Foreign private capital survey findings due next week

Findings of a foreign private capital survey conducted in 2010 are slated to be released in Kigali on Monday next week. The event would bring together both local and foreign investors and government officials involved in investment policy makingAccording to the National Bank of Rwanda Governor, Amb.Claver Gatete, the survey would help government to make particular decisions on investment as well as providing accurate information to investors.The survey considered investments that flowed into the economy with in a particular period and those outside the economy. “It gives us an idea of which areas have major investments, a country with big inflows, stocks and investment and helps policy makers take decisions,” Gatete told Business Times in a telephone interview.According to Gatete, the survey looked at the two types of foreign private capital flows of portfolio investment, where an investor holds shares in a firm, and foreign direct investment where the investor participates in the management of the firm in which he owns shares.“Policymakers target sectors that attract more investment and those with fewer inflows thus design which option they could make,” he said. The survey also identified whether foreign investments have other assets abroad.Statistics from RDB indicate that foreign investment flow shot up to $476.5m in the second quarter of this year, up from $220.4 million at the same period last year. The growth is attributable to the rapid economic development strategy adopted by RDB.Government is banking on FDI as an extra buffer to cushion the current trade deficit. The recent surge in private investments in the country as well as government’s spending in strategic sectors would offset the imbalance in the next three to four years.The survey was conducted jointly with different institutions, including the central bank, National Institute of statistics, Rwanda Revenues Authority, Private Sector Federation and Rwanda Development Board.

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Foreign private capital survey findings due next week