Transcript Document

© 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: 11M
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
1st commodity
exchange in the
EAC region
6 hours to start a
business
4th easiest globally
for a business to get
credit
15th easiest globally
to acquire property
Top global reformer
6 years
Most competitive place to
do business in East Africa
and 3rd in Africa, after
Mauritius & SA.
7th best global
destination for
investments.
2nd 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:
Member of the EAC with a market of over 141M people.
(Duty free importation of EAC products due to the CET)
COMESA:389Million people
CEPGL: 89M 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 m2,
companies
minimum 5000 m2
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 3rd
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 allowanceAccelerated
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 -1,900km, 100 km inside Rwanda, 250 km to Bujumbura
Project cost. Est. $3.5billion,
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 $1.2Bn
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 25MW
Methane power Generation
Estimated total potential (Share for Rwanda) 350MW.
Available concession for 100MW. Given concessions of about 250MW
Peat to Power Generation
We have an investor developing 100MW (first phase of 80MW)
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 $210.6M
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 $500million) 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 $81million
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 are about 6 local
manufacturers currently in this
industry.
15
MANUFACTURING PACKAGING MATERIALS
Increased imports of paper
packaging, $28m 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 GoK)
• Agro-logistics (sorting, weighing, packaging…)
Source: RDB
18
TOURISM
 Tourism is a strategic sector as it is the second leading foreign
exchange earner- generated $303M in 2014.
 Rwanda currently receives just over 1M tourists and the sector is
poised to grow at 25% p,a.
 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.
 Major International brand hotels are set to enter the market:
Marriott, Radisson Blue, Radisson by Park Inn, Sheraton, Protea,
Kempinski.
 Growing Conference Tourism: Potential to be the conference
tourism hub of East Africa once Kigali Convention Centre is
operational;
 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 5000km 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
63.1ha allocated in SEZ phase II
15ha 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
 Apply for a visa on line www.migration.gov.rw
• Direct flights:
 With RwandAir and flydubai;
 Via Nairobi with Kenya Airways;
 Via Addis with Ethiopian Airways.
 Via Doha with Qatar Airways
 Via Istanbul with Turkish Airlines
 Via Amsterdam with KLM
 Register for a company online: http://org.rdb.rw/busregonline
 Visit: www.rdb.rw your one stop center for investors
23