Bussines in Rwanda
At the beginning of 2008, the 2nd Phase of the Rural Sector Support Project was launched. This phase of the project will focus on a Resettlement
Policy Framework that seeks to build upon the first phase of the project. During this first Phase, which ran from 2001 to 2008, the focus was on
building the institutional, technical, and human capacity needed to support the adoption of sustainable intensive agriculture in developed
marshlands and surrounding hillsides. The 2nd Phase, 2008-13, aims at accelerating the pace of intensification and the commercialisation of
Private investment growth reflected large investments in many sectors in 2008. Nigeria's Industrial and General Insurance Company (IGI) acquired a
controlling 35 per cent (RWF 1.6 billion)-(Rwandan franc) stake in Société Nouvelle d'Assurance du Rwanda (SONARWA), the largest insurance company in
Rwanda. The African Development Corporation (ADC), a German-owned investment company, acquired 25 per cent of shares worth RWF 4.4 billion in Rwanda
Development Bank (BRD) and another 70 per cent share ownership valued at USD 3.5 million in Rwanda's national electronic payment transactions
provider. Nigeria's Access Bank also acquired 75 per cent of the shares in Bancor, the fourth largest commercial bank in Rwanda.
ShoreCap International - comprised of a Chicago-based consortium of financiers, the Belgian Investment Company for developing countries (
BIO), and Tunisian AfricaInvest - acquired a 40 per cent stake worth USD 6 million in Compagnie Générale des Banques (Cogebanque),
a Rwandan bank. Nakumatt Holdings of Kenya acquired control of Rwanda's largest supermarket, City Market, for USD 3 million. Further
investments in Virunga Property Development, were expected to bring in another USD 18 million in 2008.
Both private and public consumption are expected to continue to grow. Growth in public consumption, however, is expected to weaken significantly
in 2009 and 2010, contributing less than 1 per cent to GDP growth. Private consumption growth, on the other hand, is expected to increase by 9.9
per cent in 2009 before weakening in 2010 to 36.7 per cent. Overall, total consumption is expected to drive GDP growth in the short to medium term.
The external sector's contribution to growth is expected to be negative. Imports are forecast to grow faster than exports leading to a worsening
balance of trade position. The limited diversification of the trade sector remains one of the greatest challenges facing Rwanda, particularly
given risks of reduced ODA in the wake of the global financial crisis.
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