Construction attracts most investments in 3rd quarter of 2009

Rwanda Development Board (RDB) early this week released its quarterly update on Business Reform and Investment Performance, where results show that the construction industry attracted the most investments valued at Rwf 7.2 billion. A statement released recently said that this particular industry topped in the total number of projects registering seven in total. The statement also says that the construction industry was closely followed by the hospitality industry which attracted 5 projects valued at Rwf 3.2 billion. The Property and Real Estate development industry was fourth with 4 projects. Again in investment value, the construction industry was closely followed by Infrastructure and Electricity grids development, with Rwf 5.5 billion. Property and Real Estate Development follows with investments valued at Rwf 3.5 billion. According to the statement construction also happens to top in the area of job creation with 1,384 jobs. It is followed by the transport sector coming at a distant second with 340 jobs while property and real estate development come third with 272 jobs created. The update on business reforms and investment during the 3rd Quarter (which is between July and September 2009) comes amidst the global economic downturn but has seen a total of 27 projects registered with an estimated value of investment worth Rwf23.2 billion or $40.7 million. These investments are expected to create a total of 2,457 jobs when implemented. “Local entrepreneurs continued to take the bigger share of the number of investments, standing at 55 percent as compared to foreign investors. However, foreign investors, though fewer in number, have a considerably higher percentage of value in investments standing at 64.5 percent as compared to the local entrepreneurs’ 31.5 percent of the total value of investment,” the statement said. Looking at this year’s overall performance, it shows a total of 84 projects were registered with RDB and a total investment value of Rwf 391.3 billion or $ 686.5 million so far. Some of the huge investment projects initiated this year include the Contour Global Methane gas project, the establishment of Tigo telecom and the Bakhresa Projects. RDB also reports to have started sector-targeted promotional strategies geared towards encouraging investment in specific sectors by providing information on investment opportunities and incentives offered. The institution cites the ‘Construction and Real Estate Roundtable’ organized this year as one example of encouraging investment in this sector. The statement also highlights other milestones the country has seen as regards Business and Investment in the stipulated period. RDB has been appealing to the senate to assist in the fight against bureaucracy in public offices so as to facilitate a conducive investment climate. RDB also announces that 5 of its 7 stages of developing a Rwanda Branding Strategy had been successfully completed and would be launched before the end of the year. Different stakeholders were currently being involved in order to validate the process. The press release also reports that Rwanda Mountain Tea were the successful buyers of 60 percent shares of Kitabi Tea co. and 45 percent shares of Gisakura Tea Company under the current privatisation process. The successful buyer is reported to be planning to invest in diversifying, upgrading and value addition of the tea. More privatisation of tea companies is reported to follow. RDB has also announced that a relatively new Aftercare Service had been launched by the institution to fast track implementation of registered non-operational projects by reducing delays in start ups and ensuring high levels of investor retention and satisfaction. Ends

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Construction attracts most investments in 3rd quarter of 2009