Rwanda - Foreign investment



Rwanda has attempted to attract foreign investment. The investment code of 1 July 1962, modified in 1977, offers preferential treatment to foreign companies judged to be of primary importance. These advantages include reduction of or exemption from import duties and exemption from the tax on dividends for the first five years. Profits may be repatriated at the official exchange rate. There are no restrictions on personnel recruitment and no demands for Africanization. Nevertheless, foreign investment is small because of Rwanda's small domestic market, inadequate infrastructure, and civil turmoil. Net direct foreign investment in 1995 was $1 million (0.1% of GDP), down from $8 million in 1990. In contrast, foreign aid in 1995 amounted to $711 million, or over 50% of GDP.

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though Rwanda is small country located in east africa currently,it needs more investors to upgrade their activities.therefore for Rwanda to be succesiful,it should exempt import of goods inorder to benefit much from those impoted goods.Rwanda as the developing country should improve inflastractures to attract more investios.

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