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Foreign Private Investment Increased 4.1% in 2011

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Rwanda recorded an increase in foreign private investment inflows from $ 343.0 million declared in 2010 to $ 356.7 million declared in 2011, equivalent to a 4.1 % increment.

In 2011, foreign private investment inflows were largely in form of other investments $187.9 million accounting 46.7 % of total foreign private investments inflows.

Foreign Direct Investments FDI were $ 119.1 million accounting for 30.2 %, and portfolio investment totaled $ 87.3 million.

The findings were released in the dissemination workshop on foreign private capital 2011 results that was held on the 2nd April at Serena hotel in Kigali.

It was organized by the National Bank of Rwanda in collaboration with Rwanda Development Board, National Institute of Statistics and the Private sector federation.

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ImageIn his opening remark, the governor of the central bank of Rwanda, John Rwangombwa said that the government value the report on foreign private capital inflows as it gives orientation to the government on further improvements to facilitate investments.

He noted that foreign capital investments have been identified as an important source of financing for developing countries.

“The government of Rwanda has put in a lot of efforts in facilitating foreign private capital inflows by easing administrative processes and procedures to facilitate investors in starting their businesses in Rwanda” said the governor of the National bank of Rwanda.

A total of 140 companies registered as foreign direct investments by Rwanda Development Board in 2011 were surveyed.

Senior managers in the surveyed companies provided the information that was released in the report.

In addition to completed questionnaires, companies provided financial statements which assisted in data validation.

Thomas Kigabo, the central bank’s chief economist who made the presentation of the report said that this exercise started in 2010 covering information of 2008 and 2009 financial year.

He noted that because FDI have been increasing, they remain a very important source of capital in Rwanda.

“ When you compare the return on equity in Rwanda to the world average, in 2011 we have 19.1 % in Rwanda and the world average was 7.1 % and this shows that Rwanda represent a competitive investment destination”, said BNR chief economist.

Investment were channeled into land, buildings, machinery, vehicles, equipment and working capital.

During the census period, total actual investment was $ 1.083.9 million.

Plant and machinery accounted for 30.3 percent, followed by building and civil works with 10.3% of the actual investment.

This pattern is due to growing construction activities in different sectors and new green field investment in mining and manufacturing.Image

ImageClaire Akamanzi the CEO of Rwanda Development Board remarked that this exercise is very important for RDB. She said that foreign private capital is crucial for driving economic growth of the country.

“ When we get these datas, apart from knowing the performance that we are registering, we also set the right policies that support us in our private sector growth agenda.”

In terms of sectorial distribution, ICT accounted for 67.0 percent, followed by financial and insurance with 13.4 percent and manufacturing with 10.1 percent. Those investment originated mainly from Kenya *$ 66.7 million*, Switzerland *$ 47.1 million*, South Africa * $ 46.4 million* and Mauritius with $ 36.7 million accounting for 55.6 percent in 2011.

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