Ratio Magazine :: The Inside Track to East Africa’s Economies - Rwanda :A Fresh Look at Investment Potential and Limitations

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Rwanda :A Fresh Look at Investment Potential and Limitations

Tuesday, 15 April 2003

Page 1 of 8

After listening to Rwanda's President Paul Kagame speak at an investment symposium in London in November 2007, Ritesh Doshi undertook several trips to Rwanda in January and February 2008 to assess the country's investment opportunities. Rwanda is a small, beautiful, land-locked country with kind but reserved people. The country is much smaller compared to its regional neighbours, but as a member of the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC), it has access, at least in theory, to a much larger market comprising of over 400 million people across 20 countries.

Rwanda has approximately 9.5 million people, of which 90% live in the rural countryside as subsistence farmers, but the literacy rate is surprisingly high at over 70%. The main ethnic groups are the Hutu (84%), Tutsi (15%), and Twa (1%); however, after the genocide, ethnic identification has been banned, and most Rwandans say that they are ‘Rwandan’ when questioned about their tribe. Over 55% of the country is Roman Catholic, and another 35% belonging to other Christian denominations, with a small number of Muslims.

The government has been led by President Paul Kagame since 2000, although his party, the Rwandan Patriotic Front (RPF) has been in power since 1994. The forward-thinking leader has been praised by many for establishing security and promoting reconciliation and major strides in economic and development terms, but has also been criticised by some for being overly authoritarian and intolerant of dissent.

The ruling elite appears to maintain strong relations with the business elite, which should come as no surprise given the pro-business stance of the government. The lack of open corruption gives one comfort that there is a more level playing field, although things are far from transparent. Being aligned with, or at the very least in favor with, certain people certainly does not do any harm.