Districts not fully exploiting economic potential – report

A new report on local economic opportunities has indicated that districts have resources that remain unexploited or underexploited while they could use them to boost economic development and improve social welfare.

Friday, June 07, 2013
A coffee farmer in Eastern Province. The report also cites limited horticulture production and insufficient agricultural processing. Saturday Times/File.

A new report on local economic opportunities has indicated that districts have resources that remain unexploited or underexploited while they could use them to boost economic development and improve social welfare.The report, which was compiled by Imanzi Ltd, a consultancy firm, cites potentials in the areas of agriculture and agro-processing, forestry and mining, transport and energy, tourism, commerce, arts and crafts.The report was validated at national level during a meeting held in Kigali on Thursday, but it is also expected to be presented to districts as they  are considered the implementers of the recommendations.The study was carried out from October 2012, with the objective of identifying economic potential in all 30 districts and come up with strategies for valorising identified potentialities.Imanzi Ltd was contracted by the Rwanda Local Development Support Fund (RLDSF). Speaking on behalf of the consultants, Prof Kalisa Mbanda noted that the mindset that scarcity of natural resources handicaps Rwanda’s economic development is a mentality that needs to change because it is misguided."Rwanda is not short of natural resources as people usually think. The problem is how we exploit what we have …the problem is not Rwanda’s small size, even what we have is under exploited,” said Mbanda, who is also the Chairperson of the National Electoral Commission.Mbanda gave an example of the numerous water resources that the country is endowed with but are not being exploited both for agriculture and energy needs.On agriculture, the report says the agricultural potential include marshlands, rich soils and fish farming.The Permanent Secretary in the Ministry of Local Government, Vincent Munyeshyaka, encouraged the role of private sector in exploiting these resources for the country’s development."Every district has investment opportunities, we prefer using the private sector in effective exploitation of the resources as the private sector is the driver of Rwanda’s economy,” said Munyeshyaka, adding that the move is in line with Rwanda’s vision of self-reliance. The report also recommends that Rwanda Development Board supports private investment by identifying potential investors and linking  them to districts and support the development of private business depending on the opportunities available in a particular district.The study highlights inadequate electricity as a threat to doing business and agro-processors, poor feeder roads which raise transport costs and contributes to crop wastage.The report also cites limited horticulture production, insufficient agricultural processing.The report also shows that poor roads between trading centres limit business and growth.