EASE OF DOING BUSINESS
Moving up the ladder
By Bindesh Pandey *
What comes to your mind when you hear “ Italy ” and “ Rwanda ”? Chances are with Italy , you ’ d have imagined classic European architecture , a progressive nation , and happy people ; and with Rwanda , you ’ d have thought of some malnourished people in Africa , violence , and wildlife . Unfortunately in this information age when everything we want to know is just a click away , we still have some strong pre-conceived notions .
Just to put it into context , as per recent rankings released by the World Bank on ease of doing business , Rwanda is ranked 41st , while Italy is 46th , Belgium is 52nd , and Luxembourg is 63rd . These rankings speak volumes about Rwanda and the efforts being made by the Rwandan government to transform the country .
Rankings , the critics say , are often perception based . But there is enough credible data around to suggest this growth is for real : since 2000 , Rwanda has experienced remarkable economic growth , with the Gross Domestic Product ( GDP ) rising from $ 1.7bn in 2000 to $ 8.4bn in 2016 . And if we dig deeper , there is a very clear method to the madness . Rwanda has been consistent in its focus on education and building a knowledge-based economy . Education enables you to produce enough employable resources who then contribute to improve their own economic standards as well as boost the economy . Reduction in poverty and GDP growth rate data is a clear indication that the efforts invested by the Rwandan government in education are producing the right results .
This cannot be achieved if you do not have a conducive environment for economic growth . For instance – in getting access to credit ( which is a critical aspect for businesses to flourish ),
Rwanda is ranked 6th worldwide . It provides a great impetus to both small and large businesses to invest , and supplemented by the stable political environment of Rwanda , they can be confident about consistency in policies and accordingly plan and execute their business strategies . Another indicator of reforms at work is the open visa policy . Not many know that Rwanda allows visa on arrival for citizens of ALL countries . I ’ ve travelled extensively for business and hence can safely state that a friendly visa regime is something we always aspire for in countries where we want to do business .
Rwanda is a shining star for Africa and the world at large , however , there are still many more avenues which the country needs to address . While access to credit is great , it is equally important to protect the interest ’ of lenders . That ’ s where t he country ’ s insolvency procedures should be improved . At present , Rwanda is ranked 78th as far as resolving insolvency is considered . There is significant room for improvement there .
In summary , all the leading indicators , data on the ground and firsthand experience of those who have done business in Rwanda confirm that Rwanda is on the right path and in many instances a wonderful example for rest of the emerging economies to follow . As long as the country maintains its focus and consistency in policies , there is no reason why it cannot sustain the growth it has had in the past few years . So , no surprises on seeing the rankings but , as they say , there are miles to go before I sleep . Keep walking , Rwanda ! •
* The author is Business Head ( Africa ) with Newgen Software
16 • RWANDA • 2018