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FEBRUARY 2020

Economy to Watch

RWANDA

11. As of 08 Mar 2019 | Sources: BNR, World Atlas, World Bank, Fitch, S&P

Rwanda at a glance

Rwanda

Population size12.2 million

Govt. & Parliament Presidential republicBicameral parliament

Official languagesKinyarwanda, French, English, Swahili

GDP per capitaUSD 778 (3.8x since ‘02)

Literacy/Unemployment68% / 14.5%

GDP (10 yr growth)USD 9.1bn (7.5% p.a.)

Currency/exchange rateRwanda Francs (RWF)~RWF 899/USD1

RatingsB+, “stable” - Fitch B+ “stable” - S&P

2

Emerging success story of Africa Rwanda is …

2nd fastest growing

economy in Africa

(7.5% p.a. since 2007)

Most improved nation in

human development in

the world

Young and growing

population (~70% of

population under 30)

5th safest country to

walk at night worldwide

Lowest debt ratio in

region & stable credit

ratings

Stable currency

2nd for doing business

in Africa1

1st for Government

transparency in Africa

Most women in

Parliament and in a

gender-balanced

Cabinet in the world

(respectively 61%

and 50%)

Strong African hub

potential; highly

connected African

airline

2nd MICE ranking in

Africa; +19 ranks in

4 years

Growing bilingual,

educated workforce

(~50k tertiary grad./yr)

1st in the EAC for

network readiness

5th in Africa

95% 4G LTE network

coverage; 7,000km fibre

1. Doing Business 2019Sources: UN (UN-HDI), World Bank, WEF, Global and Africa Competitiveness Report, ICCA, Global Gender Gap report, Gallup, ICCA, RDB, BSC (majority 2017)

… fast

growing

… low

risk

… business friendly

& modern

… a regional

platform

… IT

ready

3

RWANDAECONOMIC TURNAROUND

4

Rwanda started at a very low base and has undergone transformation towards consistent strong growth

Most institutions

completely destroyed

or totally ineffective Vision 2020 developed to

transform Rwanda into a

middle income economy by

2020

Recovery period to establish

safety and security and rebuild

institutions

RDB created through the

merger of 8 institutions

1994

GoR implements ambitious

institutional and regulatory

reforms to enable a conducive

business environment

Rwanda among top 2 most competitive

economies and countries to do business

in Africa and continues to pursue new

bold reforms to spur economic

transformation

2000 2008

Today

5

A rapid turnaround from recovery to growth in 25 years

Now a world leader & African pioneer in gender equality

A complete restart for the economy Human development transformed by universal healthcare

Reduced inequality and >1M lifted out of poverty

Source: MINECOFIN; NISR; World Bank; World Economic Forum; UN Entity for Gender Equality, 2017

Highest share of women in Parliament in the world

1

Rwanda

2

Bolivia

3

Cuba

4

Iceland

5

Sweden

17

Ethiopia

100

Kenya

4th in global gender equality

1

Iceland

2

Norway

3

Finland

4

Rwanda

5

Nicaragua

76

Kenya

115

Ethiopia

78%

60%

45%38%

1994 2000 2011 2017

Poverty rate (%)

Poverty rate

halved since

1994

51

28

52

67

1980 1986 1992 1998 2004 2010 2016

Life expectancy at birth (years)

+40yrs

from low

Maternal & child mortality

decrease rapidly to meet

Millennium Development

Goals (MDGs) on schedule,

one of the fastest

reductions ever recorded

in Sub-Saharan Africa

Series of 3 national

poverty reduction

strategies (from 2002 to

2018) provide focus and

direction to the national

development agenda

313

125237

563748

1980 1986 1992 1998 2004 2010 2016

GDP per capita ($)

Income drops by 60% in

1994 with massive

destruction to

infrastructure, human

capital, and social fabric,

but has grown at 7.5%pa

since 2007

+6x

from low

6

Citizen-centred transformation through unique homegrown solutions that emphasize identity, dignity, & self-reliance

• Imihigo (Performance Contracts) – the plural Kinyarwanda

word of Umuhigo, which means a vow to deliver; the practice

of public goal setting and accountability across the individual,

local, and national levels

• Umushyikirano – annual National Dialogue event that brings

together the President and citizens’ representatives to discuss

issues directly and transparently; broadcast live on TV & radio

with opportunities for citizens to ask questions

Non-exhaustive

Governance

Social

Economic

Justice

• Agaciro Development Fund – a national sovereign wealth fund

created from voluntary contributions from Rwandans to

increase savings, support development objectives, and achieve

self-reliance

• Gacaca – systems of participatory justice at local village levels

for conflict settlement, forgiveness, and rebuilding after the

genocide

• Girinka (One Cow per Poor Family) – provided >297,060 cows,

a symbol of cultural significance in Rwanda, to vulnerable

families to fight malnutrition & increase household incomes

• Umuganda – derived from Rwandan culture of self-help and

community cooperation, an institutionalized day of community

works and service (last Saturday of every month) with 91%

participation (2016)

Source: Rwanda Governance Board.

7

These efforts have contributed to Rwanda's economic transformation

38%

28%

2005

14%

44%

48%

4%

17%

7%

2018

$1.7bn

$9.1bn

Source: National Accounts 2019, NISR

Breakdown of Rwanda's GDP by sector (%)

Others

Services

Industry

Agriculture

Services now account for nearly half of economic output

5.3xGDP growth

8

8.6

6.8

6.3

6.1

5.2

2.4

0 2 4 6 8 10

2.6

3.0

7.3

4.8

1.8

0 2 4 6 8

40.7

61.1

57.2

42.2

36

0 20 40 60 80

7.8

6.5

5.4

6.8

3.7

0 5 10

Rwanda

Ethiopia

Kenya

Uganda

Tanzania

Sub-Saharan Africa

Average

Real GDP growth%, 2018

Overall fiscal balance% of GDP, 2018

Government debt% of GDP, 2018

Current account deficit% of GDP, 2018

Source: IMF Regional Economic Outlook: Sub-Saharan Africa

Rwanda displays strong economic performance relative to neighbours

9

RWANDA’S DRIVERS OF ECONOMIC GROWTH

10

Integrated policy action on different fronts

1. Improving the business environment

2. Investments into its people

3. Pan-African and global integration

4. Commitment to private sector growth

11

13

38

53

56

78

84

85

87

97

100

82

77

73

73

69

67

67

66

62

62

52

Botswana

Tunisia

Seychelles

Mauritius

Kenya

Zambia

South Africa

Rwanda

Morocco

Togo

SSA avg.

2020 Top 10 African Ease of Doing Business Countries

Source: World Bank Doing Business 2020.

In Africa, Rwanda is ranked the 2nd easiest place to DO BUSINESS …

DB Score Global Rank

12

MADE IT EASIER TO REGISTER

PROPERTY by introducing

effective time limits and

increasing the transparency of

the land administration system… thanks to continuous business environment IMPROVEMENTS

MADE BUSINESS REGISTRATION

EASIER by improving the online

registration one-stop shop and

streamlining post-registration

(e.g.: VAT registration online)

MADE TRADING ACROSS

BORDERS EASIER by

removing the mandatory

pre-shipment inspection for

imported products

MADE ENFORCING

CONTRACTS EASIER by

introducing an electronic

case management system

for judges and lawyers

13

Rwanda has created an enabling LOCAL AND AFRICAN TALENT…

Of those, ~2,000

graduates in ICT

Host to 4 of the

continent's top

STEM1 universities

~1M Rwandans

fluent in English

~750k Rwandans

fluent in French

~400k Rwandans

bilingual (EN/FR)

1. Science, technology, engineering, and mathematics

30%50KHigher education

graduates each

year

Rwandans fluent

in at least one

Western language

…and the NEXT GENERATION is coming!

Rwandan population

under 30 years of age

70%

14

Readily available talent pool of ~47,000 graduating students per year

Undergrad

7k

Polytech Total

2k18k 47k

Graduate

20k

VCT

Top tier universities

have established

branches in Rwanda

Note: VCT = vocational training (up to three 3 years); Graduate includes advanced degrees, masters, PhD

Source: Rwanda Ministry of Education; UN

Breakdown of total

ICT: ~2,500

Sciences: ~1,200

Engineering: ~2,600

Business & Law: ~2,200

Agri: ~2,700

Health: ~7,700

Education: ~7,400

Arts: ~1,200

Social sciences: ~19,400

15

Rwanda is committed to PANAFRICAN INTEGRATION and plays an active role on key regional and global initiatives

… host of major international events

An acknowledged leadership at the regional

and international levels…

A thought leader and model

on strategic initiatives…

Rwanda is among the top five UN troop and

police contributing countries in international

peacekeeping missions

… a contributor to peace & prosperity

Rwanda holds key roles in

influential institutions

Paul Kagame, President of Rwanda,

Chairperson of the African Union in

2018, current EAC chairman

AfDB Francophonie

16

Rwanda has ACCESS TO AFRICAN AND GLOBAL MARKETS through strong free trade agreements…

1. 2017, in current USD 2. 2015

Source: World Bank

EAC free trade agreementEast African Community

Everything but Arms agreement European Union

COMESA free trade agreementCommon Market for Eastern and Southern Africa

AGOA free trade agreementUnited States of America

Regional agreements Intercontinental agreements

GDP1

$ 168 BnPopulation185 M

GDP2

$ 682 BnPopulation492 M

17

…and, as a regional platform, is UNIQUELY POSITIONEDto serve its neighboring markets…

Source: Press Search; BCG Analysis; World Bank population data 2017

Uganda Tanzania

Rwanda's preferred access ~80M people

Rwanda DRCBurundi

Uganda

• 43M people

• 22M close proximity

Burundi

• 11M people

• 11M close proximity

Tanzania

• 57M people total

• 16M close proximity

Kinshasa

Dar-Es-Salaam

Kampala

DRC

• 81M people

• 20M close

proximity

Kigali

18

… directly serving four major cities with more than a million people

Uganda

Tanzania

Burundi

DRC

Huye

Muhanga

Musanze

Rubavu

Nyagatare

Rusizi

Kigali

>1 million

>100 k

Goma

Kabale

Bujumbura

BukavuPop.

Rwandan city

Neighboring city

Driving distance

19

Rwanda is increasingly OPEN & CONNECTED to the world

Amsterdam

Brussels

London

Dubai

Addis Ababa

Doha

EntebbeAbidjanAccra

Cotonou

Johannesburg

BujumburaBrazzaville

Nairobi

Dar Es SalaamKilimanjaro

Mombasa

New YorkBeijing

Mumbai

Cape Town

Harare

Lusaka

Kamembe

Libreville

Douala

LagosAbuja Guangzhou

CyanguguJuba

Istanbul

Existing direct connections to Kigali Planned direct connections to Kigali

1h25 to Nairobi

3h50 to Johannesburg

6h40 to Doha

7h00 to Mumbai

10h05 to London

Open to the world

#3 for visa openness in Africa

#3 most accepting country of migrants in the world

Source: Rwanda Civil Aviation Authority, Expedia

20

Rwanda has created an enabling INVESTMENT ENVIRONMENT…

1. 2019 World Bank Doing Business ranking 2. WEF ranking 3. Energy, transport of goods and passengers, ICT, financial services, affordable housing, or any other priority economic

sectors determined by the Ministry of Finance 4. Subject to investing USD 50k in business assets; 5. In accordance with EAC customs reg.

Source: RDB Investors Presentation

#2 in Africa for Ease of Doing

Business1 and Global

Competitiveness2

7 year Corp. income tax

(CIT) holiday for investors

investing more than $50M in

the country

Business environment

assessed annually resulting

in new investor-friendly

reforms each year

Preferential CIT rate: 15% if

50% of production exported

outside EAC or for priority

sectors3 - 0% tax if regional

HQ in Rwanda

Accelerated first year

depreciation rate of 50%4

Exemption of capital gains

Duty-free imports of

machinery & inputs5

within EAC

Highly digitalized and

efficient administration

(6 hours to register a

business)

Free business registration

One-stop center for investors

with dedicated investment

acceleration and aftercare

team

No restrictions on foreign

ownership

No restrictions on capital

flows

Capital gains exemption on

sale or transfer of shares

Business

friendly regulation

Multiple incentives for

exporters & priority

sectors

Efficient,

supported processes

Commitment

to foreign ownership

21

RWANDA SAMPLE INITIATIVES

22

RWANDAINNOVATION & TECHNOLOGY

23

Rwanda, a leading proof-of-concept location: Zipline, VW, Andela,…

Mobility solutions (ride & car sharing, electric mobility,

assembly,…)

Pan-African hub fostered by strong incentives for regional

talents (visa regime, quality of living,…)

Rwanda’s admission in October 2018 to Alibaba's

Electronic World Trade Platform, the first in Africa so far

World’s 1st national drone delivery service for blood,

supported by world’s 1st drone regulation

Electric motorcycles operation, production and R&D that

offers a green and modern way to reduce the trade deficit

and increases energy sufficiency

24

RWANDASUSTAINABLE TOURISM

25

Annual growth in tourism revenues

since 2013: largest foreign

exchange earner

Tourist visits to Rwanda’s national

parks in 2017, generating $19M

Delegates in 2017; $42M direct revenues

Flights per week & Visa on arrival for all nationalities

30K

170

10%

95K

26

Rwanda has rapidly become a top MICE destination in Africa …

World Economic Forum on Africa

Forum for Agriculture Research in Africa

The Global Africa Investment Summit

Meeting of the Partners to the Montreal Protocol

Africa Carbon Forum

Africa Hotel Investment Forum

The World Academy of Sciences

African Union Summit

Transform Africa Summit

Source: International Congress and Convention Association report 2016

Exemplary events

Rwanda gaining traction as a MICE destination ... ... with many important global events hosted

2017

2018

Rwanda ICCA Africa ranking (meetings based)

… thanks to a rich and differentiated value proposition

#3

2013 2014 2015 2016

#7

#13

#21

2018

#2

27

RWANDAMADE IN RWANDA

28

• Men's shirts & accessories

• Signature item:

Bowties/ties

Growing local industry: Young Rwandan

designers have been gaining traction…

• African style clothing

• Signature item:

Safari jackets

• African style clothing

• Signature item:

African print shirts

• Men's tailored suits & shirts

• Signature item:

Men's haute couture

29

"One bracelet gives a second chance"

... and global brands increasingly

source from Rwanda’s skilled artisans

Kate Spade - on purpose

• Kate Spade supported formation of Abahizi factory in 2013

• Factory located in the heart of the Masoro community

• Currently ~200 artisans (majority women, average age 36)

producing over 7,000 handbags per 3 month period

"From Rwanda with love"

Example brands

Source: Georgetown study: "A social enterprise link in a global value chain", Same Sky website

Same Sky – Rwanda

• Sources handmade beaded jewelry from skilled Rwandan

artisans for sale in the US

• Employs 85+ women, provides a platform to discuss issues

30

www.rdb.rw

THANK YOU