Quantitative Assessment For ARTS Essay In Rwandan Special Economic Zone.

PESTEL Analysis of the Rwanda Market

Carefully consider the rubric on page 10 and 11 of the Subject Learning Guide when constructing your answer.You are a strategic analyst working to provide critical data for the Taiwanese technology firm Alpha Response Technology Solutions (ARTS).You are in receipt of twenty pieces of raw field intelligence (linked at the end of this article) describing the entry of Positivo BGH, a major competitor to ARTS, into Rwanda.ARTS exists in in conditions of uncertainty, and is considering an attack on the Rwandan technology market, currently dominated by Positivo BGH.
You need not limit yourself to the source data (below) in creating recommendations for ARTS.

It is your task to provide a quantitative assessment for the establishment of an ARTS venture in the Rwandan Special Economic Zone, specifically a manufacturing plant for portable computer technology.ARTS' main product solution is the GT80S Titan SLI 18.4in Core i7 Notebook, built specifically for the advanced Western business analytics market, retailing at AUD4999 or USD3792.37 (Rwandan Franc3000012.82) with the following specifications:
GT80S Titan SLI 18.4in Core i7 Notebook
Intel i7 6920HQ CPU,
NVIDIA GeForce GTX980M graphics in SLI,
32GB DDR4 memory,

The Chief Executive Officer of ARTS is a former University classmate of Positivo BGH's CEO, and the two share a deep seated and emotional rivalry around CPU designs and ownership, with ARTS CEO claiming his designs were copied by Positivo BGH for an entry level computer now being used to exploit the Rwandan marketplace, cheap manufacturing labour, taxation incentives, Western emotion over failure to intervene in the 1994 Rwandan genocide, and developmental dollars from the World Bank.

The CEO of ARTS has instructed his staff to prepare for the establishment and production of a technology design and manufacture facility in the Rwandan Special Economic Zone, specifically to rival that of Positivo BGH.You will must provide a quantitative analysis of this situation and provide a recommendation based on this to ARTS.
Your written response must:
Organise and categorise the information you have received in tabular form.
1) In a table carry out a PESTEL analysis with attention country information related to Rwanda
2) Provide a written description of the incentives to enter the Rwandan Special Economic Zone
3) Provide a written explanation of current foreign investment in Rwanda.
4) Provide a written explanation of ARTS' motivation to enter Rwanda
5) In a table Create a 5 Forces analysis for ARTS
6) In a table compare and contrast ARTS' primary product line with that of Positivo BGH
7) In a table numerically identify the likely return for producing and releasing the Titan for sale to the Rwanda domestic market versus sale to a Western market.
8) Based on the tabulated numeric data for (7) above make a written recommendation for this venture.

The government of Rwanda developed the Specialized Economic Zone with the aim of addressing domestic private sector constraints, mainly the access to resources such as land, energy, transport and market.  The government has provided incentives for potential investors in various forms: Fiscal incentives, Infrastructure and services, and Regulatory reliefs (Government of Rwanda 2010).  The government has proposed a flat corporate tax rate of 15% for investors in the SEZ. This flat tax rate is lower than the average corporate tax, thus making the SEZ more competitive even in its neighbouring countries such as Kenya, Uganda, and Tanzania (Government of Rwanda 2010).

This is a benefit for investors since there is a reduced cost of tax compliance.  There is a guaranteed infrastructure improvement that is funded by both the government and the private sector. Private developers have been given the opportunity to develop infrastructure on behalf of the government for the success of the SEZs. The private developers have an obligation to respond to special needs of the users. Investors also enjoy a regulation relief when joining the Rwanda’s Specialized Economic Zone. This implies that companies can easily obtain permits, licences, registration, customs inspections and tax administrations. Investors in the SEZ are treated in a special way. Their applications take a short time before approval.  

The Rwandan economy relies heavily on foreign investments. The biggest part is from the European Union which accounts for 32%, and the East African Community which accounts for 14% (Twahirwa 2017). The rapid indicates the effort that the country has made in attracting foreign investors. In the year 2012, the Rwanda's economic report showed that the investment was mainly from South Africa, Kenya, the UK and Germany (Twahirwa 2017). According to the most recent foreign private capital census conducted by the central bank, the overseas investment in Rwanda increased by 78.1% (Tabaro 2016). By 2014, the foreign investments in the country increased to US$ 458.7 million up from us$ 257.6 million in 2013.

This increase was attributed to the confidence that the country has gained from foreign investors. Mauritius is the leading investor with $ 113.5 million followed closely by Switzerland with $106.2 million (Tabaro 2016). The third and fourth are the U.S.A and Luxembourg with $70 and $52.6 million respectively.  Of all the investment sectors, the ICT industry came third with a total investment of US $ 116.1 million (Tabaro 2016). By 2014, the investment in the ICT sector reached USD 453.4 million (Tabaro 2016). The investment in the ICT is mainly attributed to technology companies which include Olleh Rwanda Network, a company that is from Korea which provides the internet in the country (Tabaro 2016).     

The ICT sector in the country is still not fully exploited. The country has the vision to ensure that all citizens have access to computers. The government launched a One Laptop per Child (OLPC) program which is aimed at ensuring that students have access to information technology and encourage critical thinking in schools (Tashobya 2015). This presents an opportunity for laptop manufacturers to invest in the country which relies heavily on imports.

 ARTS should look for means on how to make their product line cheaper in Rwanda. This would increase demand for their products due to the fact that their laptops have a high technology capacity compared to their competitors. It is also recommended to study the market first and understand the trend in technology in the Rwandan market.

List of References

Government of Rwanda. 2010. Rwanda Special Economic Zone Policy [Online]. Available at: https://www.minicom.gov.rw/fileadmin/minicom_publications/policies/SEZ_Policy_Cleaned_.pdf

Positivo BGH, 2015. Positivo BGH. [Onine]. Available at: https://www.positivobgh.com/africa/

Republic of Rwanda, 2015. Positivo, made in Rwanda computer to increase country’s export [Online]. Available at: https://www.minicom.gov.rw/index.php?id=24&tx_ttnews%5Btt_news%5D=1010&cHash=edd69331bdbe03c21c0517365967bb46

Republic of Rwanda. N.d. [Online]. SMART Rwanda Master Plan 2015~ 2020: A prosperous and knowledgeable society through SMART ICT. Available at: https://www.myict.gov.rw/fileadmin/Documents/Strategy/SMART_Rwanda_Master_Plan_v2.5.pdf

Research Ideas. 2017. Pest Analysis of Rwanda Republic [Online]. Available at: https://www.sachdevajk.in/2016/12/19/pest-analysis-of-rwanda-republic/

Tabaro, J.C., 2016. Foreign Owned Investments in Rwanda Increase by 78%. KTPress [Online]. Available at: https://ktpress.rw/2016/06/foreign-owned-investments-in-rwanda-increase-by-78/

Tashobya, A., 2015. Government to revamp One Laptop per Child programme. Newtimes.[Online]. Available at: https://www.newtimes.co.rw/section/article/2015-03-19/187049/

Twahirwa, A., 2017. Rwandan Foreign investments increased over last two years. National Institute of Statistics of Rwanda [Online]. Available at: https://statistics.gov.rw/node/813