Rwanda: Investing in Rwanda
Although FDI stocks have increased in recent years due to measures focused on improving the business climate, FDI flows still remain rather weak. According to UNCTAD's World Investment Report 2024, FDI inflows to Rwanda increased by 5.4% y-o-y in 2023, totalling USD 523 million. At the end of the same period, the stock of FDI was estimated at USD 3.69 billion, around 26.4% of the country’s GDP. The National Bank of Rwanda’s Foreign Private Capital (FPC) census shows that in 2023, FPC inflows (including FDI, FPI, and other investments) totalled USD 236.0 million for the financial sector, the largest share at 26.6%, followed by manufacturing with USD 165.2 million. Mauritius led FPC stock distribution at 27.4%, followed by Kenya (9.3%), the USA (5.3%), South Africa (4.1%), India (3.5%), China (3.1%), and the Netherlands (3.0%). The financial sector topped the stock distribution with 26.9%, followed by ICT (18.1%), manufacturing (15.2%), and electricity (8.9%). According to the Rwanda Development Board, the country recorded USD 3.2 billion in registered investment commitments in 2024, a 32.4% increase from the previous year. Manufacturing attracted the most investment at USD 1.35 billion, followed by financial and insurance services with USD 811.2 million, and real estate with USD 377.7 million. China and India were the top sources of foreign investment, contributing USD 460 million and USD 445.1 million respectively. Notable projects that began operations in 2024 include Africa Green Mobility Solutions, Asia Machinery Ltd, SCON-N Ltd, Lipton Ltd, and MVG Developers Ltd.
Rwanda boasts a history of robust economic growth and a notable reputation for low corruption. The country does not impose statutory limits on foreign ownership or control, nor does it have official economic or industrial strategies that discriminate against foreign investors. Both local and foreign investors enjoy the right to establish and own business enterprises across all lucrative activities. Long-term leases, known as emphyteutic leases, are available to citizens and foreigners alike for residential and commercial purposes, typically lasting 99 years and renewable. Foreign investors can also obtain land through concessional agreements with the government, with a maximum duration of 99 years, but renewable upon agreement. The Investment Code presents a comprehensive set of benefits and incentives for registered investors in key growth sectors, subject to specific conditions. These incentives comprise preferential corporate income tax rates, withholding tax advantages, tax holidays, exemptions from customs duties on goods utilized within export processing zones, and support for internationalization efforts. Additionally, supplementary incentives are extended through the "Manufacture and Build to Recover Program" (MBRP), aimed at stimulating economic revitalization, particularly focusing on manufacturing, agro-processing, construction, and real estate development sectors. On the other hand, the low human resource capacity of Rwanda, its poor infrastructure, its landlockedness and its high operating costs are some of the factors that limit the potential attractiveness of the country. Other obstacles include the complexity of the tax system, which complicates business operations, and difficulties in securing a steady supply of quality, competitively priced raw materials, limiting production efficiency. Additionally, limited access to affordable financing and high interest rates in the local financial market hinder business expansion and investment. Rwanda ranks 104th among the 133 economies on the Global Innovation Index 2024 and 120th out of 184 countries on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | 274 | 399 | 399 |
FDI Stock (million USD) | 2,707 | 2,938 | 3,327 |
Number of Greenfield Investments* | 5 | 10 | 10 |
Value of Greenfield Investments (million USD) | 242 | 275 | 368 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Rwanda | Sub-Saharan Africa | United States | Germany |
Index of Transaction Transparency* | 8.0 | 5.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 9.0 | 3.5 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 5.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
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Latest Update: May 2025