Introduction

Rwanda, with a total area of 26,340 sq km is situated in Central Africa bordering Burundi, Democratic Republic of the Congo, Tanzania and Uganda. The climate is temperate with two rainy seasons – February to April and October to January. It is mild in mountains with frost and possible snow. The terrain of Rwanda is mostly grassy uplands and hills. The relief is mountainous with altitude declining from west to east. The lowest point in the country is the Rusizi River at 950 m, and the highest point is Volcan Karisimbi at 4,519 metres above sea level.

Mountain Gorillas are one of the most famous tourist attractions that one can see in Rwanda. They live in the forests on the volcanoes near the borders of Uganda and DR Congo. Kivu Lake is another of the major attractions. One can take a local flight from Kigali to Gisenyi, stay there for the night and then take a speed-boat to Kibuye, stay there for another day while enjoying water sports, and finally take the boat to Cyangugu and return the next day with a local flight to Kigali. There are several other magnificent attractions in Rwanda.

Rwanda is a rural country with about 90 percent of the population engaged in (mainly subsistence) agriculture. Primary exports are coffee and tea. The well-known events of 1994 eroded the country's ability to attract private and external investment. However, Rwanda has made significant progress in stabilizing and rehabilitating its economy. GDP has rebounded, and inflation has been curbed. In June 1998, Rwanda signed an Enhanced Structural Adjustment Facility (ESAF) with the IMF. Rwanda has also embarked upon an ambitious privatisation program with the World Bank. Continued growth depends on the maintenance of international aid levels and the strengthening of world prices of coffee and tea.

Investment Climate

With the passage of the investment code and creation of the Investment Promotion Agency, the Government of Rwanda hopes to more aggressively promote investment opportunities for foreign investors.

Coffee - One of the best investment opportunities is in the coffee sector. The coffee sector is fully liberalized and the government of Rwanda is currently liquidating its share in Rwandex, the largest coffee exporter in Rwanda. There is a need for investment for building washing stations, which would add considerable value to the high quality Arabica coffee beans grown in Rwanda. There is room for a high quality coffee roasting company as well.

Tea - Rwanda's tea ranks among the best in the world and the current market would support the expansion of tea production, both at the factory and farm levels. There is currently one privately owned tea factory in Rwanda – SORWATHE – with the government of Rwanda holding 49 percent of the shares. The nine government owned factories will soon be sold to private investors.

Energy and Water – The government is soliciting bids for the short-term management of Electrogaz, the government owned electricity, water and gas company. The government expects to sell the company some time in the future after improving its management and infrastructure. There is potential for the exploitation of Methane Gas from Lake Kivu, with initial investment ranging from US$ 5 to 20 million depending on the size of the project. The government is open to providing support and incentives to a private company interested in exploiting this Methane Gas. Fuel wood provides the main source of rural energy in Rwanda. Investment opportunities exist in developing alternative sources of energy such as peat, biogas and solar energy.

Telecommunications and Internet – The government-owned telecommunication company, Rwandatel, currently controls most of Rwanda's telecommunications and internet access. However, the government is in the process of liberalizing the telecommunications sector. The Rwanda Information Technology Agency (RITA) has recently been established to coordinate and promote the process of learning and application of information technology in the private and public sectors. Rwandacell, the country’s only cellular telephone company, is in the process of liquidating its company-owned shares. The government recently issued licenses to three Internet Service Providers, but they are not yet established.

Tourism – Tourism in Rwanda centres on the mountain gorillas, with Rwanda being one of the few countries in which tourists can visit the gorillas. Rwanda's tourism sector is still weak, but private sector actors are starting to play a more active role in reviving tourism in Rwanda. The government is considering replacing the government run tourist board with a private company. There is the potential for investment in new hotel facilities and the establishment of organized tours throughout Rwanda.

Other Opportunities – Opportunities exist in small industries such as processing of pythrethrum; tomato concentrate; food processing; flower production; beer and soft drink industries; commercial fishing; construction; and high quality agribusiness. Partnership opportunities are available in the banking sector. Minerals mined in Rwanda include cassiterite, woframite, colombo-tantarite and gold.


Rwanda – India Relations

Rwanda and India entered into a cooperation agreement in March 2003. Rwandan companies are importing pharmaceutical products, equipment (machinery) for small industries, and fabrics from businesses in India. Other areas being exploited are transfer of technology and human resources development. In this regard, Rwanda has sent 400 students to India universities since 1998 for courses in Computer Sciences, Engineering (Computers, Electronics, Mechanical, Chemistry, Telecommunications, etc.

Besides these programmes in academics, Rwanda and India have another programme of Human Resources Development through the Indian Technical and Economical Cooperation (ITEC), where civil servants are benefiting from Short Training Courses. Rwanda is also benefiting from Indian expertise in the form of experts and professors working in Rwandan universities and in consultancy in small industry.


Rwanda Country Data