Commercial Diplomacy in Action: Rwanda’s Partnership with FC Bayern Munich

On 27^th August 2023, the Rwandan Development Board and FC Bayern Munich announced a five-year sponsorship deal. For Rwanda, this is not the first time they partnered with an internationally known football club to promote Rwandan tourism.

In 2018, Rwanda signed a three-year, £10 million per year sleeve sponsorship deal with Arsenal football club. The following year, in 2019, it signed a new three-year agreement with Paris Saint-Germain (PSG) for somewhere between €8 to €10 million per year. Akin to the Arsenal deal, the sleeve deal would advertise Rwandan tourism under the slogan ‘Visit Rwanda’.

Akin to the previous deals, the new Bayern Munich sponsorship raises criticisms about whether a developing country such as Rwanda should use its national finances on these deals with billionaire football clubs. Additionally, questions arise about whether these football clubs should be engaging with a country that faces accusations by human rights groups for interference in neighbouring Democratic Republic of Congo and domestic human rights abuses. While this accusation is nothing new, it ignores why the Rwandan government believes it needs to partner with these international football clubs.

What is the Strategy for Rwandan Development?

Within the Rwandan government is a drive towards economic development to prevent future genocide. The Genocide against the Tutsi in 1994 witnessed an estimated one million deaths within only 100 days. One of the believed causes for the genocide was the lack of economic development, thus leading to people having the time to commit massacres. While the likelihood of another genocide is relatively minimal, it still is feared by the current government. Additionally, the current government wants to limit the economic impact of foreign aid withdrawals, as seen in 2012-2013.

While Rwanda is still reliant on foreign aid, composing up to 40% of national income, there is a strong distrust in it as a reliable mechanism to promote sustainable development. Instead, the country’s macroeconomic visions look towards developing the tourist sector. The primary tourist attraction can be found within the Virunga Mountains, which are known for their silverback gorillas. However, Rwanda is also promoting other environmental tourist areas, such as the Akagera National Park and Nyungwe National Park, along with the vacation cities of Gisenyi and Karongi.

The goal of developing these parks and vacation locations is to increase the number of not only domestic but, more importantly, foreign tourists. The expectation is that these foreign tourists will benefit the local and national economies by spending foreign currencies on hotels, park permits and other services while staying in Rwanda. This will have a knock-on economic effect that will benefit Rwandan businesses and the economy.

The Role of Commercial Diplomacy:

To promote tourism and foreign direct investment, Rwanda has pursued a policy of commercial diplomacy. Unlike more traditional forms of diplomacy, commercial diplomacy is aimed towards businesses and economic interests. The hope is that the Rwandan Development Board (RDB) can negotiate deals with foreign investors to invest in Rwanda. President Paul Kagame is a significant actor in the nation’s commercial diplomacy, often swaying business leaders such as Warren Buffett to invest in the country.

The ‘Visit Rwanda’ slogan on the football jerseys of Arsenal, PSG, and now FC Bayern Munich is a key mechanism in that commercial diplomacy. The Rwandan government perceives these sleeve sponsorships as a type of advertisement for the tourist sector. Akin to a billboard, the hope is for people in the Global North who watch these football clubs to see the slogan and, whether consciously or subconsciously, think of Rwanda.

As with any advertisement strategy, whether this is an effective tactic is up for debate. During the initial Arsenal deal, some questioned whether football fans in attendance would have the financial resources to visit the central African nation. However, the RDB believes these football clubs have a global audience that will be impacted by the ‘Visit Rwanda’ slogan on not only the jersey’s sleeves but also the practice uniforms and signs boarding the football pitch.

However, it is important to note that this is not the only tactic within Rwanda’s strategy to increase tourism numbers. The attraction of international business leaders like the previously mentioned Warren Buffett business leaders from companies such as Visa, JP Morgan Chase, Starbucks, Costco, Marriott International Inc and multiple others is included. Additionally, Rwanda attracts cultural and societal stars, such as the most recent Indris Elba and Kevin Hart visit to Rwanda.

How to Measure its effectiveness?

Akin to most advertisements, measuring effectiveness is difficult. One Rwandan café owner commented how he believed the ‘Visit Rwanda’ campaign is effective based on his experiences meeting with a more significant number of foreign tourists who said they decided to visit Rwanda after seeing the campaign. While some connections can be made between consumers impacted by advertisements, it is nevertheless unknown. The Rwandan government commits to the policy as it sees growth in the tourism sector. However, the global Covid-19 pandemic and economic slowdowns impacted tourism in Rwanda and the rest of the world.

Thus, it becomes even more difficult to conclude that these deals have benefited Rwanda. Nevertheless, tourism has increased within Rwanda. The World Bank estimates that before the sponsorship deal in 2017, Rwanda received just over 1.5 million tourists. This number increased to 1.7 million the following year before dropping slightly to 1.63 million in 2019. More recent data is difficult to verify with the pro-government newspaper, The New Times, stating how the number of tourists has recovered to 90 per cent of the pre-Covid levels. 

Whether the ‘Visit Rwanda’ campaign on these football kits is effective, the nation will continue to face criticism. The use of the nation’s limited resources on the campaign appears on the surface as a small developing African nation giving millions to clubs worth billions. However, for Rwanda’s economic development, the campaign is part of the nation’s overall commercial diplomacy to promote the tourist industry. Achieving this new sponsorship with FC Bayern Munich will be an accomplishment in entering the German market.