1. Investing in Rwanda – An OverviewMarch 2010

2. A clear vision for growth through private investment set out by President Kagame (Vision 2020) Politically stable with well functioning institutions, rule of law and zero tolerance for corruption 2 5 reasons for investing in Rwanda Source: RDB 7.1% average year-on-year GDP growth since 2004, stable inflation and exchange rate 3 year GDP growth rate highest among major African economies and neighbouring countries Sustained high growth Robust governance Fastest global reformer of business regulations based on World Bank Doing Business Survey Simple taxation, development of industrial parks and free trade zone, and creation of stock exchange Increasingly attractive destination for FDI – $118M in 2009 represents 14x increase from 2004 Rwanda Development Board, an independent agency, created as a ‘one-stop centre’ for investors Investor friendly climate Market of over 10M people with a rapidly growing middle class A hub for rapidly integrating East Africa: located centrally bordering 3 countries in East Africa which has an existing Customs Union and forming a Common Market in 2010 for 125M people Access to markets Potential opportunities for investment abound, particularly in the following sectors: Infrastructure: Opportunities in rail, air transportation to further develop Rwanda as an EAC hub Agriculture: Backbone of economy, potential for growth through productivity and value addition Energy: Power generation, off grid generation and significant methane gas opportunities Tourism: Unique assets creating booming sector; growth potential in birding and convention Information and Communication Technology: Priority sector for achieving Vision 2020 Other attractive sectors include Real estate and construction , Financial services, and Mining Untapped investment opportunities

3. A country of sustained growth and opportunity Sustained Real GDP growth Outperforming on Real GDP growth RWF (billions) 7.1% year on year growth ‘09 Share of total ‘04-’09 growth rate 6% 7% 5% 7% 10% 42% 4% 39% 10% Source: Rwanda National Institute of Statistics 2010; % of GDP minus adjustments (import duties), IMF World Economic Outlook 2009 *Industry – Non Manufacturing is mostly construction with a little mining and electricity and gas. Adjustments are primarily taxes such as VAT, excise tax 3

4. A favourable and stable macro- economic environment * Constant exchange rate Source: 2004-2007 NISR, 2008 MINECOFIN Projection, BNR, RDB analysis Single digit inflation 6 years of stable exchange rate (RWF to 1 USD) Global food and fuel price increase caused temporary spike, now under control Government revenues growing steadily 4

6. Kigali representative of this turnaround

7. A clean and green city, with the lowest crime of any capital city in the region

9. The judiciary system includes Supreme, High, District as well as Commercial courtsSource: World Bank ‘Governance Indicators’ 2007, UN, press search, RDB 5

12. “Rwanda is the most undervalued stock on the continent and maybe in the world” - Fortune Magazine6

14. 4 major commercial laws passed in 2009 in addition to administrative changes that make it easier to start a business, employ workers, register property, get credit and be protected as an investor

15. Rwanda #11 in world for ease of starting business

16. 2 steps in less than 3 days to register a companySource: World Bank ‘Doing Business’ Rankings 2010 7

17. A taxation system and infrastructure projects supporting growth in FDI Simple business taxation for investors Specialized infrastructure for industry and trade Kigali Industrial Park and Free Trade Zone under construction (completion end ‘09): Sites to have reliable infrastructure and commercial services Easy access to the planned new Bugesera International Airport As an EAC custom union member, Rwanda has: Duty free importation for products produced within EAC Common external tariff: 0% on Raw materials and Capital Equipment; 15% on intermediate goods; 25% on finished goods Constitutionally protected free repatriation of capital and profits 100% write off of R&D costs Additional fiscal incentives in strategic sectors Continuing work to simplify the taxation system As a result of all these factors, FDI investment growing fast Building robust capital markets Stock exchange established in January 2008 with OTC transactions in bonds and equities Global and Pan-African investors include Actis, Aga Khan hotels, MTN S. Africa, Starbucks, TiGO, Dubai World, Contour Global, Ecobank Source: RDB, BNR and MINECOFIN 8

20. If you are seeking them, RDB helps you find local joint venture partners and connects you to local service providers

22. OSC pprovides trading license, sector specific certifications and licenses, environment clearance and investment certificates

23. Delegated officers from government agencies provide quick services at the OSC - work permits and visas, tax exemption and tax payment, land and construction permit, utilities (water, electricity), notary services

26. Working towards a Common Market in 2010, a Monetary Union by 2012 and, ultimately, a Political Federation

27. Functioning political and legal organs

28. Regional infrastructure projects are being financed and implemented and regional trade has increased

29. Efforts to combine the East African Community, the Common Market for Eastern and Southern Africa, and the Southern Africa Development Community underway, putting 600M people into a single market.

31. 11 Opportunities for investment Source: RDB Priority investment sectors: Infrastructure Agriculture Energy Tourism Information and Communications Technology Real estate and construction Financial services Mining

33. Over 14,000 km (8,700 miles) of roads, ~20% of which is paved

35. 2 branches of the railway line are:

36. Isaka-Kigali railway project to link to the port of Dar Es Salaam

37. Rwanda-Burundi via Congo to link the southern Africa Cape Gauge railway network

38. Cost of $4B and is currently fundraising

39. The Kigali International Airport has an annual capacity of 4.4M passengers

40. Rwandair is the national air carrier with flights to number of regional destinations (Arusha, Entebbe, Nairobi and Johannesburg)

41. Other international airlines include Kenya Airways, Ethiopian Airlines, Brussels Airlines, China Postal Airlines, and African Star Airways

43. This resulted in 15% growth in the sector in 2008 and higher price realization for coffee

45. Tea – relatively underdeveloped but high potential with 6% increase in volume creating 29% additional value to sector in 2008; buyers include Mark’s & Spencer’s in the UK

47. Further opportunities in coffee washing and roasting as the premium harvest grows

48. Also in distribution, markets and cold chain infrastructure for export products13

50. 60-69MW of electricity generation (50% hydro-electric, 50% diesel) today

51. Recognising the strategic importance of the sector, the GoR has ambitious plans to more than double generation capacity to 130MW through methane gas, hydro (macro and micro) and 1 heavy fuel oil plant

54. 1st Gas Concession and Power Purchase Agreement signed with Contour Global – 100MW KivuWatt power plant under construction expected to produce 4MW/hour for ~$324M

56. 246,000 ha of forests for carbon credit potential

57. Example: recent agreement with US/ UK based company funded by leading UK PE firm to produce biodiesel by planting 10,000 ha of Jatropha plants ($35M investment in 2 years) to address 15-20% of domestic diesel demand14

59. Safe and easy to get around with short distances to diverse destinations: Rwanda is a thriving, safe country with one of the lowest crime rates in Africa. All major attractions are located along a circuit within 1-5 hour drive from the capital, Kigali. In a short vacation, a tourist can reach volcanoes, rainforests, savannah, islands, lakes and the beautiful city of Kigali

61. Investments into tourism sector comprised 30% of registered projects in 2009

62. There are ~200 hotels and ~4500 hotel rooms in Rwanda. For the upper range, average occupancy rate is 70%, with foreigners accounting for 97% of bed nights sold. 15

64. Between the two companies, there are approximately 2M mobile subscribers, representing 20% penetration

65. A sizeable private sector is growing around the networking and software development sectors, with Rwandan companies exporting services to Burundi and Eastern DRC

66. Rwanda is participating in a $24M World Bank project to connect its national backbone to submarine cable:

67. There are three optic Service Providers Seacom, Teams and Eassy, at the East Coast to link various African countries to the global network.

68. Attracted ~$500M in investment over the last three years by both private and public sector

69. The government has invested in building the ICT infrastructure through:

70. a 2,500km optic fiber that covers Kigali city and the entire country, with a total of 7 regional links to the neighboring countries

71. Kigali City Wireless Broadband due to be commissioned early next year

72. ICT park set up for investors in pilot phase

73. ICT in Rwanda currently encompasses, in varying degrees:

74. Wireline telephones

75. VoIP

76. Dial-up internet, ISDN based internet, broadband internet

77. Computer software use and development,

78. Computer hardware, assembly, and repair16 Source: RDB

80. From 2003-2008,investment in the construction sector grew from $100M to $350M. In 2008, revenues from the general construction sector increased by 51% driven by:

81. Population growth of 2.8% combined with urban growth currently at 4% per annum

82. Growth of the middle class

83. Diaspora returning to Rwanda

84. As a result, there is also a shortage in construction material.

85. Rwanda imported $64.6M of construction materials in 2007 and $140M in 2008

86. This includes 100% of steel and a majority of other construction materials

87. GoR projects that by 2020 approximately 30% of the population will live in urban areas. To date, only about 5% of residents in Kigali own modern-style houses.

90. Estimated 12% of the population had a bank account in 2007

91. 20% sector growth rate in 5 years driven by:

92. GoR enforcement of banks meeting international banking standards

93. The “Financial Sector Development Program” which increased the minimum capital requirement from $2M to $8M and requires banks to prove they are qualified before receiving a charter

94. Policy, strategy and incentives in place to develop capital markets

95. The banking sector is comprised of eight commercial banks, one primary microfinance bank, one discount house, one development bank and one mortgage bank

96. Commercial banks represent 76% of the economy’s total financing while micro finance institutions serve 88% of depositors and 90% of borrowers

97. The microfinance sub sector consists of more than 50 relatively small institutions where ~ 11% of Rwandan assets and ~ 3.5% of the population hold accounts

98. The 3 largest local banks are:

99. Banque de Kigali (100% govt. owned)

100. BPR (98% private, including Actis)

101. BCR (80% private)

102. Ecobank, Access Bank and KCB are among the international banks with a presence in RwandaInterest rates in line with the region

104. A strong, investor friendly legal and policy framework being put in place

105. Rwanda’s main mineral exports are ores processed to extract tin, coltan and tungsten

106. Only 25% of ~$ 200M potential output currently exploited

108. Diversification opportunities in quarries (for construction materials) and precious stones (gold, diamond, beryl, topaz, rubies, sapphires, gamets and other unexploited deposits have been identified

109. There are major peat deposits in the southwest of Rwanda which are only just being exploited and could be used for electricity generation or processed as an alternative to fire woodShare of production volume by source, 2007 19

110. For further information please contact Investment Promotion in the Rwanda Development Board info@rwandainvest.com Tel: + 250 252 580804 For further information 20