Founders and proprietors of 15 major Indian companies are in the country to gauge available investment opportunities, with special emphasis on the manufacturing sector.

Under the invitation of Rwanda Development Bank and Ecobank, the delegation, which mainly includes investors in energy and construction, met with government and private sector officials to discuss possible ventures yesterday in Kigali.

"This is the beginning for us; we have heard several success stories from Indian businessmen in Rwanda and we want to be part of this success. We are convinced that Rwanda is moving forward and is fast becoming a destination for large investments because of its market freedom and political stability,” Val Lobo, the founder and chief executive of Lob International, said.

"We know it is easier said than done, but we are a serious delegation. We will learn all we need to about Rwanda and then in six months, we shall be ready to start real investments.”

Vivian Kayitesi, the head of Investment Promotion at RDB, urged the delegation to invest in the untapped business opportunities, including real estate and construction, ICT, energy and financial services, among others.

"We are delighted to have more Indian investors coming to Rwanda. This is a show of confidence and we will continue to facilitate investors. Rwanda is ranked among the 25 fastest growing economies of the world and has an average GDP growth of 8 per cent per year. Rwanda is surely a growing economy poised as a ready investment destination,” Kayitesi said.

"On top of a favourable business environment, Rwanda offers attractive incentives within EAC and Comesa, including duty-free access within member states, no restriction of repatriation of capital and profits and 100 per cent right off research and development costs, among others.”

Challenges within

Jameel Verjee, the founder of City Blue Hotels, warned that much as Rwanda has emerged as an investment destination, investors must be willing to look for long term gains and not seek for quick returns.

"There are a couple of challenges that an investor must be willing to cope with in Rwanda. Quality human resource is first of all hard to come by, the country is landlocked, meaning that importing machinery is expensive and also, electricity is sometimes insufficient,” Verjee said.

"But these obstacles can be overcome if the investor is looking for long-term gains. If you are prepared, Rwanda is the right destination.”

Over the last 12 years, India has registered 64 business projects in Rwanda with a total value of $259 million, according to RDB. 

This is the latest group of Indian investors to express interest in investing in Rwanda.

Last year, Rohan Developers Pvt Ltd a Mehta Group company based in India, announced plans to inject billions of dollars into real estate industry given the vast potential the sector provides.

Also, government last year signed a $371 million (about Rwf241billion) energy agreement with India based company, Punj Lloyd to generate100 megawatts from peat energy, from a plant to be set up in Eastern Province.