Kenyan Businesses Rush in to Invest in Rwanda, Reports KT Press

    KIGALI, RWANDA, November 04, 2014 /24-7PressRelease/ -- In August 2013, Kenya's President Uhuru Kenyatta invited Rwanda's President Paul Kagame, Uganda's President Yoweri Museveni, and South Sudan's President Salva Kiir, to commission one of Africa's biggest ports, Mombasa, along the Indian Ocean. Kenyatta announced opening up a special office in Rwanda's capital Kigali, allowing goods to be cleared instantly.

Why in Rwanda of all countries?

Kenya's total transit traffic for exports and imports to Rwanda has been 5% in five years. But Rwanda offers a strategic entry into DR Congo and Burundi, creating an opportunity of a 30% market for trade. About 3.5 million tones of imports and exports to Rwanda, Burundi and DRC were recorded over the last five years.

Rwanda also links Kenya and eastern DRC, a mineral rich region. Kenya being an industrial economy, access to minerals is priceless.

The Rwanda Development Board (RDB) indicates that Kenya is Rwanda's top investor and trading partner.

By September, RDB had registered 1,302 domestic Kenyan companies. There are also 55 Kenyan investors with about $500m in total investment.

Kenyan bank subsidiaries; Equity Bank Rwanda and KCB Rwanda have invested more than $100m combined.

KCB's initially invested $15m in 2008, but the bank had accumulated assets worth $46m and shareholders' equity of approximately $13m by November 2010.

"KCB group has made direct lending to projects in Rwanda to the tune of over $200m using resources mobilized from outside Rwanda," says Maurice Toroitichi, KCB Rwanda's Managing Director.

As for Equity Bank, with an initial investment of $30m, they plan to inject extra funds up to $150m. The bank has registered about half a million subscribers in just 24 months.

Nakumatt Holdings, a Kenyan retail, with a $7m investment, now has more than 20,000 products primarily imported from Kenya.

Obviously there are reasons why Kenya, a much bigger economy is attracted to Rwanda. Clare Akamanzi, RDB's COO, says "Rwanda is open for business."

The World Economic Forum's competitive report of 2014 ranks Rwanda 3rd in Africa, and the least corrupt in the region. Akamanzi says Kenya, seen as the mature economy of the region, with formidable private investors, finds Rwanda attractive.

Sylvio Rajula, a Kenyan IT professional says Rwanda is seen as "the oasis of the region."

Read the full article in the following link: http://ktpress.rw/?p=284

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