2024-04-08 08:19:48
Thirty years after the genocide, the growth of the Rwandan economy arouses admiration around the world. A real success which does not yet benefit the majority of the population.
The reconstruction of the economy is an undeniable success. The rigorous and interventionist governance of the Rwandan Patriotic Front (RPF) has enabled this small landlocked country to acquire roads, power stations and hospitals essential to development and to return to robust growth. Around 7 to 8% for twenty years. Enough to reduce poverty. It concerned three quarters of the population in 2000, more than half in 2013. But still half today: that is the problem, according to the World Bank which notes that progress has stagnated for ten years.
Poorly shared fruits of growth
The Rwanda is still one of the most unequal countries in sub-Saharan Africa. The fruits of its prodigious growth have difficulty reaching the countryside where the majority of the population lives. The Gini coefficient, which measures inequality, is 0.44. This is the highest in the East African Community after South Sudan. Services and high-end tourism are the new growth drivers, but the essential engine is still agriculture. This is still more than one job in two and almost half of the GDP. Another downside which puts the Rwandan miracle into perspective is that 45% of state revenues still depend on international aid. The government nevertheless hopes to join the club of middle-income economies within ten years.
An insufficiently developed private sector
An ambitious objective for a country still weakened by its stormy relations with its immediate neighbors. Local businesses are increasingly turning to countries where they benefit from the active diplomacy of Paul Kagame, like the Central African Republic, or more recently Mozambique. This mainly benefits companies controlled by Crystal Ventures Limited. A very discreet and very powerful holding company which belongs to the FPR. It is the largest employer after the State. A heavyweight in the construction or security sectors. But a society that leaves little room for competition, private entrepreneurs complain quietly. However, it is the private sector that absolutely must be developed, believes the World Bank, to create jobs and generate more inclusive growth.
Also read: Thirty years of the Tutsi genocide: Rwanda commemorates a past from which “we must learn lessons”
#Rwandas #economic #success #unequal #success