Written by Wesley Cate on July 17, 2015
According to The Africa Report, Rwanda is seeking to increase foreign direct investment this year to $1.2 billion. The increase will be helped along by new investment tax incentives, which include a seven-year tax holiday for firms investing over $50 million.
Rwanda has become an attractive investment destination due to its strong, sustained economic growth and its ease of starting a business. Rwanda's reputation for low corruption and relative stability also contribute to the country's favorable investment climate. At the same time, the country still lags behind its East African neighbors due to high transport costs, a small domestic market, and limited access to affordable financing.
East Africa overall has shown promise for increases in foreign direct investment with Kenya leading the region with 57 FDI projects in 2014.