A World Bank report has listed Rwanda as the most favourable destination for investors in the East African region for the second year running. Africa Report looks at what makes Rwanda an Eldorado for investors.
Despite being landlocked, Rwanda emerged top in the ‘Doing Business in the East Africa Community’ report 2011, which also showed that the four other East Africa Community (EAC) member states had improved in the rankings.
What was their recipe to success? Rwanda initiated several reforms that improved the business environment in the country, making it the most competitive in the region. Thanks to such reforms, it earned a spot at the top ten of the most improved countries in the world. Neighboring Kenya emerged second in instituting reforms to eliminate barriers to trade, quickly followed by Uganda, Tanzania and Burundi.
Globally, Rwanda was ranked 58th out of 183 countries, while Kenya was ranked at position 98, Uganda at 122 and Tanzania at 128. Burundi fell among the least competitive ranking only at position 181. On average the EAC, a regional economic integration the five states, was ranked 117 out of 183.
According to the co-author of the report released in Arusha-Tanzania, Sabine Hertveldt, East Africa can match up Japan if it introduces the right business reforms.
If each East African country was to adopt the region’s best practice for Doing Business Indicator, East Africa would rank 18, bringing the Community closer to the global top performers like Japan,” said Hertveldt who is also the World Bank Senior Private Sector Development Specialist.
The EAC Deputy Secretary General in charge of Planning and Infrastructure, Dr. Enos Bukuku, urged the five member states to continue implementing reforms that would make the region more attractive to investors and promote the growth of the private sector.
We are serious about our role in the creation of an environment which is attractive to increasing private sector activity within and across our borders. We can do this by further streamlining regulations affecting businesses and by ensuring that the business environment is reassuring to investors,” said Dr. Bukuku
The World Banks report Doing Business survey measures the ease of doing business in 183 countries. Countries are ranked depending on reforms introduced to make it easy for investors to start and run a business. Reforms should focus on the ease of registering property, accessing credit, protecting investors rights, taxation, cross border trade, enforcing contracts, dealing with construction permits and closing a business.
Well done to Rwanda for making a difference and paving the road to easier, better and more efficient entrepreneurship in Africa!
Delly
October 14, 2011
It’s wnodefrul to have you on our side, haha!