The Rwanda Development Board (RDB) has reduced the time needed to register a business in the country from 24 hours to just six.Many companies have been registered due to the friendly reforms over time, making Rwanda an ideal destination to do business.Lessening the time taken to register a business will, without doubt, accelerate private investment in the country, an area that will further spur economic growth.However, beyond the reforms, there should be mechanisms in place to follow up on the business that register, especially the small and medium enterprises (SMEs).There have been reports of companies that register but never get off the ground or fold shortly after beginning operations.Rwanda has more than 1,200 SMEs but most of them face critical challenges such as limited access to finance due to lack of collateral and capacity to prepare bankable projects, which has been responsible for the high rate of business failure.According to the Ministry of Trade and Industry, about 82 per cent of SME start-ups in the country fold in their first year of operations. But, with a clear policy or mechanism on closely following on the business that have registered, this trend can be reversed.RDB should work closely with other institutions involved in this sector. Through creating partnerships with organisations such as financial institutions and business schools, sustainable solutions to such challenges can be sought. And, that way, the desired impact of the various reforms will be guaranteed.
