Rwanda tops Africa in WEF ranking on investment profile

Rwanda could see increased interest from foreign investors following a favourable ranking by the World Economic Forum’s (WEF) Global Competitive Report 2014-2015, economists and private sector players predict. Rwanda is the most efficiently governed country in Africa and seventh globally, according to the new ranking released this week. “Rwanda’s strong showing was secured, thanks, in large part, to the low level of waste in government spending,” says WEF summary report in part. The survey, which ranked over 140 countries, takes into account a list of indicators that influence the productivity of businesses in a country. Drawn from independent surveys of private sector operators in the country, the indicators are: national institutions, infrastructure, access to markets and finance, education, macro-economic environment, efficiency of labour, service markets, technology and innovation. On the effectiveness of the government in facilitating competiveness of the private sector, the report evaluated wastefulness of government spending, burden of regulation and transparency of policy-making. Francis Gatare, the chief executive officer of the Rwanda Development Board, and an economist, noted that it was a recognition that governments are key in facilitating competitiveness of the private sector. “It is in this regard that a survey of Rwandan institutions, policies and facilitation to the business sector has been shown to be efficient,” Gatare said. The ranking indicates that the Government is facilitating private operators to do their business in a way that saves them money, Gatare noted. The report also served as an evaluation for the Government’s ability to efficiently use available (minimal) resources to get maximum output. “Efficiency also involves looking at minimal investment that leads to maximum quality output; it is a recognition of the good quality of output to the private sector given the resources available. This is in respect to the core business of government, which is service delivery,” Gatare said. He said that facilitation of the private sector has been proven to be one of the top factors contributing to the rise in private sector investments. “Comparing last year’s statistics to this year’s, in the first quarter we have already registered more than a 20 per cent increase in private investments. This is a result of many factors, but mainly because of the confidence the private sector continues to have in our markets, particularly, due to government facilitation,” he explained. The private sector is also upbeat on the implications of the ranking to their growth and chances of partnerships with multinationals. Stephen Ruzibiza, the chief executive officer of the Private Sector Federation, told this paper that the WEF ranking creates confidence and awareness among global investors that they can do business in Rwanda with ease and in a transparent manner. “In terms of business and investment, it positions Rwanda to the reputable world map and increases probability of private sector players partnering with multinationals,” Ruzibiza said. The ranking comes days after another ranking by the Foreign Policy magazine’s ranking Global Profitability Index, where Rwanda was placed eighth globally in terms of profitability. Prof. Anastase Shyaka, the chief executive officer Rwanda Governance Board, said Rwanda has put in efforts towards promoting transparency and accountable governance. He said Rwandans have access to crucial information about how government operates, establishes priorities and makes decisions. The survey ranked Qatar as the most efficient country worldwide, followed by Singapore and Finland. In Africa, Rwanda is followed by Mauritius (26th globally) and South Africa in third position (32 globally). In East Africa, Kenya comes second after Rwanda as the most efficient and stands at 51st position at global level, Uganda is in third position (79th globally) followed by Tanzania (81st globally). Burundi comes last in the countries making East African Community (EAC) and in 121st position globally. editorial@newtimes.co.rw

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Rwanda tops Africa in WEF ranking on investment profile