We have a lot to be thankful for in 2023. After battling COVID-19 for nearly three years, things are back to normal: Rwandans are travelling once again. Rwandair flights are full.

As we welcome visitors from around the world, our recovery is extending beyond the airport and airlines to the hotels, shops, F&B, and service sectors too.

Rwanda resumed hosting flagship international events, including the recently concluded FIFA congress. The country also welcomed the amazing Tour du Rwanda, energising our city with the rush of exhilarating races, BK Arena is buzzing with concerts and performances, and sending a strong signal that Rwanda is back in business.

We would not have got here without the support and trust of Rwandans, and the valiant efforts of our frontline workers. In a crisis, they answered the call of duty and more. They stepped forward to protect us all, often at considerable risk and sacrifice to themselves and their families. When the situation improved, they toiled on behind the scenes so that the rest of us could return to normal lives. They represent the best of Rwanda and deserve our deepest gratitude.

Looking Ahead

The international outlook remains troubled. The Russia-Ukraine conflict continues, with no good outcome in sight. US-China tensions are likely to persist. There is a looming banking crisis in America and Europe, and a very angry population from South Africa, Namibia and Kenya where national shutdowns are taking place.

We must therefore brace ourselves for the uncertainties ahead. Even the darkest of clouds have silver linings, but only for those bold enough to seize opportunities. We have weathered the pandemic safely and emerged stronger.

Now we need to address the biggest crisis of our time: how to make markets work for everyone.

You see, Rwanda is a nation of entrepreneurs. More than 75% of our population work in micro and small enterprises. But unfortunately, the policies being made work for less than 15% of the population.

Why? Our fundamental issue as a nation is that of capital. The reason why our economy performs below its potential is because we have a high concentration of capital. This is not a Rwanda issue alone. It is actually a colonial legacy. You find that a lot in post independence Africa. From South Africa, Kenya, Morocco and many others. This means that you have a strong elite that tends to control the factors of production and therefore policies are geared to maximize the returns of capital which are very concentrated vis-a-vis creating jobs and income.

So fundamentally, our capital is concentrated where it increases profits by design. Instead of where it should create jobs and incomes for the masses. If you create jobs and incomes for the masses, you have a bigger base. You have a bigger consumer base and that consumer base is what then enables you to do very many things. For example, it will enable you to have a wide tax base which will enable you to finance public service and all sorts of things. It obviously enables you to create all sorts of jobs too.

So we need to de-concentrate capital. The question is how do we redistribute this already concentrated capital? Unfortunately, the conversation about redistribution is always about income. But there is absolutely little to no conversation about redistribution of capital. I believe this column is the pioneer of this conversation. You always hear about redistribution of income using maybe taxation. But what we are saying here is something different. When talking about de-concentration of capital, you don’t have to take it from anyone because the key to redistribution of capital is finance.

How? Because capital is accumulated through finance. Therefore, the government should aim to capitalize the economy at the bottom of the economy because this is a nation of entrepreneurs. More than 75% of our workforce are in small and micro enterprises and largely the informal economy. But if you look at policy, it is made for people at the top of the pyramid who are only 15% of the economy of that about 30% is in the public sector and about 10% in the private sector or formal economy. Majority of Rwandans are outside the formal economy.

Now, before I am mistaken for a socialist, which I am not, this is a very capitalistic narrative. Because as soon as you talk about redistribution, people think of socialism. It is not bad to argue socialist. But in this case we are talking about a nation of entrepreneurs where more than 75% of the population belong in the micro and small enterprises. So enterprise is capitalist. Here, I am making a case of making markets work for everyone. So this conversation is in the domain of the market. Socialism is in the domain of the state. So there is nothing statist about this conversation. I am basically saying that where our market is, is not where our capital is.

Actually, we have the most capital intensive manufacturing industry in East Africa at the level of our development. It takes about $30.000 to create one formal manufacturing job in Rwanda. In South Asia of whom we are competing, it takes about a tenth of that, about $3000. In Kenya, it is at $10.000. Therefore, for one job created in manufacturing Rwanda, you can create about 10 jobs in South Asia and three in Kenya.

This must change.

Keeping the focus

In Rwanda we have to keep a twin focus – address the stresses and strains that businesses feel but also track and respond to our external challenges and keep our long-term strategies right.

Looking ahead, we face more complex challenges but we can create an outstanding future together. What we have today is special, do not take it for granted. It is an extraordinary achievement, the result of hard work by a united population over many years working with good leaders, making Rwanda an exceptional country.

If you look away from the policies, away from the details, all the fine print of the schemes and the programmes and so on, I think we have one basic choice which we have to make at this turning point and the basic choice is this – what sort of Rwanda do we want to be 20 years from now?

Do we still want to be an exceptional country, one which is unique and which people look up to around the world? Or are we content for Rwanda to be an ordinary country getting by but no different from so many other countries all over Africa?

The Rwanda Spirit

Micro, small and medium enterprises embody the Rwanda spirit. They are creating opportunity out of adversity, proving we can when others say we cannot, striving to make life better for our fellow men and women. Our task, this generation, is not just to make a beautiful Rwanda to pass on to the next generation. Our task is to make markets work for everyone and not the few- after all, leaving no one behind is a quintessentially Rwandan mantra. This is important for the young generation: to make building this nation, building Rwanda, their own mission so that they embrace this passion, this responsibility to keep on transforming our nation for the better.

It is therefore important that a discussion on how to deconcentrate capital is held. By unlocking this, we will enable Rwanda to truly maximize its potential. Because where our people are, is not where the capital is. A majority of our people are in the micro, small and medium enterprises.

We can and we must make this a special place we all call home, where we not only prosper but live in peace and harmony, where we not only have careers and opportunities but friends and families where we share not just burdens and rewards, but our worries and our joys, where we make tomorrow always a little bit better than today. Let us work together to continue to build a bright future for Rwanda which will always be our home.