Rwanda
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If the face rings a bell, good guess. Yes, he's Harrison Ford, here with his son to see Rwanda's Virunga Volcanos gorillas, and then to climb Kilimanjaro elsewhere.
Rwanda's economic development can be traced to it's innovative landscape reform program. Communities terraced the hills and valleys during the dry season, so that they could retain topsoil, nutrients and water. This meant greater yields and more productive farming. Photo: A'Melody Lee / World Bank
One of the smallest nations in East Africa, Rwanda, became infamous in the 90s during the genocide massacres. But shortly after 1994, Rwanda started with the revival of various sectors of the economy including the tourism industry, and today has been ranked among the top 20 green destinations by the Global Tourist Guide. The country has gained recognition with the World Economic Forum and the Tourism Competitive Index as the number one sustainable tourism nation, which has seen the the number of visitors entering Rwanda continue to increase year on year. Rwanda is blessed with amazing natural and heritage tourist attractions that have drawn visitors to the country to experience the real African adventure. Below is a list of top attractions not to miss while in Rwanda. 1. Volcanoes National Park Rwanda is one of three nations in the whole world where it’s possible to see gorillas in their natural habitat. Despite the small area of the park with about 125km² of rain forests, it is a home to more than 400 gorillas. Located in Musanze district, it is a 90 minute scenic drive from Kigali International Airport to the trekking point. Trekking is limited to only eight people per group at a cost of USD750 per permit. Besides the mountain gorillas, Volcanoes National Park is also home to golden monkey trekking, and gives you the opportunity to come into contact with these rare primates. 2. Nyungwe Forest National Park Nyungwe Forest National Park is located in the south-western part of Rwanda and has an unmatched biodiversity of wildlife and birding. The park covers over 1,000km of rain forests, making it Rwanda’s watershed place. The main highlight is the dense canopy walk above the forest that offers breathtaking scenic views. The park has the biggest population of black and white colobus monkeys found anywhere in the world with over 300 different troops. Other species of primates including the red tailed monkey, blue monkey, and the grey cheeked mangabey. Chimpanzee trekking is a famous activity in the park where you can get close to man’s closest cousin. Several hiking trails will lead you to a group of habituated chimpanzees and visitors can spend an hour enjoying how chimps feed and groom their young ones with rewarding photographic opportunities. 3. Kigali Kigali is among the top green cities in Africa with some memorable historical attractions. While in Kigali it is possible to visit various memorial sites that commemorate the 1994 genocide, the most famous being the Kigali Genocide Memorial Centre. Visit the Kigali Genocide Memorial Center in Gisozi to see the hard historical facts about the massive killings that left over one million Tutsi and Hutu people dead within just 100 days. 4. Akagera National Park Akagera National Park was named after the Akagera River that flows through the park and feeds into several beautiful swamp fringed lakes. With a backdrop of rolling hills dotted with African acacia woodlands and savannah grasslands, the park was formed to conserve the unique vegetation and wildlife. There are three eco regions in the park that are teeming with about 8,000 wild animals including buffalo, elephant, hippo, giraffe, zebra and several antelope species. Bird life is also prolific with over 480 species of birds, including endemic species such as the red faced barbet. 5. Lake Kivu Lake Kivu is a stunning place to visit for your Rwanda safari. Located along the Rwandan border next to the Democratic Republic of Congo, it offers swimming and boat cruising opportunities on the fresh waters of the great East African rift valley. Visitors can relax and enjoy lake side picturesque views. 6. Butare For a taste of Rwandan culture, delve into its history at Butare’s national museum or at the royal palaces of the former Rwandan monarchs. Visitors to Butare will also get the chance to taste the local cuisine, where several restaurants offer a range of local foodstuffs and international dishes. Also see : Rwandaop holiday deals in Kenya Best Deals on Major Seasonal Holidays – Valentine, Easter, Madaraka, Mashujaa, Jamhuri & Christmas. Variety of options – Safari adventures, Beach, Getaways & International. Only top-rated destinations & pocket-friendly prices. Weekend Getaway Deals in Kenya Self Drive Holiday Deals in Kenya Outdoor Activities in Kenya Madaraka Express SGR Holiday Deals in Kenya Seasonal holiday Deals in Kenya www.southriftgalaxysafaris.com/blog/rwandas-top-6-natural...
Young Rwanda boy who was fortunate to be born after the dark days of his nation. 20 years today from the genocide.
A delegation from Rwanda is attending this year’s UN Climate Change Conference (COP27) taking place in Sharm el-Sheikh, Egypt.
COP27 is an opportunity to:
- Highlight Rwanda’s track record in delivering climate action and vision for a carbon neutral future by 2050.
- Promote Rwanda as an ideal destination for green investment
At the Rwanda Pavilion, the delegation is hosting events and launch initiatives that will shape the future of the sustainable finance ecosystem in Rwanda, and enable the private sector to play a greater role in the country’s climate action efforts.
A delegation from Rwanda is attending this year’s UN Climate Change Conference (COP27) taking place in Sharm el-Sheikh, Egypt.
COP27 is an opportunity to:
- Highlight Rwanda’s track record in delivering climate action and vision for a carbon neutral future by 2050.
- Promote Rwanda as an ideal destination for green investment
At the Rwanda Pavilion, the delegation is hosting events and launch initiatives that will shape the future of the sustainable finance ecosystem in Rwanda, and enable the private sector to play a greater role in the country’s climate action efforts.
Rwanda's waterways are an asset to its agricultural economic activities. Photo: A'Melody Lee / World Bank
A delegation from Rwanda is attending this year’s UN Climate Change Conference (COP27) taking place in Sharm el-Sheikh, Egypt.
COP27 is an opportunity to:
- Highlight Rwanda’s track record in delivering climate action and vision for a carbon neutral future by 2050.
- Promote Rwanda as an ideal destination for green investment
At the Rwanda Pavilion, the delegation is hosting events and launch initiatives that will shape the future of the sustainable finance ecosystem in Rwanda, and enable the private sector to play a greater role in the country’s climate action efforts.
A delegation from Rwanda is attending this year’s UN Climate Change Conference (COP27) taking place in Sharm el-Sheikh, Egypt.
COP27 is an opportunity to:
- Highlight Rwanda’s track record in delivering climate action and vision for a carbon neutral future by 2050.
- Promote Rwanda as an ideal destination for green investment
At the Rwanda Pavilion, the delegation is hosting events and launch initiatives that will shape the future of the sustainable finance ecosystem in Rwanda, and enable the private sector to play a greater role in the country’s climate action efforts.
Youth Connekt Africa Summit : Rwanda's First Lady Attends the Civic Engagement and Volunteerism Session | Kigali 11 October 2019
Rwanda's soil is incredibly rich, but seeing terracing and agriculture like this is really something else!
President Kagame poses with members of the Judicial Corps along with Rwanda's top leaders [from L to R] Prime Minister Edouard Ngirente, Senate President Makuza, Chief Justice Rugege and Speaker of Parliament Mukabalisa.
The Managing Director of the International Monetary Fund, Christine Lagarde, will today begin her three day visit to Rwanda, her first since she came to the helm of the institution in 2011. In an e-mail correspondence with The New Times’ Kenneth Agutamba, Lagarde sheds light on her institution’s current relationship with Rwanda and commends the country’s transformative and inclusive policies that have seen a significant decline in poverty levels.
You come here 20 years after the 1994 Genocide against the Tutsi. In your view, what has been the trigger for Rwanda’s rapid economic renaissance?
My main message to Rwanda is that “Good policies pay off.” Let me set this in a broader context by saying that I am very happy to have the opportunity to visit Rwanda at such a pivotal moment in its history. The horrific events that occurred 20 years ago tore the social and economic fabric of the country, and it is uplifting to see the progress in rebuilding, in peace efforts, and in improving the welfare of all Rwandans.
This truly is an example in terms of social and economic transformation. It proves that effective policies and inclusive growth can be transformational.
The economic performance has been remarkable, with strong annual growth for the past 15 years. This has helped Rwanda make progress towards achieving the Millennium Development Goals. The poorest have benefited from a focus on inclusive growth, with the poverty rate falling to 45 per cent of the population in 2011 from 60 per cent in 2000.
Of course, this rate is still high, but it is definite progress and we see the trend continuing. So, while there has not been a magic bullet or a single trigger, a holistic approach, that also included a focus on the agricultural sector, employment, and gender equality, has been instrumental in sharing the fruits of high growth more widely.
What is the status of IMF relations in Rwanda at present?
We have a very close economic policy dialogue and the IMF is currently supporting the government with a Policy Support Instrument (PSI) – designed for low-income countries that have graduated from financial support but still seek to maintain a close policy dialogue.
The PSI signals the strength of a country’s policies to donors, multilateral development banks, and markets. We also provide technical assistance as part of the Fund’s efforts to increase local capacity and know-how. We have an office in Kigali, where a resident representative, currently Mitra Farahbaksh, ensures our presence in the field.
Rwanda’s PSI, which is in its second year, supports Rwanda’s own policy priorities for strong and inclusive growth, with an emphasis on domestic resource mobilization, private sector development, export diversification, regional integration, and financial sector development.
We recently reviewed this programme and welcomed the country’s continued strong performance. We also agreed with the government that more work needs to be done to further reduce Rwanda’s reliance on aid and increase its resilience to external shocks.
What is your economic outlook for the country between now and 2020?
Our outlook for Rwanda is positive. The economy is recovering from a weak performance in agriculture and delays in related project implementation in recent years. Growth rebounded last year and inflation remains well contained. We expect GDP growth rates to rise gradually towards 7-7.5 per cent in the medium term, while inflation remains within the medium-term target of 5 per cent.
I am particularly impressed with the government’s continued commitment to poverty reduction.
As part of my stay here, I will be visiting the Agaseke Handicraft Cooperative and the ICT hub (knowledge Lab) in Kigali to see firsthand how the government has managed to improve the welfare of vulnerable and disadvantaged groups such as women and youth.
As your readers are aware, the Economic Development and Poverty Reduction Strategy for 2013–18 focuses on economic transformation, rural development, and youth employment. The strategy is rightly aimed at further reducing poverty.
I think that the continued rollout of planned measures and the successful inclusion of the private sector in leading economic development will help make sizeable inroads in making growth even more inclusive and in reducing inequality.
In a recent advisory by the IMF Board, they encouraged Rwanda to widen its tax base and put emphasis on domestic revenue sourcing. What is your advice on this?
We are devoting a significant portion of our technical assistance to support Rwanda’s efforts to reduce its dependence on foreign aid. The focus is appropriately on widening the tax base – not higher taxes, but all paying a fair share.
The government has already made significant progress in the areas of revenue administration.
The push to increase the number of registered VAT payers through the introduction of electronic billing machines, and the switch in the collection of local taxes and fees from the local governments to the revenue authority, should be useful in bringing more businesses under the tax system.
The introduction of tax regimes for agriculture and mining, and improvements in property taxation, should also help achieve the goal of providing budgetary resources for key expenditures, particularly those aimed at scaling up social spending and infrastructure in a context where donor resources are likely to be limited.
Lately, Rwanda has taken to raising money through bonds, do you think this is viable?
Rwanda’s successful Euro-bond issuance in 2013 demonstrated that market financing can play a complementary role in financing investment plans. Several other African countries have followed suit over the past year.
The key is to ensure that Rwanda’s debt remains sustainable. I welcome the government’s commitment to fully explore concessional financing options and private sector participation before considering the use of non-concessional resources.
At the same time, the government’s decision to begin issuing domestic currency bonds in 2014 was an important step in the process of developing and deepening local capital markets.
www.newtimes.co.rw/section/article/2015-01-26/185319/
Creating jobs remains a high priority for this country, but as you know the private sector is also still young. What should Rwanda do to address these two issues?
On private sector development, Rwanda’s potential depends critically on full implementation of ongoing reforms to attract foreign investment and boost exports. These include reducing the cost of doing business; improving infrastructure; supporting skills development; and tapping into regional markets.
The increased provision of lower-cost electricity and improved transportation should help facilitate diversification and business development.
On creating jobs, the government has identified three key priorities: skills development, the fostering of entrepreneurship for small- and medium-sized enterprises, and supporting household enterprises. We at the Fund share this emphasis on building the capacity of Africa’s greatest resource–its people. Increased investment in infrastructure can help put people to work.
The IMF’s latest Regional Economic Outlook for Sub-Saharan Africa projects regional GDP growth to pick up from about 5 per cent in 2013/14 to 5.75 per cent in 2015. That isn’t a big leap, is it? Can you elaborate on this?
Sub-Saharan Africa has made impressive progress over the past two decades, with growth averaging around 5 per cent. We expect that to continue in 2015, despite the impact of lower oil prices on some of Africa’s major oil exporting economies.
So there has been real progress, as growth has allowed for reducing poverty and improving living conditions.
For example, the number of people living on less than $1.25 a day in Africa has fallen significantly since 1990. But extreme poverty remains unacceptably high and not all countries are making progress. Some countries are still facing internal conflict and/or fragility.
Looking ahead, there are a number of longer-term demographic, technological and environmental challenges that need to be addressed in order to realise the ‘big leap’ that you refer to.
For instance, how can we tap into the productive capacity of Africa’s youth? How can Africa take advantage of technological innovation?
And how can we address the implications of climate change? Three broad policy priorities are crucial: building infrastructure, building institutions, and building people. Africa must also strengthen its institutional and governance frameworks to better manage its vast resources.
But the focus must be on people—with programmes aimed at boosting health and education and other essential social services. In fact, Rwanda is one of the countries that are effectively implementing policies in many of these areas.
The Ebola outbreak in West Africa has dealt a major blow to several African economies in the region. Can the effects of this blow spread to other parts of the continent?
The Ebola outbreak is a severe human, social and economic crisis that requires a resolute response. And the focus must be on isolating the virus, not the countries.
Strong efforts are underway in Guinea, Liberia and Sierra Leone, but it is unlikely to be brought under control before the second half of 2015.
The economic outlook for these countries has already worsened since September, when the IMF disbursed $130 million to the (three) countries to boost their response to the outbreak.
If the outbreak remains limited to the three countries, the economic outlook for the rest of sub-Saharan Africa remains favourable. Some neighbouring countries like The Gambia have seen an impact on tourism.
We are working with the governments of the three affected countries to provide additional interest-free financing of about $160 million, and expect our Board to make a decision in the next few days.
Following the endorsement by the G-20 leaders in Australia, we are also looking at further options to provide additional support to the Ebola-hit countries, including through the provision of donor-supported debt relief.
International oil prices have been tumbling, is this good for Rwanda and the other members of the EAC?
Indeed, oil prices have fallen recently, affecting both oil producers and consumers. Overall, we see the price decline as positive for the global economy. As an oil importer, Rwanda and indeed the East Africa region should benefit given that lower prices will most likely have a positive impact on growth whilst also easing inflation.
Countries can make use of this window of opportunity to reduce universal energy subsidies and use the savings toward more targeted transfers that benefit the poor.
Recently, the East African Community, a regional bloc to which Rwanda subscribes, reached a landmark Economic Partnership agreement (Epa) with Europe. Do you think that these countries need such agreements?
The EPA is designed to enhance commercial and economic relations, supporting a new trading dynamic in the region and deepening cooperation in trade and investment. It can serve as an important instrument of development in many respects.
It can promote sustained growth, increase the productive capacity of EAC economies, foster diversification and competitiveness, and, of course, boost trade, investment and employment. Rwanda is a key member of the EAC that has worked hard to create a conducive and transparent business environment. So it should benefit from this agreement.
**************************
About Lagarde
Christine Lagarde assumed the mantle of the International Monetary Fund in July 2011. A Frenchwoman, she was previously French finance minister from June 2007, and had also served for two years as France’s minister for foreign trade.
Lagarde also has had an extensive and noteworthy career as an anti-trust and labour lawyer, serving as a partner with the international law firm of Baker & McKenzie, where the partnership elected her as chairman in October 1999.
The IMF is an organisation of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Photos : Jack Yakubu (Jack Nkinzingabo)
World Bank President Jim Yong Kim visits Rwanda's KLab and meets with young ICT entrepreneurs and innovators. Photo: Sarah Farhat / World Bank
Photo ID: 16-20170321-Rwanda-Farhat-0104
A beneficiary of Rwanda's Vision 2020 Umurenge Program (VUP), 72-year-old Susanne Nyiramahungura told the World Bank delegation that the VUP gave her a second chance at life. Born with disability, Susanne said by God’s grace and the VUP she managed to make savings and transform her life. Photo: Sarah Farhat / World Bank
Photo ID: 35-20170321-Rwanda-Farhat-0403
Rwanda's President, Paul Kagame, welcomed Arsenal defender David Luiz to Rwanda. David was accompanied by his fiancé Ms Bruna Da Conceicao Loureiro and mother Regina Celia Moreira Marinho. They were also joined by the CEO of the Rwanda Development Board, Clare Akamanzi.
Rwanda's Minister of Environment, Vincent Biruta, visited a number of Rwanda Green Fund investments to assess their progress. He visited the Karongi District Integrated Green Village Project, the Congo Nile Ridge Foothills Integrated Environment Project in Muhanga District and the Rehabilitation of biodiversity and ecosystems in Nyabarongo Watershed investment in Ngororero District.
Visit www.fonerwa.org to learn more.
The Managing Director of the International Monetary Fund, Christine Lagarde, will today begin her three day visit to Rwanda, her first since she came to the helm of the institution in 2011. In an e-mail correspondence with The New Times’ Kenneth Agutamba, Lagarde sheds light on her institution’s current relationship with Rwanda and commends the country’s transformative and inclusive policies that have seen a significant decline in poverty levels.
You come here 20 years after the 1994 Genocide against the Tutsi. In your view, what has been the trigger for Rwanda’s rapid economic renaissance?
My main message to Rwanda is that “Good policies pay off.” Let me set this in a broader context by saying that I am very happy to have the opportunity to visit Rwanda at such a pivotal moment in its history. The horrific events that occurred 20 years ago tore the social and economic fabric of the country, and it is uplifting to see the progress in rebuilding, in peace efforts, and in improving the welfare of all Rwandans.
This truly is an example in terms of social and economic transformation. It proves that effective policies and inclusive growth can be transformational.
The economic performance has been remarkable, with strong annual growth for the past 15 years. This has helped Rwanda make progress towards achieving the Millennium Development Goals. The poorest have benefited from a focus on inclusive growth, with the poverty rate falling to 45 per cent of the population in 2011 from 60 per cent in 2000.
Of course, this rate is still high, but it is definite progress and we see the trend continuing. So, while there has not been a magic bullet or a single trigger, a holistic approach, that also included a focus on the agricultural sector, employment, and gender equality, has been instrumental in sharing the fruits of high growth more widely.
What is the status of IMF relations in Rwanda at present?
We have a very close economic policy dialogue and the IMF is currently supporting the government with a Policy Support Instrument (PSI) – designed for low-income countries that have graduated from financial support but still seek to maintain a close policy dialogue.
The PSI signals the strength of a country’s policies to donors, multilateral development banks, and markets. We also provide technical assistance as part of the Fund’s efforts to increase local capacity and know-how. We have an office in Kigali, where a resident representative, currently Mitra Farahbaksh, ensures our presence in the field.
Rwanda’s PSI, which is in its second year, supports Rwanda’s own policy priorities for strong and inclusive growth, with an emphasis on domestic resource mobilization, private sector development, export diversification, regional integration, and financial sector development.
We recently reviewed this programme and welcomed the country’s continued strong performance. We also agreed with the government that more work needs to be done to further reduce Rwanda’s reliance on aid and increase its resilience to external shocks.
What is your economic outlook for the country between now and 2020?
Our outlook for Rwanda is positive. The economy is recovering from a weak performance in agriculture and delays in related project implementation in recent years. Growth rebounded last year and inflation remains well contained. We expect GDP growth rates to rise gradually towards 7-7.5 per cent in the medium term, while inflation remains within the medium-term target of 5 per cent.
I am particularly impressed with the government’s continued commitment to poverty reduction.
As part of my stay here, I will be visiting the Agaseke Handicraft Cooperative and the ICT hub (knowledge Lab) in Kigali to see firsthand how the government has managed to improve the welfare of vulnerable and disadvantaged groups such as women and youth.
As your readers are aware, the Economic Development and Poverty Reduction Strategy for 2013–18 focuses on economic transformation, rural development, and youth employment. The strategy is rightly aimed at further reducing poverty.
I think that the continued rollout of planned measures and the successful inclusion of the private sector in leading economic development will help make sizeable inroads in making growth even more inclusive and in reducing inequality.
In a recent advisory by the IMF Board, they encouraged Rwanda to widen its tax base and put emphasis on domestic revenue sourcing. What is your advice on this?
We are devoting a significant portion of our technical assistance to support Rwanda’s efforts to reduce its dependence on foreign aid. The focus is appropriately on widening the tax base – not higher taxes, but all paying a fair share.
The government has already made significant progress in the areas of revenue administration.
The push to increase the number of registered VAT payers through the introduction of electronic billing machines, and the switch in the collection of local taxes and fees from the local governments to the revenue authority, should be useful in bringing more businesses under the tax system.
The introduction of tax regimes for agriculture and mining, and improvements in property taxation, should also help achieve the goal of providing budgetary resources for key expenditures, particularly those aimed at scaling up social spending and infrastructure in a context where donor resources are likely to be limited.
Lately, Rwanda has taken to raising money through bonds, do you think this is viable?
Rwanda’s successful Euro-bond issuance in 2013 demonstrated that market financing can play a complementary role in financing investment plans. Several other African countries have followed suit over the past year.
The key is to ensure that Rwanda’s debt remains sustainable. I welcome the government’s commitment to fully explore concessional financing options and private sector participation before considering the use of non-concessional resources.
At the same time, the government’s decision to begin issuing domestic currency bonds in 2014 was an important step in the process of developing and deepening local capital markets.
www.newtimes.co.rw/section/article/2015-01-26/185319/
Creating jobs remains a high priority for this country, but as you know the private sector is also still young. What should Rwanda do to address these two issues?
On private sector development, Rwanda’s potential depends critically on full implementation of ongoing reforms to attract foreign investment and boost exports. These include reducing the cost of doing business; improving infrastructure; supporting skills development; and tapping into regional markets.
The increased provision of lower-cost electricity and improved transportation should help facilitate diversification and business development.
On creating jobs, the government has identified three key priorities: skills development, the fostering of entrepreneurship for small- and medium-sized enterprises, and supporting household enterprises. We at the Fund share this emphasis on building the capacity of Africa’s greatest resource–its people. Increased investment in infrastructure can help put people to work.
The IMF’s latest Regional Economic Outlook for Sub-Saharan Africa projects regional GDP growth to pick up from about 5 per cent in 2013/14 to 5.75 per cent in 2015. That isn’t a big leap, is it? Can you elaborate on this?
Sub-Saharan Africa has made impressive progress over the past two decades, with growth averaging around 5 per cent. We expect that to continue in 2015, despite the impact of lower oil prices on some of Africa’s major oil exporting economies.
So there has been real progress, as growth has allowed for reducing poverty and improving living conditions.
For example, the number of people living on less than $1.25 a day in Africa has fallen significantly since 1990. But extreme poverty remains unacceptably high and not all countries are making progress. Some countries are still facing internal conflict and/or fragility.
Looking ahead, there are a number of longer-term demographic, technological and environmental challenges that need to be addressed in order to realise the ‘big leap’ that you refer to.
For instance, how can we tap into the productive capacity of Africa’s youth? How can Africa take advantage of technological innovation?
And how can we address the implications of climate change? Three broad policy priorities are crucial: building infrastructure, building institutions, and building people. Africa must also strengthen its institutional and governance frameworks to better manage its vast resources.
But the focus must be on people—with programmes aimed at boosting health and education and other essential social services. In fact, Rwanda is one of the countries that are effectively implementing policies in many of these areas.
The Ebola outbreak in West Africa has dealt a major blow to several African economies in the region. Can the effects of this blow spread to other parts of the continent?
The Ebola outbreak is a severe human, social and economic crisis that requires a resolute response. And the focus must be on isolating the virus, not the countries.
Strong efforts are underway in Guinea, Liberia and Sierra Leone, but it is unlikely to be brought under control before the second half of 2015.
The economic outlook for these countries has already worsened since September, when the IMF disbursed $130 million to the (three) countries to boost their response to the outbreak.
If the outbreak remains limited to the three countries, the economic outlook for the rest of sub-Saharan Africa remains favourable. Some neighbouring countries like The Gambia have seen an impact on tourism.
We are working with the governments of the three affected countries to provide additional interest-free financing of about $160 million, and expect our Board to make a decision in the next few days.
Following the endorsement by the G-20 leaders in Australia, we are also looking at further options to provide additional support to the Ebola-hit countries, including through the provision of donor-supported debt relief.
International oil prices have been tumbling, is this good for Rwanda and the other members of the EAC?
Indeed, oil prices have fallen recently, affecting both oil producers and consumers. Overall, we see the price decline as positive for the global economy. As an oil importer, Rwanda and indeed the East Africa region should benefit given that lower prices will most likely have a positive impact on growth whilst also easing inflation.
Countries can make use of this window of opportunity to reduce universal energy subsidies and use the savings toward more targeted transfers that benefit the poor.
Recently, the East African Community, a regional bloc to which Rwanda subscribes, reached a landmark Economic Partnership agreement (Epa) with Europe. Do you think that these countries need such agreements?
The EPA is designed to enhance commercial and economic relations, supporting a new trading dynamic in the region and deepening cooperation in trade and investment. It can serve as an important instrument of development in many respects.
It can promote sustained growth, increase the productive capacity of EAC economies, foster diversification and competitiveness, and, of course, boost trade, investment and employment. Rwanda is a key member of the EAC that has worked hard to create a conducive and transparent business environment. So it should benefit from this agreement.
**************************
About Lagarde
Christine Lagarde assumed the mantle of the International Monetary Fund in July 2011. A Frenchwoman, she was previously French finance minister from June 2007, and had also served for two years as France’s minister for foreign trade.
Lagarde also has had an extensive and noteworthy career as an anti-trust and labour lawyer, serving as a partner with the international law firm of Baker & McKenzie, where the partnership elected her as chairman in October 1999.
The IMF is an organisation of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Photos : Jack Yakubu (Jack Nkinzingabo)
The Managing Director of the International Monetary Fund, Christine Lagarde, will today begin her three day visit to Rwanda, her first since she came to the helm of the institution in 2011. In an e-mail correspondence with The New Times’ Kenneth Agutamba, Lagarde sheds light on her institution’s current relationship with Rwanda and commends the country’s transformative and inclusive policies that have seen a significant decline in poverty levels.
You come here 20 years after the 1994 Genocide against the Tutsi. In your view, what has been the trigger for Rwanda’s rapid economic renaissance?
My main message to Rwanda is that “Good policies pay off.” Let me set this in a broader context by saying that I am very happy to have the opportunity to visit Rwanda at such a pivotal moment in its history. The horrific events that occurred 20 years ago tore the social and economic fabric of the country, and it is uplifting to see the progress in rebuilding, in peace efforts, and in improving the welfare of all Rwandans.
This truly is an example in terms of social and economic transformation. It proves that effective policies and inclusive growth can be transformational.
The economic performance has been remarkable, with strong annual growth for the past 15 years. This has helped Rwanda make progress towards achieving the Millennium Development Goals. The poorest have benefited from a focus on inclusive growth, with the poverty rate falling to 45 per cent of the population in 2011 from 60 per cent in 2000.
Of course, this rate is still high, but it is definite progress and we see the trend continuing. So, while there has not been a magic bullet or a single trigger, a holistic approach, that also included a focus on the agricultural sector, employment, and gender equality, has been instrumental in sharing the fruits of high growth more widely.
What is the status of IMF relations in Rwanda at present?
We have a very close economic policy dialogue and the IMF is currently supporting the government with a Policy Support Instrument (PSI) – designed for low-income countries that have graduated from financial support but still seek to maintain a close policy dialogue.
The PSI signals the strength of a country’s policies to donors, multilateral development banks, and markets. We also provide technical assistance as part of the Fund’s efforts to increase local capacity and know-how. We have an office in Kigali, where a resident representative, currently Mitra Farahbaksh, ensures our presence in the field.
Rwanda’s PSI, which is in its second year, supports Rwanda’s own policy priorities for strong and inclusive growth, with an emphasis on domestic resource mobilization, private sector development, export diversification, regional integration, and financial sector development.
We recently reviewed this programme and welcomed the country’s continued strong performance. We also agreed with the government that more work needs to be done to further reduce Rwanda’s reliance on aid and increase its resilience to external shocks.
What is your economic outlook for the country between now and 2020?
Our outlook for Rwanda is positive. The economy is recovering from a weak performance in agriculture and delays in related project implementation in recent years. Growth rebounded last year and inflation remains well contained. We expect GDP growth rates to rise gradually towards 7-7.5 per cent in the medium term, while inflation remains within the medium-term target of 5 per cent.
I am particularly impressed with the government’s continued commitment to poverty reduction.
As part of my stay here, I will be visiting the Agaseke Handicraft Cooperative and the ICT hub (knowledge Lab) in Kigali to see firsthand how the government has managed to improve the welfare of vulnerable and disadvantaged groups such as women and youth.
As your readers are aware, the Economic Development and Poverty Reduction Strategy for 2013–18 focuses on economic transformation, rural development, and youth employment. The strategy is rightly aimed at further reducing poverty.
I think that the continued rollout of planned measures and the successful inclusion of the private sector in leading economic development will help make sizeable inroads in making growth even more inclusive and in reducing inequality.
In a recent advisory by the IMF Board, they encouraged Rwanda to widen its tax base and put emphasis on domestic revenue sourcing. What is your advice on this?
We are devoting a significant portion of our technical assistance to support Rwanda’s efforts to reduce its dependence on foreign aid. The focus is appropriately on widening the tax base – not higher taxes, but all paying a fair share.
The government has already made significant progress in the areas of revenue administration.
The push to increase the number of registered VAT payers through the introduction of electronic billing machines, and the switch in the collection of local taxes and fees from the local governments to the revenue authority, should be useful in bringing more businesses under the tax system.
The introduction of tax regimes for agriculture and mining, and improvements in property taxation, should also help achieve the goal of providing budgetary resources for key expenditures, particularly those aimed at scaling up social spending and infrastructure in a context where donor resources are likely to be limited.
Lately, Rwanda has taken to raising money through bonds, do you think this is viable?
Rwanda’s successful Euro-bond issuance in 2013 demonstrated that market financing can play a complementary role in financing investment plans. Several other African countries have followed suit over the past year.
The key is to ensure that Rwanda’s debt remains sustainable. I welcome the government’s commitment to fully explore concessional financing options and private sector participation before considering the use of non-concessional resources.
At the same time, the government’s decision to begin issuing domestic currency bonds in 2014 was an important step in the process of developing and deepening local capital markets.
www.newtimes.co.rw/section/article/2015-01-26/185319/
Creating jobs remains a high priority for this country, but as you know the private sector is also still young. What should Rwanda do to address these two issues?
On private sector development, Rwanda’s potential depends critically on full implementation of ongoing reforms to attract foreign investment and boost exports. These include reducing the cost of doing business; improving infrastructure; supporting skills development; and tapping into regional markets.
The increased provision of lower-cost electricity and improved transportation should help facilitate diversification and business development.
On creating jobs, the government has identified three key priorities: skills development, the fostering of entrepreneurship for small- and medium-sized enterprises, and supporting household enterprises. We at the Fund share this emphasis on building the capacity of Africa’s greatest resource–its people. Increased investment in infrastructure can help put people to work.
The IMF’s latest Regional Economic Outlook for Sub-Saharan Africa projects regional GDP growth to pick up from about 5 per cent in 2013/14 to 5.75 per cent in 2015. That isn’t a big leap, is it? Can you elaborate on this?
Sub-Saharan Africa has made impressive progress over the past two decades, with growth averaging around 5 per cent. We expect that to continue in 2015, despite the impact of lower oil prices on some of Africa’s major oil exporting economies.
So there has been real progress, as growth has allowed for reducing poverty and improving living conditions.
For example, the number of people living on less than $1.25 a day in Africa has fallen significantly since 1990. But extreme poverty remains unacceptably high and not all countries are making progress. Some countries are still facing internal conflict and/or fragility.
Looking ahead, there are a number of longer-term demographic, technological and environmental challenges that need to be addressed in order to realise the ‘big leap’ that you refer to.
For instance, how can we tap into the productive capacity of Africa’s youth? How can Africa take advantage of technological innovation?
And how can we address the implications of climate change? Three broad policy priorities are crucial: building infrastructure, building institutions, and building people. Africa must also strengthen its institutional and governance frameworks to better manage its vast resources.
But the focus must be on people—with programmes aimed at boosting health and education and other essential social services. In fact, Rwanda is one of the countries that are effectively implementing policies in many of these areas.
The Ebola outbreak in West Africa has dealt a major blow to several African economies in the region. Can the effects of this blow spread to other parts of the continent?
The Ebola outbreak is a severe human, social and economic crisis that requires a resolute response. And the focus must be on isolating the virus, not the countries.
Strong efforts are underway in Guinea, Liberia and Sierra Leone, but it is unlikely to be brought under control before the second half of 2015.
The economic outlook for these countries has already worsened since September, when the IMF disbursed $130 million to the (three) countries to boost their response to the outbreak.
If the outbreak remains limited to the three countries, the economic outlook for the rest of sub-Saharan Africa remains favourable. Some neighbouring countries like The Gambia have seen an impact on tourism.
We are working with the governments of the three affected countries to provide additional interest-free financing of about $160 million, and expect our Board to make a decision in the next few days.
Following the endorsement by the G-20 leaders in Australia, we are also looking at further options to provide additional support to the Ebola-hit countries, including through the provision of donor-supported debt relief.
International oil prices have been tumbling, is this good for Rwanda and the other members of the EAC?
Indeed, oil prices have fallen recently, affecting both oil producers and consumers. Overall, we see the price decline as positive for the global economy. As an oil importer, Rwanda and indeed the East Africa region should benefit given that lower prices will most likely have a positive impact on growth whilst also easing inflation.
Countries can make use of this window of opportunity to reduce universal energy subsidies and use the savings toward more targeted transfers that benefit the poor.
Recently, the East African Community, a regional bloc to which Rwanda subscribes, reached a landmark Economic Partnership agreement (Epa) with Europe. Do you think that these countries need such agreements?
The EPA is designed to enhance commercial and economic relations, supporting a new trading dynamic in the region and deepening cooperation in trade and investment. It can serve as an important instrument of development in many respects.
It can promote sustained growth, increase the productive capacity of EAC economies, foster diversification and competitiveness, and, of course, boost trade, investment and employment. Rwanda is a key member of the EAC that has worked hard to create a conducive and transparent business environment. So it should benefit from this agreement.
**************************
About Lagarde
Christine Lagarde assumed the mantle of the International Monetary Fund in July 2011. A Frenchwoman, she was previously French finance minister from June 2007, and had also served for two years as France’s minister for foreign trade.
Lagarde also has had an extensive and noteworthy career as an anti-trust and labour lawyer, serving as a partner with the international law firm of Baker & McKenzie, where the partnership elected her as chairman in October 1999.
The IMF is an organisation of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Photos : Jack Yakubu (Jack Nkinzingabo)
The Managing Director of the International Monetary Fund, Christine Lagarde, will today begin her three day visit to Rwanda, her first since she came to the helm of the institution in 2011. In an e-mail correspondence with The New Times’ Kenneth Agutamba, Lagarde sheds light on her institution’s current relationship with Rwanda and commends the country’s transformative and inclusive policies that have seen a significant decline in poverty levels.
You come here 20 years after the 1994 Genocide against the Tutsi. In your view, what has been the trigger for Rwanda’s rapid economic renaissance?
My main message to Rwanda is that “Good policies pay off.” Let me set this in a broader context by saying that I am very happy to have the opportunity to visit Rwanda at such a pivotal moment in its history. The horrific events that occurred 20 years ago tore the social and economic fabric of the country, and it is uplifting to see the progress in rebuilding, in peace efforts, and in improving the welfare of all Rwandans.
This truly is an example in terms of social and economic transformation. It proves that effective policies and inclusive growth can be transformational.
The economic performance has been remarkable, with strong annual growth for the past 15 years. This has helped Rwanda make progress towards achieving the Millennium Development Goals. The poorest have benefited from a focus on inclusive growth, with the poverty rate falling to 45 per cent of the population in 2011 from 60 per cent in 2000.
Of course, this rate is still high, but it is definite progress and we see the trend continuing. So, while there has not been a magic bullet or a single trigger, a holistic approach, that also included a focus on the agricultural sector, employment, and gender equality, has been instrumental in sharing the fruits of high growth more widely.
What is the status of IMF relations in Rwanda at present?
We have a very close economic policy dialogue and the IMF is currently supporting the government with a Policy Support Instrument (PSI) – designed for low-income countries that have graduated from financial support but still seek to maintain a close policy dialogue.
The PSI signals the strength of a country’s policies to donors, multilateral development banks, and markets. We also provide technical assistance as part of the Fund’s efforts to increase local capacity and know-how. We have an office in Kigali, where a resident representative, currently Mitra Farahbaksh, ensures our presence in the field.
Rwanda’s PSI, which is in its second year, supports Rwanda’s own policy priorities for strong and inclusive growth, with an emphasis on domestic resource mobilization, private sector development, export diversification, regional integration, and financial sector development.
We recently reviewed this programme and welcomed the country’s continued strong performance. We also agreed with the government that more work needs to be done to further reduce Rwanda’s reliance on aid and increase its resilience to external shocks.
What is your economic outlook for the country between now and 2020?
Our outlook for Rwanda is positive. The economy is recovering from a weak performance in agriculture and delays in related project implementation in recent years. Growth rebounded last year and inflation remains well contained. We expect GDP growth rates to rise gradually towards 7-7.5 per cent in the medium term, while inflation remains within the medium-term target of 5 per cent.
I am particularly impressed with the government’s continued commitment to poverty reduction.
As part of my stay here, I will be visiting the Agaseke Handicraft Cooperative and the ICT hub (knowledge Lab) in Kigali to see firsthand how the government has managed to improve the welfare of vulnerable and disadvantaged groups such as women and youth.
As your readers are aware, the Economic Development and Poverty Reduction Strategy for 2013–18 focuses on economic transformation, rural development, and youth employment. The strategy is rightly aimed at further reducing poverty.
I think that the continued rollout of planned measures and the successful inclusion of the private sector in leading economic development will help make sizeable inroads in making growth even more inclusive and in reducing inequality.
In a recent advisory by the IMF Board, they encouraged Rwanda to widen its tax base and put emphasis on domestic revenue sourcing. What is your advice on this?
We are devoting a significant portion of our technical assistance to support Rwanda’s efforts to reduce its dependence on foreign aid. The focus is appropriately on widening the tax base – not higher taxes, but all paying a fair share.
The government has already made significant progress in the areas of revenue administration.
The push to increase the number of registered VAT payers through the introduction of electronic billing machines, and the switch in the collection of local taxes and fees from the local governments to the revenue authority, should be useful in bringing more businesses under the tax system.
The introduction of tax regimes for agriculture and mining, and improvements in property taxation, should also help achieve the goal of providing budgetary resources for key expenditures, particularly those aimed at scaling up social spending and infrastructure in a context where donor resources are likely to be limited.
Lately, Rwanda has taken to raising money through bonds, do you think this is viable?
Rwanda’s successful Euro-bond issuance in 2013 demonstrated that market financing can play a complementary role in financing investment plans. Several other African countries have followed suit over the past year.
The key is to ensure that Rwanda’s debt remains sustainable. I welcome the government’s commitment to fully explore concessional financing options and private sector participation before considering the use of non-concessional resources.
At the same time, the government’s decision to begin issuing domestic currency bonds in 2014 was an important step in the process of developing and deepening local capital markets.
www.newtimes.co.rw/section/article/2015-01-26/185319/
Creating jobs remains a high priority for this country, but as you know the private sector is also still young. What should Rwanda do to address these two issues?
On private sector development, Rwanda’s potential depends critically on full implementation of ongoing reforms to attract foreign investment and boost exports. These include reducing the cost of doing business; improving infrastructure; supporting skills development; and tapping into regional markets.
The increased provision of lower-cost electricity and improved transportation should help facilitate diversification and business development.
On creating jobs, the government has identified three key priorities: skills development, the fostering of entrepreneurship for small- and medium-sized enterprises, and supporting household enterprises. We at the Fund share this emphasis on building the capacity of Africa’s greatest resource–its people. Increased investment in infrastructure can help put people to work.
The IMF’s latest Regional Economic Outlook for Sub-Saharan Africa projects regional GDP growth to pick up from about 5 per cent in 2013/14 to 5.75 per cent in 2015. That isn’t a big leap, is it? Can you elaborate on this?
Sub-Saharan Africa has made impressive progress over the past two decades, with growth averaging around 5 per cent. We expect that to continue in 2015, despite the impact of lower oil prices on some of Africa’s major oil exporting economies.
So there has been real progress, as growth has allowed for reducing poverty and improving living conditions.
For example, the number of people living on less than $1.25 a day in Africa has fallen significantly since 1990. But extreme poverty remains unacceptably high and not all countries are making progress. Some countries are still facing internal conflict and/or fragility.
Looking ahead, there are a number of longer-term demographic, technological and environmental challenges that need to be addressed in order to realise the ‘big leap’ that you refer to.
For instance, how can we tap into the productive capacity of Africa’s youth? How can Africa take advantage of technological innovation?
And how can we address the implications of climate change? Three broad policy priorities are crucial: building infrastructure, building institutions, and building people. Africa must also strengthen its institutional and governance frameworks to better manage its vast resources.
But the focus must be on people—with programmes aimed at boosting health and education and other essential social services. In fact, Rwanda is one of the countries that are effectively implementing policies in many of these areas.
The Ebola outbreak in West Africa has dealt a major blow to several African economies in the region. Can the effects of this blow spread to other parts of the continent?
The Ebola outbreak is a severe human, social and economic crisis that requires a resolute response. And the focus must be on isolating the virus, not the countries.
Strong efforts are underway in Guinea, Liberia and Sierra Leone, but it is unlikely to be brought under control before the second half of 2015.
The economic outlook for these countries has already worsened since September, when the IMF disbursed $130 million to the (three) countries to boost their response to the outbreak.
If the outbreak remains limited to the three countries, the economic outlook for the rest of sub-Saharan Africa remains favourable. Some neighbouring countries like The Gambia have seen an impact on tourism.
We are working with the governments of the three affected countries to provide additional interest-free financing of about $160 million, and expect our Board to make a decision in the next few days.
Following the endorsement by the G-20 leaders in Australia, we are also looking at further options to provide additional support to the Ebola-hit countries, including through the provision of donor-supported debt relief.
International oil prices have been tumbling, is this good for Rwanda and the other members of the EAC?
Indeed, oil prices have fallen recently, affecting both oil producers and consumers. Overall, we see the price decline as positive for the global economy. As an oil importer, Rwanda and indeed the East Africa region should benefit given that lower prices will most likely have a positive impact on growth whilst also easing inflation.
Countries can make use of this window of opportunity to reduce universal energy subsidies and use the savings toward more targeted transfers that benefit the poor.
Recently, the East African Community, a regional bloc to which Rwanda subscribes, reached a landmark Economic Partnership agreement (Epa) with Europe. Do you think that these countries need such agreements?
The EPA is designed to enhance commercial and economic relations, supporting a new trading dynamic in the region and deepening cooperation in trade and investment. It can serve as an important instrument of development in many respects.
It can promote sustained growth, increase the productive capacity of EAC economies, foster diversification and competitiveness, and, of course, boost trade, investment and employment. Rwanda is a key member of the EAC that has worked hard to create a conducive and transparent business environment. So it should benefit from this agreement.
**************************
About Lagarde
Christine Lagarde assumed the mantle of the International Monetary Fund in July 2011. A Frenchwoman, she was previously French finance minister from June 2007, and had also served for two years as France’s minister for foreign trade.
Lagarde also has had an extensive and noteworthy career as an anti-trust and labour lawyer, serving as a partner with the international law firm of Baker & McKenzie, where the partnership elected her as chairman in October 1999.
The IMF is an organisation of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Photos : Jack Yakubu (Jack Nkinzingabo)
The Managing Director of the International Monetary Fund, Christine Lagarde, will today begin her three day visit to Rwanda, her first since she came to the helm of the institution in 2011. In an e-mail correspondence with The New Times’ Kenneth Agutamba, Lagarde sheds light on her institution’s current relationship with Rwanda and commends the country’s transformative and inclusive policies that have seen a significant decline in poverty levels.
You come here 20 years after the 1994 Genocide against the Tutsi. In your view, what has been the trigger for Rwanda’s rapid economic renaissance?
My main message to Rwanda is that “Good policies pay off.” Let me set this in a broader context by saying that I am very happy to have the opportunity to visit Rwanda at such a pivotal moment in its history. The horrific events that occurred 20 years ago tore the social and economic fabric of the country, and it is uplifting to see the progress in rebuilding, in peace efforts, and in improving the welfare of all Rwandans.
This truly is an example in terms of social and economic transformation. It proves that effective policies and inclusive growth can be transformational.
The economic performance has been remarkable, with strong annual growth for the past 15 years. This has helped Rwanda make progress towards achieving the Millennium Development Goals. The poorest have benefited from a focus on inclusive growth, with the poverty rate falling to 45 per cent of the population in 2011 from 60 per cent in 2000.
Of course, this rate is still high, but it is definite progress and we see the trend continuing. So, while there has not been a magic bullet or a single trigger, a holistic approach, that also included a focus on the agricultural sector, employment, and gender equality, has been instrumental in sharing the fruits of high growth more widely.
What is the status of IMF relations in Rwanda at present?
We have a very close economic policy dialogue and the IMF is currently supporting the government with a Policy Support Instrument (PSI) – designed for low-income countries that have graduated from financial support but still seek to maintain a close policy dialogue.
The PSI signals the strength of a country’s policies to donors, multilateral development banks, and markets. We also provide technical assistance as part of the Fund’s efforts to increase local capacity and know-how. We have an office in Kigali, where a resident representative, currently Mitra Farahbaksh, ensures our presence in the field.
Rwanda’s PSI, which is in its second year, supports Rwanda’s own policy priorities for strong and inclusive growth, with an emphasis on domestic resource mobilization, private sector development, export diversification, regional integration, and financial sector development.
We recently reviewed this programme and welcomed the country’s continued strong performance. We also agreed with the government that more work needs to be done to further reduce Rwanda’s reliance on aid and increase its resilience to external shocks.
What is your economic outlook for the country between now and 2020?
Our outlook for Rwanda is positive. The economy is recovering from a weak performance in agriculture and delays in related project implementation in recent years. Growth rebounded last year and inflation remains well contained. We expect GDP growth rates to rise gradually towards 7-7.5 per cent in the medium term, while inflation remains within the medium-term target of 5 per cent.
I am particularly impressed with the government’s continued commitment to poverty reduction.
As part of my stay here, I will be visiting the Agaseke Handicraft Cooperative and the ICT hub (knowledge Lab) in Kigali to see firsthand how the government has managed to improve the welfare of vulnerable and disadvantaged groups such as women and youth.
As your readers are aware, the Economic Development and Poverty Reduction Strategy for 2013–18 focuses on economic transformation, rural development, and youth employment. The strategy is rightly aimed at further reducing poverty.
I think that the continued rollout of planned measures and the successful inclusion of the private sector in leading economic development will help make sizeable inroads in making growth even more inclusive and in reducing inequality.
In a recent advisory by the IMF Board, they encouraged Rwanda to widen its tax base and put emphasis on domestic revenue sourcing. What is your advice on this?
We are devoting a significant portion of our technical assistance to support Rwanda’s efforts to reduce its dependence on foreign aid. The focus is appropriately on widening the tax base – not higher taxes, but all paying a fair share.
The government has already made significant progress in the areas of revenue administration.
The push to increase the number of registered VAT payers through the introduction of electronic billing machines, and the switch in the collection of local taxes and fees from the local governments to the revenue authority, should be useful in bringing more businesses under the tax system.
The introduction of tax regimes for agriculture and mining, and improvements in property taxation, should also help achieve the goal of providing budgetary resources for key expenditures, particularly those aimed at scaling up social spending and infrastructure in a context where donor resources are likely to be limited.
Lately, Rwanda has taken to raising money through bonds, do you think this is viable?
Rwanda’s successful Euro-bond issuance in 2013 demonstrated that market financing can play a complementary role in financing investment plans. Several other African countries have followed suit over the past year.
The key is to ensure that Rwanda’s debt remains sustainable. I welcome the government’s commitment to fully explore concessional financing options and private sector participation before considering the use of non-concessional resources.
At the same time, the government’s decision to begin issuing domestic currency bonds in 2014 was an important step in the process of developing and deepening local capital markets.
www.newtimes.co.rw/section/article/2015-01-26/185319/
Creating jobs remains a high priority for this country, but as you know the private sector is also still young. What should Rwanda do to address these two issues?
On private sector development, Rwanda’s potential depends critically on full implementation of ongoing reforms to attract foreign investment and boost exports. These include reducing the cost of doing business; improving infrastructure; supporting skills development; and tapping into regional markets.
The increased provision of lower-cost electricity and improved transportation should help facilitate diversification and business development.
On creating jobs, the government has identified three key priorities: skills development, the fostering of entrepreneurship for small- and medium-sized enterprises, and supporting household enterprises. We at the Fund share this emphasis on building the capacity of Africa’s greatest resource–its people. Increased investment in infrastructure can help put people to work.
The IMF’s latest Regional Economic Outlook for Sub-Saharan Africa projects regional GDP growth to pick up from about 5 per cent in 2013/14 to 5.75 per cent in 2015. That isn’t a big leap, is it? Can you elaborate on this?
Sub-Saharan Africa has made impressive progress over the past two decades, with growth averaging around 5 per cent. We expect that to continue in 2015, despite the impact of lower oil prices on some of Africa’s major oil exporting economies.
So there has been real progress, as growth has allowed for reducing poverty and improving living conditions.
For example, the number of people living on less than $1.25 a day in Africa has fallen significantly since 1990. But extreme poverty remains unacceptably high and not all countries are making progress. Some countries are still facing internal conflict and/or fragility.
Looking ahead, there are a number of longer-term demographic, technological and environmental challenges that need to be addressed in order to realise the ‘big leap’ that you refer to.
For instance, how can we tap into the productive capacity of Africa’s youth? How can Africa take advantage of technological innovation?
And how can we address the implications of climate change? Three broad policy priorities are crucial: building infrastructure, building institutions, and building people. Africa must also strengthen its institutional and governance frameworks to better manage its vast resources.
But the focus must be on people—with programmes aimed at boosting health and education and other essential social services. In fact, Rwanda is one of the countries that are effectively implementing policies in many of these areas.
The Ebola outbreak in West Africa has dealt a major blow to several African economies in the region. Can the effects of this blow spread to other parts of the continent?
The Ebola outbreak is a severe human, social and economic crisis that requires a resolute response. And the focus must be on isolating the virus, not the countries.
Strong efforts are underway in Guinea, Liberia and Sierra Leone, but it is unlikely to be brought under control before the second half of 2015.
The economic outlook for these countries has already worsened since September, when the IMF disbursed $130 million to the (three) countries to boost their response to the outbreak.
If the outbreak remains limited to the three countries, the economic outlook for the rest of sub-Saharan Africa remains favourable. Some neighbouring countries like The Gambia have seen an impact on tourism.
We are working with the governments of the three affected countries to provide additional interest-free financing of about $160 million, and expect our Board to make a decision in the next few days.
Following the endorsement by the G-20 leaders in Australia, we are also looking at further options to provide additional support to the Ebola-hit countries, including through the provision of donor-supported debt relief.
International oil prices have been tumbling, is this good for Rwanda and the other members of the EAC?
Indeed, oil prices have fallen recently, affecting both oil producers and consumers. Overall, we see the price decline as positive for the global economy. As an oil importer, Rwanda and indeed the East Africa region should benefit given that lower prices will most likely have a positive impact on growth whilst also easing inflation.
Countries can make use of this window of opportunity to reduce universal energy subsidies and use the savings toward more targeted transfers that benefit the poor.
Recently, the East African Community, a regional bloc to which Rwanda subscribes, reached a landmark Economic Partnership agreement (Epa) with Europe. Do you think that these countries need such agreements?
The EPA is designed to enhance commercial and economic relations, supporting a new trading dynamic in the region and deepening cooperation in trade and investment. It can serve as an important instrument of development in many respects.
It can promote sustained growth, increase the productive capacity of EAC economies, foster diversification and competitiveness, and, of course, boost trade, investment and employment. Rwanda is a key member of the EAC that has worked hard to create a conducive and transparent business environment. So it should benefit from this agreement.
**************************
About Lagarde
Christine Lagarde assumed the mantle of the International Monetary Fund in July 2011. A Frenchwoman, she was previously French finance minister from June 2007, and had also served for two years as France’s minister for foreign trade.
Lagarde also has had an extensive and noteworthy career as an anti-trust and labour lawyer, serving as a partner with the international law firm of Baker & McKenzie, where the partnership elected her as chairman in October 1999.
The IMF is an organisation of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Photos : Jack Yakubu (Jack Nkinzingabo)
Tony Giarrusso, a senior research scientist in the Center for Geographic Information Systems in the Georgia Tech School of Architecture, walks with park rangers and a tour group in Rwanda's Volcanoes National Park. Learn more at: www.rh.gatech.edu
(Photos: Tony Giarrusso)
The Managing Director of the International Monetary Fund, Christine Lagarde, will today begin her three day visit to Rwanda, her first since she came to the helm of the institution in 2011. In an e-mail correspondence with The New Times’ Kenneth Agutamba, Lagarde sheds light on her institution’s current relationship with Rwanda and commends the country’s transformative and inclusive policies that have seen a significant decline in poverty levels.
You come here 20 years after the 1994 Genocide against the Tutsi. In your view, what has been the trigger for Rwanda’s rapid economic renaissance?
My main message to Rwanda is that “Good policies pay off.” Let me set this in a broader context by saying that I am very happy to have the opportunity to visit Rwanda at such a pivotal moment in its history. The horrific events that occurred 20 years ago tore the social and economic fabric of the country, and it is uplifting to see the progress in rebuilding, in peace efforts, and in improving the welfare of all Rwandans.
This truly is an example in terms of social and economic transformation. It proves that effective policies and inclusive growth can be transformational.
The economic performance has been remarkable, with strong annual growth for the past 15 years. This has helped Rwanda make progress towards achieving the Millennium Development Goals. The poorest have benefited from a focus on inclusive growth, with the poverty rate falling to 45 per cent of the population in 2011 from 60 per cent in 2000.
Of course, this rate is still high, but it is definite progress and we see the trend continuing. So, while there has not been a magic bullet or a single trigger, a holistic approach, that also included a focus on the agricultural sector, employment, and gender equality, has been instrumental in sharing the fruits of high growth more widely.
What is the status of IMF relations in Rwanda at present?
We have a very close economic policy dialogue and the IMF is currently supporting the government with a Policy Support Instrument (PSI) – designed for low-income countries that have graduated from financial support but still seek to maintain a close policy dialogue.
The PSI signals the strength of a country’s policies to donors, multilateral development banks, and markets. We also provide technical assistance as part of the Fund’s efforts to increase local capacity and know-how. We have an office in Kigali, where a resident representative, currently Mitra Farahbaksh, ensures our presence in the field.
Rwanda’s PSI, which is in its second year, supports Rwanda’s own policy priorities for strong and inclusive growth, with an emphasis on domestic resource mobilization, private sector development, export diversification, regional integration, and financial sector development.
We recently reviewed this programme and welcomed the country’s continued strong performance. We also agreed with the government that more work needs to be done to further reduce Rwanda’s reliance on aid and increase its resilience to external shocks.
What is your economic outlook for the country between now and 2020?
Our outlook for Rwanda is positive. The economy is recovering from a weak performance in agriculture and delays in related project implementation in recent years. Growth rebounded last year and inflation remains well contained. We expect GDP growth rates to rise gradually towards 7-7.5 per cent in the medium term, while inflation remains within the medium-term target of 5 per cent.
I am particularly impressed with the government’s continued commitment to poverty reduction.
As part of my stay here, I will be visiting the Agaseke Handicraft Cooperative and the ICT hub (knowledge Lab) in Kigali to see firsthand how the government has managed to improve the welfare of vulnerable and disadvantaged groups such as women and youth.
As your readers are aware, the Economic Development and Poverty Reduction Strategy for 2013–18 focuses on economic transformation, rural development, and youth employment. The strategy is rightly aimed at further reducing poverty.
I think that the continued rollout of planned measures and the successful inclusion of the private sector in leading economic development will help make sizeable inroads in making growth even more inclusive and in reducing inequality.
In a recent advisory by the IMF Board, they encouraged Rwanda to widen its tax base and put emphasis on domestic revenue sourcing. What is your advice on this?
We are devoting a significant portion of our technical assistance to support Rwanda’s efforts to reduce its dependence on foreign aid. The focus is appropriately on widening the tax base – not higher taxes, but all paying a fair share.
The government has already made significant progress in the areas of revenue administration.
The push to increase the number of registered VAT payers through the introduction of electronic billing machines, and the switch in the collection of local taxes and fees from the local governments to the revenue authority, should be useful in bringing more businesses under the tax system.
The introduction of tax regimes for agriculture and mining, and improvements in property taxation, should also help achieve the goal of providing budgetary resources for key expenditures, particularly those aimed at scaling up social spending and infrastructure in a context where donor resources are likely to be limited.
Lately, Rwanda has taken to raising money through bonds, do you think this is viable?
Rwanda’s successful Euro-bond issuance in 2013 demonstrated that market financing can play a complementary role in financing investment plans. Several other African countries have followed suit over the past year.
The key is to ensure that Rwanda’s debt remains sustainable. I welcome the government’s commitment to fully explore concessional financing options and private sector participation before considering the use of non-concessional resources.
At the same time, the government’s decision to begin issuing domestic currency bonds in 2014 was an important step in the process of developing and deepening local capital markets.
www.newtimes.co.rw/section/article/2015-01-26/185319/
Creating jobs remains a high priority for this country, but as you know the private sector is also still young. What should Rwanda do to address these two issues?
On private sector development, Rwanda’s potential depends critically on full implementation of ongoing reforms to attract foreign investment and boost exports. These include reducing the cost of doing business; improving infrastructure; supporting skills development; and tapping into regional markets.
The increased provision of lower-cost electricity and improved transportation should help facilitate diversification and business development.
On creating jobs, the government has identified three key priorities: skills development, the fostering of entrepreneurship for small- and medium-sized enterprises, and supporting household enterprises. We at the Fund share this emphasis on building the capacity of Africa’s greatest resource–its people. Increased investment in infrastructure can help put people to work.
The IMF’s latest Regional Economic Outlook for Sub-Saharan Africa projects regional GDP growth to pick up from about 5 per cent in 2013/14 to 5.75 per cent in 2015. That isn’t a big leap, is it? Can you elaborate on this?
Sub-Saharan Africa has made impressive progress over the past two decades, with growth averaging around 5 per cent. We expect that to continue in 2015, despite the impact of lower oil prices on some of Africa’s major oil exporting economies.
So there has been real progress, as growth has allowed for reducing poverty and improving living conditions.
For example, the number of people living on less than $1.25 a day in Africa has fallen significantly since 1990. But extreme poverty remains unacceptably high and not all countries are making progress. Some countries are still facing internal conflict and/or fragility.
Looking ahead, there are a number of longer-term demographic, technological and environmental challenges that need to be addressed in order to realise the ‘big leap’ that you refer to.
For instance, how can we tap into the productive capacity of Africa’s youth? How can Africa take advantage of technological innovation?
And how can we address the implications of climate change? Three broad policy priorities are crucial: building infrastructure, building institutions, and building people. Africa must also strengthen its institutional and governance frameworks to better manage its vast resources.
But the focus must be on people—with programmes aimed at boosting health and education and other essential social services. In fact, Rwanda is one of the countries that are effectively implementing policies in many of these areas.
The Ebola outbreak in West Africa has dealt a major blow to several African economies in the region. Can the effects of this blow spread to other parts of the continent?
The Ebola outbreak is a severe human, social and economic crisis that requires a resolute response. And the focus must be on isolating the virus, not the countries.
Strong efforts are underway in Guinea, Liberia and Sierra Leone, but it is unlikely to be brought under control before the second half of 2015.
The economic outlook for these countries has already worsened since September, when the IMF disbursed $130 million to the (three) countries to boost their response to the outbreak.
If the outbreak remains limited to the three countries, the economic outlook for the rest of sub-Saharan Africa remains favourable. Some neighbouring countries like The Gambia have seen an impact on tourism.
We are working with the governments of the three affected countries to provide additional interest-free financing of about $160 million, and expect our Board to make a decision in the next few days.
Following the endorsement by the G-20 leaders in Australia, we are also looking at further options to provide additional support to the Ebola-hit countries, including through the provision of donor-supported debt relief.
International oil prices have been tumbling, is this good for Rwanda and the other members of the EAC?
Indeed, oil prices have fallen recently, affecting both oil producers and consumers. Overall, we see the price decline as positive for the global economy. As an oil importer, Rwanda and indeed the East Africa region should benefit given that lower prices will most likely have a positive impact on growth whilst also easing inflation.
Countries can make use of this window of opportunity to reduce universal energy subsidies and use the savings toward more targeted transfers that benefit the poor.
Recently, the East African Community, a regional bloc to which Rwanda subscribes, reached a landmark Economic Partnership agreement (Epa) with Europe. Do you think that these countries need such agreements?
The EPA is designed to enhance commercial and economic relations, supporting a new trading dynamic in the region and deepening cooperation in trade and investment. It can serve as an important instrument of development in many respects.
It can promote sustained growth, increase the productive capacity of EAC economies, foster diversification and competitiveness, and, of course, boost trade, investment and employment. Rwanda is a key member of the EAC that has worked hard to create a conducive and transparent business environment. So it should benefit from this agreement.
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About Lagarde
Christine Lagarde assumed the mantle of the International Monetary Fund in July 2011. A Frenchwoman, she was previously French finance minister from June 2007, and had also served for two years as France’s minister for foreign trade.
Lagarde also has had an extensive and noteworthy career as an anti-trust and labour lawyer, serving as a partner with the international law firm of Baker & McKenzie, where the partnership elected her as chairman in October 1999.
The IMF is an organisation of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Photos : Jack Yakubu (Jack Nkinzingabo)
The Managing Director of the International Monetary Fund, Christine Lagarde, will today begin her three day visit to Rwanda, her first since she came to the helm of the institution in 2011. In an e-mail correspondence with The New Times’ Kenneth Agutamba, Lagarde sheds light on her institution’s current relationship with Rwanda and commends the country’s transformative and inclusive policies that have seen a significant decline in poverty levels.
You come here 20 years after the 1994 Genocide against the Tutsi. In your view, what has been the trigger for Rwanda’s rapid economic renaissance?
My main message to Rwanda is that “Good policies pay off.” Let me set this in a broader context by saying that I am very happy to have the opportunity to visit Rwanda at such a pivotal moment in its history. The horrific events that occurred 20 years ago tore the social and economic fabric of the country, and it is uplifting to see the progress in rebuilding, in peace efforts, and in improving the welfare of all Rwandans.
This truly is an example in terms of social and economic transformation. It proves that effective policies and inclusive growth can be transformational.
The economic performance has been remarkable, with strong annual growth for the past 15 years. This has helped Rwanda make progress towards achieving the Millennium Development Goals. The poorest have benefited from a focus on inclusive growth, with the poverty rate falling to 45 per cent of the population in 2011 from 60 per cent in 2000.
Of course, this rate is still high, but it is definite progress and we see the trend continuing. So, while there has not been a magic bullet or a single trigger, a holistic approach, that also included a focus on the agricultural sector, employment, and gender equality, has been instrumental in sharing the fruits of high growth more widely.
What is the status of IMF relations in Rwanda at present?
We have a very close economic policy dialogue and the IMF is currently supporting the government with a Policy Support Instrument (PSI) – designed for low-income countries that have graduated from financial support but still seek to maintain a close policy dialogue.
The PSI signals the strength of a country’s policies to donors, multilateral development banks, and markets. We also provide technical assistance as part of the Fund’s efforts to increase local capacity and know-how. We have an office in Kigali, where a resident representative, currently Mitra Farahbaksh, ensures our presence in the field.
Rwanda’s PSI, which is in its second year, supports Rwanda’s own policy priorities for strong and inclusive growth, with an emphasis on domestic resource mobilization, private sector development, export diversification, regional integration, and financial sector development.
We recently reviewed this programme and welcomed the country’s continued strong performance. We also agreed with the government that more work needs to be done to further reduce Rwanda’s reliance on aid and increase its resilience to external shocks.
What is your economic outlook for the country between now and 2020?
Our outlook for Rwanda is positive. The economy is recovering from a weak performance in agriculture and delays in related project implementation in recent years. Growth rebounded last year and inflation remains well contained. We expect GDP growth rates to rise gradually towards 7-7.5 per cent in the medium term, while inflation remains within the medium-term target of 5 per cent.
I am particularly impressed with the government’s continued commitment to poverty reduction.
As part of my stay here, I will be visiting the Agaseke Handicraft Cooperative and the ICT hub (knowledge Lab) in Kigali to see firsthand how the government has managed to improve the welfare of vulnerable and disadvantaged groups such as women and youth.
As your readers are aware, the Economic Development and Poverty Reduction Strategy for 2013–18 focuses on economic transformation, rural development, and youth employment. The strategy is rightly aimed at further reducing poverty.
I think that the continued rollout of planned measures and the successful inclusion of the private sector in leading economic development will help make sizeable inroads in making growth even more inclusive and in reducing inequality.
In a recent advisory by the IMF Board, they encouraged Rwanda to widen its tax base and put emphasis on domestic revenue sourcing. What is your advice on this?
We are devoting a significant portion of our technical assistance to support Rwanda’s efforts to reduce its dependence on foreign aid. The focus is appropriately on widening the tax base – not higher taxes, but all paying a fair share.
The government has already made significant progress in the areas of revenue administration.
The push to increase the number of registered VAT payers through the introduction of electronic billing machines, and the switch in the collection of local taxes and fees from the local governments to the revenue authority, should be useful in bringing more businesses under the tax system.
The introduction of tax regimes for agriculture and mining, and improvements in property taxation, should also help achieve the goal of providing budgetary resources for key expenditures, particularly those aimed at scaling up social spending and infrastructure in a context where donor resources are likely to be limited.
Lately, Rwanda has taken to raising money through bonds, do you think this is viable?
Rwanda’s successful Euro-bond issuance in 2013 demonstrated that market financing can play a complementary role in financing investment plans. Several other African countries have followed suit over the past year.
The key is to ensure that Rwanda’s debt remains sustainable. I welcome the government’s commitment to fully explore concessional financing options and private sector participation before considering the use of non-concessional resources.
At the same time, the government’s decision to begin issuing domestic currency bonds in 2014 was an important step in the process of developing and deepening local capital markets.
www.newtimes.co.rw/section/article/2015-01-26/185319/
Creating jobs remains a high priority for this country, but as you know the private sector is also still young. What should Rwanda do to address these two issues?
On private sector development, Rwanda’s potential depends critically on full implementation of ongoing reforms to attract foreign investment and boost exports. These include reducing the cost of doing business; improving infrastructure; supporting skills development; and tapping into regional markets.
The increased provision of lower-cost electricity and improved transportation should help facilitate diversification and business development.
On creating jobs, the government has identified three key priorities: skills development, the fostering of entrepreneurship for small- and medium-sized enterprises, and supporting household enterprises. We at the Fund share this emphasis on building the capacity of Africa’s greatest resource–its people. Increased investment in infrastructure can help put people to work.
The IMF’s latest Regional Economic Outlook for Sub-Saharan Africa projects regional GDP growth to pick up from about 5 per cent in 2013/14 to 5.75 per cent in 2015. That isn’t a big leap, is it? Can you elaborate on this?
Sub-Saharan Africa has made impressive progress over the past two decades, with growth averaging around 5 per cent. We expect that to continue in 2015, despite the impact of lower oil prices on some of Africa’s major oil exporting economies.
So there has been real progress, as growth has allowed for reducing poverty and improving living conditions.
For example, the number of people living on less than $1.25 a day in Africa has fallen significantly since 1990. But extreme poverty remains unacceptably high and not all countries are making progress. Some countries are still facing internal conflict and/or fragility.
Looking ahead, there are a number of longer-term demographic, technological and environmental challenges that need to be addressed in order to realise the ‘big leap’ that you refer to.
For instance, how can we tap into the productive capacity of Africa’s youth? How can Africa take advantage of technological innovation?
And how can we address the implications of climate change? Three broad policy priorities are crucial: building infrastructure, building institutions, and building people. Africa must also strengthen its institutional and governance frameworks to better manage its vast resources.
But the focus must be on people—with programmes aimed at boosting health and education and other essential social services. In fact, Rwanda is one of the countries that are effectively implementing policies in many of these areas.
The Ebola outbreak in West Africa has dealt a major blow to several African economies in the region. Can the effects of this blow spread to other parts of the continent?
The Ebola outbreak is a severe human, social and economic crisis that requires a resolute response. And the focus must be on isolating the virus, not the countries.
Strong efforts are underway in Guinea, Liberia and Sierra Leone, but it is unlikely to be brought under control before the second half of 2015.
The economic outlook for these countries has already worsened since September, when the IMF disbursed $130 million to the (three) countries to boost their response to the outbreak.
If the outbreak remains limited to the three countries, the economic outlook for the rest of sub-Saharan Africa remains favourable. Some neighbouring countries like The Gambia have seen an impact on tourism.
We are working with the governments of the three affected countries to provide additional interest-free financing of about $160 million, and expect our Board to make a decision in the next few days.
Following the endorsement by the G-20 leaders in Australia, we are also looking at further options to provide additional support to the Ebola-hit countries, including through the provision of donor-supported debt relief.
International oil prices have been tumbling, is this good for Rwanda and the other members of the EAC?
Indeed, oil prices have fallen recently, affecting both oil producers and consumers. Overall, we see the price decline as positive for the global economy. As an oil importer, Rwanda and indeed the East Africa region should benefit given that lower prices will most likely have a positive impact on growth whilst also easing inflation.
Countries can make use of this window of opportunity to reduce universal energy subsidies and use the savings toward more targeted transfers that benefit the poor.
Recently, the East African Community, a regional bloc to which Rwanda subscribes, reached a landmark Economic Partnership agreement (Epa) with Europe. Do you think that these countries need such agreements?
The EPA is designed to enhance commercial and economic relations, supporting a new trading dynamic in the region and deepening cooperation in trade and investment. It can serve as an important instrument of development in many respects.
It can promote sustained growth, increase the productive capacity of EAC economies, foster diversification and competitiveness, and, of course, boost trade, investment and employment. Rwanda is a key member of the EAC that has worked hard to create a conducive and transparent business environment. So it should benefit from this agreement.
**************************
About Lagarde
Christine Lagarde assumed the mantle of the International Monetary Fund in July 2011. A Frenchwoman, she was previously French finance minister from June 2007, and had also served for two years as France’s minister for foreign trade.
Lagarde also has had an extensive and noteworthy career as an anti-trust and labour lawyer, serving as a partner with the international law firm of Baker & McKenzie, where the partnership elected her as chairman in October 1999.
The IMF is an organisation of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Photos : Jack Yakubu (Jack Nkinzingabo)