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.