The National Bank of Rwanda Foreign Private Investment in Rwanda 2011 21 The country’s declared total turnover increased by 23.5 percent in 2011 compare to the level of 2010 from $ 2580.1 million to $ 3,187.1 million. Thus the surveyed companies contributed to total declared turnovers for 25.2percent in 2010 and for 31.4 in 2011. Figure 12 : Entity turnovers by sectors in 2011 (in millions USD) Source: Foreign Private investment 2011 3.8.2 Employment As shown in the Table 12, the total employment in foreign owned investments grew from 16,302 in 2010 to 30,717 in 2011, equivalent to an increase of 88.0 percent. Rwandans accounted for 98.0 percent of the total employment and the remaining 2.0 percent were foreigners. Foreign workers are concentrated in managerial positions with a share of 54.0 percent of total foreign workers. Table 12 : Distribution of employment in 2011 CATEGORY NATIONAL ITY Employment 2010 2011 Managerial Local 616 657 Foreign LT 129 198 ST 44 47 Administra tive Local 3018 1981 Foreign LT 43 45 ST 12 33 Technicians Local 3214 5293 Foreign LT 119 81 ST 54 49 Casual Local 9053 22329 TOTAL Local 15,901 30,260 Foreign LT 291 131 ST 110 326 TOTAL 16,302 30,717 Source: Foreign Private investment 2011 In terms of sector distribution of employment, Agriculture sector has the highest number of staff with 26.0 percent of total recorded number of employees. The share of employment in real estate was 20.1 percent, mining 19.8 percent against 15.4 percent in finance and insurance activities.
The National Bank of Rwanda
22
Foreign Private Investment in Rwanda 2011
Figure 13: Distribution of employment by sectors 2011
Source: Foreign Private investment 2011
3.8. 3 Compensations of employees.
Annual value of total compensation of employees was $ 95 million. In
terms of type of compensation, salaries and wages contributed to the
highest share of 82.0 percent. Locals had relatively bigger share of 85.4
percent due to their high proportion in the total employment.
Table 13: Total compensation of employees for 2011 in $ million
TYPE
RESIDENCY
STATUS
AMOUNT
Salaries and wages
Local
67.9
Foreign
LT
1.6
ST
9.7
Fringe benefits
Local
3.8
Foreign
LT
0.0
ST
1.2
NSSF/Pension
Local
4.7
Foreign
LT
0.1
ST
1.0
Directors fees
Local
0.8
Foreign
LT
0.0
ST
0.5
Others
Local
5.5
Foreign
LT
-
ST
-
TOTAL
Local
82.8
Foreign
LT
1.7
ST
12.4
TOTAL
96.9
Source: Foreign Private investment 2011
In 2011, compensation of employees in finance and insurance activities
accounted for 45.2 percent, followed by ICT 21.2 percent and manufacturing
for 13.6 percent.
The National Bank of Rwanda
Foreign Private Investment in Rwanda 2011 23
Figure 14 : Compensation of employees by sectors in 2011 ($ million)
Source: Foreign Private investment 2011
3.8.4 Type of investment
Actual investment is in land, buildings, machinery, vehicles,
equipment and working capital. During the census period, total actual
investment was $ 1.083.9 million. Plant and machinery accounted for
30.3 percent, followed by building and civil works with 10.3 percent
of the actual investment. This pattern is due to growing construction
activities in different sectors and new green field investment in mining
and manufacturing.
Table 14: Type of investment with foreign liability 2011 in $ million
AMOUNT ($ million)
TYPE 2010 2011 % SHARE(2011)
OTHER 40 363.79 33.6
PLANT AND MACHINERY 447 328.20 30.3
BUILDING AND CIVIL
WORKS
136 111.96 10.3
WORKING CAPITAL 50 111.14 10.3
WORK IN PROGRESS 104 87.74 8.1
VEHICLES 13.5 21.06 1.9
FURNITURE AND FITTINGS 11.8 19.44 1.8
LAND 13 18.13 1.7
COMPUTERS AND ACCES-
SORIES
12.8 16.19 1.5
PRE-START UP EXPENSES 3.4 6.26 0.6
Total 831.5 1,083.91 100
Source: Foreign Private investment 2011
In terms of sectorial distribution, ICT accounted for 67.0 percent, followed
by financial and insurance with 13.4 percent and manufacturing with
10.1 percent. The higher actual investment in terms of assets from the
ICT sector is in line with the foreign liabilities findings where it is ranked
number one in terms of foreign equity and debt.
The National Bank of Rwanda 24 Foreign Private Investment in Rwanda 2011 Figure 15: Actual Investment by sectors in 2011 Source: Foreign Private investment 2011 3.8.5 Corporate social responsibility Corporate social responsibility includes donations, financing of environmental, infrastructure, educational programs, health and other social, cultural or community services that benefit to the population. The contributions of corporate social responsibility stood at $ 3.0.million in 2011 against $ 2.0 million in 2010. On average, most of the corporate social responsibility expenditures were on donations to vulnerable groups (14.4 percent), education (10.9 percent), health and welfare (7.2 percent) and others. Manufacturing was the main contributing sector. Figure 16 : Corporate social responsibility by type in 2011 ($ million) Source: Foreign Private investment 2011
The National Bank of Rwanda Foreign Private Investment in Rwanda 2011 25 CONCLUSION The foreign private capital results revealed that, foreign private investments in Rwanda have continued to grow and provide a drive for sustained economic growth. The increase in foreign liabilities inflows was of 4.1 percent from $ 343 million in 2010 to $ 356.6 million in 2011 indicating increased attraction of foreign investment from abroad. In addition, foreign resources were becoming increasingly important in terms of investment and economic performance as evidenced by the growth of FDI in relation to gross fixed capital formation and gross domestic product. During the period under review, findings of the census indicated that, actual investments increased by 30.4 percent, entity turnover by 51.8 percent, employment by 88.0 percent and compensation of employees by 14.4 percent implying positive trends. This is an indication that Rwanda is a competitive investment destination and the private sector continues to contribute to economic growth. There is need to sustain the achievements registered in the attraction and retention of private investments. The results of this study should be used as an indication of foreign private investment sectorial performance and as an evaluation tool of current interventions as well as the design of new policies and programs focusing at priority issues. The National Bank of Rwanda 26 Foreign Private Investment in Rwanda 2011 REFERENCES Business Monitor International, (2011), emerging markets monitor Competitiveness Report (2011 – 2012); ( *) Based on average ranking; International Monetary Fund, (2009), balance of payments manual sixth edition International Monetary Fund, (2010), world economic outlook. National Bank of Rwanda, (2010,) annual report 2009. National Bank of Rwanda, (2011), annual report 2010. National Bank of Rwanda, (2012), annual report 2011. National Bank of Rwanda, Foreign Private Investment and Investor’s perception 2011 report The World Bank, (2009), doing business 2010 The World Bank, (2010), doing business 2011 The World Bank, (2011), doing business 2012 World Bank ‘Doing Business’ Rankings 2011 & 2012, World Economic Forum Global 11. World Economic Forum (2010/2011) Doing Business Report 2011
The National Bank of Rwanda Foreign Private Investment in Rwanda 2011 27 ANNEXES Annex 1: Foreign Private capital inflows and stock by country in 2011 ($ million) Countries 2011 Inflows Stock Kenya 66.7 100.5 Switzerland 47.1 17.5 South Africa 46.4 110.8 Mauritius 37.6 58.8 Sweden 24.8 24.7 Cyprus 23.1 23.0 Netherlands 19.0 50.5 United Kingdom 18.9 66.1 Germany 18.5 63.7 US 16.2 28.9 Preferential Trade Area (PTA) 15.6 27.5 Hong Kong 7.3 7.8 African Development Bank 5.0 9.7 Tanzania 3.7 15.1 China (mainland only) People`s Republic of 2.8 3.0 Bermuda 2.2 2.2 Nigeria 2.2 19.3 Export Import Bank (EXIM) 2.1 12.9 Uganda 2.0 4.8 International Free phone (UIFN) 2.0 11.2 India 1.8 9.9 Others (8.3) 164.5 Grand Total 356.7 832.3 Annex 2: Rwanda Working Group on Foreign Private Investment
Monitoring and Analysis Coordinators: KAYITESI Vivian, Director Investment Promotion and Implementation, RDB MANZI Sebastien, Director of Economic Statistics Unit, NISR. MWITIREHE Viviane, Director Statistics department, BNR. Team members:
BAJIJI Innocent, RDB
HABIMFURA BADAGA Tite, BNR
KAVUTSE Emmanuel, RDB
MPAYIMANA Fabien, NISR
MUHORAKEYE Josephine, RDB
MUHOZA Modeste, RDB
MUYUMBU Innocent, RDB
NDWANIYE Desire, BNR
NKEJUWIMYE Clet, BNR NTIRUSHWAMABOKO Dominique, BNR SHYAKA Chris Picton, RDB TUGEZAHIMANA Michel, BNR