Policy researchers seek strategy to empower industrial sector

There is need for more incentives to stimulate industrial development in the country, researchers said.This was raised at IPAR (Institute of Policy Analysis and Research-Rwanda) third annual research conference in Kigali on Wednesday.The meeting discussed the impact of research in economic policy.Findings presented at the meeting show that Rwanda’s industrial sector is still low with only 15 per cent exports from this sector compared to 33 per cent from the agriculture sector and 52 per cent from the service sector.Reacting to the findings, participants called for more incentives to stimulate the industrial sector, noting that it’s a strong driver in growing economies.Dickson Mulumba, a senior researcher at IPAR, said in addition to incentives given to investors, more emphasis should be put on domestic direct investments (DDIs). “To become self-reliant while catering for FDIs, also look into DDIs. We have to advocate for our local industrialists for us to get a booming manufacturing sector,” he said.Tax exemptionsHe added that government can consider tax holidays for local investors and ease access to finances which will attract them to the industry. Mitra Farahbaksh, the International Monetary Fund resident representative in Rwanda, said at 0.3 per cent growth rate, the countrys industrial growth is too low. The government has put in place policies to boost the business environment and complement efforts to develop the industrial sector, including SME development policy, encouraging public private partnership, among other things.According to available figures from the ministry, in 2011 the industrial sector contributed only 15 per cent to the GDP against the target of 26 per cent by 2020.Leonard Rugwabiza, the director general of development planning and research at the Ministry of Finance and Economic Planning called for more research for proper policy making.The conference was organised under the theme “Paving the way for self reliance.”

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Policy researchers seek strategy to empower industrial sector