Rwanda should address skills gap to strengthen service delivery—WB

Given Rwanda’s ambitions, the country should address the present skills gap in various sectors in order to maximise its full potential. This is according to the latest World Bank report on trade outlook themed Fostering Rwanda’s competitiveness, resilience, and making the most of regional integration under AfCFTA in the post Covid-era. The report comes at a time when the East African Community (EAC) region has introduced Mutual Recognition Agreements (MRAs) in three professional services including accounting, architectural and engineering services. According to the report, Rwanda would need to expand the number of qualified professionals for this to be achieved. “To extend services trade further, MRAs could be drafted for other professional sectors, including legal, finance, and consulting professionals,” the report reads in part. “Similar benefits could occur from extending this recognition to other areas with skills shortages such as health and education,” World Bank added. However, it pointed out, in the absence of an EAC-wide MRA, Rwanda should consider acting unilaterally to recognise qualifications for regional professionals to achieve its development ambitions. Commenting on the observation, Rolande Pryce, World Bank Country Manager, highlighted that Rwanda should consider pursuing further bilateral and multilateral agreements, to improve the regulatory framework for digital services leading to an improved access to export opportunities. For example, she said, there is a chance to engage more intensively in the World Trade Organization (WTO) space on issues of importance for the country’s services trade, and take that opportunity to influence the agreements reached as well as to learn about best practices in services regulation. “This is still an opportunity we have yet to fully take advantage of,” she asserted. Pryce also disclosed that the World Bank is currently preparing a $250 million development policy operation, which she said, is focused on private sector investment and green growth to support a new generation of trade reforms. For Lucy Nshuti Mbabazi, Head of Africa Advocacy and Partnerships of the Better than Cash Alliance, the report provides data that will facilitate informed investment decisions. In particular, she said, the opportunity in manufacturing and services is really exciting, not to mention the potential for growth in wages for the labour intensive part of the economy. Mbabazi also recommended that the report should include the 43 per cent of traders living in continental free trade areas at the land borders. “Because, unfortunately, they are not counted in the Intra African Trade. And yet they do this on a daily basis. They are crossing every day in thousands to buy and sell goods.” “And obviously what we don't see we can't count, and therefore can’t solve for challenges they face. So I really would like to see the elevation of the cross border trader, as much as they are micro and small, they come in the millions across the continent and for Rwanda, I believe they are in thousands.” Richard Niwenshuti, Permanent Secretary at the Ministry of Trade and Industry, echoed similar sentiments, citing that recommendations were resounding. “Even in the midst of these various challenges, trade is performing, which means that there are alternative ways to keep sustainable trade. This is where the new generation of trade policies should be thought through,” he added.

News

Rwanda should address skills gap to strengthen service delivery—WB