rosemary mbabazi director general, investment promotion 13 ... mbabazi.pdf · rosemary mbabazi...

© Rwanda Development Board, Confidential

This document does not constitute Government policy

This document forms part of an oral presentation and should not be reproduced or distributed without prior permission

Rosemary MBABAZIDirector General, Investment Promotion

13th August 2009, Dar es salam

Last updated 2/10/2009 2:55 PM

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Presentation outline

� Brief on Rwanda: why invest in Rwanda

� 5Investment in Power

� Investment in Telecommunication

� Conclusion

Strategies for Rural Development through Investment in Power and Telecommunication Infrastructure

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� Rwanda is one of the fastest growing non-oil exporting economies in the world, with 8% average year-on-year GDP growth since 2004 and growth of 11% in 2008

� Growth is driven by the services and manufacturing sectors and built on a sound macro-economic base

Three reasons to invest in Rwanda

Source: RDB

� Rwanda has moved way beyond the ‘post-conflict bounce’ and is a stable, successful country which has rebuilt itself

� Rwanda has already pulled ahead of most emerging economies on political stability and control of corruption, indeed it is ranked better at controlling corruption than Eastern Europe

� A pro-business agenda is embraced throughout the Government of Rwanda,and is built into Vision 2020 which guides policymaking

� This commitment from the H.E. President Kagame down to the most junior officials can be seen in the rapid improvement in Rwanda’s ‘Doing Business’rankings, where a jump of over 50 places in three year has been recorded

A strong, rising

economy

A country rebuilt and

stable

A government

committed to action


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Rwanda is safe and secure

Source: UN, press search, RDB analysis

A country rebuilt and on the rise

� Rwanda has been rebuilt since the traumatic events of 1994 and is a thriving, safe country

� Kigali has the lowest crime rate of any capital city in the region, and is a remarkably clean and green city; factors which helped it win a United Nations Habitat Award in 2008, the highest award for an urban area can win

� Government has led the world in sustainable development by banning plastic bags, protecting wetland areas and investing in renewable energy

� “A mecca for venture capitalists”- CNN Money: Business 2.0

� “Rwanda is the most undervaluied stock on the continent and maybe in the world”

- Fortune Magazine 2007

Respected by the business community

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Rwanda is a bastion of zero corruption in Africa and beyond

Source: World Bank Governance Indicators, Rwanda ‘Vision 2020’, RDB

� Commitment throughout government to a corruption free country overseen by an independent Ombudsman

� Recognised as the leader in controlling corruption among global emerging markets

World Bank Governance Indicator: Control of Corruption (Higher is better)

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Leadership is aligned around a pro-business agenda

Source: Rwanda ‘Vision 2020’, RDB

� President Kagame is a President’ who understands how critical investment is and pursues it

� A team or international business people advise the President including Prof. Michael Porter of Harvard Business School, Tony Blair

A President who understands business

A country with a clear vision

� Vision 2020“The major aspiration of Vision 2020 is to transform Rwanda’s economy into a middle income country, this will require an annual growth rate of at least 7%. This will not be achieved unless we transform from a subsistence agriculture economy to a knowledge-based society, with high levels of savings and private investment, thereby reducing the country’s dependence on external aid.”

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� The RDB is a new government institution charged with leading the government's efforts to accelerate Rwanda's strategic growth anddevelopment. To accelerate Rwanda's strategic growth and development, RDB will work to create an attractive, world-class business climate in Rwanda.

� This starts with injecting a private-sector mentality into government, so that government is more efficient, more productive, and more responsive to the needs of its citizens and investment partners.

� RDB will also work to expand the infrastructure needed for economic growth, including ICT, conservation, and human and institutional capacity

Formation of Rwanda Development Board

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� RDB to drive legal and regulatory reforms to eliminate inefficiencies and streamline bureaucracy that might hinder private sector development.

RDB continued…

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Existing Connections (2008)

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� Total Connections : 110,000� Population Coverage: 6%� Schools 21%� Health centres 74%� Administrative offices 67%

Connection (2008)

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Outcomes Baseline

2008

2012

(EDPRS)

Vision 2020

HH electrification (cumulative)

110,0006%

350,00016% 35%

- Schools

- Health Centres- Admin. Offices

21%

74%67%

50%

100%100%

70%

100%100%

Sector coverage 57%100%

Projected National Grid Coverage rollout plan (2008-2020)

Ministry of InfrastructureElectricity Access Programme

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2009 – 2012Projects Investment Costs (US$m)

Micro-hydro sites 18 sites 47.4

Solar PV Systems for institutions

763 health centres, schools and admin offices

27.6

Technical Assistance Support to MININFRA 7.4

TOTAL 82.4

Off-Grid Access Programme (2009 – 2012)

Ministry of InfrastructureElectricity Access Programme

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Site District Province i.c., kW Observations

Gashashi Rutsiro West 200 Mini grid

Nyabahanga Rutsiro West 200 Mini grid

Nyirabuhombo Nyamasheke West 500 Mini grid

Janja Gakenke North 200 Mini grid

Mukungwa II Musanze North 2.500 Grid connected

Rugezi Burera North 2.200 Grid connected

Nshili I Nyaruguru South 400 Mini grid

Ruhwa Rusizi West 200 Mini gird

Hydro power

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� Installation of Energy Management System SCADA. The system is a network of computer processors that provide control, monitoring and retrieve data through a centralized operations and control center.

� Draka cable solutions a Netherlands co. has signed a contract for 24 months to install the system.

� The project shall involve a deployment of optic fiber cables along the electricity transmission and distribution lines to link all power plants, substations and Electrogaz’s town offices to the National control centre.

Power infrastructure

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� The fiber network shall not only be used to manage the electricity network but shall also be used to provide internal voice communication through a synchronous Digital hierarchy system.

� In Relation to power infrastructure the project will allow ELECTROGAZ to effectively manage its high and medium-voltage grid, improving delivery services and bringing direct benefits to customers all over the country.

Power infrastructure

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� Laying National backbone Infrastructure : Fiber optic connectivity to cover all districts and enhance ICT reliable and affordable

� 1st phase of the project will consist of a high-speed fiber-optic network that will link 36 main nodes in both Kigali City and in all the 30 Districts with over 2,300 km of fibre optic cables as an extension of the ongoing Kigali Metropolitan Network

� ongoing Kigali Metropolitan Network will fully connect 97 government agencies in Kigali and 226 government agencies in districts including schools, hospitals, custom offices, immigration and border services, police stations, universities, and private institutions.

Investment in Telecommunication Infrastructure

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- Once built, all these institutions will benefit from high-speed broadband services enabling voice, data and video applications.

- Rural telephony project: this project has increased penetration of mobile communication in areas to bridge gap between the rural people, urban dwellers and the rest of the world.

- Distributed 56,000 mobiles paid at 12,000 Rwf payable for a period of 1 year

Telecommunication infrastructure

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� Wireless Fidelity (Wi-fi project): wireless technology to connect different areas of the district, schools, health centers etc, majorly rural connectivity

� ICT Bus project, this is a mobile van internet infrastructure that will provide internet facilities to very remote areas with information challenge.

� Started with 2 pilot buses with 22 seats fully connected with all infrastructure.

� The buses will be used to channel and diseminate all developmental programmes


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� Establishment of Tele centers (narrowing the digital divide)

- To provide access to information at affordable prices12 completed and operational in 2007 and 18 to be completed end of 2009.

- Provide business advisory services: trade points, registration of businesses


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One laptop per child

- To enhance innovation and creativity at a tender a ge.

- 180 laptops already distributed to rural schools20


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eRwanda project : connecting farmers (e-Soko)

- This is one of the projects of eRwanda project funded by world toProvide up todate market price information to thefarmers.

- This solves the critical information gap.

- eSoko Project seeks to empower farmers to enable them make more informed market pricing decisions and ultimately more successful farming.

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� Web access: to access the eSoko system through the web on www.esoko.gov.rw. This gives access to all the latest commodity price

� Mobile access: all MTN subscribers can use SMS by texting specific commodity, market place to 7656 and receive instant reply with average price at specific market displays on screen

eRwanda project

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� Power and IT are critical enabler of economic growth and development- enabling social economic transformation in education, better health services more productive commercial investments and greter household efficiency.

� Access to energy will improve the economics of tea and coffee production, enabling suppliers to expand their operations and spur econ. Growth through different regions of Rwanda.

Conclusion

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ContactRosemary MBABAZI

[email protected]@rwandainvest.com

Rural development

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rosemary mbabazi director general, investment promotion 13 ... mbabazi.pdf · rosemary mbabazi...

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