Guidance

Overseas business risk: Rwanda

Updated 11 July 2017

1. Political and Economic
2. Business and Human Rights
3. Bribery and corruption
4. Terrorism Threat
5. Protective Security Advice
6. Intellectual Property
7. Organised Crime

Information on key security and political risks which UK businesses may face when operating in Rwanda.

1. Political Situation

Rwanda has experienced political stability under a strong central government since the genocide of 1994. Rwanda has been a multi-party democracy since 2003, although there are significant constraints on the space for opposition parties, media and civil society to operate. The country is a presidential republic. Current President Paul Kagame, of the Rwanda Patriotic Front (RPF), was elected in 2010. The next election will be held in August 2017. A new constitution, which enables President Kagame to stand for a further seven year term and two further five year terms, was adopted by referendum in December 2015. Kagame has confirmed that he will stand for election in 2017.

President Kagame and the RPF have achieved significant advances in poverty reduction and economic development through a strong vision for the transformation of Rwanda following the genocide. Rwanda has significantly lower levels of crime, violence and corruption than other countries in the region. The government has ambitious plans for economic growth, including to transform Rwanda into a technology and service hub.

2. Economic Situation

Rwanda is an open economy and has achieved impressive economic growth. Between 2001 and 2012 GDP growth averaged 8%, dipping in 2013 to 4.7% due to aid suspensions and an agricultural shock, but rising again to 7.0% in 2014, 6.9% in 2015 and 5.9% in 2016. The downward growth trend between 2015 and 2016 was mainly due to decline in global commodity prices. The IMF expects growth to be 6.2% in 2017, and 6.6% in 2018. Rwanda has an impressive record of macro-economic stability with single digit inflation. Rwanda’s ambitious Vision 2020 development strategy seeks to transform the country from a low income agricultural based economy to a service orientated, middle income economy by 2020. The medium term strategy, Economic Development and Poverty Reduction Strategy 2013-18 (EDPRS2), proposes to raise GDP per capita to US$ 1,000 by 2018. To achieve this target will require an increase in agricultural productivity (agriculture contributes 32% of GDP, and employs 80% of the population) and a greater role for the private sector through creation of employment opportunities in the formal sector. Rwanda has significantly improved its investment climate with the objective of attracting more private sector investment to drive its long term development. In the last decade, Rwanda has moved substantially up the Doing Business global rankings: from 150th place in 2008, to 56th in 2017. Rwanda now has the second most competitive business environment ranking in Sub-Saharan Africa. Persistent constraints to doing business include poor and costly power supply, high cost of energy and high cost of transport and trade due to landlocked Rwanda’s geographical location.

The Rwanda Development Board offer a one day, one stop shop for foreign investors. Opportunities include ICT, residential housing, energy, extractive industries, agriculture, infrastructure and financial and business services. Further information is available from the Rwanda Public Procurement Authority.

Rwanda is a member of the East Africa Community (EAC), Common Market for Eastern and Southern Africa (COMESA) and the Commonwealth.

3. Business and Human Rights

The human rights picture in Rwanda is mixed. Rwanda does well on economic and social rights, having invested heavily with the aid of international donors, in access to housing, education and healthcare. Women’s rights and representation in public office are amongst the best in the world. However, there are human rights concerns around the lack of freedom of expression and targeting of opposition leaders and civil society organisations. Political space is very limited.

4. Bribery and Corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world. In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere. Further information is provided on our Bribery and corruption page.

There is very little corruption in Rwanda due to ongoing government commitment to eliminate it. Rwanda was ranked 50th (out of 176) in the 2016 Transparency International Corruption Perception Index.

5. Terrorism

There is a low threat from international terrorism in Rwanda, but it is important to remain aware of the global risk of indiscriminate terrorist attacks. Further information is provided on our Terrorism threat page.

6. Protective Security Advice

While most visits to Rwanda are problem free, visitors should be aware that problems can arise. It is important to prepare for your visit by reading FCO Travel Advice, taking according precautions, and taking out comprehensive travel insurance.

7. Intellectual Property

Rwanda has had intellectual property legislation in place since 2009. Further information is available on our Intellectual Property page.

8. Organised Crime

Organised crime has a relatively low impact on foreign companies doing business in Rwanda. Further information is available on our Organised crime page.

9. Contact Us

The Department for Business and Trade (DBT) does not have representation in Rwanda, but for further information please contact BHC.Kigali@fco.gov.uk