Plans are being made to open a free zone to facilitate trade in the Rwandan capital, Kigali.

Located in the heart of Africa, Rwanda occupies a highly strategic position for doing business in the region, providing easy access to six other countries and a potential market of 60 million people.

Its catchment area includes the eastern Democratic Republic of Congo, Burundi, Uganda, and Tanzania. From a wider perspective, as a member of the Common Market of Eastern and Southern Africa (COMESA), Rwanda can access a market of 400 million people, and it is expected to become a member of the East African Community (EAC) later this year.

“There is no other country that has the same competitive advantage,” says Williams Nkurunziza, Director General of the Rwanda Investment and Export Promotion Agency (RIEPA). “We see ourselves as a launch pad for commercial activities in the areas around us, and the smart money is looking at positioning itself in Rwanda now to cash in on the economic and demographic growth in the future.”

Rwanda itself is the most densely populated country in sub-Saharan Africa, with a population of eight million that is expected to double by 2020. Big opportunities are available for investment in agro-processing, energy, information and communication technologies (ICT), infrastructure, mining, and tourism.

According to James Musoni, Minister of Commerce, Industry, Investment Promotion, Tourism and Cooperatives, Rwanda has set itself the target of growing its per capita income from $250 in 2000 to $900 by 2020. “Coupled with likely scenarios for population growth, this means that the overall economy will need to expand by over 600 percent. This would require the economy to go from just over $2 billion to $14 billion. The country needs to accelerate growth through simultaneous direct investment and exports.”

WILLIAMS NKURUNZIZA Director General of RIEPA	LAURENT NKUSI Minister of Information	JAMES MUSONI Minister of Commerce, Industry, Investment Promotion, Tourism, and Cooperatives

Rwanda has eliminated most tariff barriers and become one of the most liberalized economies on the continent. It is politically and economically stable, committed to good governance and remarkably free of corruption. The National Tender Board ensures a high level of transparency throughout the procurement process, and the creation of a level playing field has had a big impact on investor confidence.

Priority is given to creating the right environment for the private sector to do business. Advantages for investors include permanent residency, waivers of taxation, free land, and capital repatriation.

“We are planning to open a free zone in Kigali which will be modeled on those you find in places like Dubai,” says Minister of Information Prof. Laurent Nkusi.” This will facilitate commercial exchanges between Rwanda and the rest of the world.”

In 2004, RIEPA registered investment projects worth approximately $210 million. As of September 2005, the projects registered with the agency were worth almost $500 million, representing a growth of 100 percent within a single year.

“We say what we mean and deliver on our promises,” says Williams Nkurunziza. “Everything we do is transparent and the government’s business conduct is predictable. This helps strengthen investor confidence.”

Mr. Nkurunziza is positive that investments will continue to grow. “What interests investors is that our economy is literally virgin, with opportunities across all sectors of the economy,” he says. “New activities to expand and diversify our export base, particularly through value addition, should fuel the economy to grow even further and generate more export earnings.”