Country overview:
IOA has extensive experience conducting research and consulting projects in Rwanda. The country is one of Africa’s great success stories, emerging from the chaos of the 1994 genocide to become the most stable and prosperous country in the Great Lakes region. Though Rwanda has much yet to accomplish in addressing poverty, the country has made great strides in expanding its service industries, including construction, financial services and tourism.
Despite strong development progress, Rwanda remains entangled in conflict with the DRC, accused of backing the M23 rebels whose 2025 offensive displaced thousands. Peace efforts involving the US and regional mediators are ongoing but fragile, additionally the authoritarian leadership style of its President, Paul Kagame is drawing increasing global criticism, raising questions around the ultimate longevity of the Rwandan project after the end of his rule. Despite these challenges it is likely that Rwanda will remain a key investment destination, especially for value added manufacturing, services and as part of regional mineral trading value chains.
Key opportunities in Rwanda:
- Consistent economic growth is founded on large-scale investment and targeted government support of sectors like financial services
- Major foreign exchange earners – coffee, mining, tea and tourism – have additional growth potential
- Government has strived to extend the benefit in one of Africa’s fastest growing economies, resulting in actual poverty reduction
Key concerns/risks in Rwanda:
- Tensions with the DRC remain high after the 2025 M23 offensive, with a fragile US-brokered peace process underway
- The ruling political party, the Rwanda Patriotic Front, has total control of governance and has been accused of human rights abuses
- Because Rwanda’s development in recent years has been led by the public rather than by private investment, public debt has grown alarmingly
Tips on doing business in Rwanda:
Starting a business:
- Rwanda’s land ownership is broadly in line with that of other African nations. Under the Land Tenure Regularization Program (LTRP), foreign investors may invest in local real estate to acquire multi-decade leaseholds, though not full ownership as in some developed markets. Foreigners are allowed full ownership of locally incorporated businesses, which can be set up through registration at the Rwanda Development Board (RDB). There are no legal restrictions in place which preclude foreign ownership of specific industries
(Read more at: https://rdb.rw/invest/)
Doing business:
- The country has one of the best rated business environments in Africa. Largely thanks to a stable political climate and a liberalised free trade regime. Local authorities have adopted a host of generous incentive schemes for foreign companies willing to either invest or ideally, headquarter themselves, domestically. All companies benefit from a flat corporate tax rate of 15%, which can be worked down to virtually 0% if companies move their headquarters locally. Companies can also benefit from accelerated depreciation when involved in priority industries like tourism, construction, manufacturing and agro-processing
- Rwanda’s headline corporate income tax was reduced to 28% (from 30%) in recent years, while targeted preferential rates (including a 15% preferential rate for certain exporters and 0% for qualifying regional HQs) and tax holidays remain available under the investment code and RDB incentives. Recent tax reform announcements in 2024–2025 introduced new measures (e.g., adjustments to digital taxation, tourism levies and capital-gains rules) — investors should check the latest Ministry of Finance / RRA gazettes before finalising models
Culture and society:
- French is being gradually phased out in favour of English, though the latter is not yet universally spoken. Local business owners place a premium on face-to-face meetings and rapport building before deals can be made
- Plastic bags are not allowed to prevent littering and should not be brought with you when visiting
- The last Saturday of every month is known as “Muganda” a public holiday in which public participation in community projects is mandatory, most enterprises will be closed during this time. Due to the drought, and political situation in the region, it is best to avoid discussing the Rwandan genocide, Kagame Presidency or ongoing conflict in the Eastern DRC
