Facilitator: Fokko Wientjes, Vice-President, Sustainability and Public-Private Partnerships, Royal DSM
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1 Rwanda Country Session Presenter: Tony Nsanganira, Minister of State in charge of Agriculture, Rwanda Facilitator: Fokko Wientjes, Vice-President, Sustainability and Public-Private Partnerships, Royal DSM
2 Rwanda Country Session Presenter: Tony Nsanganira, Minister of State in charge of Agriculture, Rwanda Facilitator: Fokko Wientjes, Vice-President, Sustainability and Public-Private Partnerships, Royal DSM
3 RWANDA AT A GLANCE Size: 26,338 sq.km Capital: Kigali GDP per capita: $743 Gross National savings: 15.3% of GDP. Population: 11M, 152M EAC, 389M Comesa plus region GDP Growth: 8%. Trade balance (GDP):15.4%. Gross Investments as a % of GDP: 24.0% Source: RDB 3
4 RWANDA S VISION: A MIDDLE INCOME COUNTRY BY 2020 Following 10 years 8% average growth p.a., ambitious targets have been set to meet middle income status by Targets : Real GDP growth = 11.5% Agriculture = 8.5% Industry = 14.0% Services = 13.5% 16% 14% 12% 10% 8% 6% 4% 2% 0% 8.0% 7.5% Agriculture Industry Services Real GDP Growth 9.4% 10.6% 11.4% 12.2%
5 AGRICULTURE SECTOR VISION Vision % Agricultural Growth Agriculture 25% of GDP 40% of land under modernised ag EDPRS II Agriculture driving rural development Increased productivity and private investment 28% annual export growth PSTA III Increased productivity and food security Building human capacity and encouraging innovation Market focus, commercialization and value addition The private sector has a key role in achieving PSTA III: -Investing in high value export crops - Adding value to products - Providing capital and credit 5
6 CONDUCIVE BUSINESS ENVIRONMENT 6 hours to start a business 4 th easiest globally for a business to get credit 15 th easiest globally to acquire property Top global reformer 6 years Most competitive place to do business in East Africa and 3 rd in Africa, after Mauritius & SA. 7th best global destination for investments. 2nd in Africa after Botswana. (BPI Index 2014) 1 st commodity exchange in the EAC region Rwanda Stock Exchange Established in January 2008 with OTC transactions in bonds and equities Rwanda is the safest country to live in Africa. (Gallup Report 2015) Clean and green city, with the lowest crime of any capital city in the region. 6
7 ATTRACTIVE INCENTIVES FOR INVESTORS 0% Corporate Income Tax for companies planning to relocate H/Q s to Rwanda Capital Gains tax exemption One Stop Center: quick business & investment registration; visa& work permits; notary services etc. 15% Preferential Corporate Income tax for key selected strategic sectors i.e. exports, energy, transport, ICT and Financial services 7 Year Corporate Income tax Holiday for large projects in strategic sectors i.e. Manufacturing, energy, export, tourism, ICT and Health services Duty free importation of machinery and equipment, raw materials (15% - Intermediate goods, 25% - Finished goods) Accelerated Depreciation of 50% for key priority sectors i.e. Tourism, Construction, manufacturing and agro-processing Repatriation of Capital and assets After care services: RDB facilitates investment projects even after registration 7
8 Agriculture Land Information System 8
9 Agriculture Land Information System Assists investors to locate land for commercial agriculture use Assists MINAGRI to improve land management and planning Interactive, web-based resource containing relevant agriculture information about public land Data is visual and textual Agriculture Information soil type, suitability, slope, elevation, rainfall, and natural water sources Proximity to infrastructure roads, markets Current land use and users for parcels >10 ha in size 9
10 Investor Facilitation and Aftercare services Institutional Framework for Agribusiness Investment Promotion To promote increased private sector investment in agriculture and To improve GOR support services to the private sector 10
11 Investor Facilitation and Aftercare services cont. Agribusiness Public/Private Dialogue Mechanism Improved public / private dialogue mechanisms at both the national and local levels for agriculture Company Issue Tracker 11
12 Agribusiness Investment Opportunities READY IDENTIFIED INVESTMENT OPPORTUNITIES H o r t i c u l t u r e Floriculture Development Fruits & Vegetables exports Post harvest &Agroprocessing 35 ha secured for flower park operational and additional 65ha under preparation Targeted expansion 650 ha for flower production Opportunities in production of summer cut flowers Irrigated land for year round production in different agro-climatic zones Range of vegetables (French beans, snow peas, chilies, okra, hot pepper, etc.), fruits (avocado, banana, passion fruit, tamarillo, etc.) and spices (ginger, turmeric, etc.). Almost 80% of the production zones are within 100 km of Kigali Airport; Opportunity to produce Vegetable seeds locally. Seeds treatment plant is already in place (SEZ) Agro-processing sites identified in different district Agro logistics including cold chain for fresh product handling Value addition to various agricultural products Addition of premiums to productivity increases for export 12
13 Agribusiness Investment Opportunities cont. READY IDENTIFIED INVESTMENT OPPORTUNITIES Production of Food crops using developed terraced land with Irrigation infrastructure Approximately 93,000 Ha have been developed under radical terraces and a further 900,000 Ha under progressive terraces; These offer opportunities for contract farming on grains, pulses and horticulture production Local production of Packaging materials Opportunity for establishment of manufacturing plant for different packaging materials Kigali Wholesale Market for fresh produce A 10 ha land available in the Kigali Special Economic Zone (SEZ).( Feasibility studies completed, Architectural designs available) 13
14 Agribusiness Investment Opportunities READY IDENTIFIED INVESTMENT OPPORTUNITIES (Cont.) Commercial Production of Chicks, Eggs & other poultry products Commercial Production of pork meat & other pork products Fisheries & Aquaculture products Large Scale farm, slaughterhouse and export of meat and feed mills Large Scale farm, slaughterhouse and export of meat and feed mills Over 25 lakes (128,000Ha) with the largest Lake Kivu 2,700 Km 2 14
15 Head of Investment Promotion Department Rwanda Development Board Website: Investment Support Unit Ministry of Agriculture and Animal Resources Website:
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