As geopolitical tensions and climate disruptions strain global logistics, nearshoring has become more than a buzzword—it’s a strategic imperative. And while Mexico dominates headlines, two unexpected leaders are emerging: Rwanda in Africa and Vietnam in Southeast Asia.
Nearshoring—the shift of manufacturing and services closer to end markets—is accelerating. A 2025 McKinsey report finds that 73% of multinational firms are actively relocating at least one production line to reduce risk.
Vietnam has long been a beneficiary, with electronics exports hitting $132 billion in 2024. But Rwanda’s rise is equally compelling. Through its Special Economic Zones (SEZs) and one-stop digital business portal, Rwanda has attracted firms like C&I Leasing (Nigeria) and Africell (UK) to set up regional tech and logistics hubs.
Critically, both nations prioritize skills over subsidies. Rwanda’s Centenary Bank partners with Andela to train software engineers for exportable tech services, while Vietnam’s government funds vocational colleges aligned with Samsung and Intel’s hiring needs.
Trade data confirms the trend: Rwanda’s services exports grew by 31% in 2024, while Vietnam’s foreign direct investment hit a record $38 billion—much of it from EU and U.S. firms seeking alternatives to China.
Unlike offshoring, nearshoring in these regions offers time-zone alignment, cultural agility, and regulatory stability. For European companies, Rwanda is just a 6-hour flight away; for U.S. firms targeting ASEAN, Vietnam is a natural gateway.
“Nearshoring isn’t about geography—it’s about reliability,” says Dr. Amina Diallo, trade economist at the UN Economic Commission for Africa. “Rwanda proves that small economies can punch above their weight with smart policy.”
Follow us on Instagram.
https://www.instagram.com/businessnewsng?igsh=ZXpweTdjOGF1ZXdu
