EDITORIAL: S&P's vote of confidence reflects Rwanda's gains

A new report by Standard & Poor’s projects Rwanda’s real GDP growth to expand at an average 7 per cent in the next three years, yet another indication that programmes and policies designed to strengthen the economy are paying off. The report also noted that the country’s real GDP grew by 7 per cent on average, more than the anticipated 6.3 per cent, in 2014. This development is attributed to the good performance in the services and industry sectors, as well as public and private sector investments which have continued to grow at a moderate, but impressive pace. This performance helped the country to maintain its ‘B+/B’ credit rating for stable outlook (by Standard & Poor’s), with the country having low government debt compared to peers. This credit rating is important, especially as the country seeks to cut on donor dependence and finance a huge chunk of its budget from locally-generated funds and debt. It is also an endorsement of the government’s approach, and should be strengthened to ensure that the country becomes more self-reliant eventually. It also confirms that initiatives like second Economic Development and poverty Reduction Strategy (EDPRS II) are bearing fruit. Already, the fourth Integrated Household Living Survey, launched on Monday, indicates that poverty levels dropped to 39 per cent, down from 44 per cent three years ago. About 146,000 off-farm jobs have also been created annually over the period. This shows that the annual target of 200,000 new off-farms jobs is within reach. However, more needs to be done for the economy to revert to 8 per cent growth rate achieved over the years to 2013. Challenges, like shortage of power and water for industrial use, should also be addressed to ensure sustainable industrial and economic growth going forward.

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EDITORIAL: S&P's vote of confidence reflects Rwanda's gains