Rwanda has been ranked fourth in investment attractiveness in Africa according to a latest ranking by the Rand Merchant Bank (RMB).

RMB is a leading African corporate and investment bank which is part of Firsthand Bank, one of the largest financial institutions on the continent.

In their 2021 release on top 10 investment attractive countries in Africa, RMB relied on indicators such as operating environments, fiscal score and development plan.

Rwanda notably moved up the ranking to be the fourth from the ninth-place last year.

Egypt came first, Morocco and South Africa, second and third respectively while following Rwanda are Botswana, Ghana and Mauritius in descending order.

Daniel Kavishe, RMB Africa economist and author of the publication said that new approaches were adopted to create a new set of rankings that incorporated some of the unavoidable Covid-19-induced challenges.

For the indicators used, Kavishe said that fiscal score methodology was important as it indicates how governments respond to Covid-19.

“Key themes rising from Africa’s developmental plan was also part of the methodology, which include fighting the pandemic and resuscitating economic conditions,” he said.

Adding that they are government intervention, “a focus on our triple-threat sectors (tourism, transport and trade) and healthcare.”

Business operating environment as part of the approach aimed at offering a strong basis for investors targeting real assets in an economy or looking to expand businesses that rely on physical infrastructure.

As of the end of 2020, Rwanda had registered 172 investment projects, valued at $1.2 billion despite the Covid-19, which slowed business activity, Rwanda Development Board statistics show.

The Government established Rwanda Finance Limited to lead the development and promotion of Kigali International Financial Centre (KIFC), an ecosystem that supports significant inward investment into Africa and positions the country as a highly credible financial centre.

Rwanda also initiated 24 new double taxation treaties, 13 of them on the African continent, six with Europe and the others in countries like China, South Korea, Israel, and the US.

“Although the pandemic brought much devastation, it also enabled opportunities for reimagining policies and trade relationships,” said Kavishe.

It is clear now, he said, that homegrown strategies to tackle poverty, inequality, and unemployment across Africa must be implemented, “If not, all of Africa suffers.”

“Capital will flow naturally to economies offering a good mix of opportunity and ease of doing business,” he added.