If you are an investor who is considering entering the markets of Eastern Africa, then you can consider registering your business in Rwanda. Rwanda is a country in the Eastern African region and has been ranked in the 38th place in the Doing Business Index and is mostly preferred by inventors to set up their enterprises.

The country of Rwanda provides company owners with a wide range of perks that can help their enterprises succeed in the long run. Some of the benefits of investing in Rwanda include the simplicity of engaging in business, secure political economy, infrastructural growth, improved connectivity, and so on. Here are few of them.

1. Easier To Do Business

The Rwandan government has initiated smart business facilities in the country. Rwanda has been positioned in the 38th place in accordance with the latest report on Ease of Doing Business. Rwanda is one of the 2 nations in Africa that is currently placed among the top 50 nations worldwide for ease of doing business.

The Rwanda Development Board (RDB) is a one-stop entity committed to support both business owners and investors. The nation has put in place laws and regulations that help establish a business-friendly climate and typically support strong development in order to make it simpler for enterprises to conduct business there.

2. Investment Promotion

Rwanda’s Development Board, which was established in 2008 to facilitate new investment projects. As a result of the investment law of 2006, RDB has consolidated various government agencies previously involved in promoting investments. The agencies now work as a group and act as an information centre for investors to obtain the required approval certificates land, work permit, and tax incentives.

The Rwanda Development Board also evaluates the business plans for potential investors to allocate investment incentives better and record income from investments. The government of Rwanda invites all Foreign investment in all sectors with no restrictions on equity or ownership.

3. Varied Opportunities

In Rwanda, Substantial private investments have been made in tourism and in the development of new industries such as cut flowers for export and fish farming. The major exports of Rwanda are coffee, tea, tin cassiterite, wolframite and pyrethrum. Coffee makes up more than 50% of the total export value, while the mountain grown tea is considered to be some of the finest in the world.

The full range of Rwanda’s resources has yet to be realized. Commercial fishing in Lake Kivu is in its infancy. There are vast opportunities in the emerging tourism industry. The labour force is dedicated, energetic and eager for training.

The government, through the Rwanda Investment and Export Promotion Agency (RIEPA) is ready to work hand-in-hand with investors to realize their goals and drive the economy forward to a better future. Opportunities abound for long-term, well-capitalized investors with ideas, imagination, business management and problem solving skills for an emerging economy.

4. Incentives for investors in the sector

The Rwandan government provides various incentives to the investor which includes:

• Duty-free importation of all inputs
• Tax exemption for agriculture equipment
• 50% reduction in corporate income tax, if you are a registered investor exporting 50% of the turnover of products produced in Rwanda
• 7-year tax holiday for export-oriented registered investment projects
• One-stop center facilitation to registered investors
• Aftercare services with a focal point person following up on your project

5. Infrastructure Development

The Rwandan government has made substantial infrastructural improvements to facilitate trade enhancement in the country. Transportation and other infrastructural facilities of the nation make up around ten percent of Rwanda’s yearly expenditure.

With the aim of substantially reducing travel costs for both people and businesses in order to promote the formation of a vibrant private sector, Rwanda is making important contributions to the development of infrastructures like roads, trains, and canals. The East African Nation has invested heavily in infrastructure development, including transportation, energy, and telecommunications.

The Kigali Innovation City, a state-of-the-art technology park, further supports innovation and entrepreneurship. The country boasts a well-maintained road network, a modern airport, reliable energy supply, power generation and uninterrupted power supply.

6. Government Initiatives

Rwanda’s government is making progress towards more business-friendly regulations and startups may seek assistance from a number of organisations. The government of Rwanda made it simpler and flexible for investors to register properties.

The Rwandan government acknowledges the role of foreign investments in driving economic growth and has initiated various programs to support the investors. With the implementation of novel legislation, programs, and tax breaks, the Rwandan government has been making a deliberate effort to promote international investment and corporate growth.

7. Low Risk Factors

When you think about doing business in Africa, you will naturally think about a wide range of risk factors. Rwanda, however, has one of the lowest crime and corruption rates on the continent. Also, Rwanda’s economy has been sustainable for more than 2 decades, which gives investors very little to concern.

This means both personal safety when you stroll through the streets of Kigali by night, and the delay of service-delivery as employees wait for a bribe, are a non-issue. Other common risks such as prolonged droughts, terrorist attacks, armed conflict, or high and unstable inflation rates are equally low.

8. Rapidly Growing Economy

Rwanda’s economy may still be modest and predominantly agricultural, but in recent years, with political stability, it has posted an impressive 7% GDP growth rate at the same time reducing inflation to 4.4%. Foreign exchange controls have been liberalised and the banking system is sound and thriving.

Rwanda is a growing market of over 10 million people with a rapidly increasing middle class people. The Rwandan economy has a robust agricultural and tourism sector, which drives the vast majority of the nation’s economic activity.

Rwanda is a hub for rapidly integrating East and Central Africa, located centrally bordering 3 countries in East Africa and DR Congo. Rwanda is a part of EAC Common Market and Customers Union with market potential of over 150 million people.

9. Location and Connectivity

Rwanda’s unique location at the crossroads of Eastern and Central Africa has special opportunities to offer. A powerful geographic position regionally, some international firms have made use of that they see Rwanda as a smart and safe gateway to both the East African Community trade region with 150 million inhabitants to the east, and the DRC with vast untapped market opportunities to the west.

Though Rwanda is land-locked but it has a great communication network. Having said that, newly designed railway plans will connect Kigali with the ports of Mombasa (Kenya), Dar es Salaam (Tanzania) and Kinshasa (DRC) – this will speed up transport and cut current cost in the long-run.

10. Political Stability and Economic Sustainability

Rwanda’s stable political climate, coupled with robust governance, has created an environment conducive to economic growth and investment. The government’s commitment to long-term development plans has led to a strong focus on infrastructure and urban development.

Rwanda’s commitment to sustainable development aligns with global goals. Investment projects that prioritize eco-friendly practices not only contribute to the environment but also resonate well with socially conscious investors.

Conclusion

Rwanda has emerged as a highly promising investment destination in Africa, thanks to its strong commitment to economic development and good governance. The country provides a business-friendly environment, characterized by streamlined processes, enticing incentives, and a dedication to innovation.

Rwanda is a desirable site for business establishment because of its advantageous location, ease of doing business, and secure economy. The nation’s infrastructural expansion and improved connections significantly streamline the process for enterprises to conduct international business.