Foreign capital inflows increase to Rwf226b

Rwanda received $357m (Rwf226.4b) foreign private capital inflows in 2011, an increase of over 4 per cent compared to $343m (Rwf217.5b) recorded in 2010. This is according to a joint annual census on foreign private capital carried out by the National Bank of Rwanda, the National Institute of Statistics, the Rwanda Development Board and the Private Sector Federation between September and November last year. Thomas Kigabo, the central bank’s chief economist, noted that finance and insurance at 23.1 per cent, attracted the highest inflows, followed by ICT at 20.7 per cent. Manufacturing received 19.5 per cent of the offshore cash inflows and agriculture 16.3 per cent. Kigabo said the investors were mainly from Kenya, Switzerland, South Africa and Mauritius. “We hope that next year’s census report for 2012 captures the investments that have been made by India, China and other emerging economies,” said Yussuf Rurangwa, the director general of the National Institute of Statistics. According to the survey, foreign private capital inflow profitability increased from nine per cent in 2009 to 13.4 per cent in 2010 and 19.5 per cent in 2011. About 140 foreign private companies were surveyed. Administration and support services, construction, agriculture and manufacturing sectors registered the highest return on equity in 2011, it indicated. In 2011, foreign private investment inflows were largely in form of other investments, which cover long and short-term loans from unrelated sources, at $187.9m (Rwf119.1b), accounting for 46.7 per cent of the total inflows. Foreign direct investments were $119.1m (Rwf75.5b), accounting for 30.2 per cent and portfolio investment totaled $87.3m (Rwf55.3b) or 22.1 per cent. John Rwangombwa, the central bank governor, said the over four per cent increase in foreign capital inflows showed that more foreign investors were getting attracted to Rwanda’s improving business environment. “The government needs to continue to accurately and consistently capture and monitor these inflows to assess the impact of policies made to boost investment and how they influence the country’s development and their capacity to complement local resources,” he said. Clare Akamanzi, the Rwanda Development Board acting chief executive officer, said they were identifying strategic sectors, like the transport industry, that require urgent investment intervention, adding that they would be prioritised.

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Foreign capital inflows increase to Rwf226b