Rwanda’s Investment Code defines investment as the creation or acquisition of new business assets or the expansion, restructuring or rehabilitation of existing business enterprise. Investment promotion involves all activities aimed at encouraging greater infusion of investments to fuel growth as well as enhancing the image of the country as an ideal location for investments. By its very nature, therefore, investment promotion is not sector specific. Instead, its scope is overarching and cross-cutting in nature.

Rwanda’s leadership realizes that economic growth must be driven by focused public and private sector investments as well as taking the necessary legislative and policy initiatives aimed at enhancing the country’s attractiveness as a base for business. Accordingly; the Investment Promotion Policy is designed to provide a policy framework within which present and future investment strategies and actions will be undertaken in a focused manner if Rwanda is to realize its growth objectives in line with Vision 2020 development expectations.

The strategies and programmes in this policy document are directed towards:

 Expanded production and value addition in traditional exports: tea, coffee and tourism

 Diversification of the export base: leather, horticulture, handcrafts, etc

 Focus on high value, innovative products and services

 Creation of a Rwanda Brand

 Enhanced institutional competitiveness in investment promotion

Rwanda’s National Investment Strategy envisages the increase of total investment from 22% in 2005 to 30% of GDP by 2020. This envisaged accelerated growth will require significant expansion and deepening of investment as well as export performance. By implication; investment promotion must come into play to mobilize more infusion of capital, mainly private, necessary to drive targeted growth levels.

Sector constraints and opportunities

The success of investment promotion efforts are constrained by the following challenges to economic activities in Rwanda:

 Limited rural development and agricultural transformation
 Poor economic infrastructure - high transport costs, energy shortages, etc
 Weak private sector
 Inadequate human and institutional capacity
 Limited access to finance
 Negative perception of Rwanda abroad
 Low levels of domestic private savings and investment
 Low purchasing power of the population

The discerning investor should see the deficits in the Rwandan economy as opportunities for investment action. Some of the opportunities include:

 The virgin condition of the economy with opportunities for investment across many sectors such as agro-processing, mining, energy generation, transportation, tourism, horticulture, ICT, banking and finance, etc.
 Free Zone development that creates opportunities for investors to use Rwanda as a regional commercial hub.
 Increasing stability in the region which should engender greater investor confidence.

Investment Promotion Strategies and programmes

The strategies advocated in the Investment Promotion Policy are articulated around 5 main axes:

1. Become a Centre of Excellence in Soft Infrastructure and Governance Establish a modern, liberal and efficient legal framework for investment Achieve excellence in administration: make good governance systematic

2. Establish a skills attraction and dissemination

3. Set up public investment priorities to support private investment

4. Bridge Rwanda’s image gap

5. Implement selected strategic initiatives and promotional activities

Establish multi-facility industrial parks

Establish free port/free zone fiscal regime

Create offshore financial services through new regulatory regulations

Set up a business intelligence database with key information for investors

Focus on interested investor pool