The World Bank Country Office yesterday released the Rwanda Economic Update (REU) that makes an interesting SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis.

While it gives a clean bill of health with the three quarters of 2015 registering a 6.9% growth, it points out to something that has not been a subject of discussion as much as it deserves; underemployment. It is a situation where someone works less than 35 hours a week but wishes to work more.

The growth of off-farm jobs could be the main reason as more skilled manpower is produced at a faster rate than job opportunities. This gives the message the government has not failed to pound in people’s minds; people should focus more in creating their own jobs instead of seeking employment.

But as the report emphasises, the financial sector remains the biggest drawback with private investments accounting for less than half of all investment. But it also highlights in red the biggest obstacle, what it terms as "high and sticky lending rates”.

That issue has been in the spotlight for some time and authorities have taken it as a serious threat. It could also explain why private investments are low. So, if the above two issues are addressed, coupled with the country’ sound macroeconomic management that has kept inflation at 2.5%, we could see a completely different REU next year.

The ingredients are already there as long as they remain constant; low world oil prices and countries of the Great Lakes Region continue to register positive growth. At the end of the day, the region’s free movement of labour might address the issue of underemployment.