Unlocking Rwanda's Potential: A Formidable Economy & The Gateway to Africa

Somewhere in East-Central Africa, there is a land spanning a total area of 26,338 km2 that is set to be the next frontier of economic growth. This is the Land of a Thousand Hills, this is Rwanda.

Although Rwanda is geographically small and landlocked, it has proven to be a formidable economic force both regionally and globally— and its strategic position at the heart of Africa would be foolish to overlook.

In 2023, Rwanda’s economy grew by a significant 8.2%, surpassing experts’ predictions of a 6.2% growth. Despite global economic challenges, Rwanda has also remained resilient as it maintained a 6.9% average economic growth over the past 7 years— showing no signs of slowing down in 2024.

This year, the Rwanda Development Board (RDB) is working with my team ( Vinod Naidu Munikrishnayya , Nyoomi Kamani , Atheerah Azmil , Andrea Jallong and Iskandar Rahim, FCCA, MBA ) from PEMANDU Associates to advance the Rwanda Private Sector-led Transformation Programme (RPTP), which aims to accelerate high-impact private sector-led development in the country.

In alignment with Vision 2050 and the National Strategy for Transformation (NST-1), we are working with RDB to attract investments and projects that will radically transform the economic landscape of the nation.

Building on Rwanda’s momentum of strong economic advancement, the International Monetary Fund (IMF) has projected that Rwanda will be one of the fastest growing economies in 2024. Its unrelenting growth demands an examination of the economic, social, and political contexts that have created favourable conditions for national success.

So, how is a small nation becoming one of the world’s strongest economies; and why should Rwanda be your next business destination?

ECONOMIC HIGHLIGHTS

EASE OF DOING BUSINESS

The World Bank's "Ease of Doing Business” report ranked Rwanda 29th in 2019 and 38th in 2020 out of 190 economies worldwide. According to the Rwanda Development Board, key reforms in electricity supply, building permits, contract enforcement, digitisation, incentives to start a business, unrestricted foreign ownership, and capital flows, etc. strongly advanced its regulatory business environment.

Making business easy has allowed Rwanda to maximise the economic benefits derived from investments and innovation in the country.

STRONG REGIONAL INTEGRATION

Rwanda is a member of the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA), Common Market for Eastern and Southern Africa (COMESA), The Economic Community of Central African States (ECCAS) and several other economic agreements that pave the path toward stronger regional integration.

With strategic economic partnerships internationally and specifically within Africa, Rwanda serves as an excellent gateway to doing business beyond its own borders.

EMPHASIS ON SUSTAINABLE DEVELOPMENT GOALS

Placing a strong emphasis on sustainable development, environmental conservation and social inclusion at the heart of its national policies, Rwanda is determined to ensure that its economic expansion does not come at the cost of climate wellbeing or vulnerable communities. The government's Green Growth and Climate Resilience Strategy is one such display of aligning sustainable development goals to national targets such as Vision 2050 and the National Strategy for Transformation.?

SOCIAL HIGHLIGHTS

GENUINE COLLECTIVE ACCOUNTABILITY

Rwandans have a sharp sense of collective accountability, as evidenced by the hallmark “Umushyikirano”, also known as the National Dialogue Council. This annual event brings together the entire Rwandan diaspora to discuss topics of national importance, allowing a platform to exchange ideas, share experiences and address concerns regarding policies, regulations, and strategic direction. ?

Collective accountability is also engrained in the Rwandan DNA through other forms, as seen during the monthly “Umuganda” day which brings members of communities together to collaborate on public projects not limited to environmental conservation or infrastructure maintenance.

Community interests are protected by strong social ties and practices, which naturally extends to individual wellbeing.

WALKING THE GENDER EQUALITY TALK

Rwanda is the first country in the world with a female majority parliament, signalling that they are keenly aware of the role of women’s empowerment and gender equality on national development as reflected in various level of leadership and political participation. The parliamentary elections in September 2018 saw women leaders fill majority of the seats, making the proportion of women members of parliament 61.25% today, significantly higher than the global average of 26.5%.

Rwanda has undeniably set the tone for countries all over the world to follow.??

EXTENSIVE SOCIAL PROTECTION EFFORTS

This country has weathered intense economic, political, and social instability, most notably resulting from the 1994 Genocide against the Tutsi. In 2018, the Government of Rwanda (GoR) updated and adopted the National Social Protection Policy (NSSP), which proposes a more comprehensive vision for social protection that encapsulates social security, short-term social assistance, social care services and targeted livelihood and employment support.

Priority areas include:

• increase access to social security and income support programmes, particularly among vulnerable older people, people with disabilities, households with low labour capacity and other poor families
• enhance social protection sector’s contribution to reducing malnutrition
• strengthen support for households and communities affected by disasters and shocks
• strengthen the provision of social care services for the protection and inclusion of the most vulnerable
• strengthen linkages between social protection and complementary programmes that support sustainable graduation from extreme poverty
• promote values of self-reliance, respect for rights and community-based support for the vulnerable
• strengthen institutional capacity for evidence-based policy development and social protection service delivery.

POLITICAL HIGHLIGHTS

GOOD GOVERNANCE PRACTICES

Under the leadership of H.E. President Paul Kagame, Rwanda has made strides in establishing good governance practices, which serves as a foundation for the economic success it has achieved today.

Apart from the active involvement of the Rwandan diaspora in national developments via the annual National Unity Dialogue Council, the GoR has also put several measures in place to encourage good governance, such as the National Tender Board, the Office of the Auditor General and the Ombudsman’s Office.

In 2016, a public institution known as The Rwanda Governance Board (RGB) was also established to promote good governance principles and monitor service delivery across public and private sector institutions, as well as civil society organisations.

ANTI-CORRUPTION DRIVE

Ranking in the "top 50 clean countries" globally according to Transparency.org's Corruption Perceptions Index 2023, Rwanda has demonstrated a strong drive to curb corruption. Rwanda was among the first countries to sign and ratify the African Union Convention on Preventing and Combating Corruption (AUCPCC) and has made significant progress in implementing strong legal framework for dealing with corruption; including protection for Rwandans who expose corruption, empowering civil society and the media to act, and bringing the fight against financial crimes to the forefront of its governance.

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All of these highlights send us a strong signal that: now is as good a time as ever to leverage Rwanda’s radical economic expansion.

Learn more at rdb.rw or connect with me to understand the work Rwanda Development Board (RDB) is doing for the Rwanda Private Sector-led Transformation Programme (RPTP).