Business reforms in this East African country have placed it as a top business destination among the countries in Sub-Saharan Africa.
The latest Global Competitive Index (GCI) report issued by the World Economic Forum (WEF) has ranked Rwanda 80th as a national economy, leading East Africa Cooperation (EAC) state members. The Global Competitiveness Index measures institutions, policies, and factors such as education and access to markets that contribute to sustainable economic prosperity.
The other represented EAC nations are Kenya, Tanzania, Uganda and Burundi. They are ranked 106th, 113th, 118th and 137 respectively.
Early this year the World Bank Doing Business report 2010 also placed Rwanda ahead of other EAC states due to reforms that have eased the process of starting and running a business.
The World Bank report stated that Rwanda emerged as the global top reformer in 2008/09 for carrying out seven of the nine reforms enacted in the region over the review period. The Reforms included facilitating trade across borders, property registration and access to credit through commercial laws and institutions.
Notable steps undertaken in Rwanda after the 1994 genocide include fast-tracked investment in infrastructure and Information Communication and Technology (ICT).
For instance, the registration of a company in Rwanda takes 3 days whereas in Kenya it takes 21 days. Rwanda’s reforms undertaken in land ownership, access to credit and easy dispute resolution have attracted foreign investments.
The growing competiveness of Rwanda as an investment hub in East Africa has seen investors rush to the landlocked country. Kenya Commercial Bank (KCB), Nakumatt Supermarkets and East African Cables are among some of the major Kenyan businesses that have setup base in Rwanda.
The commercial headway made by the East Africa common market protocol is further expected to give Rwanda a competitive advantage and access to a market of over 130 million people.
In Sub-Saharan Africa, South Africa is the highest ranked country followed by Mauritius and Namibia at 54th, 55th and 74th respectively.
Photo by Dilly Lama
