Abstract:
This research titled ―Promoting Foreign Direct Investment in Rwanda: Implications for Policy and Practice‖ was undertaken with the objectives of reviewing Rwandan FDI promotion strategies, exploring FDI policy and non-policy determinants, and examining the challenges faced by FDI companies in Rwanda in order to formulate recommendations on ways to overcome them. The review of literature showed that FDIs location factors and MNCs motivations and location decision making process have been extensively studied and empirically researched. However, very limited work has so far been done on FDI in Rwanda despite its great contribution to economic development. Surveys and research work done in Rwanda in this area do not distinguish FDI from other foreign investments or foreign capital flow. The methodology for this research consisted mainly of using documentary and archival research, interview and questionnaire to collect data, and apply qualitative and quantitative analysis within the OLI framework to interpret the results. Using Dunning‘s MNCs investment location theory known as the eclectic paradigm as the basis for analysis, the researcher uses a questionnaire to show FDI location determinants specific to Rwanda due to its particular natural micro and macroeconomic make-up. The results of the research show various promotional strategies adopted by Rwandan government office of investment promotion department which include various investment incentives, promotion campaigns, meetings and conferences with potential investors, and bilateral investment treaties. On top of that, they highlight some of the most meaningful foreign investors‘ perceptions and challenges.
Finally, policy implications presented in chapter five consist of an attempt by the author to interpret the research results into policy and practical course of action to take in order for Rwanda to be able to attract more FDI. Some of the recommendations are to create adequate public relations aimed at earning positive publicity, consistently update investment and business related rules and regulations to best suit the requirements of FDI, to sustainably keep Rwandan political and economic stability assured and to reform education to suit the labour and skills requirements of investors.
