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Wednesday, September 18th, 2019

Rwanda attracts US one billion dollars foreign Direct investment

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by January 21, 2018 General

KIGALI Rwanda (Xinhua) — Rwandan government on Thursday announced that the
country recorded Foreign Direct Investment (FDI) worth 1.041
billion U.S. dollars in 2017 compared to 650.4 million dollars
in 2016.

Speaking to
reporters on Thursday, Clare Akamanzi, chief executive officer
of the Rwanda Development Board (RDB), said that foreign
investments increased immensely last year due to the country’s
continued effort to provide conducive environment to investors.

According to
Akamanzi, in 2017 the country registered investments worth 1.675
billion dollars, both local and foreign, compared to 1.160
billion dollars in 2016.

“In the last 10
years, registered investments in Rwanda have jumped from 800
million dollars in 2007 to 1.675 billion dollars in 2017. This
is an increase of more than 100 percent in only a decade. This
is evidence that Rwanda is being seen more and more as a great
place to do business,” she said.

Akamanzi pointed out
that the country’s ambition is to create 150,000 off-farm jobs a
year, adding that 38,261 jobs were created last year in the
sectors of infrastructure, services, manufacturing, tourism,
construction and real estate, agriculture, ICT and mining.

According to RDB,
three sectors that attracted the most investments were
construction and real estate (638 million dollars), followed by
mining (267.3 million dollars) and lastly infrastructure (203
million dollars).

Rwanda targets to
reach upper middle income status by 2035 and has boosted
investment opportunities by introducing a new investment law.

The new investment
law, launched in Kigali in 2015, replaced one enacted in 2005,
and sought to enable the country to be more accessible to
foreign businesses.

In the World Bank
Group report, Doing Business 2017, Rwanda ranked 56th
out of 190 countries’ economies in ease of doing business.

Rwanda has also
opened strategic business offices in different countries like
Turkey, Canada, the United Kingdom, U.S., South Africa,
Singapore and China, with the aim of promoting investments in
those countries.

.

UPDATE:

KIGALI Rwanda (Xinhua) —German automaker Volkswagen (VW) on Thursday
announced plan to invest 20 million U.S. dollars for the first
phase of its car assembly plant operation in Rwanda.

Cars to be assembled
during the phase one include VW Polo and VW Passat for sedans
and VW Teramont for SUVs, said Thomas Schafer, managing director
of Volkswagen of South Africa, at a news conference in the
Rwandan capital Kigali.

“We are planning to
spend at least 20 million dollars for phase one of our operation
and we are targeting to create up to 1,000 jobs,” he said,
adding that the initial products will be out mid this year.

According to the
agreement signed between VW and the Rwandan government in 2016,
the car manufacturer will start assembling cars in Rwanda that
are affordable, low on fuel consumption and gas emission.

The German carmaker
has already opened car assembly plants in Kenya, South Africa
and Nigeria.

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