By Sotunde Busayo
Last week, the “Doing Business Report 2012”, an annual report released by the World Bank ranked Rwanda as the third business friendly nation in Africa after Mauritius and South Africa.
This great development is as a result of various reforms embarked on by the country on yearly basis.
In Rwanda, all institutions come together to work on previous reforms to see where there are constraints and focus on streamlining on wherever necessary.
Rwanda moved from its position of 143rd position globally in 2009 to 67th position in 2010 and then 45th position in the present report.
The Doing Business Report is based on the criteria in starting business dealings with construction, permit, getting electricity, registering property, getting credit, employing workers, protecting investors, enforcing contracts, taxes, trading across borders and resolving solvency.
The report indicated that in terms of the access to credit by small business, the country moved 29 places to position 8th globally on account of the improved banking practices, which helped keep tab on loan defaulters and remove non-performing loans. To improve on this, Rwandan Central Bank will increase the lending to the private sector by 19.2% this year but at a cheaper cost and at levels that do not increase inflation.
According to Mimi Ladipo, World Bank Country Manager for Rwanda, this year’s report indicate an intangible improvement that the world could understand Rwanda better.
People who do not know Rwanda or those whose image goes back to only 1994 (genoside) get to know the real Image of Rwanda and understand the remarkable achievement that the government has had through this report.
The implication of this development from the World Bank report on Rwanda is that when local businessmen witness the reform, they ultimately increase their appetite to invest because they assured of support.
“This indicate that there is something worthy evolving in Rwanda, therefore we can expect the number of foreign investor to increase,” Faustin Mbundu, the Chairman of Private Sector Federation observed.
Apart from this, the report from the World Bank serve as a great endorsement that will improve the country’s credit standing among local and foreign investors, especially in terms of guaranteeing a safe, stable and functioning judiciary.
Above all, this landmark is the result of the fulfillment to the aspiration of the seen people of Rwanda to build an efficient economy especially after the economy and other institutions in the country collapsed in 1994.
“The performance by several sub Saharan countries indicate that hue region has come of age by tremendously improving its business climate for massive investment,” Robert Murilo, one of the author at the Global Indicators and Analysis department of the World Bank added.