Rwanda is seeking to position itself as a new investment destination in Africa by easing investment rules and introducing business reforms.
According to the Rwanda Development Board (RDB), the reforms have been established to create a transparent and competitive business environment.
“These include simplifying and digitalising government services, developing Special Economic Zones, investing in infrastructure and connectivity, and improving mechanisms for investor facilitation,” RDB told The Rise Review.
The government’s official investment promotion body further said that it has integrated investment challenge mitigation services to create investment opportunities that generate quality employment.
“RDB works with investors and relevant government institutions to facilitate project implementation, address operational challenges, and support expansion and reinvestment.”
These reforms align with Rwanda’s Second National Strategy for Transformation (NST2), which sets investment and financing targets aimed at driving economic growth.
Under the strategy, investment is projected to increase from US$2.2 billion in 2024 to US$4.6 billion by 2029, bringing total investment to 32.1% of gross domestic product (GDP) by the end of the period.
To create a favourable investment climate, the government has introduced several business reforms, including incentives under the Manufacture and Build to Recover Program and the establishment of the Kigali International Financial Centre (KIFC).
In 2021, Rwanda adopted significant changes to its investment code to address concerns previously raised by investors.
The changes introduced incentives targeting exports and manufacturing industries, including textiles and apparel, electronics, and information and communication technology equipment, as well as large-scale agricultural operations.
KIFC is another initiative aimed at attracting international investors by connecting them with opportunities across African markets and offering eligible businesses preferential tax incentives.
According to economist Prof. Egide Karuranga Gahima, the centre is designed to serve investors beyond Rwanda and the African continent.
“It is not intended to serve Rwanda alone, it is designed to serve the wider world. Someone in Hong Kong or Tokyo who wants to invest money in Africa could say, there is an institution in Rwanda that can facilitate this. The idea is that deals could be conducted through Kigali,” Gahima told The Rise Review.
Gahima said Rwanda’s business registration procedures and support services could also influence investors’ decisions.
“When investors arrive in Rwanda, there are many services they can access within a few hours, without having to wait several days,” he said, pointing to the ease of business registration in the country.
He also cited Rwanda’s land registration system, which uses Unique Parcel Identifiers (UPIs), and its legal framework as factors that give investors confidence.
“Another important factor is that the law works here. What is written in the law is what is implemented, and what you are legally entitled to receive is granted without someone having to intervene on your behalf. This differs from my experiences in other countries,” he said.
He also highlighted the development of specialised business hubs, where companies and institutions operating in related sectors can work alongside one another.
For example, the health zone in Masaka is intended to bring together hospitals, pharmacies and health-related universities.
Beyond these measures, the Rwanda Development Board has identified Kigali Innovation City as another initiative attracting interest from international organisations, investors and potential business partners.
Built around an education and research ecosystem, the initiative aims to position Kigali as a hub for innovation, skills development and technology-driven enterprises.
Access to regional markets
In addition to investment reforms and domestic business opportunities, Rwanda’s position as a gateway to wider African markets makes it attractive to international investors.
The country belongs to several regional and continental trade arrangements, including the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the African Continental Free Trade Area (AfCFTA).
According to a US Department of Commerce report, “Rwanda is a gateway to the EAC (353.8 million consumers), COMESA (583 million consumers), and AfCFTA (1.4 billion consumers).”
Access to these markets allows businesses operating in Rwanda to reach customers beyond the country’s relatively small domestic market.
“Although Rwanda has a small domestic market, it is a good place to do business because it provides access to many markets across the region,” Kananura said.
Security and investor confidence
Alongside regional market access, security is another factor that may influence investors’ decisions.
Speaking to The Rise Review, Gahima pointed to Rwanda’s internal security as one of the factors contributing to its appeal to private investors.
The US Department of Commerce also identifies security as an advantage for businesses operating in Rwanda.
“Rwanda benefits from low violent crime rates. Its strong police and military provide a security umbrella,” the department states in its report.
These factors strengthen Rwanda’s appeal as an investment destination, particularly for businesses considering operations in a region where insecurity and instability can affect commercial activities.
Rwanda’s performance in international corruption assessments may also shape perceptions of its business environment.
According to Transparency International’s Corruption Perceptions Index, Rwanda ranks among the better-performing countries in Sub-Saharan Africa and first in East Africa in terms of perceived public-sector corruption.
Rwanda’s business environment
Rwanda’s efforts to improve its business environment have therefore received international recognition.
According to Rwanda Development Board’s account of the World Bank’s 2025 Business Ready assessment, Rwanda performed strongly in the areas of regulatory framework and operational efficiency.
“Rwanda ranked first in Africa on the 2025 World Bank Business Ready Index, recorded Africa’s highest score for regulatory framework, achieved Africa’s highest and the world’s 12th-highest score for operational efficiency and ranked as the only Sub-Saharan African economy in the top tier,” the RDB report states.
Investment activity and capital inflows
These reforms and other factors provide context for Rwanda’s investment performance.
According to the National Institute of Statistics of Rwanda (NISR), foreign private capital inflows reached US$1,098.5 million, an increase of 23.9% from US$886.9 million in 2023.
Financial services accounted for the largest share of these inflows, at 27.2%, followed by manufacturing at 24.3%, according to the report.
Meanwhile, RDB reported that registered investments reached US$2.62 billion across 799 projects in 2025, up from 612 projects in 2024, and the projects are expected to generate more than 38,000 jobs.
Real estate attracted US$855.5 million, followed by manufacturing, including agro-processing, at US$738.5 million, and mining and quarrying at US$346.9 million. Together, these accounted for 74.2% of registered investments, RDB states.
Other sectors recording increased foreign investment included utilities, tourism and transport. However, inflows into information and communication technology and wholesale and retail trade moderated.
The latest foreign private capital data point to a mix of regional and international sources — mainly Kenya, China, the United States and Germany among the contributors to increased inflows, while inflows from Mauritius declined.