Invest in insect-based animal feed
The Government of Rwanda is considering defining the insect-based animal feed sector as high priority.This sector holds tremendous potential for private investors due to the strong and growing demand for animal feed in Rwanda.The Rwanda Development Board is looking for well-established international players to either invest in existing projects, set up new projects or share their expertise with local players.
Demand drivers—3 sectors identified by GoR as priorities for development;
Horticulture presents an excellent investment opportunity in Rwanda, driven by opportunities for healthy financial returns across variety of crops and a top-tier business environment to capture these opportunities.
Annual demand for snow peas is strong in high-value export markets such as the European Union and the Middle East, as well as African markets and and Rwanda is well positioned to capture this demand.
- Demand for snow peas in high-value markets is sufficiently strong to allow for the entry of new producing countries; for example, Rwanda could grow its snow pea exports to Europe by 10x and only capture 5% of the market.
- EU buyers are open to considering new sources of supply that can meet quality and price specifications and provide consistent volumes, given volume and quality inconsistencies in leading suppliers in Kenya.
Investment in fresh passion fruit will capture significant demand in European markets. European markets are characterized by a strong demand for exotic fruits, especially passion fruits and Rwanda is well positioned to capture this demand;
- Rwanda boasts 450,000 ha very low and low slope land, ideal for the production of passion fruits; this land can enable the production of up to 2 million tons of passion fruits per year
- The purple passion fruit grown in Rwanda is the most popular variety in export markets; varieties from producing countries such as Colombia and Vietnam are mostly used as puree or juices due to their high acidity
- Demand for passion fruits in high-value markets is sufficiently strong to allow for the entry of new producing countries; for example, European buyers seek out Rwandan exporters due to insufficient supply from other producers, including Kenya.
Investment in chillies will capture significant demand in high-value export markets.
- Several varieties of chillies can grow well in Rwanda, including birds eye, scotch bonnet, and green chilies; these varieties rotate well with French beans and snow peas that are already grown by smallholder farmers in Rwanda
- European buyers are constantly looking for new reliable and cheaper sources, given volume and quality inconsistencies in leading suppliers in producing countries such as Kenya
- The cultivation of chillies is technically complex; a commercial investor would be well positioned to invest in the technical know-how needed, which may offer a competitive advantage for investors
- Agronomic conditions in Rwanda are ideal for the cultivation of several varieties of mushrooms, including button mushrooms, oyster mushrooms, and specialty mushrooms such as shiitake
- Specialty mushrooms, both fresh and dried, present a particularly attractive opportunity in high-value export markets as wholesale prices can go up to $15,000/ton for fresh and $38,000/ton for dried; these varieties can be farmed at a relatively low cost in Rwanda
- Mushroom farming is not land intensive, which signifies that the greater availability of land in other countries in the regions does not offer them a competitive advantage
Rwanda is committed to facilitating foreign investment in animal feeds and agriculture as follows;
- GoR has reduced VAT on animal feed products to stimulate consumption
- Possibility for foreign investors to lease land at attractive conditions
- Facilitation of access to electricity.
We have several exciting PPP opportunities currently seeking investment
- Informal settlement upgrade; Kigali will be available to investors for various real estate development opportunities
- Affordable Housing; Development of 115 k-139 k units of housing for low-to-middle income households in 9 different districts in Rwanda
- Transport; Acquisition and operation of buses on the Kigali Bus Rapid Transit to meet high transport demand due to the increasing population in Kigali.
- Water and sanitation;Development of a centralised sewerage system
Sectors with Investment Opportunities;
- Packaging materials
- Medical supplies
Rwanda at a glance
Rwanda has a vision of elevating itself to a middle income, service and knowledge-based economy by 2024.
In the last 23 years, Rwanda has taken back the reigns to redefine itself as the preferred investment and tourism destination in Africa. Under HE President Paul Kagame’s leadership, Rwanda has become a reference point for good governance in the region, political stability with well-functioning institutions, observance of the rule of law and zero tolerance for corruption. We are also recognized as having made great advances in ICT, and have been consistently ranked first globally in ICT promotion, by the Global Technology Report of 2015. Rwanda is ranked the 9th safest place in the World (Travel & Tourism Competitiveness report – WEF 2016).
Significant achievements registered over the last two decades:
- Macro economic stability and low level of Government debt.
- Grown the economy at an average annual GDP of 8% for the last 7 years
- Growth of the GDP per capita in 2016; $729 from $701 in 2013
- Currently, the service sector is the largest contributor to the GDP. The sector contributes 48%, followed by Agriculture at 30% and the Industrial Sectors 17% respectively (2016)
- Life expectancy raised from 49 years in 2000 to 66 years by 2015
- Literacy rates (aged 15 to 24): raised from 48% in 2000 to 86% in 2014
- Financial inclusion: from 48% in 2008 to 89% in 2016
- Rwanda has been rated by Fitch ratings with B+ outlook citing strong economic growth buoyed by low public debt and confidence in the management of the economy in the short and medium term.
- Rwanda has also emerged as the top global reformer in the World Bank Doing Business report. The recent ranking has positioned the country as the easiest place to do business in the East African region and 2nd in Africa. (2017 World Bank Doing Business Report)
- The country has been ranked as the most competitive place to do business in the East African region and 2nd in Africa by the World Economic Forum’s 2017/18 Global Competitiveness report. Efficient markets and stable political position are among the top key pillars that have boosted the country’s competitiveness.
With the recently approved investment law, Rwanda has an array of Investment Incentives for investors ready to invest in the key priority sectors as indicated below;
|Zero Corporate Income Tax for companies planning to relocate headquarters to Rwanda|
|15% Preferential Corporate Income tax for strategic sectors i.e. energy, transport, affordable housing, ICT and financial services.|
|Accelerated Depreciation of 50% for key priority sectors i.e. tourism, construction, manufacturing and agro-processing|
|Exemption of capital Gains tax|
|Seven-Year Corporate Income Tax Holiday for large projects in strategic sectors i.e. energy, exports, tourism, health, manufacturing and ICT|
|Repatriation of Capital and assets|
|Quick business and investment online registration|
|Assistance with tax-related services and exemptions|
|Assistance to access utilities (water & electricity)|
|Assistance with obtaining visas and work permits|
|One Stop Center that provides notary services|
|Provision of After care services to fast track project implementation|
NB: All fiscal incentives listed above have requirements that need to be fulfilled before they are granted.