Market News | Buildexpo Rwanda 2021

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Why Rwanda is a market to target

Rwanda the land of a thousand hills is also known as one of the world’s fastest-growing economies, Rwanda has established the powerful role of entrepreneurship in reconstruction and reconciliation. The country’s annual GDP growth has averaged 8 percent over the past several years, and the percentage of people living in poverty has declined significantly. Rwanda aims to become what it describes as a “knowledge-based, service-oriented economy with middle-income country status” within the next few years.

Rwanda has a population of 11.8 million people and a Gross Domestic Product (GDP) of USD 8.096 billion dollars. Rwanda’s economy flourished by an average of 8 percent annually from 2002 to 2012, and then 6.9 percent growth in 2015 and 5.9 percent growth in 2016. The International Monetary Fund (IMF) expects Rwanda’s GDP to grow between 6-7 percent in 2017 and 2018.

There are many clear big picture economic signs that lead us to believe that Rwanda is the next country to target for conducting business. Here are some of the signs:-

  1. Inflation remains below 8 percent (pushed up from 5% in 2016).
  2. The country maintains its reputation for low corruption
  3. Rwanda's debt-to-GDP ratio at 40 percent is relatively low
  4. The percentage of foreign assistance in the country’s annual budget has dropped from over 80 percent a decade ago to 38 percent in 2016/2017 National Budget
  5. Rwanda enjoys relatively high rankings in the World Bank's Ease of Doing Business Index, which ranked Rwanda 59th out of 190 economies in the 2016 report—second-best in sub-Saharan Africa behind Mauritius.

Leading sectors in Rwanda include energy, agriculture, trade, hospitality and financial services. Rwanda’s economy is essentially rural and heavily dependent on agriculture but they have big plans to change things. Strong and steady growth in the services sector particularly construction and tourism have contributed immensely to overall economic growth.

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The government’s economic priority is turning Rwanda into a regional trade, logistics, and conference hub. Pillars of this progress include the construction of several new international business class hotels and a convention centre in downtown Kigali and expanding and investing in the fleet for the national carrier RwandaAir.

When we talk about the exports, Rwanda’s exports increased by 7.4 percent year-on-year in 2016, reaching USD 621.6 million according to UN ComTrade data. Commodities, mainly gold, tin, tantalum, tungsten, tea, and coffee, got over 48 percent of its export revenue. Rwanda earned USD 73.5 million from tea exports in 2016, a nine percent increase from 2015.

Over the same period, coffee accounted for USD 59.5 million worth of exports, down seven percent from the previous year. Major markets for coffee exports are the United States and Europe, while the Middle East and Pakistan are the main buyers of Rwandan tea. 

Tourism was, for the first time in 2016 the country’s leading foreign exchange earner with total revenues estimated at USD 390 million in 2016, according to the National Bank of Rwanda. 
Leisure tourism and Business tourism played pivotal roles in this upsurge. They are the highest income generating sectors. The escalation of Meetings, Incentives, Conferences and Events (MICE) led to the same.

When it comes to crime rates Rwanda’s strong police and military provide a security umbrella that minimizes potential criminal activity and political conflicts. 
Rwanda is not for the short-term investor, but there are opportunities to be pursued over the long haul.

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    Posted on :Saturday , 25th May 2019

    After successfully launching construction of Africa’s biggest tech hubs Kigali Innovation City, Rwanda is approaching to a cleaner environment with the Green City project in the capital Kigali in 2020. Rwanda is planning to construct a green city on 620 hectares in Kinyinya Sector, Gasabo District as an approach to achieve a cleaner and safer environment. 

    It will be the firs. . .

  • BuildExpo seeks to improve construction in Rwanda

    Posted on :Friday , 24th May 2019

    The second edition of Build Expo was opened on Wednesday May 23rd by the Minister of Infrastructure, Hon. Ambassador Claver Gatete, at the Kigali Convention Centre.  The event attracted a number of distinguished guests from all walks of life including ambassadors from other countries, foreign ministers, members of the public and private sector and media.

    The Regional Marketi. . .

  • RWANDA'S CONSTRUCTION SECTOR GEARS UP FOR BIG TICKET PROJECTS IN 2019 AND BEYOND

    Posted on :Wednesday , 17th April 2019

    The construction industry contributes more than seven per cent to Rwanda’s national GDP. Big projects for example, the Bugesera airport project, have kicked off well while many others are in the pipeline.  There is still demand for retail space while more projects are coming up. Although the demand and supply sides are yet to be reconciled, the increasing capital spending by the priv. . .

  • CONSTRUCTION AND DEVELOPMENT OF HOUSING SECTOR, GROWING IN RWANDA

    Posted on :Wednesday , 10th April 2019

    The construction sector in Rwanda is experiencing a huge boost due to the population growth rate of 2.7% annually. The growing demand in the construction and real estate sectors is being experienced by Rwanda on a massive scale.

    Every year 28 thousand and 35 thousand housing and commercial units are in demand within Kigali; struggling to meet this need are the developers.

    ". . .

  • East Africa retains lead as top investment destination in 2019

    Posted on :Thursday , 7th February 2019

    Where to Invest in Africa 2019? RMB has the answer. Kenya, Rwanda, Ethiopia and Tanzania will be among Africa’s most attractive investment destinations in 2019. According to a report prepared after an extensive study by South Africa based Rand Merchant Bank (RMB). The RMB Investment Attractiveness index scrutinises a countries’ economic and operating environments to evaluate their p. . .

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