India, UAE top Rwanda’s list of foreign investment in 2023

Rwanda Development Board (RDB) attracted and registered 513 projects worth $2.47 billion (approximately Rwf3.1 trillion) in investments in 2023, which represent a 50 per cent increase compared to $1.6 billion recorded in 2022. According to RDB’s latest annual report, majority of the recorded investments came from India and United Arab Emirates (UAE). The registered investments are expected to generate more 40,198 jobs, with majority of employments beingcreated in manufacturing, agriculture, forestry, fishing, and real estate activities. The report indicated that 83.4 per cent of all investments or $2.1 billion, were directed to Kigali City, with the Eastern Province coming next, attracting 10.6 per cent ($262.9 million). ALSO READ: Rwanda eyes $3bn in new investments in 2023 The increase in investment commitments is attributed in large part to the Manufacture and Build to Recover Program (MBRP), a government initiative launched in 2022 to incentivize investors in the manufacturing, agro-processing and construction sectors. The programme aimed to reduce the cost of establishing industries; support existing firms looking to expand, and encourage investments in the planning and early implementation stages – to contribute to the country’s effort to recover from the Covid-19 impact. Source of investments Investors from India, the top source of Rwanda’s foreign investment, invested $175.2 million lastrepresenting 7.1 per cent of the total, while those from UAE invested some $138.2 million, which accounts for 5.6 per cent. Investments from Germany, Mozambique, and Nigeria were $131.5 million, $117.9 million, and $115.2 million, respectively. Chinese investors committed $79.1 million, while those from Eritrea and Mauritius committed $68.7 million and $65.3 million, respectively. Domestic investors made investment commitments worth $959.5 million, representing 38.8 per cent of the total investments recorded in 2023. Top sectors According to the report, the top sectors that attracted significant investments in the country in 2023 were real estate with slightly more than $350 million, manufacturing with $300 million, and arts entertainment, and recreation with over $270 million. Accommodation and food service activities attracted more than $223.6 million. Others were construction with $208.6 million, agriculture, forestry and fishing with slightly over $206 million, and administrative and support service activities with $173.2 million. On the other hand, agro-processing attracted $137 million, financial and insurance activities with $128.4 million, and electricity, gas, steam and air conditioning supply with $103.8 million. While the overall performance of 2023 was better than that of the previous year, it falls short of $3.74 billion that was registered in 2021, as per data from the report. The previous dip in investments to $1.6 billion in 2022, was attributed to a major economic impact of the Covid-19 pandemic in that year.

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India, UAE top Rwanda’s list of foreign investment in 2023