Rwanda’s private sector has been challenged to be more aggressive in leveraging the peace and stability that prevail in the country. Addressing business leaders at a Private Sector Federation induction event that attracted the recently elected PSF leadership, Gen James Kabarebe, the Senior Presidential Advisor on Peace and Security, emphasised the potential role of the private sector in leading the country’s economic liberation. Yet, he observed, the local private sector is still not aggressive enough and therefore not maximising the benefits that came with the country’s liberation from the genocidal government 28 years ago. Different top leaders, including President Paul Kagame, have on different occasions expressed frustration at the poor service offered by local businesses and the fact that Rwandans seem to have accepted it. One of the sectors that have drawn flak is the hospitality industry, but criticism has also been aimed at almost all of the other sectors as well. It is true that Rwanda has a history of weak and small private sector; nonetheless, the shift the government has put in to boost the sector over the years – notably creating a conducive business environment, in addition to the prevailing and security – should have ensured a drastic turnaround by now. While there has been relative progress in some aspects, including in the Made-in-Rwanda sub-sector, the general situation leaves a lot to be desired. As well as falling short domestically, Rwandan businesses have not been able to leverage opportunities presented by regional integration despite Rwanda’s active involvement in the integration agenda. Similarly, few local businesses have sought to make the most of opportunities in many African countries with which Rwanda enjoys excellent relations, including those where it has deployed security forces under bilateral or multilateral arrangements. However, with the recent reforms at PSF coupled with its newly elected leadership, there is an opportunity to turn things around and ensure that the private sector truly becomes the engine of the country’s economic development.
