Recent news that Rwanda Development Board had become Arsenal’s first-ever sleeve sponsorship partner was largely greeted with praises with many describing the deal as a masterstroke that would help transform the country’s tourism sector.
Nonetheless, some people criticised the partnership arguing that a country that still receives aid should not be spending its resources in that way. Donors contribute 17 per cent of Rwanda’s current budget, down from 80 per cent 15 years ago.
RDB officials said the money that will be spent on the three-year tourism deal with the London club was part of its marketing strategy and drawn from the country’s tourism receipts, not donor funds as some suggested. In 2016, Rwanda fetched some $404 million from tourism, the country’s largest foreign exchange earner, up from about $200m in 2010, with RDB now targeting to collect at least $800m by 2024.
Among those who questioned the Rwanda-Arsenal deal include a section of Dutch members of parliament.
This week, the Dutch Minister for Foreign Trade and Development Cooperation, Sigrid Kaag, was in Dutch parliament where she fielded questions from the lawmakers about the issue, during which she also underlined the importance of Rwanda marketing its tourism and stated her government’s commitment to supporting Rwanda’s efforts to become aid-independent.
Below are the excerpts of the translated version of the hearing:
Sigrid Kaag
Are you familiar with the message "Rwanda becomes new shirt sponsor of Arsenal”?
On 24 May last week, I heard about the Rwandan decision via media reports and tweets from a few questioners.
The Rwanda Development Board (RDB), the government agency responsible for attracting investments and promoting tourism, has signed a three-year partnership with the British football club Arsenal. In a press statement on 29 May, the RDB explained that the partnership is part of a broader strategy to double income from tourism in 2024 to USD 800 million. In addition to shirt sponsorship, players from various Arsenal teams will visit Rwanda within this partnership. Arsenal coaches will also develop various football activities for Rwandan youths.
Is it true that the Rwandan government is going to pay about $ 40 million to Arsenal football club in exchange for marketing for the country?
The Rwanda Development Board has not made any statements about the costs associated with this partnership.
Are you still of the opinion that, as you describe it on your website, countries like Rwanda "cannot effectively combat poverty without help”?
On 19 September 2016, your House was informed about the decision to add Rwanda to the so-called category of transitional countries (Parliamentary Papers 33635, no. 226). In countries with a transition relationship, the aim is to gradually phase out bilateral aid, from the perspective of a relationship based more on mutual interests in trade, investment and political cooperation. The aid will be phased out in the coming years.
Rwanda is still a Least Developed Country with a limited economic base and socio-economic development, but it has the desire to become more aid-independent. This commitment is in line with the greater role for trade and investments that the Netherlands is striving for in the relationship with Rwanda. The idea to broaden the relationship with the Netherlands was emphatically welcomed by Rwanda. Our commitment is in line with a broader international development. In the report of the World Bank "Doing Business 2018” Rwanda rose 15 places on the world ranking list of best countries to do business, putting the country in the second place of the African continent.
Is it also correct that, according to your new memorandum "Investing in Perspective – Good for the World, Good for the Netherlands”, you intend to continue the development relationship with Rwanda, which includes central humanitarian aid and poverty reduction? Can you indicate how much the Ministry intends to invest in Rwanda in 2018? How big was this amount in 2017?
The government wants to continue the above-described transition relationship with Rwanda. In Rwanda, the Netherlands focuses on the food security, water and safety and legal order sectors. In addition, the Netherlands invests in private sector development. In 2017, the Netherlands invested € 42.5 million in Rwanda through the Dutch embassy. In 2018, the Netherlands intends to continue this commitment for the time being.
At the same time, the Netherlands intends to optimize the trade links with the country. For example, the government sees opportunities for Dutch entrepreneurs in the horticulture sector, a rapidly growing sector in Rwanda.
How do you rhyme this news with your analysis of the aid dependency of Rwanda? Do you see a reason to approach Rwanda at this step, or do you think that an aid relationship should simply be able to go hand in hand with country marketing at this level?
The Netherlands understands that Rwanda, as part of a broader development strategy, wants to further develop its tourism industry and that promotion and marketing are part of this. The choice for Arsenal is up to Rwanda itself. The Premier League obviously has a global reach and is followed by hundreds of millions of people every week. Arsenal itself has official supporters’ associations all over the world, 23 of which are in Africa (and one in Rwanda).
Rwanda sees the partnership with Arsenal as an investment that will contribute to the awareness of Rwanda as a tourist destination and thus to the further development of the country. Among other things, Rwanda thinks that the income from the tourism sector, an important source of foreign currency, will double in 2024. The Rwandan strategy is not without success. According to the IMF, the number of international visitors reaching Rwanda doubled to 1.3 million between 2010 and 2015. Income from tourism increased annually from USD 202 million in 2010 to more than USD 400 million in 2016. This does not detract from the fact that inequality remains high in the country. (IMF Country Report no. 17/214, June 2017). Other countries with which the Netherlands has a relationship also try to generate more income through tourism. For example, Kenya recently developed and launched a new strategy for tourism.
The Netherlands continues to enter into a dialogue with Rwanda about the development of the country in order to support Rwanda in its own objective of becoming independent of aid. This also includes a broad dialogue with actors such as the Rwanda Development Board about the effectiveness of such investments and how these relate to Dutch efforts in other sectors.
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