The investors in Rwanda are likely to encounter the following challenges:
- The country landlocked nature of which increases costs of road transport. The country depends on the infrastructure and administrative procedures of Kenya and Tanzania with coastlines
- The state of roads and railways in neighbouring is often in bad state which further increases the transport costs.
- Rwanda has the highest imported freight service costs in the region, which are nearly three times the African average.
- The energy costs are high
- The country has low human capital skill as a consequences of the 1994 genocide
- The country lacks specialized labour in a number of sectors of the economy
- The country does not have adequate suppliers of finance in the form of loans to potential investors
- The country general infrastructure is being worked on and investors may face some challenges.
It is important to note the above challenges are business opportunities for a number of investors.