On December 21, leaders from the Private Sector Federation (PSF), cabinet members, and investors gathered to address the challenges affecting business in Rwanda. Corruption emerged as a major concern, with its prevalence being higher in the private sector compared to other sectors.
Held under the theme "Building a Strong Private Sector for Rwanda’s Economic Growth and Development”, the aim was to enhance coordination among various departments and explore additional opportunities for coordinated brainstorming to improve the outcomes of activities, particularly in the business domain.
PSF emphasised the continual growth of the economy, acknowledging its significant progress over 23 years. They also expressed hope for continued advancement over the next 27 years, aiming for notable milestones, while emphasising the importance of minimal corruption in the workplace.
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According to the Ombudsman 2023 report, corruption rates stand at 52.9 per cent in non-governmental organisations, 56.04 per cent among government officials, and notably higher at 61.9 per cent within the private sector.
Notably, the sector employs 94 per cent of the labour market. By 2021, 942,324 new jobs were created out of the one million target in five years, achieving an 88 per cent rate, according to the National Institute of Statistics Rwanda (NISR). The aim is to empower youth as entrepreneurs and offer school graduates opportunities for practical skill-building and capacity enhancement.
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Jeanne Francoise Mubiligi, the acting chairperson of PSF, said they are currently reviewing an assessment highlighting the private sector’s unpleasant position concerning corruption.
"We are also focused on implementing anti-corruption committees within various companies, aligning with an agreed-upon strategy.
She noted: "Progress has been sluggish in implementing these measures. We are assessing the challenges and seeking ways to leverage PSF resources effectively to ensure companies successfully establish these committees.”
"With this, the committee aims to mitigate and improve the reporting of corruption,” she said, noting that they plan to actively engage and educate businesses and employees in the private sector. Given its significant role in the labour market, we are implementing various programmes, including training for future staff, to integrate anti-corruption initiatives within PSF’s existing programmes,” she said.
Mubiligi acknowledged PSF’s substantial role in the country’s economy but emphasised the need to establish a strong brand presence. They aim to proactively address issues within the private sector and inform the government about measures that could aid the country’s economic development.
Drawing a line on the issue, she pointed out that good governance encompasses eradicating corruption, and Rwanda maintains a zero-tolerance policy towards it. "Corruption is like a virus in the economy, therefore, must be eliminated for lasting achievements to endure.”
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Faustin Mwambari, Director of Labour Research and Employment Promotion at the Ministry of Public Service and Labour, said the private sector’s substantial impact on employment is acknowledged, yet disruptions within it can adversely affect job opportunities. Therefore, continued investment in job-generating sectors is crucial for sustained positive contributions.
"Building worker capacity is important for enhancing productivity, leading to growth for companies, workers, and the nation alike. This highlights the significance of supporting initiatives aimed at boosting workforce skills,” he noted.
Mwambari expressed that increasing opportunities for internships is crucial for recent graduates to align their knowledge with the labour market demands. Providing these opportunities prepares the future workforce, enhancing productivity and knowledge among upcoming generations.
He noted: "Establishing collective bargaining agreements between companies and employees can significantly enhance productivity, and that is what we urge them to do. Demonstrated cases of increased production linked to improved compensation showcase the potential benefits for both parties involved.
"We encourage private companies to adopt this approach because it creates a mutually beneficial scenario, fostering productivity while supporting employee welfare in general.
"The reluctance to engage in contracts often stems from fears of potential contractual issues; however we urge them to work on it for a win-win situation.”