Rwanda is a sovereign state in central and east Africa. Located a few degrees south of the Equator, Rwanda is bordered by Uganda, Tanzania, Burundi, and the Democratic Republic of the Congo. Rwanda’s economic growth of 7.2% in 2018 is attributed to the improved performance in key economic sectors that
include agriculture, real estate, Information, and Communication Technology (ICT) and manufacturing. Other factors contributing to the country’s economic growth include, the government’s focus on policy reform in business registration and operation, property registration and vesting of rights, and the improvement of investment processes. In terms of social developments, Rwanda has translated its strong economic growth into reduced poverty and improved income equality. The poverty rate fell from 56.7% to 45% in 2017/2018, driving the country closer to its goal of becoming a middle-income economy, with improved and sustainable standards of living.
The Rwandan economy is expected to grow by more than 7% per year between 2019 and 2024 supported by export growth resulting from the implementation of the “Made in Rwanda” policy, public and private investments, and the country’s strong record of implementing reforms to achieve its goal of economic transformation. Based on this, the country will emerge as a self-sustaining economy deriving most of its economic growth solutions from internal sources, particularly, the private sector. Rwanda’s bold policy reforms present an opportunity for increased investment (foreign and local) in irrigation and mechanisation, residential and commercial expansion projects, digitisation and improved internet access, agro-processing and other value addition projects in the manufacturing sector. Fiscal policy will continue to aim at prudent borrowing and fiscal consolidation to keep external debt sustainable. The fiscal deficit is projected to decline to 3% between 2019 and 2024, reflecting rational borrowing practices and increased domestic resource mobilisation.
Our report provides an overview of the business environment in Rwanda and a summary of political risks to be navigated between 2019 and 2024. It also highlights the most viable opportunities in the country with the aim of enabling key sector participants and investors to identify and understand competitive threats and make informed, feasible decisions.