Those with money to invest should not look further. The World Bank has released the Investor Perceptions Survey which highlights opportunities in the Rwandan market drawing from the contributions of existing and potential investors.
The survey identifies investor perceptions of Rwanda as an investment destination with a focus on export oriented companies in eight economic sectors: Tea, Horticulture, Agro-processing, Minerals, Manufacturing, Tourism, ICT and Healthcare.
The report makes specific recommendations for the Rwanda Development Board, as well as a recommendation on an analytical framework and methodology that can be replicated and implemented by the Rwanda Development Board (RDB) in the future.
The report points to the country’s stability and regulatory environment as key factors influencing the high confidence investors have expressed in establishing operations in Rwanda.
When considering locations for foreign direct investment in Africa, Rwanda was ranked 8th by international investors.
A significant percentage of international investors expressed positive sentiment, stating that Rwanda presents an attractive market opportunity with good security.
More than 92% of existing investors have plans to invest further in Rwanda, with 45% of them interested in expanding via a joint venture and 42% via a strategic partnership.
However, the report also draws attention to areas for potential improvements for Rwanda as an investment destination.
These include, the perception of Rwanda as having a small consumer market and high costs of transport, finance, and electricity – particularly for those in manufacturing.
Also to note, 79% of investors cited the quality of labor as a further limitation for their operations.
Clare Akamanzi, CEO of the Rwanda Development Board said, “Rwanda welcomes the Investor Perception Survey because it not only helps highlight what makes our country an attractive destination for investment, it also provides an important tool for the Government of Rwanda about where we should invest additional resources in order to attract further Foreign Direct Investments”.
Ignace Bacyaha, IFC Resident Representative in Rwanda said, “The World Bank Group commends Rwanda for its efforts to continue improving its investment climate, which has made Rwanda one of the leading reformers on the African continent.”
The international survey built a database of over 600 international company in the target sectors based on a range of sources that confirms company profiles as potential investors. 42% of companies were happy to be contacted by RDB to discuss FDI opportunities in Rwanda.
Existing investors have good perceptions on the RDB’s performance.
On a 10-point scale, 33% rate RDB’s performance at 9 or 10 (Very Good). 36% of respondents suggested that RDB focus more on aftercare services and 17% suggested that the RDB improve coordination with other GoR institutions.