Rwanda: 6 Mind-Boggling African Business Opportunities You Must Not Miss!

Rwanda: 6 Mind-Boggling African Business Opportunities You Must Not Miss!

I am back! I have just returned from my business trip to Rwanda and I am buzzing with energy and excitement! The country is full of mind-boggling African business opportunities, you must not miss!

But above all: They are available in a country rating extremely low on red tape and corruption, and high on personal & investment safety, effectiveness, business incentives, oh….and an amazing level of cleanliness in its capital city Kigali that must be seen to be believed. It looks like someone is hovering through the streets and parks with a mega vacuum cleaner in hand whenever the city is at sleep. I absolutely love it!

Many of you know that this was my second visit to Rwanda within a year and this time, it was intense, but exceptionally successful. I assisted clients with their market entry strategy in Africa. I set up 2 meetings with my contacts at the Rwandan Development Board (RDB) for Monday morning. This is how it works in Africa. You can’t expect a neat line-up of meetings for the entire week. When you take the right approach, people will see you. 

By Monday evening (yes, same day!) we had registered a local business and by Friday evening I had banked a whopping 26 meetings with major stakeholders across industries – yep 26. Only possible because in Kigali you can hop from one office to the next in 15 mins – the city is easily overlooked and does not suffer from traffic jams. This was my extreme African approach to local market assessment with a strict time limit. (Well, and I shall add that I never had a problem with knocking doors in Africa. Literally. It always works better than sending an e-mail)

Today, I would like to take the opportunity to share with you some of the amazing opportunities I have come across during my recent business trip where I met with a wide range of government stakeholders and local business owners. I am happy to make you aware of valuable details you would hardly read about anywhere else – having said that, of course this is only an article, so I will pack into it as much as I can.

By the way, also read my Best Business Advice from Kenya – where I share similar business secrets for the Kenyan market.

So let’s get started – shall we?! 

1. Kigali needs 400,000 housing units – and fast!

Rwanda has a worrying shortage of housing units, and the capital Kigali alone is in need of 400,000 of them in the next 10 years. This year only 1000 units have been built! Talking to a variety of high-profile stakeholders in Rwanda’s construction and real estate sectors it became quickly clear that there was in particular a huge need for affordable housing, so much so, that the government offers a variety of significant incentives in this regard. I did a very detailed assessment for my clients in this sector and I can tell you the opportunities are vast and very profitable.

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Visiting a low-cost housing development project just outside of Kigali, Sept. 2015

In fact, the whole issue of building houses is surrounded by a true sense of urgency and related departments are under a lot of pressure to deliver.

Keep however in mind that your investment in affordable housing will somewhat require a mass approach in the long-run, as profit margins will be relatively small. High-end and luxury housing is also in high demand. Profit margins are much higher, but you will not receive government incentives on imports and taxes in this regard.

I have more news for you: Rwanda needs bricks. There are only 2 commercial brick factories in the country, one producing from cement and the other one from clay. One high-end housing constructor told us he had to wait 4 months for his order of bricks to arrive. So here you go, start manufacturing good quality bricks (the ones in demand), and you will have orders flowing in before you have even started production. Both cement and clay are available locally, and just recently Rwanda increased local cement production 6-fold covering now the greatest deal of local demand. There is a similar situation regarding the demand for tiles, by the way.

 

2. Huge need for locally produced packaging….think biodegradable!

I was told that there were huge shortages of local packaging material of all sorts and shapes. This was in particular a problem in Rwanda’s fast growing food and agricultural sector. Now, here is the catch (and opportunity!): Non-biodegradable plastic bags were outlawed in Rwanda in 2008 leaving a vacuum in the packaging sector and the food industry…and this is where you are needed!

Some paper bags or biodegradable are imported, and that makes them expensive for many local businesses to use.

Just a simple example: A sambusa in a restaurant costs Rwf 100, if you want to buy it for take away, it needs to be wrapped. But a nice looking imported paper bag costs  Rwf 20 to Rwf 100. Some local foodstuff sellers use locally recycled bags that cost Rwf 5-10, but there is a lack of availability and as a result, many simply use newspapers, although they are not allowed.

However the shortage of packaging material seriously affects larger local traders, too, especially those who want to export. While the government works hard on boosting exports, the lack of packaging has now been identified as a significant hurdle.

This is where you come in! And biodegradable packaging will be high up on the list, as your material needs to be approved by the National Environment Management Authority (NEMA) and the Bureau of Standards before you can start production, and they are clearly looking for environmentally sustainable material.

And, I was told, there was also a particular shortage of container lids.

 

3. Tourism sector is very profitable – but don’t run a hotel

The tourism sector remains to be a top earner of Rwanda’s GDP, in fact, it has been growing rapidly in the last two years – a development that stands in stark contrast to the tourism industry of its regional big brother, Kenya.

Rwanda has wonderful wildlife to offer, including elephants and rare birds that people want to see, I have been told. But it is undoubtedly the conservation of Mountain Gorillas that brings in the biggest chunk of revenues.

On a less enthusiastic note, my insider tells me that Rwanda also sees an increase in ‘historic tourism’, as a lot of people show growing interest in learning about Rwanda’s terrible genocide in 1994.

Interestingly, the same insider also runs a mining company for cassiterite, wolfram, and cobalt – and according to him, the tourism company does better, because mining, although very profitable was at the moment hit by declining and overall vastly fluctuating prices, which posed a major challenge to smaller companies. 

The fast rising travel and tourism sector in Rwanda has prompted major international hotel chains such as Hilton, Marriot, Sheraton, Kempinski and Radisson to plan outlets in the country.

But I advise you not to invest in setting up a hotel yourself. Although room prices per night remain ridiculously expensive in Kigali (no idea why that is) a hotel manager and a real estate agent are both telling me that business in this regard is somewhat slow. There are too many hotels in Rwanda now and competition is simply too big. 

So, here you have it – gorilla tours yes, hotel based hospitality no.

 

4. Local businesses are looking for you !

One aspect that surprised me was how many of the local businesses and government stakeholders mentioned that they were looking for both investors and buyers who could improve the capacity of already established companies.

It was such a significant pattern that I decided to include it here in my very personal list for Rwanda business opportunities. A quick overview:

a. I was told by a representative of the RDB that the local commercial brick factories are looking for investors to increase their production capacity. They struggle to meet local demand.

b. A small mining company is ready to sell its mining processing arm. It owns several machinery for processing and rapid laboratory assessment and I was asked by the founder and managing director to spread the word that it is looking for buyers.

c. Local housing contractors are looking for partners from abroad, so they can build more houses.

d. Rwanda has just released its first made-in-Rwanda high-speed laptop and while the last formalities are happening, the local production company will soon be looking for local distributors across Africa.

I am sure there are many more opportunities, and in most cases local manufacturing businesses in particular seem overstretched with the task at hand and have an urgent need to expand their capacities.

 

5. Secret strategy to success in Rwanda’s coffee export

Rwanda’s second largest export crop took a knock in 2012 due to a glut in the market which pushed down prices

I visited the Rwandan Coffee Exporter Association and loved the sight of their huge compound. You hear the chatting of a couple of hundreds of women sorting the coffee beans under an open-air shade, you smell the wonderful scent coming out of the roasting hall, and wonder about the magnitude of their warehouse. Although I grew up in Germany and I am of Eritrean origin (both strong coffee drinking nations) – I prefer my green tea to keep me hydrated and healthy, but I could not resist to admire and was blown away by the coffee export compounds: It looked like such a happy African business world to me.

But of course, all is not rosy. I spoke to one of the directors of the National Agricultural Development Export Board and was told that most of Rwanda’s coffee was shipped to the auction in Mombasa (Kenya) and great quantities are traded with large buyers from the US and Europe directly. That made the coffee farmers very prone to global market fluctuations, and when prices went down it seriously impacted the coffee farmers and ultimately resulted in poor motivation and bad management.

It was part of the global coffee trade, but, I was told, there was an effort to improve the local value chain (process, package, and brand it locally). Further – hear this – to grow and develop Rwanda’s high-quality speciality coffee and link those particular farmers to smaller traders and outlets who were less affected by fluctuating global commodity prices and who were prepared to buy directly from the source.

Sounds like a great start-up focus. Sustainable and profitable niche development in speciality coffeee is where you can come in!

 

6. Local ICT hub opens small Investor Fund – and you can put your money in!

I managed another short visit at Rwanda’s amazing tech / ICT hub, the Klab. It is buzzing with amazing young talents and this platform will be right at the center of Rwanda’s ambitious development plans to grow into a regional ICT hub in Africa. That’s why they are now expanding their offices into another floor.

One of the Klab managers who welcomed us with an extra-large smile made us aware that they are now opening an Investor Fund. This will enable small investors – be they local, foreign, or from the Diaspora – to put small amounts of financial capital into the fund. I think it is a brilliant effort, as there are many small investors who would love to invest in Africa, and don’t know where to turn. ICT/tech has usually an above average ROI across the world offering a wonderful opportunity if you have a few thousand Dollars to spare. The first round, I was told was looking at a fund size of just US$50,000.

Now you have an avenue to put your money into Rwandan tech start-ups within a regulated environment and I will share more about this particular opportunity on my home page soon, so watch this space!

In closing I want to say how hopeful it has made me to see an African country turn from unrepresented brutality and tragedy into a country of triumph. The horrors of the genocide have not left the memories of Rwandans, but in the country now lives a strong desire for development and progress and that can be felt where ever you go. Rwanda is not only buzzing with entrepreneurial spirit and national ambition, but it has become an African market that leads by example in many ways.

For me, doing business in Rwanda is not just another option: Continuous market growth and a uniquely enabling business environment have turned it clearly into a smart strategy available to anyone looking for success in Africa.

And while I plan to visit some new markets in Africa, I shall be back in Rwanda very soon!

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I would love to hear your comments and questions!  And if you’d like to get my latest articles on Africa business opportunities and tips as soon as they are published, feel free to click the little box ‘Notify me’ below the comment section. 

 

 

And still. Let’s be defined what dosage in this case approaches most of all. There can be it cialis 20mg or something another. To me I think it isn’t necessary to choose for you necessary. Think. Perhaps suits you cialis 20 mg It is much better.

Dr. Harnet
Dr. Harnet Bokrezion is the Founder of africajumpstart.com and co-author of the book '101 Ways to Make Money in Africa'. She coaches individuals and consults existing companies assisting them to make smart and strategic business decisions in Africa’s new emerging markets faster and more confidently. Dr. Harnet also regularly writes for the renowned DHL powered publication howwemadeitinafrica.com. Get in touch to inquire how she can be of assistance to your own Africa business endeavors: harnet@africajumpstart.com

User Comments ( 47 )

  • You always have more than one under your sleeve!
    Interesting findings…three things that struck at first glance is the organisation, efficiency and effectiveness of getting things done. I need the Rwandan spirit of business in my corner.

    • Dr. Harnet

      Thanks so much for your kind feedback, Mayowa. Yes, indeed the level of efficiency is standing out in Rwanda and that saves one ultimately a lot of energy and money. But I believe that most growth markets have something else working strongly for them. And while the business climate in Nigeria for example is much more challenging the market potential and skilled man power there is of great benefit. It may take some time to turn the markets into the perfect packages…. apparently the fun (and money!) lies in the challenge 🙂

  • Sakiru Raji

    l run a zoological garden in Lagos, Nigeria and l need wild animals especially from up and coming tourism destination country like Rwanda to partner with. What are the possibilities?

    • Dr. Harnet

      Hi Sakiru

      Thank you for your question. This one is very specific indeed, so I have to say I really don’t know. But I would call up or write to the Rwanda Development Board (RDB) or the Rwandan Export Association, you will be surprised how helpful most are – why don’t you give it a go?

  • Yohannes

    Hi Dr. Harnet, thank you for the incisive report about your visit to Rwanda. I lived and worked in Kigali immediately after the genocide while working for the UN Department of Humanitarian Affairs (DHA now OCHA) and the UN Human Rights Office. I did not visit Rwanda since those turbulent times but many of my former colleagues and friends tell me of the incredible changes happening in Rwanda. Your report confirmed this but with more clear examples of the opportunities available now. Thank you. I will plan to visit Kigali in the near future while I am around the corner.

    • Dr. Harnet

      Hi Yohannes

      Thank you so much for sharing your insights. I hope you will visit Rwanda again very soon, it will be worth it, and surprise you positively on many levels!

  • Sandhu

    After reading one of your newsletters on Kigali we got interested in Rwanda. However, there was lack of info on availability of serviced industrial plots, availabilty of electricity, quality of potable water and cost of transporting goods from Mombasa or Dar es Salaam ports. Also, ease of exporting to neighbouring countries.What is your opinion on these points. Thanks

    • Dr. Harnet

      Dear Mr Sandhu

      I sincerely apologise for a late reply. Thank you for your interest and questions. Serviced industrial plots are available. There is a Special Economic Trade Zone just outside of Kigali that is fully serviced with new roads, water, electricity etc and available to foreign investors. The first zone is now fully booked and operational with companies from East Africa, China, India, Emirates, and one German etc – but a new second zone has just been opened and is available to interested parties.

      There are also land plots outside of Kigali that have been marked as ‘commercial land’ by the City of Kigali. I have visited a couple of sites – water and electricity are sufficiently available, but some roads are not completed (but part of the plan for 2016). They are somewhat cheaper than the Special Economic Zones.

      I am not sure about the exact costs for the transport of goods from the ports, but it is still relatively expensive and above world average. Having said that a rail way construction from both ports to Kigali is underway, though it will take years, it will cut cost and time long-term.

      Exporting into neighbouring countries is easy and supported by local stakeholders. There are not many trade barriers, especially when exporting to the East AFrican Community. You will need customs duty and possibly related documents from a line ministry (depending of the kind of goods) etc, which we all got in a few hours, or it may take maximum of 2-3 days and you are ready to go. Civil servants are very efficient in Rwanda, so not much time or bribes are required and you get the job done.

      I hope this helps, let me know if I can be of further assistance to your undertaking. You can write me at harnet@africajumpstart.com

  • Francis

    exquisite piece and an eye opener into the world of business i could invest in another country- am from Kenya but i can follow that money trail all the way to Rwanda- thanks for this informing article

    • Dr. Harnet

      Hi Francis
      Thanks and I am glad the article inspired you. You have many opportunities in Kenya, but in certain areas Rwanda may work wonders for you, and this is probably why you will find that several Kenyans have started businesses and investments there.

  • Thank you as always Dr. Harnet for the info in Rwanda worth paying attention to .

    • Dr. Harnet

      You are very welcome, Eyob, I am glad you found it interesting. All the best!

  • Pieter Burger

    Thank you for a very insightful article. I am looking to buy essential oils from producers and other suppliers in Rwanda and other African countries. Do you have any contacts for me, please

  • Grace Mumbi

    Great piece of info.

  • Tony

    Can anybody pls give info on the state of SEC (Special Economic Zone) near Kigali and other places ?

    • Dr. Harnet

      Hi Tony. I can give you some info on the Special Economic Zones near Kigali. What questions do you have?

    • Dr. Harnet

      Dear Tony

      Thanks for that! I have just replied with more details on the SECs in Kigali in a comment above for Sandhu. I hope this information helps. Let me know when you have more questions or how I can be of further assistance!

  • Dr. Harnet

    My guest post has just been published:

    “9 Reasons why doing business in Rwanda is a smart strategy”

    http://www.howwemadeitinafrica.com/nine-reasons-why-doing-business-in-rwanda-is-a-smart-strategy/52274/

  • I have heard about how calm, clean and peaceful Rwanda is and have even gotten more interested in the country following your series of posts on it. The information about starting a business in Rwanda seems clear and easy but I am just wondering if this is the same for foreigners wanting to establish their businesses in the country. Are there minimum capital amounts required? Can one start a business from scratch in Rwanda as a foreigner or it should be incorporated in their home country?

    • Dr. Harnet

      Hi Tari

      Good to see my article has sparked some interest in you and thank you for your questions: There is no disadvantage to you as a foreign investor. I have just returned from a trip to Rwanda assisting Polish investors with their market entry in Africa and the process is made very clear and easy. You can start a business from scratch and register as a local company or a branch of an existing foreign company – it is entirely up to you. Both take 1 business day, but you will need more paper work for the later option. No minimum capital amount is required for foreign lead businesses or investors. Let me know if you need more information!

      And I would like to welcome you here at our Africa Business Jumpstart Community!

  • Tony

    Dr. Harriet, Thank you for your response and the info on SEZ (ref your response to Mr.Sandhu). I very much believe in always having a local partner who obviously knows his country and region better. How can we find such a business partner who is prepared to invest either financially or, better, through is sincere sweat ?

    • Dr. Harnet

      Hi Tony, it won’t be a problem. May I ask which industry? Then I may be able to give you a more detailed response.

  • Tony

    Dr. Harnet, I am interested in the alcoholic beverages industry i.e whisky, vodka and wines including banana wine and will mean importing,distributing and producing locally in Rwanda.

    • Dr. Harnet

      Hi Tony

      Thanks for that. I have to say I do not have any concrete information on beverages, I can only give you some overall information. A great amount of Rwanda’s food and drinks get imported – I was strolling through local supermarkets (as part of my research, I am sure the staff wondered what on earth I was doing 🙂 ) and you see a lot of produce of Kenya, Uganda, and South Africa. I would assume that most alcoholic beverages will be imported from Kenya or South Africa, as they either produce it locally or have a strong distribution system. In fact, I can tell you that even most fruit juices in Rwanda’s supermarkets were imported from the region!

      Besides, we were given a tour through the SEZ and foreign food processing or beverage manufacturing companies were not among them. I also read a recent article that local producers were filling the alcohol into plastic bottles and that has now been banned by Rwandan authorities over health concerns – they have to sell it in glass bottles from now on. So it shows you that the market seems pretty underdeveloped when it comes to local manufacturing of alcoholic beverages.

      The fact that the restaurant, hotel, and tourism business is on the rise in Rwanda and that it heavily depends on beverage imports would make a strong case for you. I suggest you visit Rwanda soon, or contact the RDB for more concrete information. Hope this helps a little!

  • Olaoye

    The level of information here is so uplifting and challenging I am an architect trained in Nigeria interested in rwanda brick production section .

  • Suhail Al Kindy

    Hi Dr. Harnet,

    Thank you for being so open in providing many business opportunities in Africa . I was surfing about Rwanda and I didn’t go any further not only because of your pretty face but the details of so many opportunities you provided.
    I have been to Rwanda twice this year looking at different opportunities
    Mining is one sector. In your article Rwanda 6 mind boggling you mentioned about one of the Local Businessmen in Mining looking for buyers i was wondering if you have his contact ,i dont know when you will see this post but i am going back as early as next week monday 26th October.
    Keep up the good work and I look forward to hear from you soon.
    Best Regards Suhail

    • Dr. Harnet

      Hi Suhail

      Good to hear about your business interest in Rwanda. I have just forwarded you the details of the mining company via e-mail. Hope this helps!

      • Suhail

        Thanks very much Dr. Harnet for your prompt respond will be in touch

  • Suhail Al Kindy

    Forgot to tick Notify me. Thanks

  • J.Dev

    Hi Dr. Harnet,

    I appreciate your gesture to put this article so articulately. Been in Rawanda couple of times on Company business promotions while in Tanzania and liked the place on first site, it’s heaven in all respect. I will love to work here..
    Business option are quite high as you have rightly quoted and increasing in multi fold as economy is growing among the best over here.
    Thanks.
    J.Dev

    • Dr. Harnet

      Hi J.Dev

      Thank you very much for sharing your own personal impressions about Rwanda as a business destination with us.
      It’s much appreciated. We are also looking forward to any insights you may have on Tanzania.
      Thanks again and a warm welcome to Africa Business Jumpstart!

  • Reggaeafrica

    Thank you Dr. Harnet for your insights into doing business in Africa and particularly Rwanda. What particularly motivates me is the fact that there is no minimum capital required as a foreign investor in Rwanda. My question though, is there a limit as to what type of businesses a foreigner can do? That limitation exists in Ethiopia and is a huge deterrent.
    Thanks for this great job you are doing.

  • Rita

    Tourism great . I’ve been wanting to start a travel agency that puts together tours in various parts of Africa !!!! Just came across this site and read about 20 articles great stuff

  • Abdisalam

    Dear Dr. Harnet,

    It was impressing to read your feedback about the business opportunities in Rwanda, particularly in the sectors you have mentioned or advised as to open business viability in the country, I am not sure what is the current situation of the sectors you pointed out in your report at this moment, they could be less attractive or filled-out, I would, therefor , like to have upt-date information about the sectors that you have emphasized for business investment opportunities in Rwanda, what are the capital investment needed for instant : (Packaging and the capacity for this factory ) , Construction, Tourism ( Gorilla Tour) and ICT &Telecom.

    I am currently planning to visit to Rwanda and to be honesty you feedback and comments about the business opportunity in Rwanda is energizing

    Regards,

    Abdisalam

  • Seamus lenihan

    send me updates

  • GEORGE

    love this artical on Rwanda, been their ounce but next time am there i willl have a few places to start thanks ,

    • Dr. Harnet

      Hi George

      Great to hear that and yes, Rwanda is an exciting market.
      A warm welcome to Africa Business Jumpstart!

  • Hello Dr. Harnet,

    Thank you for sharing very informative article, its help a lot to moving and expanding business in Africa continent.

    For 3 days I have been searching and looking to internet doing business in Africa especially (Tanzania, Rwanda, Kenya) now I must say I’ve come to the right place 🙂

    I am doing business of provide consultancy and development of programs (website design, software design, mobile application development and many more) in Pakistan for more than 3 years. Now I am looking to expand at-least in one country of Africa,

    After reading you article I am much excited to go there ASAP

    Can you also please highlight me with the market of I.T and also share some contacts belong to my industry.

    Thanks very much

  • Xave

    Hi Dr Harvey
    I am South African and would like to import coffee from Rwanda. What would be the first thing for me to do? Do you have any contacts?

  • Leon

    Thanks Dr for sharing information.
    Am from Rwanda and I have also some info which can help. currentry am working in coffee exporters company. i can help others to find info in everything they want. like xave who need coffee and pieter for essential oils even any sector because am in the field. plrase help me meet them. u can give them my email. please feel free to contact me.

  • My friend and i are planning to visit rwanda and try look at the branding side of business and help them with there marketing Nd brand design, hope will be able to find Smes willing to be helped take theif company to the world, just me a ddsigner (tailor) annd a friend an it guy from, Zimbabwe, planning to go jn august

  • Berhane Zerom

    Dear Dr. Harnet,

    First of all a huge thanks for your insight into the ever progressing Rwanda. I am an Eritrean like yourself living in the US and deeply connected to Rwanda and its people through a non-profit foundation that a friend of mine and I started back in 2009. We built a school for the community of Kimony in Kagina (a district outside of Kigali) and I visited the country and the school in 2014. I am going back this June to continue my work with the school but believe it or not, that has been my only focus when I traveled in 2014 and I spent my entire 2 weeks at the school with the students. Your article got me into thinking that I should be doing more. I am a teacher and business was never something I though I could do. I do need people like you for an advice and I am not sure of where to start. I hope to hear from you.

    Thank you.
    Berhane

  • Rosemary

    Thank You Dr. Harnet for this invaluable information. Like so many on here I am grateful I stumbled on your article. I have a yearning…. actually a burning desire to go back to Africa and empower my brothers and sisters. I am an African born American nurse, HIV & AIDS educator. I would love to be connected with someone on Kigali who can work with me on setting up a business in the health field. I am also a beeker and would bring this knowlege to empower locals. I believe in being charitable. Which means a successful business would be used as a means to educate and empower my fellow brothers and sisters to find self sustinence as beekeepers.

  • Charles

    its good to learn from the business experience in Rwanda

    i am very exited.

    i have exciting products tea products – instant tea both from black and green tea , factory packed hygienically.

    try these products , tea is good for you !

  • Nnamdi

    notify of new write ups

  • Thembi

    I am interested in financial service sector-purchase order financing business opportunity in Africa

  • Rick

    Hello live in Canada have a road building business and we build houses can I make money in rawanda Tx