Country Snapshot
Population (2019, millions)¹ | 12.62 |
Population Projections (2030, millions)¹ | 16.23 |
Capital | Kigali |
Surface Area (km²)² | 26,340 |
Weather¹¹ | In Kigali: Average annual temperature, 19°C; average monthly rainfall, 85 mm |
Languages³ | Official: Kinyarwanda, French and English – Others: Swahili and others |
Main Religions³ | Main: Protestant, Roman Catholic, – Others: Muslim, others and none |
Time⁴ | Central Africa Time (CAT) +0200 UTC |
Driving Orientation⁵ | Right Side |
Internet Country Code⁶ | .rw |
Country Calling Code | +250 |
Plug, Socket and Voltage⁷ | Type C and J – 230V/50Hz |
Currency | Rwandan Franc (RWF) – 1/100 = Centime |
Exchange Rate (As of 4 February 2019 , per USD)⁸ | 885.00 (buy rate) |
GDP at Market Prices (2018, current, billions of USD)⁹ | 9.5 |
GDP Growth (2018, annual %)⁹ | 8.67 |
Average GDP Growth (2014-2018, annual %)⁹ | 7.44 |
GDP per Capita, PPP (2018, current international $)⁹ | 2,253 |
Inflation, Consumer Prices (2018, annual %)⁹ | (0.31) |
Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 4 |
Total Reserves in Months of Imports (2018)⁹ | 3.15 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸The National Bank of Rwanda.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
Reasons to Invest in Rwanda
- A Robust and Pro-Business Government; ranks 2nd in Africa in the World Bank Ease of Doing business and among top 10 globally in public trust in politicians and government.
- Rwanda has the 3rd strongest regulatory framework in sub-Saharan Africa and is considered as the 2nd fastest growing economy in Africa (7.5% p.a since 2007).
- Rwanda is 5th safest country to walk at night worldwide, lowest debt ratio in the EAC region and stable credit ratings with B+ by Fitch ratings, S&P.
- Rwanda offers many untapped business opportunities, not only in the traditional sectors such as Agribusiness and Mining, but increasingly in the knowledge-based sectors of ICT, BPO and Financial Services
- Rwanda is well placed as a hub for rapidly integrating East Africa and is part of the EAC and with a market of over 180 million people. Rwanda also has a substantial and growing middle class – currently estimated to be around 20% of the population
Source: Rwanda Development Board – RDB.
Population
Population Projections (millions)
Population (2019) | 12.62 |
Population Projections (2030) | 16.23 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
Population Projections (2019) | 17.31 |
Percentage of Population Residing in Urban Areas (2030) | 19.61 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
Youth Literacy Rate, Population 15-24 Years, Both Sexes | 86.49 |
Youth Literacy Rate, Population 15-24 Years, Female | 88.5 |
Youth Literacy Rate, Population 15-24 Years, Male | 84.32 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force)
Unemployment, Total | 0.97 |
Unemployment, Female | 0.99 |
Unemployment, Male | 0.94 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2017, % of Ages 15+)
Labour Force Participation Rate, Total | 83.88 |
Labour Force Participation Rate, Female | 84.17 |
Labour Force Participation Rate, Male | 83.57 |
Labour Force, Total (number) | 6,193,988 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
2014 | 2015 | 2016 | 2017 | 2018 | |
GDP at Market Prices (current, billions of USD) | 8.01 | 8.27 | 8.47 | 9.13 | 9.5 |
GDP Growth (annual %) | 7.62 | 8.86 | 5.98 | 6.05 | 8.67 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
2018 | 2019 | |
Agriculture | 37.28 | 37.40 |
Manufacturing | 7.52 | 7.52 |
Industry | 21.33 | 21.23 |
Services | 60.40 | 60.36 |
Construction | 8.78 | 8.69 |
Electricity, gas and water | 2.00 | 2.03 |
Mining and quarrying | 3.02 | 2.99 |
Education | 3.32 | 3.26 |
Finance, real estate and business services | 25.37 | 25.40 |
Public administration and Defense | 6.11 | 6.11 |
Health and Social Work | 2.86 | 2.83 |
Other services | 6.25 | 6.39 |
Transport, storage and communication | 6.74 | 6.68 |
Wholesale and retail trade, hotels and restaurants | 9.75 | 9.68 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (USD ‘000)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 1,750,482 | 1,729,453 | 1,533,232 | 2,616,190 | 2,626,389 |
China | 352,221 | 334,440 | 328,679 | 488,068 | 510,534 |
United Arab Emirates | 112,528 | 88,494 | 80,836 | 274,943 | 256,771 |
India | 159,056 | 163,035 | 117,326 | 244,781 | 245,283 |
Uganda | 233,822 | 204,594 | 170,041 | 184,504 | 212,796 |
Kenya | 163,739 | 131,479 | 121,320 | 141,221 | 143,853 |
Source: COMTRADE Statistics.
Export Partners (USD ‘000)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 651,775 | 591,362 | 620,150 | 968,238 | 1,085,419 |
Congo DR | 131,622 | 132,087 | 157,110 | 222,927 | 272,712 |
United Arab Emirates | 11,055 | 34,039 | 85,975 | 252,100 | 237,946 |
Kenya | 67,726 | 94,638 | 85,654 | 104,063 | 102,790 |
Congo DR | 60,238 | 60,343 | 43,952 | 62,670 | 64,793 |
Switzerland | 75,988 | 52,850 | 54,146 | 65,302 | 60,742 |
Source: COMTRADE Statistics.
Rwanda’s Top Import Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 1,750,482 | 1,729,453 | 1,533,232 | 2,616,190 | 2,626,389 | |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 75,291 | 30,392 | 21,261 | 362,861 | 428,515 |
85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 248,160 | 252,556 | 252,130 | 298,947 | 284,253 |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 152,535 | 214,892 | 146,472 | 239,052 | 49,894 |
87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 96,461 | 112,955 | 124,814 | 209,852 | 167,997 |
10 | Cereals | 84,708 | 65,778 | 72,747 | 156,341 | 151,599 |
Source: COMTRADE Statistics.
Rwanda’s Top Export Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 651,775 | 591,362 | 620,150 | 968,238 | 1,085,419 | |
71 | Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewelry; coin | 7,847 | 30,176 | 80,034 | 241,619 | 284,739 |
09 | Coffee, tea, mate and spices | 118,278 | 131,542 | 133,507 | 154,777 | 166,974 |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 103,232 | 89,815 | 109,294 | 157,705 | 162,964 |
26 | Ores, slag and ash | 202,033 | 118,361 | 86,736 | 123,504 | 143,468 |
15 | Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes | 12,548 | 20,637 | 26,114 | 28,678 | 41,226 |
Source: COMTRADE Statistics.
Investment Profile
FDI Inflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inflows | 342.3 | 356.4 | 381.9 | 353.8 | 134.8 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 47.8 | 15.7 | 18.0 | 5.4 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inward Stock | 1,680.3 | 1,959.3 | 2,283.7 | 2,546.9 | 2,635.5 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outward Stock | 757.5 | 748.0 | 681.9 | 694.6 | 669.1 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
Kenya, Uganda, United States, India, South Africa, Tanzania, UAE, China, Nigeria, and Luxembourg.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Sectors (in terms of number of projects)
Financial Services, Communications, Business Services, Food & Tobacco, Hotels & Tourism, Coal, Oil and Natural Gas, Healthcare, Software & IT services, Metals, and Real Estate.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Kenya Commercial Bank (KCB), Access Bank Rwanda, Equity Bank Rwanda, Car and General, STEG International Services, Techno Brain, MTN Rwanda, Uchumi Supermarkets, Hakkan Mining and Generation Industry and Trade, and Fina Bank.
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
2020 | 38/190 |
2019 | 29/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
2020 Rank | 35/190 |
Procedures (number) | 5 |
Time (days) | 4 |
Cost (% of income per capita*) | 0.0 |
Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 780
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
2020 Rank | 38/190 |
Payments (number per year) | 9 |
Time (hours per year) | 91 |
Total Tax Rate (% of profit) | 33.2 |
Profit Tax (% of profit) | 25.7 |
Labor Tax and Contributions (% of profit) | 6.0 |
Other Taxes (% of profit) | 1.5 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
2020 Rank | 88/190 |
Time to Export: Border Compliance (hours) | 83 |
Cost to Export: Border Compliance (USD) | 183 |
Time to Export: Documentary Compliance (hours) | 30 |
Cost to Export: Documentary Compliance (USD) | 110 |
Time to Import: Border Compliance (hours) | 74 |
Cost to Import: Border Compliance (USD) | 282 |
Time to Import: Documentary Compliance (hours) | 48 |
Cost to Import: Documentary Compliance (USD) | 121 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – Investment Law, 2015.
Law N° 06/2015 of 28/03/2015 relating to Investment Promotion and Facilitation
Key guarantees in terms of investment protection include:
- All business sectors are open to private investment regardless of the origin of the investor. However, an investor is encouraged to invest in priority economic sectors like Export, Industrial Manufacturing
- A foreign investor may invest and purchase shares in an investment enterprise in Rwanda and shall be given equal treatment with Rwandan investors with regard to incentives and investment
- An investor shall have the right to own private property, whether individually or in association with Private property, whether individually or collectively owned, shall be inviolable.
- The investor’s intellectual property rights and legitimate rights related to technology transfer shall be guaranteed in accordance with relevant
- Upon fulfilling all tax obligations in Rwanda, an investor shall be allowed to repatriate the following:
- capital
- profits derived from business activities
- debt and interest on foreign loans
- proceeds from the liquidation of investment
- any other assets of investor
- Any dispute arising between a foreign investor and one or more public organs in connection with a registered investment enterprise shall be amicably settled. When an amicable settlement cannot be reached, parties shall refer the dispute to an arbitration agency as agreed upon in a written agreement between both parties. Where no arbitration procedure is provided under a written agreement, both parties shall refer the matter to the competent court.
Source: Rwanda Development Board (RDB).
Investment Incentives
Tax Incentives/Fiscal incentives
Preferential corporate income tax rate of zero per cent (0%)
- An international company which has its headquarters or regional office in Rwanda will be entitled to a preferential corporate income tax rate of zero per cent (0%) if it fulfils the following requirements:
-
- To invest the equivalent of at least ten million United States Dollars (USD 10,000,000), in both tangible and intangible assets, in Rwanda
- To provide employment and training to Rwandans
- To conduct international financial transactions equivalent to at least five million United States Dollars (USD 5,000,000) a year for commercial operations through a licensed commercial bank in Rwanda
- To be well established in the sector within which it operates
- To use the equivalent of at least two million United States Dollars (USD 2,000,000) per year in Rwanda
- To set up actual and effective administration and coordination of operations in Rwanda and perform at least three (3) of the following services in Rwanda:
-
- Procurement of raw materials, components or finished products
- Market control and sales promotion planning
- Information and data management services
- Treasury management services
- Research and development work
- Training and personnel
Preferential corporate income tax rate of fifteen percent (15%)
- A preferential corporate income tax rate of fifteen percent (15%) shall be accorded to:
-
- A registered investor, exporting at least fifty percent (50%) of turnover of goods and services produced in Rwanda, including business processing This incentive excludes unprocessed minerals, tea and coffee with out value addition according to the provisions of this Law.
- A registered investor undertaking one of the following operations: energy generation, transmission and distribution from peat, solar, geothermal, hydro, biomass, methane and This incentive excludes an investor having an engineering procurement contract executed on behalf of the Government of Rwanda
- A registered investor in the sector of transport of goods and related activities whose business is operating a fleet of at least five (5) trucks registered in the investor’s name, each with a capacity of at least twenty (20) tons
- A registered investor operating in mass transportation of passengers and goods with a fleet of at least ten (10) buses registered in the investor’s name, each with a capacity of at least twenty-five (25) seats
- A registered investor in the Information and Communication Technology (ICT) Sector with an investment involving one of the following activities: service, manufacturing or assembly. This incentive excludes ICT retail and wholesale trade as well as ICT repair industries and telecommunications
- A registered investor operating in the following financial services: global business activities, private equity funds, fund management, wealth management; mutual funds, collective investment schemes, captive insurance schemes, venture capital, and asset backed This incentive excludes locally oriented fund and wealth management, retail banking and insurance activities.
- An investor registered in building low-cost housing and upon fulfilling the criteria provided under the instructions of the Minister in charge of housing.
Corporate income tax holiday of up to seven (7) years
- A registered investor investing an equivalent of at least fifty million United States Dollars (USD 50,000,000) and contributing at least thirty percent (30%) of this investment in form of equity in the sectors specified below will be entitled to a maximum of seven (7) year corporate income tax holiday:
-
- Energy projects producing at least twenty-five megawatts (25 MW). This incentive excludes an investor having an engineering procurement contract executed on behalf of the Government of Rwanda and fuel produced energy
- Manufacturing
- Tourism
- Health
- Information and Communication Technology (ICT) Sector with an investment involving manufacturing, assembly and This incentive excludes communication, ICT retail and wholesale trade as well as ICT repair companies or enterprises
- Telecommunications
- Export related investment projects
- An investor registered in another priority economic sector as may be determined by an Order of the Minister in charge of finance
Corporate income tax holiday of up to five (5) years
- Microfinance institutions approved by competent authorities will be entitled to a tax holiday of a period of five years (5 years) from the time of their However, this period may be renewed upon fulfilling conditions prescribed in the Order of the Minister in charge of finance.
Exemption of customs tax for products used in Export Processing Zones
- A registered investor investing in products used in Export Processing Zones shall be exempted from customs taxes and duties according to the provisions of customs rules and regulations of the East African Community.
Exemption of Capital Gains Tax
- A registered investor shall not pay capital gains However, income derived from the sale of a commercial immovable property shall be included in the taxable income of the investor
Value Added Tax refund
- The refund of the Value Added Tax paid by investors shall be made within a period not exceeding fifteen (15) days upon receipt of the relevant documents by the tax administration authority
Accelerated depreciation
- A registered investor shall be entitled to a flat accelerated depreciation rate of fifty per cent (50%) for the first year for new or used assets if he/she meets the following criteria:
- Invest in business assets worth at least fifty thousand US dollars (USD 50,000) each;
- Operate in at least one of the sectors below and meet the requirements; export projects, manufacturing, telecommunications, agro processing, education, health;
- Transport excluding passenger vehicles with less than nine (9) people seating capacity.
- Tourism investments worth at least one million eight hundred thousand United States Dollars (USD 1, 800, 000).
- Construction projects worth at least one million eight hundred thousand United States dollars (USD 1,800,000).
- Any other sectors provided the investment is worth at least one hundred thousand United States dollars (USD 100,000).
- Any other priority sector as may be determined by an Order of the Minister in charge of finance.
Other Incentives/Non Fiscal Incentives
- Immigration Incentives
- A registered investor who invests an equivalent of at least two hundred fifty thousand United States Dollars (USD 250,000) may recruit three (3) foreign employees without necessarily demonstrating that their skills are lacking or insufficient on the labor market in Rwanda.
- Provision of Key Account Managers to registered Investors
- Provision of Notary Services
- Provision of work permits and Visas at RDB’s One Stop Center
The support programs/incentives the Government has put in place to support our local industries in light of COVID-19.
What has the Government of Rwanda done to support recovery efforts?
- The Government has put in place measures to mitigate the economic impact of COVID-19, which are embedded in the proposed Economic Recovery Plan covering the period May 2020 – December 2021 period. Priorities of the Economic Recovery Plan are:
- Priority 1: Contain the pandemic (health related measures).
- Priority 2: Mitigate the impact of the COVID-19 economic crisis on households’ income by scaling up Social protection.
- Priority 3: Ensure Food Self-Sufficiency by increasing Agriculture Agriculture is the only sector, which is not dependent on what is happening in the rest of the world.
- Priority 4: Support Businesses and Protect jobs.
- Priority 5: Ensure a Coordinated Multi-sectoral response of Government to quick start and boost economic activity.
- Among others, specific key interventions have been put in place by the government of Rwanda to support the private sector: These include:
- The Economic Recovery Fund: of more than USD 200 million of which a USD100 million from GoR as seed fund to support businesses highly impacted by the COVID-19 pandemic so they can survive, resume work/production and safeguard employment. The GOR is mobilizing additional The main purpose of the Economic Recovery Fund: is to support affected businesses by the COVID-19 crisis through 35% loan restructuring for the tourism sector (hotels); Working capital for large companies; Working capital + loan guarantee for SMEs and Micro-businesses.
- Fast-tracked new transformative investment projects across construction, manufacturing, IT services, healthcare and agriculture. Priority is given to projects that significantly contribute to exports (global business services and high value crops), offer significant employment opportunities (construction and real estate) and further strengthen Rwanda’s medical sector (PPE, medical supplies and health services).
- Key fiscal measures were put in place. These included suspension of tax audit; extension of financial statements certification; extension of deadlines for filing and paying Corporate Income Tax for 2019; suspension of the 25% down payment admissible for amicable settlement; expanded use of online services; and fast-tracked private sector payments, including VAT refunds.
- Key Monetary measures were put in place. They included: extended lending facility of FRW 50 billion to banks; Reduction of reserve requirement from 5% to 4%; Buy back of bonds at the prevailing market rate after 15 days (vs 30 days before); Banks allowed to restructure outstanding loans of borrowers facing temporary cash flow challenges arising from the COVID-19; 118,362 restructuring applications totaling 647.2 FRW billion were granted (that is 85% of total application amount and 28% of total outstanding loans). Waive all charges on electronic money transactions, for the next three months to ease digital payment means; and CBR lowered to 5% from 5.0%.
- Support for E-commerce adoption: With consumers moving online in reaction to coronavirus restrictions, it has been a good lesson learned that in the future, consumers would want to keep the same interactions to buy through online SMEs will need to innovate new capabilities for remote operation and keep virtual customer engagement while creating digital platforms allowing customers to engage entirely online, upsetting long-held assumptions about the need for in-person meetings.
- Business Advisory Services: to provide TA to SMEs to re-examine and better understand the change of the needs of their customer (consumer behavior) in the post-crisis period while remodeling their business plans (including market linkages and possible required business rebuilding through innovation).
Source: Rwanda Development Board (RDB).
Country Snapshot
Population (2019, millions)¹ | 12.62 |
Population Projections (2030, millions)¹ | 16.23 |
Capital | Kigali |
Surface Area (km²)² | 26,340 |
Weather¹¹ | In Kigali: Average annual temperature, 19°C; average monthly rainfall, 85 mm |
Languages³ | Official: Kinyarwanda, French and English – Others: Swahili and others |
Main Religions³ | Main: Protestant, Roman Catholic, – Others: Muslim, others and none |
Time⁴ | Central Africa Time (CAT) +0200 UTC |
Driving Orientation⁵ | Right Side |
Internet Country Code⁶ | .rw |
Country Calling Code | +250 |
Plug, Socket and Voltage⁷ | Type C and J – 230V/50Hz |
Currency | Rwandan Franc (RWF) – 1/100 = Centime |
Exchange Rate (As of 4 February 2019 , per USD)⁸ | 885.00 (buy rate) |
GDP at Market Prices (2018, current, billions of USD)⁹ | 9.5 |
GDP Growth (2018, annual %)⁹ | 8.67 |
Average GDP Growth (2014-2018, annual %)⁹ | 7.44 |
GDP per Capita, PPP (2018, current international $)⁹ | 2,253 |
Inflation, Consumer Prices (2018, annual %)⁹ | (0.31) |
Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 4 |
Total Reserves in Months of Imports (2018)⁹ | 3.15 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸The National Bank of Rwanda.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
Reasons to Invest in Rwanda
- A Robust and Pro-Business Government; ranks 2nd in Africa in the World Bank Ease of Doing business and among top 10 globally in public trust in politicians and government.
- Rwanda has the 3rd strongest regulatory framework in sub-Saharan Africa and is considered as the 2nd fastest growing economy in Africa (7.5% p.a since 2007).
- Rwanda is 5th safest country to walk at night worldwide, lowest debt ratio in the EAC region and stable credit ratings with B+ by Fitch ratings, S&P.
- Rwanda offers many untapped business opportunities, not only in the traditional sectors such as Agribusiness and Mining, but increasingly in the knowledge-based sectors of ICT, BPO and Financial Services
- Rwanda is well placed as a hub for rapidly integrating East Africa and is part of the EAC and with a market of over 180 million people. Rwanda also has a substantial and growing middle class – currently estimated to be around 20% of the population
Source: Rwanda Development Board – RDB.
Population
Population Projections (millions)
Population (2019) | 12.62 |
Population Projections (2030) | 16.23 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
Population Projections (2019) | 17.31 |
Percentage of Population Residing in Urban Areas (2030) | 19.61 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
Youth Literacy Rate, Population 15-24 Years, Both Sexes | 86.49 |
Youth Literacy Rate, Population 15-24 Years, Female | 88.5 |
Youth Literacy Rate, Population 15-24 Years, Male | 84.32 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force)
Unemployment, Total | 0.97 |
Unemployment, Female | 0.99 |
Unemployment, Male | 0.94 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2017, % of Ages 15+)
Labour Force Participation Rate, Total | 83.88 |
Labour Force Participation Rate, Female | 84.17 |
Labour Force Participation Rate, Male | 83.57 |
Labour Force, Total (number) | 6,193,988 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
2014 | 2015 | 2016 | 2017 | 2018 | |
GDP at Market Prices (current, billions of USD) | 8.01 | 8.27 | 8.47 | 9.13 | 9.5 |
GDP Growth (annual %) | 7.62 | 8.86 | 5.98 | 6.05 | 8.67 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
2018 | 2019 | |
Agriculture | 37.28 | 37.40 |
Manufacturing | 7.52 | 7.52 |
Industry | 21.33 | 21.23 |
Services | 60.40 | 60.36 |
Construction | 8.78 | 8.69 |
Electricity, gas and water | 2.00 | 2.03 |
Mining and quarrying | 3.02 | 2.99 |
Education | 3.32 | 3.26 |
Finance, real estate and business services | 25.37 | 25.40 |
Public administration and Defense | 6.11 | 6.11 |
Health and Social Work | 2.86 | 2.83 |
Other services | 6.25 | 6.39 |
Transport, storage and communication | 6.74 | 6.68 |
Wholesale and retail trade, hotels and restaurants | 9.75 | 9.68 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (USD ‘000)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 1,750,482 | 1,729,453 | 1,533,232 | 2,616,190 | 2,626,389 |
China | 352,221 | 334,440 | 328,679 | 488,068 | 510,534 |
United Arab Emirates | 112,528 | 88,494 | 80,836 | 274,943 | 256,771 |
India | 159,056 | 163,035 | 117,326 | 244,781 | 245,283 |
Uganda | 233,822 | 204,594 | 170,041 | 184,504 | 212,796 |
Kenya | 163,739 | 131,479 | 121,320 | 141,221 | 143,853 |
Source: COMTRADE Statistics.
Export Partners (USD ‘000)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 651,775 | 591,362 | 620,150 | 968,238 | 1,085,419 |
Congo DR | 131,622 | 132,087 | 157,110 | 222,927 | 272,712 |
United Arab Emirates | 11,055 | 34,039 | 85,975 | 252,100 | 237,946 |
Kenya | 67,726 | 94,638 | 85,654 | 104,063 | 102,790 |
Congo DR | 60,238 | 60,343 | 43,952 | 62,670 | 64,793 |
Switzerland | 75,988 | 52,850 | 54,146 | 65,302 | 60,742 |
Source: COMTRADE Statistics.
Rwanda’s Top Import Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 1,750,482 | 1,729,453 | 1,533,232 | 2,616,190 | 2,626,389 | |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 75,291 | 30,392 | 21,261 | 362,861 | 428,515 |
85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 248,160 | 252,556 | 252,130 | 298,947 | 284,253 |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 152,535 | 214,892 | 146,472 | 239,052 | 49,894 |
87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 96,461 | 112,955 | 124,814 | 209,852 | 167,997 |
10 | Cereals | 84,708 | 65,778 | 72,747 | 156,341 | 151,599 |
Source: COMTRADE Statistics.
Rwanda’s Top Export Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 651,775 | 591,362 | 620,150 | 968,238 | 1,085,419 | |
71 | Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewelry; coin | 7,847 | 30,176 | 80,034 | 241,619 | 284,739 |
09 | Coffee, tea, mate and spices | 118,278 | 131,542 | 133,507 | 154,777 | 166,974 |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 103,232 | 89,815 | 109,294 | 157,705 | 162,964 |
26 | Ores, slag and ash | 202,033 | 118,361 | 86,736 | 123,504 | 143,468 |
15 | Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes | 12,548 | 20,637 | 26,114 | 28,678 | 41,226 |
Source: COMTRADE Statistics.
Investment Profile
FDI Inflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inflows | 342.3 | 356.4 | 381.9 | 353.8 | 134.8 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 47.8 | 15.7 | 18.0 | 5.4 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inward Stock | 1,680.3 | 1,959.3 | 2,283.7 | 2,546.9 | 2,635.5 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outward Stock | 757.5 | 748.0 | 681.9 | 694.6 | 669.1 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
Kenya, Uganda, United States, India, South Africa, Tanzania, UAE, China, Nigeria, and Luxembourg.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Sectors (in terms of number of projects)
Financial Services, Communications, Business Services, Food & Tobacco, Hotels & Tourism, Coal, Oil and Natural Gas, Healthcare, Software & IT services, Metals, and Real Estate.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Kenya Commercial Bank (KCB), Access Bank Rwanda, Equity Bank Rwanda, Car and General, STEG International Services, Techno Brain, MTN Rwanda, Uchumi Supermarkets, Hakkan Mining and Generation Industry and Trade, and Fina Bank.
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
2020 | 38/190 |
2019 | 29/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
2020 Rank | 35/190 |
Procedures (number) | 5 |
Time (days) | 4 |
Cost (% of income per capita*) | 0.0 |
Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 780
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
2020 Rank | 38/190 |
Payments (number per year) | 9 |
Time (hours per year) | 91 |
Total Tax Rate (% of profit) | 33.2 |
Profit Tax (% of profit) | 25.7 |
Labor Tax and Contributions (% of profit) | 6.0 |
Other Taxes (% of profit) | 1.5 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
2020 Rank | 88/190 |
Time to Export: Border Compliance (hours) | 83 |
Cost to Export: Border Compliance (USD) | 183 |
Time to Export: Documentary Compliance (hours) | 30 |
Cost to Export: Documentary Compliance (USD) | 110 |
Time to Import: Border Compliance (hours) | 74 |
Cost to Import: Border Compliance (USD) | 282 |
Time to Import: Documentary Compliance (hours) | 48 |
Cost to Import: Documentary Compliance (USD) | 121 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – Investment Law, 2015.
Law N° 06/2015 of 28/03/2015 relating to Investment Promotion and Facilitation
Key guarantees in terms of investment protection include:
- All business sectors are open to private investment regardless of the origin of the investor. However, an investor is encouraged to invest in priority economic sectors like Export, Industrial Manufacturing
- A foreign investor may invest and purchase shares in an investment enterprise in Rwanda and shall be given equal treatment with Rwandan investors with regard to incentives and investment
- An investor shall have the right to own private property, whether individually or in association with Private property, whether individually or collectively owned, shall be inviolable.
- The investor’s intellectual property rights and legitimate rights related to technology transfer shall be guaranteed in accordance with relevant
- Upon fulfilling all tax obligations in Rwanda, an investor shall be allowed to repatriate the following:
- capital
- profits derived from business activities
- debt and interest on foreign loans
- proceeds from the liquidation of investment
- any other assets of investor
- Any dispute arising between a foreign investor and one or more public organs in connection with a registered investment enterprise shall be amicably settled. When an amicable settlement cannot be reached, parties shall refer the dispute to an arbitration agency as agreed upon in a written agreement between both parties. Where no arbitration procedure is provided under a written agreement, both parties shall refer the matter to the competent court.
Source: Rwanda Development Board (RDB).
Investment Incentives
Tax Incentives/Fiscal incentives
Preferential corporate income tax rate of zero per cent (0%)
- An international company which has its headquarters or regional office in Rwanda will be entitled to a preferential corporate income tax rate of zero per cent (0%) if it fulfils the following requirements:
-
- To invest the equivalent of at least ten million United States Dollars (USD 10,000,000), in both tangible and intangible assets, in Rwanda
- To provide employment and training to Rwandans
- To conduct international financial transactions equivalent to at least five million United States Dollars (USD 5,000,000) a year for commercial operations through a licensed commercial bank in Rwanda
- To be well established in the sector within which it operates
- To use the equivalent of at least two million United States Dollars (USD 2,000,000) per year in Rwanda
- To set up actual and effective administration and coordination of operations in Rwanda and perform at least three (3) of the following services in Rwanda:
-
- Procurement of raw materials, components or finished products
- Market control and sales promotion planning
- Information and data management services
- Treasury management services
- Research and development work
- Training and personnel
Preferential corporate income tax rate of fifteen percent (15%)
- A preferential corporate income tax rate of fifteen percent (15%) shall be accorded to:
-
- A registered investor, exporting at least fifty percent (50%) of turnover of goods and services produced in Rwanda, including business processing This incentive excludes unprocessed minerals, tea and coffee with out value addition according to the provisions of this Law.
- A registered investor undertaking one of the following operations: energy generation, transmission and distribution from peat, solar, geothermal, hydro, biomass, methane and This incentive excludes an investor having an engineering procurement contract executed on behalf of the Government of Rwanda
- A registered investor in the sector of transport of goods and related activities whose business is operating a fleet of at least five (5) trucks registered in the investor’s name, each with a capacity of at least twenty (20) tons
- A registered investor operating in mass transportation of passengers and goods with a fleet of at least ten (10) buses registered in the investor’s name, each with a capacity of at least twenty-five (25) seats
- A registered investor in the Information and Communication Technology (ICT) Sector with an investment involving one of the following activities: service, manufacturing or assembly. This incentive excludes ICT retail and wholesale trade as well as ICT repair industries and telecommunications
- A registered investor operating in the following financial services: global business activities, private equity funds, fund management, wealth management; mutual funds, collective investment schemes, captive insurance schemes, venture capital, and asset backed This incentive excludes locally oriented fund and wealth management, retail banking and insurance activities.
- An investor registered in building low-cost housing and upon fulfilling the criteria provided under the instructions of the Minister in charge of housing.
Corporate income tax holiday of up to seven (7) years
- A registered investor investing an equivalent of at least fifty million United States Dollars (USD 50,000,000) and contributing at least thirty percent (30%) of this investment in form of equity in the sectors specified below will be entitled to a maximum of seven (7) year corporate income tax holiday:
-
- Energy projects producing at least twenty-five megawatts (25 MW). This incentive excludes an investor having an engineering procurement contract executed on behalf of the Government of Rwanda and fuel produced energy
- Manufacturing
- Tourism
- Health
- Information and Communication Technology (ICT) Sector with an investment involving manufacturing, assembly and This incentive excludes communication, ICT retail and wholesale trade as well as ICT repair companies or enterprises
- Telecommunications
- Export related investment projects
- An investor registered in another priority economic sector as may be determined by an Order of the Minister in charge of finance
Corporate income tax holiday of up to five (5) years
- Microfinance institutions approved by competent authorities will be entitled to a tax holiday of a period of five years (5 years) from the time of their However, this period may be renewed upon fulfilling conditions prescribed in the Order of the Minister in charge of finance.
Exemption of customs tax for products used in Export Processing Zones
- A registered investor investing in products used in Export Processing Zones shall be exempted from customs taxes and duties according to the provisions of customs rules and regulations of the East African Community.
Exemption of Capital Gains Tax
- A registered investor shall not pay capital gains However, income derived from the sale of a commercial immovable property shall be included in the taxable income of the investor
Value Added Tax refund
- The refund of the Value Added Tax paid by investors shall be made within a period not exceeding fifteen (15) days upon receipt of the relevant documents by the tax administration authority
Accelerated depreciation
- A registered investor shall be entitled to a flat accelerated depreciation rate of fifty per cent (50%) for the first year for new or used assets if he/she meets the following criteria:
- Invest in business assets worth at least fifty thousand US dollars (USD 50,000) each;
- Operate in at least one of the sectors below and meet the requirements; export projects, manufacturing, telecommunications, agro processing, education, health;
- Transport excluding passenger vehicles with less than nine (9) people seating capacity.
- Tourism investments worth at least one million eight hundred thousand United States Dollars (USD 1, 800, 000).
- Construction projects worth at least one million eight hundred thousand United States dollars (USD 1,800,000).
- Any other sectors provided the investment is worth at least one hundred thousand United States dollars (USD 100,000).
- Any other priority sector as may be determined by an Order of the Minister in charge of finance.
Other Incentives/Non Fiscal Incentives
- Immigration Incentives
- A registered investor who invests an equivalent of at least two hundred fifty thousand United States Dollars (USD 250,000) may recruit three (3) foreign employees without necessarily demonstrating that their skills are lacking or insufficient on the labor market in Rwanda.
- Provision of Key Account Managers to registered Investors
- Provision of Notary Services
- Provision of work permits and Visas at RDB’s One Stop Center
The support programs/incentives the Government has put in place to support our local industries in light of COVID-19.
What has the Government of Rwanda done to support recovery efforts?
- The Government has put in place measures to mitigate the economic impact of COVID-19, which are embedded in the proposed Economic Recovery Plan covering the period May 2020 – December 2021 period. Priorities of the Economic Recovery Plan are:
- Priority 1: Contain the pandemic (health related measures).
- Priority 2: Mitigate the impact of the COVID-19 economic crisis on households’ income by scaling up Social protection.
- Priority 3: Ensure Food Self-Sufficiency by increasing Agriculture Agriculture is the only sector, which is not dependent on what is happening in the rest of the world.
- Priority 4: Support Businesses and Protect jobs.
- Priority 5: Ensure a Coordinated Multi-sectoral response of Government to quick start and boost economic activity.
- Among others, specific key interventions have been put in place by the government of Rwanda to support the private sector: These include:
- The Economic Recovery Fund: of more than USD 200 million of which a USD100 million from GoR as seed fund to support businesses highly impacted by the COVID-19 pandemic so they can survive, resume work/production and safeguard employment. The GOR is mobilizing additional The main purpose of the Economic Recovery Fund: is to support affected businesses by the COVID-19 crisis through 35% loan restructuring for the tourism sector (hotels); Working capital for large companies; Working capital + loan guarantee for SMEs and Micro-businesses.
- Fast-tracked new transformative investment projects across construction, manufacturing, IT services, healthcare and agriculture. Priority is given to projects that significantly contribute to exports (global business services and high value crops), offer significant employment opportunities (construction and real estate) and further strengthen Rwanda’s medical sector (PPE, medical supplies and health services).
- Key fiscal measures were put in place. These included suspension of tax audit; extension of financial statements certification; extension of deadlines for filing and paying Corporate Income Tax for 2019; suspension of the 25% down payment admissible for amicable settlement; expanded use of online services; and fast-tracked private sector payments, including VAT refunds.
- Key Monetary measures were put in place. They included: extended lending facility of FRW 50 billion to banks; Reduction of reserve requirement from 5% to 4%; Buy back of bonds at the prevailing market rate after 15 days (vs 30 days before); Banks allowed to restructure outstanding loans of borrowers facing temporary cash flow challenges arising from the COVID-19; 118,362 restructuring applications totaling 647.2 FRW billion were granted (that is 85% of total application amount and 28% of total outstanding loans). Waive all charges on electronic money transactions, for the next three months to ease digital payment means; and CBR lowered to 5% from 5.0%.
- Support for E-commerce adoption: With consumers moving online in reaction to coronavirus restrictions, it has been a good lesson learned that in the future, consumers would want to keep the same interactions to buy through online SMEs will need to innovate new capabilities for remote operation and keep virtual customer engagement while creating digital platforms allowing customers to engage entirely online, upsetting long-held assumptions about the need for in-person meetings.
- Business Advisory Services: to provide TA to SMEs to re-examine and better understand the change of the needs of their customer (consumer behavior) in the post-crisis period while remodeling their business plans (including market linkages and possible required business rebuilding through innovation).
Source: Rwanda Development Board (RDB).