Foreign Direct Investment & the role of Institutions in Rwanda

Abstract

The paper provides a profile of foreign direct investment (FDI) in Rwanda and critically assesses the role of government institutions in attracting FDI in the country. The analysis shows that institutions in Rwanda have succeeded in kick-starting the FDI process with a series of positive measures. Presently, the government has ambitious plans of continuing with the process of attracting further investment with a view to create employment and raise income levels. We argue that, after a decade of continuous efforts, it may be time to pause and take a stock of issues surrounding FDI vis-à-vis economic development. We provide a 5-point framework that would be of assistance to policy makers in this review process.