China and India locked in a game of investment in Rwanda.

China and India are locked in a game of one-upmanship deep in the heart of Africa. Nowhere is this more apparent than in Rwanda, which is drawing big investments from the two emerging powers and welcomed both Chinese President Xi Jinping and Indian Prime Minister Narendra Modi this past summer.

Chinese Xi Jinping(left) and Indian PM Narendra Modi(right) are all rivaling to boost their investments in Rwanda.

Rwanda signed loan agreements worth more than $300 million with China and India to fund roads and irrigation, officials said, as leaders from the two Asian powers made their first visits to the East African nation.

China ramping up efforts to boost investments in Rwanda.

Chinese President Xi Jinping visited Rwanda last summer and granted a loan to build two roads. India’s Prime Minister Narendra Modi arrived after Xi on the way to a summit in South Africa and agreed $200 million in loans.

Despite its recent history of ethnic conflict, today’s Rwanda has a great deal going for it. The government has kept the peace, and the country offers a favorable business environment, including an extensive fiber-optic network.

Although India appears to have an advantage, thanks to historical connections and a larger population of expats, China is rapidly catching up, Asia Reviews reports.

Signboards promoting Chinese construction companies are cropping up around Kigali, the capital. Other billboards display the logos of Chinese banks that are financing the projects. Chinese workers can often be seen issuing instructions to Rwandans at roadside construction sites.

Xi made his first visit to the landlocked country in July. During the trip, Rwandan President Paul Kagame agreed to participate in China’s Belt and Road Initiative. Xi, for his part, pledged $126 million worth of infrastructure and other investment — spending that promises to give Chinese companies a firmer foothold.

China has invested $400 billion in more than 60 projects and joint ventures in Rwanda over the past dozen years, according to CNN. Chinese companies have built 70% of the country’s roads, the U.S. broadcaster reported.

China also backed the construction of a general hospital in Kigali, and Chinese companies are pushing ahead with condominium projects.

India is not left behind.

Not to be outdone, Indian PM Narendra Modi visited Rwanda this last summer, accompanied by executives from more than 100 private companies. The prime minister pledged loans totaling up to $200 million, geared toward investment in the power grid and agriculture, along with cooperation on building industrial complexes and spreading information and communications technology.

Indian companies that have been doing business in Rwanda for years are excited about the prospects.

In an industrial park in a Kigali suburb, Indian plastic processing company Aquasantec has been producing huge agricultural water tanks and other products since the 2000s. Its plant, built at a cost of $20 million, also exports to neighboring Uganda.

Thank you for reading our stories!

Besides news and trends, Regionweek is a media created to serve African young professionals with information that they can put to work in their daily life. Would you like making money with a side hustle business that you can build in your spare time? Today you can learn how to earn extra money and grow meaningful businesses. Check ressources on:

1.Business Ideas - 2.Online Business- 3.How to make money

Post Comment