Invest in Remarkable Rwanda 0 Rwanda at a
Invest in Remarkable Rwanda 0
Rwanda at a glance Population size Govt. & Parliament 12. 1 million Presidential republic Bicameral parliament Official languages GDP per capita Kinyarwanda, French, English, Swahili USD 729 per capita Literacy/Employment GDP (6 yr growth) 70. 5% / 83. 3% USD 8. 1 bn (7. 3% p. a. ) Currency/exchange rate Ratings Rwanda Francs (RWF) ~RWF 847/USD B+, “stable” - Fitch B, “stable” - S&P Sources: World Atlas, World Bank, Fitch, S&P - all 2016 except: population and Fitch rating 2017, exchange rate 2018 1
Rwanda is. . . Safe and secure – 5 th safest country to walk at night worldwide . . . low risk Stable – lowest debt ratio in region; stable credit ratings High level of governance - #1 govt. transparency in Africa . . . fast growing . . . business friendly and modern 2 nd fastest growing economy in Africa; 2 nd FDI/GDP in region Most improved nation in human development in the world 2 nd for doing business in Africa; 6 hr business registration Growing bilingual and educated workforce (~47, 000 grad. /yr) Modern – 95% network coverage; 4 th in global gender equality Free trade agreements with ~50 countries . . . a regional platform Preferential access to immediate proximity market of 60 m Strong African hub potential; highly connected African airline 3 rd MICE ranking in Africa; +18 ranks in 3 years . . . home to rich natural advantages Rich raw material availability; 17+ agri-inputs Highest gorilla population in Virunga Massif; 1. 2 m tourists 2
Regional Market …embedded in Africa’s fastest -growing region… EA is the fastest-growing African region. . . with solid fundamentals fueling development Average GDP growth 2010 -2016 (%) Steep FDI growth, sign of confidence in continued growth • +13% in 2016 vs. -7% on average in Sub-Saharan Africa Other East Africa 10. 2% 7. 3% 6. 8% 6. 2% 6. 0% 5. 7% 5. 3% 4. 3% Ethiopia Rwanda Tanzania Ivory Coast Kenya 4. 3% 3. 6% SSA average Uganda Malawi EA average 4. 0% Nigeria 3. 4% 3. 3% Algeria Egypt Numerous active international institutions, foundations & NGOs, supporting the region's economy Morocco Source: The World Bank; UN Conference on Trade Development; Press Search; BCG Analysis 3
Stable & business friendly Rwanda – #2 in Africa for Ease of Doing Business In Africa, Rwanda is ranked the 2 nd easiest place to do business… …thanks to significant improvements in some indicators 2018 Top 10 African Ease of Business countries (DTF score 1) • Made business registration easier by improving the online registration one-stop shop and streamlining post-registration (e. g. : VAT registration online) 77. 5 73. 5 67. 9 65. 2 64. 9 64. 5 63. 6 60. 4 59. 9 • Made it easier to register property by introducing effective time limits and increasing the transparency of the land administration system • Made trading across borders easier by removing the mandatory pre-shipment inspection for imported products Mauritius Rwanda Morocco Kenya Botswana South Africa Zambia Tunisia Lesotho Namibia 1. The distance to frontier measures the distance of each economy to the “frontier, ” which represents the best performance observed on each of the indicators across all economies Source: The 2018 World Bank report; RDB • Made enforcing contracts easier by introducing an electronic case management system for judges and lawyers 4
2 nd for Ease of Doing Business in Africa: Business envornment improvements through 41 business reforms implemented since 2007 Legal Reforms • • • Company Act Insolvency Law Labor Law Electronic Transaction Law Credit Information Systems Law Intellectual Property Law Of Contract Arbitration Law Capital Market Law Special Economic Zones Law Competition and Consumer Protection Law • Investment Code • Land Law Source: World Bank Ease of Doing Business Report Institutional reforms • Created RDB by merging 8 government institutions to create RDB’s One-Stop Shop • Credit reference bureau created • Commercial courts established • Kigali International Arbitration Center established • Association of engineers and architects formed Automation • Free online registration for all companies • Online registration of mortgages (both movable and immovable) • Online application and processing of construction permits • Online filing of taxes and e-payment • M-declaration and payment of taxes for SMEs • Integrated Court Cases • Management Systems • Automated land management system • Universal Visa regime 5
Economic Transformation from predominant agriculture to services and industry Breakdown of Rwanda's GDP by sector (%) % 100 4% 5% Subsidies 80 Services 60 40 20 Industry 38% Agriculture 0 2005 Source: RDB Services now account for about half of all economic activity – yet agriculture still a key sector 2016 6
Rwandan market Rwanda : growing population, increasing purchasing power . . . Population growing at 2. 5% on average in the last two decades Population and GDP per capita evolution in the last two decades 900 14, 0 800 774 700 11, 8 600 500 7, 5 10, 0 8, 0 400 300 12, 0 GDP per head growing at a higher rate (9. 2% average since 2002 to 2017) Rwanda aims to reach a middle income status ($1240 per head) by 2032 and high income status in 2050 6, 0 242 4, 0 200 2, 0 100 0 Rwandan population is projected to increase to 16. 9 million by 2032 0, 0 1999 2002 2005 2008 GDP per head (in current US dollars) Source: Rwanda Domestic market recapturing strategy 2011 2014 2017 Total population (millions) 7
Rwandan market . . . driven by fast rising access to electricity Access to electricity (% of population), 2005 -2025 40% 32% 22% increase in installed capacity from ~200 MW in 2016 to 500 MW in 2024 11% 4% 2005 2010 x 2 2015 2020 Picture: Solar field at the Agahozo Shalom Youth Village in Rwanda. Photographer: Sameer Halai Source: NISR, Africa Development Bank, Mininfra, RDB + BCG analysis 2025 8
Identifying talent: Readily available skills base of ~47, 000 graduating students per year Breakdown of total 18 k 2 k 47 k Top tier universities have established branches in Rwanda ICT: ~2, 500 Sciences: ~1, 200 Engineering: ~2, 600 7 k Business & Law: ~2, 200 20 k Agri: ~2, 700 Health: ~7, 700 Education: ~7, 400 Arts: ~1, 200 VCT Polytech Undergrad Graduate Tota l Social sciences: ~19, 400 Note: VCT = vocational training (up to three 3 years); Graduate includes advanced degrees, masters, Ph. D Source: Rwanda Ministry of Education; UN 9
90 k students are enrolled in 3 TVET programs while, producing 40 k graduates each year TVET enrollment by program TVET graduation by program 90 015 40 694 2, 059 10 420 21 284 61, 124 17 351 18 471 Vocational Technical Polytechnics Training Secondary (level 6, 7) (level 1 + 2) (level 3, 4, 5) Series Total TVET Vocational Technical Polytechnics Training Secondary (level 6, 7) (level 1 + 2) (level 3, 4, 5) Total TVET 10 Source: Ministry of Education, 2017 Educational Statistics
74% of all students are in Construction, Technical Services, Business and ICT Construction & Building Services Technical Services Business Services ICT Hospitality & Tourism Agriculture & Food Processing Arts & Crafts Beauty & Aesthetics Manufacturing & Mining 24 358 18, 277 13, 774 9, 901 9, 062 6, 299 5, 275 1, 979 448 Energy 437 Media & Film Making 192 Water Mgt & Sanitation Total TVET graduates 13 90 015 11 Source: Ministry of Education, 2017 Educational Statistics
Rwanda has achieved remarkable progress and development in leisure tourism. . . 2017 achievement 6 yr change 1, 200, 000 ~80% total visitor arrivals 88, 200 increase ~95% park visits increase 9, 900 ~110% hotel rooms increase 167 ~95% flights per week increase New tourist sites developed/to be developed since 2016 Already up and running. . . 2016 Amakoro Songa Lodge 2016 Five Volcanos 2017 Wilderness Bisate Lodge 2017 Singita Kwitonda Lodge Groundbreaking Coming soon. . . 2017 Gihaya Island, Rusizi District resort hotel 2018 One and Only Nyungwe House refurbishment 2018 One and Only Gorilla Nest Lodge and Golf Resort 12 Source: RDB Tourism
. . . realized through a supportive, attractive & exciting product offering Exemplary Global visa free regime. . . Global visa free regime kicked off in January 2018 – visa on arrival for all . . . supportive ecosystem. . . Network of international standard hotels and increasing flight network activities . . . exciting sights & activities Activities range from natural (e. g. gorilla visits) to manmade (e. g. cycling) 13
Rwanda has differentiated its MICE offerings, rapidly becoming a top MICE destination in Africa Exemplary Gaining traction as a MICE destination. . . with many important global events hosted Rwanda ICCA Africa ranking (meetings based) • Forum for Agriculture Research in Africa • The Global Africa Investment Summit 2017 #3 #13 events #7 • Meeting of the Partners to the Montreal Protocol • Africa Carbon Forum • Africa Hotel Investment Forum #21 • The World Academy of Sciences 2013 2014 2015 2016 Source: International Congress and Convention Association report 2016 2018 • African Union Summit • Transform Africa Summit • . . . 14
Rwanda is increasingly connected globally and within Africa; enabling exports and travel for business and leisure Amsterdam London Brussels Istanbul New York Beijing Doha Abuja Lagos Cotonou Abidjan Accra Douala Libreville Brazzaville Bujumbura Kamembe Existing direct connections to Kigali Cape Town Dubai Addis Ababa Juba Cyangugu Entebbe Nairobi Mombasa Dar Es Salaam Kilimanjaro Lusaka Harare Mumbai Guangzhou Johannesburg Planned direct connections to Kigali Source: Rwanda Civil Aviation Authority, Expedia 15
Rwanda, ready platform for business A resourced, connected platform 16
Several strong global and regional brands have already invested in Rwanda. . . 17
Stable & business friendly Rwanda has an enabling foreign investment environment Business friendly regulation Multiple incentives – largely for exporters #2 in Africa for Ease of Doing Business 1 and Global Competitiveness 2 Preferential corp. income tax rate (15% if 50% exported, 0%3 for >80% exports outside EAC) #4 least corrupted Country in Africa Accelerated first year depreciation rate 50%4 Digitalized & efficient administration (only 6 h to register a business) 15% preference in public procurement bids 5 Lowered duty 6 on inputs; duty-free imports of machinery & raw materials Efficient, supported processes Commitment to foreign ownership Highly digitalized and efficient administration (6 hours to register a business) Government of Rwanda proactively targeting Made in Rwanda products to curb import bill Free business registration One-stop center for investors with dedicated investment acceleration team & investor aftercare services 1. World Bank; 2. WEF; 3. ; 7 year tax holiday can be granted subject to investing $50 m in business assets with 30% equity; 4. Subject to investing USD 50 k in business assets; 5. if local value addition >30% for products manufactured in Rwanda ; 6. In accordance with EAC customs reg. Source: Investment Promotion Law (2015); Made in Rwanda Policy (2017), RDB Investors Presentation No restrictions to foreign ownership No restrictions on capital flows Visa-on-arrival for all nationalities 18
A wide range of investment opportunities in Rwanda's economic sectors Agriculture and agroprocessing BPO and ICT Knowledge Finance Tourism Manufacturing Mining and quarrying Energy/water Infrastructure Housing/real estate 19
Rwanda has privileged access to markets via four diverse free trade agreements Regional agreements EAC free trade agreement East African Community Intercontinental agreements Everything but Arms agreement European Union COMESA free trade agreement Common Market for Eastern and Southern Africa AGOA free trade agreement United States of America 20
. . . and can be accessed duty free with a logistics advantage vs. other regional capitals Rwanda Kampala Burundi Kigali DRC Uganda Kinshasa Dar-Es-Salaam Tanzania Rwanda's preferred access Full duty free access 1 to proximity markets thanks to free trade agreements • EAC membership (Uganda, Tanzania, Burundi) • COMESA membership (DRC) 1. Some exemptions to the duty free rule can be applied on a case by case basis by member Countries on sensitive goods (e. g. : wheat flour) Source: Press Search 21
. . . with growing demand for motorbikes, cars & commercial vehicles Vehicles Market Size Number of registered vehicles, '000 94 73 50 46 9 CAGR +14% +10% Source: NISR Statistical Yearbook, RDB + BCG analysis 14 2011 2016 +10% 22
Regional Market …currently host to a market of ~5 m vehicles # registered vehicles, in ‘ 000 s (2015 or 2016) Ethiopia Uganda 340 n/a 65 Kenya Rwanda 848 14 Tanzania Burundi n/a 534 43 Source: RRA (2017), OICA, Ugandan Mo. WT, KNBS, TRA, RDB + BCG analysis 1. 048 240 140 23
Regional Market East Africa – A 300 Mn people, ~$2. 7 Bn vehicles market… A ~300 Mn people consumption pool 1 in EAC + Ethiopia growing at 3% p. a. A ~$ 2. 7 Bn EAC market for Vehicles & Parts Uganda East Africa Vehicles & Parts market size, 2015 -17 Average ($ M) +3% Ethiopia +3% 102 2011 2016 Rwanda +3% 12 2011 2016 Burundi +3% 2011 2016 165 129 99 2. 712 309 Kenya 315 +3% 557 2011 2016 Tanzania +3% Cars Trucks Tyres Tractors Motos Parts Buses Trailers Tota l 2011 2016 Note: 1. NF estimated market size from back of the envelope analysis conducted with available data Source: UN, Comtrade; RDB Analysis 24
Regional Market East Africa – A 300 Mn people, $2. 2 Bn electronics market… A ~300 Mn people consumption pool 1 in EAC + Ethiopia growing at 3% p. a. Uganda +3% A $2. 2 Bn EAC market for the top 10 electronics products (in Mio US$), 2015 -17 Average Ethiopia +3% 102 2011 2016 Rwanda +3% 12 2011 2016 Burundi +3% 2011 2016 Kenya +3% 2011 2016 Tanzania +3% 2011 2016 Note: 1. NF estimated market size from back of the envelope analysis conducted with available data Source: UN, Comtrade; RDB Analysis 25
Key regional and local infrastructure projects in pipeline also (will) create a huge demand for construction materials Examples of Regional infrastructure projects Examples of Local infrastructure projects • Mombasa – Kampala. Kigali Railway • Eldoret – Kampala – Kigali Oil Pipeline • Bugesera international airport • Express way from Kigali to Bugesera Airport (EWBA) • Dar Es Salaam Isaka – Kigali Railway • Bus Rapid Transport Lines (BRT) for Kigali City • Bypass roads in 6 secondary cities Source: Government of Rwanda, Mininfra, RDB 26
Infrastructure Kigali Special Economic Zone (KSEZ) provides a platform for businesses to flourish. . . Highlyserviced land offering incentives & subsidies Expedited and serviced land Incentives and subsidies EPZ 1 status (export >80% outside EAC) • Phase I – 98 ha • Phase II – 178 ha • Phase III - ~153 ha (in plan) • Roads, water, elec. . . • Subsidized plot rate • 30% down payment • 2 year grace period with 10% int. (PII = 1 year with 15% int. ) • EAC EPZ status and benefits • No import duty on inputs & equipment • Free trade conditions • Min. govt. processes 1. Export Processing Zone 27
Infrastructure Additional nine SEZs have been mapped and land dedicated for development Musanze • 164 Ha park, not yet expropriated • Not yet expropriated • Engineering studies completed Nyagatare • 50 Ha park, fully expropriated • Feasibility and engineering Nyagatare Nyabihu • 44 Ha park, fully expropriated • Feasibility and engineering study complete • Zoning and demarcation complete Nyabihu Kigali special economic zone Muhanga Rwamagana Rusizi • 45 Ha park, fully expropriated • Feasibility and engineering study complete • Zoning and demarcation complete Huye • 50 ha park, fully expropriated • Feasibility and engineering study complete • Zoning and demarcation complete Rwamagana • 80 Ha park • Feasibility and engineering Musanze Muhanga • 63 Ha park, not yet expropriated • Feasibility and engineering study complete • Not yet expropriated Bugesera Rusizi Huye study complete • Expropriation completed on 50 Ha • Ring road completed Kicukiro SME Park • 43. 2 Ha park, • Feasibility and engineering • study complete • Construction works for murram roads started Most advanced Bugesera • 330 Ha park, fully expropriated • Feasibility and engineering study complete • Construction of phase I, 100 ha is at 40% 28
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SICAF Manufact. Areas of Interest Products Quincaillerie Dimensions Geo Survey Urukumbizi Country Inn Aqualia BOFU MJF Quality Le Grand BETA technologies international company Energy Construction materials Tourism Construction materials ICT Textiles & garments Construction Engineering Real estate/Afforda ble Housing Energy development. Renewable energy & manufacturing Manufacturing of construction materials, electrical appliances Manufacturing of construction materials, electric appliances Hotel management & expansion Manufacturing of electric appliances and construction materials Electronic manufacturing & assemling Manufacturing of textiles & garments Construction & civil engineering Affordable housing, commercial real estate Solar Products, electrical appliances Cables, wires, Hollow sections. Pipes, steel bars Steel bars, Hollow sections, rebar, electric cables Hotel and Accommodatio n services Hollow sections, rebar, steel bars, electric cables Electronics (phones, laptops, Air conditioners, white goods, refrigerators Uniforms, t shirts, trousers, shirtts Real estate , Geo survey & mapping Affordable housing Sector Focus Name of Co. Rwandan Companies attending the Conference 30
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