Economic experts have weighed-in on the Rwanda Development Board (RDB) 2024 annual report, shedding light on what led to the country’s upward trend in attracting Foreign Direct Investments (FDIs).
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Rwanda registered $3.2 billion (approx. Rwf4.5 trillion) in investment commitments in 2024, marking an increase of 32.4 per cent from the investments recorded in 2023, according to the report.
Speaking to The New Times, economic experts underscored the crucial role played by safety as well as ease of doing business in Rwanda in making the country a favourable destination for investors.
"One of the most important considerations for investors when deciding where to invest is security,” said Jean Marie Vianney Samarwa, a lecturer of economics at Institut Catholique de Kabgayi.
"When investors do not trust the sustainability of security, especially since investments often take time to yield returns, they fear that their investments could be destroyed before generating profits,” he added.
Samarwa also pointed out that emerging economies like Rwanda offer higher profit margins due to untapped opportunities, particularly in comparison to developed countries.
"Countries like Rwanda and many others in Africa, still have a wealth of untapped investment opportunities. As a result, money invested tends to yield higher profits,” he said.
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Commenting on Rwanda’s ambition to attract over $3 billion in new investments and surpass $700 million in tourism revenue, Samarwa said progress hinges on strategic planning and sustained infrastructural growth.
"Rwanda has long-term plans to develop its infrastructure, and the government frequently announces new projects. In technology alone, there are several initiatives, biotechnology ventures. These require significant investment, and there are many investors who have expressed interest in funding them,” he said.
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Straton Habyarimana, an economic analyst, said there has been an increase in investor confidence in Rwanda over the past decade due to the country’s enhanced legal framework, investment incentives, and a proactive marketing approach.
He added that the foundations for investment are increasingly strengthened (infrastructure, finance, skills development, etc.), and there is a strong political will to learn and improve.
"In terms of competitiveness, we are still learning. The report shows big improvements compared to last year, but we still have room to learn from top investment destinations. For example, we are still far from reaching our target in the number of tourist arrivals,” he noted.
For him, the 2024 figures are promising and, if trends hold, Rwanda could even outperform its 2025 targets.
In a previous interview, Doreen Orishaba, Managing Director of BasiGo Rwanda, an e-mobility company that entered the Rwandan market in 2024, said the country’s abundant opportunities and policies are a key factor attracting investors.
"Rwanda is ideal for BasiGo‘s e-mobility investment because our business targets align with the country’s clear commitment to sustainability and reducing climate emissions,” she said.