Rwanda Development Board (RDB) has said that it registered investments worth US$3.7 billion in 2021, up from US$1.3 billion in 2020, representing an increase of nearly 185 percent.
The growth, RDB added, was recorded in key sectors that include investment registration, tourism, exports and skills development compared to the year 2020, which was largely characterized by the global economic slowdown due to Covid-19 impact.
"This is the highest investment registration to date, and was driven by strategic investment projects,” RDB said in a statement on Tuesday.
The new investments are also expected to create 48,669 jobs – representing a 97% increase from the previous year.
Golfers practise their rounds from the driving range at the new 18-hole golf course in Kigali on August 8, 2021. Rwanda Development Board has said that it registered investments worth US$3.7 billion in 2021, up from US$1.3 billion in 2020, representing an increase of nearly 185 per cent. Photo: Olivier Mugwiza.
Rwanda aims to create 214,000 new jobs from investments and other employment sources every year, as part of its ambition to create 1.5 million jobs by 2024.
"The 2021 performance demonstrates the gains of our economic recovery efforts. In investment registration, not only have we surpassed our pre-pandemic figures, but we also registered the highest investment registration to date,” noted Clare Akamanzi, RDB Chief Executive.
Sectors that attracted the most investments in 2021 include construction, real estate, and manufacturing (including agro-processing), which accounted for 72% of all investments registered.
Construction accounted for 31%, real estate 26%, and manufacturing (including agro-processing) 15%. Other sectors that attracted significant investment are financial and insurance services, agriculture, accommodation and food services, energy, health and ICT.
This growth, RDB pointed out, is attributed to the Manufacture and Build to Recover program, a policy response unleashed last year to provide tax incentives to investors in these sectors.
Latest statistics from RDB indicate that the policy, rolled out to spur economic recovery has so far attracted 78 investor applications.
Another intervention, the statement highlighted, is the New Investment Code that has made it easy for investors to thrive in Rwanda.
Some of the major investments registered in 2021 include; US$ 237.9 Million by Ultimate Developers Ltd for the development of Vision City, Phase Two, a US$145.9 Million investment by Rwanda Ultimate Golf Course Ltd into the Kigali Golf Resort and Villa Project.
Others are a $20.7 million powdered milk project and a $22.5 million by Global Electric Vehicle Ltd to manufacture Electric Vehicles.
"Achieving this feat against the odds of the pandemic that has negatively impacted the world economy is a sign of continued investor confidence in Rwanda by both local and foreign investors,” Akamanzi added.
Tourism revenues increased by 25 percent, from $131 million in 2020 to $164million in 2021.
Another increase was recorded in the MICE sector which generated $12.5 million in 2021 compared to US$5.4 million in 2020.
"Total visitor arrivals increased by 2.8%, from 490,000 in 2020 to 512,000 in 2021. Sports events hosted during this period significantly contributed to visitor arrivals and revenues,” the statement reads in part.
In exports, receipts from the export of goods and services increased by 9.4%, from U$1.9 billion in 2020 to $2.1 billion in 2021, a growth RDB attributed to the gradual opening of international supply chains in 2021.
In Skills Development, over 5000 people were trained to bridge the skills gap in priority sectors such as information technology, data science, engineering, tourism and cross border E-commerce.
Projections
According to RDB, the growth trajectory is expected to continue in 2022.
Various sectors including manufacturing and construction investments, regional and international trade, and anchor projects such as the Kigali Innovation City.
"As the world economy continues to open up, we are optimistic that we will register more growth in tourism, exports, and other critical sectors this year. We are committed to ensuring that Rwanda remains one of the most competitive economies in Africa and the world,” Akamanzi asserted.