Rwanda is an attractive emerging market and on the right course to become one of the major players in the region. That is the conclusion of a group of foreign investors who have been on a three-day visit in the country.

Delegation chief Marc Holtzman flanked by State Minister Vincent Karega and Clare Akamanzi, deputy-CEO of the Rwanda Development Board in charge of investment promotion. (photo Timothy Kisambira)

However the country’s private sector has still some way to go to have a vibrant capital market, according to the investors. This would require private companies to grow and realize profits. On top of that, domestic investors should have to play a bigger role to encourage more foreign investors.

Holtzman, who also serves on Bank of Kigali board of directors, pointed out that the investors in the entourage had expressed interest in investing between US$ 10 and 15 million in partnerships with local companies. However, he said, there are currently no local companies able to absorb investments of such magnitude.

“Nevertheless, I notice that local companies are growing quickly, which will lead to the growth of a profitable domestic capital market with large companies in play,” Holtzman remarked.

He also indicated that investors want to grow with partners, and that they were also keen to invest in human capital.

And according to the banker, the conditions are right for such joint-ventures. He noted that the positive political and economic climate coupled with a transparent market and low levels of corruption compared to other countries, are key factors that attract investors. “Rwanda has already accomplished the hardest part and with time the rest will come,” Holtzman remarked.

Despite the fact that no direct investment projects were announced by the group, nor promises made to invest in future, Vincent Karega, the state minister in charge of forestry, water and mines was convinced that investments would be made in future.

“We are not in a hurry,” he said. “We are happy to note that the engagement has been made which starts collaborations with the investors.”     

The delegation consisted of high-profile investors, including Dexter Paine, chairman of Paine partners, a global US$ 4 billion private equity fund focusing on the agricultural sector; Richard Hains, CEO of Hyde Park Investment Corporation, a multibillion dollar fund investing in the mining sector; Alexksander Schneider, a private equity investor; and Rupert Adams and Kurt Butenhoff, both of whom are billion-dollar investment fund managers.

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