The Rwanda Development Board (RDB) CEO, Francis Gatare said the annual World Bank/International Finance Corporation Doing Business survey is important to RDB, but their own internal reform agenda is also considerably wider in scope in terms of making Rwanda more competitive.
Rwanda was ranked the 2nd easiest country to do business in Africa by the latest World Bank/International Finance Corporation doing business report, 2016. Rwanda was ranked behind Mauritius (1st) and followed by South Africa in 3rd position. However the country came in at the 62nd position out of all the 189 countries ranked globally. This is a climb of seven places compared with last year’s ranking. The change in the methodology used by the World Bank in establishing such rankings has also affected Rwanda’s more favorable position.
“We do see that Rwanda has improved substantially over time. Over the last 12 years the data we have in doing business is that Rwanda was a country that improved most in Africa, and globally was the second next to Georgia,” Dr. Rita Ramalho, Manager Doing Business unit, World Bank Group, said. Ramalho was leading a World Bank delegation to Rwanda recently to launch the World Bank doing business report and to discuss Rwanda’s performance in the report and the overall implications of the report globally. According to him, Doing Business is measuring business regulations and how they affect small and medium size companies that operate in a country that is owned by its citizens.
The new methodology introduced usually measures with the per capita income as the basis which has an inbuilt bias that makes low income categories reflect into higher cost of doing business the opposite to higher income countries that are reflected well when such a measure is used. The Doing Business report is a very important initiative by the WB which has been creating a lot of interest within the developing world.
“All of us are interested in improving the doing business environment. Rwanda during the last 20 years has been recognized globally as a country which is striving to be a best practice in terms of economic governance,” Rwanda’s Minister of Trade and Industry, Francois Kanimba said.
According to the Minister, Rwanda did the business reforms at a time when the WB doing business initiative ranked the country almost amongst the ten countries where doing business environment was still very bad but over the years the country’s performance has been picking up. The WB has been closer to Rwanda to explain to the country’s experts how this process works. There are a number of key indicators the WB looks at with a lot of technical content to these indicators for someone to improve.
According to the World Bank, 85 developing economies implemented 169 business reforms during the past year, compared with 154 reforms the previous year.