Rwanda, magnet for China business

10/1/2018 9:02:31 AM

Rwanda has become an economic magnet as well as a service and logistics hub for China-Africa trade and business. Chinese companies have answered the call of the Rwanda government, that offers hefty tax incentives.

Rwanda, one of Africa’s fastest-growing economies, has been very successful in attracting investment from China – for other reasons than mineral wealth and expanses of arable land. Companies headquartered in Rwanda that invest at least $10 million are exempt from corporate income tax, while those that export at least 50% of their goods pay only 15% tax.

“Chinese businesses seem to have gotten the message. In Kigali’s special economic zone, Chinese companies produce clothes, sanitary napkins, and wooden doors”, reports Quartz, focusing on Rwanda’s success factors. China emerged as Rwanda’s largest investor after South Africa in 2009 and still is among Rwanda’s top trading partners.

Some of the most dominant Chinese companies in Africa, like Star Times, a Chinese pay-TV provider and Tecno Mobile, a Chinese cellphone manufacturer, got their start in Rwanda. Private Chinese companies and entrepreneurs are investing in property, telecoms, manufacturing, and small-scale businesses like restaurants, car import outfits, and travel agencies.

Further reading on qz.com

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