That the Rwandan economy is thriving is not something one needs to be told; you just have to see what is happening in the country.
The latest being the entry of German carmaker Volkswagen (VW), which has joined a mushrooming list of investors tapping into Rwanda.
VW has signed an agreement with the Government of Rwanda that will see an assembly plant producing at least 5,000 vehicles per year set up by the end of 2017.
The move is part of Volkswagen’s plan to develop markets in Africa and it came immediately after the firm inaugurated its third production facility on the continent in Kenya.
Nigeria and South Africa are the other two countries hosting VW plants.
This development is a vote of confidence in Rwanda as a viable investment destination. It is also a big endorsement of Rwanda on the global scene.
But there is a reason behind the current appetite for Rwanda as a preferred investment destination.
The Rwandan government has created a conducive environment which has over the years drawn unprecedented interest from multinational firms, from leisure and hospitality to manufacturing and now automobiles.
The news of VW entry into Rwanda is good news for the economy and individual citizens. VW’s entry is primed to offer foreign direct investment, technology transfer, job creation, and skills development.
Local engineers will no longer have to go for that special training abroad. It will be at their doorstep. Besides the assembling plant, VW will have service centres in the country. While the firm will be looking at the market for its brand in the region by making it more affordable to the populace, bringing the service closer to people is worth every benefit it can accrue.
The 2017 World Bank Doing Business Report ranked Rwanda 2nd in Africa.
The Government’s deal with VW is demonstration that the ongoing business reforms are paying off.