Rwanda is a country in Central and East Africa and one of the smallest countries on the African mainland. Located a few degrees south of the Equator, Rwanda is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo. Rwanda is in the African Great Lakes region and is highly elevated; its geography is dominated by mountains in the west and savanna to the east, with numerous lakes throughout the country.
Population 12.63 million people
Total area of 26,338 km²
GDP 9.80 USD Billion
Currency Rwandan franc
Language French, English, Kinyarwanda, Swahil
Capital requirement at at least 100,000USD
However, the capital requirement can be relaxed accordingly if one fulfills certain requirements according to the ministry of commerce .
It takes two days for one to process the Investment certificate, work permit and the business visa.
Requirements for a business visa
The business visa applies to all people undertaking commercial pursuits in Rwanda.
- Valid passport
- One Clear Colored photo,
- Receipt of payment of 55USD for Category A workers and 11USDfor Category B Workers.
- Application letter to the Director General of Immigration and Emigration.
- Completed application form.
- Police clearance in English or French.
- Signed CV of applicant.
- A copy of business trading license.
- A copy of annual tax certificate.
- A memorandum of understanding for companies or associations.
Why invest in Rwanda ?
1. Sustained High Economic growth. The economy of Rwanda is growing at avery high speed which is an advantage for investors to invest in the growing economy.
2.Rwanda is one of the countries in East Africa which has relatively stable inflation and exchange rate this makes the country out standing in the region.
3.Rwanda has a Robust governance, the administration of the country offers great opportunities and incentives which attract Foreign direct Investments year in year out.
4. Market Access, the country has a stead market of over 10 million people with a rapid growing middle class. The county also has access to markets in the neighboring countries.
5.A hub for rapidly integrating East Africa: located centrally bordering 3 countries in East Africa, part of EAC Common Market and Customers Union with market potential of over 125 million people
6.Investor Friendly Climate, the government of Rwanda is doing its best to attract investments through offering investment incentives for instance tax holidays, free land etc.
7.Untapped Investment Opportunities. There so many sectors to invest in Rwanda these range from the goods and service sectors for example the agriculture sector, ICT sector, transport sector and so on .
Investment opportunities.
Manufacturing, Energy, Infrastructure, Education etc.
Criteria for investment project evaluation
1.Non trading activity
2.Creation of quality jobs
3.Transfer of Skills and knowledge
4.Use of local raw materials
5.Potential for export
6.Potential to create backward and forward linkages
7.Innovation and creativity
Taxation
Principal Taxes Tax rate
Corporate income tax 30%
Excise tax 5% to 70%
Customs duties 0% to 25%
Income tax from Employment 0% to 30%
With holding taxes 15%
Value added tax 15%
Dividend tax 15%
Labor
Rwanda has a vast labor market, It has skilled, semi skilled and unskilled labor, Most of the payments depend on the skills one has for a certain position.
Minimum wage 65USD
Average wage 200USD -500USD
Utilities
Basic (Electricity, Heating, Cooling, Water, Garbage) for 915 sq ft 36USD
1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) 0.075USD
Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) 38USD
One person a meal can cost 10USD
Projects in Rwanda which require Environment assessments
Construction and repair of international and national roads, large bridges,
Industries and factories
Hydro-dams and electrical line
Public dams for water conservation,.
Rain water harvesting for agricultural activities and artificial lakes.
Large hotels public building which accommodate more than one hundred daily,.
Extraction of mines and public land fills etc.
Investment incentives
Zero corporate income tax for companies planning to relocate headquarters to Rwanda.15% preferential corporate income tax for strategic sectors i.e. energy, transport, affordable housing, ICT and financial services.
Accelerated depreciation of 50% for key priority sectors i.e. tourism, construction, manufacturing and Agro-processing.
Exemption of capital gains tax.
Seven-Year corporate income tax Holiday for large projects in strategic sectors i.e energy, exports, tourism, health, manufacturing and ICT.
Repatriation of capital and assets.
However, fiscal incentives have requirements which need to be fulfilled before investors enjoy them .
Quick business and investment online registration
Assistance with tax-related services and exemptions
Assistance to access utilities (water & electricity)
Assistance with obtaining visas and work permits
One stop center that provides notary services
Provision of Aftercare services to fast track project implementation
Economic zones in Rwanda
The Kigali Special Economic Zone is developed in two phases
Phase I covers 98 hectares of land. It is serviced with roads, electricity, water and firefighting systems, sewage and fiber optic cables that will serve in easing the operations of investors. This phase hosts 97 plots divided thus; One plot sheltering a control room where all the electricity of the zone converges and is controlled; One plot sheltering water tanks supplying potable water to individual plots; One plot sheltering a sewage treatment plant that will treat all the sewage water from industries and 94 plots that accommodate industries/warehouses.(Rwanda development board).
Phase II has 178 hectares of land. It is serviced with roads, electricity, water and firefighting systems and sewage network. The number of plots in that phase is 67 plots divided as follows: One plot sheltering a control room where all the electricity of the zone converges and is controlled; One plot sheltering water tanks supplying potable water to individual plots; One plot sheltering a sewage treatment plant that will treat all the sewage water from industries; 64 plots that will accommodate industries/warehouses including and one plot that will serve as an ICT PARK worth 61.30 ha.
