Rwanda’s long-term development goals are embedded in its Vision 2020. Vision 2020 seeks to transform Rwanda from a low-income agriculture-based economy to a knowledge-based, service-oriented economy with a middle-income status by 2020.
World Bank’s Doing Business 2014 report cited Rwanda as a “top performer,” one of the most improved economies in 2013. The landlocked country is currently ranked the second easiest place to do business in sub-Saharan Africa. Yet, despite its business friendly reputation, Rwanda lags behind in foreign direct investment compared to some of its East African neighbors. In 2013 Rwanda’s GDP growth slowed to 5% compared to previous years where the growth had been around 8%.
According to Heritage Foundation’s 2015 Index of Economic Freedom, Rwanda’s economic freedom score is 64.8. Rwanda received the same score the year previous despite having improved in half of the 10 economic freedoms, including freedom from corruption and trade freedom. Its score was undermined by a significant decline in business freedom. Rwanda is ranked 4th out of 46 countries in the sub-Saharan Africa region.
According to World Bank’s Enterprise Surveys 2013 data, poor infrastructure, the lack of access to electricity and limited generation capacity are some of the major constraints to private investors in Rwanda. The Rwandan government has implemented numerous reforms to improve its business environment and reduce the cost of doing business.
United Nations Conference on Trade and Development STATS.
Related Blogs and Resources
Published on June 12, 2017
East African Community (EAC) member states have prioritised development expenditure as countries look to further strengthen the growth agenda of the regional economies.
In the national budget estimates presented yesterday, Tanzania will be spending $14.21 billion and Uganda $8.09 billion in the fiscal year 2016/17. Rwanda plans to spend some Rwf2.09 trillion compared to the Rwf1.95 trillion spent this fiscal year.
Kenya’s budget for the 2017/2018 fiscal year was presented in March to give room for the forthcoming general elections in August. The EAC states presented their 2017/18 budgets under the theme, ‘Industrialisation for job-creation and shared prosperity’. Read more. Source | New Times
Published on June 12, 2017
In a bid to benefit from the African Growth and Opportunity Act (AGOA) extension, US companies will now partner with Ugandan companies especially in agribusiness.
The business partnerships are expected to step up Uganda’s production and capacity of the agricultural sector, levels of trade and investment between the two countries.
This was one of the outcomes during the meeting between the US agricultural trade mission and the Private Sector Foundation Uganda stakeholders in Kampala last week. Read more. Source | Daily Monitor
Published on June 07, 2017
Uganda Free Zones Authority (UFZA) has issued two developer’s Licences to M/s Fiduga Limited and M/s Royal Van Zanten Limited.The companies are meant to develop Free Zones in Mukono and Mpigi Districts in Uganda.
A Free Zone is a special designated area where goods introduced into the area are generally regarded, so far as import duties are concerned, as being outside the Customs territory. These include Export Processing Zones or Free Port Zones. Ms Evelyn Anite, the minister of State for Privatisation and Investment, speaking during a field tour at Nsimbe estates recently, said the two companies that are already in the business of exporting, will further contribute to towards addressing the export gap by investing up to a tune of US$ 365 million (about Shs1.3 trillion) by 2021. Read more. Source | Daily Monitor
Published on May 17, 2017
The secretary general of World Customs Organisation Kunio Mirukiya has called for combined efforts towards boosting intra-African trade, proposing a number of reforms to ensure customs facilitate trade within the region.
“First is infrastructure at borders because what is lacking is systems that can facilitate movement of goods and people. Customs should coordinate border management, have one stop border post or a single window and more security by collaboration is what Africa should be looking at,” Mr Mirukiya said at the 22nd World Customs Organisation East and South Africa council governing meeting in Kampala last Thursday.
The meeting that attracted 22 countries from East and South Africa was aimed at looking at how best customs can facilitate trade and creating a platform for countries to collaborate and fight mutual challenges within the region. According to Mr Tom Moyane, the commissioner of South African Revenue Service, intra-African trade is an opportunity for the continent to look at the comparative advantage and economies of scale it can enjoy. Read more. Source | Daily Monitor
Published on March 22, 2017
Panelists for the East Africa Postharvest Technologies Competition 2017 have selected 46 innovators, from over 200 applicants, to undergo accelerator training on how to package and pitch their technologies to investors. The training will help the innovators expand their opportunities for scaling up and disseminating their technologies to a wider market. The training will take place in Tanzania on April 4-6, 2017.
Applicants are competing for the best technological solutions to address post-harvest losses. They hail from Kenya, Uganda, Tanzania, Rwanda and Burundi.
The Inter Region Economic Network (IREN) is conducting the inaugural East Africa Postharvest Technologies Competition 2017 through a grant from the Hub. The objective is to spur the development of innovative technologies that reduce food loss and waste in Africa.
Published on March 20, 2017
Speaker Rebecca Kadaga has said Parliament will next month invite Ugandans from different parts of the country to exhibit their traditional fashions.
Speaking to journalists at the Italian ambassador’s residence last week, Ms Kadaga said Ugandans need to be encouraged to start consuming locally made goods to support local manufacturers rather than spending money on foreign goods.She added that the US Agoa delegation will be in Parliament on April 10 and 11 to show Ugandans what they want and how they can enter the market because there are many good things in Uganda which Ugandans themselves are ignorant of. Read more. Source | Daily Monitor
Published on March 16, 2017
On March 15, Uganda's Permanent Secretary for the Ministry of East African Affairs led her staff, public officials from other ministries, private sector and the Hub in updating Uganda's progress in implementing the EAC Common Market Protocol. Government ministries and regulators provided updates on the stage of reforms that they have achieved in relation to key commitments to the free movement of capital, services and goods. Of note is that the Investment Code Bill 2017 -- prepared with Hub input -- has now been endorsed by Uganda's cabinet and presented to parliament for adoption. The code removes several measures that constrain access to Uganda's markets for investment and improves its compliance to the movement of capital. You can view the Hub's complete presentation here.
The Hub holds regular country updates to appraise the private and public sector on the progress the EAC Partner States are making toward full implementation of the EAC Common Market Protocol. The Hub’s supports these sessions to strengthen Uganda’s legal and regulatory environment for expanded trade and investment. The protocol creates a framework for economic integration among Partner States where there is free movement of goods, labor, services and capital.
In partnership with leading advocates of the High Court from all the East African Community Partner States, the Hub has collected and analyzed bills and Acts of Parliament, drafts and existing regulations and administrative notices from Uganda and the other EAC Partner States over the last three months, and has prepared presentations highlighting these efforts. The presentations assess progress towards implementing key trade and investment-facilitating commitments in respect to the EAC CMP.
Published on March 09, 2017
Following the release of the Mastercard Index of Women’s Entrepreneurship (MIWE) on International Women’s Day, it was revealed that 34.8 percent of businesses in Uganda are owned by women, making it one of the top performing African countries highlighted in the index.
The MIWE is a weighted index that helps to better understand and identify factors and conditions that are most conducive to closing the gender gap among business owners in any given economy. The three factors include Women’s Advancement Outcomes, Access to Knowledge and Financial Services, and Supporting Entrepreneurial Factors. For the 2016 Index, Mastercard examined 54 different economies around the globe, including Botswana, Ethiopia, South Africa and Uganda. Read more. Source | PC Tech Magazine