Experts have welcomed the government’s decision to create a new ministry in charge of public investments and privatisation, with hopes it will help stave off huge losses in public enterprises.

For some years now, there has not been a singular entity at the policy level that coordinated all public investments, which meant a lack of synchronised policy interventions and oversight. 

This despite the fact that bold public investments have been the hallmark of the post-Genocide government, a major factor behind the growth of several sectors, including hospitality, aviation, agribusiness, among others.

Furthermore, as a firm believer in Public-Private Partnerships, the Government of Rwanda also holds stakes in several companies across different industries, while it has also often created special purpose vehicles to fast-track investment objectives.

This naturally calls for strategic guidance, seamless policy directions, agility and close supervision, the absence of which could lead to costly errors – deliberate or not.

The Office of Auditor General of State Finances has done an impressive job shining a light on public investments that were either mismanaged or whose funds were diverted over the years. While remedial action has often been taken to stop the hemorrhage, there was still a major gap in terms of an institutional framework to set the tone for public investments and follow up on AG recommendations.

Some of the public enterprises or investment undertakings have, over the years, received qualified audit opinions, some adverse or even disclaimer opinions.

Furthermore, irregularities have been identified in some investments by several districts, which led to loss of public funds with knock-on effects on the wellbeing of citizens.

The trend has particularly been noted in recent years with more districts looking to industrialise. There is a need to ensure value for money in investments by decentralized entities.

Equally significant is ensuring that the privatisation process is conducted in a manner that makes business sense for the government and helps achieve the strategic objectives of transferring public business or property into private hands.

Taxpayers will be hoping the new ministry delivers on its dual mandate effectively.

Indeed, there is no honeymoon for Eric Rwigamba and his team as their work is cut out for them. As soon as he takes the oath of office on Tuesday, August 2, Rwigamba will need to urgently swing into action with a view to help tackle mismanagement of public funds, embezzlement and fraudulent transactions in government enterprises.

Needless to say, this is a noble and timely mission given the country is bidding to recover from the pandemic-induced economic downturn, while it also grapples with the economic consequences of the Russia-Ukraine conflict.