Monday, September 8, 2025

How Rwanda positioned itself as a business-friendly nation: Should you consider investing there?

By Mihiret Fekadu

During my recent visit to Rwanda, I was impressed by how effectively the country has established itself as not just a tourist destination but also a burgeoning hub for investment and entrepreneurship in Africa. I had heard many positive things prior to my trip: that it is clean, orderly, peaceful, and surprisingly well-organized. Experiencing it firsthand left a stronger impression than I had anticipated.

Nicknamed “the land of a thousand hills,” Rwanda truly lives up to its poetic branding. The country’s stunning landscape is complemented by well-maintained infrastructure: clean streets, impressive roads, an efficient drainage system, and surprisingly smooth traffic management. Kigali, the capital, ranks among the cleanest cities I have visited in Africa.

However, Rwanda’s true success lies in its effective branding as a serious business destination. This is a model from which other African countries can learn.

A Brand That Works

While at a coffee shop in Kigali, I spoke with an Ethiopian businessman who has lived and invested in Rwanda for six years. I asked him what advice he would give to fellow Ethiopians or any foreigners considering business opportunities there. His response was straightforward: “Rwanda works because the people and the government want it to work.”

He commended the government for creating a supportive environment for business, especially for foreign investors. He emphasized that branding goes beyond glossy tourism videos and marketing slogans; it is embedded in the country’s policies, systems, and national mindset.

What Makes Rwanda Attractive to Investors?

Here are some key features that make Rwanda an appealing destination for entrepreneurs:

1. Ease of Doing Business: Rwanda consistently ranks among the top African nations in the World Bank’s Ease of Doing Business Index. You can register your business and obtain a Tax Identification Number (TIN) online from anywhere in the world. In most cases, registration takes less than six hours.

2. Open Investment Policies: Foreigners can own 100% of their businesses in Rwanda, making it an attractive option for international investors. Moreover, investors can repatriate profits and dividends without restrictions. There are no limitations on foreign land ownership for business purposes, allowing non-nationals to buy land and property. Rwanda also offers special economic zones (SEZs) that provide tax incentives and improved infrastructure to support business growth.

3. Strategic Market Access: As a member of the East African Community (EAC), Rwanda offers duty-free access to a regional market of over 300 million people. If your product is certified as made in Rwanda, you may qualify for tax reductions or duty-free status when exporting within the EAC bloc. Cross-border trade with neighboring countries such as Uganda, Tanzania, and the DRC is also actively encouraged.

4. Priority Sectors: Investors are encouraged to explore opportunities across various sectors, including agriculture and agribusiness, manufacturing and light industry, construction and real estate, tourism and hospitality, ICT and innovation, healthcare and education, as well as retail, logistics, and consultancy. To attract and support investment in these high-priority areas, the government offers incentives such as VAT exemptions, capital gains tax waivers, and expedited licensing processes.

Planning a Business Visit to Rwanda? Here’s What You Need to Know

If you’re considering Rwanda as your next investment destination, you don’t have to navigate the process alone. There are consultants and support firms in Kigali that specialize in assisting foreign investors. These professionals can help you:

Arrange business meetings with government or private sector entities

Secure permits or registrations

Find affordable guest houses, local guides, interpreters, and vehicles

Here is a rough estimate of the costs for a one-month visit, based on informal discussions and local insights (please note that these figures are approximate and may vary depending on actual service providers and individual preferences):

Furnished guest house: Approximately $600 per month

Transport (with driver): Around $500 per month

Support personnel (guide/facilitator): Estimated at $400 per week

Food and personal expenses: Varies by lifestyle, but a general range is $200–$400 per month

These estimates should serve as a general guideline and may differ from official market rates.

For most African countries, including Ethiopia, visas are issued on arrival or can be applied for online via the Rwanda Immigration website. The process is relatively fast and user-friendly.

A Realistic View: It’s Not All Red Carpets

Conducting business anywhere comes with challenges, and Rwanda is no exception. There are bureaucratic hurdles, competition, and the usual effort required to understand local laws and culture. However, what sets Rwanda apart is that the system is not designed to frustrate you. Instead, you’ll find individuals in both government and civil society who are genuinely interested in seeing your business thrive. This level of support is rare. Whether you’re an investor, a startup founder, or an established entrepreneur, Rwanda is worth serious consideration. While the path may not be perfect, it is certainly possible and increasingly promising.

Final Thoughts:

I am truly impressed by how beautifully Rwanda has been branded. It’s a country I’ve always wanted to visit, and being there felt like coming home. I enjoyed exploring the local markets and couldn’t resist buying traditional clothes reminiscent of those found in Ethiopian markets. The houses and streets also felt familiar, much like some of the Ethiopian cities I’ve visited.

This experience reminded me that, as Africans, we share so much in common: culture, spirit, and values, and we are stronger when we come together.

Sending love and deep gratitude to all Rwandans who made my stay absolutely wonderful.

Mihiret Fekadu is a Senior Media and Communications Consultant

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