More jobs created in 2008 as business environment improves

A total of 5,697 new jobs were created by the end of November 2008, largely boosted by the service sector which generated 3,689 jobs according to statistics from the Rwanda Investment and Export Promotional Agency (RIEPA) have shown.

Friday, January 16, 2009

A total of 5,697 new jobs were created by the end of November 2008, largely boosted by the service sector which generated 3,689 jobs according to statistics from the Rwanda Investment and Export Promotional Agency (RIEPA) have shown.

RIEPA which was last year merged with other government agencies to form the Rwanda Development Board (RDB) says that in 2007 only 2,871 new jobs had been created, an increase of 98 percent last year. 

Official say that the increase in jobs is due to increased investments registered in 2008, a direct result of the strong performance of investor facilitation at the One Stop Centre (OSC) in the agency.

However, while the service sector contributed 88 percent of the total jobs created, the agency says that tourism and Information Communication Technology (ICT) sectors contributed negatively to job growth rate with a decline of 13 percent and one percent respectively.

These are crucial sectors to the Rwandan economy given that tourism is currently the country’s top foreign exchange earner while ICT has been identified by government as a potential tool for accelerating economic growth.

The Agro-processing sector which represents over 45 percent of Rwanda’s Gross Domestic Product (GDP), has managed to maintain new operational projects, creating 286 jobs, the same case in 2007.

Some of the reforms which contributed to increased investments into the economy include property registration where government has decided to remove mortgage registration fees.

These fees amount to 6 percent and 2.25 percent respectively of property selling price. This was replaced by a uniform Rfw20,000 forfeit.

According to RIEPA, the application procedures for various construction licenses at the three district levels of Kigali City have been consolidated into one document.

"In order to acquire a license, the time has been reduced from 105 days to 30 days. Meaning that, 75 days have been deducted from the procedure,” a statement reads in part.

It adds that, some of the reform carried out in this respect had the objective of merging the application process for both water and electricity.

To cut the cost for utility connections electrogaz, Rwanda is sub-contracting its services to three private providers in the market including Entregele, Rutagarama etablissement, and Murenzi Emille na Liberte Construction.

Previously there were six procedures for applying for water and electricity separately despite the fact that both services are supplied by a single provider (Electrogaz).

Other reforms have been registered in starting up a business. RIEPA says that the procedures, an entrepreneur underwent to formally start and operate a business were numerous.

Government established the Rwanda Commercial Registration Agency to reduce the bureaucracies.

As a result of these reforms, statistics show that as of November 31, 2008, the agency registered 89 projects, 55 of them valued at Rfw221.6 billion already operational.

Figures also show that a total of 33,692 jobs have been created since 2000 with services and construction sectors contributing a combined umber of 15,119 jobs in the same stretch but agro-processing as the leading sector in job creation since 2000,6923,692

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