Top 10 Investment Ideas In Rwanda in 2024

Rwanda continues to develop and Kigali, its capital city, is becoming a go to for both local and
international entrepreneurs both small and big to trial their ideas.

As of recent, Kigali was ranked No.1 entrepreneurial city in Africa by Business Insider. This
is thanks to many factors including: Rwanda is 2nd in Sub-Saharan Africa on Ease Doing Business
ranking by World Bank, Kigali city is also ranked the safest city in Africa for travelers, and the
cleanest city in Africa. On top of that, the Government of Rwanda has significantly invested other
areas such as electricity, roads, water access, education, health care, and the rule of law. Most importantly
for the entrepreneurs and investors though, Rwanda is ranked the 54th least corrupted country in
the world and 4th in Africa and it only takes 6 hours to register your business through its flagship
Rwanda Development Board. Rwanda is also positioning itself as the go to country for hosting
meetings and large conferences --- Kigali recently ranked by ICCA as the 2nd best destination for
meetings in Africa. While Rwanda's tourism and hospitality sector continues to soar through its #VisitRwanda brand.

Kigali also host Norrsken House, the region’s largest hub for entrepreneurs, where you can connect with founders and investors from all over Africa. If you're wondering where to invest your hard earned money to generate more; there is definitely no many better place in Africa than Rwanda. 

In my previous article about investment opportunities in Rwanda, few years ago, I broadly specified sectors to invest in. Although some of the sectors like E-commerce, Real Estate, Food processing, etc. still present good opportunities; however, some people found it overwhelming to know where to start. In this article, I'll try to be specific on what business ideas to invest in:

10. Cold Chain Trucks: Rwanda has one of the most varied and best agro-ecological zones

suitable for growing different crops all year long, especially horticulture, and most Rwandans outside

of Kigali are engaged in agriculture. However, transport of fresh produce from rural areas to Kigali is

still a challenge. Given that Rwanda is a landlocked country, the export of fresh products like

avocados, mangoes, fresh chili, french beans, etc. most sought after in Europe and Middle East is

expensive and complex as you have to rely on freight transport. Having cold rooms and trucks that

can safely transport produce from fields to the nearest seas ports of Dar Salam and Mombasa

would be an investment that would pay off and create impact for many Rwandans.

9. Food trucks: The first thing you notice when you arrive in Kigali, unlike other East African cities,

there is no food vendors on the street. That's not to mean that there no people in the city who are

too busy to sit down in a restaurant, make an order, wait, etc. But in the spirit to keep the city clean

and safe, all types of street vendors are not allowed. If you had food trucks, ice cream trucks, etc. in

a strategic approved area you can make a lot of money for affordable fast foods.

8. Quick to assemble furnitures: If you need a furniture in Kigali or any other city in Rwanda,

you're likely to go to one of the shops of assembled furnitures; there the furnitures tend to be of high

price. Alternatively, you can go to one of its many economic zones where you meet the carpenters

and give them the order to make the furniture for you. In any case, the process will require extra

costs of transporting the already made furnitures. An IKEA type of furnitures are not available yet it

would be a game changer.

7. Moving services: There are few moving companies available in Kigali; and they mostly work with

high-end customers: companies, malls and supermarkets, etc. to move things from one place to the

other. If you want to move from one house to the other for instance, you will need to hire non-

experienced people to pack your things, and then hire a truck to move your things. It's time

consuming and you most prized items might get damaged.

6. Processed food: Canned food, dried fruits, Tomato sauces, spices, etc. are mostly imported

from America, Europe, and Asia. Apart from Inyange and Etse Urwibutso products, other bottled

drinks like juices, milk, energy drinks, etc. are imported from Kenya, Tanzania, or South Africa.

However, Rwanda boosts of agriculture production that is the basis of many of those foods: milk,

fruits (mangoes, oranges, avocados, Tamarillo, etc.), beans, etc. which go to waste or don't get

enough incentives for farmers due to lack of market. An investment into food processing, if done

very well would easily get inputs and market in Rwanda.

5. Big brands retailing: I will divide this into 3 main areas: Appliances, Tech, and Apparels:

5.1. Original Appliances:

Quality appliances are a rarity in Kigali. The market is flooded with TVs, Fridges, Microwaves, etc.

from China with a very low sherif life. Technicians cannot keep up with the new features that come

with these unknown brands. There is like retailer of LG appliances - HotPoint, and one for Samsung

- 250 Samsung; but due to lack of competition, their prices are exorbitant compared to the online

prices for the same items. A large scale retailer of Bosch Home, GE, LGs, Samsung, Whirlpool, etc.

with a variety of appliances would capture a relatively untapped market.

    5.2. Tech Gadgets:

Rwanda has one of the youngest population in Africa; and as it develops its upper and middle class are growing. You visit Kigali's big institutions, NGOs, high class hotels, concerts, and restaurants, etc. you will see a hard working young generation; but also good looking one. Rwandan youth is obsessed with gadgets, original gadgets. Internet is

very cheap in Rwanda so every one is aware of what is trendy and fashionable. You only have to look how many of them own iPhones. If you're working an office job in Kigali and you don't own a MacBook, iPhone, AirPods, and iWatch; then you're either an resistant to changes kind of person or you haven't made it yet. Rwandans crave for excellence and being on top. They want gadgets with renown brands: BOSE, JBL, Beats by Dre, However, people are paying way too much for second hand products from Dubai; or original prices for fake products from China. When you hear someone is going to Europe, US, or Canada; they're asking to your address to ship something from Amazon so they can bring them back. If Amazon was delivering to Rwanda easily, even if it's through DHL, or there was an official Apple Store; they would definitely have a special niche of customers.

    5.3. Apparels: 

Class is natural for Rwandans. However, if you visit their very few malls; you'll be surprised by the lack of the big brands. Look at how many Rwandans are wearing the jerseys of the team they support on the weekend; they mostly got 3rd or 4th quality imported by small sports shops from China. If you go to smaller shops, you will see the knock-offs of Gucci, Louis Vuiton, Zara, etc. from China. I recently was reading a thread of Tweets on X about the huddles that young people are going through by buying simple apparels like Shein online, getting them shipped to Rwanda (which takes time), and going through the customers clearance (paying warehouse fees, tax fees, etc.). Also if you tell someone you're about to come to Kigali, s/he will likely ask you if you have space to buy for them simple things like a Victoria Secret lingeries, perfumes, shoes, etc. What is you bring them here? There is enough local market to pay for it with extra margin for convenience, not to mention numerous visitors from other Africa countries. Remember in Rwanda the second hands clothes and shoes are not allowed --- and people are already willing to pay $300 per a Made-in- Rwanda shirt from Moshions or $70 jersey from the House of Tayo.

4. Mental health services: Bringing mental health services in Rwanda, particularly outside of Kigali,

would support building a stronger society and get you a lot of money. Parents, schools, police, and

health care centers would be you first supporters. This would require first a behavior change and

building trust in the communities; which shouldn't be a barrier for someone in that professional.

There are a course change happening in Rwanda where the good health is promoted by the

government as a way to improve productivity --- through campaigns like #Tunyweless (#Drinkless)

and National Rehabilitation Services (at Iwawa). However, these government initiatives can benefit

from the private sector involvement which is likely to gainer more support if perceived as preventive

initiatives.

3. EV Public Transportation: Kigali city is piloting the      and heavily

investing in green solutions. Transport sector is one where the opportunities are still plenty. Public

transport in the city is open to anyone who can buy a 28+ siter bus; however, the lines at the bus

stops are still long. Ampsand company has already deployed over 1,000 EV motor bikes; and

BasiGo is piloting EV buses with the aim to deploy 200 buses by the end of 2024. These companies

are beneficiaries of government subsidies for both climate sustainability and public transportation

solutions in Kigali. They're very far from satisfying this market though, and if you're to invest this is

one of the hottest opportunities.

2. Chemical fertilizers blending: Rwanda Fertilizer Company (RFC), a subsidiary of OCP Group –

a Moroccan fertilizer manufacturing firm – and the Government of Rwanda; are starting a fertilizer

blending plant that will produce 100MT of fertilizer per year; which is a fraction of the target for the

Rwanda Government fertilizer use in the country. Most importantly though, the East Africa region in

general rely heavily in imports of the fertilizers from North Africa, Middle East, Russia, and Ukraine.

With the Russian - Ukraine war, the prices skyrocketed hurting farmers the most. If you're

entrepreneur capable of blending more fertilizer at large scale; you would import some of the raw

materials at lower prices and resell blends on profit. Rwanda, Burundi, Tanzania, and Kenya have

some form of fertilizer subsidies; if your blends pass their requirements; you're looking at much

large market of East Africa.

1. Affordable houses:

Rwanda target is to have 35% of its population living in cities. Kigali alone need 310 thousands

homes built before 2032. Overall, Rwanda needs annual delivery of 150, 000 dwelling units between

2020 and 2050 to meet the demand of its growing population. A number of affordable housing

projects are being run in Kigali but their targets don't even cover 10% of this target. Government of

Rwanda provides support to the investors who need to build affordable house at large scale in Kigali

or in one of the 6 secondary cities (Huye, Muhanga, Rusizi, Rubavu, Musanze, and Nyagatare), in

form of land, materials, or both depending on the nature of the project. For the investors though, I

would caution to do due diligence as many of these projects have been plagued with wrong

assessment of pricing (which tend to be higher than what you would call affordable) and house

designs that are not attractive to people of Rwanda.

If you're an aspiring investor in any of the above areas or any other, don't hesitate to reach out

inbox. We can do further research and provide more advisory with Rwandan context for you at a

competitive fee.