Rwanda's multimillion-dollar tourism industry is under threat over DR Congo conflict

Yahoo

28-02-2025

Rwanda's booming $640 million tourism industry is threatened by its backing of M23 rebels in neighboring DR Congo, experts told Semafor, as Kigali comes under growing international pressure over its role in the conflict.
This week the UK joined Belgium in suspending aid to Rwanda over what they say is its support for M23 — an allegation Kigali has repeatedly denied — while the US last week sanctioned a government minister who is a key ally of Rwandan President Paul Kagame.
Kigali's ability to strike deals with global sports federations and brands — which have helped drive tourism revenue — is at risk, multiple sports marketing executives told Semafor. They said Rwanda's high-profile bid to host a Formula 1 grand prix was in particular jeopardy.
'Rwanda's momentum could be slowed or worse yet, cease altogether,' said Chris Miles, a global sports marketing executive and founder of Indianapolis-based Starting Grid, which works to increase diversity in motorsports. For global brands like F1 that are mulling bringing a grand prix to Kigali, he argued, 'the risk far outweighs the reward,' referring to geopolitical risks and safety concerns for event participants, fans, and other staff. That in turn could hamper Rwanda's critical tourism revenue and the local economy.
Last week the EU Parliament called for the cancellation of the road cycling world championships that Kigali is set to host in September, bringing the importance of sporting events to the country firmly into the spotlight. Michael Hart, CEO of motorsport-focused sponsorships firm The CarMichael Group, said the diplomatic pressure could be a 'red flag' for companies considering engaging with Rwanda, and that the cancellation of existing deals or scheduled sporting events could have a knock-on effect on other negotiations such as Kigali's F1 bid.
The Union Cycliste Internationale, the world governing body of cycling, told Semafor it was 'closely monitoring developments in the eastern region of the DR Congo and their potential impact on the organisation of the UCI Road World Championships.' F1 did not immediately respond to a request for comment.
Rwanda has sealed global tourism promotion partnerships with top-flight European clubs in recent years including Arsenal, Paris St-Germain, and Bayern Munich. It has also attracted international sporting events including the NBA's Basketball Africa League.
In December, Kigali hosted F1 drivers including Redbull's four-time championship winner Max Verstappen, McLaren's Lando Norris, and Ferrari's Charles LeClerc at the International Automobile Federation's annual prize-giving ceremony, highlighting its push to host a grand prix.
A successful bid would require Rwanda to spend more than $200 million on creating the necessary infrastructure, including a new track and media facilities.
Hosting the event would not only cement its reputation as a global sporting hub but allow Rwanda to tap into an F1 audience of more than 70 million viewers worldwide. It would also inject substantial revenue into the economy from ticket sales to sponsorships, hosting fees, and an influx of international visitors spending on local food, accommodation, transportation and more. Foreign Minister Olivier Nduhungirehe told Semafor in December that sporting events in 2023 had helped drive a 36% increase in tourism revenues — hitting $636 million — up from $445 million the previous year. Tourism revenue for the first nine months of 2024 stood at $448 million, officials said at the time.
Rwanda's tourism sector has appeared resilient so far this year. The country has staged several conferences and events despite the ongoing conflict in neighboring DR Congo. But some high-profile attendees have come under public pressure to boycott the country on account of the war. Human rights groups and activists called for acclaimed US singer John Legend to pull out of this week's Move Afrika concert in Kigali. He pressed ahead, saying he 'didn't believe that we should punish the people of Rwanda… when we disagree with their leaders.' But Nigerian Grammy-winning singer Tems took a different stance and pulled out of the concert, saying she would 'never, ever intend to be insensitive to real-world issues.' Other events such as the Inclusive FinTech Forum, attended by regional tech leaders, went ahead as planned this week.
Kinshasa, the UN, and multiple Western countries have accused Rwanda of backing M23 with arms and troops. The rebels have seized swaths of eastern DR Congo since the start of the year, including the key cities of Goma and Bukavu, and have said they are targeting the country's capital. Rwandan officials have denied that Rwanda's troops are directly supporting M23. But they have repeatedly emphasized that Rwanda needs to protect itself against armed groups in the country such as the FDLR (Democratic Forces for the Liberation of Rwanda), which it considers a threat to national security.
'Rwanda's economic interests, including our tourism sector, are better served by peace, not by conflict,' a Rwanda government spokesperson told Semafor. 'We have built a thriving tourism industry based on our hard-earned reputation for stability and safety, which is precisely why Rwanda continues to advocate for a political solution to the crisis in eastern DRC.'
While established global sports brands may be more reluctant to partner with Rwanda under the current circumstances, the diversification of the country's tourism industry is likely to cushion it against any short-term impacts.
The country's vibrant Meetings, Incentives, Conferences, and Exhibitions (MICE) sector contributed $95 million to tourism revenues in 2023, when it hosted 160 events, representing a 52% jump from $62 million the previous year. Several major conferences are lined up for Rwanda in 2025, including the Mobile World Congress in Kigali in October.
David Adeleke, founder of pan-African creative economy publication Communiqué, argued that Rwanda would keep attracting tourists due to its smart investments in the sector, including high-quality event facilities and supporting infrastructure. He noted that intra-African travel could also offer a boost, as Kigali's offering of visa-free access to citizens of African countries makes it an attractive event destination despite the ongoing conflict. 'People will keep going to Rwanda,' he said. 'It's about value, and Rwanda still presents real value.'
Some Arsenal fans have questioned the sponsorship deal between the club and Visit Rwanda, Kigali's tourism promotion campaign, in light of the DR Congo conflict: 'I've contacted the club several times over it and didn't even get one of those bland PR responses. Which tells me they can't defend it,' wrote one fan on a club community forum. 'Weird how such a progressive club would have such an association,' posted another.More than 7,000 people have died in eastern DR Congo since January, Al Jazeera reported, and tens of thousands displaced.