Rwanda Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in rwanda, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Challenges
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Landlocked

Rwanda is landlocked and transportation costs for imports and exports are high. The country lacks a link to regional railway networks, which means all trade is conducted by road or air. Non-tariff barriers add to high transportation costs and contribute to inflated prices of domestically manufactured products, as most raw materials used for manufacturing need to be imported. The cost of transport and logistics in Rwanda is estimated to be more than 30% higher than the regional average, per the Rwandan trade minister in September 2024. Rwanda relies on ports in Kenya’s Mombasa and Tanzania’s Dar es Salaam. Political instability in the region, difficult terrain, and road infrastructure that does not fully reach rural production areas compound transport challenges. However, ongoing infrastructure investments, including the construction of a new international airport at Bugesera, aim to improve Rwanda’s position as a logistics hub for east and central Africa.

Cost of electricity:  

Rwanda’s average residential and commercial electricity costs, at $0.295 per kilowatt-hour (kWh) before tax, exceed the rate in other East African countries and rank among the highest tariffs in Sub-Saharan Africa, based on Rwanda Energy Group (REG) data and regulatory tariff decisions as of October 2025. However, preferential tariffs for industrial customers and other special projects are available. View information on electricity tariffs.

Low purchasing power  

  • Annual per capita income at $1,060 in 2024, a modest growth from $966 in 2022 (World Bank).
  • Low level of human resource development
  • General shortage of skilled labor including accountants, lawyers, technicians, tradespeople, and other skilled professions.

Limited Access to finance  

High interest rates and limited development of local capital markets hamper business growth and investment, particularly among small and medium enterprises. 
Competition from state-owned and ruling political party-owned enterprises:  Some investors raise concerns about competition from state-owned and ruling party-aligned businesses.

Investor aftercare issues  

While business registration is easy, implementation challenges remain due to delays in government payments for services or goods delivered. However, changes in Memoranda of Understanding (MOUs) during contract negotiations are not commonly reported, and although the Rwanda Revenue Authority (RRA) enforces tax compliance assertively, additional tax assessments are generally subject to established processes and appeals.

Taxation

Investors have cited the inconsistent application of tax incentives and import duties as a challenge to doing business, as well as sudden changes in tax policy and corporate tax rates. Under Rwandan law, foreign firms should receive equal treatment with regard to taxes, as well as access to licenses, approvals, and procurement. Foreign firms should also receive VAT tax rebates within 15 days of receipt of relevant documents by tax authorities, but firms often complain that the process for reimbursement can take months or years and often involves lengthy audits by and negotiations with the Rwanda Revenue Authority (RRA). Some investors express frustration that audits are conducted with great frequency, even on businesses that have demonstrated excellent compliance.

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