A few months ago, Rwanda was named the world’s easiest country to do business with by a recent World Bank study. The survey assessed a series of indicators such as ease of starting business, dealing with construction permits, employing workers, getting credit and paying taxes.
Rwanda scored high on starting a business, employing workers, protecting investors and contract enforcement. Therefore, what lessons can African economies learn from this tiny country with an unfortunate history?
Rwanda has made strong strategic choices and developed systems to closely monitor and implement reforms. These reforms have created a conducive environment to attract foreign direct investment and stimulate economic growth.
It has set up good public sector governance systems, a facet that has attracted the donor community.
The former British premier Tony Blair has been a resident volunteer advisor to the president of Rwanda on a series of government issues including policy formulation, coordination and creation of a think-tank. The think-tank steers Rwanda’s regeneration and ensures a well-planned infrastructure.
The administration in Kigali has embarked on development of the central business district. The country is promoting public private partnerships as a means of providing the badly needed capital for investment projects.
The political commitment to minimise corruption has meant that projects are approved on time with minimal delays.
The country was named by the United Nations Conference on Trade and Development, as the number one country in East Africa on Information Communication Technology. Rwanda has heavily invested in technology and over 1,500 primary schools are equipped with computers.
There are a number of things that Rwanda is doing right. The country has established key priority areas needed to steer its development.
The country has embarked on systematic reforms cutting the costs of starting and sustaining business by almost half. It now takes one day to start a business up from 16 days. The registration fees were slashed from $400 (sh800,000) to only $43 (sh86,000). Rwanda’s evolution teaches African economies that developing countries have the potential to deliver sustainable development which can change the livelihoods of their people.
The writer is a researcher at the Microfinance Support Centre
