Foreign private capital inflows into Rwanda increased by 23.9 per cent in 2024, reaching $1.0985 billion (approximately Rwf1.6 trillion), up from $886.9 million (approximately Rwf1.29 trillion) recorded in 2023, according to the latest Foreign Private Capital (FPC) Survey. The survey covered both equity and non-equity financial instruments, measured as inflows and stocks, across 424 private sector enterprises located in Rwanda. The increase in FPC inflows was mainly driven by increases in Foreign Direct Investment that rose by 21.8 per cent to $872.9 million in 2024, compared with $716.5 million in 2023. Other investment inflows, largely made up of loans, trade credit and advances, increased by 33.7 per cent, reaching $213.3 million, up from $159.6 million a year earlier. Foreign portfolio investment, though relatively small, also rose by 12.8 per cent, increasing from $10.9 million in 2023 to $12.3 million in 2024. ALSO READ: Rwanda foreign private capital inflows up by 34% The survey was conducted by the National Bank of Rwanda (BNR) in collaboration with the National Institute of Statistics of Rwanda (NISR) and the Rwanda Development Board (RDB). The performance reflects Rwanda’s economic activity and the government’s target to double private investment from $2.2 billion to $4.6 billion by 2029, in line with the Second National Strategy for Transformation, BNR’s Governor Soraya Hakuziyaremye said in the report. ALSO READ: Foreign direct investment into Rwanda up 63% in first half of 2024 Financial sector growth By sector, the financial sector attracted the highest foreign private capital inflows, amounting to $299.1 million, accounting for 27.2 per cent of total inflows. This was an increase from $236.0 million recorded in 2023. The manufacturing sector followed, with inflows rising sharply by 61.7 per cent, from $165.2 million to $267.1 million, representing 24.3 per cent of the total. Inflows into construction and real estate grew by 21.4 per cent, reaching $150.5 million, up from $124.0 million. Meanwhile, agriculture, education and human health sectors jointly received $107.7 million, an increase of 29.6 per cent from $83.1 million in 2023. Not all sectors recorded growth. Inflows into ICT and fintech declined by 22.2 per cent, falling from $110.7 million to $86.2 million, while wholesale and retail trade dropped by 31.4 per cent, from $105.3 million to $72.3 million. ALSO READ: Experts on what drove increased FDIs into Rwanda in 2024 Source countries show mixed trends The rise in inflows was driven by higher investments from Kenya, China, the United States, Germany, the Netherlands, the UAE, the International Finance Corporation, South Africa, the UK and Belgium. Kenya’s inflows more than doubled, rising from $69.2 million to $140.3 million, while China recorded one of the sharpest increases, jumping from $30.1 million to $108.6 million. In contrast, inflows from Mauritius declined by 3.8 per cent, falling from $261.0 million to $251.1 million, while India’s inflows dropped by 42.6 per cent, from $87.2 million to $50.1 million. Investments from France also declined by 31.6 per cent, from $62.7 million to $42.9 million. External borrowing rises Private sector external debt inflows increased by 28.5 per cent in 2024, reaching $543.6 million, up from $423.0 million in 2023. Borrowing from related entities accounted for $330.2 million, representing 60.8 per cent of total external debt inflows, compared with $213.3 million from unrelated lenders. By the end of 2024, total private sector external debt stock stood at $3.1615 billion, up 8.8 per cent from $2.9048 billion recorded a year earlier. Firms record higher turnover Companies covered by the survey reported a combined turnover of $3.9826 billion in 2024, an increase of 10.5 per cent from $3.6044 billion in 2023. Manufacturing and financial services were the largest contributors, accounting for 29.1 per cent and 24.4 per cent of total turnover, respectively. The central bank notes that the performance points to positive returns on foreign investment and reinforces the role of private capital in supporting Rwanda’s growth ambitions under its long term development strategy.
