Europe is the leading source of Foreign Direct Investments (FDIs) to Rwanda, with Portugal, United Kingdom (U.K.), Germany and Spain among the leading sources, according to latest statistics from Rwanda Development Board (RDB).
RDB’s 2017 annual report indicates that collective investments from the four countries grew by 42.6 per cent to $713.4 million.
There were 24 projects from these top investor countries.
The report also shows that Europe is among the top three regions, behind Asia and Africa whose investments accounted for 60 per cent of the total investment value in Rwanda.
Overall, the ten leading foreign investor countries registered 61 per cent of all investment volume, which is worth $1.2 billion, representing a 32.4 per cent increase from the previous year.
Generally, there were 58 projects that the ten investor countries pursued during the year 2017.
“Construction, mining and energy registered the highest investment while most jobs were committed in the agriculture, manufacturing and energy sectors,” the report adds.
Below is the list of the top six sources of FDIs to Rwanda:
Portuguese companies are the leading investors in Rwanda. With an outlay of $398.7 million, investments from Portugal account for 23.8 per cent of the total investment value registered last year.
There was only one mega project from Portugal.
This represents investment from Mota Engil – the company contracted to construct Bugesera International Airport.
On the basis of the number of investment projects attracted, UK is the third leading investor in Rwanda after India and China. Rwanda attracted 10 investment projects from UK. However, with an investment value of $203.1 million they are second to Portugal. Investments from UK represent 12.1 per cent of the total value of investment in Rwanda.
Unilever Tea Rwanda is one of the mega projects from UK investors, who in 2016, committed to invest $23 million in a commercial tea estate and factory in the next five years.
It is the third largest source of foreign investment to Rwanda, worth $83.1 million. This is a 15 per cent share. There were a total of 13 projects from Indian investors in 2017.
Investment from the Asian country has been rising, and with the recent state visit of Prime Minister Narendra Modi’s to Rwanda, there are expectations that this will increase even more.
Modi visited Rwanda last month with a delegation of about 100 investors, most of whom expressed interest in different areas of economy.
Five projects from UAE investors, worth $80.9 million, to Rwanda were registered last year, making the country the fourth foreign biggest source of investment to Rwanda. One of the top investors from UAE is DP World Logistics, which is currently investing $35 million in a dry port in Kigali.
Investment from Europe’s biggest economy accounted for 3.8 per cent. Rwanda attracted $64 million from Germany.
Investors from the Asian nation shipped $62 million to Rwanda, representing 3.7 per cent of the total investment value. This was from 15 projects.
This report comes when China’s President Xi Jinping made a historic visit to Rwanda earlier this year during which a number of 15 agreements were signed between the two countries.