Rwanda registered more than $2.46 billion worth of investments in 2019, according to the latest figures from the Rwanda Development Board’s (RDB).
This is an increase of 22.6 percent compared to last year where investments totaling $2.01 billion were recorded in 2018.
According to Clare Akamanzi, the CEO of RDB, the new figures are a demonstration of investor confidence and the new investments will help curb trade deficit.
“This is a sign of continuous investor confidence in Rwanda by both local and foreign investors. The increased investment figures will help curb our balance of trade deficit by promoting the production of locally made goods for the local and regional market,” she said.
Here is the breakdown of the key investments
1. The energy sector contributed the largest share of the recorded investments with 45 percent worth of investments registered last year going into different energy projects.
The manufacturing sector was second behind energy, attracting 30 percent of the total investments.
Other sectors that attracted significant investments were construction, agriculture, and services, which included information and communication technologies and mining, according to RDB.
2. Domestic investments stood at 19 percent in 2019, a huge decrease from what was registered last year. Domestic investment registration accounted for 51 percent from the previous year.
Joint ventures (local and foreign) contributed 44 percent of the investments registered, thanks to major projects like Rusizi III Energy (US$ 613 million) and Gasmeth Energy (US$ 442 million).
On the other hand, Foreign Direct Investment (FDIs) represented 37 percent during the year 2019.
3. 35,715 jobs are expected to be created by the new investments with the manufacturing and construction sector expected to create 22,935 and 3,053 new jobs respectively, RDB said in a statement.
Generally, the government aims to create 200,000 new jobs every year from investments and other employment sources. An increase in investments is expected to determine how much that goal can be achieved.
4. There are five major projects that represent the big share of the registered investments. This includes Rusizi III Energy ($613 million), Gasmeth Energy ($442 million), Ampersand ($152 million), Remote Estate ($145 million), and Nots Solar Lamps ($72 million).
Great Lakes Cement Ltd, Kenyan owned Mataba Farms Ltd, Mountain Ceramics Co., Elrumalya Rwanda Ltd, MJ Minerals and Petrol Lt, Fantastic Investment Group and Cheza Rwanda Games are other big projects registered last year.
5. Last year, Rwanda exported goods worth $1.021 billion, up from $995 million in 2018. As a result, contributing to the country’s Gross Domestic Product (GDP) which grew 11.9 percent in the third quarter of 2019 compared to the same quarter in 2018.