Re-known economist speaks on Rwanda’s private sector

Rwanda’s private sector stands in a good position to favorably compete in the East African region, a world renowned economist Michael Porter said. Porter, an authority on competitiveness also added that the achievement will only be possible if the country can improve its competitiveness and focus on cluster development. He said these remarks while meeting with the Rwandan business community which was converged by the Rwanda Private Sector Federation (PSF) at Kigali Serena Hotel on Monday. According to Porter, to achieve sustainable competitiveness, a country also has to effectively and efficiently use the factors of production and improve the general business environment. Rwanda according to official reports has already managed to achieve some of these factors. “Rwanda there is the interest and desire to succeed and am committed to help in the country’s quest to become a success,” explained the Harvard Business School Professor. Enhancement of productivity is the biggest challenge that most developing economies face and have to check if they are to be competitive. Porter also said that cluster development whose purpose is to promote economic development of different businesses by improving the competitiveness should be emphasized in order to compete favorably. “Clusters are important because they involve companies that depend on each other for productivity and conditions in clusters should be improved to achieve economic development,” Porter said. However, he also added that any competitive economy should provide easy access to finance by business firms, good roads, and education of workers as well as improving the general business environment which are challenges to businesses. The private sector in Rwanda has developed twelve clusters in various sectors such as mining, silk, tourism and diary and have to enjoy a mutual dependency to enhance productivity. The business community was also urged to provide unique products and services in order remain competitive. Ends

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Re-known economist speaks on Rwanda’s private sector