Investing in Rwanda: sectors, incentives and where the money goes in 2026

1. ICT, fintech and Kigali Innovation City

Rwanda has put technology at the centre of NST2. The strategy targets one million people trained in coding and 500,000 in advanced ICT skills, a single digital ID and the full digitisation of government services by 2029. The physical anchor is Kigali Innovation City (KIC), a 61-hectare development within the Kigali Special Economic Zone in Gasabo District. RDB and Africa50 co-sponsor it, and Africa50 holds the rights to develop, operate and commercialise it under an implementation agreement signed in May 2024 for a project described at USD 300 million. Carnegie Mellon University Africa and the African Leadership University already operate there.

Financial technology sits partly in this cluster and partly in the Kigali International Financial Centre (KIFC), promoted by Rwanda Finance Ltd. Fintechs, fund administrators, family offices and similar licensed businesses fall within the financial services category of the investment incentives.

Incentive. 15% corporate income tax for ICT and knowledge-based services, manufacturing or assembly; ICT retail and wholesale trade, ICT repair and telecommunications are excluded. 15% for licensed financial services firms, including fintechs. 3% for qualifying holdings, foreign-sourced trading and IP royalty income with substance. A 7-year tax holiday for ICT projects of at least USD 50 million with at least 30% equity. Foreign experts relocating to work for a KIFC-licensed entity may benefit from a 5-year exemption on foreign-source income.

Risks. The domestic market is small, so most ICT businesses in Kigali sell abroad and rely on the export or ICT rate. The sector licence comes first for anything financial: the National Bank of Rwanda (BNR) or the Capital Market Authority (CMA) licenses the activity, and without that licence there is no registration in the category. Personal data is governed by Law N° 058/2021 of 13/10/2021 relating to the protection of personal data and privacy, under which controllers and processors register with the National Cyber Security Authority, and storage of personal data outside Rwanda needs authorisation in the registration certificate (Art. 50). Since 2025, ICT equipment, phones and SIM cards are subject to VAT. Domestic prices are set in Rwandan francs under BNR rules.

Sources: The New Times on NST2 goals (24/08/2024); MINECOFIN, "Kigali Innovation City project secures US$20 million" (24/12/2021); Further Africa, "Rwanda's US$300m Kigali Innovation City moves forward" (03/06/2024); RDB, investment incentives (accessed October 2026); DLA Piper, Data protection laws of the world: Rwanda (accessed October 2026); kifc.rw.

2. Tourism, meetings and events

Tourism earned USD 685 million in 2025, up from USD 647 million in 2024, with 1.49 million visitor arrivals. Meetings, incentives, conferences and exhibitions (MICE) brought USD 94.7 million from 165 international and regional events, against USD 84.8 million in 2024. In the ICCA ranking for 2024, Kigali was second in Africa for international association meetings, for the fifth year running. NST2 aims to lift tourism revenue to USD 1.1 billion by 2029, with an explicit focus on MICE and large sporting events.

The product is concentrated. Gorilla trekking in Volcanoes National Park near Musanze, Nyungwe Forest in the south-west and Akagera in the east carry high-value leisure tourism. The Kigali Convention Centre and the hotels around it carry MICE.

Incentive. A 7-year tax holiday for tourism projects of at least USD 50 million with at least 30% equity. A 15% rate for adventure tourism and agri-tourism, on criteria set in the relevant laws. A city hotel is not, by itself, adventure or agri-tourism, so a hotel project usually plans on the standard 28%.

Risks. Revenue is sensitive to perceptions of the region and to air connectivity. The tourism tax of 3% of the room price applies from 01/07/2025. Hotel construction runs into land and permitting timelines that are longer than the company formation timeline. The new Bugesera International Airport is under construction; projects that depend on its traffic should model a delay.

Sources: RDB, 2025 Annual Report press release (28/04/2026); RDB, 2024 Annual Report highlights (15/04/2025); Rwanda Convention Bureau, "Kigali ranked 2nd in Africa for hosting association meetings, five years in a row" (May 2025); MINICOM on NST2 targets; PwC Worldwide Tax Summaries, Rwanda (reviewed 23/09/2026).

3. Agro-processing and agricultural exports

Agricultural exports reached USD 1.1 billion in the 2025/26 fiscal year, from July 2025 to June 2026, according to the National Agricultural Export Development Board (NAEB). That was 24.3% more than the USD 893 million of the previous year and the first time the total passed USD 1 billion. Coffee had a record calendar year in 2025: 23,860 tonnes of green coffee worth more than USD 148.6 million, against USD 89.8 million in 2024, helped by higher world prices. Horticulture, meaning fruit, vegetables and flowers, earned more than USD 86 million in 2025, against USD 28.7 million in 2020. NST2 sets an agricultural export target of more than USD 1.5 billion by 2028/29.

Tea and coffee remain the traditional exports. The investment opportunity sits increasingly in what happens after the farm gate: washing stations, roasting and packaging, cold chains for horticulture, processing of macadamia, avocado and chilli, and the logistics that move them to Kigali airport or to the ports of Mombasa and Dar es Salaam.

Incentive. 15% for exporters with at least 50% of turnover from exports of goods produced in Rwanda; RRA's guide also describes 25% for exports of 30% to 50% of turnover, for a limited period. Large-scale agricultural operations appear among the listed manufacturing subsectors. A 7-year holiday applies to export projects of at least USD 50 million. Investor permits for agriculture use the B1 category.

Risks. World prices drive revenue: the coffee record of 2025 came partly from price. Climate and rainfall variability hit yields. Land for large farms is held on long leases and often has to be assembled from smallholdings. Quality and certification requirements in the EU and Gulf markets set the real entry bar, and NAEB rules on export registration and quality control apply.

Sources: NAEB via The New Times and allAfrica, "Rwanda's annual agricultural exports surpass $1bn for first time" (13/08/2026); NAEB via Food Business MEA, coffee exports 2025 (09/01/2026); NAEB via The New Times, horticulture revenues (25/01/2026); RRA, investment incentives guide (August 2023); DGIE, investor permit categories.

4. Manufacturing and special economic zones

Manufacturing, including agro-processing, was the largest sector in RDB's 2024 registrations at more than USD 1.35 billion and second in 2025 at USD 738.5 million. Most foreign factories sit in the Kigali Special Economic Zone (KSEZ) in Gasabo District, governed by Law N° 05/2011 of 21/03/2011 regulating special economic zones and established by Prime Minister's Order N° 010/03 of 11/03/2016. Since February 2026, ministerial instructions require factories to operate in designated zones within ten years, and heavy industry is directed to Bugesera SEZ and the Musanze and Muhanga parks. Our guide to the Kigali Special Economic Zone covers plots, licences and customs.

Incentive. 15% for listed manufacturing subsectors, including textiles and apparel, electronics and ICT equipment, wood, glass and ceramics processing, and value addition in mining and agricultural equipment. 15% for exporters meeting the 50% test. A 7-year holiday from USD 50 million. 50% first-year accelerated depreciation on qualifying assets. Duty-free import of plant, machinery and inputs where the company has export processing zone status. A zone address alone does not lower corporate tax.

Risks. Inputs are often imported by road over long corridors, which adds weeks and cost. Electricity tariffs and reliability matter for heavy users and should be checked with the utility before the plot agreement. The domestic market is small, so the business case depends on regional sales in the East African Community and the DR Congo, and on the rules of origin that let goods cross duty-free. EAC common external tariff bands of 0, 10, 25 and 35% shape the competition from imports.

Sources: RDB, 2024 and 2025 annual report releases; Law N° 05/2011 of 21/03/2011 (Official Gazette n° special of 30/03/2011); Prime Minister's Order N° 010/03 of 11/03/2016; AllAfrica / The New Times on industry relocation instructions (24/02/2026); RDB, investment incentives (accessed October 2026).

5. Energy

Household access to electricity reached 85.4% by the end of 2025, according to Rwanda Energy Group (REG): 60.1% through the national grid and 25.3% through off-grid solar. REG reported installed generation capacity of 467 MW, against 238 MW in 2020/21; an RDB report quoted in May 2026 gives 404.6 MW for December 2025, so we confirm the current figure for any power project. Methane from Lake Kivu supplied about 21% of national electricity in 2025 from 82 MW installed, split between KivuWatt (26 MW) and Shema Power Lake Kivu (56 MW). REG's 2024–2034 strategic plan targets 1,066 MW by 2034 and puts the cost at about USD 3.2 billion. NST2 aims at universal access by 2029.

Incentive. 15% for generation, transmission or distribution from peat, solar, geothermal, hydro, biomass, methane or wind; investors holding an engineering procurement contract executed for the Government of Rwanda are excluded. A 7-year tax holiday for energy projects of 25 MW or more with at least USD 50 million invested and at least 30% equity. Electric vehicles and charging equipment are VAT-exempt until 30/06/2028.

Risks. Generation is sold to a single buyer under a power purchase agreement, so the contract, tariff indexation and payment security decide the investment more than the tax rate. Tariffs are set by the Rwanda Utilities Regulatory Authority (RURA). Off-grid solar depends on household credit and mobile money collection. Lake Kivu methane extraction is technically specialised and environmentally sensitive; a further 100 MW is planned but, according to REG in May 2026, not yet under way.

Sources: REG, electricity access reaches 85.4% (23/12/2025); The New Times via allAfrica, "Inside Rwanda's $3.2 billion plan to reach 1,066MW" (30/12/2025); The New Times, "More 100 MW to be generated from Lake Kivu methane, RDB" (07/05/2026); RDB, investment incentives; Law N° 009/2025 amending the VAT law.

6. Mining and mineral processing

Mining and quarrying registered USD 346.9 million with RDB in 2025, the third-largest sector. Exports of the 3T minerals, tin, tantalum and tungsten, rose by 46.2% in 2025, according to the Ministry of Finance and Economic Planning (MINECOFIN). NST2 aims to roughly double mineral exports to about USD 2.2 billion a year by 2029, from about USD 1.1 billion in 2023, with emphasis on value-added processing.

The legal frame was renewed in 2024. Law N° 072/2024 of 26/06/2024 on mining and quarry operations replaced the 2018 law and entered into force on 24/07/2024. It provides exploration, mining, processing and trading licences issued by the Rwanda Mines, Petroleum and Gas Board (RMB), with harsher penalties for illegal mining and illicit trading. Law N° 056/2024 of 26/06/2024 on minerals tax reduced royalties, for example on gold from 6% to 0.5% and on base metals from 4% to 3%, and introduced an export tax on raw minerals. The state takes no mandatory stake, although it may acquire shares on agreed terms.

Incentive. Value addition in mining appears among the listed manufacturing subsectors for the 15% rate. Investor permits for mining use the A1 category. Since Law N° 014/2025, capital gains tax at 10% also reaches transfers of mining licences.

Risks. This is the sector with the heaviest reputational and compliance load. On 17/03/2025 the European Union sanctioned the chief executive of RMB and the Gasabo Gold Refinery in Kigali, among others, over the conflict in eastern DR Congo and the trade in minerals from that region. Buyers, banks and auditors in Europe and North America apply supply-chain due diligence to minerals from the Great Lakes, and they will ask for traceability from mine to export. Exploration risk is real in a country whose geology is still being mapped. We advise only on projects whose origin documentation we can follow.

Sources: RDB 2025 Annual Report via The New Times (28/04/2026); The New Times, "How Rwanda's 3T mineral exports grew by 46%" (16/02/2026); allAfrica, NST2 mineral export target (09/09/2024); Liedekerke Great Lakes, Chambers Global Practice Guide Mining 2026: Rwanda (updated 27/01/2026); Council of the EU via allAfrica, sanctions listing (17/03/2025).

7. Real estate and affordable housing

Real estate was the largest sector in RDB's 2025 registrations at USD 855.5 million, more than double its 2024 figure of USD 377.7 million. Demand comes from Kigali's growth, from the middle-income housing shortage and from offices and hotels around the convention district. Land is identified by a UPI (Unique Parcel Identifier), which makes title searches straightforward.

Foreigners hold land on long leases. Under Law N° 27/2021 governing land, emphyteutic leases for investment and residential purposes run up to 99 years, and freehold for a foreigner requires a presidential order in exceptional circumstances of strategic national interest. A foreign-owned residential investor beyond a single plot needs an approved investment business plan under the ministerial instructions.

Incentive. 15% for low-cost housing, but only where the project meets the criteria set in the relevant housing rules; we check them per project. Registered investors are exempt from capital gains tax, but sales of commercial immovable property remain taxable, and PwC reports a 30% rate on such gains. Immovable property tax runs at 0.5% for residential, 0.3% for commercial and 0.1% for industrial property, and transfer tax on commercial property at 2–2.5%.

Risks. Buyer purchasing power is limited, and mortgage finance is expensive relative to incomes, which slows sales of middle-market units. Construction permits, master plan zoning and utility connections set the timeline. Rental and sale prices in the domestic market are in Rwandan francs, while imported materials are paid in foreign currency.

Sources: RDB annual report releases (15/04/2025, 28/04/2026); Law N° 27/2021 governing land, as summarised by Fountain Advocates in The New Times (04/04/2022); Ministerial Instructions n° 001 of 09/09/2021; PwC Worldwide Tax Summaries, Rwanda, other taxes (reviewed 23/09/2026); RRA, investment incentives guide (August 2023).

8. Health and pharmaceuticals

Pharmaceuticals are one of the NST2 light manufacturing priorities, and health is one of the sectors eligible for the 7-year tax holiday. The flagship is BioNTech's mRNA manufacturing site in Kigali, built with modular BioNTainer units. The first unit arrived in March 2023 and the site was inaugurated in December 2023. In October 2025 the European Commission and the European Investment Bank announced up to EUR 95 million of blended finance, alongside up to USD 145 million committed by CEPI. The EIB described the facility as still in development and expected to produce vaccines once operational. We have found no public confirmation of commercial production as of October 2026. MINECOFIN also listed Cooper Pharma as operating at Kigali Innovation City in 2021.

The regulator, the Rwanda Food and Drugs Authority (Rwanda FDA), reached WHO Maturity Level 3 for medicines regulation, announced on 05/12/2024. That matters for any manufacturer who wants its products accepted by procurement agencies and neighbouring regulators.

Incentive. A 7-year tax holiday for health projects of at least USD 50 million with at least 30% equity. 15% for manufacturing in listed subsectors and for exporters meeting the 50% test. Specialised parks may qualify their developers for a 5-year holiday.

Risks. Registration of products and good manufacturing practice inspections take longer than incorporation. The domestic market is small, so volumes depend on regional tenders and on procurement rules in the East African Community and beyond. Specialist staff are scarce and often recruited abroad, which puts the permit route at the centre of the plan.

Sources: MINICOM on NST2 priorities; EIB, press release 2025-380 (13/10/2025); Pharmaceutical Technology, BioNTech mRNA facility, Rwanda (26/02/2026); WHO, Senegal and Rwanda achieve Maturity Level 3 (05/12/2024); MINECOFIN on KIC tenants (24/12/2021).

Each intara (province) is divided into an akarere (district), then an umurenge (sector), an akagari (cell) and an umudugudu (village). For a factory or a farm, the district matters in practice: it handles local permits and construction approvals and signs its own imihigo, so a district office that has a jobs target to meet is often a helpful partner for a project that creates them.

The provinces also change the practical arithmetic. A processing plant near the farms saves transport on raw produce, but its staff, power connection and access to Kanombe or the corridors cost more. A hotel near Volcanoes or Nyungwe earns premium rates and depends on a narrower stream of visitors. Plan meetings and deliveries around umuganda (monthly community work), the last Saturday morning of each month, when most activity pauses everywhere in the country.