Page 34 - Nile Explorer Issue 007

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mum wage and social security regula-
tions are in force, and the four prewar
independent trade unions are back in
operation. The largest union, CES-
TRAR, was created as an organ of the
government but became fully indepen-
dent with the political reforms intro-
duced by the 1991 constitution. As secu-
rity in Rwanda improves, the country's
nascent tourism sector shows great
potential to expand as a source of
foreign exchange.
Foreign assistance continues to expand
Rwanda’s economy by investing in
programs such as education, youth
workforce development and the coffee
sector. Rwanda benefited from foreign
assistance since the genocide, with 30 to
40 percent of the nation’s budget
coming from aid. The Rwandan govern-
ment’s initiative, Rwanda Vision 2020, ments often been described as miracu- terms of investment
focuses on long-term goals to grow lous. At the center of the tiny country’s opportunities, value
from an agricultural and subsistence recovery is President Paul Kagame, who for money and
economy to a diversified economy less led the revolt that ended the genocide. economic growth.
dependent on foreign aid. Kagame has led his country from Kigali convention
centre.Located in
Struck by economic disadvantages, penury to prosperity. His government The statistics explain neighborhood of
why Rwanda has
including high unemployment and has co-invested alongside private capital become Africa’s Kigali called
fluctuating prices in coffee and tea to reduce risk and create a more appeal- poster child for Nyabugogo.
exports, Rwanda hopes to transform ing proposition. progress. The country has reduced
into a middle-income country and In recent years, at business summits reliance on donations and currently,
knowledge-based society. across the world, it’s not uncommon to domestically funds about 84% of the
Rwanda Vision 2020 promotes macro- hear such praise about Rwanda. Various budget up from about 36% two decades
economic stability and wealth creation speakers have singled it out as one of the ago. In the last fiscal year (2017-2018),
to reduce dependency on aid and devel- emerging economies to look out for in the economy grew by 8.9%.
op the private sector. The initiative will terms of investment opportunities, The World Bank ranked Rwanda 29th
expand Rwanda’s domestic resource value for money and economic growth. globally in its 2018 Ease of Doing Busi-
base and increase its exports and The statistics explain why Rwanda has ness Report and put it second in Africa.
promote diversification in non-tradi- become Africa’s poster child for prog- The index tracks business efficiency
tional exports. ress. The country has reduced reliance across the world.
Rwanda recognizes that it must improve on donations and currently, domestical- Many African economies are known for
education and health standards to ly funds about 84% of the budget up distinct exports or income streams that
provide an efficient and productive from about 36% two decades ago. In the have remained unchanged for years.
workforce. Entrepreneurship is crucial last fiscal year (2017-2018), the econo- Rwanda chose a different path by
to Rwanda’s economic success. Instigat- my grew by 8.9%. embarking on a concerted effort to
ing wealth, employment and education- The World Bank ranked Rwanda 29th diversify exports and revenue streams.
al services in sciences and technology globally in its 2018 Ease of Doing Busi- This approach has seen services become
will create a new class of entrepreneurs. ness Report and put it second in Africa. the leading driver of gross domestic
Barely 24 years after the horrific geno- The index tracks business efficiency product growth in the last three years,
cide against the Tutsi, when the East across the world. taking over from agriculture.
African nation lost over a million lives Many African economies are known for
and the devastation left a trail of trauma distinct exports or income streams that Diversification has been achieved, in
and economic ruin, have its achieve- have remained unchanged for years. part, through an increased focus on

34 | The Nile Explorer 007