Rwanda registered investments valued at $1.3 billion (Rwf1.2 trillion) in 2020, a reduction of about 47 per cent compared to 2019 when the country raked in $2.46 billion, statistics from Rwanda Development Board (RDB) show. The decline in investment was attributed to the Covid-19 pandemic which has caused a global economic slowdown, according to the board. Real estate and construction and manufacturing accounted for 68 per cent of all investments registered at 48 per cent and 20 per cent respectively. Other sectors that attracted significant investments include agriculture, ICT, energy, mining and financial services. One Acre Fund had the largest investment estimated at $193 million. One Acre Fund is a nonprofit organization that supplies smallholder farmers in East Africa with asset-based financing and agriculture training services. Among other investments, One Acre Fund operates a seed production plant in the country, which has cut down of imports of seeds for different crops. Phoenix Plaza, a residential apartment complex project invested an estimated $179 million. Duval Great Lakes Ltd invested $69 million. The firm is a subsidiary of French firm, Groupe Duval in partnership with a local businessman Vicky Murabukirwa. The firm is developing a multi-billion mall at the former Ministry of Justice location, adjacent to the Kigali Convention Centre dubbed Inzovu Mall. Chinas Sinohydro Corporation Limited invested $66 million in 2020. The firm is involved in construction activities including a dam for hydro-electric purposes. Girinzu Developers, which involved in the construction of affordable homes invested $41 million while Petrocom Building invested $35 million. BBOXX Africa Management Ltd, involved in off-grid energy solutions and other renewable energy products invested $29 million in the year. Other major investment projects registered during the year included $12 million by Norrsken Rwanda Ltd to build East Africa’s largest hub for entrepreneurship and innovation, $4.45 million by Nexus Academy to set up a professional aviation training academy and to offer licensed courses in flight training, aircraft maintenance, ground handling. Local beverages firm Bralirwa invested $26.2 million for the expansion of the brewery to meet the growing demand for their products in the country and for export. The investments are estimated to lead to the creation of a total of 24,703 jobs are expected to be created by the new investments with the manufacturing and construction sectors expected to create 8,661 and 6,372 new jobs, respectively. Clare Akamanzi, the CEO of RDB said that despite the global economic slowdown resulting from the Covid-19 pandemic, Rwanda registered significant investments in key sectors which is a sign of continuous investor confidence in Rwanda by both local and foreign investors. “We are optimistic that these investments will further accelerate economic recovery by boosting local production and creating needed jobs for our people. The Government of Rwanda is committed to supporting businesses to recover through initiatives like the Economic Recovery Fund- a Rwf100billion facility to support companies affected by the pandemic so that they can survive, restart work/production and safeguard employment and through the Manufacture/Build to Recover programme that seeks to incentivize investors in construction and manufacturing sectors,” she said. The Manufacture and Build to Recover programme, is expected to incentivize qualifying manufacturing and construction projects in four areas; general construction, general manufacturing, factory construction, and project performance. Incentives include Value Added Tax (VAT) waivers on imported and domestically sourced construction materials, and VAT exemptions for domestically sourced raw materials and machinery.
