Page 1

Rwanda can absorb a major long term foreign investment? The answer is yes: SWOT analysis doing business in Rwanda Preliminary program proposal for EII investment in Rwanda.

August 2013 FC

Version 2.4

Methane extraction lake KIVU for power plants (50 MWe). A high priority for Rwanda because the amount of methane and CO2 in the lake is like a bomb, 60 billion cube meters. Lake KIVU (max. 480 m deep) is one of the 3 exploding lakes in the world. The natural dynamics of Lake Kivu are those of periodic limnic eruption, with an unknown natural irregular periodicity from gas build-up, thought to be roughly every 1 to 2 thousand years.

We invite co-investors to join our projects for maximal 30% of the shares. It is important to understand that we subscribe the Corporate Social Responsibility (guidelines), that we will

strengthening the local private sector (they will manage the business after some time), that creating jobs is a high priority, and that we will finance a side program for social-development and welfare. Part A: SWOT analysis Rwanda Part B: Preliminary selection of projects (NOT IN THIS DOCUMENT) Cluster energy Cluster housing & construction Cluster agro-food & livestock Primary targets and milestones Vision on success Part A Contents Management Summary & Conclusions Introduction 1. Scope 2. Missions 3. Current situation 3.1 General 3.1.a. Political 3.1.b. Relationship to neighboring countries 3.1.c. Employment 3.1.d. Population 3.1.e. Financial system 3.1.f. Legal system 3.1.g. Economic stability

Page 2 6 7 10 11 12 12 16 17 18 21 23 24 1


3.1.h. Social stability 3.1.i. Taxes and tax system 3.1.j. Doing business 3.2. Geographical 3.2.a. General 3.2.b. Infrastructure 3.2.c. Natural resources 3.2.d. (Renewable) Energy & sector 3.2.e. Climate 3.3 Agro-Food sector 3.4 Livestock sector 3.5 Housing & construction sector / manufactoring 4. SWOT conclusions

27 28 28 31 30 32 34 35 37 39 45 50 52

Attachments 123456-

Food security & donor projects Energy Economy Agriculture Telecom Social security & investments

References List of Abbreviations

55 56 57 64 76 77 78 81

Management Summary & Conclusions The SWOT analysis as described in this document and based on detailed research shows Rwanda as a country of opportunities. It is Rwandans advertising statement and it is true. It is politically stable, has good laws and reliable public institutions. Rwanda is one of the top 10 fastest growing economies in the world with inflation under control. The country has a well functioning government with a clear and coherent vision of where it wants to take Rwanda. The focus is on economic- and social development. GoR invest large amounts of money in infrastructure, education, healthcare, institutions and facilitates the private sector and FDI with all kind of (tax) incentives. It is a safe, clean country with low corruption. However, there is a long way to go before Rwanda has food security under control and has a strong middle class society with an income of more than $1,500 per capita. The country is overpopulated with limited natural resources. As a landlocked country it developed a productive relationship with the neighbor countries in Eastern-Africa. Together with Eastern DRC it is a market of 160 M people. That opens great perspectives and opportunities but also competition. Summarizing the results of this research and detailed SWOT analyses in an overall SWOT below: Strong

2


-

-

-

Rwanda is the fifth-best destination for investment in the World (According the 2013 Profitability Index by the Foreign Policy Magazine) Perfect climate for FDI under strong and stable government, modern commonwealth based laws and good institutions. Peace and security. Low corruption. An active and powerful National Ombudsman GoR objectives are strongly driven by economic and social development Proven positive track-record in the realization of development programs Rwanda’s Governance Scorecard is very positive in the top 25% worldwide Growths of off-farm employment and booming entrepreneurship Basic education enrollment rate was 96% in 2011 and more than 10,000 people graduate each year in areas such as ICT, Finance, etc. Many (tax and import/export) incentives for FDI and membership of EAC with 125 M people, Comesa, with low to non duty fees 8.8 % average GDP growth since 2005 and rather low inflation Second best global reformer in World Bank Doing Business Report 2013 Only 6 hours to register a new business. One Stop Centre for trading & sector specific certifications and licenses, environment clearance and investment certificates, work permits and visas, tax exemption and tax payment, land and construction permit, utilities (water, electricity), notary services, etc. Safe and peaceful for expatriates Rwanda has emerged as the least corrupt country on the African continent and among the least corrupt nations in the world, according to the 2013 Transparency International Global Corruption Barometer

-

-

High public health expenditure with very good results A well developing financial sector with 12 Commercial Banks in Rwanda, 2 micro Finance banks, 66 Micro Finance institutions and 302 registered SACCOs and a stock exchange as of Dec 2012 There is a reasonable pension sheme and a medical insurance sheme Rwanda was the country with the fastest broadband Internet speed in Africa, according to latest statistics from Ookla’s NetIndex in 2012. All over the country wireless internet and mobile access

Weak -

-

Average income of $644 / year is still rather low. 80% of the populations earn less than $6,200 /year. 60% has $160 / month or less. 25% is extreme poor and 16% is below borderline for food Rwanda has 416 persons / sq.km and is by far the most populous country in Africa. Availability of land is a limiting factor Low skills & productivity (yields in agriculture) and no certified quality Bad post-harvest management leading to an estimate loss of 20%-25% of production. Lack of energy what causes high costs. Limited capacity of the grid. Small size of private companies and a small manufacturing industry causes many imports Heavy requirements for bank loans (16%-18%) 3


-

High cost of communication due to lack of ICT professionals and high prices for electric power Insufficient logistics system with a lack of trucks and an auction system for cargo Knowledge in adequate and innovative production management and a lack of supportive ICT applications A rather centralized policy of agricultural development

Opportunities -

-

-

Huge market available in Rwanda (now dependent on many imports), the EAC and Eastern DRC (in total 160 M people) and for some products good opportunities for export to Europe, USA, and other countries Rich soil and good climate and water resources. Rich in biodiversity The horticulture sector in Rwanda has great potential, given the rich soil and the suitable climate. A lot of ‘low hanging fruit’. Very positive reports about the business climate and investment opportunities from World Bank, IFC, UNCTAD and other organizations. A huge demand in housing due to migration to cities and to a growing middle class. For low cost & affordable housing there are many opportunities in Rwanda if we can select the right innovative technologies for solid, sustainable and low cost construction Many local private parties willing to collaborate with FDI and to expand A Greenfield for sustainable and innovative solutions with full support of GoR

Threats -

Small, land locked with high costs of transport, under-endowed with natural resources Negative image since genocide, violence in East DRC, one dominant political party Hesitation at the Rwandan government because we, with the EII investment approach, work differently than they are used to Political stability in Kenya, Uganda and Tanzania How to get confidence of thousands of farmers in many cooperatives? Large scale agricultural production is only possible in cooperation with the cooperatives The mindset of many local private entrepreneurs is growing the business in competition, not in cooperation

SWOT confrontation Developing jobs is a high priority and can be done by investments in agriculture, energy and housing, using the benefits of incentives, the availability of labor, local institutions in education, training and research. Low hanging fruit in investments in the growth of productivity in yields / ha., irrigation and cultivation of land, post-harvest treatment & storage, packaging, logistics, greenhouses, supportive ICT applications, and management development. Bring small business in the same sector together as business units under holdings. Create robustness and synergy. Examples are fruit-& crop processing, livestock industry (poultry, fish farming),

4


cooperatives scaling in crop. Strengthening of the private sector. Contribute in a positive way to social stability and welfare. Grab the opportunities like a huge demand for good quality products in Rwanda and EAC, a booming local entrepreneurship, by showing that it can be done, thus turn threats including the negative image in parts of the Western market, and the suspicion of local entrepreneurs and farmers. Make Rwanda more independent on imports. We come to the conclusion that we can invest about $ 2 billion in feasible and do-able projects within the requirements of the financing platform. Specific projects Energy - Electric power, objective 100 MWe Methane gas-, Biomass energy, and solar PV park - Charcoal - Ashes for fertilizer - Solar for houses and farms Upgrade of the grid (option) Sustainable recycling waste & energy processing plant 400 ton/day Housing - Green neighborhood, 10,000 houses - 2,000 affordable and low cost houses in Tier-2 cities and rural area - Housing association, for rent-to-own - Strengthening the construction industry with skills and equipment - New factories for bricks, concrete, ecohardboards, steel frame profiles, gazbeton, assemblage Tourist industry - Resort Eagle-0n-the-Lake - Eco-Resort Mbabara Island Livestock - Triple the Poultry industry - Triple the Fish farming production - Feed factory

Agriculture - Irrigation & cultivation of land 10,000 ha for maize, soybeans and other crop plus horticulture and greenhouses - Production & export of Silk - Post-harvest treatment & storage - Develop content / curricula and

Contribution to Economic development Poverty reduction by creating jobs Lower the price of electric power Connectivity for industry and households Reduction of risk methane explosion lake KIVU Green energy development Green waste processing Production of energy High qualified jobs Accessible housing for more people by introducing innovative technology Better quality of housing Exposure for sustainability Poverty reduction by creating jobs Less imports of intermediate materials Vocational training development Develop off-farm jobs Strengthening the private construction sector Attractiveness Rwanda Currency Off-farm jobs Food security and quality Poverty reduction by creating jobs Innovative technology Management skills Powering up the fisheries sector Vocational training development Decrease imports Land availability Food security and quality standards Poverty reduction by creating jobs High added value income from exports Increasing income of farmers Increasing yields / ha & develop knowledge Decrease the losses of crop & fruit in the 5


-

strengthen training institutions Fertilizer assemblage & distribution Seeds

Food- & crop processing - Bean processing - Fruit processing - Potato processing Logistics & ICT - Logistics & distribution with cool stores - Factory for packaging - Factory for canning - Applications for auctions, administration & communication (AMIS, and online exchange platform, “e-Soko”). The Kigali Techno pole? - Fresh Wholesale Food Market

distribution chain Enlarge the impact of Rwanda in EAC Decrease imports Community development Add value to fruit & crop production and develop export Poverty reduction by creating off-farm jobs Contribute to efficiency in the distribution and price forming chain Facilitate access to the market for farmers Contribute making Rwanda an ICT hub in the region Develop ICT skills and off-farm jobs

Part A

Introduction This document is a preliminary program proposal for Erasmus Investments International (EII) in Rwanda. Part A is a SWOT analysis Rwanda showing the benefits and risks making a major investment in Rwanda in the priority sectors energy, housing and the agro food complex. This investment will really make a difference for the country and can be executed within the requirements of EII. A solid program of projects strengthening the private sector and helping GoR to focus on governmental supporting and facilitating activities and investments. Part B is a first summary of potential promising projects with an investigation of feasibility, sustainability, and impact on employability. Preliminary research on foreign and local private parties involved in the realization, within the requirements of EII, and the results of meetings with potential EPC’s. At the end of this document some attachments, references and a list of abbreviations.

6


Average income $644 / year, GDP $7,103 billion (World Bank, 2012, GoR 2012). EU is the biggest investor in Africa, followed by China, USA, and Asia. FDI is $ 80 B in Africa in 2012. Africa with 1 B people has a bigger middle class than India with also 1 B people. DRC is larger than Europe. Africa is 3 times larger than the USA. The ranking, according to the profitability index by Foreign Policy Magazine indicates that Rwanda is likely to pull in more investors into the country. The magazine ranked the country on the basis of asset growth, preservation of value and ease of capital repatriation. Between 2007 and 2012, Africa recorded 12% growth in FDI projects, with FDI in sub-Saharan Africa growing at an even faster 22%, yet Ernst & Young found that companies operating outside of Africa continue to rank it as the least attractive region for investment. Of the 50 economies globally which made the greatest business reforms, 19 were from Africa, with Rwanda having made the greatest regulatory improvements (E&Y, 2013). FDI in Rwanda 2011 was $ 356.7 million. Biggest part of this money went into the sectors of finance and insurance (23.1%); ICT (20.7%); manufacturing (19.5%), and agriculture (16.3%). Rwanda is the fifth-best destination for investment in the world, according the 2013 Baseline Profitability Index (out of 102 countries). The ranking is topped by Hong Kong, with Botswana in second, and Ghana (10th), as the only other African country in the Top 10. Uganda (15) and Kenya (67) are the only EAC countries on the list. Donor assistants are 26% of GDP.

7


Rwanda has 416 persons / sq.km and is by far the most populous country in Africa. 1. Scope Rwanda is a country of opportunities, ready to absorb a major investment from EII through the Humanitarian channel and within the requirements of the financing platform. Top priorities are projects strengthening the private sector in the clusters Energy, Housing & Construction, and the Agro Food complex. These investments are safe, feasible (positive business case and perspectives) and do-able (legal structure conform EII and private sector in dominant position) and will make a huge difference for the country in the development into a middle class socio-economic society. We are selecting private sector parties to be involved in the projects, being able to take over management and expand the activities in the future. These parties should Show (potential) management power and leadership. Being able to create added value and future growth. Build excellent and trusted relationships with stakeholders We are after as much as possible synergy between the projects within the 3 clusters: Energy, Housing, Agro Food. (Example: cultivation of agriculture areas plus creating small communities including affordable housing, schools. Or, a power-plant plus a high-tech greenhouse using the heat and the CO2 of the plant) Procedure: after a positive assessment of the SWOT analysis Rwanda and the first selection of viable projects by EII and the investment platform, we will continue to project selection and detailing of business cases, selection of local private parties, design of legal structures and select partners in ECP. The aim is to start executing the investment program early 2014 and to realize the program within 3 – 4 years. For energy we are focusing on the following projects:

8


Methane extraction lake KIVU for power plants (50 MWe). A high priority for Rwanda because the amount of methane and CO2 in the lake is like a bomb, 60 billion cube meters. Lake KIVU (max. 480 m deep) is one of the 3 exploding lakes in the world. The natural dynamics of Lake Kivu are those of periodic limnic eruption, with an unknown natural irregular periodicity from gas build-up, thought to be roughly every 1 to 2 thousand years.

The "natural" way the CO2 and CH4 gets out would involve as many as 2 M deaths if it happened today. (In total the CH4 energy is 100 Gigawatt. For extraction about 700 MW and Rwanda’s share is 350 MW). At present, the CH4 concentration is the main danger because the CH4 saturation level is at a lower dept than the CO2 saturation level. (Except in Kabuno Bay, which now is a CO2 bomb waiting to explode). We selected a foreign party with the right certified technology for the extraction of methane in lake KIVU. Picture: the installation from Kivuwatt & Contour Global with a different technology, compared with the technology from Kivugas & Hydragas.

We can process dry and wet peat. After extraction of peat in some areas land for farmers becomes available, and in other areas, too wet for agriculture, we might crow papyrus. Solar PV park 16 MWe 9


For housing we are preparing the projects: -

-

Construction, delivery and exploitation of Kinyinya neighborhood near Kigali, including infrastructure. About 8500 dwelling units and 400 other buildings. 80% for rent in a new housing association. A pilot green neighborhood Construction of 5000 low cost and affordable houses in the Eastern Province Construction of resorts (Tourist Industry) Eagle-on-the-Lake, East from Kigali and Mbabara Island in lake KIVU In addition we must invest in the development in skills and capacity of the construction industry and into some factories related to the sector. We will introduce innovative construction solutions for Rwanda.

Kinyinya neighborhood simulation North-West of Kigali City Center. In addition we investigate the feasibility of a sustainable recycling waste processing plant near the City of Kigali, 400 ton / day. For agriculture we are preparing projects (among others, not selected so far) -

Irrigation and cultivation of 3200 ha of land for maize and other crop Cultivation of new land for Rice (up to 3000 ha) Starting the production of Silk for export Scaling the production of essential oils for export The construction and exploitation of low-middle, and high tech greenhouses Investments in the processing of fruit and crop Investment in post-harvest treatment and storage including logistics Investment is factory for packaging Investment in factory for canning Investment in supportive logistics and ICT

For livestock we are preparing projects like -

Upgrading and scaling the poultry industry making Rwanda independent on imports Slaughterhouses for chicken and for cattle Fish farming in cages and in land based systems (tanks)

10


Some specific opportunities in ICT, and education & vocational training including project opportunities with INES and ISEA, KIST, KIM, and other institutions.

2. Missions Mission GoR is written in its Vision 2020 (development 2000 – 2020) The Vision 2020 is a reflection of our aspiration and determination as Rwandans, to construct a united, democratic and inclusive Rwandan identity, after so many years of authoritarian and exclusivist dispensation. We aim, through this Vision, to transform our country into a middle - income nation in which Rwandans are healthier, educated and generally more prosperous. The Rwanda we seek is one that is united and competitive both regionally and globally. To achieve this, the Vision 2020 identifies six interwoven pillars, including good governance and efficient State, skilled human capital, vibrant private sector, world -class physical infrastructure and modern agriculture and livestock, all geared towards national, regional and global markets. This Vision is a result of a national consultative process conducted between 1997 and 2000. These discussions and debates involved Rwandans from all walks of life, including leadership of all levels in the business community, government, academia and civil society. It is important to emphasize the point that this Vision is not only for government. Vision 2020 is a shared purpose for all Rwandans. We need to constantly remind ourselves how our work – in our individual capacities, communities, business and public institutions – contributes towards realizing this Vision. Like all achieving societies whose success is generally inspired by a shared purpose, our Vision 2020 constitutes a bond that holds Rwandans as a people determined to build a better future. I am certain that Vision 2020 will inspire us to achieve our goals, and that our vision is clearly and powerfully stated – thus setting in motion the vital energy and the sense of urgency needed for its realization. I thank all Rwandans and Friends of Rwanda who will play their part to making our Vision realizable. Paul KAGAME, President of the Republic of Rwanda Mission EII Erasmus Investments International (EII) has the Mission: “To assist business expansion and development of commercial, humanitarian, charitable and non-profit (public interest) projects, viable and sustainable projects that promote economic growth and long term employment, or that otherwise provide aid to the society or improve quality of life.” Mission RCF Our objective is the promotion of business and investment opportunities in Rwanda and assist and guide companies and persons who have an interest in Rwanda or want to invest in Rwanda. RCF took the initiative to create an overarching program for relevant and related projects into three clusters: Energy, Housing & Construction, and Agro-Horticulture & food processing. After selection of the most feasible and necessary projects, this program adds up to an investment of USD $ 1.5 – over $2 Billion. Realizing this initiative will make a huge difference for Rwanda, adding a tremendous value for sustainable growth in the long run. It will deliver new exposure for the country, attracting many new investors and strengthening local entrepreneurship and employability. 11


The Rwandan government will give full support to this initiative, doing all what is possible to support preparation of the investment proposal. The (second) Economic Development and Poverty Reduction Strategy (May 2013) Thematic Area Priorities for EDPRS 2 (2013 – 2018)

We are focusing on: Horticulture, Construction, Tourism, Food processing, Logistic services, ICT, ‘Green economy’ initiatives, and Greenfield investments. We will contribute to peace and welfare. More information in attachment – 3 3. Current situation 1) General situation Rwanda Rwanda has a bewildering history…Every possible tension which can arise between communities has occurred in this country. Interference from Germany (1899), Belgium (1919 and 1933) and France in the past was disastrous in every respect. It was Belgium who introduced the administration of ethnic differences between Tutsi and Hutu. Rwanda has been independent again since 1-st of July 1962. The genocide in 1994 was a culmination of turbulent events and only made possible due to the passivity of the UN and the west. Rwanda is a small country (3/5 the size of the Netherlands), heavily populated with too high a rate of population growth and too few natural mineral resources. In 1994 a million people was killed ,the economy shrunk by 50%, the inflation was 64%, and per capita income fell to $ 143 / year. Countries population declined to 5.1 million. In addition to the 2 million refugees abroad, there were 900,000 displaced persons within Rwanda and almost half of Rwandan children had lost at least one parent. Therefore, a positive future can only be built by looking forward, working hard, attracting investors and utilizing the talents within the population. By creating economic prosperity to prompt a decline in population growth. By making good use of this prosperity, mainly technological and economical services, and becoming an innovative source of information for Africa. All within a stable political climate. 12


According to the results of Vision 2020 (planning 2000 – 2020) so far, all of this is possible. Possible, considering the leadership, the mentality, eagerness to learn, precision, enthusiasm and political stimuli for entrepreneurship. Possible, as investments are being made into the latest technology and infrastructure, health, education, trade, services, innovative industry with equal opportunities for all. Possible, as active investments are being attracted and the country has accommodated for the creation and support of entrepreneurship. Rwanda suffers from a number of quite severe disadvantages. Land locked, under-endowed with natural resources other than land and climate, and with an exceptional unfavorable person-land ratio. Compared with East-African neighbors other than Burundi, Rwanda has a history as a state which on balance must be counted as a rather special kind of advantage. Rwanda has a continuous history, one common language and national identity. Three sources of primary accumulation were of considerable importance re-building the country after 1994, based on a strong vision in making the future. 1. The wartime contributions of RPF (the dominant political party) which remained unspent at the end of the war 2. The excess profits from unregulated and untaxed mineral trading out of DRC during the two Congo wars 3. The monopoly profits earned in industries awarded protection in the form of selectively allocated licenses and subsidies After 2000 when Paul Kagame took over presidency from Bizimunga, controls of these money flows has been rigorously centralized through a new created company, Tri-Stars Investments. He used the funds initially to undertake or set in activities meeting elementary socio-economic needs which were critical to political stabilization. All based on the new Vision 2000 (master plan 2000 – 2020). The vehicles today for critical investments (active industrial politics) are the ‘private’ companies: -

-

Crystal Ventures (ex Tri-Star/CVL Group, 2009) with all share from Bank of Rwanda and Rwandan business people. Active in civil works, concrete products & construction, telecom, agriculture and fruit processing, aviation, security, manufacturing, and private investments. Horizon-Group (owned by the army) is active in logistics, construction, essential oils, and in several Joint Ventures. Rwanda Investment Group (RIG, 2006) shares from local investors and from the diaspora, is active in peat mining, cement industry, methane / energy. NGALI Holdings (2010) shares from Bank of Rwanda. Areas of investments & research in ICT, communication, energy, transport, industry, agro-processing. Additional information in attachment – 3.

Rather new instruments for in organizing Rwanda’s economic growth are the Private Sector Federation (PSF, to be compared with a Chamber of Commerce) and the Rwanda Development Board (RDB) which leads the government’s investment climate efforts. After 2000 the new sources of income was help funds from developing countries and NGO’s, donations and transfers from the Diaspora. In total still 25% of the GDP.

13


Summarizing 2013

Challenges & opportunities are: (EDPRS II, May 2013)

3.1.a Political The Parliament Every political party that gets 5 per cent of the national vote is entitled to a seat in parliament. The Chamber of Deputies (80 Seats): 53 members are elected by direct popular vote using the party-list proportional representation system, 24 women are elected by electoral colleges from each province and the city of Kigali, 2 members are elected by the National Youth Council, and 1 member is elected by the Federation of the Associations of the Disabled; members serve 5-year terms. The Senate (26 Seats): 12 members are indirectly elected by provincial and sectoral councils, representing each province and the city of Kigali, 8 members are appointed by the president, 4 are appointed by the Forum of Political Organizations, and 2 members represent the universities and institutions of higher learning; members serve 8-year terms. Coalition 2010: Rwandan Patriotic Front-led Coalition. Member parties include the Rwandan Patriotic Front (FPR), Centrist Democratic Party (PDC), Ideal Democratic Party (PDI), Rwandan Socialist Party (PSR), and the Democratic Union of the Rwandan People (UDPR). 14


Rwandan Patriotic Front. RPF is most dominant with 36 seats; Christian Democratic Party. 1 seat; Ideal Democratic Party. 1 seat; Centris Democratic Party. 1 seat; Prosperity and Progress Party. 1 seat; Rwandan Socialist Party.1 seat; Democratic Union of the Rwandan People. 1 seat; Social Democratic Party. PSD. 7 seats; Liberal Party. PL. 4 seats; Party for Progress and Concord. 1 seat. The August 2010 Presidential Election gave President P. Kagame 93.08% of the votes. The Rwanda system since 2000 (source: Developmental Patrimonialism, paper 16, March 2011, Booth, D. and Golooba-Mutabi, p. 8). After the election of Paul Kagame.

15


(End of quote) Rwanda National Ombudsman: “The National Anti-corruption Policy is set within the overall policy framework of Zero Tolerance and national planning and seeks to support the implementation of government policies in the area of good governance�. The primary anti-corruption agency is the Office of the Ombudsman which is constitutionally independent and carries a wide mandate in the fight against corruption. A number of other institutions with core functions closely related to anticorruption action but hold mandates where corruption is but one element. These include the National Public Prosecution Authority, the Rwanda National Police, the Office of the Auditor General of State Finances, Rwanda Public Procurement Authority. In order to create a framework of exchange of information on corruption, to avoid collusion and to set collective efforts among institutions on fighting against corruption, the National Anti Corruption Advisory Council has been put in place. Some World bank indicators:

16


3.1.b. Relationship to neighboring countries Rwanda joined the East African Community (EAC) in 2007 with 132 M consumers in an open market. Not included DRC’s 30 M population. Mombasa, Kenya, is 1400 km, DarEs-Salaam, Tanzania is 1600 km, Matadi, Congo is 2200 km and no option because there is no infrastructure. Kigali – Nairobi is 1200 km. Kigali – Kampala is 725 km. Therefore, logistics is a challenge in time and costs. The East African Community (EAC, 1999) is the regional intergovernmental organization of the Republics of Burundi, Kenya, Rwanda, the United Republic of Tanzania, and the Republic of Uganda, with its headquarters in Arusha, Tanzania. Mission and Vision The Vision of EAC is a prosperous, competitive, secure, stable and politically united East Africa; and the Mission is to widen and deepen Economic, Political, Social and Culture integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investments. The EAC's core values are: Professionalism, Accountability, Transparency, Teamwork, Unity in Diversity, and Allegiance to EAC ideals. Aims and Objectives The EAC aims at widening and deepening co-operation among the Partner States in, among others, political, economic and social fields for their mutual benefit. To this extent the EAC countries established a Customs Union in 2005 and a Common Market in 2010. The next phase of the integration will see the bloc enter into a Monetary Union and ultimately become a Political Federation of the East African States. Current status The regional integration process is at a high pitch at the moment as reflected by the encouraging progress of the East African Customs Union and the establishment in 2010 of the Common Market. The negotiations for the East African Monetary Union, which commenced in 2011, and fast tracking the process towards East African Federation all underscore the serious determination of the East African leadership and citizens to construct a powerful and sustainable East African economic and political bloc.

17


COMESA The history of COMESA began in December 1994 when it was formed to replace the former Preferential Trade Area (PTA) which had existed from the earlier days of 1981. COMESA was established as an organization of free independent sovereign states which have agreed to co-operate in developing their natural and human resources for the good of all their people' and as such it has a wide-ranging series of objectives which necessarily include in its priorities the promotion of peace and security in the region. COMESA’s Vision is to “be a fully integrated, internationally competitive regional economic community with high standards of living for its entire people ready to merge into an African Economic Community” Its Mission to “Endeavour to achieve sustainable economic and social progress in all Member States through increased co-operation and integration in all fields of development particularly in trade, customs and monetary affairs, transport, communication and information, technology, industry and energy, gender, agriculture, environment and natural resources”, the Secretariat was guided to develop its specific Mission Statement as follows: “To provide excellent technical services to COMESA in order to facilitate the region’s sustained development through economic integration”. COMESA's current strategy can thus be summed up in the phrase 'economic prosperity through regional integration'. With its 19 member states, population of 390 million and annual import bill of around US$32 billion with an export bill of US$ 82 billion COMESA forms a major market place for both internal and external trading. Its area is impressive on the map of the African Continent covering a geographical area of 12 Million (sq. km). Its achievements to date have been significant. Cross border business with EAC Constraints: Rwanda is characterized by a weak export structure due to inconsistence quality of products originating from week industrial sector using old technology, a poor infrastructure in rural areas and high transport costs, shortage of energy power, small size of companies, heavy requirements for bank loans. Opportunities are: good and facilitating governance and institutions, peace and security, low corruption, legal task force, tax incentives, good labor, fertile soil, good climate, more than enough water bodies, many cooperatives, one-stop-border-posts, and a good international airport with cool store. Membership of Rwanda with EAC, Comesa, WTO, ECCAS, CEPGL, AU, SADC and AGOA. Also an active Rwanda Investment and Export Promotion Agency (RIEPA), Private Sector Federation (PSF), and the Rwanda Bureau of Standards (RBS). More information in attachment – 3

3.1.c. Employment 50% is working on a small area of land for family food, in average 0.59 ha. Another 25% is working for farmers on the land. Growing of cities means other jobs. With a population of 60% under 26 years old, many are trying to start their own business. But in 2011 the formal private sector employed just 4% of the countries labor force and only 0.5% of the companies got more than 30 employees. In 2011 there were 1.4 M off-farm jobs. Target is 200,000 new off-farm jobs per year with 1.8 M offfarm jobs in 2020. 18


What do Rwandans do? Overall of the working population (age above 16) 84% are in employment and 16% are not working. Farm workers make up 60% (3.5 M people) Informal workers make up 17%. 1 million people in retail or petty trade or are maids and taylors or construction workers and drivers. Most of them have not completed primary school. Workers in the formal private sector are 4% (250,000). Most of them have a higher income. Including the white collar workers like the 4000 accountants from Rwanda. Workers in the public sector is 3%. Teachers, nurses, the military and governmental officials. The largest group of people not working are students, 11% of the working age population. 667,000 are completing secondary or tertiary school. There are 215,000 inactive people, like elderly, disabled and domestic workers. 46,000 (0.8%) is long-term unemployed. Most of them have a secondary school qualification, are living in Kigali and looking for a job. The majority of new off-farm jobs are in SME’s. Over 90% of all firms in Rwanda are informal, with 13 employees. Most of the new off-farm jobs (82%) have been created in rural areas. Large firms only employ 5% of off-farm jobs. GoR is investing in Technical and Vocational Educational Training (TVET) that will provide specific skills to meet labor market demand.

3.1.d. Population Population 2012: 11.46 M people. 9.1 M people (out of 10.6 M) are living in rural areas (2010) According to the World Bank, Rwanda has the fastest rate of urbanization among African countries, with the proportion of people living in urban areas increasing nearly threefold between 1990 and 2011. Urbanization is widely associated with increased off-farm activity, which would alleviate some of the pressures on the land from rising population density. While the urbanization rate is growing, the level remains relatively low. This is a unique opportunity for Rwanda to avoid mistakes made by other middle income countries by pro actively managing the urbanization process and mitigating risks of urban sprawl, divided cities, high urban un-employment and high urban poverty.

19


60% of the population is below 25 years old. Capital and largest city: Kigali, 1,000,000 people on 1200 meters above sea level. Growing fast up to 3 M in 2020. Ethnicity/race: Hutu 84%, Tutsi 15%, Twa (Pygmoid) 1% Religion: 56,5% catholic, 26% protestant 11,1% adventist ,and 4,6% moslim(2001) Official Languages: English, French, Kinyarwanda. Households Household accessing improved drinking water 75%. With electricity 15% Household with firewood for cooking 86%, with charcoal 11% Households owning a bicycle 10%, motorcycle 0, 1%. A car (not business) 0, 1% Households with internet access from home 4%, with mobile phones 47%, with computer 1, 7%, with radio 61%, with TV 6, 5%. Housing Households in a single house 92%. Mean number of people by bedroom 2.3 Households with leaves as roofing 2.6%. With metal sheets 54%. With clay tiles 43%. Households with mud bricks as wall material 56%. With oven fired bricks 2.4%. With cement bricks 0.3% and with tree trunks with mud 37%. With tree trunks, mud and cement 6%. Households with beaten earth as a floor 81%. With cement 16% Households owning a dwelling 83%. Renting a dwelling 8%. With mortgage 0.6% Average amount spend on house construction (new or extension) $ 400 Significant gains were also recorded in non-income dimensions of poverty For low cost & affordable housing there are many opportunities in Rwanda if we can select the right innovative technologies for solid, sustainable and low cost construction. In addition to the about 25,000 DU’s / year (including real low cost 35,000 / year) in the Kigali area, the GoR has developed plans for the growth of six secondary cities: Huye, Muhanga, Musanze, Nyagatare, Rubavu and Rusizi will be developed as regional centers. About 6 M people will live in urban areas by 2020. Child mortality declined from 86 to 50 infant deaths per 1,000 live births, and maternal mortality from 750 to 476 per 100,000 live births between 2006 and 2011. Access to clean drinking water and sanitation increased in all provinces to 71% to 75% coverage respectively. Education More children attend school across the country with net enrolment for primary school reaching 96.5%, and net enrolment for girls being higher than for boys. Net enrolment for lower secondary school is still low, but gross enrolment has increased from 10% to 48.6%. However, children from 20


poorer families are far less likely to attend secondary school than the better off, though the gap is closing. Net enrolment ratio in Primary education 96%. In Secondary education 26%. Completion rate in Primary education 79%. English became the formal language in 1996.

School fees are rather high, compared with incomes (table at the right) The schooling system is very knowledge focused. Task based learning and vocational training are slowly in development. By 2010 there were 29 universities in Rwanda with over 62,000 students. Today, there are about 20 institutions of higher learning in Rwanda, seven public Universities and 14 private. Between 1963-1993, Rwandan university graduates numbered roughly 1,900; in 2012 over 35,000 students enrolled. Health

Rwanda ranks among top countries when it comes to the rate of immunization against deadly diseases, according to the Unicef’s State of the World’s Children 2013 report. 21


By June 2012: A total of 15,540 employees were deployed in the Public Health Sector: 132 specialist doctors, 509 GPs, 1793 A1 Nurses, 271 Midwives, 6,438 A2 Nurses, many other health professionals, administrative and support staff. Human resources indicators, as of June 2011: Ratio Doctor/Population: 1/16001 (target 2017: 1/10,000), Ratio Nurse/Population: 1/1291 (Target 2017: 1/1000), Ratio Pharmacist/Population: 1/30565 (Standard : 1/10,000). Malaria incidence declined by 70% from 2003. Rwanda’s 99 per cent uptake of Bacille CalmetteGuÊrin (BCG), a vaccine against Tuberculosis, in 2012 ranked it far ahead of countries such as Poland, Portugal and Nigeria with less than 90%. The country also boasts an 86 % vaccination of newborns against tetanus, beating countries such as South Africa (74 per cent) and Philippines (76 per cent). HIV is 3% and 60% of them also hace TB. In 2011-12, 2,389,146 persons were tested on HIV, and 1.1% was positive. Under 5 years severe malnutrition is 19%. Health budget for districts was $34M, at central level $105M.

3.1.e. Financial system With development assistance from the World Bank's 'Financial Sector Development Program', Rwanda took a step towards a modern payments system that could support a growing economy and the needs of its citizens. In February 2011, the National Bank of Rwanda implemented a real-time gross settlement system for high-value payments. This type of system is used in about 120 countries worldwide to enable instant, reliable, and secure time-critical banking transactions. Total Bank Assets of US$ 1.832 Billion in 2011.The growth in the banking sector witnessed an increase in profits by 42.4% to Rwf 22.8 billion 2011 from Rwf16 billion in 2010, according to the National Bank. Commercial banks and specialized banks saw a 24.5% growth in assets to Rwf1, 083.3 trillion in 2011 from Rwf869.8 billion a year before, driven mainly by the entry of Equity bank and upgrading of two big Microfinance Institutions (MFIs) to microfinance bank status. Banks in Rwanda (out of 12) National Bank of Rwanda (BNR, 1964) Rwanda Development Bank (BRD, 1967. CEO Alex Kanyankole), licensed by the National Bank of Rwanda - Owns 100% of Housing Bank of Rwanda since 2011 (Banque de l'Habitat du Rwanda) (BHR) April 2011, the total asset valuation of the bank was approximately US$122 million Bank of Kigali, 66% owned by the Government of Rwanda and 34% by the Rwanda Social Security Board. Assets 2013 was $ 356 Million. Return on assest 4.3%. Employees 944. Access Bank (The 4-th largest commercial bank in Rwanda). HQ in Nigeria Bank of Kigali. Number one bank in Rwanda. December 2012, the bank's total assets were valued at US$:511.9 million Banque Populaire du Rwanda SA (BPR, 35% RABO bank) 2010: Assets $240 M (Dec.2011) Commercial Bank of Rwanda (BCR) 2-nd bank with assets $195 M (Dec. 2011) 22


Compagnie Générale de Banque (Cogebanque) Assets $137 M (Dec. 2012) Ecobank Rwanda. Large African bank with assets $17. B (Dec. 2011) Equity Bank Rwanda. Assets $15 M (Dec. 2011) Fina Bank Rwanda Kenya Commercial Bank Urwego Opportunity Bank Microfinance: Agaseke Bank, Unguka Bank, Zigama CSS. The microfinance sector is comprised of 490 institutions. Sacco’s, 479, are giving credits to 22.3% of all adults. The Rwanda Stock Exchange (RSE), is Rwanda’s principal stock exchange. It was founded in January 2011. The RSE is operated under the jurisdiction of Rwanda’s Capital Markets Advisory Council, (CMAC), which in turn reports to National Bank of Rwanda, the country's Central Bank. As of December 2012, the RSE trades four (4) listed local and East African companies and also carries out trading of fixed income instruments. The exchange, which is open five days a week, is a member of the African Stock Exchanges Association. The RSE operates in close association with the Nairobi Stock Exchange in Kenya, the Dar es Salaam Stock Exchange in Tanzania and the Uganda Securities Exchange in Uganda. There are plans are to integrate the four stock exchanges to form a single East African bourse. RSE has today Bralirwa, Kenya Commercial Bank Group, Nation Media Group, and Bank of Kigali. The Insurance market remains small. In addition to insurance companies, there are a number of state-backed funds. These include: the National Social Security Fund, one of the largest financial actors in the country and responsible for health, old age and disability insurance, mainly for people in formal employment; the Military Medical Insurance; and community health insurance funds. The currency, the Rwandan Frank (RWF) is rather stable and ‘linked’ to the USD. June 2013 RWF 1000 = $ 1.49 = € 1.12. It is still a cash economy for consumers and labor contractors. Many payments on a weekly basis. Most of the credit cards do not work because Rwanda (still) has no Meastro. However, one always can use VISA and more and more American Express. International internet banking is well developed with no restrictions on cash deposits and returns. Banknotes 5000, 2000, 1000, 500, 100. Inflation rate:

23


License to operate: - A commercial Bank $ 8 M - An Investment Bank $ 160,000

-

An Insurance Company $ 1,755,000 As an insurance broker $ 78,000

3.1. f. Legal system The Head of State is the President, who is elected directly by the people for a seven-year term renewable once. Legislative power is vested in the National Assembly, a bicameral legislature with an elected Chamber of Deputies of 80 and a partly-elected and partly-appointed Senate of 26. Female in parliament 57.5%. Ministers 37%. The legal system is built after the genocide and based on UK law (Commonwealth). Today over 500 lawyers certified. Rwanda Governance Scorecard 2010 (Carnegie): for the RGS score Rwanda is in the highest category (over 188 countries, in average > 75% is G). Rule of law: independence of parliament and judiciary 80%; access to legal aid 50%. Political rights & civil liberties: executive elections participation and organization 88%; quality of democracy 80%; political parties registration and operation 75%; respect of human rights 79%; women participation in leadership 80%; power sharing 83%. Safety & Security: maintaining security 94%; national security and personnel & property safety 88%. Investing in people: education 78%; health 78%; environmental sustainability & sanitation 97%. Control of corruption, transparency and accountability: incidence of corruption 78%; control of corruption 75%; transparency & accountability 80%. Quality of service delivery: local government 70%; justice sector 68%; health sector 75%; agricultural sector (including land) 67%; water sector 61%; infrastructure sector 68%. Business promotion and private sector advocacy: 82% Lawyers in Rwanda are known as advocates. The Kigali Bar Association is an independent body that governs all advocates in the country. It was set up in 1995 with 37 advocates. Until this point the legal profession had no regulatory association in the country. In 2012 the Kigali Bar Association listed over 650 advocates, a significant proportion of which were young and female. Only members of the bar are allowed to argue before a court, although membership of the bar association is not required for private practice. Admission of advocates is restricted to citizens of Rwanda who fulfill the prescribed conditions, but foreign lawyers may provide advisory services. The Ministry of Justice must approve all attorneys who enter private practice. One of the justifications for strengthening citizen and community participation is the need to understand and develop the critical connections between participation, accountability and quality and sustainability of service delivery. Rwanda has been conscious of this fact and has demonstrated the need for increased participation through several policies and strategies. These have included the decentralization of policy itself, creation of the Citizen Report Card (CRC) system, establishment of the office of the Ombudsman (since 2004), existence of the national dialogue, public accountability days, district Joint Action Development Forums (JADFs), and more. For the purpose of providing anonymous feedback, suggestion boxes will be installed at every cell. There are three lower courts cover commercial disputes with a value less than US$ 37,000 while the high court covers disputes above this value as well as appeals against decisions from the lower courts. The strengthening of the rule of law goes hand in hand with strengthening the universal access to justice. Ongoing measures will include strengthening the legal and policy framework including anticorruption measures, enhancing community participation and awareness of crime prevention, 24


developing more institutional capacity to respond to investigate and prevent crime, reinforcing legal aid mechanisms, improving case management procedures and information systems, awareness raising and application of human rights standards, rehabilitating and improving detention facilities and conditions will be undertaken. 3.1. g. Economic stability Average income 2002 was $200 / capita. In 2012 it was $ 644 and target 2010 is $1,240. GDP 2009 was $ 5.1 Billion with $ 506 / capita in average. 60% lived in poverty. GDP growth rate 2012 was 8%. Fitch internat. credit rating 2013 is B.

In 2010 Government consisted of a central Government, 5 Provinces with an appointed Governor, 40 districts headed by elected Mayors, 416 sectors and 2146 cells. More information in attachment - 3 In 2012, out of a gross investment of USD 1,562 in the economy, USD 876 million was public investment and USD 686 million was domestic private investment. USD 160 million was Foreign Direct Investment (FDI), a steep increase after hovering around USD 100 million in three out of the four years. In general, the increasing volumes of public investment were not able to leverage significant additional FDI during this period.

25


Financing of public and private investment needed for EDPRS2 is reflected in an increase of both external debt and foreign investment. The total external debt stock is projected to reach 31.2% of GDP in 2017 but to decline afterwards with public external debt projected at 24.2% of GDP and the private debt stock at 7% of GDP in 2017. Total Governmental expenditure implementing EDPRS 2 is $15.75 M (excluding investments from the private sector and grants).

26


Priority of GoR: “a stable macro-economic environment will continue to be important as a tool for social protection and productive activity. Investor confidence in the Rwandan economy has been highlighted in the investor perception survey as one of the key factors in investor decisions�(EDPRS2)

27


3.1.h. Social stability Ethnic groups and groups of several religions are working closely together in the development of Rwanda. All are focused on welfare and peace. A challenge is the percentage of un-employed younger people. An important institution is the Rwanda Social Security Board (RSSB) results of a merger from Rwanda Medical Insurance and the Social Security Fund. RSSB is working with an Investment Policy Statement (IPS) The Pension scheme aims at: 1. Helping the worker who becomes old and incapable of working for a salary or becomes invalid and incapable of living by working; 2. Helping the survivors of the deceased worker The Social Security benefits offered by the branch of pensions are therefore divided into two categories: 1. Those given to the insured person himself when old or invalid 2. Those given to his eligible survivors. Enrolling for pension benefits is compulsory for the following individuals: 1. All salaried workers (regardless of nationality) 2. Active political representatives The contribution rates are 3% paid by the employer and 3% by the employee. There is also the option for individuals to enroll as a voluntary member. This can be achieved by applying to join the scheme and paying the required contribution rate of 6% of salary. Voluntary members must be less than 45 years of age in order to be accepted. Once you have been in mandatory insurance, you are only eligible to apply for voluntary insurance within the first 12 months of the date on which your mandatory insurance ended. The salary declared under voluntary insurance must be at least the minimum monthly salary, subject to a ceiling of $160. Types of pension benefits: Old Age pension (Retirement), the anticipated pension (Early Retirement), Invalidity pension, Old age lump-sum, the survivor’s pension, the survivor’s Lump Sum benefits. Medical Insurance Scheme Members automatically include all civil servants, pensioners who previously contributed towards medical care and private institutions who have been accepted. The contributions paid to RSSB represents 15% of employee’s basic salary. It is paid by both the employer and the employee at the rate of 7.5% each. RSSB also covers the medical insurance for pensioners with 7.5% contribution deducted from their monthly pension. The employer is responsible for deducting, declaring and paying their employee’s contribution to RSSB. The contribution is deducted on a monthly basis and paid not later than the 10th day of the following month. RSSB covers 85% of the bill for medical treatment and prescribed drugs. Patients themselves cover the remaining 15% of the cost. RSSB covers the following medical care provision: Medical consultations, Drugs, including chemotherapy, Surgical interventions, Dental care including prosthesis, Medical imaging, including CT Scan & MRI, Laboratory tests, Physiotherapy, Hospitalization, Eye treatment including provision of; lenses and frames, Lower / upper limb prosthesis & Orthesis, Dialysis, Full Medical check-up. Factsheet Social Security & Investments under attachment - 6

28


3.1.i. Taxes and tax system Corporate tax is 30%, on dividend & royalties 15%, on rental income up to 30% (above $1,550). VAT 18%, however, there are all kinds of incentives for FDI: Investment incentives start at $250,000 FDI. An investment enterprise benefits from a flat fee of 10% of the CIF value of building and finishing materials. Same for manufacturing equipment. long list of tax exemptions for imports of specific goods like machinery, specialized vehicles, equipment for tourism and hospitality industry, medical equipment, agricultural inputs, livestock, etc. Free economic zones / International Company with headquarters in Rwanda: - Is entitled to import machinery, equipment, raw materials for the industrial purposes and other goods free of duty is exempted from corporate income tax is exempted from withholding tax on payments is exempted from tax on repatriation of profits abroad there is a discount on export earnings a discount for creating employment incentives for construction projects Many more incentives if the investment is more than $2.5M. If the determination of business profit results in a loss in a tax period, the loss may be deducted from the business profit in the next five (5) tax periods, earlier losses being deducted before later losses. Personnel income tax: 0 - $560 = 0 %; - $1,900 = 20%, more is 30% Free Economic Zone (FEZ) is open for international companies with headquarters in Rwanda. Employment oriented tax discounts: employment of 100 – 200 Rwandans, discount 2%; 201 – 400 discount 5%; 401 – 900 discount 6%; over 900 discount 7%. A foreigner that invests in Rwanda is entitled to full rights, like wise for a Rwandan of ownership of land reserved for residential, industrial, commercial, social or cultural or scientific purposes. 3.1.j. Doing business Rwanda has consistently been amongst the world’s top Doing Business reformers since 2009 and amongst the least corrupt nations of the continent. In DB2012 Rwanda ranked 8-th (out of 183) in the world in terms of the ease of starting a business and getting a credit. 19-th in the world for the ease of paying taxes, and 39-th in the world for contract enforcement. Rwanda is one of the top 10 fastest growing economies in the world (8.2% over 2001 – 2011), it has a stable currency (related to the USD) and a controlled inflation rate of 5% - 6%, much lower than other East African Community comparatives, sustainable debt management (credit rating B by Fitch). Why invest in Rwanda? UNCTAD 2012: -

All sectors open to investors with no restrictions Safe, peaceful and attractive location for expatriates Niche opportunities in tourism, ict, energy, agricultural processing and logistics Possibility of aquirering government stakes in banks, insurance, telecommunications, hotels and other real estate, and agricultural operators Rapid reformer of investment related laws Stable location next to mineral rich DRC with also there a growing middle class Only 48 hours to register a new business. All facilities for licenses & permits, notary, buying land, option for establishment in FEZ 29


-

Low petty crime and corruption Member of the EAC single market with 133 M people and a Gross Domestic Product (GDP) of US$ 82.1 billion

The country has a stable government with a clear and coherent vision of where it wants to take Rwanda, backed by commitment and determination. It has a good network of major roads, wireless internet and mobile phone coverage all over the country. Difficulties are: Rwanda is a landlocked country and has the highest imported freight service costs in the region, which are nearly three times the African average. Mombasa (Kenya) to Kigali 1600 km and Dar-esSalaam (Tanzania) to Kigali is 1400 km. Kigali – Nairobi is 700 km. Import a 40 ft. Container, net. max.24,500 kg, takes 31 days, 8 documents, $5000. (Rotterdam – Kigali $ 10,000). Another difficulty is the shortage of qualified human resources. It is not difficult to find local private business partners for doing business. A bottleneck is that they can hardly (co)-invest. They have no money and for a bank loan they must pay (if they have a good track-record) 16% interest and pay-back in 3 years. Another issue is their attitude. They are interested in all kind of business activities if they think it is a good case. Difficult to focus on a core business. Finally, the mindset of many local private entrepreneurs is growing the business in competition, not in cooperation. Doing Business in Rwanda. Ranking World bank out of 185 countries. (2013)

Economic ranking Rwanda number 52 (out of 185) 30


Arbitrating commercial disputes 2012 – 2011 – 2010.

Starting business in Rwanda (2013). Today one can start a Ltd. within 6 hours.

Rwanda: 2nd global reformer 2006-2012 (World Bank) International Corruption Index 2012: Rankings made by the World Bank over the last ten years show that Rwanda has made a considerable step from 20.0% score in 1996 to 70.8% in 2010, emerging the fourth (4th) least corrupt country out of 53 countries in Africa after Botswana (79.9 %), Cape Verde (74.6 %) and Mauritius (73.2 %). According to Transparency International, over the period of 2006 to 2011, corruption has declined from 2.5 out of 10 in 2006 to 5.0 in 2011, appearing the most improved in the East African region. East African countries scored as follows in 2012: Rwanda (5.0), Burundi (1.9), Kenya (2.2), Uganda (2.4) and Tanzania (3.0). On the Index Rwanda is 50 out of 174. (Burundi 165, DRC 160, Kenya 139, Uganda 130, Tanzania 102, USA 19, NL 9.) The Government of Rwanda has sought to privatize several key firms. Since 2007, the telecom and mining sectors have been largely privatized, and the government has sold off several governmentowned tea estates and made great strides in completing privatization of the banking sector. RECO, the utility monopoly, remains to be privatized, as do several other parastatals. Huge program in land registration (Dutch Kadaster) up to 12 M registered ownerships of land, unique in Africa.

31


3.2. Geographical situation 3.2. a. General Rwanda is a small, densely populated country in East Central Africa, 120 km south of the equator. The total area is 26,338 sq. km, of which about 1,400 sq. km is water. The wetlands in Rwanda cover an area of 165,000 ha. (7%). With 10.9 million inhabitants, the country has a population density of about 416 persons per sq. km, the highest in Africa. Known as the land of a thousand hills, Rwanda enjoys a mild climate despite its location. The average elevation is 1,500 m and the highest point in the country is the Karisimbi volcano at 4,519 m. Lowest is Risizi River at 950 m. Tropical but mild because of elevation. Two rainy seasons: March–May and October–November. Frost and snow possible in the mountains. Average temperature 24ºC (maximum of 34ºC during the day and minimum of 10ºC at night. Both are exceptional). Average in Kigali 19ºC. Mountains dominate central and western Rwanda; these mountains are part of the Albertine Rift Mountains. This branch runs from north to south along Rwanda's western border. Humans began inhabiting the region between 8000 BC - 3000BC (Tutsi from the North-East, Ethiopia), and had structured themselves into various clans (Hutu, Tutsi, and Twa) by the 15th century. The territory of Rwanda was assigned to Germany as part of German East Africa in 1884. After W.O 1 the country came under protection of Belgium (under UN). Rwanda has 2.240.000 ha, excluding water and has 1.4 million ha of arable land. The urban area is 1.5% of the country. The Land Tenure Regularization (LTR) Program provided for full legal recognition of rights for 11 million land parcels in Rwanda, giving title certificates to land holders. The National Land Use Master Plan was approved by Cabinet in 2011 and adopted by Parliament in 2012.

There are 4 areas of protected nature: Agagera Nat. Park (savanna) 1085 km2; Nyungwe Forest 970 km2; Volcanoes Nat.Park; Rusumo Falls. Source of the Nile in the South-West at 2750 m.

National resources are gold, cassiterite (tin ore), wolframite (tungsten ore), methane, hydropower, geothermal energy, arable land with a rich soil and enough water resources. Environment current issues are deforestation results from uncontrolled cutting of trees for fuel; overgrazing; soil exhaustion; soil erosion; widespread poaching.

32


3.2. b. Infrastructure Roads: Rwanda has approximately 14,900 kilometers (9,258 miles) of national, district, feeder and urban roads. Rwanda’s road density is high with 0.53 km / sq. km. The main national paved roads are of high quality. Most of rural transport is provided by large busses (18 - 60 seats). Roads KM Nat.Paved roads 1,172 Nat.unpaved roads 1,688 District roads class1 1,1836

Condition 97.5% 40% 33%

National & international connections by busses. Kigali taxis at $4 / trip to $45/day. Airports: Kigali International Airport, Nyamata, Butare, Cyangugu, Gabira, Nemba, Ruhengeri. Airlines: KLM, Turkish Airlines, Brussels Airlines, Air Burundi, Air Uganda, Coastal Aviation, Ethiopian Airlines, Kenya Airways, Quatar Airways, RwandAir, South-Africa Airways, China Postal Airlines, African Star Airways, Astral Aviation. Agagera helicopter services. Kigali Airport arrivals 1.150.000 / year, growing 20% - 30% / year. Investment in tourism 2012 was $330 M. Tourism is the biggest source for foreign currency for Rwanda. The average spend by visitor is $200/day. There are over 200 hotels (> 4500 rooms) in Rwanda. The huge Kigali Convention Center (3000 seats in one room) will be open early 2014. There is new Construction and development of (eco) lodges near Kigali, in lake KIVU, Nyunge Forest and Agagera Park. Electric power: Most of households rely on biogas (around 80%) & 17% have access to electricity. Connected rural households are consuming below 30 KWh/year/capita. The sub-Sahara African average is 478 KWh/year/capita. Currently (early 2012) Rwanda has about 400 km of high-voltage transmission lines (70kV, 110 kV) and almost 4.900 km of medium-voltage lines (30 kV, 15 kV and 6.6kV) and low-voltage lines (380 V and 220 V). By 2017 Rwanda intends to have extended this with an additional 700 km HV lines and 1.400 km MV lines. 33


Water sanitation: Access to clean water has reached 71% of the population. In the Kigali district 90% and some parts of the Western and Eastern Province 60%. The aim is to ensure that households across rural areas are within 500 m of an improved water source. Healthcare: 27% of population still needs more than an hour to reach a health center (<5km), and around 51 out of 416 sectors are still without a health center and 15% of the health centers do not have electric power. In 2011 the doctor population ration was estimated at 1 doctor for 17,240 people. ICT & Telecom: All over the country you have mobile access, VoIP, Dial-up internet, ISDN based internet, software development and hardware assembly and repair. Over 2500 km fiber for broadband with 7 regional links to neighboring countries. Access to the Atlantic Ocean cable (Mombasa, Seacom.) You have also access to GPS. Rwanda has over 6 million mobile subscribers, for a mobile penetration of 57 (2012). Telecom: Operators are Tigo Rwanda, owned by Millicom International Cellular, Luxembourg; MTN. Rwanda, a subsidiary of South African MTN Group; and Airtel from Bharti Airtel, India. The network coverage accounts for 99.79% of the country and the current subscriber base is at 48.1% ( 5,155,697 subscribers September 2012 ). The long term outlook of growth in these numbers is 7,437,196 by Q4 2016. There are ten licensed Internet Service Providers across the country including. National telecommunication service operators (fixed and mobile).

There is a shortage in quality and in quantity of skilled personnel to drive ICT development. Investment opportunity is a data center. SWOT analysis ICT in Rwanda  

Strength Strong political will in support of ICT Existing of National ICT Policy, NICI ICT sector budget is on par with OECD countries at 1.6 percent, far above the African average

  

Weaknesses Lack of necessary technical and professional level of human resources Insufficient of electricity which is a prerequisite to the ICT accessibility Inadequate financial resources High cost of communication in comparison with neighboring

34


   

Opportunities Regional Communication Infrastructure Project (RCIP) Kalisimbi Project Kigali Metropolitan Network and Wibro Mobile Wimax Technology Rwanda National Backbone Project Rwanda is integrated to the EASSY Project

Threats Existing of strong competition in the region. Each EAC member is aiming to become in ICT hub in the region. Potential ICT crime and difficult to control it Loss of job due to ICT applications

Ambition: Rwanda has established an enabling environment, deployed critical world-class ICT infrastructure and is developing a highly skilled human resource base in its quest to become a regional ICT hub. Demand for BPO services in Rwanda is estimated at $50 million, which will increase to almost $200 million by 2020 with regional market potential predicted to be $1900 million in 2020. Today, Rwanda has constructed a national data center that is fully capable of maximizing the potential in cloud computing, paving the way for increased services development. 3.2.c. Natural resources Rich soil and good climate, geothermal potential, methane gas, hydropower, commodities like Cassiterite, Coltan, Wolfram, and more. Rwanda is currently mining cassiterite (tin ore), coltan (tantalum ore), wolframite (tungsten ore), gold and Sapphires. In 2008 Rwanda produced about 5% of the world’s tantalum and 4% of global tungsten. Mining is the largest export earner in Rwanda, bringing in up to $100 M/yr. There are good investment opportunities for tin, tungsten, gold, sapphires, tantalium, columbrium, and for cement production. Also for a plant for dimension stones.

35


Environment and National Resources (ENR) sector strategies and actions for land, water, ecosystem, forestry, and mining: SWOT to be able to realize the program 2009-2013 with a GoR budget of $46M and a funding Gap of $90M. GoR takes environmental protection very seriously. Notable among the measures taken is the ban on manufacturing or use of polythene bags. REMA is the principle agency and projects that effect the environment are subject to an EIA prior to obtaining authorization for their implementation. 3.2.d. (Renewable) Energy End 2011: Biomass 84% (wood), Electricity 5% (100MWe production, 15% households connected), petroleum products 11%.

Current (2012) installed generation capacity is 93.27 MWe, generated from hydropower (57MW, 59%), thermal energy (40MW, 40%), and PV (0.25 MW%). In urban areas 50% of households are using charcoal for cooking compared to 3.7% for rural households. Private firms and the process of structural transformation are constrained by key infrastructure gaps. The most significant infrastructure constraint to all sizes of firms relates to electricity, which is with $ 0.23 a high price compared to Kenya’s $0.15/ kWh, Uganda’s $0.17/kwh, and Tanzania’s $0.05/kwh) and insufficient inquantity. Current installed capacity is 110 MW against an anticipated minimum demand of 563 MW in the medium term. In addition, Rwanda’s internal trade and the competitiveness of its exports are constrained by an insufficient logistics system that has not grown in parallel with the increasing demand for trade. Rwanda is substantially dependent on its neighbors for land transportation of goods from Mombasa and Dar es Salaam which is constrained by costly connectivity. Today Fuel (gasoline, diesel) is $1.60/l.

36


Transmission, distribution and access planning (EWSA) Rwanda’s electric network is interconnected with the networks of Burundi, the DRC and Uganda (there presently is no inter-linkage with Tanzania). Feasibility studies have been prepared, or are under preparation, for a number of transmission inter-linkages including the 220 kV Kibuye- Kigali line, the 220 kV Kigoma–Rwegura (Burundi) and Birembo–Mbarara (Uganda) lines, and the 220 kV Rusomo– Kigali line. All under PPP. About 90% of the Rwandan population depends on off-grid energy sources. In 2017 70% should be provided with grid-access, which is an equivalent of 1.680.000 grid-connections. More information in attachment – 2. Experts are advising the utility company, Energy Water and Sewage Authority (EWSA), to invest in new transmission and distributed infrastructure. EWSA has hired experts from Manitoba Hydro International, a Canadian firm, to carry out a feasibility study to find out what is causing the losses and how the problem can be addressed. Rwanda’s power generation capacity from both thermal and hydro-power plants stands at 110MW. However, only 79MW reaches consumers. 22% losses through the grid. The problem has been worsened by the mass electricity rollout program, which has put a strain on the infrastructure. The number of connections has increased from 86,000 connections in 2009 to 360,000 as at last month, putting pressure on the current generation capacity of 110MW. As a backup, most businesses that require a lot of power to run their operations have installed standby generators of 52KW. Running such a generator for an hour requires 10 liters of diesel ( $ 18.-) Solar Power In 2008 the installed capacity was below 1MWp. The Kigali Solar plant generates 250 KW. GoR aims to electrify all schools, all administrative building and 50% of the health facilities by 2017. This will be done through grid-connection extension as well as off-grid solutions such as PV systems. Rwanda has a suitable climate for solar energy as it has an estimated potential of 4.5-5.5 kwh / m2 / day at eight hours of sunshine. We are investigating two initiatives for Solar PV.

37


Wind energy Wind energy is not a very promising source in Rwanda

Petroleum (2010) total monthly consumption is 16 M liters. Total storage capacity is 31 M liters, 75% owned by the Government under the responsibility of Minicom. More information in attachment â&#x20AC;&#x201C; 2

3.2.e. Climate Rwandaâ&#x20AC;&#x2122;s climate is complex showing wide variations across the country and with a strong seasonality. Kigali is at 1350 m, the South-East is 1100 m, the South-West over 2000 m, lake KIVU is 1460 m and the volcano in the North-West is 4500 m. Annual rainfall averages 800 mm, but between 600 mm in the east and 1800 mm in the South West.

38


Rainfall distribution

On the central plateau Temp. is 18-20°C on av. The Eastern is 20-22°C. Near lake KIVU, on 1460 m it is 22.8°C.Temperature in average between 14°C. - 28°C. During the two rainy seasons (February-May and September-December), heavy downpours occur almost daily, alternating with sunny weather. And weekly thunderstorms with heavy winds. Climate Change: Periodic floods and droughts (extreme events) already cause socio-economic impacts and reduce economic growth in Rwanda. Major flood events occurred in 1997, 2006, 2007, 2008, and 2009, where rainfall resulted in infrastructure damage, fatalities and injuries, landslides, loss and damage to agricultural crops, soil erosion and environmental degradation. In some regions of the country there have also been periodic droughts, for example in 1999/2000 and 2005/6. Rwanda is currently dependent on hydropower for 50% of its electricity, making it vulnerable to changes in rainfall. The impact of climate change alarmed the Rwanda Environment Management Authority (REMA) and a taskforce has started, following up the conclusions from a report about the rainy season 2012. (by example, meteorological stations recording more than double rainfall amounts in the first 10 days of May). According to this study, the 2012 wet season flooding occasioned 37 deaths,agricultural losses estimated at $65,000, livestock losses of $6,000, land related losses of 1,330,093 sqm and $6,500 of infrastructural losses. Apart from this, the 2012 flooding also caused the destruction of agricultural assets such as irrigation channels mostly in the valleys. As many respondents of this study said that floods were due to human destruction of trees, air pollution, inappropriate cultivation and mining practices, inadequate habitation, among other causes.

39


3. Agro-Food sector

78% of the populations work in agriculture, contributing 34% of the GDP and 45% of the export. About 46% of the land is really cultivated. Population employed in agriculture 70%. 85% of the population is cultivating land, 0.59 ha in average. Usage of fertilizers is 29 KG/ha. but half of rural small farmers cannot buy it. Some 52.7% of arable smallholders are only producing food crops for their own subsistence. Main production is coffee, tea, bananas, beans, sorghum, potatoes. Agricultural growth rate between 2000 and 2010 was 5.8% per annum. GoR developed a program, PSTA III (Strategy Plan for the Transformation of Agriculture in Rwanda, phase III, May 2013), for a growth rate of 8.5% in 2018. This program is part of the second Economic Development and Poverty Reduction Strategy (EDPRS II, May 2013). Over the last 5 years extreme rural poverty fell from 39.5% to 26.4%. Households with food shortages or in borderline nutritional conditions declined from 34.6% of the population to 21.5%. The share of underweight children under 5 was reduced from 29% to 11%. The proportion of the population using an improved source of drinking water rose from 64% in 2006 to 75% in 2012.

Since agriculture contributes 73% of the nationâ&#x20AC;&#x2122;s employment, progress in reducing poverty will have to continue to come largely from the agricultural sector.

40


More information in attachment - 1

45% of the budget from Minagri, 2009 â&#x20AC;&#x201C; 2012 was coming from donors. According to RDB, in 2011 from the $598 M invested in all sectors of economy combined, $ 116.3 M was invested in agriculture. From the $ 598 M, $371 M was FDI. Donor funded projects at MINAGRI: attachment-1

41


Rwanda is facing some challenges in agriculture like low productivity and quality of produce due to soil erosion, low irrigation, bad post-harvest treatment and storage, and low access to finance (lack of fertilizers). Low soil quality at some areas due to over-cultivation and too little fallowing. High soil erosion, given that 80% of arable land is on a slope. Insufficient irrigation. Bad post-harvest management leading to an estimate loss of 20%-25% of production. For many poor cooperatives it’s difficult to get financing and there is a lack of knowledge. Rwanda is facing high international transport costs. Coffee and Tea account for about 50% of Rwanda’s product exports (> $100 M), compared to 40% for mineral products sector (tin, tungsten / wolfram, chromium, etc.), 5% for manufactured products and 5% for agricultural / livestock products (official statistics. Not all cross-border trade is measured) The largest agro business industry is beverages (beer & soda), $150 M (Bralirwa, 1963, Heineken owns 75%). Coke, Sprite, Fanta, Vitelo and Tonic are 20% of the production. The wheat milling industry does $50M, all domestic. Pembe Flour and Bakhesa Grain Millers. Inyange factory, milk, yogurt, water, fruit juices, with a revenue of $8M. (owned by Crystal Ventures) Sugar sector $10M but growing fast after investments recently. Dominated by Kabuye Sugar. Maize milling industry $5M but growing. Also investing in animal feed. Dominated by Minimex. Rice industry $8M, with many small players. Good opportunities to grow. Food processing sector with many small players. Only Urwibutsu does $3.5M. Pyrethrum processor Sopyrwa with over $4M export is owned by Horizon Group. The productivity of wheat and maize has increased with 25%-30% from 2006 – 2010. Cassava by 16% / year. The land productivity of Rwanda was comparable with Kenya (2009), double of Uganda’s, triple of Burundi’s and significantly higher than from Tanzania, Ethiopia, and Mozambique. The Monitor Group estimates annual fertilizer use in Rwanda to be 34,000 ton, $30M. Today in average 29 kg/ha. at commercial farmers. Rwanda has the soil and climate in specific for: - Fresh fruits (avocado, passion fruit, strawberries, tree tomatoes, gooseberries, pineapple, bananas, Japanese plums, and mangoes) - Vegetables (mushrooms, soybeans) - Spices (paprika, Bird’s Eyes Chilies) - Nuts (macadamia, cashew nuts) - Cut flowers (roses, orchids) - Specialty plants (essential oils like petunia, geranium, pyrethrum, vanilla and silk) Source: Review of Horticultural Investment Opportunities to Leverage Pro-poor Non-Traditional HighValue Commodities under SPAT- 3: (Budget needed $8 M plus $28 M for specific companies and $65 M for irrigation & land cultivation): Rice cultivation in new marshland irrigation shemes can result in increasing yields from 1.5 ton/ha to 7 ton/ha. for one cropping season per year.

42


Growing cash crops for export markets requires the development of longer term strategies, which are new and difficult to implement for small-scale farmers. Some crops (such as pyrethrum and essential oils) are exported on a regular basis, but fruit, vegetables, nuts, plants and flowers remain unexploited despite good climatic conditions. Target is export growths 28% / year. Many non-traditional crops can be classified as: fruit (avocados, passion fruit, pineapples, apple bananas, tomatillos, physalis and mangoes), vegetables (French beans, chilies and mushrooms), nuts (Macadamia nuts), as well as flowers and herbs grown for processing (pyrethrum, geranium, eucalyptus, lemon grass and patchouli) or sold fresh (Saint Joseph [Lys], Arômes, Carnation, Pastels [White and Mauve], Gladiolus and Chrysanthemum). Several crops (passion fruit, apple bananas, tree tomatoes, cape gooseberries) have also been certified as organic and thus can serve specific niche markets. Short term recommendations:     

 

Protect and preserve existing markets and exports from Rwanda, mainly those related to organic certified produce Enhance and develop quality standards to improve growers’ ability to meet export requirements Facilitate access to good planting material Facilitate access to cold store facilities at the airport by seeking to reduce the cost for their use Improve and develop the professionalization of growers and exporters in the horticultural sector by helping the Rwanda Horticulture Inter-Professional Organization (RHIO) play a more active role Farmer Field Schools (FFS) will be scaled up to reach at least 150,000 households Improve collaboration between NAEB and RAB.

Long term recommendations: 

Obtain private certification (GLOBALGAP, British Retail Consortium; BRC) without which these products cannot be sold in supermarkets or on wholesale markets in Europe  Facilitate access to packing facilities for cooperatives in the different provinces of the country. These recommendations are extracted from the PSTA III plan of action and a solid basis for an investment plan within the requirements of EII (Erasmus Investments International). Horticultural export income should increase from the current 6.5 million USD to 335 Million USD by 2017. Presently, the major part of the horticultural export trade is to other EAC Member States and other neighboring countries including the Democratic Republic of Congo (DRC). A substantial part of this trade is informal and therefore does not appear in official statistics. Several flowers and herbs (pyrethrum, geranium, eucalyptus, lemon grass and patchouli) grown in Rwanda are already processed and exported, mostly as essential oils. The main market for these commodities is Europe. A significant hurdle is that growers have no access to small-scale packing facilities. The horticulture sector in Rwanda has great potential, given the rich soil and the suitable climate. However, several issues restrict its development. The main issue is land availability. Soil erosion is another limiting factor, particularly in areas with volcanic soils on mountain sides. The fact that farmers are scattered all around the country in small farms is another limiting factor in terms of production efficiency and quality. 43


We also must add: Information concerning good growing processes is fragmented, weak access to good seedlings and/or good seeds, difficult access to organic or chemical fertilizers, difficulties to access local markets after harvesting, and lack of information on quality standards or quality requirements needed to access export markets. Finally, difficulties to access credit and high cost of credit. ICT initiatives benefiting the agriculture sector include the Agricultural Management Information System (AMIS); an online exchange platform, “e-Soko”, a mobile market information solution that allows farmers and consumers to access market information for agricultural products. The e-Soko project won the 2011 public service delivery Technology in Government Award. A Land Use Management and Information System have been implemented to ensure proper usage, planning and management of land. Living below extreme poverty line 25%. Below poverty line 45. About 16% of all children between zero – 5 years old have a lack of protein. More information in attachment – 1. In attachment – 4 more detailed information for: Coffee Tea French Beans Tomato Paprika Physalis

Passion Fruit Mushrooms Pyrethrum Geranium Patchouli

Seeds Soybeans Rice Silk

Processed fruit: Banana Avocado Pineapple Tomato Mango Gooseberries Strawberries

Staple crops: Beans Maize Potatoes Bananas Cassava

Legal rights on land are very well registered in Rwanda. Solid rights also for all small farmers. Challenge for investors is dealing with all the cooperatives of small farmers. Huggins, 2012: ‘within a macro-level situation of economic growth in the agriculture sector, a rapid process of socio-economic differentiation will lead to a rise of levels in rural debt and distress sales of land amongst the poorer classes, and a large underemployed landless proletariat population’. Where in some areas a trader or distributor (fertilizers) is very dominant, they become a monopolist and the small farmer is the loser. Same for the multinational in food and other production, becoming too dominant in an area, being after profit maximization or an NGO with ‘a dream’ (the Jatropha for fuel case) and bureaucracy. Most farmers cannot do with their land just what they want. By law: “Productive use, appropriate protection and sustainable land productivity shall be based on the area’s masterplan and the general structure on land allocation, organization and use and specific plans certified by relevant authorities”. Who refuse to follow CIP and other government policies is vulnerable to confiscation of their land. There is little evidence that land confiscation has taken place on a large scale to day, the threat of confiscation is there. Leaders of cooperatives are often local authorities. Not always there are adequate internal checks & balances by the cooperative leadership. By example, growing Pyrethrum is profitable for the firm but not for the smallholders of land (case Pyrethrum, Huggins). The farmer receives $ 1.60 / kg Pyrethrum, the firm makes $300 / kg for refined Pyrethrum. Their margin increased 280% within 2 years. For the farmer pyrethrum represents between 5% - 28% of the value of potatoes, but many of them are forced to grow pyrethrum.

44


Soil erosion & soil fertility Through substantial investment in soil erosion protection under PSTA II, the 2010 target of 80% of the land area under soil erosion protection was achieved. More than 45,700 ha of hillsides with slopes up to 40% have been terraced. Water management infrastructure has been build, lime and organic fertilized applied. Farmers are trained in irrigation. An agro-forestry program will be developed. The fertilizer application rate has reached an annual average of 29 kg / ha. Maize yields increased from 0.65 ton/ha in 2000 to 2.5 ton/ha in 2010 while wheat yields increased by 2.5 in this period. The wheat production is 115,000 ton (2012). Wheat imports have increased to 85,000 ton (2012). Irrigation The Total area under irrigation was just 24,000 ha in 2012 including 1442 ha of hillside irrigation, 22,554 of marshland irrigation and around 100 ha of small scale irrigation. Minagri has a 2017 plan with a development target of 100,000 ha under irrigation of which 65,000 of marshland and 35,000 ha of hillsides. Earmark 20,000 ha of private sector irrigation. The GoR has developed a lease construction for this investment. We will incorporate mechanization in irrigation shemes. GoR is organizing training schools for mechanization with institutes like ISEA involved. It will be important that, if EII invest in agriculture by irrigation, cultivation, greenhouses and growing yields, we can decide, in cooperation with local farmers / cooperatives, what to grow, independently from the areaâ&#x20AC;&#x2122;s masterplan and the general structure on land allocation and specific plans certified by relevant authorities. Post harvest treatment & management In all districts involved in the production of maize, wheat, rice, and beans, modest drying grounds and stores must be constructed. Post harvest facilities may be leased by cooperatives. Modern storages must be constructed. More processing plants are needed.

ProDev, the only drying & storage facility for maize in Rwanda, in the North-East of the country. (Total investment about $500,000)

45


4. Livestock sector In 2010 68.2 of rural households had access to livestock having goats 53%, cattle 47.3%, chickens 45.5% and pigs 24.1%.

SWOT for livestock in Rwanda

46


Girinka project: 140,000 families with one cow (heifer) from the GoR. Requirement for milk / capita / year is 220 l. and for meat is 50 kg. Today Rwanda produces 12 l. of milk resp. 2.8 kg of meat / capita / year. Following the WHO/FAO recommendations 2012 for animal milk and meat consumption per capita, the current gap for milk is 2.08x10^9 liter milk and 452x10^6 for meat. It is obvious that self-sufficiency for milk and meat will be extremely hard to achieve. Livestock population 2010 Cattle Capra Total 1,334,820 2,970,780 Details for poultry: Poultry Total

Chicken 4,420,764

Ovine 798,836

Eggs 72,942,606

Swine 706,472

Kgs 3,647,130

Chicken 4,420,764

Ton 3,647

Rabbit 844,696

dog 22,029

Meat kgs 4,310,245

Cat 7,921

Ton 4,310

For Livestock the planning from GoR is rather ambitious. Unclear where the money should come from. Budget needed poultry $20M, dairy $8M, fish farming >30M, Girinka project (expand to 350,000 heifers for poor families) $ 10.5M. The objectives from GoR are rather ambitious:

47


Fish farming Fish farming is 5% of the added value in the agriculture sector, 1.7% of the GDP ($12M). Fish farming is a very efficient way for producing animal protein with a feed conversion below 1.5. Fish farming is a relatively new concept in Rwanda. Capture fisheries contribute 9050 ton/year ($ 25 M) and aquaculture `4000 ton. Rwanda is by far a net importer of fish (Uganda, Tanzania). The GoRâ&#x20AC;&#x2122;s role in domestic fishing industry is led by Paigelac. Lakeside Fish Farm Ltd. is investing in fingerlings. Imported feed is over 60% of production costs. Rwanda is importing 11,000 ton of dried fish from Uganda and Tanzania. Most of it for animal feed. An important species is Tilapia. There a currently 800 ha. of fishponds in Rwanda. Circulation tanks is another way of growing the production, but these systems require even higher investments than cage aquaculture and have higher operational costs due to need for oxygenation and pumping to maintain water circulation and filtration. Recirculation Agriculture Systems (RAS) are cost intensive and complex but also have benefits. Combinations with cages are possible by using recirculation for incubation and continuing the fattening in cages. The water in the lakes in the East and South-East of Rwanda is warm enough and has the right quality for farming the Nile Tilapia, Oreochromis niloticus, the African Catfish, Clarias gariepinus, and Haplochromis spp. However, more promising is fish farming in cages and in tanks. For fish production GoR is very ambitious Area Lakes Ponds Cages Tanks Total

2013 25,000 1,200 720 0 26,920

2014 25,000 2,800 20,000 3,000 50,800

2015 25,000 9,000 30,000 3,000 67,000

2016 30,000 15,000 45,000 5,000 95,000

2017 32,000 15,000 60,000 8,000 115,000

Cages for Tilapia is a solution but also courses high pollution and mortality in higher densities. Challenges are: -

Increased degradation and overexploitation of the lakes Poor management of fisheries Almost total depletion of natural fish stocks due to overfishing Lack of fish-eating tradition Lack of fisheries and aquaculture inputs including seed, feed, gear, other equipment

There is a huge potential because the Rwandan consumption is 1 kg fish / person / year, Burundy 3.6 kg, DRC 6.9 kg, Uganda 10 kg, Tanzania 12 kg Some parameters are: Filleting yield 35% - 40%; Tilapia on Kigali markets $ 4.65 / kg; wholesale Tilapia fillets $ 7.25 / kg and retail price Kigali $ 8.50 / kg. 48


. Poultry Industry. Current situation (end of 2012) Parent-stock: about 12.500 - Layers: Leghorn, Sussex, Rhode Island Red, Derco, Isa Brown, Norman. - Broilers: Cobb 500, Hubbard, Derco. Poultry population around 4 million but commercial about 400,000 layers and 100,000 broilers. Chicken meat production (tons / year) 5,400 (85% layers). Prices / kg between RWF 2,200 â&#x20AC;&#x201C; 2,500. Chicken meat imports (tons / year) 570. Egg production (tons / year) 2,900. Egg production (millions) 80. Prices / egg between RWF 60 â&#x20AC;&#x201C; 100. Egg imports (million) 35. Capacity of Hatcheries (incubation capacity) Day Old Chicks 95,500. DOC imports / year 2 million (70% Uganda, 27% Belgium, some NL). One DOC is $ 1.18 - $ 1.42. Chickens vaccinated 950,500

49


Pigs production There is hardly a fully professional pig producer in Rwanda. There is one small private pig slaughter facility. In Kigali there are just three main sellers of pork products. A seller pays $ 1.90 / kg at the slaughterhouse. Slaughter weights are 40 – 50 kg. It is not a very profitable business at the moment.

Small ruminants (goats, sheep) Estimate 2010 there were 2,970,780 goats and 798,836 sheep in the country. One of the main constraints is the high mortality of young animals. Local breeds have a high tolerance against internal parasites, newly introducé breeds do not. There is no professional slaughter facility for small ruminants.

Cattle There are 1.5 million cows producing 450,000 ton milk / year. The target is to increase milk consumption to reach 723,000 MT per year in 2017/2018. The plan is to increase the number of primary school students receiving milk once per week from the base of 75,000 students to 200,000 students in 2017/18 school year. The cost of the program for 100,000 children is US$ 4.7 M per year. We will investigate how we can combine this with our plan ‘one egg / child / day ‘ for children between 1 and 6 years old.

50


Girinka project: 140,000 families with one cow (heifer) from the GoR. The plan is to reach 350,000 heifers distributed to poor households end of 2017. Cattle slaughtering is 150,000 / year. This should grow to 200,000 / year, at 200 kg / carcass. Needed is an investment in slaughterhouse(s) and cooling facilities & distribution. Beef is $ 3.15 / kg deboned. The genetic composition of the animals will never be more than 66% exotic genes due to increased disease risk. For dairy production it is Holstein â&#x20AC;&#x201C; Ankole cross. Beef production start with local cross and criss-cross Taurine (Limposin / Simental x Zebu Boran / Sahiwal). The Inyambo is a beef breed 350 â&#x20AC;&#x201C; (bulls) 450 kg. There is no professional slaughter facility in Rwanda. There are 4 farming systems in Rwanda: -

-

The grazing herds with Ankole animals and their crosses in the East The grazing dairy herds with high-grade dairy animals in the lowlands in the Centre and the Gishwati highlands. Some use of A.I. has been made. Holstein is the predominant breed The zero-grazing herd, largely linked to the Girinka program The purebred Inyambo / Ankole herds. 800 animals in the hands of the government for the conservation of genetic diversity

In specific for zero-grazing, good fodder is a bottleneck. Keeping grazing herds with 2 animals / ha. is a waste of good land. For the dairy processing industry the Milk Collection Centers (MCC) are key, however, the distribution is problematic, so the supply is, and there are hardly cooling facilities. About 25% of the milk production is lost in the system.

Developing the whole small animal sector, excluding poultry and cattle, needs an $ 8M investment.

5. Housing / constructing sector / manufacturing 5.1 The housing & Construction sector is rather small in Rwanda. The Construction sector may develop up to 2000 houses (Dwelling Units, DUâ&#x20AC;&#x2122;s) / year. Some major constructions like roads & bridges, 10 51


(plus) floors offices, are mostly build by Chinese companies. Only 3 local constructors are capable to build larger constructions. Important local constructors are: Thomas & Piron (TPGL, a Kenyan company), Real Contractors (owned by Crystal Ventures), Ujenge (private owned). There are a handful of smaller constructors active in the market. There is a shortage on equipment and intermediate products: (all imported) excavators (for rent $200 / day), cranes, concrete mixers, scaffolding, sheet metal ($11.50 /m2), steel frames (40x40 mm for $11.50 / 5.5m), hardboard, MDF ($65.- 1.22x2.44x18mm), plasterboard, triplex ($10./1.22x2.44x5mm), sanitary (toilet $100.-), windows ($100 - $200.-/m2), doors, taps, hinges, handles, locksmithing, ceramic tiles ($8 - $50 / m2), cement ($15.-/50 kg), concrete ($118.-/m3), fired bricks (> $0.80.- each), low quality cement blocks (sand-cement = 5 : 1 $0.50 each), plaster ($1.60/m2), transport (truck for rent $100.- /3 hours), sand $25 / m3. This causes prices between $450 - $ 575 / m2 for classic constructed houses. Construction time is extremely long. Interest rates for mortgages starts at 15%. Affordable Houses & Low cost houses are the challenge in Rwanda. The demand is huge. Only for Kigali area (1 million people) the projected growth is 1,957,312 @ 2022; 3,059,457 @ 2030; 5,347,178 @ 2040. KCMP (Kigali Conceptual Master Plan) The official housing market demand in the Kigali area is calculated in study with support from the European Union since 2008. Affordable housing is a key component in the cityâ&#x20AC;&#x2122;s development strategy.

Overall Demand in Kigali 2022 New Backlog Total 235.274 108.807 344.081

Overall Supply (Current and Pipeline) Formal Informal Total 37.594 250.000 287.594

Supply Housing Demand Gap Challenge 56.487

306.487

A nice 140 m2 house is sold for $ 150,000. A 150 m2 terraced or 2 by 2 houses, 2 levels are sold for $ 100,000 - $ 160,000. Only 3% of the population plus some expatriates can afford that. Only with (for Rwanda) innovative technology and constructing in a factory alike process will create an answer on this demand.

Incomes under $475/month is social housing. 54% is affordable housing. 33% of housing demand can potentially be covered by market financing.

52


In total the estimate is over 400.000 DU’s (Dwelling Units & apartments, DU’s) with new Construction of 25,000 DU / year for the next 10 years. At least 80 % of the houses should cost between $ 3,000 - $ 25,000.

Quintile

Segment 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Q1

Q2

Q3

Q4

Q5

Monthly Salary Range in RwF From < 100.001 200.001 300.001 400.001 500.001 600.001 700.001 800.001 900.001 1.000.001 1.100.001 1.500.001 2.000.001 2.500.001

To 100.000 200.000 300.000 400.000 500.000 600.000 700.000 800.000 900.000 1.000.000 1.100.000 1.500.000 2.000.000 2.500.000 <

Annual Salary Range in RwF From < 1.200.001 2.400.001 3.600.001 4.800.001 6.000.001 7.200.001 8.400.001 9.600.001 10.800.001 12.000.001 13.200.001 18.000.001 24.000.001 30.000.001

Incomes in USD: To 1.200.000 2.400.000 3.600.000 4.800.000 6.000.000 7.200.000 8.400.000 9.600.000 10.800.000 12.000.000 13.200.000 18.000.000 24.000.000 30.000.000 <

Estimated % RWF 100,000 = of HH Cumulative $ 155.-/ month 60,89% 60,89% 13,51% 74,40% 7,43% 81,83% 4,88% 86,72% -------------------3,25% 89,97%  $780.2,32% 92,29% 1,88% 94,17% 1,35% 95,52% 0,94% 96,46% -------------------0,68% 97,13%  $ 1410.0,53% 97,67% 1,20% 98,87% 0,52% 99,39% 0,23% 99,62% 0,38% 100,00%

5.2 Manufacturing Many opportunities in 5 clusters:

Turn-over for industry sectors:

We are investigating investments in factories for cement, concrete, pre-stressed concrete, cellular concrete, eco-boards, steel frame profiles, packaging, fruit & crop processing, oils, canning, fish feed, silk, slaughtering, syngas, electric power, cables, silk, fertilizers, assembling intermediate materials & products for housing and other construction. 4. SWOT summary Summarizing the results of this research and detailed SWOT analyses in an overall SWOT below: Strong -

Rwanda is the fifth-best destination for investment in the World (According the 2013 Profitability Index by the Foreign Policy Magazine) 53


-

-

-

Perfect climate for FDI under strong and stable government, modern commonwealth based laws and good institutions. Peace and security. Low corruption. An active and powerful National Ombudsman GoR objectives are strongly driven by economic and social development Proven positive track-record in the realization of development programs Rwandaâ&#x20AC;&#x2122;s Governance Scorecard is very positive in the top 25% worldwide Growths of off-farm employment and booming entrepreneurship Basic education enrollment rate was 96% in 2011 and more than 10,000 people graduate each year in areas such as ICT, Finance, etc. Many (tax and import/export) incentives for FDI and membership of EAC with 125 M people, Comesa, with low to non duty fees 8.8 % average GDP growth since 2005 and rather low inflation Second best global reformer in World Bank Doing Business Report 2013 Only 6 hours to register a new business. One Stop Centre for trading & sector specific certifications and licenses, environment clearance and investment certificates, work permits and visas, tax exemption and tax payment, land and construction permit, utilities (water, electricity), notary services, etc. Safe and peaceful for expatriates Rwanda has emerged as the least corrupt country on the African continent and among the least corrupt nations in the world, according to the 2013 Transparency International Global Corruption Barometer

-

-

High public health expenditure with very good results A well developing financial sector with 12 Commercial Banks in Rwanda, 2 micro Finance banks, 66 Micro Finance institutions and 302 registered SACCOs and a stock exchange as of Dec 2012 There is a reasonable pension sheme and a medical insurance sheme Rwanda was the country with the fastest broadband Internet speed in Africa, according to latest statistics from Ooklaâ&#x20AC;&#x2122;s NetIndex in 2012. All over the country wireless internet and mobile access

Weak -

-

Average income of $644 / year is still rather low. 80% of the populations earn less than $6,200 /year. 60% has $160 / month or less. 25% is extreme poor and 16% is below borderline for food Rwanda has 416 persons / sq.km and is by far the most populous country in Africa. Availability of land is a limiting factor Low skills & productivity (yields in agriculture) and no certified quality Bad post-harvest management leading to an estimate loss of 20%-25% of production. Lack of energy what causes high costs. Limited capacity of the grid. Small size of private companies and a small manufacturing industry causes many imports Heavy requirements for bank loans (16%-18%) High cost of communication due to lack of ICT professionals and high prices for electric power Insufficient logistics system with a lack of trucks and an auction system for cargo 54


-

Knowledge in adequate and innovative production management and a lack of supportive ICT applications A rather centralized policy of agricultural development

Opportunities -

-

-

Huge market available in Rwanda (now dependent on many imports), the EAC and Eastern DRC (in total 160 M people) and for some products good opportunities for export to Europe, USA, and other countries Rich soil and good climate and water resources. Rich in biodiversity The horticulture sector in Rwanda has great potential, given the rich soil and the suitable climate. A lot of â&#x20AC;&#x2DC;low hanging fruitâ&#x20AC;&#x2122;. Very positive reports about the business climate and investment opportunities from World bank, IFC, UNCTAD and other organizations A huge demand in housing due to migration to cities and to a growing middle class. For low cost & affordable housing there are many opportunities in Rwanda if we can select the right innovative technologies for solid, sustainable and low cost construction Many local private parties willing to collaborate with FDI and to expand A Greenfield for sustainable and innovative solutions with full support of GoR

Threats -

Small, land locked with high costs of transport, under-endowed with natural resources Negative image since genocide, violence in East DRC, one dominant political party Hesitation at the Rwandan government because we, with the EII investment approach, work differently than they are used to Political stability in Kenya, Uganda and Tanzania How to get confidence of thousands of farmers in many cooperatives? Large scale agricultural production is only possible in cooperation with the cooperatives The mindset of many local private entrepreneurs is growing the business in competition, not in cooperation

Conclusions Rwanda is a country of opportunities for investors. Low hanging fruit in investments in the growth of productivity in yields / ha., irrigation and cultivation of land, post-harvest treatment & storage, packaging, logistics, greenhouses, supportive ICT applications, and management development. Examples are fruit-& crop processing, livestock industry (poultry, fish farming), cooperatives scaling in crop. Grab the opportunities like a huge demand for good quality products in Rwanda and EAC, a booming local entrepreneurship, by showing that it can be done, thus turn threats including the negative image in parts of the Western market, and the suspicion of local entrepreneurs and farmers. Make Rwanda more independent on imports. We come to the conclusion that we can invest about $ 2 billion in feasible and do-able projects within the requirements of the financing platform. 55


Attachment-1 Food security & donor projects Borderline food consumption and stunting rates The UN said in the Human Development Report (HDR) 2013 that poverty reduction drivers in developing countries exceeded expectations, helping uplift hundreds of millions of the poor into a new “global middle class.” Another report by Oxford University’s Poverty and Human Development Initiative (Ophi) ranked East African countries, mainly Tanzania and Rwanda, among the “star performers” in fighting poverty worldwide. UN says that to improve living standards governments need to focus more on ensuring that girls attain quality education, and improve citizens’ participation in politics and governance.

56


Donor funded projects at MINAGRI are - RSSP 3: $35M, to increase agriculture production and marketing in marshland and hillside in an environmentally sustainable manner. IDA, World bank Fund - LHW: $106M, Land Husbandry Water Harvesting and Hillside Irrigation. Increase productivity and commercialization of hillsides agriculture in target area. IDA, GAFSP, CIDA, USAID - SPAT II: $18M. Market Oriented advisory services and quality seeds. Belgian Development Agency (BTC) - PAPSTA: $30.5M, Support Project to the Strategic Plan for the Agriculture Transformation. IFAD (Agency of the UN), DFID, WFP - KWAMP: $49.3M, Kirehe Community- based Watershed Management Project. IFAD, WFP - PAIRB: $15M, Bugesera Natural Region Rural Infrastructure Support Project. ADF - PADAB: $13M, Bugesera Agricultural Development Support Project. ADF - PAIGELAC: $16.8M. Goal is to contribute to the strengthening of the food security while the specific objective is to improve the incomes of actors in the fishery sub sector in a sustainable manner. AfDB - PRICE: $56.1M, Rural Income Through Export. IFAD ($37.4M) - NSC: $4.3M. NATIONAL SERICULTUTURE CEN-TRE. Provide possible logistical and technical support to beneficiary farmers/cooperatives to optimize production and maximize profits with a major thrust on value addition initiatives for production of various silk products / handcrafts for local and foreign markets. IFAD - LISP: $35.4M. LIVESTOCK INFRASTRUCTURE SUPPORT PRO-GRAMME. Objective of LISP is to build the necessary infrastructure and services that will contribute to the development of a sustainable and profitable livestock production and marketing and overall improvement of the livestock industry in Rwanda. AfDB. - Post Harvest Handling and Storage Taskforce: $3.85M and a Crop Intensification Program, $14M. WPF, USAID PHH&S, IFDC, ADB, CDF, JICA,WORLD BANK, Netherlands Corporation

Attachment-2 Energy Upgrading the grid means more than triple the current capacity. From an engineeringâ&#x20AC;&#x2122;s perspective we need to build over 250 km 110 KV lines and close the loop Kigali, Ruhengeri, Gisenyi, Kabuye, Kigali, with extra line Butare. In addition extra line to the areas of new energy production: geothermal in Volcano area and bioenergy in the South-East.

57


Attachment-3 Economy GoR is pushing the economy. One of the instruments is the creation of four private Holding Companies: -

-

Crystal Ventures (ex Tri-Star/CVL Group, 2009) with all share from Bank of Rwanda and Rwandan business people o The sectors currently invested in include civil works and concrete products, construction and real estate development, telecommunications, agricultural value addition, aviation charter services, security services, printing and publishing, furniture trading and manufacturing, building materials, media systems, property management and engineering services and diversified investment groups o The current project pipeline includes opportunities in packaging materials, building materials, horticulture, agro-processing, hotels and hostels, manufacturing electrical cables and heavy equipment Horizon-Group (owned by the army) o Horizon Construction was the first subsidiary company created under the group and has focused primarily on roads and large infrastructure construction projects o We also construct dykes, the new library, sewerage o Horizon Sopyrwa is a Pyrethrum processing business that was acquired by Horizon Group in 2007. Initially, Horizon Group purchased70% shares in 2007. The company has since been fully acquired by Horizon Group and it is now one of its Subsidiary companies o Horizon logistics primary business is the support of peace keeping forces in mission areas. The company currently supports the maintenance of equipment of over 3,500 troops in Darfur under the United Nations African Mission in the Darfur region and Khartoum under the United nations Mission in the Sudan o Joint Ventures are

58


Gaculiro Property Developers (GPD): Construction of 4000 residential housing units and the development of 130 Hectares of land in a prime area in Kigali City. Partner: Social Security Fund of Rwanda Horizon Aquifer: Construction of a 4MW mini-Hydro-electric station for Rwanda Mountain Tea Group: Championing self-sustenance in Energy creation, development and use Development and construction of a 13.5 Billion Rwanda Francs commercial complex in Kigali City. Partner: Military Medical Insurance (MMI) and ZIGAMA CSS AGROPHARM Africa: Production of insecticides and fungicides for Public Health, Animal and crop protection for export. Partner: AGROPHARM(UK) Partnership Pending Completion

-

Rwanda Investment Group (RIG, 2006) shares from local investors and from the Diaspora o Peat Energy Company (PEC) 20,000 ton / year o Rwanda Energy Company (REC) methane, lake Kivu (not operational yet) o Cement: CIMERWA is well positioned as the dominant and only domestic cement producer in Rwanda. The company has an installed capacity of 100,000 tons per year serving a domestic market with a current demand of 270,000 tons per year and estimated target regional market of 400,000 tons per year in Burundi, Eastern Congo and Southern Uganda. RIG Ltd acquired 90% shares in CIMERWA in the year 2006 and end of 2011; new equity has been injected in Cimerwa by a firm from SouthAfrica, which diluted RIG shareholding to 21% of the total share capital

-

NGALI Holdings (2010) shares from Bank of Rwanda. Areas of investments & research o ICT. Communication, security, systems integration o Transport. Aerospace, railways, canals, ports & harbors, ship & boat building o Industry. Energy, Mining & metal processing o Healthcare and Pharmaceutical o Ecology. Forestry, Agro-processing, Agricultural mechanization, Waste management, & recycling

59


Objectives for Rwanda:

Thematic Area Priorities for EDPRS 2 (2013 â&#x20AC;&#x201C; 2018) Economic Transformation 15. This thematic area targets accelerated economic growth (11.5% average) and Restructuring of the economy towards more services and industry as we move towards middle income country status. The main plan Rwanda targets relate to: Strategic infrastructure investment for exports, increased private sector financing for increased exports coverage of imports, urbanization and green economy approach for sustainability. Five priority areas will spearhead this thematic strategy. 16. Priority 1: Increase the domestic interconnectivity of the Rwandan economy through investments in hard and soft infrastructure by meeting the energy demand of the private 60


sector; increasing access to public goods and resources in priority sectors of the economy; and deepening the integration of key value chains. 17. Priority 2: Increase the external connectivity of Rwanda’s economy and boosting exports by building a new international airport, expanding RwandAir, and finalizing planning for an appropriate railway connection along the Central Transport Corridor to Dares-Salaam or to Uganda; transforming Rwanda’s logistics system and strengthening export promotion. 18. Priority 3: Transform the private sector by increasing investment in priority sectors. The investment process will target large foreign investors in priority sectors of the economy; accelerate measures to increase long-term savings, transform the financial sector for increased access to long term international and domestic financing for private sector, strengthen tax and regulatory reform to spur medium and large enterprise growth and attract large investors. 19. Priority 4: Transform the economic geography of Rwanda by facilitating urbanization and promoting secondary cities. Six Secondary Cities will be developed as poles of growth and centers of non-agricultural economic activities. This will require investment in specific hard and soft infrastructure and strategic economic projects that will trigger growth of these cities and enhance linkages to other towns and rural areas. Affordable housing will also be a key element of increased attractiveness of these cities. Kigali will continue to be developed as a regional hub. 20. Priority 5: Pursue a ‘green economy’ approach to economic transformation. The green economy approach favors the development of sustainable cities and villages. Key innovations include: piloting a green city, piloting a model mine, attracting investors in green construction, Interventions will focus on green urbanization and the promotion of green innovation in industrial and private sectors. Rural Development 21. This thematic area is focused on ensuring that poverty is reduced from 44.9% to below 30% by 2018. This will be achieved through focus on increased productivity of agriculture which engages the vast majority of the population and ensures sustainable poverty reduction. Enhanced linkages of social protection programs will also be developed with particular attention to increasing graduation. Four priority interventions will lead this strategy. 22. Priority 1: Integrated Approach to Land Use and Human Settlements. Two functions will be strengthened in this priority. The overall land use allocation for development and the decentralized process of land allocation and management. A major consideration is ensuring that rural settlements are revisited to ensure greater access to economic opportunities and basic services. 23. Priority 2: Increase the Productivity of Agriculture by building on the sector’s comparative advantage. The focus is therefore on irrigation and land husbandry, proximity advisory services for crops and livestock and connecting farmers to agribusiness. 24. Priority 3: Enable Graduation from Extreme Poverty by monitoring graduation 61


Through a database across social protection programs, supporting financial products, services and literacy for the poorest, strengthening Umurenge SACCOs, and improving the coverage and targeting of core social protection programs such as VUP. Graduation will also mean linking the poorest to economic activity through the provision of skills. 25. Priority 4: Connect Rural Communities to Economic Opportunity through Improved Infrastructure. Interventions will include a feeder roads program and information and communications technologies (ICT) expansion for rural areas with the aim of linking communities to markets, the electrification program, modern biomass and other cooking methods, and full coverage of quality water and sanitation. Productivity and Youth Employment 26. This thematic area is focused on ensuring that growth and rural development are underpinned by appropriate skills and productive employment, especially for the growing cohort of youth. The main objective is the creation of at least 200,000 new jobs annually. Four priority interventions will lead the way. 27. Priority 1: Develop Skills and Attitudes by reviewing and reforming national education curricula, establishing Sector Skills Councils, strengthening TVET, internships, promoting adult literacy and short course basic skills training, a tripartite funding system for on-the-job training, and a youth entrepreneurship mentoring program. 28. Priority 2: Promote Technology with a focus on accelerating innovation by internet and mobile phone infrastructure and improving ICT skills. 29. Priority 3: Stimulate Entrepreneurship, Access to Finance and Business Development by increasing off-farm employment, productivity and new job creation driven by the private sector. The government will consolidate, rationalize, and expand different business support programs into an Integrated National Employment Programs to boost entrepreneurship and job creation. 30. Priority 4: Labor Market Interventions. Government will improve the efficiency of labor markets by assisting job seekers match to job providers through Employment Service and Career Advisory Centers. Accountable Governance 31. The objective of this thematic area is to improve the overall level of service delivery and ensure citizen satisfaction above 80%. It also focuses on increased citizen participation as a way of ensuring ownership and feedback for efficiency and sustainability. The following strategic priority areas for intervention have been identified: 32. Priority 1: Strengthen Citizen Participation and Demand for Accountability by using â&#x20AC;&#x153;home grown initiativesâ&#x20AC;? to promote citizen participation; using ICT and radio to promote participation and development communication; strengthening the media and civil society organizations to better fulfill their developmental role and strengthening administrative decentralization. 33. Priority 2: Improve Service Delivery. To revitalize service delivery in the public sector

62


as well as in the private domain, the Government will embark on development of a customercentred service delivery culture, the design of policies and the establishment of standards of Customer Services. Achievements under EDPRS 1 (2007 â&#x20AC;&#x201C; 2012) Remarkable socio-economic progress has been made during EDPRS 1. The economy grew strongly, and significant poverty reduction was achieved. Economic activity was driven by a large increase in agricultural output, robust exports, and strong domestic demand. Fortunately, Rwanda has remained relatively insulated from the slowdown in the advanced economies. Though inflation rose sharply in 2011, it has still remained in single digits and has been the lowest in the region. In 2012, high growth was sustained and inflation remained relatively modest, although risks from instability in commodity prices and aid flows remain. Steady Growth Across All Sectors. Economic growth for the EDPRS 1 period 2008â&#x20AC;&#x201C;2012 exceeded ambitious expectations. Real GDP growth averaged 8.2% annually, which translated into GDP per capita growth of 5.1% per year (Table 1.2).

The economy experienced a short period of difficulty following the global financial crisis in 2008-9, when GDP growth fell to 6.2% in 2009. However, growth well in excess of population growth returned during 2010-2012, permitting significant real increases in per capita incomes. Rwanda was shielded from the worst effects of the global downturn because of its relatively low level of integration with the worst affected western economies, and its fiscal stimulus policies implemented in 2009 and 2010. Overall, the economy proved resilient to the global dip in 2009, helped by a rebound in commodity prices for its exports. Strong and balanced economic performance has derived from sustained growth across all sectors of the economy. Services have been the main driver of growth. The sector grew at an average of 10.0% per year and produced around 52% of national output during the EDPRS 1 period. The main expansion areas were telecommunications with increased mobile phone and internet use, wholesale 63


and retail trade and transport. Expansion of services accounted for just over half of total GDP growth (53%) during the EDPRS 1 period. The industrial sector grew at an average rate of 9.8% per year during EDPRS 1, driven by a rapid expansion of construction, which grew at 15.0% annually. The industrial sector produced 15.4% of national output between 2008 and 2012. Investment flows for construction from the Diaspora, have been an important contributor. The rapid growth was achieved despite the sector, in particular construction, being hit hard by the global downturn in 2009. Industrial growth contributed 20% of total growth during EDPRS 1. Agriculture grew at 5.4% sustained by higher than expected expansion of food production, mainly thanks to scaled-up public investments such as the crop-intensification program (CIP). The agriculture sector contributed 32.7% of GDP and 28% of total growth. Increased monetization of the economy and the rural world in particular, has led to reduced financial exclusion. This has dropped significantly since 2008 (Finscope 2012). In 2008, 52% of adults (i.e. 18 years or older) were financially excluded. By 2012, this had reduced to 28%. In 2008, 21% of adults were served by formal finance institutions; and by 2012, this proportion increased to 42%. The increase in inclusion has been helped by an uptake of banking products offered by non-bank formal financial institutions (such as Umurenge SACCOs and insurance companies). From the EDPRS II program:

64


Attachment-4 Agriculture Coffee and Tea Tea generated $ 56M in 2010. Coffee $57M in 2011. The Tea sector provides employment for 75,000 people. Coffee employs 450,000 farmers. Rwanda has 200 coffee washing stations now. The majority of the exports of coffee and tea is to the international markets in Europe and the USA. The area of tea production will expand by 18,000 ha over the next 5 years.

Vegetables with export potention are French bean, snow peas, tomato, onion, fresh and dried chili, spices, among others. For fruits that is avocado, pineapple, macadamia nuts, passion fruit, apples. A specific category is essential oils like geranium, patchoulli, eucalyptus, lemon grass. French beans (Haricot Verts) production in Rwanda is scattered in the Southern and Eastern Provinces. Beans are an important source of protein in Rwandan meals. Most of the growers were located in remote parts of the district (far away from main roads) and were unable to get their production to Kigali. French beans can be listed as a priority crop in Rwanda for the following main reasons: ď&#x201A;§

Rwanda benefits from similar growing conditions as Kenya which is one of the main supplying origins for the European market.

65


  

French beans from Rwanda are considered as an opportunity to complete the off- season supply of French beans in Europe. French beans are exported by air to DRC. The market for canned beans in Rwanda and neighboring countries (Eastern DRC, Burundi) could reach $55 – 85M by 2017. Regional demand for common beans exceeds 4,000,000MT The market for canned beans in Rwanda will total 15,000MT

Points need to be addressed:  Logistic issues related to transport from growing locations to airport,  Questions related to grading and implementing quality requirements  Set up and use of small packing facilities.  High costs of using cooling facilities at the airport  Choice of varieties that will be grown for export (keeping in mind that unlike le Loiret beans, new varieties are genetically modified to avoid multiple reproductions. Tomato. GoR target with local producers is capacity of volume supply for tomatoes to be around 350 tons / week, about 17.5 M kg/year.

Pricing of tomatoes / kg on the local Rwandan market might be in town Euro 0,90 ($1.15) and in rural area’s Euro 0,55 being consumer pricing. No truss-tomatoes available. Paprika is grown in small quantities and sold in local market ($ 0.65/kg). Geranium Cooperative is producing 30,000 ton/year. Bird’s Eyes Chilies are growing very well in Rwanda. Currently they grown in small quantities and sold in the local market. The demand is much higher than the production. Physalis (Cape gooseberry) is a small exotic fruit with good potential for export, especially when it is organic certified and sold through specialized retail stores. According to NAEB officials as well as to growers met in the field, the demand for passion fruit is very high in Rwanda and the production cannot meet the demand. Passion fruit production should be an investment priority in Rwanda for the following main reasons: 

The local demand for the fruit is very high and insufficiently met by the current low level of production.  The demand is particularly strong from processing units that have to source raw material from neighboring countries in order to supply juices. It is also good for fresh fruit, whose volumes remain too low for export. Air transport is the only means suited for the passion fruit. Mushrooms are grown in the Eastern Province. Growers met were not able to name the variety grown. The entire production is sold on the local market. Growers sell all their production to local supermarkets. Mushrooms are produced all year round by over 30 cooperatives. They are grown as a complementary activity on many farms (most of the farmers have small sheds dedicated to mushrooms in their compound). Growers are confident that they can sell their produce each week (at approximately $ 2.50- $ 3.- /kg). Whereas volumes produced are still very low, they allow growers to earn an income on a weekly basis. The demand is much higher than the supply but the substrate is expensive. 66


Target vegetable production

Essential oils for export: Pyrethrum is a natural insecticide and insect repellent without any risk to man. It derives from a rare flower that requires special growing conditions, namely: high altitude (between 1 800 and 2 200 m), volcanic soils, regular and abundant rainfall, ample sunshine. All these conditions are met in Rwanda (Northern Province with 5 volcanoes). At present only five countries in the world produce natural pyrethrum: Australia (Tasmania), Kenya, Tanzania, Papua New Guinea , Rwanda. Geranium, eucalyptus, lemon grass are grown to be processed as essential oils for export. Even though growing these herbs and plants is a good source of revenue for growers, it is not easy to mobilize and interest growers for several reasons: 

growing herbs, plants and flowers means that farmers will have to allocate the already limited land they own to non-food crops. This in turn means a reduced availability of staple food security crops for the household (food crops are neglected for cash crops);  during the first six months there are no substantial crops to be harvested to feed the family or provide income to the grower;  growing herbs, plants and flowers is labor intensive and farmers prefer to avoid intensive work loads; Patchouli is grown in the Western and Eastern Provinces of the country. Patchouli oil is used as a base material in the perfumery industry. The demand for Patchouli remains very high because there are no synthetic substitutes for Patchouli oil. Patchouli should preferably be grown in association with other crops, mainly bananas. This is due to the shade required for the adequate development of the flower. Patchouli production is complex and requires skilled staff. Growers need special training and BIOLANDES (French firm) has brought in external assistance for this purpose. For some of the crops identified above (apple bananas, tree tomatoes, cape gooseberries), Rwanda has a potential competitive advantage in terms of producing organic crops. This advantage is linked to the fact that - up to now - very few chemical fertilizers are used to grow crops in Rwanda. In 67


Europe, Rwandan organic certified products can enter niche markets in countries such as Germany, Switzerland or Denmark that are well known for the interest of their populations in organic food. Processed fruits

Expected fruit production 2014 is a rather optimistic calculation. There is a lack of knowledge, quality seeds, problematic distribution, quality control & certification and limited processing capacity. Banana is the dominant fruit crop for rural households with 69,000 ton. Cooking bananas, beer bananas, apple bananas and plantains. Apple bananas are exported to Europe. The current production is 5 ton/ha but should be 35 ton. Avocado production is 82,000 ton but domestic. The export market is only interested in high quality Hass variety. Wholesale price of $1.75 per kg (FOB destination). Pineapple, 31,000 ton, is not very competitive in the international market due to the relatively low value-weight ratio and yields are low (1 ton/ha should be 35 ton/ha). Rwandan Passion fruit, 5,000 ton, has a superior flavor but there are diseases and the current yields are low with 10 ton/ha. Tree tomato is a relatively new product for Rwanda and there is a strong demand. The main challenges are the lack of a cold-chain storage system and inappropriate practices for post-harvest handling. Mango, 9,000 ton, is not a competitive export product compared with warmer climate in Burundi, Tanzania and Uganda. Gooseberries is promising for the export market. In order to compete with Colombia, Rwanda would have to export organic gooseberries. The Colombian product has been subject to criticism for high doses pesticides. Rwanda has good growing conditions for Strawberries. Currently there is no large scale production.

68


Seeds The seed production sector is in the infant stage. There is a significant potential to develop vegetable seeds given that there is strong demand at the domestic and the regional market. Rwandaâ&#x20AC;&#x2122;s topography and varying climatic conditions afford it numerous possibilities to develop seeds locally. This will only work in a solid collaboration & partnership with a foreign expert organization. PSTA III:

69


Soybeans Soybeans represent an important source for protein. In addition soya can generate incomes due to its processing potentialities including soya oil and animal feeds (poultry). Actual production is 38,400 ton with a yield of 0.8 ton/ha, which is far below optimum. Soyco Ltd. (2009) is the only large soy processing business in Rwanda. The company is investing $15M with the help of the Clinton Foundation. The company is contracting with 30,000 farmers. Soyco’s own commercial farm will employ 1400 farmers and its factory will employ a staff of 120. The objective is cooking oil from soy and sunflower seed and the bi-product, soy- and sunflower cake, is to be used in animal feeds, in specific for poultry. The plant capacity is 200 ton / day. Sosoma Industries processes 300 ton/year. Abahuye processes 1.5 ton/year. The production yield is just 1.1 ton/ha. Most of the soybeans in imported from DRC and Uganda. The demand for soybean is high and increasing. Rice Rice is a major food crop in Rwanda. In the past 20 years the total production increased by 7.2– fold (9,305 tons in 1990 to 67,253 tons in 2010) with an annual growth of 98.9% while the yield was increasing 66.7% annually. The demand for Rice consumption has outstripped the local production. The average net imports are ≈ US$ 11.5M per year. The total area under Rice cultivation has increased dramatically: from 3,549 ha in 2000 to 13,000 ha in 2009. That should be 7,800 ha in 2016. Average productivity of 5.8 tons / Ha with a maximum of 7tons / Ha Investment opportunities for Rice, within the requirements of EII, are:; US$ 9.0 M for 4 years to increase area under Rice production and improve productivity in existing marshlands in Eastern, Western, Southern provinces and Kigali City; US$ 49 M for 4 years to increase area under Rice cultivation by reclaiming 5,000 Ha of new marshlands in the entire country; and may be US$ 940,000 for 3 years to develop site specific fertilizer applications and establish agronomic efficiency and profitability in Eastern, Western, Southern provinces and Kigali City. Silk Silk might become an important export product for Rwanda because the quality is World class. Rwanda already has planted Mulberry in 300 Hectares of land, over 20 Cooperatives and about 600 farmers are involved in sericulture activities. National Sericulture center and Agriculture research centers have already developed many varieties of Silk worms and Mulberry plants. The pilot project: The envisaged project is with a capital outlay of about € 15 Million with a suitable building or else to at € 7.7 Mil. To be set up in rented buildings. 70


It will have an Employment of about 750 persons directly on Industrial employment and about 600 persons indirectly on the farm sector and cocoon production activities. Staple crops These important staple crops in Rwanda are Beans, Maize, Potatoes, Bananas and Cassava. GoR (Minagri) delivers support in a specific program. This support is particularly focused on the production side and is implemented through the crop Intensification Program (CIP). This is training, marketing, transport, storage, wholesale by reducing the number of intermediaries and improving the conditions of exchange. For example, washing a packaging of potatoes can as much as double the price and reduces the risk of rot when in storage. Improved drying facilities also improve the quality and extraction rate of transforming cassava into flour. Maize. To encourage production, new varieties have been introduced, a subsidized inputs program has been implemented, and cultivation patterns have been shifted from mixed cropping to consolidated monoculture. The Eastern Province produces the largest share (32%) with the bulk of maize produced in Season A (September to February). Approximately 70–75% of the crop is harvested in December/January, while 20–25% is produced in Season B (March to July) with harvest taking place in May/June. Some additional production (5–10%) can occur in Season C, harvested from the wetlands in November/December, but volumes are variable. According to MINAGRI statistics, maize production has increased dramatically—from 175,000 MT in 2008, to an estimated 575,000 MT in 2012 (USAID, 2013). The government policy of encouraging zero-grazing linked to the one cow per family program has increased demand for maize as animal feed. One of the reasons that there are major investments in animal feed at the moment, from the estimated 15,000 ton / year today to 35,000 ton within three years. (Minimex, with a grant from Fanisi Capital Fund, 20,000 ton, Tyson Food 12,000 ton, an investor from Singapore 5,000 ton.) Minagri estimates put national maize meal consumption between 76,750 MT and 90,000 MT with an average retail price of Rwf 400 per kg ($ 0.63)(USAID, 2013). The overall national fresh maize consumption, including un-milled for consumption and including for beer production, was 106,000 MT in 2011. Storage losses was 23%. Rwanda is a net importer of maize grain and a net exporter of maize meal. Imports about 60,000 ton. Rwanda’s main source of maize is Uganda, which supplies 88% of all imports, Tanzania supplies 9% of Rwanda’s imports. SWOT analysis for Maize

71


72


Irish potatoes are the second most important staple in Rwanda. EICV3 data indicates that they constitute 7.6% of all food purchases, and 8.3% of all food consumption (USAID, 2013). In areas such as Gisenyi, and Ruhengeri, producer households consume as much as 300 kg per annum. Average per capita consumption in East Africa ranges between 15 and 25 kg per annum. Rwanda is the largest potato producer in East Africa, the cultivated area increased to 130,000 ha. In the past decade production increasing by 60% per annum, to over 1,400,000 MT in 2012. Rwanda potato yields are higher than from regional competitors with 13 ton/ha. but the potential is to increase this to 25 ton/ha. Demand in EAC for potato chips is growing 15% / year. The crop is grown at elevations of 1,800 meters or higher, where average annual temperatures remain around 16 degrees Celsius, with annual precipitation ranging between 1,200 mm to over 1,600 mm .

Recommendations for Irish Potatoes 1. Strengthen market for Potato Seed: Lack of grading and certification of seeds has resulted in market distortions where potato seed is undervalued. This leaves little incentive for producers to engage in the production of quality seed, which has resulted in a general shortage of seed. The introduction of a certification scheme would go some way to resolving this issue; 2. Cooperative Strengthening linked to Finance: Producers need training on use and application of inputs as well as washing and packaging. Training should be linked to management of finance, record keeping and access to finance. 3. Exploiting Regional Trade Opportunities - Rwandan potatoes can be produced at a price that is competitive in neighboring markets. The main hurdle to increased export trade is developing efficient trade networks into Uganda and Tanzania, taking advantage in particular of the substantial hauling capacity that is returning empty through Kampala and Mwanza. 4. Production of Chips â&#x20AC;&#x201C; The regional chip market is growing at 17% per annum. Rwanda does not yet have a processor despite being the largest potato producer in the region. Potential investors should be identified as well as introduction of potato verities that are suitable for chips.

73


SWOT analysis for Beans FARMERS Strengths - Large per capital bean consumption in Rwanda : 60kg person/year - Cultivated by large majority who has long tradition and strong expertise in bean cultivation; - Excellent rotation crop for other staples: The cooperatives and individuals farmers other made a good rotation same cooperative producing maize and potato also produce beans - Land consolidated program - Farmers getting input subsidies from the government(improved seeds and fertilizer)

Opportunities - Possibility of improving market by grading and selling as single variety - High demand large scale buyers such as WFP P4P, RGCC, boarding schools and other school feeding Programs; and some big Trader: MURENZI SUPPLY COMPANY, ENAS, NSEKUYE, BIZAMAZA and others big Traders. - Important source of protein and micronutrients especially for rural population, nutritional importance recognized by the Government - Number of research institutions and programs are targeting the crop (ISAR, RIU, Harvest Plus and developing new varieties. TRADERS Strengths - Rwanda grain and cereals corporation is a solution for the beans farmers - sensitize privet sector to invests in storages facilities - Government to construct the wholesale markets Opportunities - Increased a high demand for beans - The local Government is putting in place local market infrastructure PROCESSORS Strengths - High demand - Land consolidated program - New varieties of beans

Weaknesses - No organization of beans producers into cooperatives - Little/ input on extension support from Government - No improved post-harvest techniques or infrastructure current shelling techniques lead to losses. - No organization of seed production and distribution. - High losses in storage can occur due to weevil infestation if no protected. - Insufficiency on storages infrastructure - Farmers are not business oriented - No formal marketing except for WFP, P4P initiative - Lack of processing factory Threats - Replacement by soybean if large soybean processing factory established in Kayonza - Exploitation by middlemen

Weaknesses - Many middlemen - No standard for beans harvested - Limited storages facilities

Threats - Poor Road Networks Transport Means - High transport coast

And

Insufficient

Weaknesses - Inadequate working capital - Poor management - Lack of low material - No good bean quality - Insufficiency on storages capacity

74


Opportunities - Beans is both a food crop security for Hungary and source of in income - Adoption of improved technologies in agricultural and post-harvest management - The new varieties have already given by RAB. (Rwanda Agriculture Board)

Threats - High energy costs - High transport costs - Poor quality of beans

SWOT analysis for Bananas FARMERS Strengths - Large per capital bean consumption in Rwanda : 60kg person/year - Cultivated by large majority who has long tradition and strong expertise in bean cultivation; - Excellent rotation crop for other staples: The cooperatives and individuals farmers other made a good rotation same cooperative producing maize and potato also produce beans - Land consolidated program - Farmers getting input subsidies from the government(improved seeds and fertilizer)

Opportunities - Possibility of improving market by grading and selling as single variety - High demand large scale buyers such as WFP P4P, RGCC, boarding schools and other school feeding Programs; and some big Trader: MURENZI SUPPLY COMPANY, ENAS, NSEKUYE, BIZAMAZA and others big Traders. - Important source of protein and micronutrients especially for rural population, nutritional importance recognized by the Government - Number of research institutions and programs are targeting the crop (ISAR, RIU, Harvest Plus and developing new varieties. TRADERS Strengths - Rwanda grain and cereals corporation is a solution for the beans farmers - sensitize privet sector to invests in storages facilities - Government to construct the wholesale markets Opportunities - Increased a high demand for beans - The local Government is putting in place local market infrastructure

Weaknesses - No organization of beans producers into cooperatives - Little/ input on extension support from Government - No improved post-harvest techniques or infrastructure current shelling techniques lead to losses. - No organization of seed production and distribution. - High losses in storage can occur due to weevil infestation if no protected. - Insufficiency on storages infrastructure - Farmers are not business oriented - No formal marketing except for WFP, P4P initiative - Lack of processing factory Threats - Replacement by soybean if large soybean processing factory established in Kayonza - Exploitation by middlemen

Weaknesses - Many middlemen - No standard for beans harvested - Limited storages facilities

Threats - Poor Road Networks Transport Means - High transport coast

And

Insufficient

75


PROCESSORS Strengths - High demand - Land consolidated program - New varieties of beans

Opportunities - Beans is both a food crop security for Hungary and source of in income - Adoption of improved technologies in agricultural and post-harvest management - The new varieties have already given by RAB. (Rwanda Agriculture Board)

Weaknesses - Inadequate working capital - Poor management - Lack of low material - No good bean quality - Insufficiency on storages capacity Threats - High energy costs - High transport costs - Poor quality of beans

For the growth of Agricultural production the plans from GoR are very ambitious. Unclear where the money and the land should come from.

76


Attachment â&#x20AC;&#x201C; 5 Telecom

MTN prepaid 90 day bundle rates (in RWF)

77


Report NICI VI: Ch.3.2.2. Private Sector Development [PSD] Projects Mission: “To develop a vibrant, competitive, and innovative ICT / ICT enabled private sector” To realize this mission and keep Rwanda’s private sector relevant to changing national and global trends, the following projects were chosen: PSD Project 1: Establish a Technopole; 2: e-Payment System; 3: Tourism Portal; 4: ICT Business Financing Mechanisms; 5: Virtual Landing Point; Project 6: Access Network; 7: e-Soko 2.0; 8: SMART Electricity Grid and Energy Market Design; 9: Establish a Commodity and Securities Platform; 10: Adoption of ICT Industry Standards.

Attachment-6 Social Security & Investments

78


References World bank & IFC: Rwanda country profile 2011 World Bank: Rwanda economic update April 2011 IFC: Doing business June 2012 Rwanda IFC: Rwanda country profile 2011 IFC: Geothermal exploitation and Development. 2010. UNCTAD. Un Investment Guide to Rwanda. Opportunities & Conditions. 2012. Michael E. Porter a.o. april 2011. Rwanda, National Economic transformation. Booth, D. and Golooba-Mutabi,F . Developmental Patrimonialism, The case of Rwanda. paper 16, March 2011 Njau, Barbara, June 2013. Africa struggles to shake negative image: Ernst & Young RDB. Rwanda Investor Info Pack 2012 Corporate Social Responsibility in the agro-food sector. The contribution of Dutch and European agro-entrepreneurs to sustainable local development and food security in Africa- IDS, Utrecht University. P. 78 – 94 Rwanda. May 2013. Huggins, C. Oct. 2012. Consolidation land, Consolidating Control: What future for smallholder farming in Rwanda’s ‘Green Revolution’? - (draft) LDPI. Huggins, C. Febr. 2013. Consolidating land, Consolidating Control: State-facilitated Agricultural investment through the ‘Green Revolution’ in Rwanda.- LDPI Working paper 16, final version. Review of Horticultural Investment Opportunities to Leverage Pro-poor Non-Traditional High-Value Commodities under SPAT- 3. EuropeAid: 127054/C/SER/multi. European Commission. July 2012. EDPRS II.May 2013. Economic Development and Poverty Reduction Strategy. GoR 2013-2018. Shaping our Development. PSTA III: Strategic Plan for the Transformation of Agriculture in Rwanda phase III. Minagri 2013. Rwanda Trade Policy and Strategies. Ministry of Commerce, Industry, Investment Promotion, Tourism, and Cooperatives (Minicom). 2009. Rwanda National Export Strategy (NES). GoR 2011. Annual Performance Report 2011-2012. Ministry of Trade and Industry. The 2011 East African Community Business Climate Index Survey. GoR: National Gender statistics report , March 2013. Natural Institute of Statistics Rwanda EWSA. Rwanda’s National Energy Policy. Febr. 2012. Wind Resource Assessment Rwanda. Mininfra, 2010 79


The Solar Energy Market in Rwanda. Target Market Analysis GTZ. www.renewables-made-inGermany.com Dec. 2009. Smith, Adam. International: Petroleum Sector Technical support – Rwanda. I.G.Thomson, 2010 Dutch Embassy, F. Smiet, 2012. Solar photovoltaic market in Rwanda. Presentation Rural Electrification Rwanda. EWSA, Jan. 2012. Presentation Rietveld, G. 2013. Outlook on Biomass pellets. Market & Biomass Processing Technology. ECN Rapid Value Chain Analysis for 5 Staple Crops. MINICOM Internal Trade Department. January 2013 The Strategic Plan for the Transformation of Agriculture -3 (2013-2017) The Economic Development and Poverty Strategy -2 (2013-2017) Comprehensive Food Security and Vulnerability Analysis and Nutrition Survey Rwanda, NISR, 2012 Rwanda Agribusiness market scan, May 2012. Laterite Ltd., Dutch Embassy East African Community. Facts & Figures Sept. 2012. Strategic and investment plan to strengthen the animal genetic improvement Rwanda. Final Report Aug. 2012, Minagri Livestock Infrastructure Support Program. African Development Fund. 2010. Strategy and Investment Plan for Small Animals Industry in Rwanda. Minagri, 2012. Masterplan for Fisheries and Fish farming in Rwanda. Minagri, draft 1 , 2011. Housing Market demand, housing finance, and housing preferences for the City of Kigali. Europe Aid, Final Report, June 2012. Informal Housing: Reducing disaster vulnerability through safer construction. Kigali, Rwanda. Worldbank, March 2012 RSSB Investment Policy Statement for the Pension Sheme Fund. July 2012 – June 2015. RSSB Investment Policy Statement for the Health Sheme Fund. July 2012 – June 2015. Affordable Housing Development Project Rwanda. RHA. 2012 Kigali Conceptual Masterplan. Kigali City Center, 2012 EuropeAid: Housing Market Demand, Housing Finance, and Housing Preferences for the City of Kigali. 2012. Final Report, Planet Consortium. Statistics and Tariff information in Telecom sector, Sept. 2011. RURA. RURA. Guidelines for fiber optic cables underground installation. 2013. Standards on the Management of Waste Disposal Site. RURA, 2009

80


RURA. National ICT Strategy and Plan NICI III 2011-2015. Plan NICI IV 2016-2010. REMA. Economics of Climate Change in Rwanda. SEI (Stockholm Environment Institute). 2009. Baseline Report. National Strategy on Climate Change and Low Carbon Development Rwanda. SSEE (Smith School of Enterprise and the environment). 2011. Oxford University Five year Strategic Plan for the Environment and National Resources (ENR) sector. 2009-2013. Ministry of Natural Resources. Ministry of Health, annual report 2011-2012. Rwanda anti Corruption Policy. Office of the Ombudsman. June 2012. Legal Aid Forum. Broadening Access to Justice in Rwanda: Analyzing the opportunity for public interest litigation. 2012. Rwanda State of Environment and Outlook. REMA, 2009 Environment and Climate Change Fun (Fonerwa) Design Project. Final Report, REMA, 2012 General Guidelines and Procedures for Environmental Impact Assessment (EIA). REMA, 2006

Links Rwanda: www.gov.rw East African Community (EAC): http://www.eac.int Comesa: www.comesa.int ; http://comstat.comesa.int/Home.aspx Worldbank: http://www.worldbank.org ; http://www.worldbank.org/en/country/rwanda http://search.worldbank.org/data?qterm=rwanda&language=EN IFC: www.ifc.org Banks in Rwanda: http://www.rwanda-rwanda.com/banks-rwanda-rwanda.html National Bank of Rwanda www.bnr.rw The Ministry of Local Government (MINALOC) www.minaloc.gov.rw The Ministry of Infrastructure (MININFRA) www.mininfra.gov.rw Rwanda Housing Authority (RHA) www.rha.gov.rw Rwanda Transport Development Agency (RTDA) www.rtda.gov.rw Informal Housing: Reducing disaster vulnerability through safer construction. Kigali, Rwanda. World Bank, 2011. Energy, Water and Sanitation Authority (EWSA) www.ewsa.rw The Ministry of Trade and Industry (MINICOM) www.minicom.gov.rw The Ministry of Agriculture and Animal Resources (MINAGRI) www.minagri.gov.rw The Ministry of Finance and Economic Planning (MINECOFIN) www.minecofin.gov.rw The Second Economic Development and Poverty Reduction Strategy (EDPRS 2) www.edprs.rw The Ministry of Education (MINEDUC) www.mineduc.gov.rw The Ministry of Health (MINISANTE) www.moh.gov.rw The Ministry of Defence (MINADEF) www.mod.gov.rw The Ministry of Justice (MINIJUST) www.minijust.gov.rw The Ministry of Youth and ICT www.myict.gov.rw The Ministry of Sport and Cultural (MINISPOC) www.minispoc.gov.rw The Ministry of Public Service and Labour (MIFOTRA) www.mifotra.gov.rw The Ministry of Internal Security (MININTER) www.mininter.gov.rw 81


The Ministry of Foreign Affairs and Cooperation (MINAFFET) www.minaffet.gov.rw The Ministry of East African Community (MINEAC) www.mineac.gov.rw The Ministry of Natural Resources (land, forests, Environment and Mining) www.minirena.gov.rw The Ministry of Disaster Management and Refugees (MIDIMAR) www.midimar.gov.rw The Ministry of Gender and Family Promotion (MIGEPROF) www.migeprof.gov.rw Rwanda Development Board www.rdb.rw Rwanda Private Sector Federation www.psf.org.rw Rwanda Utilities Regulatory Authority (RURA). http://www.rura.gov.rw Rwanda Social Security Board (RSSB) http://www.csr.gov.rw EAC: http://www.trade.eac.int and for investors http://http//www.invest.eac.int Legal Aid : www.legalaidrwanda.org Rwanda Meteorological Services www.meteorwanda.gov.rw International index : www.indexmundi.com

List of Abbreviations ADF AfDB AGOA AMIS B BPO CAPEX CIDA CEPGL CIP CO2 CH4 COMESA CRC CSR DFID DP DRC DU EAC ECCAS EDPRS EIA EII EKN ENR EPC EU EWSA FAO FDI FFS FOC GAFSP GDP

African Development Fund (from AfDB) African Development Bank African Growth and Opportunities Act (for U.S. market) Agricultural Management Information System Billion Business Process Outsourcing Capital Expenditure Canedian International Development Agency CommunautĂŠ Economique des Pays des Grands Lacs Crops Intensification Program Carbon Dioxide Methane gas Common Market for Eastern and Southern Africa Citizen Report Card Corporate Social Responsibility (guidelines) Department for International Development (UK) Development partner Democratic Republic Congo Dwelling Units East African Community Economic Community of Central African States Economic Development and Poverty Reduction Strategy 2013-2018 Environmental Impact Assessment Erasmus Investments International Embassy of the Kingdom of the Netherlands Environment and National Resources Engineering, Procurement & Construction European Union Energy, Water and Sanitation Authority Food and Agriculture Organization Foreign Direct Investment Farmer Field Schools Fiber Optic Cable Global Agriculture and Food Security Program (World bank) Gross Domestic Product 82


GoR GLE HIV IDA IDEC ICT IFAD IFC IRR JADF JICA KCC KV kW kWh kWp LOI LTR M MCC MFI MIFOTRA MIGEPROF MMT MINAGRI MINALOC MINECOFIN MINECOM MINEDUC MININFRA MINIRENA MINISANTE MOU MW MWh MWp MWe NAEB NES NGO NISR OGMR OPEX OSC PAIGELAC PEC PPP PSD PSF PSTA II PV RAB RADA

Government of Rwanda Great Lakes Energy Human Immunodeficiency Virus International Development Association (World bank) Industrial Development and Export Council Information and Communication Technology International Fund of Agriculture Development (UN) International Finance Corporation Internal Rate of Return Joint Action Development Forum Japan International Cooperation Agency Kigali City Center Kilo Volt Kilowatt Kilowatt hour Kilowatt peak ยน) Letter of Intend Land Tenure Regularization (Program) Million Milk Collection Center MicroFinance Institution Ministry of Public Service and Labor Ministry of Gender and Family Promotion Mobile Money Transfers Ministry of Agriculture and Animal Resources Ministry of Local Government Ministry of Finance and Economic Planning Ministry of Trade and Industry Ministry of Education Ministry of Infrastructure Ministry of Environment and Natural Resources Ministry of Health Memorandum of Understanding Megawatt Megawatt hour or Megawatt heat Megawatt peak Megawatt electricity National Agriculture Export Board National Export Strategy Non-Governmental Organization National Institute of Statistics, Rwanda Rwanda Geology and Mines Authority Operational Expenditure One Stop Centre Inland Lakes Integrated Development and Management Support Project Peat Energy Company Public Private Partnership Private Sector Development Private Sector Federation Strategic Plan for the Transformation of Agriculture II Rwanda Photovoltaic Rwanda Agriculture Board Rwanda Agricultural Development Authority 83


RARDA RBS RCA RCF RDB REC REFIT REMA RHA RHODA RIEPA RIG RNRA ROA ROI RRA RSE RSSB RURA RWF SACCO SADC SEZ SME’s SPAT 3 SSP TVET UN USAID VAT WFP WHO WTO ¹)

Rwanda Animal Resources Development Authority Rwanda Bureau of Standards Rwandan Customary Authority Rwanda Chamber Foundation Rwanda Development Board Rwanda Energy Company Renewable Energy Feed-in Tariff Rwanda Environmental Management Authority Rwanda Housing Authority Rwanda Horticulture Development Authority Rwanda Investment and Export Promotion Agency Rwanda Investment Group Rwanda Natural Resources Authority Return of Assets Return on Investment Rwanda Revenues Authority Rwanda Stock Exchange Rwanda Social Security Board Rwanda Utilities Regulatory Authority Rwandan Franc Savings and Credit Cooperative Southern African Development Community Special Economic Zone Small and Medium Enterprises Strategic Plan for the Transformation of Agriculture in Rwanda 3 Sector Strategic Plan Technical and Vocational Educational Training United Nations Organization United States Agency for International Development Value Added Tax World Food Program (UN) World Health Organization World Trade Organization 1 panel=250 Wp. 1 hour x 250 Wp=250 Wh = 0.25 KWh

84


Kigali. Source: New RDB infopack 2013

85

Preliminary report parta 2 4  
Read more
Read more
Similar to
Popular now
Just for you