5 reasons for investing in Rwanda

2. 5 reasons for investing in Rwanda Sustained high growth • A clear vision for growth through private investment set out by President Kagame (Vision 2020) • Politically stable with well functioning institutions, rule of law and zero tolerance for corruption • 8.6% average year-on-year real GDP growth rate from 2005 - 2010, stable inflation and exchange rate • 3 year GDP growth rate highest among major African economies and neighbouring countries • Potential opportunities for investment abound, particularly in the following sectors: • Infrastructure: Opportunities in rail, air transportation to further develop Rwanda as an EAC hub • Agriculture: Backbone of economy. Potential for growth through productivity and value addition • Energy: Power generation, off grid generation and significant methane gas opportunities • Tourism: Unique assets creating booming sector; growth potential in birding & business/conference tourism • Information and Communication Technology: Priority sector for Vision 2020, new ICT park to be developed • Other attractive sectors include real estate and construction, financial services and mining • Market of over 10 million people with a rapidly growing middle class • A hub for rapidly integrating East Africa: located centrally bordering 3 countries in East Africa, part of EAC Common Market and Customs Union with market potential of over 125 million people • Top global reformer in World Bank Doing Business Report 2010 and 2nd in 2011 • Most competitive place to do business in East Africa and 3rd in Africa (WEF Global Competitiveness Report 2011 - 2012) • Country credit rating upgraded to B by Fitch 2010 • Among top 3 African countries in terms of internet connectivity (Ookla) • Increasingly attractive destination for foreign investments – foreign projects worth USD500m registered in 2009 • New special economic zone developed and more zones planned for the Districts Robust governance Investor friendly climate Access to markets Untapped investment opportunities Source: RDB World Economic Forum(2010/2011)

3. A government committed to making it easier to do business One of the fastest reforming countries in World Bank’s Doing Business rankings Business regulations now easier in Rwanda than the average economy in Eastern Europe, Asia, Middle East, Latin America and Africa • Moved 13 places in ease of doing business from 58th position (2010/11) to the current 45th position (2011/12)- WB doing business report 2012 • 2nd most reformed economy in the world over the last 5yrs, 3rd in Africa and the 1st in EAC. • Passed 4 new laws, including new commercial and insolvency laws; and 7 laws amended i.e. company law, mortgage law, condominium law, valuation law, credit information system law and holding and circulation of securities. • Recent improvements in Rwanda's doing business include; • Starting a business- 8th in the world from 9th last year(2010) • Getting credit- 8th in the world from 32 last year • Paying taxes- 19theasiest place to pay taxes world wide from 43rd last year #1 economy Average ranking on Ease of Doing Business 2011 30 OECD high income 58 Rwanda Eastern Europe & Central Asia 72 87 East Asia & Pacific Latin America & Caribbean Middle East & North Africa 96 108: SADC* 117 South Asia 117 : EAC* 137 Sub-Saharan Africa 151: ECOWAS* 173: ECCAS* Source: World Bank ‘Doing Business’ Rankings 2010 & 2011, World Economic Forum Global Competitiveness Report (2011 – 2012); ( *) Based on average ranking; SADC: Southern African Development Community; EAC: East African Community; ECOWAS: Economic Community of West African States

4. The Rwanda Development Board is proof that Rwanda is open for business RDB is the government agency charged with fast-tracking economic development in Rwanda. Independent, influential and built with global expertise, we are a government agency with a private sector mindset. Bringing the entire investor experience under one roof, RDB is here to show that Rwanda is open for business • Information hub for investors – Investment Promotion team • Your guide to investing in Rwanda. Single point of contact for guidance on laws, policies, incentives, investment climate and trends, investment opportunities, costs of setting up a business, process for finding land and sector specific information • Can be contacted via email, phone, in person and investment meetings in Rwanda • Your link to the right people • Advocates on your behalf for special considerations to Cabinet depending on project size and strategic importance • Helps you find local joint venture partners and connects you to local service providers • Coordinates public private partnerships between the government and the investors • Reports directly to the Office of the President • One Stop Centre for starting a business • You can register your business in 2 easy steps and receive your certificate in 24 hours at the RDB’s One Stop Centre • OSC provides trading license, sector specific certifications and licenses, environment clearance and investment certificates • Delegated officers from government agencies provide quick services at the OSC - work permits and visas, tax exemption and tax payment, land and construction permit, utilities (water, electricity), notary services • Facilitator for business implementation – Aftercare team • Your single point of contact after you register your business and begin to operationalize—helping identify solutions for issues you may be facing, coordinating and introducing you to government stakeholders and finding local partners • Provides business development services for export based companies and small-medium businesses Source: RDB

5. Opportunities for investment • Priority investment sectors: • Infrastructure • Agriculture • Energy • Tourism • Information and Communications Technology • Real estate and construction • Financial services • Mining • General manufacturing • Education • Health Source: RDB

6. Sector profile: InfrastructureRail, air, logistics investment opportunities abound to develop Rwanda as an EAC hub Roads • Roadsrepresent 90% of transportation in the country • Over 14,000 km (8,700 miles) of roads, ~20% of which is paved • Regional hub for road transport as it connects important regional players, from the east coast of Africa to the west coast Rail Air • There are no railroad systems available, but a new railway line is in the pipeline: • 2 branches of the railway line are: • Isaka-Kigali railway project to link to the port of Dar Es Salaam • Rwanda-Burundi via Congo to link the southern Africa Cape Gauge railway network • Cost of USD 4 billion and is currently fundraising • RwandAir is the national air carrier with flights to number of regional destinations (Nairobi, Entebbe, Arusha, Mombasa, Dubai, Johannesburg, Brazzaville and Libreville) • Other international airlines include Kenya Airways, Ethiopian Airlines, Brussels Airlines, KLM, China Postal Airlines, and African Star Airways • A new world class airport planned 40 km outside of Kigali at a cost of USD 635 m Source: RDB

7. Infrastructure Investment opportunities • Airport ground handling • Waste collection disposal • Waste recycling plant • Water transport infrastructure • Road construction, rehabilitation and maintenance • Bugesera new airport • Isaka railway project • Air transportation • Cargo transportation • Airport services: ground handling, pilot training etc

8. Sector Profile: AgricultureWorld class exports but many opportunities for regional export expansion Agriculture is the bedrock of the economy National strategy driving productivity, quality • Government and development partners have focused on improving quality through fertiliser distribution and farmer training programmes • This resulted in 15% growth in the sector in 2010 and higher price realization for coffee • Around 78% of the population is engaged in agricultural activities Exports led by tea, coffee but many options • Coffee– Largest agricultural export revenue earner in 2010 with US$ 56m; world class and winner of a number of international awards; main agricultural export with buyers including Starbucks and Sainsbury’s • Tea – Second largest agricultural export revenue earner in 2010 with US$ 55.7m; planned expansion of national tea production. • Many other opportunities – Dairy, fruits (many exotic varieties for juice), fresh cut flowers, silk and food crops for export to region Value addition is a major opportunity • Tea – Privatization of four tea plantations and factories currently underway • Coffee – Washing and roasting opportunities as premium harvest grows • Horticulture – US$211m regional import market • Distribution and cold chain – Need for improved infrastructure for export products Source: MINECOFIN, OCIR Cafe, RDB

9. Investment opportunities in Agriculture • Large scale production of fruits (passion, tree tomatoes, papayas, mangoes etc) and vegetables (tomatoes, green peas, carrots etc) • Fruit and vegetable processing (juice concentrates, tomatoes paste, dried fruits, jams etc) Coffee: • Horticulture: • Large plantations • Coffee washing stations • Roasting and Grinding plants • Large scale Coffee plantations • Large scale plantations • Fertiliser manufacturing plant • Tea factories • Blending and Packaging plant • Large plantations • Rice processing Tea: • Pyrethrum production and processing • Grain production and processing (maize, wheat) • Flower production and Park • Silk production and processing • Packaging plant • Fertilizer manufacturing plant • Fresh wholesale food market • Irrigation project Others: Rice:

10. Sector profile: EnergyNew generation and methane gas can open access beyond Rwanda to neighbouring markets Overview Generation • 80% of energy from wood combustion and electricity coverage levels low at 10% • 85 MW of electricity generation (50% hydro-electric, 50% diesel) today • GOR has set ambitious targets to increase energy production (1000MW by 2017) and is diversifying sources of energy • 3 regional hydro power projects identified. Rusizi III with an output of 145MW has completed feasibility study • 333 potential sites identified (50KW-1MW) for micro-hydro Power grid • Power grid coverage is planned to expand to 67% of the region by 2012 through a USD 311 million capital budget roll-out plan • Transmission and distribution networks to expand from 3,300km to 5,000km by 2012 Methane Gas • 50-55 billion m3 of methane gas in Lake Kivu: • 1st Gas Concession and Power Purchase Agreement signed with Contour Global – 100MW KivuWatt power plant under construction expected to produce 4MW/hour for ~$324M • Further opportunities such as a 2nd concession at Lake Kivu and conversion of gas to liquid and gas to fertilizer Renewable energy • Targeting 90% electricity from renewable source • 246,000 ha of forests for carbon credit potential • Recent agreement with US/UK based company funded by leading UK PE firm to produce biodiesel by planting 10,000 ha of Jatropha plants ($35M investment in 2 years) to address 15-20% of domestic diesel demand Source: RDB, Ministry of Finance 10

11. Investment opportunities in Energy Target: From 85 MW to 1000 MW • Methane gas extraction Up to 300 MW • Hydro-power generation Up to 295 MW including over 300 micro-hydro sites • Peat potential Up to 100 MW • Geothermal Up to 300 MW • Potential also in: • Solar energy • Wind energy • Bio-mass energy • Bio-diesel

12. Sector profile: TourismTourism sector booming, but significant opportunities remain What is unique about tourism in Rwanda Visitor numbers have been booming Visitors by purpose • Tourism receipts are expected to grow at a compound annual growth rate of 9% until 2012 Transit/Other 16% Business 49% Leisure 35% Tourist expenditure by purpose of visit • Unique assets: Offers tourists a one of a kind journey – home to one third of the world’s remaining Mountain Gorillas, one third of Africa’s bird species, several species of primates, volcanoes, game reserve, resorts on Lake Kivu, graceful dancers, and artistic crafts • Safe and easy to get around with short distances to diverse destinations: All major attractions are located along a circuit within 1-5 hour drive from the capital, Kigali. In a short vacation, a tourist can reach volcanoes, rainforests, savannah, islands, lakes and Kigali • Growing Conference Tourism: Potential to be the conference tourism hub of East Africa once Kigali Convention Centre is operational in 2012 • A base to visit East African destinations: Located in the heart of Central and East Africa with easy access to bordering countries of Uganda, Tanzania, Burundi and Democratic Republic of Congo as well as to Kenya , Rwanda is an ideal location for travel within the region Visiting friends/family Business Leisure Transit/Others • The average spending by a visitor is USD 200 a day and average length of stay is one week • Attracted interest and investment of reputable brands such as the Marriott, Radisson, Dubai and Serena Hotels • There are ~200 hotels and ~4500 hotel rooms in Rwanda For the upper range, average occupancy rate is 70%, with foreigners accounting for 97% of bed nights sold Source: ORTPN, KPS, RDB

13. Investment opportunities in Tourism • Hotels in Kigali and other major cities • Construction and development of Eco lodges in the Nyungwe Forest and Akagera park • b) Establishment and promotion of zoological and botanical gardens • c) Creation of theme parks • d) Incorporation of a company that deals in sea-planes • e) Construction of a cultural centre and a Hotel to provide accommodation to tourists visiting the Kings palace in Nyanza • f) Development of boating and water sports on lakes Kivu, Ihema, Muhazi • g) Development of Tourism sites and activities around the Hotsprings in the southern province • Tourism and Hospitality training schools • Financial partner for Kigali convention centre

14. Sector profile: ICTInformation and Communications Technology (ICT) – Key priority for 2020 Overview of ICT ICT in Rwanda Today • MTN Rwanda and TiGO are the two major telecom providers of internet, fixed/mobile telephony. Today there are over 3.6 million mobile telephony subscribers, representing 36% penetration. The internet user rate has grown 8900% since 2008. • The ICT private sector is growing, especially in mobile applications, networking and software development, with an increasing number of Rwandan companies producing for the local market as well as exporting products and services to Burundi and Eastern DRC • Rwanda is investing USD 24 million in regional communication infrastructure to secure connectivity to the global network (linking to the submarine cable on the Kenya East Coast) • The Government of Rwanda is investing heavily in ICT skills development and has partnered with Carnegie Mellon University to establish a Center for Excellence that should greatly increase ICT skills, courses begin January 2012. • Attracted ~USD 500 million in investment over the last three years by both private and public sector • The government has invested in developing ICT infrastructure to enable service delivery: • a 2,500km optic fiber throughout the country, through all 30 districts and with 9 regional links to neighboring countries • A state-of-the-art Tier 3 Internet Data Center • Wireless Broadband in Kigali, to be extended to all major towns • ICT in Rwanda currently encompasses: • Mobile and Fixed telephony, VoIP • DSL, VSAT, ISDN, GPRS, Broadband Internet • Software development, hardware assembly and repair. Source: RDB

15. Investment opportunities in ICT • E-Waste management (recycling and disposal) • Business Process Outsourcing • Technical Training institutes for specialized courses. • Software development: Mobile applications, innovative e-payment solutions • Internet Data Centre: Computer Security management & Disaster recovery planning facilities • World class Technology park • SMART energy grid development • Access Network/Last Mile connectivity (Fiber-To-The-Home, Curb etc.)

16. Sector profile: Real estate & constructionGrowth creating boom in demand for commercial and residential real estate development Construction is booming Residential real estate • In the first half of 2010 turnover in construction activity grew by 28.7% from USD 64m to USD 83m compared to the first half of 2009 • From 2003-2008, investment in the construction sector grew from USD 100 million to USD 350 million. In 2008, revenues from the general construction sector increased by 51% driven by: • Population growth of 2.8% combined with urban growth currently at 4% per annum • Growth of the middle class • Diaspora returning to Rwanda • As a result, there is also a shortage in construction material. • Rwanda imported USD 64.6 million of construction materials in 2007 and USD 140 million in 2008 • This includes 100% of steel and a majority of other construction materials • GoR projects that by 2020 approximately 30% of the population will live in urban areas. To date, only about 5% of residents in Kigali own modern-style houses • In Kigali alone, demand for housing is 8,000- 10,000 units per annum. The combined demand for housing countrywide is estimated to be ~25,000 units per annum Commercial real estate • The recent increase in foreign investments has created a shortage of upper end office space with fully equipped telecommunications, utilities, and power. From 2003 to 2006 rent on these buildings increased between 50-200% Source: RDB

17. Investment opportunities in real estate and construction • Residential houses for low and middle-income class, • A youth sport centre • Office Blocks in Kigali City • A real estate agency • Brick & Tile making factory • Manufacturing of construction finishing materials • Estate development-high income. • Commercial complexes and shopping areas • Development of entertainment centres • Training and certification of key services: Architects, engineers, plumbers

18. Sector profile: Financial servicesThe banking sector remains relatively underpenetrated Overview Key players • ~ USD 200 million of equity capital supporting ~USD 1 billion in total assets • Estimated 80% of the population of Rwanda is still not in the formal financial system • Consolidated balance sheet of the 8 major commercial banks grew by 5.5% in the 2nd Quarter 2010 • The annualized return on average equity • increased from 6.4 % as at 30 June 2009 to 10.3% as at 30 June 2010 • Policy, strategy and incentives are in place to develop capital markets • The banking sector is comprised of eight commercial banks, one primary microfinance bank, one discount house, one development bank and one mortgage bank • There are 96 microfinance institutions of which 83 are Savings and Credit Cooperatives (SACCOs) while 13 are private or public limited companies • The 3 largest local banks are: • Banque de Kigali • BPR (65% cooperative members, 35% Rabobank) • BCR (80% Actis, 20% GoR) • Ecobank, Access Bank and KCB are among the large international banks with a presence in Rwanda Interest rates in line with the region Source: RDB, Ministry of Finance

19. Investment opportunities in the Financial sector • Commercial bank products and services particularly in rural areas, • Competitive loan facilities • Agricultural products/services financing • Development banks especially to finance SMEs • Microfinance opportunities • Mortgage financing • Investment banking services • Training of financial sector professionals • Insurance services especially re-insurance • Equity and bonds purchases at Rwanda's capital market

20. Sector profile: MiningUnexploited opportunities in ores, processing and diversification abound Mineral exports have room for growth Work is being done to develop the sector • A national mining survey is being conducted to identify mineral deposits • A strong, investor friendly legal and policy framework has been put in place Opportunities in diversification and processing • Rwanda’s main mineral exports are ores processed to extract tin, coltan and tungsten • Only 25% of the estimated potential output is exploited • Significant opportunity to increase productivity through industrial mining • Significant opportunities in processing ores • Diversification opportunities in quarries (for construction materials) and precious stones (gold, diamond, beryl, topaz, rubies, sapphires, gamets and other unexploited deposits have been identified • There are major peat deposits in the southwest of Rwanda which are only just being exploited and could be used for electricity generation or processed as an alternative to fire wood Share of production volume by source, 2007 Source: MINIRENA, RDB

21. Investment opportunities in Mining • Exploration opportunities • Mechanized mining • Cement Manufacture for local consumption and for Export • Production of Tin • Production of Gold and Sapphires • Production of Columbium and Tantalum for Export • Plant for Dimension Stones • Quarry Development

22. General manufacturing Investment opportunities in general manufacturing • Wood and other related products • Paper and other related products • Publishing, printing and reproduction of recorded media • Chemical products • Rubber and plastic products • Fabricated metal products • Pharmaceutical products • Packaging materials • Cooking oil production • Agro-processed products • Production of construction materials • Zinc oxide factory • Leather goods products

23. Education Sector Investment opportunities • Establishment of primary schools in rural areas • Development of technical schools (ETO) • Establishment of a tourism institute • Establishment of a polytechnic institute • Establishment of a school for arts • School for the handicapped children • Bookshop • Laboratory Equipment • International school • Telecommunication Computer Studies

24. Health Sector Investment opportunities • Health facilities such as clinics and health posts • Pharmaceutical plant • Distribution network of pharmaceutical products • Training of health professionals

25. Summary of selected potential investment opportunities Source: GoR 1 Investment currently required and not total cost of the project

26. Significant potential investment opportunities Source: GoR

27. Significant potential investment opportunities Source: GoR

28. Significant potential investment opportunities Source: GoR

29. Significant potential investment opportunities Source: GoR

30. Significant potential investment opportunities Source: GoR

31. Significant potential investment opportunities Source: GoR

32. Significant potential investment opportunities Source: GoR

33. Significant potential investment opportunities Sector: Source: GoR

34. Key contacts • www.rdb.rw • For further information please contact Investment Promotion Department in the Rwanda Development Board • ipd@rdb.rw • Tel: + 250 788 30 61 91