More jobs needed to minimise the impact of the economic recession

The Rwanda Development Board (RDB) last week said that the country registered 10 investments worth $17 million (Rwf9.9 billion) in March. These investments, registered across eight sectors of the economy, are four projects less the February investments. Major investments were observed in hotel and tourism industry which attracted $7.9 million (Rwf4.5 billion), construction $1 million (Rwf657 million) and food processing sector $1million (Rwf570 million). The service industry is said to have registered $0.5 million (Rwf219 million), petroleum $1.5 million (Rwf855 million), general manufacturing $0.42 million (Rwf239 million, and energy $4.9 million (Rwf239 million). RDB’s estimates show that the 10 investment projects will create 378 jobs when operational. This is good news especially at this time when unemployment and retrenchment rates are high globally and even expected to worsen as the global economy continues to suffer a recession. It is worth noting that the jobs expected from last month’s registered investments are just 7.5 percent of the February jobs created, meaning 4,626 jobs less compared to those expected from the February investments, perhaps a direct indicator that our economy is not immune from the impact of the recession. However, there are positives that should be taken from this trend. One is that though the jobs increased at a decreasing rate, at least some people are being put into the workforce, increasing the net employment growth as opposed to other economies which are faced with constant layoffs. Secondary, these investments could result into more jobs than those RDB projects, mainly through linkages and help to increase Rwanda’s output. In this economic down turn, it is very vital to create jobs and this is why all nations and multilateral institutions are talking about stimulus packages. RDB says that in February, investments worth $125 million (Rwf70.6 billion) registered. Despite the declines in investments last month, the board said in the statement that it introduced a single application form for business registration and that preparations are ongoing to modernise business registration for electronic registration by end of the year. The company law was adopted by the parliament. These achievements should be able to ease doing business in the country and help in the realization of increased investment inflows. Ends