RWANDA’S INVESTMENT · PDF file• The country hasa a high altitude ranging from 1400 m to over 2400 m, fertile soils, ... • Drei ct sael s to 2–3 key EU whoel sael rs woud l

RWANDA’S INVESTMENTPROJECTS

Time zone: Central African Time (CAT) - GMT +2 hoursSize: 26, 338 Square KilometersPopulation: 11:46 million.Languages: English, French, Kinyarwanda, Swahili. Capital City: KigaliLocal Currency: Rwandan FrancTelephone country code: +250ICT: High speed 4GTe wireless broadband.Climate: Temperate all year round (24-27 degrees Celsius).

Rwanda as a country is on the move and is widely regarded as one of the strategic destinations for investments and tourism in the EAC region.

For the last ten years, Rwanda has consistently implemented doing business reforms, including developing and implementing clear strategies to create an enabling regulatory and institutional environment for businesses and investment to thrive.

As a result, Rwanda has emerged as the top global reformer in the World Bank Doing Business rankings. Today, we are uniquely positioned to engage with international markets and do business with the rest of the world

Further, the country’s membership to the East African Community bloc makes it part of a market of over 141 million people and is one of the most promising and exciting economies in Africa, with a diverse array of viable investment opportunities.

The Rwanda Development Board, Rwanda’s one stop center for investors, welcomes you to Rwanda. Our efficient services include but aren’t limited to; a short business registration process (6 hours), full information on the country’s investment opportunities, incentives, aftercare services to ensure smooth operations and continuous advocacy for businesses in Rwanda.

QUICK FACTS

THE INVESTMENT CLIMATE

Welcome to Rwanda

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INVESTMENT OPPORTUNITY:

FLORICULTURE

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MARKET OPPORTUNITY

INVESTMENT OPPORTUNITY

•Rwanda is one of the best destinations in the region for floriculture development in terms of excellent Agro-climatical conditions, Governance, Business environment and Institutional support available for pioneer floriculture projects.

• The country hasa a high altitude ranging from 1400 m to over 2400 m, fertile soils, plenty of rainfall throughout the year of between 900 mm to 1,500 mm and day temperature 20 to 30ºC and night temperature 5 to 20ºC. Abandant labor at daily wage range of US$ 1.10 to 2.20, makes it an enviable destination for floriculture development.

•Rwanda has the plan to develop 650 ha of flowers up to 2017 and appropriate sites have been earmarked.

• Infrastructures are well rated and there are at least 7 flights per week to Amsterdam, Brussels and Dubai in addition to flights to the region which include Kenya, South Africa, Ethiopia, Congo Brazzaville, DRC, Gabon, Tanzania, Nigeria.

• A cargo freight of Turkish airline and Martin air travels to Kigali twice a week from Amsterdam respectively with attractive charges of as low as $1.6/ Kilo to Amsterdam(Turkish) and $1.0/Kilo to Dubai ,Nigeria, Johannesburg, Accra and Lagos(Rwanda air).

•Gishari sector located in the eastern province of Rwanda was identified to have ideal conditions in terms of altitude, existence of sufficient water and its location near Kigali.

• The Gishari flower park project was designed by Government of Rwanda to facilitate investment in the nascent floriculture industry, to increase export of non-traditional and high value products. The project will be implemented on on a public private partnership basis.

• The flower park will be developed on 35 ha to produce

green house premium intermediate standard roses for export market.

• The flower park is expected to produce 44 million stems per year on completion at a projected price of $0.2 per stem.

• The project will be developed from a capital investment of $45/m2 and a starting running capital of $15/m2 per year.

Other identified sites for rose/ flower production

• The government has identified other potential sites for rose/ flower production and will provide the basic infrastructure.

INVESTMENT OPPORTUNITY: Gishari Flower Park

INVESTMENT OPPORTUNITY: Gishari flower park

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RWANDA AVOCADO EXPORT

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MARKET FACTS

• Global avocado consumption has grown strongly over the last decade, with imports increasing by 17% per annum to total over $1.6B in 2010. This dynamic creates a significant market for Rwanda’s most cultivated fruit.

• The EU is a particularly attractive export market as it has struggled to find more sources of increased supply.

• Rwanda’s favorable climate allows year round cultivation, enabling exporters to take advantage of the higher price

• The Government’s aggressive export targets support and translate into substantial investments in horticulture.

RWANDA’S ADVANTAGES

• Rwanda has more than 280,000 Hass avocado seedlings to smallholders since 2009.

• The agro-climatic conditions in Rwanda are ideal for avocado cultivation, with year round harvest potential.

• Proximity to Kenya makes Rwanda a natural extension of the regional avocado export network

• The opportunity to invest ~$3M into an avocado packaging and export business has a projected IRR of 35% - 40%, with net income of $1M by year five

• Opportunities to export between 2,000 - 8,000 MT of avocados and generate ~$5M - $10M revenues by year 5.

• Direct sales to 2–3 key EU wholesalers would be supported by sales to large EU retailers and supermarkets, such as Tesco, Carrefour and Sainsbury’s.

INVESTMENT OPPORTUNITIES

Global avocado imports grew by 17% over 8 years

Rwanda’s high precipitation levels iswell suited to avocado cultivation

Seasonal EU price fluctuations providehigher prices in the “cold season”

INVESTMENT OPPORTUNITY: Avocado Export

INVESTMENT OPPORTUNITY: Avocado export

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KIGALI WHOLESALE MARKET

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PRODUCT BACKGROUND KEY DESIGN PARAMETERS

PROJECT RETURNSPROPOSED SIZE OF THE PROJECT

• The government of Rwanda has identified horticulture as a top priority and subsequently channeled a considerable amount of resources into its development.

• The government efforts to develop horticulture have resulted into tremendous increase in horticulture production that currently stands at 2.5 million tons annually.

• The development of a modern wholesale market will both promote the sector and provide an attractive investment opportunity

Terminal Value (TV) after 20 years is calculated at a discount rate of 15%The government has determined that the Economic rate of return justifies the expenditure of public funds. It is also recognized that the financial rate of return is insufficient to attract private capital. As a result the Government of Rwanda is willing to entertain proposals for public private partnerships that will generate adequate returns for the private investor.

• The proposed Kigali Wholesale Market for Fresh Produce (KWMFP) is a new 10,000m2 facility located in Kigali Special Economic Zone (KSEZ), Kigali City. The market will have the capacity to accomodate over 300,000 metric tonnes (MT) per year by 2030. The total cost of the project is estimated at $31.4 million. Once there is a trading record it will be possible to refinance and expand the project using commercial finance.

• The project has the potentially create up to 2,000 jobs within the wholesale market and through affiliated businesses. It will also establish Kigali as a hub for supplying Fresh Foods and Vegetables to surrounding countries.

• A modern wholesale market in Rwanda will deliver benefits to all stakeholders, including:• Improved access to regional and international markets

for smallholders• Improved opportunities for value addition through

cold storage.• Lower food prices from improved supply-chain

efficiency and reduced post - harvest losses• Improved hygiene at wholesale markets to meet

international standards.

An overview of project returns is set out in Table 1 below.

Table 1: Project returns

INVESTMENT OPPORTUNITY: Kigali Wholesale market

INVESTMENT OPPORTUNITY: Kigali wholesale market

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FISH MEAL PRODUCTION AND AQUACULTURE

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PROJECT BACKGROUND

Rwanda imported a total of 21.5 million USD worth of dried fish in a period of 5 years (2009-13), representing an average annual import value of 5,361 thousand USD. Although Rwanda’s imports of dried fish were almost non-existent before 2006, they have grown fast in recent years, with a Compound Annual Growth Rate of 45.7% over the 2009-2013 period.

80% of Rwanda’s imports of dried fish are re-exported to the Democratic Republic of Congo through informal cross-border trade.

Proposed InvestmentThe business case proposes investment in;• Commercial production of fishmeal made from locally

available small-sized fish species (haplochromines), for both human consumption and animal feed manufacture (as ingredient for the production of feeds for poultry, pigs and farmed fish);

• Aquaculture of Nile tilapia and catfish. Two options are considered: (i) cage fish farming and (ii) tank-based aquaculture.

Proposed project size:

2009 2011 2012 2013Annual average

Value in ‘000 USD

1,680 5,529 6,659 7,578 5,361

Volume in tons 3,456 10,090 11,206 10,459 8,825

Table 1: Rwanda’s net imports of dried fishTable 2: Initial investment capital

Table 3: Sensitivity analysis results

Required Investments

INVESTMENT OPPORTUNITY: FISH MEAL PRODUCTION AND AQUACULTURE

Initial investment and working capital requirements for producing 300 tons of fishmeal per year are 423,986 USD.

Initial investment and working capital requirements for the cultivation of 1,200 tons of Nile tilapia through cage fish farming and 300 tons of Nile tilapia through tank culture are 1.56 million USD and 378,304 USD respectively.

The total investment cost of the project as proposed in this business case would be 2.36 million USD.

INVESTMENT OPPORTUNITY: FISH MEAL PRODUCTION AND AQUACULTURE

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KIGALI INNOVATION CITY

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INVESTMENT OPPORTUNITY: Kigali Innovation City

INVESTMENT OPPORTUNITY: Kigali Innovation City

INVESTMENT OPPORTUNITIY

• Technology companies investing to domicile their innovation businesses in

•Kigali Innovation City, a gateway to Africa.• $1 billion construction project - $150 million available now

as stage 1;•Rwanda Innovation Fund - $100 million ($30 million by

Government of Rwanda)

KIGALI INNOVATION CITY

Kigali Innovation City, an ICT park, is a government of Rwanda flagship project designed to accelerate development of Rwanda’s ICT sector and transform the country into a knowledge-based economy.

The Kigali Innovation City is an ecosystem of innovation clusters which include biomed, FinTech, content/big data, logistics, energy and AgriTech. Technology clusters are supported by a scalable platform for human capital development, an innovation friendly financial capital market structure with an innovation fund, and Rwanda’s continually improving business-friendly environment.

Come and take advantage of the investment opportunities in the innovation gateway to Africa.

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GIHAYA ISLAND ECO-RESORT

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INVESTMENT OPPORTUNITY: Gihaya Island Eco-Resort

PROJECT BACKGROUND

• The Gihaya Island, a former presidential summer residence is the perfect site for the construction of a 5* Eco Hot Spring Resort and the development of luxurious private villas targeting the Rwandan upper-class, the Congolese and the International market.

• The complex will comprise of an exclusive high-end quality 5* Eco lodge with a 9-hole golf course on the Gihaya Island. Furthermore, the guest will have the option to practice a wide range of sports, either on the lake itself, the resort’s own swimming pools or on the tennis courts grounds. A mini yacht club with facilities for jet and water skiing, kayaks & pedal boats, kite surfing or parasailing on the lakeside of Kivu Lake will make the guests’ stay an extraordinary experience.

• The superior aim is to extend the guests’ stay longer by offering them a breath-taking island experience on a peninsula with natural hot springs and a low density facility that has a homely atmosphere. The 5* Eco Lodge will also comprise: Exotic garden, Swimming pool(s), Tennis courts, Spa, Conference rooms, 2 or 3 restaurants,Mini “yacht club” with kayaks, pedal boats,Golf,Private pier for hotel guests, Private pier at Kamembe port, Private boats from the port to the islands and between the two islands, Link to/twinning arrangement with Nyungwe Forest Lodge

• Tar surfaced roads to be completed in the region •Kamembe airport upgraded and completed

• Congo Nile Trail •Hiking and Trekking Trails •Natural beauty of the Island of Gihaya and of the nearby

Island of Nkombo, the lake and the mainland surrounding area

•Historical site of the Presidential summer residence •Birdlife • Fishing • Cultural based tourism (dance, local cooking demonstration,

crafts made by women, particular traditional life style on Nkombo island – Bashi inhabitants)

Access & Transportation

Key attractions

INVESTMENT OPPORTUNITY: Gihaya Island Eco-resort

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Required Investments

Gihaya Island 5* Eco LodgeLocationPositioning Gihaya Island 5 star

Eco ResortTarget Group Rwandan upper-class,

the, Congolese and the International market

Keys 80-100Renovation and new construction of presidential residence into 5* Eco Lodge

$ 50,000,000

Total cost $50,000,000

The Project summary

Gihaya Island Eco ResortOwnership: Mostly privateTitle Deed ExistsSize of property: 65 ha 90 are 36 ca = 659,036m²Built Up Area: BUA restricted up to 50m from

lake.Exception is made for beaches or similar facilities.

Topography: 1470 -1500 mServices to boundaries: NoneServices at location: Only primary school and Gihaya

Sector officeAccess to site: By boat via Lake KivuEnvironmental Impact Assessment:

Not done

Guidelines/rights: NoneRestrictions: Site development restricted

except for touristic projectsCosts US$ 50 Million

Profit & Loss StatementProfit and Loss is only recommendable once a detailed feasibility study has been conducted.

INVESTMENT OPPORTUNITY: Gihaya Island Eco-resort

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5*GOLF COURSE RESORT & RESIDENTIAL VILLAS –KARONGI

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INVESTMENT OPPORTUNITY: 5*Golf Course Resort & Residential Villas – Karongi

PRJECT BACKGROUND

• The 5* golf resort will be located in Karongi District, in Bwishura, close to the city centre where a unique new 18-hole championship golf course will be an attraction for the international, regional and national upmarket leisure traveller.

• This new development will be a favorite addition to tourists visiting the Volcanoes National Park wishing to extend their stay in Rwanda.

• Along with the Golf Course and the 5* Golf Hotel, a residential complex will be developed embedded in the beautiful surrounding of the golf grounds. This property development will serve the growing demand for the ambitious Kigali Residents, offering a second home investment opportunity either for own leisure demands or to be rented out to visitors and golfers.

Access & Transportation • The site is only 2 hours’ drive away from the capital city,

Kigali •Road link from Karongi to Rusizi is well developed further

inland.

Infrastructure and Utilities •Water supply and capacities of the district are provided. • The city has a stable power grid.

Key attractions • Congo Nile Trail •Bigiru Mwami’s Residence • Environment Museum • Lake Kivu Bluebirds Boat •Natural resources include: forests, mountains, the lake,

caves, flora and fauna, hiking and trekking trails • Lake Kivu and its surrounding islands

Availability of land for development •District has made provisions for government owned land

to be converted to tourism zoned land. •Government will assist in purchasing other suitable

parcels of land.

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Project Data – Golf Course Ownership: Public owned land would be regarded

as an advantageSize of property: 200 hectaresZoning rights Tourism rightsBUA: Below averageServices to boundaries:

Sufficient water supply

Access to site By road, 25 – 30 minutes from centre Karongi and 10 from the Karongi District office.

Development Plan A deluxe Resort with approx. 60 – 100 rooms at a 5* level and 30- 40 residential villas set nearby, managed by the hotel.The Golf Course and the Resort will be developed in parallel and will open at same time. The Golf Course will be an 18-hole course designed at championship level in order to attract experienced golf players.In a second phase real estate development – adjacent to the resort and the Golf course, the mentioned 30 to 40 residential villas will be launched. The products offered are:

• Second homes (villas/ apartments)• Apartments to rent and to be

serviced by the hotel

Karongi, Golf resort and Golf CourseTotal investment Hotel and Golf Course

50 - 80 Mio $

Required InvestmentsThe Project summary

Profit & Loss StatementProfit and Loss is only recommendable once a detailed feasibility study has been conducted.Environmental requirement prior to construction.

Environmental requirement prior to constructionThe developer is required to conduct a full Environmental Impact Assessment (EIA) and receive an Environmental approval certificate before construction.

INVESTMENT OPPORTUNITY: 5*Golf Course Resort & Residential Villas –Karongi

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HOT SPRINGS ECO RESORT

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Project Data Hot SpringsOwnership: Community owned landSize of property: Approx. 12.5 hectaresZoning rights: Tourism zone (TA 2)Built Up Area: Max. building coverage: 30%

Max FAR: 2.4Max. number of floors: G+3

Topography: Hilly (>15 meters over 200 meters length, sloping max. 10%)

Services to boundaries:

Not confirmed, farm land

Services at location:

Water, electricity and sanitation is municipal, not to site

Access to site: 3 km from airport, 500 meters from tarred road, dirt road

Environmental Impact Analysis

Required

Guidelines/rights: Zoned for tourism and leisure development

Construction cost: US$ 40.000.000

INVESTMENT OPPORTUNITY: Hot Springs Eco Resort

PROJECT BACKGROUND

The Hot Springs Eco Resort will be located in Rubavu on a peninsula that features natural qualities which make it an ideal location for the development of a Hot Springs Resort.

This advantageous setting and natural asset will offer guests an exceptional island experience and cater for high-end customers. The attractions will be located within a one hour driving range.

The Hot Springs Resort is planned to be fully developed and integrated into the spa and wellness concept. The major unique selling point will be the spa, which will be fed from the hot springs for its wet zone equipment’s such as pools, treatment tubs and Jacuzzis. A jetty on the lake is to house water sporting facilities and boats/cruise vessels.

All facilities will be on stilted substructures and wood composite superstructures. The facility will cater for 50 units, whereas some should be rooms situated off the main facility, some freestanding villas and some spa villas. The room and villa sizes shall vary, starting from 40m².

Access & Transportation • Access to identified inner city tourism zones is well

developed. Availability of land for development •Districts have zoned AAA locations as tourism areas. •Government will assist in purchasing the land.

Project summary

INVESTMENT OPPORTUNITY: Hot Spring Eco Resort

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HOTEL STRIP - RUBAVU

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INVESTMENT OPPORTUNITY: Hotel Strip-Rubavu

PROJECT BACKGROUND Project Summary

This prominently located Hotel Strip development will be located along the beachfront of the main Rubavu tourism zone. The property will be highly visible from the entry point of the city and easily accessible from the newly developed beachfront road. It will be less than 100m from the existing Kivu Serena Hotel and well positioned above this main competitor. The terrain is almost flat with little vegetation on site.

The hotel strip will comprise of a mixed-use entertainment and leisure development that accommodates lodging, public areas, spa, casino, and event facilities.

The hotel strip will be a destination in its own right offering space for a large hotel and retail complex, which will cover a broad range of market segments. Based on preliminary research the following calculation proposes a development of 3 hotels, about 150 rooms, level and functionality.

Target markets/groups • International. regional & local middle class•Rwandese and expats mainly from Kigali • International tourists as part of their Gorilla tour. • Local middle class and international 35 - 60 years age

group.

Project Data Hotel Strip Ownership: City of RubavuTitle Deed: District of RubavuSpace available: 3 PlotsZoning rights: Tourism development (TA1)BUA: Coverage 60%, FAR 2,0Topography: No more than 1m variancesServices to boundaries: Fully availableServices at location: Water, electricity and

sanitation is municipalAccess to site: Excellent by road, 2 km from

airportEnvironmental Impact Analysis (EIA):

A full EIA study will be required for the proposed development

Guidelines/rights: Zoned for tourism and leisure development

Meeting and ConventionsTotal size in m² 400 m²Construction, FF&E, OS&E and OSCost per room (estimated) $185.000F&BSubtotal cost $1.496.000Leisure FacilitiesSubtotal cost $1.932.000Meeting & ConventionsSubtotal cost $520.000Other areas and equipment’sSubtotal cost (10% contingency) $1.255.800Total cost $32-33.000.000

INVESTMENT OPPORTUNITY: Hotel Strip-Rubavu

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ISHARA SUN BEACH HOTEL

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INVESTMENT OPPORTUNITY: Ishara Sun beach hotel

PROJECT BACKGROUND

A unique premium location of 30 ha overlooking the Lake Kivu with direct access to the lake is the current location of the 2* Ishara Sun Beach Hotel. Based on the existing construction, the idea is to transform the property into a 4* Boutique Hotel. Furthermore, Ishara Sun Beach will be developed into an integral tourism center offering a wide portfolio of water sport activities, options for organizing transportation within Rwanda, such as bike, car and boat rental services as well as a travel center where guests will be able to book tours and airport transfer.

So far the owner has already invested an amount of approximately US$ 1 Million. The property is built in a unique premium location of 30 ha overlooking the Lake Kivu with direct lake access. The current hotel facilities include around 20 rooms, a restaurant and a conference hall with a 250 seating capacity.

The main potential for Ishara Sun Beach Hotel lies in its absolutely perfect location with lake views, the quiet setting directly linked to the Congo Nile Trail.

Access & Transportation •Road link from Karongi to Rusizi is well developed, and

only at 500m distance from the hotel • At the road junction small shops can be found.• The hotel has direct lake access. A jetty will be upgraded • The site is less than one hour to the city of Kamembe,

Rusizi District and half an hour to Nyungwe National Park.

Infrastructure & Utilities •Water supply is provided • The site is connected to the power grid.

Attractions • Congo Nile Trail •Natural resources include; forests, mountains, the lake,

caves, flora and fauna, hiking and trekking trails • Lake Kivu and the many surrounding islands

Target markets/groups • International tourists •Regional Visitors • Individual travellers • Stop over and central meeting point

INVESTMENT OPPORTUNITY:Ishara Sun Beach Hotel

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Project Description – Ishara Sun Beach Resort Ownership: Privately owned landSize of property: 30 hectaresZoning rights Tourism rightsBUA: 30% built up areaServices to boundaries:

Sufficient water supply

Access to site By road, 45 minutes from Kamembe city centerAccess by boat , own private jetty

Development plan

A boutique style resort with approx. 30 – 40 rooms at a 4* level.The hotel will provide typical resort facilities (Spa & wellness, Gym, Sports activities etc.), but will also offer restaurant and bar services plus event facilities suitable for conference as well as for private functions (weddings).A portfolio of water sports activities will be on of the strengths of the resort. The private jetty not only offers access to a regular Lake Kivu water transport system it also enables private boat rentals and many water sports activities

Project Summary Financial Calculations

HotelLocation Nyamasheke DistrictPositioning 4 star Boutique ResortTarget Group International, Regional,

Individual Travellers, Stop over and central meeting point

Food and BanquetingRestaurants 2Private and public spaces

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Meeting and ConventionsRooms 1Total size in m2 50-100Financials (USD)Hotel improvement $ 1 – 1,500,000Sports facilities, private jetty station

$ 500,000 – 1,000,000

Tourism services Detailed calculation to be made depending on mode of operation

INVESTMENT OPPORTUNITY:Ishara Sun Beach Hotel

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PHARMACEUTICALS

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MARKET FACTS


• The overall pharmaceutical market in sub-Saharan Africa is worth US$ 3.8 billion annually, but the pharmaceutical manufacturing sector in Africa contributes only 25-30% of the continent’s needs.

•Rwanda imported US$ 51 million worth of medicaments in 2013

• Community health insurance stimulating demand( more than 90% coverage),

• Potential partnership with government • Flexibilities to produce generics of brand name essential

products

• Export potential: Rwanda is a hub for access to the regional market.

• Existence of national health insurance system which enables access affordable and quality health care

• A four-year (2012 – 2016) plan of action for the EAC region pharmaceutical manufacturing.

• A number of incentives that are extended to investors in the manufacturing sector.

• Serviced sites in special economic zone and export processing zone available

• Adequate labor in availability, cost and capacity.

• Initial investment required for medicaments production would comprise equity investment of about US$ 2.4 million and a term loan of approximately US$ 7.2 million at an annual interest rate of 18%.

• Average annual net profit of US$ 1.72 million•Opportunities in manufacturing of:Medicines(drugs),

Medical consumables,Medical devices and equipment, Laboratory supplies and Food supplements.


INVESTMENT OPPORTUNITY: Pharmaceuticals

INVESTMENT OPPORTUNITY: Pharmaceuticals

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STEEL PRODUCTS

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MARKET FACTS


• Since 2006, the construction sector has been growing by 12.4% per year on average.

•With this trend, the local demand for steel will quadruple over the next 12 years and reach 332,000 MT by 2025 compared to the current demand at 82,000 MT, under the assumptions.

• Imports of steel materials in 2013: •Hollow sections: $5m imported (5,500mt) •Roofing Sheets :$15.4m (11,500mt)•Rebars:$19m (17,200mt)

• Steel products represent 4 of the 11 largest building material imports into Rwanda

•Quality standards and economies of scales are still low among local manufacturers, few large regional manufacturers are in the market.

• Availability of raw materials such as scrap• Effective Governance and stable political context limit

corruption and build context for business• A fully services Special economic Zone• Fiscal and non-fiscal incentives are provided to local & foreign

manufacturers• Adequate labor pool (in availability, cost and capacity required

for steel products manufacturing)

• Construction boom is set to continue for many years • Energy infrastructures, residential and commercial

housing developments present one of the largest demands for steel products

•Opportunities for manufacturing: hollow sections, rebars, accessories such as gutters, ridges, wire meshes,…


Projected Metallic Materials Demand at 5%, 12.4% and 15% growth scenarios

INVESTMENT OPPORTUNITY: Steel Products

INVESTMENT OPPORTUNITY: Steel Products

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PAPER PACKAGING

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INVESTMENT OPPORTUNITY: Paper Packaging

MARKET FACTS

• The supply of packaging materials in Rwanda is dominated by imported

• From 2008-2013, Rwanda imported a total of USD 122.3 million worth of packaging material, representing an average annual import value of USD 20.4 million.

• 2013 packaging materials imports by category:• Paper/carton: $12.3m• Plastic: $9.7m•Glass: $5.7m•Metal: $5.2m

•Domestic production is around $ 2- 2.5m per year• Proximity to end customers and to underserved markets

in the region with an open gate to 125 million people in the EAC common market.

•High demand of paper packaging due to the country’s restriction on non-recyclable plastic packaging.

•Rwanda is quickly becoming an active redistribution platform in East and Central Africa, due to strong Governance and highly inductive Business environment.

• The case for paper production is strong given the prospect of restrictions on additional plastic packaging materials.

• Changes in life style, growth in standard of living, the service & industrial sector will contribute to the growth in demand for packaging materials

• Availability of raw materials with low competition.


• Corrugated printed cardboard, • Paper bags and sack, • Paper labels and •Un-corrugated printed cardboard.


INVESTMENT OPPORTUNITY: Paper Packaging

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MOSQUITO NETS

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Over the five year period 2009 to 2013, Rwanda imported a total of US$ 85.9 million worth of mosquito nets, representing annual average imports of US$ 17.2 million, to implement the country’s malaria control programme.

In line with Government of Rwanda’s proposed domestic market recapturing strategy, this review of the business case for a “cut & sew” would be profitable under a public private partnership business model. The foreign net supplier will be assured of a ready market as well as a foothold in the Rwandese and larger EAC market.

THE SIZE OF THE PROPOSED PROJECT

Project Background

Initial investment required would comprise equity investment of US$ 354,000 and a supplier’s credit in the amount of US$ 1.5 million.

To sustain operations, the venture would rely on a revolving supplier’s credit averaging US$ 10.3 million per annum which would be fully repaid at the end of each operating year with interest at the rate of 18%.

Equity Loan/Suppliers' CreditFixed assets (Sewing Machines, Equipment & Furniture)

86,100 0

WHO-certified LLIN Fabric 0 1,500,000Salaries & Wages 127,400 0Utilities, Rental & other Overhead Expenses

90,500 0

Packing Carton 50,000 0Total 354,000 1,500,000

PROJECT RETURNS

The project remains profitable under various simulations of reduction in selling price, increases in the cost of net fabric as well as in the rate of interest charged on the revolving supplier’s credit. This is demonstrated in table 2.

Table1: Financing Plan

Table 2: Sensitivity Analysis Results with Reduction in Selling Price

Financial Indicator Base Scenario 10% Reduction 20% ReductionFIRR 231% 143% 62%ADSC 2.44 2.28 2.12Average Net Profit US$

3,852,912.82US$ 2,520,645.94

US$ 1,188,379.06

INVESTMENT OPPORTUNITY: Production of Mosquito Nets

INVESTMENT OPPORTUNITY: Production of mosquito nets

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ENERGY

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INVESTMENT OPPORTUNITY: Energy

INVESTMENT POTENTIAL

ELECTRICITY TARGETS

AN UNRIVALLED OPPORTUNITY IN ENERGY INVESTMENT

•Rwanda currently has about 160MW of installed capacity •Renewable energy occupies 58%. • 23% on-grid electrification• 1% Off-grid electrification• Energy Saving: 800,000 Compact fluorescent lamps

distributed, around 1500 Solar Water Heatings

As Rwanda’s economy continues to surge forward, demand for energy to drive it continues to grow rapidly.

The Government of Rwanda demonstrates commitment to partnering with investors in power generation – by offering generous incentives and guarantees. This is creating unrivalled opportunities for investment in power generation

including alternative energy sources such as Methane, Hydro and Solar.

Strategies to Achieve our Energy Targets•Diversification of Energy sources;• Focus on domestic sources of energy and phasing out

heavy/fossil-fuel generation;• Involvement of the private sector in power generation

through Independent Power Producers (IPP’s) and Private Public Partnerships (PPP’s) structures;

• Provision of Power Purchase Agreement, underpinned with a minimum 25 years concession Agreement.

Regulatory Framework•Ministry of Infrastructure (for policy and strategy

formulation, and granting both concessions and MoU’s)•Rwanda Energy Group (implementing Company, providing

both technical assessment, and Power Purchase Agreements)

•Rwanda Development Board (Investment process, guidance, facilitation, leading negotiations for strategic projects, issuing Enviromental Impact Assesment, and providing incentives)

•Rwanda Utility Regulatory (in charge of sector regulation and licensing)

Energy Investment ProcessEnergy projects in Rwanda are granted in two ways;1. Competitive approach (Projects granted through open tendering process where government has fully or partly invested in their development phases): 2. Non-competitive approach (projects granted on proposal evaluation basis):

• 563 MW by 2017• 70% access by 2017 (with 48% On grid and 22% Off grid)• Biomass to reduce from 85% to 50 %


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Power Generation OpportunitiesHydro16 Micro hydro power plants with feasibility studies to be tendered in the near future

Methane Gas• Available concession for 100MW (To be granted through

competitive approach in 25 MW concessions)•Given concessions of 250MW (Kivuwatt: 100MW,

REC:50MW, KP1:50MW, Tender/Symbion:50MW)

Peat to Power• Peat potential country wide assessment to be completed

soon. • Concessions to be granted through a competitive

approach

Geothermal• Currently, Geothermal Master plan is being elaborated

and it is expected to be ready beginning 2016. • The master plan will give directives and indication on

potential for geothermal resource development.

Key energy private players• Contour Global from the United states developing 100MW

from methane•Hakan from Turkey developing 120MW from peat• Symbion Power from the Unites States to develop 50MW

from Methane•Goldsol II from Portugal, South Africa and Rwanda

developing 10MW from Solar•Ngali Energy from Rwanda developing Micro hydropower

project for 45MW•Gigawatt Global from Israel operating 8.5 MW from solar

Risk Mitigation Measures• Political Risk Insurance (PRI), • Partial Risk Guarantees (PRG) • Partial Credit Guarantees (PCG).


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RDBrwanda RDBrwanda

Rwanda Development BoardP.O.Box 6239, Kigali, RwandaGishushu, Nyarutarama Rd.KG 220 Street, [email protected] www.rdb.rw

We invite you to visit Rwanda to see these opportunities for yourself, please contact

Investment Promotion & Facilitation Department, RDBE-mail address: [email protected]: +250788414009 | +250788305065

Documents

RWANDA’S INVESTMENT · PDF file• The country hasa a high altitude ranging from 1400 m to over 2400 m, fertile soils, ... • Drei ct sael s to 2–3 key EU whoel sael rs woud l