FDI within Rwanda has actually been decreasing because of a larger pullback of donors out of Rwanda [0][1]
Most high value projects that are being built in Rwanda are being targeted at the energy sector [2]. Specifically in oil refining. The other half of major exports from Rwanda is gold, that is primarily extracted from DRC and exported from Rwanda.
Compared to its peers in East Africa, the Rwandan economy is much less complex than it should be. In all honesty, it's smokes and mirrors exacerbated by a strong PR relationship between the Rwandan govt, donors, and NGOs. You don't hear half as much about Kenya, Tanzania, or Uganda as you do about Rwanda, yet almost everything within Rwanda is basically being managed by donors, and a couple Chinese and Indian conglomerates making a quick buck [3]
> Sometimes free market economics lets countries grow without a government plan
Free Market economics still requires a formal vision or strategy to develop a country. South Korea had a formalized strategy in the 80s and 90s, China in the 90s and 2000s, India in the 2000s and 2010s, etc.
If you go purely free market, then there is no actual incentive.
Take a look at neighboring Kenya. Tanzania, and Uganda. They have actual formal industrial and Human capital development projects with the intended aim of building out that muscle locally. The kinds of programs Rwanda creates like this (eg. CMU Kigali) simply don't have an RoI. The exact same thing happened in Ethiopia.
> implying they are doing ok
High GDP growth is expected at Rwanda's stage of development. But Rwanda's rate of growth is not as impressive compared to Cambodia, Kenya, and Vietnam when they were at a similar stage to Rwanda, but with a much lower dependency on foreign aid. Hell, when Kenya was at the exact same stage as Rwanda today in the mid-2000s, they were actively building out an industrial program (eg. Cements), a services economy (eg. mPesa, microfinancing), and investing in govt run universites.
Around 1.3% of GDP growth in Rwanda can be attributed to foreign aid alone. With foreign aid, it ends up getting disbursed and managed by NGOs and Donors directly, not the government. As such, this causes a significant deficiency in institutional knowledge. This has been seen with falsified poverty alleviation and GDP growth data from Rwanda. This is a very big trap that can cause Rwanda to fail to expand beyond their existing capacity. Rwanda's extreme dependence on aid at it's current stage is developing into a form of Dutch disease.
It's already started happening with more capital leaving Rwanda than entering it [4]. When Kenya [5] and Tanzania [6] were in a similar position in the 2000s and 2010s respectively they saw net flows of capital into their countries. This is dangerous as this implies that any economic activity within Rwanda is reaped abroad.
[0] - https://issafrica.org/iss-today/could-fdi-be-rwandas-lifelin...
[1] - https://www.macrotrends.net/countries/RWA/rwanda/foreign-dir...
[2] - https://www.gov.rw/highlights/economy-and-business
[3] - https://asia.nikkei.com/Economy/China-and-India-stage-invest...
[4] - https://tradingeconomics.com/rwanda/capital-flows