The paper “ ARTS Motivation to Enter Rwanda” is a thrilling version of the case study on the management. A significant number of businesses are opening shop in Rwanda. This study is meant to reveal the environment of business in Rwanda for ARTS so it can enter the market and vie for customers alongside other competitors like Positivo BGH. Positivo BGH is a company that is already invested in the Rwandan market, with a market share that is heavily influenced by the government’ s decision to buy many laptops in one go -100000 pieces.
These will be handed over to school-going children between the ages of nine and twelve. The study will be carried out on data associated with the market sizes and sales for the already existing businesses. In addition, a quantitative study will be carried out on the market to establish if indeed, ARTS can find a smooth landing on entry into the Rwandan market. This study will find out the possibility of ARTS entering into the Rwandan market by using the PESTEL and Porter’ s Five Forces Model. A conclusion and recommendations will then be made. 2.
BackgroundRwanda is currently one of the best business destinations in Africa for various reasons. Besides being able to look beyond the devastation that was the 1994 genocide, the country has recovered quite well to come up with legislations and frameworks that make it a great destination for foreign direct investment among a host of other forms of business. The mere fact that a couple of years ago, Rwanda was able to meet the Millennium Development Goals with primary school enrolment alone meeting the set standards means that it is up for a revolutionary change regarding technological advancement.
Beaumont (2010) claims that the government, through various initiatives like the Vision 2020, has instituted various reforms that will see the country move from being a mainly agricultural-based economy to a service-based one that may well stake its focus on technology. i. Incentives to Enter Rwanda Special Economic ZonesThere are various strategies that are in use by the government of Rwanda to ensure that foreign direct investment (FDI) is used significantly in bettering the lives of Rwandans. For example, the setting up of Special Economic Zones is a great way through which foreign investors get to earn tax relief, which will be an incentive to even plow back more of their profits and other capital to expand, where possible, into other industries besides the IT industry as corroborated by The New Times (2016).
Secondly, these economic zones provide a better infrastructural backbone for investors so that they do not have to spend extra finances on trying to make their supply chain more efficient. As things stand, Rwanda can manage to offer a reliable supply chain since there are frameworks that support the basic business model that does not need the existence of middlemen to flourish. As a business that deals with computers, ARTS stands a great chance of winning favor with the Rwandan government since the government has earmarked a project to build an ICT park.
To make it easier for businesses such as ARTS, the government has shortened the period within which one can register a business or incorporate one in Rwanda. Obtaining the licenses and (Rwanda Development Board, p.
9, 2017). Currently, obtaining the licenses to run a business, together with the necessary permits to use the economic zones is easier than imagined. In fact, Rwanda, in general, is ranked as the second easiest place to do business in Africa.