Rwanda still a long Way from being FDI Hub

A comparison of Foreign Direct Investment (FDI) inflows into Rwanda with total global re­ceipts for 2012 shows that the country is still a long way from the stated goal of being a hub for foreign capital. Last week, the National Bank of Rwanda (BNR) released the 2012 For­eign Private Capital (FPC) results capturing 2011 inflows which indicate a 4.1% growth rate. According to the report compiled after a survey by the National Insti­tute of Statistics and Research (NISR), inflows increased from $343m in 2010 to $357m.
BNR and Rwanda Development Board (RDB) officials were delighted with the results declaring that the “upward trend in total investments testifies the positive impact of doing business reforms regarding invest­ments promotion in Rwanda.”

The report also noted that inves­tors who chose Rwanda reaped big­ger returns on their equity compared to those who invested in other economies. “Against the average global return on equity of 7.1%, investors in Rwan­da enjoyed an impressive 19.5% (up from 13.4% in 2010) which we can use as a tool to attract more foreign in­vestment,” said BNR Governor, John Rwangombwa. Construction, agriculture, manu­facturing and administrative support services sectors registered higher re­turn on equity. ICT, finance, agriculture and man­ufacturing brought in more capital with investors coming in from mainly Kenya, Switzerland, South Africa and Mauritius. About 30,717 jobs were created, up from 16,302 in 2010, the report said.

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