Diaspora to trim Rwanda’s dependency on donor funds

Over Rwf800 million is planned to be raised through a monthly contribution of Rwf10,000 per person Despite Rwanda’s internationally tainted image due to the past genocides, the Rwandan Diaspora is contributing to the national socio- economic development of the country. According to the ‘Rwandan Diaspora Policy’ definition, “The Rwandan Diaspora refers to all Rwandans who left their country voluntarily or who were forced to live in other countries of the world; this includes people with Rwandan background and Rwandan culture.” During the 8th Annual Diaspora meeting at Kagugu a suburb in Kigali City, that took place on December 21 to 22, the Diaspora agreed to set up a Diaspora Mutual Fund (DMF)—with the objective of collecting money from the Rwandan Diaspora for their benefits as well as the socio-economic development of their motherland. Over Rwf800 million is planned to be raised through a monthly contribution of Rwf10,000 per person. In a presentation by Providence Bikumbi and Ismael Buchanan, members of the investment initiative of Rwandan Diaspora, all treasury bonds investments from the Diaspora will be guaranteed by the National Bank of Rwanda (BNR) and funds will be electronically channeled directly through the bank. This will ensure fast, simple, traceable and trustworthy transactions. The fund is to be operational within three months, starting January next year. According to Francois Kanimba, the Governor of the National Bank of Rwanda, committed Rwandan’s in the Diaspora will receive special interest rates as low as 8 percent while the Central Reserve will target a 0 percent interest fee on remittances. They contribute a lot. The Governor further stated that, as of November 2008 remittances from the Diaspora had hit $128.24million (Rwf71.3billion), growing from $103.03 million (Rwf57.3 billion) and $63.87 million (Rwf35.5 billion) in 2007 and 2006 respectively. Such remittances from the Diaspora cannot be taken lightly considering the impact they will cause on achieving Rwanda’s Vision 2020 goals . Through the Economic Development and Poverty Reduction Strategy (EDPRS), planners want to turn Rwanda into a middle income country by reducing the poverty levels from the current 60 percent to less than 25 percent increasing the per capita income from the current US$250 (Rwf139,000) to $900 (Rwf500,400) by the year 2020, integrating the Diaspora as a major player in the national socio-economic development of Rwanda is important. However, challenges of eliminating negative factors that hinder peace as a tool of socio-economic development still remain. The western media and small groups which spread hate ideologies have continued tainting the image of Rwanda. Rwandans should forget the likes of Paul Rusesabagina’s group and other minor groups who continue to spread hate ideologies in France and Belgium, creating divisions among the Diaspora. This is partly because Rwandan’s abroad still lack credible information on the realities and facts back home as regards social, economic and political developments. Currently projects aiming at mobilising the Rwandan Diaspora and friends of Rwanda to help Genocide survivors are in place. A recent development that has been conceived is the “Diaspora One Dollar Campaign for Genocide Survivors.” The Diaspora forecasts to raise US$100,000 (Rwf55.6 million) from around 20,000 contributors. The campaign is expected to cover a period of 100 days with mobilisation ending in the first two weeks of June 2009. If this money is got, it will greatly assist Genocide survivors in the Diaspora by improving their socio-economic welfare, hence fostering unity and reconciliation. But the current government started the mobilisation campaign earlier. In 2001, a desk in charge of Rwandans in the Diaspora was created within the Ministry of Foreign Affairs and Cooperation (MINAFET) and was progressively reinforced by a cabinet decision of June 20th, 2008, to become the Diaspora General Directorate (DGD). This was mainly to do the work of coordination and sensitisation of interested Rwandans overseas in their role in the ongoing and planned development projects in the country. Therefore, working together with Rwandan Embassies and diplomatic missions abroad as key actors in the process of sensitisation will serve as a link between national institutions and the Rwandan Diaspora. It is through cooperating with both government and non-government organisations like; the National Unity and Reconciliation Commission, National Youth Council, Private Sector Federation, National Development Board, and Rwandan Diaspora Associations like; National Commission Against the Genocide, IBUKA and FARG, will development be achieved. These indicators in remittances clearly show that Rwanda is moving steadily ahead in its promotion of social peace for economic development and, will definitely rely less on Foreign aid. Meaning the Swedes and Dutch foreign aid withdrawal has been negated by the Rwandan Diaspora that continues to invest in profitable projects. In this way, through financially effective and physical transfers, image building, good governance, trade and investments, harmony will be attained between the Diaspora Rwandans and Motherland Rwanda. Ends