Rwanda ranked as most competitive in E. Africa

The World Economic Forum, in its global competitiveness index, says Rwanda is the most competitive country in East Africa, the third in Sub-Saharan Africa and has moved up seven places compared to last year’s rankings.The ranking is premised on the country’s Basic Requirements of its macroeconomic stability, health and educational outcomes, according to the report.The rankings are based on 12 pillars divided into three main sub-indexes to measure countries’ competitiveness.These are: Basic Requirements (comprising institutions; infrastructure; macroeconomic stability; health and primary education), Efficiency Enhancers (which includes higher education and training; goods market efficiency; financial market sophistication; technological readiness; market size) and Innovation & Sophistication Factors(consist of business sophistication; innovation).The country displayed strong public institutions and governance indicators, compared to most of the other African countries.The report praises Rwanda’s capacity for innovation as “quite good considering its stage of development.”“As do the other comparatively successful African countries, Rwanda benefits from strong and relatively well-functioning institutions, with very low levels of corruption – an outcome that is certainly related to the government’s non-tolerance policy – and a good security environment,” the report says.“Its labour markets are efficient, its financial markets are relatively well developed, and Rwanda is characterised by a capacity for innovation that is quite good for a country at its stage of development.”The report notes that Sub-Saharan Africa continues to face the biggest competitiveness challenges of all regions with a vast majority of African countries covered in this report falling into the group of least-competitive economies.Out of the region’s 32 countries included in the GCI, only Rwanda, Botswana, Gabon, Namibia, the Seychelles, Mauritius, and South Africa are in the next higher categories.Reacting to the report, the Acting Chief Executive Officer of the Rwanda Development Board (RDB), Clare Akamanzi said the improvement was a result of extensive efforts by government to create a more conducive business environment.“We are encouraged by this ranking, it is a result of extensive efforts by government to create a more conducive business environment, increase innovations, improve the skills of our people through training and higher education and improve service delivery in order to compete globally,” Akamanzi said in a statement received by The New Times yesterday.The top three countries in terms of competitiveness worldwide are Switzerland, Singapore and Finland, respectively.Globally, ranked Rwanda 63 with 4.24 points, ahead of Kenya at 106, with 3.75 points, Tanzania at 120 with 3.60 points, Uganda stands at 123 with 3.53 points, while Burundi stands at 144 with 2.78 points.The scores are measured on 1 to 7 scale.As in previous years, this year’s top 10 are dominated by European countries, including with Switzerland, Finland, Sweden, the Netherlands, Germany, and the United Kingdom.Along with the United States, three Asian economies also feature in top 10, with Singapore remaining the second-most competitive economy in the world, with Hong Kong SAR and Japan, coming in 9th and 10th positions respectively.Rwanda is in the top ten globally in 11 indicators, including days and procedures to start a business, public trust in politicians, Government investment in advanced technology and women in labour force, among other things.According to the report, the greatest challenges facing Rwanda, in improving its competitiveness are the state of the country’s infrastructure, and its low secondary and university enrolment rates.“As we move towards becoming a middle-income country, we will have to address the remaining challenges that are affecting our economy,” the RDB statement added, citing the Public Private Dialogue mechanism, EDPRS, stronger higher learning institutions, and human capacity.The GCI classifies all sub-Saharan economies in the factor-driven and efficiency-driven stages of development, and these two sub indexes capture those elements most critical for improving competitiveness in these stages.It noted though that double-digit inflation in Eastern Africa on the back of increased food prices and higher fiscal deficits/government debt in other parts of the region have led to a deterioration of macroeconomic stability since 2008.It also shows that the region has registered a persistent and worrisome infrastructure deficit: despite gradual improvements in the run-up to the financial crisis, the quality and quantity of infrastructure has largely stagnated at low levels since then, in part due to a decline in investment following the financial crisis.

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Rwanda ranked as most competitive in E. Africa