While diplomatic ties were formally established in 1971, it was in 1995, following then Vice President Paul Kagame's first official visit to China, that the relationship became more active across trade, political and investment fronts.
'It has been an exciting journey and we have seen a lot of results in many spheres of national life,' said Rwanda's Ambassador to China, James Kimonyo, in a recent exclusive interview with IGIHE.
'Thanks to the excellent relations between Rwanda and China, we've moved from engagement to action," he added.
That action is increasingly evident in the area of trade. In 2019, Rwanda was exporting only about $35 million worth of goods to China. By 2024, that number had jumped to nearly $160 million, an increase of over 350 percent in just five years.
The range of Rwandan products entering China has also diversified, from coffee and tea to chilli and other non-resource goods, all benefiting from China's zero-tariff policy for least developed countries. China, meanwhile, continues to export close to $500 million worth of products to Rwanda annually, underscoring a growing but still imbalanced trade relationship.
But the real shift, according to Ambassador Kimonyo, is in direct investment. Between November 2023 and May 2024, more than 26 Chinese companies visited Rwanda, many of them returning with concrete investment proposals.
'The quick move by the companies is an indication that they are already weighing and they are so excited about the investment opportunities that Rwanda is presenting,' Kimonyo said.
He confirmed that China was the leading contributor to foreign direct investment in Rwanda last year, ahead of India and the United States.
'This all begins with what our government has done in terms of creating a very conducive, attractive environment for investment,' he said.
'The Chinese are very conscious, very aware and very excited, sometimes skeptical at first but once they see what's on the ground, the interest becomes real.'
The surge in investor confidence aligns closely with China's own evolving policy direction. During its recently concluded Two Sessions political meetings, an annual gathering similar in function to Rwanda's Umushyikirano, China placed new emphasis on what it calls 'high-quality development' and 'new forces of production.' These themes center around environmentally sustainable growth powered by innovation and advanced technology.
'As much as China's transformation has moved very fast, they want to make sure it does not come at the expense of the environment,' said Kimonyo. 'So whether it is agriculture, it has to be climate-smart agriculture. If it is construction, the buildings have to be smart. In transport, there's a big push toward electric vehicles. And in manufacturing, it must not damage the environment.'
For Rwanda, this vision offers not just a template but an opportunity to align national development goals with international investment standards.
'We stand to gain because of the innovations China has put in place,' Kimonyo said. 'And the companies bringing those investments to Rwanda should also be able to ensure that what's happening in China today in terms of high-quality development is what also happens in Rwanda.'
President Paul Kagame's participation in the 2024 Forum on China-Africa Cooperation (FOCAC) Summit in Beijing underscored that alignment. During his visit, Kagame met with President Xi Jinping to review ongoing cooperation and discuss future collaboration in key sectors including infrastructure, agriculture, education, health and digital technology.
'The goal is to ensure our young people access cutting-edge education and that the skills they acquire here are going to be useful in our labor market,' Kimonyo said, referencing the education deals discussed during the summit.
As part of the long-term strategy, Rwanda is seeking both public and private investment from China. Public partnerships are being pursued in areas like health and energy, while the private sector is expected to drive growth in manufacturing, agriculture, and digital services.
'We know Rwanda has embraced the private-led growth philosophy,' Kimonyo said. 'So engaging with the private sector and increasing the number of companies investing in Rwanda is going to be very critical for us going forward.'
People-to-people exchange is another pillar of the relationship. Before the COVID-19 pandemic, Rwanda had around 2,000 students in China. While that number dipped during the global shutdowns, it has since rebounded to nearly 1,000 today, most of them pursuing advanced education. A smaller group is active in private business or employed by local Chinese companies, contributing further to the economic link between the two nations.
Looking ahead, Ambassador Kimonyo believes the next phase of Rwandaâ€"China cooperation will be defined by smart partnerships and shared values around innovation and sustainability. He emphasized that as China refines its economic model to address climate and efficiency concerns, Rwanda is positioning itself to absorb the best of that experience.
Christian Mugisha
Source : https://en.igihe.com/news/article/china-s-investment-boom-targets-rwanda-s-green-and-digital-future
