Written by Jaco Visser | From Bloomberg

Fourteen years of Rwanda rule by Paul Kagame, whose forces ended the 1994 genocide that killed at least 800,000 people, is rewarding bond investors with record low yields amid the fastest economic growth in East Africa.

Growth in the landlocked nation will reach 7.5 percent this year, up from 5 percent in 2013 and versus 5.4 percent for all of sub-Saharan Africa, the International Monetary Fund said last month. Rwanda’s first dollar bonds, sold in April last year, returned 9.3 percent since Dec. 31, compared with 6.6 percent for emerging-market peers, according to Bloomberg indexes.

President Kagame, 56, who said in January he may return to markets this year to borrow about $1 billion, is building roads and Internet connections, tackling corruption and making it easier to start businesses. Foreign aid has resumed after some donors withheld funds in 2012 following allegations by the United Nations, denied by the government, that the country was backing rebels in neighboring Democratic Republic of Congo. Germany pledged 18 million euros ($25 million) in November.

“Rwanda is a sound macroeconomic story and that is why the bond has done so well,” Rune Hejrskov, who helps oversee $1.4 billion in emerging-market debt at Jyske Bank A/S, including the nation’s bonds, said by phone from Silkeborg, Denmark, May 13. Progress includes “government reforms, a reduction in crime, improving infrastructure,” he said. “In house, we call it the Singapore of Africa.”

Read more at Bloomberg