INVEST IN RWANDA Rwanda Development Board Confidential This

INVEST IN RWANDA © Rwanda Development Board, Confidential This document does not constitute Government policy This document forms part of an oral presentation and should not be reproduced or distributed without prior permission

RWANDA: VITAL STATISTICS Size: 26, 338 sq. km Unemployment rate: 3. 4% Capital: Kigali GDP per capita: $740 Population: 11 M Gross National savings: 15. 3% of GDP. Trade balance (GDP): 15. 4%. Source: RDB GDP Growth: 8%. Gross Investments as a % of GDP: 24. 0% 2

Rwanda & The East Africa Community Population Area 140 million 1. 82 million sq km Exports (2012) $10. 2 billion GDP (2012) $84. 7 billion GDP per capita $627 3

Conducive Business Environment 1 st commodity exchange in the EAC region 6 hours to start a business 4 th easiest globally for a business to get credit 15 th easiest globally to acquire property Top global reformer 6 years Most competitive place to do business in East Africa and 3 rd in Africa, after Mauritius & SA. 7 th best global destination for investments. 2 nd in Africa after Botswana. (BPI Index 2014) Rwanda is the safest country to live in Africa. (Gallup Report 2012 Rwanda Stock Exchange Established in January 2008 with OTC transactions in bonds and equities Clean and green city, with the lowest crime of any capital city in the region.

Preferential market access: EU & EAC Opportunity market size: v. Member of the EAC with a market of over 141 M people. (Duty free importation of EAC products due to the CET) v. COMESA: 389 Million people v. CEPGL: 89 M people. Duty free and quota free of products from Rwanda into the European union under the Economic partnership agreement (EPA).

Specialized infrastructure for industry and trade in Kigali Special Economic Zone To promote industry & exports- companies here receive fiscal and investment code incentives- import & VAT exemptions Phase 1 -98 ha is fully serviced, Acquiring land in taken up by 61 SEZ is $63 per m 2, companies minimum 5000 m 2 Other costs are $2500 for the developer license fees and $86 for the construction permit. Source: RDB, BNR and MINECOFIN Phase II- 178 ha 60% of servicing works are complete. 80% is booked by 13 companies. Government is considering a 3 rd Phase of 134 ha 7

Attractive incentives for Investors 100% write off on R&D costs Duty free importation of machinery and equipment, raw materials (15% Intermediate goods, 25% Finished goods) After care services: RDB facilitates investment projects even after registration Investment allowance. Accelerated depreciation (40% in Kigali and 50% outside of Kigali) Duty free importation of EAC products due to the common external tariff Additional fiscal incentives in strategic sectors (e. g. energy, ICT) Duty free importation of one personal vehicle No restriction on repatriation of capital and profits. Work permits: 3 automatic and free work permits for 3 expatriates

MOMBASA – KAMPALA – KIGALI RAILWAY Kigali to Mombasa -1, 900 km, 100 km inside Rwanda, 250 km to Bujumbura Project cost. Est. $3. 5 billion, with each country contributing to this cost Financing model: PPP An alternative route to the Kigali-Isaka-Dar es Salaam line(central corridor railway line) Status: Feasibility and designs currently under way, to be completed by July 2015 at a cost of $1. 2 Bn Source: RTDA 9

Oil Projects Eldoret-Kampala-Kigali Oil Pipeline Project: EAC flagship project to ease the transportation of oil and petroleum products from Kenya to Kigali through Kampala. Project cost. Est. $402 Million Status: Kampala–Kigali feasibility study completed Financing Model: PPP STRATEGIC PETROLEUM RESERVE PROJECT: Opportunity for private investor to Design, Build, Finance, Operate and Maintain (BOO) petrol storage facilities. Source: RTDA 10

ENERGY Hydropower Generation 78 micro hydropower sites have been identified. Of these, 28 sites have feasibility studies already concluded. Total estimated capacity of all the 78 sites is about 25 MW Methane power Generation Estimated total potential (Share for Rwanda) 350 MW. Available concession for 100 MW. Given concessions of about 250 MW Peat to Power Generation We have an investor developing 100 MW (first phase of 80 MW) Geothermal exploration Rwanda’s geographical formation holds potential for geothermal energy sources. Source: RDB 11

MINING OPPORTUNITIES A leading foreign exchange earner. In 2014 export revenues from mining were $210. 6 M Investment opportunities: Mineral Exploration in the identified 21 Prospective Target Areas Value Addition- Establishing processing plants to smelt ores. Mining & Mineral Trade in: • Tin, Tungsten and Coltan • Gemstones. E. g. Beryl (Aquamarine), Corundum • Industrial Minerals - Silica sands, Limestone, Talcum, Kaolin, Vermiculite, Diatomite, Clay, Gypsum and Pozzolan 12

REAL ESTATE AND CONSTRUCTION Leading contributor to GDP at 15% Spending in construction industry grew by 130% (up to $500 million) between 2009 and 2012. Affordable Housing: 180, 000 units required to meet demand Huge demand for residential & commercial housing- 344, 068 dwelling units needed to meet the current needs Opportunity to set up manufacturing plants for construction materials (Huge demand for materials such as hollow sections, rebar, roofing sheets, wire meshes) 13

MANUFACTURING SHEET GLASS Float and architectural glass for building construction is in high demand. Currently, this glass is mostly imported. Rwanda has significant deposits of the main raw materials required for float glass manufacture. Setting up a Float glass factory to serve Rwanda and EAC’s growing demands for construction materials. In 2011, 3, 938 MT (equivalent of $4 million) of sheet glass was imported. Opportunity to establish a glass container factory that can serve the EAC & DRC beverage industry with bottles and drinking glasses. 14

MANUFACTURING STEEL PRODUCTS, HOLLOW SECTIONS, ROOFING SHEETS Opportunities in manufacture of Steel building products worth over $81 million were imported in 2012 No 1 import category for construction, outranking even cement) Currently we import mainly from Turkey, Mauritius, South Africa, India and China § § Hollow sections Roofing sheets Rolled steel plates Accessories such as gutters, ridges, wire meshes, et al. There about 6 local manufacturers currently in this industry. 15

MANUFACTURING PACKAGING MATERIALS Increased imports of paper packaging, $28 m imported annually for the last 3 years Currently only 3 local producers of paper packaging -SRB Investments (R) - Bonus Entreprises, - Real Packaging High demand due to national ban on plastic packaging. 16

FINANCIAL SERVICES HUB • Rwanda aims to become the financial hub of the region. • 58% of Rwandans have no access to formal financial services. • Return on Equity 12. 2% Opportunities in: • • Investment banking services, asset management, Insurance policies and other innovative assurances schemes Private equity funds Housing Banks and Agriculture financing Equity and bonds purchase at Rwanda’s capital market & Stock exchange. 17

AIR CARGO PROJECT • Responsible Agency: Ministry of Trade and Industry • Project Cost: Est. $500, 000 (This is not a greenfield investment, some expansion to existing facilities is required) • Description: Transfer Management of logistics zone to a private competent and experienced firm to support imports and exports of high quality, value-added perishables, (e. g. horticulture). More Opportunities in: • Bonded warehouses (near DRC Border) • Off-dock facilities at Mombasa (land given by Go. K) • Agro-logistics (sorting, weighing, packaging…) Source: RDB 18

TOURISM Ø Tourism is a strategic sector as it is the second leading foreign exchange earner- generated $303 M in 2014. Ø Rwanda currently receives just over 1 M tourists and the sector is poised to grow at 25% p, a. Ø Unique assets: Mountain Gorillas, Diverse bird species (Migratory route for birds), diverse primate species, game reserves, Equatorial forest and the furthest source of the Nile. Ø Major International brand hotels are set to enter the market: Marriott, Radisson Blue, Radisson by Park Inn, Sheraton, Protea, Kempinski. Ø Growing Conference Tourism: Potential to be the conference tourism hub of East Africa once Kigali Convention Centre is operational; Ø Easy access: East Africa single tourist visa launched in January 2014 which enables tourists to easily visit the major tourist attractions in the EAC region. Source: RDB 19

KIGALI CULTURAL VILLAGE Kigali Cultural Village Estimated value of project: 72 Million USD Ownership: RDB Space available: 31 Hectares Services at location: Water, electricity and sanitation is municipal Access to site: Excellent by road, in the Kigali City Incentives Land readily available Services are fully available like water and electricity Low Import duty on hotel equipment Preliminary financial study available

GISENYI HOT SPRINGS ECO-RESORT Hot Springs Eco-resort Estimated Construction cost: US $40 Mil Ownership: Community owned land Size of property: Approx. 12. 5 Ha Services at location: Water, electricity and sanitation is municipal, not to site Access to site: 3 km from Rubavu airport, 500 meters from tarred road, dirt road Environmental Impact Analysis (EIA): Required Incentives Low Import duty on hotel equipment Preliminary financial study available

TECHNOLOGY PARK ICT is a pillar of Rwanda’s Vision 2020; Over 5000 km of fiber optic laid around the country Park will be an eco-system of centers of excellence with universities Investment value: $350 M Target – Universities, MNC’s in Financial Services, data, business continuity, agriculture & commodities, knowledge management 63. 1 ha allocated in SEZ phase II 15 ha is taken up by Carnegie Mellon University Current Activities: Feasibility study, master plan and architectural designs completed. Source: RDB, MYICT & RURA 22

Investing in Rwanda: Getting started v Apply for a visa on line www. migration. gov. rw • Direct flights: v With Rwand. Air and flydubai; v Via Nairobi with Kenya Airways; v Via Addis with Ethiopian Airways. v Via Doha with Qatar Airways v Via Istanbul with Turkish Airlines v Via Amsterdam with KLM v Register for a company online: http: //org. rdb. rw/busregonline v Visit: www. rdb. rw your one stop center for investors 23

Rwanda is Viable and Enjoyable