Rwanda still needs foreign aid—govt

To trigger economic development and achieve the long term development goals, Rwanda still needs foreign aid, a government official said.

Wednesday, September 26, 2007

To trigger economic development and achieve the long term development goals, Rwanda still needs foreign aid, a government official said.

John Rwangombwa, secretary general Ministry of Finance and Economic Planning, said the money is needed to speed up the implementation of the Vision 2020 pillars.

Some of the pillars of this vision include development of a credible and efficient state governed by the rule of law. Others include human resource development in line with turning Rwanda into a prosperous knowledge-based economy and development of a basic infrastructure, including urban planning.

Developing entrepreneurship, the private sector, modernisation of agriculture and animal husbandry will also be addressed.

According to Rwangombwa, the projects need support from development partners if Rwanda is to achieve its development goals.

The secretary general’s comment comes shortly after panellists on a popular Sunday talk show—Crossfire—on Contact FM, September 16th, were critical of government depending on foreign aid. The panel of journalists argued foreign aid stalls development, benefits donors and often locks the recipient states in a vicious circle of poverty.

Instead, the panel encouraged governments to create a good investment climate to attract more tangible investments.

"It is better to hold a small slice of a growing pie than holding a big shrinking one,” Andrew Mwenda, a Kampala-based journalist said.

Rwangombwa still insists aid can benefit Rwanda. "We still need aid,” he said. "It has helped us to achieve government programmes. We cannot do that without aid.”

Rwanda is one of the poorest countries in the world with 64 to 65 per cent of the population living below the poverty line. The government believes with aid, the poverty gap can be closed.

This is possible with budget support or sector budget support.

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