Rwanda’s quest for global competitiveness laudable

RWANDA has emerged as the top country in this region on the competitiveness index released on 9 September 2010 by the World Economic Forum. Rwanda was included in the flagship study for the first time. The Global Competitiveness Report’s ranking is based on the Global Competitiveness Index (GCI), developed for the World Economic Forum by Prof. Salai-Martin and introduced in 2004. The GCI is based on 12 pillars of competitiveness, providing a comprehensive picture of the competitiveness landscape in countries around the world at all stages of development. The pillars are: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation. Rwanda performed well in business sophistication and innovation; directly linked to recent changes in the business environment. “As do the other comparatively successful African countries, Rwanda benefits from strong and well-functioning institutions, with very low levels of corruption (certainly related to the government’s non-tolerance policy) and an excellent security environment,” reads the 515-page report, in part. “Labour markets are highly efficient, financial markets are relatively well developed, and Rwanda is characterized by a high capacity for innovation for a country at its stage of development.” In the economic perspective, many issues, discussions and research activities on underlying causes of poverty in Africa have been explored or carried out in various forums. To that effect, a number of recommendations, measures and strategies have been adopted to counter the continent’s chronic poverty. Nevertheless, few positive results have been realized. This limited success is partly attributed to lack of political will to effectively implement recommendations that are issued. Rwanda, in her approach to foster economic development, has embraced a number of reforms to maximize investment opportunities by facilitating investors. The merging of seven government institutions, each of which played key roles in investment promotion resulted in the reduction of bureaucratic tendencies; thus Rwanda Development Board (RDB), a government institution, was established and assigned the function of “one stop centre” with the intention of fast tracking economic development in Rwanda. An independent agency, RDB is influential and built with global expertise, as well as having a private sector mindset. For efficiency and effectiveness in service delivery to the business community, partner institutions including Rwanda Revenue Authority, the Department of Immigration and Emigration, RECO/RWSCO and the Ministry of Justice have delegated officers to RDB with full powers to issue the required documents. The one-stop centre has evolved through several stages in order to suit the current investment promotion environment, and there is a facilitation team that serves as a guide for investors in Rwanda. For those intending to register their businesses in Rwanda, RDB offers an online service, mostly targeting those who are unable go to the office for the registration. Other processes that the government has looked into with the intention of facilitating both local and foreign investors include; starting the business, construction, registration of property, obtaining credit and cross border trade. With regard to the latter, a one-stop border post concept has been established; first at Gatuna and Nemba border posts, with ongoing plans to create additional ones. In addition, 24-hour border operations have commenced at Gatuna and La Corniche border posts. Trade documents have been streamlined with the removal of the cargo release order and replacing it with a stamp. Reduction of investor’s expenditures, their time as well as trimming down bureaucratic tendencies in the investment sector was given special attention. All the above packages/services are offered in line with government’s goal to make Rwanda a favourable place for investment destination. The above reforms have not only facilitated local and foreign investors; but also enabled Rwanda to emerge as top reformer in the Doing Business Report of 2009. Ends