, Burundi and Tanzania as well as Rwanda. Kadri Alfah, the exchange’s manager in Rwanda, explains, “Our aim is to strengthen the capacity of Rwandan farmers so that they are able to sell their commodities through-out the year at favourable prices. We have tailored our design to suit millions of smallholder farmers and traders.”

The exchange is expected to compete directly with the Kenyan Tea Auction and Tanzanian Coffee Auction when it starts trading in tea and coffee. EAX is already the third-largest agricultural bourse on the continent after the South African Futures Exchange and the Ethiopia Commodity Exchange. The exchange has been trading some 50,000 tonnes of produce (corn, beans and soybeans) per year and

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Lake Kivu commercial traffi c


can store around 30,000 tonnes of grain. With new regional warehouses, this storage capacity will be increased to 300,000 tonnes. EAX uses the US NASDAQ OMX Group’s platform, which gives traders in the region immediate access to the market for commodity auctions, spot trading, forward trade and futures trading.

Energy to fuel future growth

The Rwandan government has also prioritised the energy sector and recently hosted the iPad Power and Infra-structure Investment Forum, which attracted around 200 energy experts and investors from across the globe. Emma-nuelle Nicholls, iPad Rwanda event director, points out, “Rwanda is open for business. There are enormous invest-

ment opportunities in the country’s power and infrastruc-ture sectors and the government has proved that it can provide a stable and investor-friendly business climate.”

Louise Kanyonga, head of investment promotion for the Rwanda Development Board, adds, “The RDB clearly understands the central role played by energy in Rwanda’s economic development.” Rwanda is working to improve access to electricity throughout the country and aims to boost its energy production to 563 MW.

Rwanda’s financial-services sector is also developing rapidly and provides a number of opportunities for investors. The Rwanda Development Board cites com-mercial banking products and services, competitive loan facilities, agricultural financing, banking services geared


34

Sector

to SMEs, microfinance services, mortgage financing, training financial-sector professionals, investment banking, equity and bonds trading, insurance services, funds management and business-process outsourcing as some of the high-potential opportunities for investment in Rwanda’s financial sector.

Opportunities from transport to tourism

Many major infrastructure projects planned or underway in Rwanda are open to private investors and offer outstand-ing growth potential. These include the Kibungo-Ngoma-Nyanza and Nyagatare-Byumba-Base roads, the Kigali Ring Road, a new expressway to Bugesera Airport, the new international airport at Bugesera, the Dar-es-Salaam-Isaka-Kigali and the Mombasa Nairobi-Kampala-Kigali rail lines, inland water transport on Lake Kivu, and a mass-transit system in Kigali, among many others.

Infrastructure development will not only boost Rwanda’s trade activities but will also support the growth of the tourism industry. Rwanda has outstanding tourism potential thanks to its unspoiled natural areas, temperate climate, lush vegetation and varied wildlife, including the famous mountain gorillas. The tourism sector is at the very early stages of development, particularly concerning services outside Kigali, and Rwanda welcomes investors in tourism projects.

Investors from all over the globe

As Rwanda pursues its ambitious economic-development pro-grammes, it is attracting investment from all over the world. JICA, Japan’s development-aid agency, has supported a wide range of projects in Rwanda, including Rusumo International Bridge and One Stop Border Post (OSBP) facilities. JICA has had an offi ce in Kigali for the past nine years and has been involved in projects in the infrastructure, water and sanitation, and ICT sectors as well as human-resources and SME development.

Large multinational corporations have also chosen Rwanda. Visa selected Rwanda out of dozens of countries as a test ground for offering electronic payments in “frontier economies.” Unilever is another major global player with a strong presence in Rwanda. Unilever sources Rainforest Alli-

ance-certifi ed tea grown in Rwanda for its globally leading Lipton brand, while training thousands of farmers in the process.

Meanwhile Rwandan enterprises are establishing trade partnerships worldwide. Indego Africa, which represents 18 handicrafts cooperatives throughout Rwanda, is working with upscale global retailers Nordstrom, Anthropologie and J. Crew to bring distinctive Rwandan objects to an interna-tional marketplace. Given its success, Indego plans to expand its model from Rwanda to other countries in East and West Africa. Trendy retailer Kate Spade & Co. chose Rwanda as the springboard for its “On Purpose” initiative and worked with Karisimbi Partners to employ over 120 local artisans in Masoro, Rwanda, in a new business venture to supply hand-crafted items to Kate Spade retail outlets in the US and internationally.

iGuide web portal for investors

To continue to attract FDI, Rwanda has created a number of new business services to make the investment process as easy as possible. These include iGuide, a web portal and electronic directory which gives up-to-date information on investment opportunities, company registration, land acquisition, labour laws, the tax regime and other issues, along with information on institutions to be contacted, legal documents and key offi cials. The website was developed by the Rwanda Development Board with support from the United Nations Conference on Trade and Development (UNCTAD) and the One UN Family in Rwanda.

“The iGuide is another indication that Rwanda is very open for business,” commented Tony Nsanganira, Acting Chief Operations Officer of the RDB, at the launch of the iGuide in Kigali. He added, “Information on iGuide ranges from business costs and investment opportuni-ties to construction permits and land costs, among other useful information an investor would like to know before coming to Rwanda to invest. This online platform is user-friendly, easy to access and updated on a regular basis. It is also a tool for marketing investment opportu-nities in Rwanda.”

Lamin M. Manneh, UN Resident Coordinator in Rwanda, notes that the iGuide is a true “one-stop place for invest-

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Construction of Gigawatt Globalʼs solar fi eld at the Agahozo Shalom Youth Village

© Gigawatt Global

ment information about Rwanda.” He adds, “For Rwanda’s GDP growth to reach the government’s targets, the country needs high-quality investments, support for investors, and targeted innovations like iGuide. It is because of cutting-edge business services like iGuide that Rwanda is pushing ahead of other countries in Africa in attracting investments.”

Sustainability a watchword

Rwanda’s Vision 2020 programme aims to achieve sus-tainable development for Rwanda, and in October 2014 the Rwanda Development Board received an award from the UNCTAD World Investment Forum for its promotion

of sustainable development projects. The RDB was one of 29 investment-promotion institutions around the world considered for the award and won the top prize in recognition of its innovative approach to attracting environmentally, economically and socially sustainable investments.

At the awards ceremony, RDB CEO Francis Gatare commented, “This award is a sign of strong investor confi -dence in Rwanda. It demonstrates the rare combination that Rwanda represents as the best place for a business to fl ourish and the best place to live in a clean and green environment. This award recognises Rwanda’s attractions as a viable and profi table business destination.”


36

Privatisation Programme on Track

The Rwandan government launched a comprehensive privatisation drive in 1995 to stimulate private-sector growth, attract investors and boost the economy. Over 100 state-owned enterprises have been fully or partly privatised so far, and more privatisation opportunities are being developed.

Kigali


In February 2014, members of the parliamentary Standing Committee on Economy and Trade travelled around Rwanda to assess how well the privatisation programme was working. Committee chairwoman Connie Bwiza commented, “We have been touring all parts of the country to see if people who invested in these companies are making profi ts and how these companies are contributing to Rwanda’s socio-economic development. So far, the performance of these companies has been impressive in general. Some companies have performed beyond expectations.”

The privatisation programme aims to reduce the govern-ment’s role in the economy, ensure greater accountability of enterprises, enhance entrepreneurship, and separate owner and management functions in companies. The programme is overseen by the Privatisation Secretariat within the Rwanda Development Board.

Rwanda’s privatisation process is integral to the success of the country’s Vision 2020, a development strategy designed to transform Rwanda into a middle-income country by 2020. According to Vision 2020, the private sector will serve as Rwanda’s main engine of growth, job creation and industrialisation now and in the future. Rwanda’s privatisation programme is also supporting the development of the country’s stock market, the Rwanda Stock Exchange. Rwanda held its fi rst IPO in November 2010 when the state offered a 25% share of national brewery Bralirwa SA, a unit of Heineken NV, the world’s third-biggest brewer.

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From tea to telecomEnterprises in a wide range of sectors, from tea to telecom, have been successfully privatised. These include Electro-gaz (the water and electricity distributor), tea factories, a fi shery, a poultry farm, a dairy, hotels, paper plants, a pharmaceuticals laboratory, the Onatracom public-trans-port company, a 10% share in MTN, Bralirwa brewery, a 99% share in RwandAir Express, the Karuruma smelting plant (which recently began operating), and several banks and fi nancial-services companies, including an 80% share of the Bank of Kigali and an 80% share of the Banque Commerciale du Rwanda (BCR). The BCR share was acquired by Actis in a 2004 privatisation and then sold in 2012 to Kenyan regional bank I&M Bank and French and German development-fi nance institutions Proparco and DEG. More privatisations are anticipated in 2015. In January this year, a report indicated that Ethiopian Airlines has expressed interest in acquiring a share of national airline RwandAir.

Development Bank of Rwanda

In mid-2014, the Rwandan government signed a Memoran-dum of Understanding with Atlas Mara for the privatisation of the commercial activities of the Banque Rwandaise de Développement (BRD, or Development Bank of Rwanda). In the deal, the BRD’s commercial-banking business was spun off into a new subsidiary to be acquired by Atlas Mara. When he announced the agreement, Claver Gatete,

Minister of Finance and Economic Planning, explained, “The government of Rwanda is committed to privatisation which attracts foreign direct investments, gives investors good business opportunities and also boosts economic growth. The BRD [privatisation] is in line with the government’s decision to reform the bank’s operations so that it can effectively serve its mandate,” Valentine Rugwabiza, the BRD’s CEO, added, “We welcome this initiative because of its potential to increase access to fi nance for Rwandan businesses, including SMEs. Bob Diamond and Ashish J. Thakkar, co-founders of Atlas Mara, have excellent experience in raising funds internation-ally and they understand the sophistication that fi nancial insti-tutions need, not only to tap into global liquidity but also to offer new, affordable services on the market. Their presence is a vote of confi dence in Rwanda’s business climate.”

Atlas Mara plans for its BRD operation to serve as the group’s platform for expansion in the East African market. Ashish J. Thakkar noted, “BRD is a great bank with even greater potential. I am proud to have this opportunity to play a role in creating access to capital for the millions of young Rwandan entrepreneurs like me.” Bob Diamond commented, “Rwanda is a model economy that will continue to benefi t from the engagement of the private sector. Much of the change of the last twenty years can be attributed to the leadership of the government and I am excited to be associ-ated with this development.”

For investors, Rwanda’s privatisation process offers outstand-ing potential.


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1

Rwanda Development Board Offers One-Stop-Shop Services for InvestorsThe Rwanda Development Boardʼs (RDB) vision is to transform Rwanda into a dynamic global hub for business, investment and innovation. Its mission is to fast-track Rwandaʼs economic development by enabling private-sector growth. The RDB serves as a true one-stop shop for potential and current investors in Rwanda.

The RDB, headed by CEO Francis Gatare, has played a key role in Rwanda’s impressive economic progress by helping to make Rwanda one of the world’s best business locations. In 2014 alone, Rwanda attracted a number of major domestic and foreign investments in a wide range of sectors, and these investors were supported by the RDB.

The Board RDB was established to bring together all government agencies responsible for the invest-ment process under one roof. Invest-ment operations now under the RDB umbrella include business registra-tion, investment promotion, envi-ronmental clearances, privatisation, priority sectors, SMEs, and human-capacity development. The RDB is guided by a Board which includes representatives from all Rwanda’s key ministries and reports directly to the President of Rwanda.

Modelled on international best practicesModelling itself on best-practice examples of investment-promotion agencies in Singapore and Costa Rica, the RDB benefi ts from advisory and hands-on support from global entrepreneurs and experts from the Singapore Development Board, the World Bank, the IFC and the Offi ce of Tony Blair.

Serving all types of companies, both local and foreign and both large and small, the RDB offers diverse services. It is organised into departments focusing on investment promotion and imple-mentation, assets and business manage-ment, and human capital and institu-tional development. Specialised services are also provided for key economic clusters, including agriculture, services, tourism and conservation, ICT, manu-facturing and trade.

As an infl uential institution, the RDB helps investors develop and improve their strategies and competitiveness; commu-nications and PR; customer care; human resources; planning; and procurement. Investors are being assisted concerning legal issues, fi nancing and administration. The RDB’s online services are designed to streamline the business process for investors and include a one-stop registra-tion portal; E-regulations, a step-by-step guide to the investment process; E-Soko, information on agricultural market prices; the ICT Support Request Management System; the Rwanda Techforum; the ICT Skills Management Information System; the Labour Market Information System; Trade Point Rwanda’s Market Analysis tools; and systems for applying for intern-ships or requesting interns.

Providing abundance of services to ease investment processes, The RDB has positioned itself as investors’ ideal local partner in Rwanda.

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1

Leading Rwandan Printing Company Looking to Expand Regionally

What started as Imprimerie de Kigali in 1984 is today a leading company in the printing industry in Rwanda. It was renamed Printex in 2010, after the new Managing Director Gilles Mporanyi took over the modernisation, and brought the drive to implement the latest equipment and technologies focussing on high quality printed products and on a better customer service.

Gilles Mporanyi, Managing Director

Having in mind the goal of regional reach, the owners have heavily invested in modern equipment, advanced trainings and recently in a new building which made Printex not only the biggest but also the fi rst printing company in Rwanda to employ environmentally friendly, world-class machines, of the same kind as those used in the EU.

Printex offers all types of paper-based materials, ranging from posters, fl yers, books, notebooks, manuals and

calendars to large-sized print runs. It has established contracts with many of Rwanda’s top companies, ranging from state-owned companies, non-profi t organisations to prominent private-sector enterprises. As Gilles Mporanyi says, “Printex offers the highest-quality printing on the market and our target is to enter the unexploited niches of the industry, given that there are still many products printed outside the country.”

To reach this goal, Printex is either looking for partner-ships with experienced companies, which will allow them to benefi t from their experience, knowhow and latest technologies, or fi nancing institutions that would help them acquire additional equipment by themselves and get advanced training by experts. Gilles Mporanyi says: “Through such partnerships or fi nancing, Printex cannot only boost its production and add new products to the existing portfolio, but also expand in the regional market, specifi cally Burundi and the eastern Democratic Republic of Congo. My main goal is to always meet international standards and offer high quality and durable products, thus I welcome partnerships with EU investors. My long-term vision is to make Printex a benchmark for high quality printing not only in Rwanda, but in the great lakes region as well. Printex has a bright future.”

Printex Ltd.Kigali Special Economic Zone, Plot J6

P.O. Box 2802, KigaliTel.: +250 788 386 868

[email protected]

Newly Built Printex headquarters


40

Modern, Progressive and Transparent Legal System

Johnston Busingye, Minister of Justice, discusses Rwandaʼs legal system and the ministryʼs commitment to ensuring transparent justice for all. He explains that Rwanda managed to build a modern legal system from the ground up in the aftermath of the 1994 genocide.

European Times: What are some of your tasks as minister?

Johnston Busingye: My job is to ensure that the justice sector is running effi ciently. I link our arbitration centres, training in schools, the Rwandan bar association (we now have around 1,200 members), negotiations with parliament concerning legal issues, and other matters.

European Times: How has Rwanda’s legal system evolved since 1994?

Johnston Busingye: Rwanda was almost a failed state after the genocide. We saw that in some people a sense of impunity about killing others had become ingrained and had to be stopped. We took on the almost insurmountable job of establishing a justice system from the ground up. We began training people and we managed to establish a modern, pro-gressive justice system in 10 years. We have actively fought corruption and have launched a huge campaign around integrity and personal commitment. We are especially proud that the level of integrity in Rwanda’s justice system is unpar-alleled in the region.

European Times: How does Rwanda’s justice system contribute to the country’s attractions for international investors?

Johnston Busingye: Over the past six years, we have enacted a number of laws to facilitate FDI, and Rwanda is now a haven for business. We picked the best laws from our partner countries and established a fast-track system to deal with business issues. We set up commercial courts and we actively work to find and prevent any business crimes. Our arbitration centre has developed rapidly, and we are dedicated to protecting all types of busi-nesses. An investor in Rwanda can be sure that if there is litigation, everything will be handled efficiently and with zero corruption.

European Times: What is your personal message to potential investors in Rwanda?

Johnston Busingye: I guarantee that we will provide justice to the best of our abilities. You can travel anywhere in Rwanda safely, our fi nancial sector is very well developed, we have a clean environment and Rwanda has positioned itself as an advanced ICT hub. Rwanda has a culture of honesty and is one of the few countries in Africa where people will turn in to the authorities any money they fi nd. Everyone in Rwanda is proud of this.

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1

Dynamic Law Firm Offers World-Class Legal Services

RR Associates (soon to be renamed Pinnacle Law Group) provides high-quality, interna-tional-standard legal services in Rwanda. Molly Rwigamba, now Managing Partner of RR Associates & Co Advocates, joined her partners in 2011 to start a private law practice.

Molly Rwigamba, Managing Partner

She has had extensive experience in key posts in both the public and private sectors. She formerly served as Vice Chairman of Rwanda’s Capital Market Authority and as an Acting CEO of Rwanda’s Private Sector Federation. She is currently a member of the board of Kenya Commercial Bank Rwanda and the Work Force Development. RR Associates specialises in commercial law, mergers and acquisitions, banking, insurance, capital markets, corporate

fi nance, real estate (including conveyance) and intellectual property. The fi rm represents a number of Rwanda’s leading enterprises, including the Bank of Kigali, and Nokia, which is setting up operations in the country. Molly Rwigamba also represents the leading insurance company Sonarwa.

Molly Rwigamba and her partners, Happy Mukama and George Rubagumya, have extensive experience in a wide range of legal issues, particularly commercial law, insurance and banking. Ms. Rwigamba has developed particularly strong expertise in corporate fi nance, banking law, insurance law, intellectual property, commercial litigation.

RR Associates partners with MMC Africa as well as Holland and Knight, a large US fi rm, in order to offer a winning combination of international experience and local knowledge. “Thanks to these partnerships, RR Associates can share resources and knowledge in order to be well-versed in all international legal matters, but we also offer in-depth understanding of the Rwandan market,” Molly Rwigamba points out.

The fi rm puts a high priority on tailoring its legal services to fi t each client’s particular needs. Molly Rwigamba explains, “We understand that every customer is unique. RR stands out by offering quality service and, rather than spreading ourselves too thin, by dedicating our time to a select few customers in order to give each one our full support.”

RR Associates, although a young fi rm, is well on the way to becoming Rwanda’s top legal-services provider. RR Associates plans to rebrand in the future and change its name by March 2015. The fi rm will continue to focus on offering world-class legal support and personalised service. Molly Rwigamba concludes, “We welcome the chance to serve international companies operating or investing here in Rwanda. We are dedicated to improving the international image of Rwanda and to helping position the country as an outstanding choice for international investments.”

RR Associates & Co. Advocates (Soon changing to Pinnacle Law Group)

Tel.: +250 788 307 [email protected]


42

Rwanda: Fast-Tracking a Knowledge-Based Economy

Jean-Philbert Nsengimana, Rwandaʼs Minister of Youth and ICT, explains that two former ministries were combined as part of Rwandaʼs President strategy to fast-track a knowledge-based economy through the combined power of technology and youth. He discusses his ministryʼs priorities.

European Times: What are some of your current projects?

Jean-Philbert Nsengimana: We are implementing the “Smart Rwanda” Master Plan, our 4th Generation ICT for Development Plan. We began the process in 2000 with a 20-year plan to transition from an agriculture-based to a middle income, knowledge-based economy. In the fi rst fi ve years, we focussed on building an enabling environment for investments, liberalised the sector, created an ICT Authority and welcomed private telecom investors. In the second phase, the government invested heavily in a fi bre-optic backbone, initiated the One Laptop Per Child and other access initiatives. In the third phase, we focussed on ICT services. The current fourth phase aims to fast-track the transition into a knowledge economy with a special focus on fi ve key areas: education, healthcare, agriculture, government, and the private sector.

European Times: What about the relationship between ICT and youth?

Jean-Philbert Nsengimana: Rwanda’s digital natives have on one hand the skills and passion to use ICT and on the other hand need jobs. New developments include K-Lab, a youth innovation hub, and YouthConnekt, which connects the youth to role models, resources, skills and employment opportunities. Many young Rwandans have turned their ideas into innovative companies. Many are starting a business when they graduate from university. Last year Rwanda registered 4,169 small-to-medium-sized ICT start-ups. This is a strong indicator of the progress that has been made. We have also put in place several structures and programs to provide youth with expert advice and facilitation accessing fi nancing. This ministry wants to make sure Rwandan entrepreneurs are successful. We hosted the Transform Africa conference in 2013 with the theme of delivering the promise of the future, today. The next edition is coming up in the last week of October 2015. Meanwhile, the initiative has reached continental proportions and is pro-foundly shaping Africa’s ICT agenda.

European Times: Why should investors target Rwanda’s ICT sector?

Jean-Philbert Nsengimana: ICT is growing faster than any other sector in our country. The number of Rwandans using mobile payments and enjoying fi nancial inclusion has increased from 200,000 in 2010 to 5.5 million today. Services based on ICT such as e-commerce are really booming. Rwanda offers ICT investment opportunities in education, implementing cutting-edge ICT in key sectors of our economy, a Tech city (Technopole), business-process outsourcing (which is expected to grow 90% by 2020), and more. For big ICT powerhouses, there is no better place for a regional headquarters than Kigali.

European Times: What is your personal message to potential investors?

Jean-Philbert Nsengimana: Rwanda is the easiest place to do business in Africa and is a gateway to a much larger market that is unfolding as we speak: the entire African continent.

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PSF is the Voice of Rwanda’s Private Sector

Gerard Nkusi Mukubu, Acting Chief Executive Offi cer of the Rwanda PSF (Private Sector Federation), details the organisationʼs relationship with the business community and plans for the future.

European Times: Please describe the PSF and its purpose.

Gerard Nkusi Mukubu: As an umbrella organisation for the Rwandan business community, we coordinate core activities. We have 10 chambers each containing 75 associations, entities in fi ve provinces, and the board of directors are usually the owners of top companies. We have a general assembly on a national level, which is comprised of elected committee members. Overall, we account for a total of 1,500 companies and are the voice of the private sector.

European Times: What is the main focus for PSF in 2015?

Gerard Nkusi Mukubu: We want to build the capacity of our members, specifi cally in the area of collecting investments, for example agro-pro-cessing, with the objective to increase exports. This is a priority for Rwanda. Secondly, we want to continue with evidence advocacy, position papers and research to have a friendly business environment. Our ambition is to lead the economy and become a major contributor of growth to Rwanda’s GDP.

European Times: Can any company be a part of the PSF?

Gerard Nkusi Mukubu: Yes, in the past few years membership has increased and advocacy is at a high level. We always involve members, updating them on EAC issues, where the market is at and where the oppor-tunities are.

European Times: What is the PSF’s relationship with the government?

Gerard Nkusi Mukubu: We work hand in hand with the government, starting at the grass root level. For example, if there is a problem with taxes, we can engage with the gov-ernment and have a dialogue with them. Many issues have been resolved through these open dialogues. If the government wants to increase taxes, they have to consult with leaders of the private sector and this has been a success of PSF. On the national level, we have created platforms and where there are member issues, we are able to use that platform and resolve them.

European Times: What can The European Times readers expect from PSF?

Gerard Nkusi Mukubu: We are amongst the best in doing reforms in business, providing quick registration, high security and transparency. We also have a very good strategic location to access neighbouring markets so investors are welcome to join our business family in Rwanda.


44

Finance

• Strong Financial Sector Continues to Grow

• Banking Sector Liquid, Profitable and Growing

“Investors should not look at the country as a single market, but as a centre for the East African region.”

John Rwangombwa, Governor of the National Bank of Rwanda

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An Engine of Growth: Rwanda’s Financial Services Sector is on a Sure Footing

John Rwangombwa, Governor of the National Bank of Rwanda, tells us about the countryʼs strong monetary policy, ambitious targets for growth and Rwandaʼs potential to become a regional fi nancial centre.

European Times: How would you assess current monetary policy and its impact on growth?

John Rwangombwa: Price stability is well maintained with infl ation currently at 0.5% compared to 3.7% at the end of June 2013. The environment is stable with an accommodative monetary policy, supportive of economic growth, which has been at 7.5% in Q1 of 2014, 6.1% in Q2 and we expected to achieve

or even surpass the 6% target for the country at the end of 2014. The fi nancial sector has continued growing stronger and more stable. Banking assets have grown by almost 28% in one year with 31% growth in deposits and two new fi nancial institutions have entered the market. Three new investors have also come into the insurance sector bringing more capital technical knowhow. Non-performing loans have reduced from 9.2 to 6.2% currently.

European Times: The major target audience of our publi-cation is large banking fi rms. Why should a bank like ING or Barclays gauge potential here in Rwanda?

John Rwangombwa: It depends on what they are focussing on; if they are looking at retail banking, there is a lot of potential. We currently have access to fi nance at 42% and our objective is to grow it to 70% by 2017 and minimum 80% by 2020. For corporate, we have created an environment that is very conducive to private investment. The potential of having more big fi rms investing in Rwanda is big since most of these investors are targeting the entire East African region.

European Times: What are the key challenges for the bank to ensure growth and stability moving forward?

John Rwangombwa: The financial services sector has been growing, but the big question is how you make this a source of promoting growth. We are trying to attract foreign investors to the capital market and are working with the World Bank to promote this institution. We want to create an environment where funds feel confident in working with us, so we can tackle issues like funding for start-ups.

Rwanda’s economy is ripe for invest-ment and investors should not look at the country as a single market, but as a centre for the East African region.

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Strong Financial Sector Continues to Grow

Rwanda has developed a strong fi nancial-services sector which includes banks, insurance providers, microfi nance institutions, a public pension fund, the Rwanda Social Security Board, private pension schemes, FOREX bureaus and the Rwanda Stock Exchange.

© RTTA

New international bond

International confi dence in Rwanda’s fi nancial-sector fundamentals was demonstrated by the massive investor interest in the country’s fi rst interna-tional bond issue in April 2013. Rwanda issued the US$400 million (€354.1 million) bond in order to repay a debt owed to Citibank and PTA Bank by national carrier RwandAir as well as to fi nalise the construction of the Kigali Convention Centre and to invest in a

hydropower project. The 10-year bond attracted more than US$3 billion (€2.6 billion) in orders.

In August 2014, Rwandan President Paul Kagame announced that Rwanda will issue a second international bond this year to fund airport and power-plant projects. He commented, “Rwanda wants to build on the success of the bond issued in April 2013 that was more than eight times oversubscribed. We might issue a bond of up to US$1

billion (€885.3 million).” The President added, “The markets are never wrong. Look at where Rwanda was 20 years ago compared to where we are now. It’s little short of miraculous.”

Effi cient regulation

Rwanda’s fi nancial-services sector is effi -ciently overseen by the National Bank of Rwanda (NBR), the country’s central bank, which serves as the regulatory and supervisory authority for banking and microfi nance institutions, non-bank fi nancial institutions and payment systems. The NBR also operates the central security depository and licenses savings and credit cooperatives, micro-fi nance institutions and property-value assessors. The Capital Market Authority (CMA), established in 2007, oversees the Rwanda Stock Exchange and promotes capital-market activity.

Financial Sector Strategy 2013-2018

To further improve fi nancial services in Rwanda and to achieve the goals of the Vision 2020 programme, the govern-ment developed the Financial Sector Strategy 2013-2018. This initiative is geared to deepening and broadening Rwanda’s fi nancial services, ensuring that these services are well regulated and effi cient, and boosting access to these services.

The strategy notes the exceptional progress Rwanda’s fi nancial sector has

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made over the past 20 years but also highlights challenges. These include a low rate of savings and a culture which does not encourage saving; limited access to banking products and services, particularly in rural areas; a need for more long-term, stable fi nancing; the need to expand electronic payments systems; the need to expand Rwanda’s capital market to generate more fi nancing options; and the need to train more qualifi ed fi nancial-sector human resources. The strategy also calls for stepping up regional and international partnerships in the fi nancial-services sector and attracting more FDI in fi nancial services.

Top priorities in the fi ve-year strategy are to mobilise savings and investments; boost access to fi nancing; promote fi nancial inclusion, including increasing public awareness of capital markets; modernise payment systems; improve fi nancial-sector human resources; and establish an international fi nan-cial-services centre in Rwanda.

Double access to fi nancial services

Concerning inclusion, Rwanda seeks to double access to formal fi nancial services in the next three years to reach over 80% of the population. Rwanda has already made great progress in improving fi nancial-services inclusion. According to the National Bank, access to formal fi nancial services has grown from 21% to the current 42%.

One goal of the 2013-2018 strategy is to improve women’s access to fi nancial services, in line with Vision 2020’s aim to promote female entrepreneurs. At a conference organised by the Institute of Policy Analysis and Research Rwanda (IPAR) in Kigali in February this year, IPAR reported that 74% of Rwanda’s adult women do not have access to formal banking services, compared to 63.4% of the male population.

Eugenia Kayitesi, Executive Director of IPAR, noted that increasing access to fi nance by women boosts entrepre-neurship, job-creation and inclusive growth. “And when women have access to fi nance, it will signifi cantly reduce income inequality,” she added. Emmanuel Munyemana, a

senior researcher at IPAR, commented, “Financial literacy is needed at the grassroots level if we are to reduce poverty levels among the masses.”

FDI opportunities in fi nancial services

Foreign investment can help Rwanda reach its goals for the fi nancial sector, and the country welcomes FDI in fi nancial services, including in banking. According to the Rwanda Development Board, high-potential opportunities include competitive loan facilities, fi nancing agricultural ventures, development banks which fi nance SMEs, microfi nancing, mortgage and investment-banking services, training fi nan-cial-sector professionals, insurance, projects to stimulate cap-ital-markets growth, and business-process outsourcing.

For investors in the fi nancial-services sector, Rwanda is a stable market. According to a recent report by the NBR and the Ministry of Finance and Economic Planning, Rwanda’s debt-to-GDP ratio was 30.5% as of June 2014. In com-parison, Germany’s debt-to-GDP ratio was 78.1% in 2013 while France’s was 93.5% and the UK’s was 90.1%. Amina Rwakunda, Chief Economist at the Ministry of Finance, explains, “Rwanda’s public debt is well below the regional average, which indicates that Rwanda has prudent public-debt policies and management.”

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COGEBANQUEN4 Street, Centenary House, Kigali, P.O. Box 5230

Tel.: +250 788 155 500/509, +250 252 597 500/[email protected], www.cogebank.com

Fast-Growing Bank in Rwanda

COGEBANQUE (Compagnie Générale de Banque Limited) is a commercial bank approved by the National Bank of Rwanda (BNR) on 17 July, 1999. The bank now has 19 outlets, in many diff erent places, both in Kigali City as well as provincial cities, thus ensuring the bank has the potential to strengthen its future.

The bank is fi nancially strong with a growth potential and is currently ranked among the largest commercial banks in the country with an extensive devel-opment plan supported by its branch network covering the major business centres across the country.

The bank innovation designed through its value chain strategy targeting CORPORATE, SMES and RETAIL clients has been one of the contributors for the international award of the second retail bank in Africa in 2013 received by the bank.

The extraordinary growth recorded by the bank fuelled by its robust profi tability performance is the major source of its liquidity stability allowing for the satisfaction of all fi nancial needs of the Rwandan economy.

The bank will continue to offer new services based on the latest technologies, including mobile and online banking as well as Mas-terCard and VISA cards. COGEBANQUE is also expanding its branch network and will have 23 branches operating in 2015.

Mostafa Ouezekhti, the Managing Director, hopes to have 250 “BANK AGENTS” outlets representing the bank throughout Rwanda by the end of the year.

He welcomes partners and investors, and concludes, “COGE-BANQUE is open and transparent, and we aim to grow by around 29% in 2015. COGEBANQUE want to play a key role in helping clients to achieve its enormous potential.

1

Managing Director Maurice Toroitich explains, “We are the fi rst bank in Rwanda to introduce agency banking and are on the right path to take a leading role in mobile banking, including mobile access to microcredit. With the introduction of 100% fi nancing for long-term mortgages, KCB aims to continue implementing new value-added banking services, drawing on 118-year-long experience in the region to become the bank of choice in Rwanda as well.”

KCB Rwanda is currently involved in a maize-growing ini-tiative with various stakeholders including Clinton Health Initiative and a Belgian food processor, funding farmers to produce crops which will be processed in Rwanda to create a high-energy product for further distribution. Maurice Toroitich points out, “We are basically looking to fi nance the whole value chain, from farmers to food processors to distrib-utors. With local knowledge and heritage we can build on, KCB is able to support our clients with the unique real-time processing of payments throughout East Africa.”

KCB Rwanda focuses on serving individuals and small enter-prises. Maurice Toroitich concludes, “Looking at the impact companies have on the value chain, we are open to assist corporates so together we can offer fi nancing in every part of Rwanda.”

KCB Bank Rwanda LtdHead Offi ce, Avenue de la Paix, KN 4 AV 18st

P.O. Box 5620, KigaliTel.: +250 788 309 027, www.kcbbankgroup.com

Reliable East African Banking Partner

KCB Bank Rwanda Ltd, a subsidiary of Kenya Commercial Bank Ltd (KCB), a regional banking leader, has been steadily increasing its branch network and services in Rwanda to become one of the countryʼs top banks.

Maurice Toroitich, Managing Director

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Banking Sector Liquid, Profi table and Growing

In December 2014, the National Bank of Rwanda (NBR) issued a quarterly report on the fi nancial sector which noted that Rwandaʼs banks remain sound and resilient, with strong liquidity. Banking now accounts for 67.6% of Rwandaʼs total fi nancial-sector assets.

Kigali


Banking activities in Rwanda are effi ciently overseen by the NBR, the country’s central bank and fi nancial-services regulator, whose mission is to ensure price stability and a sound fi nancial system. The recent NBR report pointed out that at the end of September 2014, the capital-solvency ratio of Rwanda’s banks stood at a strong 24%, well above the 15% prudential requirement. Microfi nance institutions also showed solid capital-solvency ratios of 32.5% (compared to the 15% prudential requirement), while insurers had a capi-tal-solvency ratio of 240% compared to the 100% prudential requirement.

All three segments are also profi table, according to the report. The banking sector achieved a 1.9% return on assets (ROA) and a 10.9% return on equity (ROE) as of the end of September 2014, while the ROA and ROE for microfi -nancing institutions stood at 2.6% and 8% respectively, and

the insurance sector reported 8.3% ROA and 11% ROE. In addition, Rwandan banks are achieving better asset-quality indicators, with banks’ non-performing loan ratio dropping from 6.9% in December 2013 to 6.3% in September 2014.

Money supply rose 18% between 2013 and 2014

The NBR report noted that Rwanda’s money supply rose 18% between December 2013 and November 2014 (4% above projections), compared to 12% growth in the same period of the previous period. Meanwhile, credit to the private sector increased by 18.1% between December 2013 and November 2014, 2% above projections and almost 7% over the total recorded between December 2012 and November 2013.

New authorised loans grew by a very impressive 42.2% in the fi rst seven months of 2014, compared to an 8.3% decline in the same period of 2013. Money-market interest rates are dropping thanks to comfortable liquidity, while lending and deposit rates have remained stable, with lending rates fl uctu-ating from around 16.5% to 17.5% and deposit rates from 7.3% to 8.2%.

Rwanda has also managed to keep infl ation under control at .7% in November 2014. The NBR estimates that headline infl ation will be around 2.5% in March 2015. The NBR has maintained a market-driven exchange rate for the Rwandan franc, and as a result the franc depreciated by 3.5% in December 2014 against the US dollar compared to 6.1% depreciation in December 2013.

Better services, more inclusion

As part of its drive to improve banking services, Rwanda has steadily upgraded its payment systems, including interbank funds-transfer systems. Local banks introduced credit and debit cards in 2005, while the Rwanda Integrated Payment Processing System (RIPPS), implemented in 2011, has signifi -

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50

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cantly reduced payment times and reduced risks. The RIPPS includes the Automated Transfer System, which comprises the Real Time Gross Settlement and Automated Clearing House systems, and the Central Securities Depository, which serves banks, brokers, capital markets and the Rwanda Stock Exchange. The RIPPS also facilitates cross-border trade and fi nancial transactions through links to the East African Payment System (EAPS) and the COMESA Regional Payments and Settlement System (REPSS). Increasing the percentage of the population using formal banking services is another key goal for the government, which is particu-larly aiming to increase banking inclusion in rural areas and among female entrepreneurs.

Investment in banking

To reach its goals for the banking sector, Rwanda welcomes FDI. Rwanda now has around 16 licensed banks, including commercial, microfi nance, development and cooperative banking institutions. Several regional banking groups have set up operations in Rwanda, and the government would like global banks to establish a presence in the Rwandan market.A new entry to Rwanda’s banking sector, Invest Bank Rwanda, is expected to begin operating sometime this year. Explaining why he targeted Rwanda, Invest Bank head Álvaro Sobrinho says, “As with other areas of Rwanda’s vibrant economy, the country’s banking sector is growing and improving. It is now liquid, profi table and well-capitalised. Overall assets have doubled since 2009 and are growing by around 19% a year. Almost a third of the fi nancial institu-tions licensed by the National Bank of Rwanda have only

entered the market in the last few years, showing growing interest in Rwanda’s investment-friendly business climate. Rwanda is also a gateway to the region.”

Ecobank, the leading pan-African banking group, now has a presence in 36 African countries and in Paris, London, Dubai and Beijing. Ecobank’s vision is to be a world-class bank which facilitates Africa’s economic integration, benefi ts local com-munities, focuses on customer service and supports sustainable development.

Ecobank Rwanda specialises in innovative domestic, corporate and investment-banking services, including trade fi nancing, asset management, SME support and pan-African lending, to name just a few. As of September 2014, Ecobank Rwanda had 304 employees, over 35,000 customers, 20 branches, 51 ATMs and 151 POS terminals, and General Manager Gilles Guerard antici-pates continued expansion. Customer-centric Ecobank has posi-tioned itself as the right banking partner in Rwanda.

Sector

Ecobank RwandaPlot 314, Avenue de la Paix, P.O. Box 3268, Kigali

Tel.: +250 788 161 [email protected], www.ecobank.com

Pan-African Bank Focussing on Customer-Centric Services

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Infrastructure

• Building Modern, World-Class Infrastructure

• Investing in Powering the Future


52

Building Modern, World-Class Infrastructure

James Musoni, Minister of Infrastructure, discusses Rwandaʼs goals for infrastructure development and describes current and planned projects. He also highlights opportunities for international investors.

European Times: What is the mission of the Ministry of Infrastructure?

James Musoni: The ministry’s mission is to initiate pro-grammes to develop, rehabilitate and maintain an effi cient and integrated national transport network, including roads, bridges, airports, railways, and water transport, all of which contributes to Rwanda’s economic development and regional integration.

The Ministry of Infrastructure is also tasked with initiating, developing and maintaining sustainable power-generation facilities to supply clean, cost-effective and uninterrupted

energy for the country, and with facilitating urban-develop-ment programmes which will ensure affordable housing for Rwanda’s population as well as access to adequate water and sanitation facilities.

European Times: What are some major milestones for your ministry in recent years?

James Musoni: In recent years, the Ministry of Infra-structure has made tremendous progress in the sectors of transport, energy, water and sanitation, housing and urban planning. For example, Rwanda now has 1,210 km of paved roads and aims to pave an additional 1,011 km of roads by 2018. Existing roads have also been improved thanks to our focus on road maintenance, with 86% of the national road network currently in good condition. The ministry aims to increase this to 95% by 2017. Concerning air transport, Kigali International Airport’s terminal has recently been upgraded and plans are underway to resurface Kamembe Airport’s runway. We have completed the expropriation phase for the new Bugesera International Airport, and RwandAir is growing and expanding its route network.

In the water sector, the Ministry of Infrastructure, through its affi liated institutions, has now provided access to water to 75% of Rwanda’s population and the target is to reach 100% access to water by 2017.

European Times: What are some of the Ministry of Infrastructure’s current projects?

James Musoni: The ministry is currently involved in the development of several projects aimed at boosting Rwanda’s energy supplies and networks as well as promoting regional energy integration. These projects include the construction of a 98-km, 220-kV power line from Mirama in Uganda to Birembo in Rwanda which will later be upgraded to 400 kV to facilitate power trade within the region. We have also embarked on a number of on-going power-generation projects totalling around 200 MW.

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Rwanda is also making great progress in speeding up border-crossing times to support regional trade. We have upgraded border posts and built new ones to provide one-stop-shop border service in order to reduce non-tariff barriers and enhance cross-border trade and employment opportunities.

Rwanda is currently participating in the regional projects to build the Dar-es-Salaam-Isaka-Kigali railway line and the Mombasa-Nairobi-Kampala-Kigali line. New standard-gauge railway connections will facilitate the transport of bulk goods and reduce transport costs in Rwanda by 2018.

“There are tremendous opportunities

for investors in many areas, whether through direct

investment or public-private partnerships.”

European Times: Does Rwanda’s infrastructure development offer opportunities for international investors?

James Musoni: There are tremendous opportunities for investors in many areas, whether through direct invest-ment or public-private partnerships. In the transport sector, for example, these include the development of the new Bugesera International Airport, where the site is available and feasibility studies have been completed; a project to develop a rapid ferry system for passengers in highly populated areas and tourism centres; and the Mombasa-Kampala-Kigali railway project.

In the energy sector, there are many opportunities to develop hydro, peat, solar, geothermal, and methane-gas power plants as well as in converting waste to energy, establishing mini-grid electrifi cation infrastructure, building medium-sized electricity-transmission networks, and other projects to help Rwanda reach its goal of increasing access to electricity throughout the country.

Concerning water and sanitation systems, investors can get involved in projects to upgrade and expand water-distribution systems, develop a centralised sewage system for Kigali, build water-treatment systems and generate water supplies.

Regarding housing and urban planning, projects include providing services for six secondary cities concerning public infrastructure and utilities, developing affordable housing, building stadiums, and more.

European Times: What is your personal message to potential investors and partners around the world?

James Musoni: Rwanda is one of the 21st century’s most viable investment destinations. Rwanda boasts sus-tainable GDP growth averaging 8% per year, an investor-friendly business climate, a ranking as the most competi-tive place to do business in East Africa and number three in Africa according to the WEF Global Competitiveness Index Report 2013-2014, robust governance with a clear vision for growth through private investment, political stability with a strong rule of law and zero tolerance for corruption, privileged access to the East African Community market of 145 million, excellent labour resources, many government incentives to private devel-opers in the energy sector, and a political commitment to investment promotion.

It is our intention to become better stewards of the envi-ronment through the use of sustainable infrastructure practices. Now is the right moment for European and other investors to join Rwanda in its quest to develop world-class infrastructure.

Infrastructure


54

Investing in Powering the FutureRwandaʼs energy sector off ers exceptional investment opportunities as the country drives forward its Vision 2020 programme. The governmentʼs ambitious goals for the energy sector by 2020 include reducing biomass-energy use from 86.3% to 50% of the energy mix, increasing Rwandaʼs energy-generation capacity to 563 MW (almost triple the current 155 MW), and boosting electricity access to 70% of the population and 100% of public institutions.

Solar fi eld at the Agahozo Shalom Youth Village in Rwanda

© Gigawatt Global

Rwanda offers outstanding potential for investors in energy projects, not only in supplying the domestic market, where demand is set to grow exponentially, but also in exporting energy. Rwanda offers substantial hydroelectric resources; natural gas and methane gas in the Lake Kivu area; peat-, solar- and wind-power potential; and geothermal energy resources being explored in Volcanoes National Park and the East African Rift.

Electricity Development Strategy to 2017

Rwanda’s Electricity Development Strategy 2011-2017 calls for increasing hydropower generation to 333 MW, develop-ing new geothermal power plants totalling 310 MW, supplying 300 MW to the national grid from methane-to-power plants, boosting diesel generation to 20 MW as an energy backup, generating an additional 5 MW for local communities from

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InfrastructureSector

renewable-energy sources (including mini-hydropower plants), and increasing connections to the electricity grid from around 200,000 to 1.2 million, or a 50% growth in access. The policy also calls for improving energy effi ciency through a number of projects and for bringing electricity to 100% of the country’s schools, healthcare facilities and offi ces.

To reach its long-term energy goals, the government plans to phase out fossil-fuel generation and attract substantial private investment in the power sector through offering advanta-geous Independent Power Producer (IPP) agreements, pub-lic-private partnerships for energy projects, and power-pur-chase agreements based on concessions of 25 years or more.

Energy projects open to foreign investors

According to the Rwanda Development Board, top invest-ment opportunities in Rwanda’s energy sector are available in methane-gas, geothermal, peat, solar, wind and micro-hydropower plants as well as off-grid energy solutions. Specifi c projects currently presented by the Rwanda Energy Group and open to foreign investors include developing around 40 micro-hydropower sites where feasibility studies have already been completed; developing around 100 MW of methane-gas plants around Lake Kivu; building geo-thermal plants in Gisenyi and Kinigi; creating a 10-MW waste-power plant in Kigali; and building peat-to-power and hybrid solar-wind power plants.

Investors can also participate in regional hydropower projects in which Rwanda is involved. These include the 145-MW Rusizi III and the 287-MW Rusizi IV plants supported by the EU, with power output to be shared by Rwanda, Burundi and the DRC, as well as the 90-MW Rusumo Falls plant being developed by Rwanda, Burundi and Tanzania.

Concessions for energy projects are provided through the Ministry of Infrastructure, while the Rwanda Energy Group handles power-purchase agreements and technical assessments. The Rwanda Development Board offers one-stop-shop services for investors. Rwanda’s energy sector is effi ciently regulated by the Rwanda Utility Regulatory Authority, which also sets tariffs and issues licenses.

All project tenders in the Rwandan energy sector are trans-parent and open to foreign as well as local investors on an equal basis. Incentives for investors in energy projects include tax exemptions (such as VAT on imported equipment), allow-ances of up to 50% of the project’s costs, free repatriation of profi ts, a 100% write-off for R&D costs, provision of top management resources, and more.

Signifi cant FDI in energy projects

Rwanda’s energy sector has already attracted signifi cant FDI. Projects by foreign investors include the 28-MW Nyabarongo hydropower plant by Angelique International Limited and Bharat Heavy Electricals (India), which is the largest hydro-power installation in Rwanda to date. Other energy FDI projects include KivuWatt, a methane plant by Contour Global (US); Hakan, a 100-MW peat-powered plant by a Turkish investor; a 50-MW methane plant by Sybion Power (US); Goldsol II, a 10-MW solar plant developed by a Por-tuguese investor; and an 8.5-MW solar plant by Gigawatt Global (a US-Dutch venture with an Israeli research and development arm, the Jerusalem-based Energiya Global).

The €20 million Gigawatt Global plant began operating in January this year in Agahozo Shallom Youth Village, Rwamagana district, Rwanda’s Eastern Province. It is East Africa’s fi rst utility-scale solar plant. The investors, including a consortium of international partners, signed a build-operate-maintain agreement and a 25-year power-purchase agreement with the Rwandan government in 2013. The Gigawatt Global plant provides clean energy for 15,000 homes and contributes more than 5% of Rwanda’s current energy-generation capacity.

“Generation and provision of electricity to all Rwandans is a priority for the government. This plant is an important addition to help us close our current energy gap,” said Minister of Infrastructure James Musoni at the plant’s launch. He added, “We see this as an encouragement for the private sector to invest in energy projects.” Gigawatt Global’s Managing Director, Chaim Motzen, noted, “This project proves the viability of fi nancing and building large-scale solar fi elds in sub-Saharan Africa.”


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Energy-Sector Reforms Creating Outstanding Investment Opportunities in Rwanda

Rwanda Energy Group Limited (REG) is committed to ensuring world-class standards in development and operations in Rwandaʼs energy sector. REG was formed as a corporate structure in July 2014 to take over the Energy operations formerly carried out by the Energy, Water and Sanitation Authority (EWSA), a government authority combining energy and water services.

Rwanda Energy Group Limited has two subsidiary companies, the Energy Utility Corporation Limited (EUCL) responsible for generation, transmission and distribu-tion of electricity while the Energy Devel-opment Corporation Limited (EDCL) carries out the development of generation, transmission and energy access projects.

The Chief Executive Offi cer, Jean Bosco Mugiraneza explains that the mission of Rwanda Energy Group Limited is to transform Rwanda’s energy sector through effective governance arrange-ments, effi cient operational perfor-mance, good customer service and increasing access to energy services.

In the short-term, REG has four main pri-orities in the reform process of the energy

sector; implementing new group corporate structures and deploying skilled staff with supporting human resources arrangements in conjunction with KPMG Consultants aimed to drive corporate performance; verifi cation and valuation of assets and determination of liabilities conducted by PWC in order to establish a defi nite starting fi nancial position; installing an integrated information system to enhance operational control, effective data management and planning with the support of the World Bank and the Belgian Technical Cooperation; and reviewing energy tariffs based on refi ned cost structures.

Concerning tariffs, Jean Bosco Mugi-raneza explains, “Investors point out that tariffs are high, so Rwanda

Energy Group Limited is working with a Japanese company, WestJec, to develop a least cost energy devel-opment plan to facilitate the develop-ment of cheaper energy generation into the mix on priority basis. The country currently obtains electric-ity from solar, hydropower, thermal, methane-gas plants and on a small scale through electricity imports. Now we are working to develop a medium term energy-generation mix that will help us moderate our tariffs. Thermal generation now accounts for 45% in our energy mix, these are costly petroleum fi red plants; we plan to eliminate these by 2017.”

Meeting the challenges

Rwanda Energy Group Limited has a number of challenges to overcome as it reforms the energy sector. Jean Bosco Mugiraneza notes, “While we are implementing reforms, we must also keep the lights on with growing demand. Our other main challenge is to sustain the development momentum in order to meet the national strategic targets, which are to increase Rwanda’s installed energy capacity from the current 155 MW to 563 MW by 2017/2018 and to increase connectivity to electricity from the current 22% of the households to 70%. The Energy Development Cor-poration Limited has to harness all relevant technologies and sources of energy in order to reach these targets.”

Rwanda Energy Group Limited serves diverse electricity customers in Rwanda, including individuals, who pre-pay for electricity service, and companies and organisations which pay after consump-

The Power Substation of Nyabarongo

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Rwanda Energy Group LimitedNyarugenge District, PO Box 537, Kigali

www.reg.rw

tion. Jean Bosco Mugiraneza says, “Our post-pay customers make up only 4% of our total clientele in numbers, but con-tribute 60% of revenues for electricity use and their requirements are growing with the growing economy. We must raise up to the challenge of satisfying their needs and those of the incoming international investors.”

To reach its ambitious goals, Rwanda seeks to engage the participation of local and international investors supported by an enabling policy envi-ronment created by the government. As Jean Bosco Mugiraneza explains, “The government cannot single-handedly fund the huge projects required to a six-fold increase in the national installed energy capacity by 2017/2018. To this end Rwanda needs funds as well as skills to carry projects from feasibility studies through construction to com-mercial operations. Therefore, Rwanda has opened the national energy market to local and international investors through tenders, and there is commit-ment to ensure that the tender process is transparent and fair to benefi t energy users and the economy at large.”

Outstanding investment opportunitiesSeveral energy projects in Rwanda offer outstanding potential for investors, including current tenders to develop 100MW methane-gas projects at Lake Kivu. One project in the area is KivuWatt Project, which will produce 25MW by Contour Global. Meanwhile a US enterprise Symbion Power is negotiating a 50MW project in the same area.

Investors can enter the Rwanda energy market as independent power producers, establish joint ventures and sign a 25-year power-purchase agreement with Rwanda Energy Group Limited that guarantees tariffs and the concession period. Jean Bosco Mugiraneza points out that hydropower projects also offer outstanding potential in Rwanda.

The reforms in Rwanda’s energy sector will achieve great progress very quickly. Jean Bosco Mugiraneza recognises that the energy sector has long-term invest-ment time horizon, however he quips, “In three years, Rwanda’s energy sector

will be very competitive in the region. Tariffs will continue to drop as cheaper sources of generation come on board and effi ciencies are gained in opera-tions. Rwanda welcomes European and other international investors to benefi t from this progressive policy and market environment to accomplish even more projects.”

Jean Bosco Mugiraneza, who was trained in the US, is very positive about Rwanda’s future. He says, “Rwanda has maintained GDP growth of 8.5% in the past few years and is aiming at 11.5%. Africa is rich in energy resources but poor in energy supply, and this presents enormous business opportunity for both local and foreign investors. Rwanda Energy Group Limited is ready to engage in strategic partnerships with investors in various forms and to help provide a safe and secure market for our future partners.”

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Fast-Growing Enterprise Promoting Energy Investment

Ngali Energy is dedicated to ensuring that Rwandaʼs present and future energy needs are met. The company is a subsidiary of Ngali Holdings, a 100% government-owned enterprise which was formed in 2010 to invest in large-scale, long-term infrastructure projects and to provide business-incubation and consultancy services through its subsidiaries. It is playing a key role in Rwandaʼs economic growth.

Now Rwanda’s biggest investor in energy projects, Ngali Energy has developed in-depth expertise in strengthening energy systems, from policy-making to energy generation, transmission and distribution. As Andrew Nyamvumba, CEO of Ngali Holdings, points out, “Being government-sponsored is a benefi t for us at Ngali Holdings. We are able to take the best of both worlds and can minimise risk on strategic invest-ments generating investment information through early stage investment resources that most private companies cannot.”

Seeking partners who share a commitment to Africa

Harnessing the potential of a wide variety of energy resources, Ngali Energy is involved in investment, operations and research concerning hydropower, solar and geothermal power plants; utilities distribution and transmission lines; and all types of green energy. In December 2014, Ngali Energy reported that it aimed to roll out projects with a total budget of around US$88 million over the coming two years. The company is open to working with international partners and investors who share its passion, vision and commitment to Africa and its people.

Ngali Energy currently operates Rukarara I, a 9 MW hydropower plant, on a “lease-to-buy” basis from the gov-ernment of Rwanda. Ngali Energy is also developing fi ve mini-hydropower plants that will be completed within two years from 2015. Ngali Energy has signed a 25-year power-purchase agreement (PPA) at favourable tariffs with the Rwanda Energy Group. Each plant will also have a 30-year concession agreement with the Rwandan government. Ngali Energy has been awarded a power-generation license by the Rwanda Utilities Regulatory Agency (RURA) for the 5 mini-hydropower projects and it intends to continue to develop new power plants as well as help upgrade Rwanda’s existing hydro plants.

The Ngali Holdings group has established a number of international partnerships, including with a Slovenian fi rm concerning high-tech turbines and with Norwegian investors for hydropower plants. Andrew Nyamvumba concludes, “Ngali Holdings can lower costs for investors by handling all the necessary permits. In addition, Ngali Holdings has a skilled team of engineers and other pro-

fessionals can handle procurement processes effectively and effi ciently and are able to obtain all necessary permits in around a few months instead of the usual longer develop-ment periods, thanks to the government’s support.” Ngali Energy has positioned itself as the ideal Rwandan partner for international investors in energy projects.

Ngali Energy Ltd.KG 624, BODIFA House, P.O. Box 7189

Boulevard de lʼumuganda, Kimihurura, Gasabo, KigaliTel.: +250 280 305 002, +250 789 181 018

Email: [email protected] www.ngalienergy.com

Rukarara I HPP

Rukarara I HPP

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Rwanda Utilities Regulatory Authority (RURA)P.O. Box 7289, Kigali, Tel.: +250 252 584 562

[email protected], www.rura.rw

Utilities Regulator Ready to Partner with Investors

The Rwanda Utilities Regulatory Authority (RURA), established in 2003 as a telecom regulator during the launch of the governmentʼs Vision 2020 programme, has gradually extended its reach and now regulates Rwandaʼs ICT, transport, energy, media and broadcasting sectors.

Patrick Nyirishema, Acting Director General points out, “RURA is a fully independent, fi nancially autonomous regulator which regulates all utilities and fosters effi ciency through building synergies and knowledge across sectors.” RURA is adapting to the rapidly evolving utilities landscape, including the need to encourage investment in Rwanda’s ICT infrastructure.

In fact, drawing investors to Rwanda is one of RURA’s pri-orities. Patrick Nyirishema says, “We are making it as easy as possible for investors to enter Rwanda’s energy sector, for example. Rwanda offers power-purchase agreements and signif-icant growth prospects for investors in energy projects. Rwanda is defi nitely the most attractive investment choice in the region.”

RURA welcomes the chance to partner with investors. Patrick Nyirishema explains, “Investors should think of RURA not just as a regulator but more as a partner which can help facilitate the process of investing in Rwanda’s private sector. RURA looks at the big picture. We are a very fl exible partner, and RURA has earned a reputation here in Rwanda as an institution which delivers.”

Patrick Nyirishema, Acting Director General

Sector

3E PowerSuite 1605, Kigali City Tower, P.O. Box 6096, Kigali

Tel.:+ 250 788 312 [email protected], www.3Epower.co.rw

Fast-Growing Player in Rwanda’s Energy Sector3E Power, a 100% Rwandan company, is playing a crucial role in Rwandaʼs energy development.

The Rwandan gov-ernment aims to boost the country’s installed energy-generation capacity from around 120 MW to 563 MW by 2017, and 3E Power is involved in Goldsol II, a consortium set to build a 15 MW solar-power plant that will account for more than half of Rwanda’s targeted solar-energy produc-tion by 2016. Addi-

tionally, it is pursuing project leads that could generate an extra 100MW onto the national grid by 2020.

Eric Kariningufu, CEO of 3E Power, explains that the three “E’s” in the company’s name sum up its mission: “Energy for Everyone Everywhere”. Founded to provide energy-con-sultancy services focussing on renewable energy, 3E Power has grown steadily and expanded its reach over the past year to include project development and power generation as an Independent Power Producer (IPP). 3E Power is one of Rwanda’s fastest-growing energy companies.

3E Power is currently seeking partnerships to develop energy projects, and Eric Kariningufu urges international investors to take a close look at the potential of both greenfi eld and brown-fi eld projects in Rwanda and neighbouring countries. 3E Power has positioned itself as an ideal local partner for foreign investors thanks to its very strong track record, participation in some of Rwanda’s biggest energy projects, and commitment to expanding throughout East Africa and markets spreading across Western, Central and Southern Africa.

Eric Kariningufu, CEO of 3E Power


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Vast Improvements in Transport Infrastructure

In its drive to develop a vibrant private sector and support regional and international trade, Rwanda is investing around 10% of its annual budget in road, rail, air and water-transport infrastructure and has many major transport projects in the pipeline. As the Rwanda Development Board points out, Rwandaʼs transport initiatives off er outstanding investment opportunities.

Kigali bus station

© Ryan Faas-Dreamstime.com

Projects open to FDI

Projects open to foreign investors include the 130-km Kibungo-Ngoma-Nyanza road connecting south-eastern and south-western Rwanda; the 130-km Nyagatare-Byumba-Base road in northern and north-eastern Rwanda; a ring road

around Kigali, which can be developed as a public-private partnership; a new international airport at Bugesera and a new expressway between the airport and Kigali; new rural and urban roads; the Dar es Salaam-Isaka-Kigali railway, which includes rehabilitating lines in Tanzania and building a new 494-km rail link between Isaka and Kigali; the Mombasa-Nairobi-Kampala-Kigali rail route; water transport on Lake Kivu; and public transport in Kigali. Rwanda is currently pri-vatising Onatracom, its public-transport operator.

The proposed new international airport at Bugesera, 40 km from Kigali, is a crucial project for Rwanda and a huge opportunity for investors. Planned as a major air-transport hub for both passengers and cargo, it is budgeted at around €310 million. Clare Akamanzi, Chief Operating Office of the Rwanda Development Board, points out, “The aviation industry is critical to Rwanda. Not only does it connect Rwanda to the rest of the world, but it also facilitates the growth of many of the strategic sectors identified for economic develop-

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ment, including tourism and logistics. Kigali Interna-tional Airport, which Skytrax ranks as the best airport in East Africa, now has a capacity of 1.6 million pas-sengers per year. Expanding it was a temporary solution. Bugesera is the permanent solution.”

World Bank and ADB supporting transport projectsRwanda has received support for its transport projects from international funding organisations, including the World Bank and the African Development Bank. In December 2014, the World Bank completed an assessment of the transport projects it has been supporting in Rwanda in recent years and reported that the Bank had disbursed around €52 million from 2007 to the end of 2014.

The funding was for the rehabilitation of around 83 km of the Kigali-Ruhengeri road, maintenance of around 550 km of paved roads around the country, technical assistance, governance and policy support, road-safety projects, and capacity-building. The World Bank notes that the Kigali-Ruhengeri road upgrade has reached its objective of offering reliable access to markets and urban centres for around 2.1 million people living along this

main regional corridor. Rwanda’s road projects have also provided jobs for over 3,000 locals.

In February this year, the African Development Bank (ADB) announced that it would provide a €65 million loan to Rwanda for transport projects; these include upgrading the 51.54-km Base-Rukomo road along the Base-Gicumbi-Rukomo-Nyagatare axis. In addition to road improvement, the project will include building women’s centres and mod-ernising schools along the route. The Base-Nyagatare road is a key transport route for Rwanda since it provides an alternative for fl ows of goods from Rwanda’s western and northern provinces to eastern DRC and Mombasa Port via Uganda. The ADB project will begin this year and should be completed by 2019.

Regional transport hub

Projects like these are essential for Rwanda as it positions itself as a regional hub. At the World Export Development Forum held in Kigali in September 2014, Rwanda’s President, Paul Kagame, commented, “Rwanda and other EAC countries are working to build regional trade by integrating our markets. Rwanda is taking a regional approach to critical infrastructure and fast-tracking the steps we need to take.”

New one-stop border crossings

One priority is to speed up border crossings, and much progress has already been made. As François Kanimba, Rwanda’s Minister of Trade and Industry, commented recently, “The removal of non-tariff barriers such as weigh bridges and roadblocks, and the establishment of one-stop border posts, have dramatically reduced the costs and time spent to get goods from the Port of Mombasa to Kigali.”

Investors are sought for other border projects. The Rwanda Transport Development Agency (RTDA) is currently seeking a bidder for a project to construct a new one-stop border post at Gatuna on the Ugandan border. The project, funded by


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the World Bank, should be completed within nine months. Potential partners can bid up to March 17, 2015. François Nivugo Gihoza, the RTDA’s Regional Integration Manager, explains, “A process that used to take up to two hours will take 15 minutes when this project is completed. If one truck saves two hours, a lot of time will be saved, since around 200 trucks cross the border daily.”

Rwanda has already completed new one-stop border posts at Nemba and Ruhwa on the Burundi border and at Rusumo on the Tanzania border. Jean Marie Vianney Nkundiye, Vice-President of Rwanda’s Association of Truck Drivers, reports, “It used to take between three and fi ve hours for a cargo truck to clear a border, but now it takes between 30 minutes and one hour at a one-stop post.”

Rwanda’s newest one-stop border crossing is at Kagitumba on the Uganda border, a project by TradeMark East Africa. Valentine Rugwabiza, Rwanda’s Minister for East African Community, toured the new border post in February. She said, “More than 20% of Rwanda’s exports are to the EAC, so improving connections to EAC markets is a cornerstone of Rwanda’s economic strategies. This is why we are focussing on improving border crossings.” Like other new one-stop crossings, the Kagitumba post will eliminate double clear-ances on both sides of the border and should reduce crossing times to less than 40 minutes.

National carrier RwandAir, based at Kigali International Airport, is also improving its regional connections. The airline recently inaugurated direct fl ights between Kigali and Lusaka, Zambia and between Entebbe, Uganda, and Nairobi, Kenya. RwandAir plans to offer more new routes and fl ights. CEO John Mirenge points out, “The new routes and fl ights are part of RwandAir’s plan to expand its network within the region and beyond. Without a doubt, better con-nectivity leads to economic development.”

Sector

Trans-Africa Container Transport21 Boulevard de la Revolution

Ndaru Complex (opposite I and M bank)Tel.:+250 788 301 110

+250 788 352 997+250 788 300 756

[email protected]@yahoo.com

Dynamic Logistics Enterprise Expanding Regionally

Trans-Africa Container Transport Ltd is playing a leading role in positioning Rwanda as a regional logistics hub. Founded in 2006 by Rwandans, the company off ers a full range of services, including transport, general supplies, warehousing and customs clearance.

Founder Abdul Ndarubogoye, Chairman and Managing Director, explains, “We offer one-stop-shop logistics services. For example, we can handle everything related to importing goods from Europe.”

The company has its own fl eet of 70 Mercedes trucks for transport throughout the region, including to and from ports at Dar-es-Salaam and Mombasa. Trans-Africa Container Transport also has warehouses in Kampala (Uganda) and Isaka (Tanzania). Abdul Ndarubogoye says, “We are equipped to transport all types of goods, including loose and container cargo. We have customers in the mining, petroleum and other sectors but we mainly handle containers of goods for importers and exporters.”

Abdul Ndarubogoye wants to expand his fl eet to at least 200 trucks, and he is open to support from fi nancing institutions, truck enterprises and investment partners. He says, “I have a vision as well as experience. An ideal partner would be someone who can provide cash or equipment in return for a percent-age of profi ts on a trip-by-trip basis.” With its well-established track record for reliable, on-time logistics services, Trans-Africa Container Transport is an ideal partner in Rwanda.

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Dynamic Group Launching Major Construction Projects

AKAGERA BUSINESS GROUP (ABG), established in Kigali in 1997, has grown to become a dynamic diversifi ed business group with eight divisions active in the paints, hardware, wholesale trade, automobile, electronics, media, and construction industries. The groupʼs newest division, AKAGERA DESIGN & CONSTRUCTION (ADC), has a number of major projects already completed, in the process of completion, breaking ground, and many others in the pipeline.

President and Managing Director, Vinay Gorajia, who launched AKAGERA BUSINESS GROUP explains, “ABG is a household name in Rwanda where we have a 30,000-square-meter facility. Our fl agship division, AKAGERA MOTORS (distributor of Toyota, Mahindra, Hino and Ashok Leyland), revolutionised Rwanda’s transport sector by being the fi rst company to offer vehicle fi nancial leasing.

Our newest division, AKAGERA DESIGN & CON-STRUCTION (ADC), was established in 2012 and special-ises in designing and building commercial, industrial, and residential properties in Rwanda and Burundi. Partnering with strategic architects based in Italy allows ADC to become a key player in the regional real estate market.”

Fast-Growing Construction Division

Burundi: ADC’s projects include the Virago Building: a 4,000-square-meter offi ce complex in Bujumbura, which is now the headquarters of the Burundi Revenue Authority that was completed in October 2013. Also, in Bujumbura is the 80,000-square-meter mixed-use mall project, BLUE TANGANYIKA COMPLEX.

Rwanda: ADC conceived and built the AKAGERA BUSINESS GROUP Headquarters in Karuruma, Kigali. A modern building with a total 4,500-square-meter built area comprising of an offi ce area, a show room and other amenities.

KICUKIRO HEIGHTS: An apartment complex consist-

ing of 400 dwelling units. The project is in the development stage. REBERO HEIGHTS: A high-end residential complex consisting of 26 luxury homes on the hillsides of Rebero, Kigali. The project is in the development stage.

AMAREMBO CITY CENTRE: An approximately 120,000-square-meter mixed-use development in Kigali. The project is in the development stage.

The AMAREMBO CITY CENTRE (ACC) project will be a mixed-use development comprising retail space, offi ce blocks, leisure facilities, underground parking for 700+ vehicles, state-of-the-art Toyota dealership, business hotel, swimming pool and much more, all on a 23-hectare plot of land. The ACC project will be completed in three phases using modern building technology in order to meet all of its goals for this project. Phase one will begin with ground-breaking in early 2015 and will be completed over 24 months.

ABG is currently looking for partners for the ACC project. The Managing Director explains, “We are interested in working with investors in terms of various types of fi nancing, debt / mezzanine / equity. The project value is estimated at approximately US$100 million. Investors or anyone looking into Rwanda should remember that when you come here, you will become part of a family, not only contributing to the success of the investment project with ABG, but also to Rwanda’s success as well.”

AKAGERA BUSINESS GROUP (ABG)B.P. 3774 Gatuna Road, Karuruma, Kigali

Tel.: +250 573 835 / 36 / [email protected], www.abgafrica.com

Rendering of ACC


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Construction Sector Growing Rapidly to Meet Demand

Rwandaʼs construction sector is a major driver of the national economy and is set for continued strong growth thanks to increasing demand. Housing needs in Kigali alone are expected to grow to over 450,000 units by 2022, while the many big-ticket industrial and infrastructure projects in the works throughout the country represent more opportunities for both local and foreign construction companies.


To keep construction-sector growth on track, Rwanda is actively seeking investment in manufacturing con-struction materials. Rwanda currently produces cement, metal roofi ng sheets, hollow metal profi les, clay and ceramic materials (bricks, blocks and tiles), rebars and paint, but current domestic manufacturing capacity is not keeping pace with demand. As a result, con-struction materials accounted for 10% of Rwanda’s total imports in 2014.

Focus on construction materialsThe Rwandan government is committed to reducing this import bill and fostering projects which will allow Rwanda to not only fulfi l its own construction-materials needs but also produce materials for export. Rwanda’s current annual demand for cement, for example, is around 500,000 tonnes and this is expected to rise to 650,000 tonnes

by 2016. Rwanda’s Ministry of Trade and Industry has set a target of 770,000 tonnes of cement to be produced in Rwanda by 2016.

Rwanda’s top cement producers are Cimerwa and Kigali Cement Company (KCC). Busi Legodi, CEO of Cimerwa, recently announced that his company will boost its production from 100,000 tonnes per year to 600,000 tonnes by the second quarter of 2015. KCC, recently acquired by Kenya’s Athi River Mining, will also increase production, with a targeted 400 tonnes per day compared to the current 150 tonnes. Lambert Ngenzi, KCC’s Head of Marketing, says, “We use both local and imported raw materials but we plan to have a plant that produces raw materials once we have increased our cement-production capacity.” KCC currently imports clinker, gypsum and packaging materials from Kenya but is exploring limestone deposits in Rwanda.

Rwanda produces steel and steel products but demand far exceeds local production capacity. In 2013, Rwanda imported 94,000 tonnes of steel and iron products while domestic produc-tion totalled 30,000 tonnes. One of Rwanda’s leading steel enterprises, Master Steel, plans to increase its pro-duction from 3,000 tonnes per month to 8,000 tonnes and to add new products to its portfolio.

Wide range of investment opportunities

Along with manufacturing construc-tion materials, the Rwanda Develop-

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© Alan Gignoux-Dreamstime.com

ment Board singles out other investment opportunities in Rwanda’s construction sector. These include building housing developments (from low-income to high-end), sports centres, offi ce buildings, factories, commercial centres and shopping malls, and entertainment centres. Rwanda also needs more real estate services-providers and more training opportunities in construction-related fi elds, including engineering, architecture, general construction, plumbing, wiring, and more.

Several successful construction companies in Rwanda are ready to partner with international investors in construc-tion projects in Rwanda and elsewhere in the region. These companies include ISO-certifi ed Real Contractors, NPD Contraco and Seyani Brothers.

Rwanda is in the process of developing a new construction law which is expected to draw more investment in construc-tion-related activities. Lillian Mupende, Kigali’s Director for Urban Planning and Construction, points out, “The con-struction sector is one of the major pillars of our economy. If it is organised and regulated, this will attract more invest-ment into the sector and promote quality and consumer safety.” Peterson Mutabazi, Senior Engineer at the Ministry of Infrastructure, adds, “The draft of the new law articulates the core functions and priorities of the Rwandan government in the industry and addresses issues like lack of maintenance plans.” Minister of Infrastructure James Musoni concludes, “We are aware that quality infrastructure is a key ingredient to achieving sustainable development.”

Sector

Seyani Brothers & Company (R) Ltd.B.P. 399, Plot 1027, Kimihurura – Gasabo District, Kigali

Tel.: +250 788 622 700, +250 788 308 [email protected], www.seyani.com

Top-Quality Construction Enterprise Active

throughout East AfricaSeyani Brothers & Company, a family co-owned construction enterprise founded in Kenya in 1978, has an impressive track record in Uganda, Tanzania and Rwanda as well as in Kenya.

Parbat Siyani, Chairman of the PBS group of companies, explains that the company has completed a wide variety of construction projects throughout East Africa, including fi ve-star hotels and lodges, research centres, housing devel-opments, co-generation power plants, parking silos, govern-ment buildings, educational institutions, hospitals, manufac-turing plants and more. “Seyani Brothers specialises in the construction of all types of buildings. We are not involved in major road construction or infrastructures, although we could diversify into these sectors depending on the project. We have many more projects in the pipeline throughout the region and we plan to expand into South Sudan as well,” he says.

The fi rst project for Seyani Brothers in Rwanda was for the National Bank of Rwanda’s extension and modifi cation. Seyani Brothers Rwanda will continue to focus on building construction and is investigating opportunities in the construction of high-end furnished apartments. Parbat Siyani points out, “Such accommo-dations are lacking in Kigali and as Rwanda’s economy grows, we anticipate increasing opportunities in high-end real estate.” With its extensive expertise and local experience, Seyani Brothers can serve as a reliable local contractor for European investors and companies with projects in Rwanda as well as the rest of East Africa.


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Innovative Construction Enterprise Setting Ambitious Growth Targets

NPD Cotraco is building a modern Rwanda. Launched in 1996 as Nyarutarama Property Developers, NPD acquired Cotraco, a company producing concrete construction materials, in 2000 and decided to focus on road construction.

NPD Cotraco has since successfully completed a number of projects, including the tarmac for a Free Trade Zone in Kigali, a Stadium and several kilometres of roads, including a new road between Kigali and Goma, DRC. NPD Cotraco also has a maintenance contract for the city of Kigali. NPD Cotraco is currently preparing to build around 70 km of Cobblestone roads. The company aims to expand its reach by getting involved in other types of construction projects, from hydro-power plants to dams, irrigation systems and more.

A true Rwandan success story, NPD Cotraco boosted its turnover from €1 million in 2007 to €27 million in 2014. General Manager Charles Lugira says, “We are targeting €36 million in turnover in 2015, €54 million in 2016 and around €100 million by 2018. We have very limited local competition, and we have a young, vibrant, internationally trained Rwandan management team. We do not shy away from any project. We provide jobs for Rwandan workers and we support a number of corporate-social-responsibility projects.”

European standards, Rwandan materials

NPD Cotraco is committed to maintaining high standards in all its projects and to using Rwandan materials whenever possible. “Rwanda has a lot of stones, and we might as well use them to build new roads. We can build European-qual-ity roads using Rwandan cobblestones. Such roads will also require less maintenance than standard tarmac,” Charles Lugira points out. NPD Cotraco operates four quarries and is constructing a new factory to manufacture cobblestones.

The company has devised an ambitious growth plan and will continue to invest in human resources, equipment and tech-nologies. NPD Cotraco is open to working with European partners. Charles Lugira says, “We are looking for equipment as well as lower-cost fi nancing from Europe and beyond. I will be able to repay loans quickly. We aim to grow rapidly and we want to work with experienced partners who share our expertise and vision.” NPD Cotraco is already partner-ing with Austria’s Doppelmayr and with a Japanese company (DAIHO) to build a bridge connecting Rwanda and Tanzania.

For international partners, NPD Cotraco offers in-depth local experience, a strong track record, skilled workers, modern equipment, and a reliable supply of construction materials thanks to its quarries and factories producing good quality aggregates and concrete. Charles Lugira concludes, “NPD Cotraco has earned a reputation for quality and competitive-ness and is ready to grow along with its partners.

NPD Cotraco Ltd.P.O. Box 495, Kicukiro, Kigali

Tel.: +250 280 300 006, +250 280 300 007offi [email protected], www.npd-cotraco.com

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67

InfrastructureDYNAMIC CONSTRUCTION AND PROPERTY LEADER AIMS TO

EXPAND REGIONALLY

Formed in 2005, Real Contractors Ltd has completed a number of housing developments, commercial buildings, factories, water-supply and power systems, street-lighting networks and more. Managing Director Gentil Kangaho says, “Real Contractors Ltd has grown four-fold since the merger of Real Contractors S.a.r.l and Bond Trading in 2011, which is a great achievement, but we have set even more ambitious goals for the company, including expan-ding throughout the region and beyond.”

To reach its targets, Real Contractors is looking for win-win partnerships for construction projects as well as public-pri-vate partnerships. Rwanda offers outstanding growth po-tential for companies in the construction and property sec-tors, Gentil Kangaho believes. He says, “Many projects are in the pipeline in Rwanda, and the right kind of partnership would combine Real Contractors’ expertise and in-depth knowledge of the Rwanda market along with a partner’s

technologies, equipment and fi nancing support. With this kind of partnership, we would be prepared to take on ma-jor initiatives and play a key role in Rwanda’s on-going development as well as participate in projects throughout East Africa and beyond.”

Investing in the futureReal Contractors aims to be active in Uganda and in South Su-dan by 2016 and to get involved in new business lines in ad-dition to construction, commercial property, water supply and power systems. The company is investing in its future and re-cently acquired a crusher from France to produce aggregates for its own and customers’ construction projects. Gentil Kan-gaho is also looking into opportunities in irrigation systems, energy and agriculture projects that are part of Rwanda’s Vision 2020 programme. Real Contractors has completed many successful projects, among which are the Bank of Kigali- Muhanga Branch Building, Kabuga Hillside Estate, Gacuriro Mansionettes, Hostel 2020 in Nyagatare, Huye Stadium in Huye District, ADARWA Commercial Building, Granite Facto-ry in Nyagatare, the RFCC Coffee Factory in Gikondo, Nati-onal Bank of Rwanda - Rusizi and Rwamagana Branches and others. Currently the company has been contracted to build several projects, such as Five Big Industries at Kigali special economic zone Masoro, INTERSEC Security Headquarters, Green Hills Academy primary and dormitory, Epic Hotel in Nyagatare and Ngoma Hotel.

Around half of Real Contractors’ business is for the private sec-tor but Gentil Kangaho anticipates strong growth in projects for the public sector in the future. He welcomes contacts from potential partners in Europe. He explains, “Real Contractors is available as a partner and as a subcontractor. Our company is ISO certifi ed, has a highly skilled team, and meets the hig-hest international standards. Real Contractors is transparent, has the ability to deliver, and is the ideal local partner. The company has a very strong track record and we aim for Real Contractors to be number one in Rwanda.”

Real Contractors Ltd. has positioned itself as an up-and-coming leader in Rwanda’s construction and property sectors, where the company has earned a 20% to 30% market share.

Real Contractors Ltd., P.O. Box 4374 KigaliTel.: +250 788 518 686, [email protected]


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1

Leading Architectural and Construction Firm Ready for

New ProjectsSTACO, founded in 2007, has grown to become one of Rwandaʼs top fi ve architectural fi rms. STACO has also developed a diverse range of services in addition to architecture, including construction, consulting, civil engineering, real estate, and administrative support for construction projects. “We divide our portfolio between consulting, which accounts for around 40% of our business, and construction, which makes up around 60% and is our most profi table activity,” explains engineer Pacifi que Nysingize, STACOʼs founder and Managing Director.

Four services form the core of STACO’s business offering: free preliminary studies for construction projects (80% of which become actual projects for STACO); prices based solely on the surface dimensions of the project; a full range of administrative support from A to Z; and world-class con-struction by STACO’s skilled, experienced professionals, who are committed to completing projects on time and within budgets. Around 98% of STACO’s projects are for private-sector clients. The company serves non-government organisa-tions and approximately 30% of its clients are international, including from Canada, Germany, France and the UK.

Helping to upgrade construction sector

STACO serves as a benchmark in Rwanda’s architecture and construction sectors and is committed to playing a produc-tive role in the country’s on-going development. Pacifi que Nysingize aims for STACO’s construction activities to account for around 80% of the company’s business by 2020. STACO is currently involved in establishing standards and responsibilities for every position on a construction project, from the designers to the supervisor. The company is also

completing a topographical map of Rwanda which identifi es the country’s resources.

Pacifi que Nysingize would like to attract more interna-tional clients for STACO and to increase the number of the company’s projects for the public sector from the current 2% of total projects to 20% by 2020. STACO has already completed projects for Rwanda’s Ministry of Immigra-tion and Ministry of Youth and ICT as well as for district administrations.

To achieve his goals for STACO, Pacifi que Nysingize is open to forming international partnerships. “Partnerships could help the company acquire more machinery and equipment. STACO can support international companies in all their projects in Rwanda and throughout the East African Community,” he points out.

Urging international investors to look into Rwanda’s invest-ment potential, Pacifi que Nysingize concludes, “I was born in Rwanda and lived through the genocide. I am dedicated to my country. Today’s Rwanda is a safe, high-potential market with many opportunities.”

STACO Ltd.Centenary House 4th fl oor

Boulevard de la Paix, P.O. Box 3479, KigaliTel.: +250 788 306 638, [email protected]

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69

Infrastructure


1

Satisfying Growing Demand for Residential Property

Providing access to decent and aff ordable housing, especially for a growing urban population, is a top priority for Rwanda. Rwandaʼs population of 12.3 million (in 2014) is growing by around 2.7% per year, and the country already has a high population density of around 435 people per square kilometre.


Urbanisation is another factor putting pressure on the housing sector. Although around 83% of Rwanda’s popula-tion lives in rural areas (according to the 2012 census), the City of Kigali’s development plan projects that Rwanda’s population will reach 16 million in 2020 and that 30% of those people will be living in urban areas. The plan also

estimates that Kigali’s population, 1.1 million in 2012, will almost double to reach two million by 2022.

Kigali has seen a number of new upscale residential develop-ments in recent years, but lacks suffi cient lower-cost housing. The Rwanda Housing Authority (RHA) recently announced that its main focus in 2015 will be on developing new low-cost housing options. Esther Mutamba, the RHA’s Director General, explains that the RHA has acquired prime land for building some 2,000 housing units in Ndera and Kanombe in Kigali’s Kicukiro District, among other projects. The RHA is currently looking for a consultancy fi rm to provide designs for the proposed units. The RHA plans for the housing development to include 70 to 100 high-density, low-rise apartment blocks per hectare, all priced for low- and medium-income families.

Esther Mutamba commented in October 2014, “We are


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Sector

looking at best practices and options. For example, will the government construct the houses or should we bring in private investors? Everything has to be considered for the best possible outcome, and negotiations continue.” Upgrading existing housing is also being encouraged.

Developers targeting Kigali market

Kigali has recently seen a surge in the number of housing developers. One local enterprise is Urukumbuzi, which is building 300 low-cost to medium-cost housing units (which buyers are allowed to customise) in Kinyinya, a Kigali suburb. The development will also include a mini-market, a health centre, a school and entertainment facilities.

Kigali Top Mountain (KTM) and the Rwanda Social Security Board (RSSB) have focused on developing higher-end housing. KTM, owned by Kigali-based architect Paul Karangwa Gashabana, has completed high-end housing estates targeting the Rwandan Diaspora, while RSSB – a public institution which manages Rwanda’s public pension scheme and provides medical insurance for government and some private-sector employees – has several housing projects in Kigali, including Vision City and Vision 2020.

Vision City and Vision 2020 feature luxury villas and high-quality apartments as well as shops, recreational and leisure facilities, a three-star hotel, an offi ce block and a convention centre. RSSB has announced that it also plans to build a middle-income housing estate in Kinyinya and around 100 low-cost housing units on the outskirts of Kigali.

Streamlined construction permits

To attract investors to construction projects and speed up housing construction, the City of Kigali has streamlined the process of obtaining construction permits, cutting the number of steps an investor must take to get a permit from 13 to four. The new procedure will also reduce the time required to obtain a construction permit from around 104 days to around 25 days.

In another stimulus for investment in housing projects, the government can now provide developers with land as well as basic amenities, such as water and electricity. In the past, developers of government land had to build the basic infrastructure themselves. To help meet housing demand, Rwandan banks and other fi nancial-services providers are increasingly focussing on mortgage services. As the Rwanda Development Board points out, Rwanda’s rapidly growing housing market offers exceptional investment potential.

Sector

Modulus BVBANachtegaalstraat 1/1, 8870 Izegem, Belgium

+32 476 48 47 36, [email protected], www.modulus.be

Rudi De Cramer, founder

Solution against Lack of Sustainable Houses

in AfricaIn Rwanda, just like in so many other African countries, there is a great need for aff ordable and proper housing. Modulus anticipates this by launching an overall concept that can be executed with a minimum amount of training with the local population. The cost price is kept down by using local raw materials.

“In order to narrow the gap between the middle classes and less fortunate families, it is essential to build thousands of small houses in the long run (value approx. US$10,000), in order to boost the whole national economy,” explains Rudi De Cramer. “Our concept came into being through the com-bination of many years’ expertise and a deep conviction of helping with the sustainable development of communities. By introducing this Modulus concept in Rwanda the overall development of the country is supported.”

After extensive tests Modulus found the right mixture and developed the right machines. The Modulus bricks can be produced locally with hydraulic presses. Currently, 3,000 bricks can be produced a day. The aim is to press 6,000 bricks a day in three plants and thus provide 1,000 houses a year. “For this we hope to get support from funds and the local authority. This will also help us give thousands of Rwandans a job.”

The project in Rwanda is supported by FIT (Flanders Invest-ment & Trade).

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71

Mining

• Developing Natural Resources while Protecting the Environment

• Mining: Key Economic Driver and Investment Target

“The government is dedicated to working with international investors to stimulate Rwanda’s economic growth.”

Dr. Vincent Biruta, Minister of Natural Resources


72


1

Developing Natural Resources while Protecting the EnvironmentDr. Vincent Biruta, Rwandaʼs Minister of Natural Resources, discusses the exceptional investment potential of Rwandaʼs natural resources in sectors from agriculture and forestry to food-processing, tourism and mining. He also emphasises Rwandaʼs commitment to protecting its natural heritage by encouraging “green” development.

European Times: Can you highlight some of the investment opportunities Rwanda’s natural resources offer?

Vincent Biruta: Rwanda has the potential to develop its natural resources in many sectors, including mining, agri-culture, water infrastructures (for drinking water, irrigation and hydropower), tourism and forestry, among others. To make the most of this potential, the country needs more direct investments and new technologies. For example, some mines in Rwanda can only be exploited on the surface without the right equipment and technology. Foreign investors could help Rwanda take its economy to the next level in both capacity and job opportu-nities. The government is particularly looking for investors who can invest in value addition to our natural resources, including minerals resources, here in Rwanda before exporting them.

European Times: What is the Rwandan government doing to encourage protection of the environment?

Vincent Biruta: The government of Rwanda has put several laws and regulations in place to protect the country’s natural resources and prevent companies from exploiting them in a harmful way. Rwanda is looking for green, sustainable investment projects.

European Times: Why should international investors choose Rwanda over neighbouring countries like Burundi and Uganda?

Vincent Biruta: Unlike many African countries, Rwanda is economically and politically stable and has developed a very good business climate. Register-ing and operating a business is easy in Rwanda now. Rwanda offers a wide range of investment opportunities in many sectors and niches, and investors should view Rwanda as a hub of the East African Community with all its economic potential, including in the mining sectors in the DRC and Uganda. Rwanda has already attracted signifi cant foreign investment. Two examples are Phoenix Metals, whose Karuruma Tin

Smelter will be the fi rst certifi ed con-fl ict-free tin smelter in Africa, and the UK’s New Forests Company, which is focussing on value addition to the forest resources of 11,000-hectare Nyungwe forest buffer zone. Rwanda has many major projects that are open to foreign investors, including a 20,000 hectares mining concession (Gatumba) which contains eight blocks for large-scale mining and 12 blocks for small scale mining. The opportunity also arises in partnership and joint ventures with local mining companies in the areas of fi nancing, capital equipment, technical support and competitive mineral trade contracts.

European Times: What is your personal message to interna-tional investors?

Vincent Biruta: Come to Rwanda! The investment climate is very pro-busi-ness and the government is dedicated to working with international investors to stimulate Rwanda’s economic growth and improve the lives of our people.

Standard Mining Company Ltd.PO Box 2493, Kigali

Tel.: +250 788 748677+250 788 543504

www.standardminingcompany.com

STANDARD MINING COMPANY LTD

THE EUROPEAN TIMES

73

Mining

Mining: Key Economic Driver and Investment Targetand Investment Target

Rwanda aims for FDI in its mining sector to grow from around €130 million in 2012 to around €439 million in 2018 and for the mining industry to more than triple its GDP contribution to reach 5.3% over the same period. Rwandaʼs mining sector has been expanding by an exceptional 46% per year since 2008, and revenues from mining exports have already grown exponentially, rising from €35 million in 2006 to €198 million in 2013.

Cassiterite (tin ore)

© Mrreporter-Dreamstime.com

The World Bank Group’s August 2014 economic update on Rwanda, which predicts 6.6% GDP growth for the country in 2015, singles out mining as a key driver of this growth. In its report “Unearthing the Subsoil: Mining and its Contri-bution to National Development”, the World Bank indicates that Rwanda’s anticipated higher growth rate over the next two years will depend largely on increased minerals produc-

tion volumes and advantageous international commodity prices for minerals as well as proactive macroeconomic man-agement and private-sector-led growth in the mining sector.

Rwanda has extensive minerals resources which have been exploited by local and foreign companies since the 1930s. The top three minerals mined in Rwanda are cassiterite, coltan and wolf-ramite, but the country also has deposits of gold, beryl, amblygo-nite, monazite, corundum, tourmalines, quartz and more.

Meeting international standards

In 2014, Rwanda became the world’s largest exporter of coltan, which when processed into tantalum is used in mobile phones and video-game consoles. Rwanda has continued to increase its coltan exports in spite of the effects of the US Dodd-Frank Wall Street Reform and Consumer Protection Act, which controls the purchase of minerals sourced from the DRC and its 11 neighbours, including Rwanda. In response to the Dodd-Frank legislation, Rwanda implemented a Minerals Traceability Programme through which all minerals mined in the country


74

THE EUROPEAN TIMES

2

Sector

Dark crystals of wolframite (tungsten ore) in quartz

© Merial-Dreamstime.comare tagged from the mine sites until they are ready to be exported, to guarantee that Rwanda exports only confl ict-free minerals.

During Rwanda’s celebration of Inter-national Mining Day in December 2014, Dr. Vincent Biruta, Minister of Natural Resources, commented, “It is important to note that the Rwandan government and the private sector have worked together to overcome the chal-lenges posed by required verifi cation of minerals trading and tracking by imple-menting a tagging system.” Safari Eria, Manager of Wolfram Mining Process-ing in Rwanda, added, “All our minerals are exported with certifi cates of origin to ensure traceability.”

Minister Biruta also emphasises the need for the public and private sectors to work together to ensure that mining operations do not harm Rwanda’s envi-ronment. He explains, “The balance between resources-extraction maximi-sation and the protection of the envi-ronment will require using the right methodologies and technologies in mining and processing and having in place appropriate standards to guide safe, secure, environment-friendly and profi table extraction.”

New mining law more fl exible

An amended mining law implemented in July 2014 is designed to spur on the growth of Rwanda’s mining sector. Evode Imena, State Minister for Mining, explains, “The main thing that has changed in the law is the provision of new types of licenses. With the previous law, we were only allowed to grant a license of fi ve or 30 years, nothing in between. Five years was

for artisanal or small-scale mining, while 30 years was for large-scale operations. This was problematic because most mines in Rwanda tend to be small. Although they try to be organised and use skilled labour, fi ve years was too short for them, yet the government was reluctant to grant 30 years to small-scale investors.”

In the amended law, the duration of a mining license will be determined by the size and nature of the mineral deposits to be exploited, as well as the size of the proposed investment. “Now the shortest license will be for fi ve years and the longest for 25 years. In between we can give anything depending on the nature and size of the deposits,” Evode Imena says.

Jean Malic Kalima, President of the Rwanda Mining Association, welcomes the new law. He says, “The old one was

unfavourable since many investors were not ready to carry out proper business plans because the duration given by government was not fl exible. Mining is a long-term sector and most investors look at the future. The new legislation will allow us to operate more profession-ally and profi tably.”

The Rwandan government aims for the mining sector to play a key role in its Vision 2020 economic-development programme through creating new jobs, particularly in rural areas, and helping to reduce poverty. In 2014, Rwanda’s mining industry employed more than 33,000 people all over the country, and mine-workers’ salaries are higher than those of other workers in Rwanda’s rural areas. The government wants the mining sector to employ around 60,000 people by 2017-2018 and aims for at least 30% of these workers to be female.

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75

Mining

THE EUROPEAN TIMES

3

Sector

Black tourmaline

© Feathercollector-Dreamstime.comOutstanding growth potential

Mining offers outstanding growth opportunities in Rwanda, especially since, according to the Ministry of Natural Resources, the sector is currently producing only around 20% of its potential capacity. The Rwandan government privatised the mining sector in 2007 and has issued 548 mining licenses to around 213 companies involved in prospection, exploration or extraction. Most of these investments are less than €87 million. All rely on manual labour to extract minerals and only a few employ modern machinery.

Rwanda’s mining law grants investors the right to exploit three categories of mines: artisanal, small-scale and large-scale. Any investor or company with proven technical expertise and the fi nancial capacity to develop and run a mining project is eligible to apply for a mining license in Rwanda. The government has created a number of incentives, including tax advantages, for investors in mining.

The World Bank Group recommends areas Rwanda needs to focus on to unleash the mining sector’s potential. These are to continue to encourage large-scale mining operations; to continue to upgrade the legal and reg-ulatory environment for investments and licenses in mining; to conduct publicly available geological surveys to help attract investment in explora-tion; to improve processes for collecting tax revenues; to improve the recovery and domestic processing of extracted minerals; and to upgrade labour condi-tions in mines.

Targeted segments for investment

The Rwanda Development Board cites particularly high-potential opportuni-ties for foreign investors in Rwanda’s mining sector. One of these is to perform up-to-date and detailed mineral explo-ration of Rwanda’s recently identifi ed Prospective Target Areas. The govern-ment has already undertaken prelimi-nary exploration in these areas and can provide good primary geological data.

Rwanda also needs new technologies and modern equipment (including drillers, bulldozers, gravity-table shakers and more) to upgrade the mining sector’s processes, support larger-scale mining operations, and boost production. Another prime investment opportunity, according to the RDB, is exploration, mining and process-ing (including polishing) of Rwanda’s gemstones, particularly beryl, amblygo-nite, corundum and tourmaline.

MINING CONSTRUCTION & COMMERCE SOCIETY LTD (M.C.C.S Ltd)

Tel.: +250 788 307 050+250 788 528 167

P.O. Box 3704 KigaliGakenke District - Rull Sector

[email protected]

Focus on investments which add valueThe government seeks investments which will add value to Rwanda’s national resources, including minerals resources. At present, almost all of Rwanda’s minerals production is exported in the form of raw mineral concentrates rather than as metals. Processing plants to smelt cassiterite


76

Sector

Gold

© Kacpura-Dreamstime.com

Coopemikando

into tin, refi ne wolframite into tungsten and refi ne coltan (tantalite) into tantalum represent outstanding potential for investors. Rwanda also has good-quality silica sands, kaolin, vermiculite, diatomite, clays, limestone, talcum, gypsum and pozzolan which could be transformed into construction materials.

In January this year, Phoenix Metals LTD began a new venture to smelt cassiterite into semi-processed tin, a move set to boost Rwanda’s minerals-export revenues this year and to add around 30% to 40% more value to the country’s cassiterite production, which is currently around 450 to 500 tonnes per month. Phoenix Metals is working to make its smelter the fi rst certifi ed confl ict-free smelting operation in Africa. Many of Rwanda’s well-established mining companies and mining cooperatives are ready to partner or form joint ventures with foreign companies and investors. Rwandan mining companies can provide local knowledge and experience, while foreign investors can bring the financing, equipment, technical support and global market contacts that Rwanda’s mining sector needs to reach its full potential.

More and more international investors in mining are looking into opportunities in Rwanda. At the recent Mining Indaba mining conference held in Cape Town, South Africa, Invest Africa CEO Robert Hersov told the thousands of mining professionals attending the event that the current infl ow of mining investment across Africa was just the start. He said, “Africa’s risk-perception is declining and its capacity to reward rising. Nowhere else in the world can investors chase yields of up to 20%. There is a tsunami of money coming.”

1

Coopemikando MineKabuta, Gasabo

Tel.: +250 788 476 892

High-Potential Mine in Productive

Gasabo District

It currently produces wolfram and cassiterite. Jean-Baptiste Ndugutse, President, explains, “We mine and wash around 15 kg per day because we cannot yet drill in depth, but with an investment in the proper equipment and machinery, we could greatly increase our processing and production capacity.”

The mine is partnering with a French enterprise and sells all its production to Minerals Supply Africa and MUMS, Rwanda’s leading minerals traders. “Our goal is to be inde-pendent and sell directly to European markets,” Jean-Bap-tiste Ndugutse says. He adds, “Coopemikando Mine has out-standing potential.”

Coopemikando Mine is operated according to the highest international standards and has made a strong commitment to corporate social responsibility. Jean-Baptiste Ndugutse points out, “We are very involved in the government’s social projects in the area and we take very good care of our employees.”

Urging investors in Europe to take a close look at Rwanda’s mining sector and at Coopemikando Mine, Jean-Baptiste Ndugutse concludes, “Coopemikando has an ideal location in a high-potential mining area and, with the right invest-ment, it has the capacity to produce top-quality minerals for which market demand is growing.”

Coopemikando Mine, in Rwandaʼs Gasabo mining region, welcomes European investors and partners. The mining enterprise was founded in 2012 and is licensed for both exploration and exploitation.

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77

Agriculture

• The Ministry of Agriculture’s Aspirations for the Sector

• Agriculture Mainstay of National Economy

• Promoting 21st Century Agriculture

“As agriculture contributes to a large percentage of our country’s wealth,

we need to make the sector more business-orientated.”Dr. Gerardine Mukeshimana,

Minister of Agriculture and Animal Resources


78

The Ministry of Agriculture’s Aspirations for the Sector

Dr. Gerardine Mukeshimana, Minister of Agriculture and Animal Resources, discusses opportunities and challenges in Rwandaʼs agriculture sector, and the Ministryʼs hopes to harness its potential.

European Times: What is the main mission of the Ministry of Agriculture and Animal Resources?

Gerardine Mukeshimana: The Ministry of Agriculture and Animal Resources sets up policies to create conditions to change agriculture from a subsistence to a business-oriented sector. We have a mandate to make sure that agriculture becomes as com-petitive as possible, while transitioning into a modern system. We need to strategise how we can bring rural fi nance into agriculture, and are interested in gaining technologies to increase irrigation and harness rainwater harvesting to face the climate challenges. We also have the CIP (crop intensifi cation program), and are informing farmers how and why to use agriculture inputs such as quality seeds and fertilisers. We are still trying to build a crop insurance scheme for farmers. If we implement that then we will be able to attract fi nancial institutions in the sector.

European Times: What are potential products for the sector?

Gerardine Mukeshimana: We are looking at initiatives like coffee and tea farm extensions, as we want to increase tea farms by 18,000 hectares. It’s important to ensure pro-duction is in place to meet both local and export needs and we need to make sure we diversify to other products such as horticulture, livestock, and fi sheries to supply larger markets with differentiated products.

European Times: What about the livestock and fi sheries industry?

Gerardine Mukeshimana: We are working hard to bring livestock opportunities. With the ‘One Cow Per Poor Family Initiative’, milk production has grown exponentially, and there is huge potential in investing in milk and milk by-products. We need to create an environment to show this is a safe place to come for agriculture. We have also invested in fi sheries and welcome European business people and scientists to manage facilities and create values addition and marketing opportu-nities. There have been issues in production and overfi shing, but we are working to replenish the lakes and create stricter guidelines. There is immense potential in fi sh farming and aquaculture.

European Times: What are your goals for the next fi ve years?

Gerardine Mukeshimana: We need to have strong policies to eliminate barriers and provide our people with more opportunities. As agriculture contributes to a large per-centage of our country’s wealth, I feel we still have a lot to do and need to make the sector more business-orientated.

European Times: Finally, what is your personal message to our readers?

Gerardine Mukeshimana: There is a huge potential for investment in Rwanda. Investors should know that Rwanda is a business friendly country and not just a country for itself, it is a country that gives you access to other countries, par-ticularly in the EAC.

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1

Agriculture Mainstay of National Economy

Agriculture is a mainstay of Rwandaʼs economy, accounting for around one-third of the countryʼs GDP and providing employment for around 86% of the population. The sector is overseen by the Ministry of Agriculture and Animal Resources, whose mission is to ensure that agriculture and livestock production in Rwanda bring the country food security and contribute to the national economy.

Tea plantation

© Aprescindere-Dreamstime.com

The ministry is focussing on four priority programmes for the agricul-ture sector: development of sustain-able production systems; support for professionalism; promotion of product chains and agro-industry develop-ment; and institutional advancement. Within the ministry, the Rwanda Agri-culture and Livestock Inspection and Certifi cation Service makes sure that Rwanda’s agricultural products meet international standards.

The ministry has launched several programmes to spur on the growth of specifi c segments of the agri-

culture sector. These include the Crop Intensifi cation Programme, begun in 2007 and on-going, which promotes land-use consolidation, use of improved seeds and fertilisers, the creation of agricultural extension services in rural areas, marketing of agricultural products, education and training for farmers and other measures.

To help ensure food security, the ministry also launched the One Cow per Poor Family Programme (GIRINKA) with the support of various interna-tional and local organisations. This

programme, begun in 2006, provides a heifer to poor households as a means of reducing childhood malnutrition and providing income sources for poor rural families. Around 180,000 families have benefi ted from the programme and the goal is for 350,000 families to participate by 2017.

Within the ministry, the National Agricultural Export Development Board (NAEB) promotes Rwanda’s agricultural exports. The Rwanda Tea Authority (OCIR THE), the Rwanda Coffee Authority (OCIR CAFE) and Rwanda Horticulture (RHODA) have been merged to form the NAEB in order to consolidate export-promo-tion efforts.

Excellent conditions, particularly for teaRwanda offers excellent conditions for many different agricultural crops, particularly tea, the country’s tradi-tional agricultural export. Rwanda’s highlands, with altitudes of 1,900 m to 2,500 m, are characterised by steep slopes, acidic soil, a temperate climate and plentiful rain and sunshine, all perfect for growing tea. Rwanda’s tea is considered among the best in the world, but it is usually sold to be blended with inferior teas produced in other countries. Now Rwanda aims to grow, process and brand its own exceptional tea.

Rwanda’s tea industry employs around 600,000 people, many of them small-holders. The government privatised the tea sector in 2006, and several

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Coff ee washing and dry station


international investors have acquired interests in tea planta-tions and tea-processing operations. These include Rwanda Tea Investment (RTI), a UK-based enterprise which in 2012 became the major shareholder in Rwanda’s Mulindi and Shagasha tea factories. Rwanda recently privatised the Rutsiro tea factory, which was acquired by Rwanda Mountain, a long-term private investor in the tea sector. Jean Damascene Gasarabwe, head of the tea division at the National Agriculture Export Board (NAEB), explains, “We are very optimistic about this initiative as it will not only boost competition but also tea exports.” Rwanda Mountain acquired Rwanda’s Nyabihu and Rubaya estates in 2006 and a 60% share of the Kitabi estate in 2009. Jotham Majyalibu, Rwanda Mountain’s Managing Director, says, “Our target is to maintain quality and boost production and household incomes.”

The NAEB plans to distribute over 43 million seedlings of tea to growers by the end of 2017 to help increase the country’s areas used for tea cultivation from 25,547 ha to 38,000 ha and to raise tea-export revenues to more than €128 million per year by 2017.

New coffee policy

Coffee is another major crop. Around 42,000 hectares are devoted to coffee-growing in Rwanda, and around 400,000 Rwandans are involved in coffee-growing. Rwanda welcomes investment in the high-potential coffee sector. The Rwanda Development Board highlights projects to boost coffee production (including of organic coffee), washing stations and coffee-roasting operations

as top investment opportunities, and many dynamic local fi rms are open to international partnerships. In February this year, Minister of Agriculture and Animal Resources Gerardine Mukeshimana announced that the government is formulating a new policy for the coffee sector which will make the sector even more attractive to local and interna-tional investors.

Other cash crops grown in Rwanda include rice, barley (used in beer production), green beans and rice. The government aims for Rwanda to have around 40,000 ha devoted to rice cultiva-tion by 2020. Crops grown primarily for local consumption in Rwanda include plantains, bananas, potatoes, beans, sweet potatoes, cassava, wheat and maize. Small-scale farmers also raise livestock, such as goats, cattle, sheep, pigs and chickens.

According to the Rwanda Development Board, Rwanda’s high-potential agriculture sector attracted €15.6 million in private-sector investment in 2014 and has drawn around €450 million in private investment over the past decade. That total recently rose exponentially when Howard Buffett, son of fi nancier Warren Buffet, announced that his foundation would invest €438 million to help Rwanda transform its agriculture sector. Rwanda’s agri-culture sector clearly inspires investor confi dence.

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Promoting 21st Century Agriculture

Rwandaʼs agriculture sector is looking forward to a bright future as the governmentʼs agricultural-development programmes and private investment in the agriculture sector begin to bear fruit. The Rwandan agriculture sector grew by 6% in the third quarter of 2014 compared to the same period in 2013.


The Ministry of Agriculture and Animal Resources is working hard to keep this growth on track. The agriculture sector, which employs over 80% of working Rwandans, has already made great progress in helping to decrease poverty in Rwanda from 80% of the population in 1994 to less than 45% today. Gerardine Mukeshimana, Minister of Agricul-ture and Animal Resources, points out, “Rwanda is increasing its investment in irrigation schemes, land consolida-tion and post-harvest storage facilities. Rwandan farmers have fully embraced modern methods of rice production. Such advances will continue to help improve their livelihoods and lifestyles.”

Rwandan agriculture still faces a number of challenges, however. Most farms are small, family-owned plots devoted to sub-sistence agriculture. Rwanda must also cope with high population density, climate change, soil erosion, urbanisation and a

lack of improved seeds, pesticides, ferti-lisers, extension services for farmers and modern agricultural machinery.

€438 million from Buffett foundation

Rwanda recently received major pri-vate-investment support designed to help cope with these problems. The American philanthropist Howard Buffett has announced that his Sequoia Foundation will invest €438 million over 10 years to support Rwanda’s agricul-tural development. The investment will fi nance an irrigation project to bring reliable water supplies to smallholdings, a new institute for agricultural training, and other initiatives.

Howard Buffett, a friend of Rwanda’s President Paul Kagame, says, “Rwanda is one of the most progressive African countries when it comes to modernising agriculture.” According to Rwanda’s State Minister for Agriculture, Tony Nsanganira, “This investment is the biggest ever into Rwanda’s agriculture sector, but we still need as many investors as possible to help Rwanda make the most of its agriculture potential.”

Opportunities for investors

The Rwanda Development Board high-lights many possibilities for investors in the agriculture sector, where incentives include tax breaks and other support. High-potential opportunities include

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high-value horticulture processing; production and process-ing of essential oils, potatoes, soy beans, avocadoes, fl owers, beans, coffee, tea, maize, wheat, rice, stevia, honey, sugarcane and seeds; meat-processing; irrigation and mechanisation; fi sheries; production of animal feed; and dairy production.

The Food and Agriculture Organisation of the United Nations (FAO) recently praised Rwanda as a leader in Africa in promoting sustainable agriculture and announced a new part-nership with Rwanda to fi ght malnutrition and rural poverty through job creation in the poultry value chain. The project, fi nanced by FAO-Managed Africa Solidarity Trust Fund (ASTF), will “select rural youth and poor/vulnerable house-holds, mainly families headed by women, as direct benefi ciar-ies. Poultry farming will offer them supplemental income in addition to improving family diets,” says Oumar Diall of ASTF.

Focus on livestock and dairy production

The pressure to improve livestock and dairy production in Rwanda is increasing as demand for milk and meat rises due to population growth and urbanisation, The One Cow per Poor Family initiative has allowed thousands of Rwandan families to raise cows and get involved in small-scale milk production, but a challenge is Rwanda’s lack of grazing land and animal feed.

In an innovative new project, scientists are working with farmers and the Rwanda Agricultural Board to identify drought-adapted forage grasses, including a drought-resist-ant hybrid grass – Brachiaria cultivar Mulato II – which has been shown to lead to up to 10 times higher milk and meat yields in cattle. Joseph Gasana, Head of the RAB’s Karama research station, says, “We are promoting the establishment of forages because we consider livestock production to be as important as agriculture. Grazing in Rwanda is diffi cult because of limited land. However, with limited space you can harvest a lot of grass and legume forages when it is properly managed.”

Mokamorigo Tamali, a smallholder from Okara Sector, grows Mulato II in partnership with the RAB. She says, “Before I had a cow, I was buying milk for the children. Now instead of buying milk I give it to my family and sell it, and use the cow manure to fertilise my fi eld. Before I fed my cow Mulato, she produced nine litres of milk per day. Now she

produces eight litres in the morning and four in the evening and the quality of the milk is better.”

Rwanda welcomes international partnerships in agricultural initiatives. Michigan State University and the University of Rwanda recently launched a new Master of Science degree programme in agribusiness. The programme prioritises women and mid-career professionals. James McWha, Uni-versity of Rwanda professor emeritus and vice chancellor, says, “Rwandan agriculture must adopt a modern business strategy. This programme brings together all the components necessary for a major development of Rwanda’s agriculture and food industries.”

Rwanda continues to promote innovative strategies like these which will bring direct benefi ts to Rwandans as well as revenues for investors in agriculture.

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Health

• Minister of Health Highlights Impressive Progress and Future Goals

• Escalating Demand for High-Quality Pharmaceuticals

• Impressive Success through Innovative Healthcare Policies

“Rwanda is well placed to become a regional healthcare hub.”

Dr. Agnes Binagwaho, Minister of Health


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Minister of Health Highlights Impressive Progress and Future Goals

Dr. Agnes Binagwaho, a paediatrician, has been Rwandaʼs Minister of Health for the past four years. She discusses the efforts Rwanda is making to bring high-quality, affordable healthcare to its people and outlines current and future projects.

European Times: How has the Rwandan healthcare sector evolved over the past decade?

Dr. Agnes Binagwaho: Rwanda has achieved more progress in its health-care sector than expected, in spite of limited funding. Great improvements have been made in access to services, fi nancing, equipment and human resources. The Ministry of Health is working with high synergy across sectors to use funding as effi ciently as possible. Rwanda has reduced death rates from AIDS, malaria and TB, and now offers universal access to HIV treatment. Around 90% of Rwandan children have been vaccinated with ten different vaccines. We are steadily increasing the number and quality of our healthcare professionals and we have implemented an advanced electronic information system for the healthcare network.

European Times: What are your current goals for the healthcare sector?

Dr. Agnes Binagwaho: The min-istry’s mission is to bring good health to all Rwandans. Having made great progress in combating communica-ble diseases, Rwanda now needs to tackle non-communicable diseases. The ministry has launched preven-tive campaigns concerning protec-tion from HIV infection, the need to wear seatbelts and helmets, and the risks of smoking. We will continue to expand the healthcare network and will upgrade existing hospitals to three more referral and four provincial hospitals. The ministry is promoting private-sector participation, public-private partnerships, education and investment in healthcare infrastruc-ture. Public-private partnerships are already very important in the health-care sector, since around 40% of the country’s hospitals are privately owned but benefi t from government support.

European Times: What are the main challenges the healthcare sector faces?

Dr. Agnes Binagwaho: We need more healthcare professionals and more specialists in different medical fields, including oncology. Rwanda now has nine nursing schools which will graduate a total of around 900 nurses per year. We need to quadruple the number of Rwanda’s healthcare professionals so Rwanda welcomes private universities offering healthcare training. Expanding the healthcare infrastructure is one of the Ministry’s goals.

European Times: What are the opportunities for foreign investors?

Dr. Agnes Binagwaho: In addition to investment in healthcare training, the Ministry of Health wants to attract investment in private health-care facilities and high-quality phar-maceuticals, and may outsource the management of public hospitals. Investors should keep in mind that Rwanda is well placed to become a regional healthcare hub.

KING FAISALHOSPITAL KIGALI

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Health

Escalating Demand for High-Quality Pharmaceuticals

Rwandaʼs pharmaceuticals market off ers signifi cant growth potential for international suppliers of high-quality pharmaceuticals as well as for investors in pharmaceuticals manufacturing. Rwanda spends around €8.8 million annually on pharmaceuticals products and imports around 95% of these products, mainly from Europe, India, China and Malaysia.

© Rmarmion-Dreamstime.com

Demand for high-quality pharmaceuticals is high and growing since the creation of Rwanda’s national health system, which provides universal access to healthcare and covers many medicines. Rwanda is not alone in its push to establish local pharmaceuticals production. The EAC’s Regional Pharmaceuticals Manufactur-ing plan for 2012-2016 focuses on promoting made-in-the-EAC pharmaceuticals. Rwanda and Uganda recently signed a bilateral agreement to open their markets for pharmaceutical products to help combat cross-border trading of bogus drugs and to combine their efforts to develop local pharmaceuticals industries.

EAC pharmaceuticals hub

Rwanda, in the heart of the region and with a stable, busi-ness-friendly government, aims to be a hub for EAC phar-

maceuticals production. Rwanda also enjoys World Trade Organisation-mandated fl exibility in intellectual property, which allows for local production of generic versions of brand-name medicines. The Rwandan Ministry of Health’s Third Health-Sector Strategic Plan emphasises local produc-tion of medicines and other healthcare products.

Rwanda has already developed an effi cient distribution system for pharmaceuticals and related products by both the public and private sectors. In an innovative move, Rwanda’s Ministry of Health recently implemented a secure chain-of-custody pharmaceutical supply service using an advanced “cloud” platform to distribute HIV/AIDS medication and other healthcare products throughout the country.

The Pharmaceutical Laboratory of Rwanda (LABOPHAR) is currently the country’s only pharmaceuticals manufacturer, but that is expected to change soon. The Rwanda Develop-ment Board has announced that CSM Global Pharma, a joint venture between Ahmedabad-based Cadila Pharma and US-based Holtzman Group, will invest €57 million to set up a pharmaceutical manufacturing facility in Kigali, Rwanda.

Thriving pharmaceuticals enterprises already operating in Rwanda include Multiphar, Phillips Pharmaceuticals, Sophar (a Rwandan drug wholesaler which recently received an investment from Fanisi Capital to expand its product line), and Abacus Pharma Rwanda. All are growing rapidly and are open to international partnerships as they pursue their ambitious plans in the Rwanda market.

A new entry to the market is AstraZeneca Pharmaceuticals, a British company which recently launched a liaison offi ce in Rwanda as part of its expansion in Africa. US-based Merrimack Pharmaceuticals, a leader in developing new cancer treatments, is considering setting up clinical trials in Rwanda. Rwanda is clearly on the radar of global pharma-ceuticals companies.

Phillips Pharmaceuticals (Rwanda) Ltd.


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Impressive Success through Innovative Healthcare Policies

In the two decades since the genocide, Rwanda has rebuilt its healthcare infrastructure and greatly increased both access to services and quality. Rwanda has also signifi cantly reduced the incidence of AIDS, malaria and TB and is now tackling non-communicable diseases. Moreover, the country has exceeded its Abuja commitment to invest at least 15% of its domestic budget on health and education and is the only country in the region on track to achieve all of the health-related Millennium Development Goals by 2015. Rwanda welcomes international investment and partnerships in its high-potential healthcare sector.

© Alan Gignoux-Dreamstime.com

Dr. Agnes Binagwaho, a paediatri-cian and Minister of Health since May 2011, explains that Rwanda now has a comprehensive healthcare system which includes four referral hospitals and 42 district hospitals in a total of 30 districts. These districts are divided into 416 sectors in which a total 502 healthcare centres operate. Three district hospitals are to be upgraded to new teaching and referral hospitals while four will be upgraded to provincial hospitals, all with specialists on staff.

The Ministry of Health has also established a nationwide network of community health workers (CHWs). Each village is served by three CHWs, two female and one male. Dr. Agnes

Binagwaho explains, “These CHWs are elected by their villages and trained to treat common diseases, like malaria and pneumonia. If a patient shows no improvement after 24 hours, the patient is transferred to a healthcare facility. Our massive team of CHWs has contributed to Rwanda’s dramatic improvements in health outcomes over the past five years, including a 50% decline in child mortality, a 70% decline in malaria incidence, a 52% increase in the proportion of mothers deliver-ing at health facilities, and a 450% increase in the uptake of modern family-planning methods.”

Rwanda has a decentralised, multi-tiered health system which includes dispensaries providing primary and outpatient care as well as referrals; prison dispensaries; health posts handling outreach activities; health centres; district hospitals and referral hospitals. The referral hospitals are Centre Hospitalier Universitaire

Sun Enterprises Ltd.Nyarugenge district, B.P 933, Kigali

Tel.: +250 252 575791+250 788 308788

[email protected]

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HealthSector

de Kigali, Centre Hospitalier Universitaire de Butare (including the new Butare Cancer Centre of Excellence), the internationally accredited King Faisal Hospital, and Kanombe Military Hospital.

Innovative fi nancing

Rwanda’s health system is financed by both state funds and individuals’ contributions. Health insurance is provided through a variety of programmes, the largest of which is Mutuelles de Santé. Members pay annual premiums as well as a 10% service fee for each visit to a health centre or hospital. Membership is voluntary and premiums are based on economic status. The programme was first introduced in 2004 and only six years later, 91% of the Rwanda population was insured through Mutuelles de Santé. Mutuelles de Santé does not cover private health centres.

Rwanda’s impressive healthcare system has become a model for other countries. Dr. Agnes Binagwaho points out, “The success of Rwanda’s healthcare sector is due to the fact that the government works as one in pursuit of an integrated and community-driven development process. Other national programmes similarly fi ght poverty and promote economic growth in ways that amplify the work of the health sector. For instance, the Ubudehe process of village-level community decision-making that includes ‘poverty-mapping’ allows for better targeting of social services and pro-poor subsidies for items such as Mutuelles de Santé.”

The Ministry of Health’s approach is clearly working. Dr. Agnes Binagwaho says, “We want every Rwandan to be capable of contributing premiums to the Mutuelle de Santé programme. When international visitors ask how we plan to make this sustainable, I show them a graph of Rwanda’s recent GDP growth. Rwanda has the vision of becoming a middle-income country that is able to self-fi nance our pro-poor social interventions and guarantee equitable access to high-quality medical care.”

Sector

La Croix du Sud HospitalP.O. Box 1825, Gasabo District, Remera Sector, Kigali

[email protected], [email protected]

Leading Hospital Offers World-Class Care

La Croix du Sud Hospital brings world-class healthcare to Rwanda. Founded by a gynaecologist as a small private clinic in 1994, the clinic was renamed Polyclinic La Croix du Sud in 1998 and broadened its services to include surgeries.

It also handled more than 1,000 births per year. In 2009, La Croix du Sud took another major step forward when it moved to new premises in Remera, in the Gasabo district of Kigali, and offi cially became a hospital.

Today, La Croix du Sud Hospital’s mission is to become one of the top healthcare institutions in Rwanda and in the region by strengthening both its preventive and curative medical services. The hospital is committed to offering quality medical care as well as excellent patient-oriented services through employing modern medical technology and professionalism. La Croix du Sud Hospital’s guiding principles are integrity, respect, a determination to offer quality service, empathy towards patients, and a spirit of teamwork. The hospital’s services include obstetrics and gynaecology; internal medicine; paediatrics and neonatology; ORL; dermatology; dentistry; physiotherapy; emergency medical care; family planning; preventive medicine; hospitalisation; laboratory services; medical imagery; pharma-ceutical services; and catering. The hospital currently has 106 beds and plans to increase its capacity, add new services to its portfolio, and continue to offer outstanding medical care.


88

Tourism

• Unique Ecotourism Destination with Wealth of Attractions

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The Land of 1,000 Hills a Must-See Destination

Ikaze Mu Rwanda! Welcome to Rwanda, ̒ the land of 1000 hillsʼ. This green, beautiful, peaceful nation features exceptional biodiversity, a friendly population, a rich culture and a wealth of opportunities for visitors and investors. No wonder CNN Fodorʼs Travel ranked Rwanda a “must-see” destination in 2014.

Lake Kivu


Set on the equator yet with a mountain-ous landscape, Rwanda offers diverse natural attractions, from volcanic mountains where endangered mountain gorillas live to beautiful Lake Kivu with its wide beaches and archipelago of islands. Rwanda is also a popular choice for cultural tourism thanks to its rich heritage of dance, music, art and handi-crafts. The nation’s capital, Kigali, is a dynamic modern city with world-class hotels – including the iconic Kempinski Mille Collines as well as Radisson Blu,

Marriott, Park Inn and Protea – as well as many entertainment and cultural venues.

Thanks to its unique attractions, Rwanda is positioning itself as Africa’s premier eco-tourism destination. The Rwanda Development Board (RDB) is promoting Rwanda as a high-quality tourism choice and high-potential tour-ism-investment target while also sup-porting innovative projects which will protect Rwanda’s rare biodiversity and cultural heritage.

Rapid tourism growth Rwanda’s tourism industry, the country’s main source of foreign-exchange revenues, is growing fast. According to the RDB, Rwanda’s tourism revenues rose from €54 million in 2000 to €265 million in 2014, and Rwanda attracted 1.17 million tourism arrivals between July 2013 and July 2014. The RDB aims for tourism arrivals to grow by 10% per year to 2020 and for tourism revenues to climb to €753 million by 2016 and to be growing by 25% per year by 2020.

To help reach these ambitious goals, Rwanda is working hard to improve its tourism infrastructure and services. The Rwanda Tourism University College in Kigali is training professionals in the tourism and hospitality sectors and will graduate over 400 students this year. Rwanda is also stepping up its invest-ment in tourism marketing, both region-ally and internationally.

New tourism visa

East African tourism represents an important growth segment for Rwanda, and in January 2014, Rwanda joined with Kenya and Uganda to implement the East Africa single joint visa. As Michael Ryan, EU Ambassador to Rwanda, points out, “The single tourism visa which allows tourists to move freely within the three countries without paying more fees will open the region to over one billion travellers from all parts of the world, thus boosting tourism revenues.”


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Gorilla Trek at Volcanoes National Park

© Zaramira-Dreamstime.com

Rwanda is promoting its tourism packages which visitors can combine with tourism offerings in neighbouring countries. At a conference for regional tourism operators held in Kigali in December 2014, Yamina Karitanyi, Head of the RDB’s Tourism and Conservation Department, pointed out, “We want to demonstrate to high-value EAC tour operators that Rwanda is a multi-day destination with a rich selection of cultural and natural experiences.”

Rwanda’s top tourism attraction concerning visitor numbers and revenues is its population of endan-gered mountain gorillas. Rwanda has made huge investments in conserving the gorillas’ habitat and in protect-ing the animals from poachers while also making it easy for tourists to visit

the gorillas. A popular annual gorilla-naming ceremony for baby gorillas, Kwita Izina, highlights Rwanda’s efforts to foster appreciation for the rare animals.

MICE tourism a strong growth market

The MICE tourism sector is also expanding rapidly in Rwanda as the country’s economic development takes off. In May 2014, the RDB and the Rwanda Convention Bureau presented Rwanda’s MICE appeal at the global IMEX travel fair in Frankfurt. Frank Murangwa, Head of MICE at the RDB, commented at IMEX, “This is a great platform for Rwanda to be showcased at the international level as an emerging MICE destination.”

Rwanda offi cially launched its MICE offerings at the meeting of the African Development Bank held in Kigali in May 2014. The Rwanda Convention Bureau, one of only two national convention bureaus in Africa (the other is South Africa’s), is spearheading the country’s MICE initiatives. Rwanda achieved €42.9 million in MICE revenues in 2013 and expects to triple this total by 2017, when MICE tourism is expected to account for 16% of national exports and 34% of Rwanda’s tourism revenues. The Rwanda Convention Bureau aims to place Rwanda among Africa’s top 10 MICE destinations by 2016.

Investing in tourism

Rwanda is making major investments in the tourism sector. EU Ambassa-dor Michael Ryan points out, “The construction of the Kigali Conven-tion Centre Complex, a facility that will house a state-of-the-art conference hall, an ICT park and two interna-tional hotels, will play a leading role in Rwanda’s drive to become a confer-ence hub.” Upgrades to Kigali Inter-national Airport and the expansion of RwandAir will also boost tourism numbers.

Rwanda welcomes FDI in its fast-grow-ing tourism sector. Specifi c projects proposed by the RDB include golf resorts, hot-springs spas, eco-lodges, the Karisimbi cable-car project, boat services on Lake Kivu, and Kigali Culture Village. Rwanda’s tourism industry is defi nitely taking off.

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Landmark Hotel of KigaliThe iconic Hôtel des Mille Collines has been much more than a hotel ever since it opened in 1973 as Rwandaʼs fi rst grand hotel.

This landmark property in Kigali, set high on a hill overlooking the city, has long been a pillar of Kigali’s social life as well as a world-class hotel representing the best Rwanda has to offer. Playing a starring role in the fi lm “Hotel Rwanda”, it is also the epitome of Rwandan resilience.

Now this beloved property has joined “Kempinski – a Collection of Individu-als”, Europe’s oldest luxury-hotel group, founded in 1897. Hôtel des Mille Collines by Kempinski combines uncompromising Kempinski standards of luxury and per-sonalised service with the famed hotel’s vibrant history and the warm welcome for which the people of Rwanda are known.

Today, Hôtel des Mille Collines by Kempinski offers two restaurants well known for their famous signature bro-chettes and for the best breakfasts in town as well as for the fi ne Mediterranean cuisine served at Le Panorama restaurant on the hotel’s fourth fl oor, where diners can also enjoy breath-taking views of the hills of Kigali. The hotel also has three

convivial bars and lounges, a ballroom accommodating up to 300 guests, four meeting rooms and a business centre.

The iconic feature of the hotel is an outdoor swimming pool situated alongside the Pool Bar. Combined with the outdoor restaurant and enticing live music, this area forms the heartbeat of Hôtel des Mille Collines by Kempinski. Christoph Strahm, General Manager, explains, “As everyone in Kigali knows, Mille Collines is THE place to see and be seen, every evening and during special occasions like the Chill-Out Sunday Brunch, exciting cultural events and much more.”

Remarkable Rwanda. Remarkable Hospitality.

Along with other signature touches and services, Hôtel des Mille Collines by Kempinski has introduced the “Lady in Red”, Kempinski’s personalised concierge, refl ecting the Kempinski focus on in-house guest services. Additionally, from the second half of 2015, a complete renovation of this

legacy of hospitality will begin. “We plan to convert some rooms into junior suites and create completely new panoramic suites, which will slightly increase the number of keys. The new suites will have breath-taking views over the hills of Kigali and will refl ect the local culture. By doing this, we will completely reinvent this iconic hotel,” Christoph Strahm points out. He concludes, “The fi rst grand hotel in the country and the true landmark of Kigali has been combined with the management competence of Kempinski, Europe’s oldest luxury hotel group, in a perfect marriage. The luxurious Kempinski standards and the remarkable warm and welcoming attitude of the people of Rwanda are addi-tional value-added features that will reposi-tion Hôtel des Mille Collines by Kempinski as the undisputed market leader of the hos-pitality sector in Rwanda.”

Hôtel des Mille Collines by Kempinski2KN 6th Ave, Kigali, P.O. Box 1322

Tel.: +250 788 192 [email protected] www.kempinski.com/kigali


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The Serena Hotels in Rwanda

The Serena brand is known for high quality and standards and its hotels in Rwanda are no exception! Whether it is Kigali Serena Hotelʼs stylish polished-granite atrium fi lled with Rwandan art or Lake Kivu Serena Resortʼs tranquillity, the hospitality sector in Rwanda is taken to the next level. As General Manager Charles Muia puts it, “Whether you come for business or pleasure, Serena Hotels are here to make your Rwandan experience unforgettable.”

The Kigali Serena offers 148 guest-rooms and suites, from standard rooms to the resplendent three bed room Presidential Suite. Guests can relax in the exclusive lounge with its vibrant bar, cosy piano bar and outdoor terrace, or pamper themselves with a visit to the Maisha Spa and Health Club and the Beauty Salon, explore the in-house boutique, keep in shape in the fi tness centre or arrange a guided tour of sites in Kigali and around Rwanda.

Dining at the Kigali Serena is always a pleasure thanks to the hotel’s focus

on serving superb cuisine made from fresh local ingredients. The classically elegant Milima Restaurant overlook-ing the pool and tropical gardens serves a great variety breakfast, a sumptuous lunchtime buffet and exceptional dinners, and is one of Kigali’s most popular restaurants; a perfect place for your Business and pleasure. The relaxed and stylish Sokoni Restaurant is a trendy place to meet and is well known for its interna-tional cuisine, live music and colourful cocktails.

The hotel’s conference facilities – the most extensive in Rwanda – make the Kigali Serena the business venue of choice for executive travellers. The hotel has its own auditorium seating 500 guests, a lavish ballroom seating 800, and several meeting rooms for meetings of various sizes, all equipped with the latest technologies. Another plus is that the Kigali Serena is just 10 km from the international airport.

Weekend getaway at the Lake Kivu Serena Resort

Guests looking to enjoy the perfect weekend getaway can relax at Lake Kivu Serena Resort, set in tropical gardens overlooking the white-sand beaches of Lake Kivu, the sixth-largest lake in Africa. The resort offers 66 guestrooms, Deluxe double rooms and Family rooms and Suites. For those looking for that extra treat there is a beautiful outdoor pool, a health and beauty centre, all kinds of sports options, and very classy beverage and dining choices. The resort’s popular Kiyaga Restaurant spe-cialises in a variety of dishes and theme nights. The resort also has a world-class, fully integrated conference centre with meeting rooms for groups of various sizes.

Whether in the heart of the city or in a spectacular lakeside setting, Serena Hotel in Rwanda excel at offering relaxed yet elegant comfort with a unique Rwandan touch.

Kigali Serena HotelKN 3 Avenue,

P.O. Box 7469 KigaliTel.: +250 788 184 500

[email protected] www.serenahotels.com

Kigali Serena Hotel

Lake Kivu Serena Resort

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Popular Boutique Property Known for World-Class Standards

Hotel Karisimbi, privately owned by Alexis Vuningoma, brings world-class services and authentic Rwandan character to Kigaliʼs hotel scene. The centrally located boutique property has 20 guest rooms and suites, all newly and elegantly decorated, sparkling clean and equipped to the highest international standards.

The junior suites are especially luxurious. Additional amenities include a highly rated restaurant, a sports bar with a large-screen LED TV, well-equipped conference rooms, a swimming pool, car-hire service and extensive parking.

General Manager Ayub Alee has 18 years of experience in the hospitality sector and was formerly food-and-bever-ages manager for the fi ve-star Munyonyo Commonwealth luxury resort in Uganda. He says, “Karisimbi Hotel is well known for its high-quality food and international-standard services for our valued guests. Around 85% of our guests are executive travellers who prefer to stay with us not only because of our location but also because of our exceptional and friendly services. We are ranked the best in Kigali for catering services as well, and we provide food and beverage services for the parliament of Rwanda.” Karisimbi Hotel also offers transportation services, foreign-exchange support,

and travel arrangements for safaris, city tours and other kinds of trips.

The hotel is popular among business and leisure travellers alike and has earned a strong reputation for its excellent service and good customer care. Ayub Alee notes, “From my past experi-ences, what I have learnt is that if you take care of your guests and their needs, your business will benefi t and hence you will have both sound profi ts and a good reputation in the market. Now we are focussing on developing a chain of franchise hotels under the Karisimbi Hotels brand name, which we expect to become a well-known hospitality brand in the near future.” For business or leisure visitors in Kigali, Karisimbi Hotel is the best choice for a home-away-from-home.

Hotel Karisimbi KigaliBigogwe road KIYOVU - St. KN41 Kigali - Tel.: +250 788 517 073

[email protected] - www.hotelkarisimbi.com


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Unique Ecotourism Destination with Wealth of Attractions

Rwanda is truly a one-of-a-kind destination. This green, unspoiled, beautiful land is home to one third of the worldʼs remaining mountain gorillas, one third of Africaʼs bird species, several species of primates, volcanoes, game reserves, resorts and islands on Lake Kivu, graceful dancers, welcoming people, and a vibrant cultural scene. Rwanda is also safe and easy to get around, with diverse attractions within one to fi ve hours by car from the countryʼs capital, Kigali.

Intore Dancer

© Aprescindere-Dreamstime.com

The gateway to Rwanda for most visitors (via Kigali Interna-tional Airport), Kigali is blessed with beautiful hilly scenery and a mild climate year-round and is ranked one of Africa’s friendliest, cleanest and safest cities. Cultural venues include the Presidential Palace and Natural History museums as well as Gisozi Genocide Memorial Centre and Nyamata Church, honouring the victims of the Rwandan genocide. Kigali has a choice of international luxury hotels, world-class business services, and many entertainment options.

Rwanda also offers a wealth of attractions beyond Kigali. In Butare, known as the country’s intellectual capital, are Rwanda’s National University, Institute for Scientifi c Research, and National Museum. Another popular destina-tion is Nyanza’s King’s Palace Museum-Rukari, a restored 19th century palace of Rwanda’s kings.

Lake Kivu, on Rwanda’s western border, is another not-to-be-missed destination. It is one of a string of huge freshwater lakes along the Great Rift Valley and is the highest and sixth-largest lake in Africa. The lake is surrounded by green slopes, terraced banana plantations, eucalyptus groves and pictur-esque towns, including Gisenyi, a colonial beach resort, and Rubona, both of which now offer international-standard accommodations. Kibuye (or Karongi) is a base for boat trips to nearby islands.

Visiting mountain gorillas

Rwanda’s most famous attraction for tourists is its endan-gered mountain gorillas, honoured every year by the Kwita Izina gorilla-naming ceremony. In July 2014, over 40,000 local and international visitors attended Kwita Izina in Kinigi. Valentine Rugwabiza, CEO of the Rwanda Develop-ment Board, commented, “We celebrate, for the tenth time, the growth of the gorilla family by naming 18 baby gorillas born this year, bringing the total population of the endan-gered species to over 600.”

Volcanoes National Park where the gorillas live is one of Rwanda’s top destinations for visitors. Covering 125 sq km of lush forests, it contains six volcanoes (the Virungas). Visitors climb through rainforest fi lled with colourful birds where they may see the rare golden monkey before reaching the gorilla habitat. Many tour operators offer organised visits to the gorilla park and will arrange the required permits.

Rare fl ora and fauna

Rwanda’s location in the Albertine Rift and its dense forests make it a haven for birds – and bird-watchers. Rwanda has

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TourismSector

Akagera National ParkAncient Kingʼs Palace in Nyanza

© Boggy-Dreamstime.com© Antonella865-Dreamstime.com

seven offi cial Important Birding Areas: Volcanoes, Akagera and Nyungwe national parks; Rugezi Swamp; Akanyaru; Nyabarongo; and Cyamudongo.

Akagera National Park on the Tanzania border illustrates Rwanda’s great natural diversity. In contrast to the lofty Volcanoes National Park, Akagera National Park features a labyrinth of savannah, swamps and lakes along the Akagera River, the Nile’s most remote source. This is Rwanda’s best choice for spotting elephants, hippopotamus, crocodiles, giraffes, zebras, impalas, oribis, bushbucks and the Cape eland. The park is also the home of an array of birds, including the rare papyrus gonolek and the shoebill stork.

Nyungwe Forest National Park in south-western Rwanda is another unique habitat. The biggest montane forest remaining in east and central Africa, the park is known for its unparal-leled biodiversity. Its forests feature around 200 tree species and hundreds of different fl owering plants, including wild begonias, more than 100 species of orchid, and sensational giant lobelias.

The park’s fauna includes 13 species of primates and more than 275 bird species, making it the region’s most important birding site. The Rwenzori turaco, the secretive red-chested alethe, iridescent sunbirds, giant hornbills, and the great blue turaco are just a few of the birds visitors may see.

Music, dance and art

Rwanda’s music, dance and art are highlights for many visitors. Performances of traditional dance are regularly

held at the Iby’Iwacu cultural village in Musanze district or in the Ethnographic Museum in Huye. The finest display of Rwanda’s varied and dynamic tradi-tional music and dance is provided by the Intore Dance Troupes, founded centuries ago. Rwanda has a long tradition of art and handicrafts, and traditional Agaseke baskets have become famous worldwide. The Gahaya Links Gifted Hands centre in Kigali lets visitors see artists weaving these baskets and sells finished works. Traditional imigongo, paintings made with cow dung, are produced by a local coopera-tive in Nyakarambi near the Rusumo Falls border with Tanzania and can be found in art centres and galleries, including in Kigali.

All these choices for visitors are just the beginning. From natural wonders and rare gorillas to exceptional fl ora and fauna, vibrant music and dance, and unique arts and crafts, Rwanda has it all as an ecotourism destination.

Primate Safaris

O nc e in a L i f e t ime E xper i en c e !

www.pr ima te sa fa r i s . in f o


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1

Exceptional Facilities for Business and Leisure

Sports View Hotel, which opened in 2009, has everything international travellers are looking for when they visit Rwanda. Set on a hill overlooking Kigali and the surrounding mountains, the hotel off ers 40 rooms of diff erent types, each equipped with a telephone, TV, wireless Internet connections, a modern

bathroom and attractive décor.

The three-star hotel is a hit among international travellers thanks to its comfortable rooms, world-class facilities and professional service. General Manager Vincent Ntirenganya explains, “All the members of our staff work very closely together to satisfy our guests. It is a pleasure to be the general manager of such a professional staff. Our people work arduously to provide the most effi cient service possible.”

Set in several acres of landscaped gardens, the hotel welcomes both leisure and business travellers. Amenities include a highly rated restaurant serving delicious local and interna-tional dishes, two convivial bars, an outdoor swimming pool, a sauna, a steam bath, as well as an airport shuttle, tourism services, a business centre, a beauty salon, and ideal facilities for meetings and events. Massage service is also available at a reasonable price. Sports View Hotel contains a wide choice of state-of-the-art conference rooms, two of them accommo-dating up to 1,000 people each, one for up to 80 people and one for up to 30 people.

Sports View Hotel’s location is another plus. It is just across the street from Amahoro Stadium, which is the home of the national football team and was chosen to host the main remembrance ceremony marking the 20th anniversary of the Rwandan genocide in April this year. The gym of the Amahoro Stadium is at the disposal of the hotel’s guests.

The hotel’s staff members were selected from throughout the East African Community and are not only multilingual but also multicultural. Vincent Ntirenganya says, “We managed to fi nd knowledgeable persons capable of working profes-sionally and who can speak many different languages.”

Open to international partnershipsThe hotel partners with several international organisations, embassies and NGOs, and welcomes guests from all over the world. Vincent Ntirenganya points out, “We are open to international partnerships, for example with airlines and travel agencies worldwide.”

Sports View Hotel will continue to expand its facilities and services, including adding a nightclub. Vincent Ntirenganya urges international travellers to visit Rwanda, a safe and beautiful country with great investment appeal. He concludes, “Please come visit and invest in Rwanda, and make Sports View Hotel your home-away-from-home in Kigali.”

Sports View HotelRemera, Kigali, P.O. Box 2569

Tel.: +250 788 301 003, +250 788 301 [email protected]

[email protected] www.sportsviewhotelrwanda.com

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Tourism

1

Welcoming Hotel an Ideal Home-Away-From-Home in KigaliStep Town Motel, a winner of the coveted Trip Advisor “Certifi cate of Excellence,” is an ideal choice for business and leisure travellers in Rwanda. The Rwandan-owned hotel is ideally located in a quiet hilltop location overlooking Kigali just a short drive from the international airport and within walking distance of the city centre.

The hotel offers a wide choice of accom-modations, from single, double, standard and triple rooms to VIP suites and a small apartment with its own terrace for stays of a month or more. Every room and suite is equipped with modern fur-nishings, DSTV, WiFi Internet con-nections, a fan, mosquito netting and screened windows, a telephone, an en suite bathroom, and a safe on request. Non-smoking rooms are available.

The hotel’s amenities include a new gym, a conference room ideal for business meetings, airport transfers, spacious parking and car-wash service, overnight shoe-shine service, daily housekeep-ing, laundry service, room service, full concierge services, car hire and taxi service, a small library and book exchange and travel services. Satisfi ed guests praise the hotel’s exceptional cleanliness, the restaurant’s fresh and tasty cuisine, the beautiful garden surrounding the hotel, the great views from the restaurant’s terrace and from the upper-fl oor rooms and suites, and Step Town’s friendly, accommodating staff members.

Step Town Motel’s restaurant specialises in serving local and international dishes made with the freshest local ingredients, including tropical fruits, and is open for breakfast, lunch and dinner every day. Guests can dine on the terrace in the hotel’s lovely garden, which offers panoramic city views, and have a drink at the convivial bar.

Ideal hilltop location not far from Kigali’s main attractionsThe hotel’s welcoming staff members can help guests arrange visits to sites in Kigali and throughout Rwanda. John Yves, Manager, explains, “Our guests can relax in Step Town Motel all day long but if they want to see other sites, Kigali Genocide Memorial, restaurants,

shops and government offi ces are all not far away, and our staff can help guests organise their excursions.”

Step Town Motel has its own online reservations service through its web site for guests’ convenience. John Yves concludes, “Step Town Motel is known for its exceptional hygienic cleanliness and its warm, friendly atmosphere and the value of your money. Step Town invites you to come, relax and enjoy Kigali, and leave the rest to us.”

Step Town MotelRugenge, Kigali, P.O. Box 6470

Tel.:+250 252 500 042/56 +250 785 005 662+250 788 460 075

[email protected]


981

Comfortable and Relaxing Base in Kigali

Okapi Hotel, a landmark in Kigali, off ers a convenient location downtown Kigali for aff ordable prices and exceptional service. The hotel has a wide choice of 37 guestrooms, and also off ers apartments.

Rooms and apartments have private bathrooms, TV, desk and WiFi Internet connections. Most rooms also have mini-refrigerators and balconies with stunning views of the city and sur-rounding countryside. Visitors planning a longer stay in Kigali can choose one of Okapi Hotel’s furnished apartments with a fully equipped kitchen.

Meeting facilities and popular restaurant

Egide Ruzindana, CEO, points out, “Okapi Hotel caters to both locals and tourists. For business travellers, the hotel has a conference room which can host up to 40 people.” Guests can relax at the hotel’s bar, which serves a range of local and imported beers and other drinks in a cosy atmosphere.

The Okapi restaurant offers a mag-nifi cent view of Kigali and specialises in serving Rwandan and international dishes. The hotel’s chefs prepare meals using the freshest vegetables, fruits and choice of meats from local farms. The restaurant serves a full hot breakfast with fresh fruits, sausages, vegetable sautés and more. International food quality and safety protocols are observed in providing delightful, worry-free meals throughout the day. The attractive res-taurant provides a venue for banquets and other events for up to 60 guests.

Okapi Hotel’s amenities include com-plimentary WiFi Internet connection throughout the hotel, satellite TV and laundry service. Shipping services through Federal Postal Offi ce, FedEx, DHL or other private carriers and travel services are all on the same city block with Okapi Hotel. The hotel’s experi-

enced staff can help arrange visits to Rwanda’s famous gorilla park and other sites around the country as well as tours of Kigali, or other local and national transportation needs.

The convenient location means quick and easy access to any business or government site, as well as a short walking distance to modern shopping malls (including Kigali City Tower and Union Trade Centre) and traditional local markets.

Regional business travellers, families and intercontinental visitors fi nd their needs looked after in every season. Comfortable, safe, clean and affordable, Okapi Hotel is a long-established leader in hospitality in Kigali.

Egide Ruzindana says, “Each Okapi employee lives up to our motto and promise to our guests: “Once in Okapi’s care, we will help you fi nd all you need, all you want, and all you are looking for, to make you feel at home.”

Okapi HotelP.O. Box 1775, Kigali

Tel.: +250 252 571 667+250 787 335 162+250 728 335 162

www.okapihotelrwanda.com

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99Don’t miss the opportunity to be part of the Rwanda TV program

For more information: [email protected] - www.us-television.tv

FOX 5 NEW YORK

RWANDATHE LAND OF PROMISE

COMING SOON:Special featureon Rwanda’s economic growthto be aired on


100

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100

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