When the going gets tough, the tough get going

The year 2012 will always be remembered by many Rwandans, not because a household survey indicated that 1,000,000 Rwandans moved out of poverty in less than five years, but also as a year when donor budget support was frozen.The donor community claimed that the country is supporting M23 rebels in the eastern DRC.What the country or any Rwandan needs now is not a clamor for budget support or engaging in the endless arguments about how to get out of the tough period, but to develop tough strategies to forge the way forward. Whether you are in tough times or not, we all need to learn how to cope by innovating new plans, B and C, meaning new challenges should summon new approaches.Recent central bank figures indicate that the Rwanda economy grew by 7.3 per cent last year, slightly below the target of 7.7 per cent, while Rwandan franc depreciated against the US dollar by 4.5 per cent over the same period.Though this may not necessarily be attributed to aid cut, it is likely to kill domestic credit to maintain or build foreign reserves that currently stand at 4.8 months of imports. Trade deficit was narrowed to $417.3m in 2012 from $705.1m in 2011. However, central bank says balance of payment provisional figures show that the country ended 2012 with a negative balance of payments, due to the decline in budget support.Fear among populaceThere is fear among many Rwandans serving in public offices because of the ongoing ‘cut and chop’ reform process to fit in their expenditures. In such times, that is when competition becomes tougher as businesses try to retain customers as well as ensuring you are not axed because you don’t perform or for other reasons.These public firms have panicked and started cutting costs and headcount and already are not sure which position to retain or which plan should be short or a long-term as earlier planned.As a company, this is the time to be more responsive to customer needs and, on individual level, it’s no harm and not too late to ride out tough times by adopting an austerity culture. Share ideas with friends in the same profession or business and learn from perfect expertise each offers so as to grab the opportunities that such periods present.Some of my friends working in government or public institutions have confessed to be in state of fear, haunted by the day they will be fired in the name of reform. Hope, strong foundationRwanda’s economy has been growing steadily even when the global economy was weak at an annual growth rate of six per cent, with enough liquidity in the system becoming critical for private sector growth. Domestic credit increased by 82.3 per cent of which credit to the private sector increased by 33.9 per cent by end of 2012 against 28.4 per cent in 2011. Loans disbursed last stood at Rfw498.9b against Rwf358.9b in 2011.A positive impact that could be explored beyond our borders is the steady and consistent promotion of entrepreneurship and private sector development the country has been nurturing in recent years.The exchange rate is relatively stable and inflation contained at below 10 per cent, while it spiraled in neigbouring countries. We have seen lending interest rates reducing from 19 to 17 per cent last year.Annual headline inflation has decelerated to 3.9 per cent in 2012 from 5.9 per cent in June 2012 and 8.3 per cent in December 2011.According to the World Bank Doing Business Report, Rwanda is the second most-improved nation globally and the top improved country in sub-Saharan Africa since 2005. Through safety and security, zero-tolerance to corruption and a stated goal to eliminate foreign aid (currently about 40 per cent of its budget), it is projected that the country will grow by 7.8 per cent this year, making it the ninth fastest-growing economy in the world.Riding on this strong foundation and good reputation Rwanda has demonstrated in terms of aid effectiveness, the country will, without doubt, end aid dependency in the not so distant future.Brand building It is not our role to determine how many people will be impressed, convinced with the data we give, but feed the world with latest information about Rwanda.Latest data from central bank indicates that the country has recorded an increase of 12 per cent in tourism receipts from $251.8m in 2011 to $281.8m in 2012.The most impressive aspect is that a big chunk was dominated by leisure at 46 per cent and business travel 37.3 per cent. foreign direct investments increased by 50 per cent amounting to $159.8m in 2012, driven by new investments in the energy and banking sectors.The important thing to bear in mind is that nation branding has been left to top managers, government officials, marketers, the Rwanda Development Board, yet the benefits of a strong nation’s brand can be profound and felt right from individual levelAs we have seen, these benefits are economic; that is in terms of foreign direct investment and as a revenue stream for the nation’s tourism.Lately, Rwanda has been ranked the best place to live, it is also a secure and safe place among other attractions. These are realities and perceptions that are strong foundations to move forward in taking diversified paths in nation branding.The writer is a communications officer at NAEB