Field Advice APS, a consumer merchandise-company from Denmark, is among legions of foreign interests already knocking at Kigali’s open door to provide in-house supplies of biodegradable plastic bags.
“We hope to convince the government, hospitals, African airlines and restaurants in Rwanda to start using our products.” This was according to a statement from the firm as it makes bid for consideration into the position.
Other entities from the United States, China and France are also in Rwanda seeking to bag some of the construction material, Eco-friendly bag, and automatic machinery, among other product deals, that the country does not need to import any longer in time for its Vision 2020 economic miracle.
Rwanda Foreign Direct Investment
Rwanda has emerged as one of the top ten top investment destinations, from a survey of 2011.
It is no wonder then that its direct foreign investment index has become expansive and rewarding. This indicates that though the economy is now more self-sufficient than it has been for the last consecutive three decades, it now attracts investors within its own borders rather than import goods en masse.
The 2010 inflow statistics from investment stood at U$42 332 000. This is impressive in comparison with the indices for the previous decade where it has averaged between a massive $118, 671, 700 in 2009 and a paltry $1 725 717, ten years earlier.
There are more investment opportunities that emanate from exploitation of informal and formal labor resources within Rwanda, as well as the incorporation of brand new technologies to cater for a yawning gap within the country itself such as vending machines and biodegradable material technologies.
A country’s DFI is usually an aggregate of the short-and long-term capital inflows from an international player within another economy, upon clinching of a managerial prerogative within a local entity. Depending on the returns that are disbursed worldwide from these investments divided by the Gross Domestic Product, a country can be said to be doing well or poorly in its foreign investment activities.
Rwanda has continuously done well in this fiscal arena since 2003. The latest growth rate figures of more than 8 percent, tag most of their success triggers to investments as well as exports.
Rwanda relies on subsistence agriculture which makes 90 percent of its population’s chief activity, as well as informal and formal production activities to produce much of its export merchandise, excluding the highly lucrative tourism industry.