As we draw an end to 2020 and look forward to 2021 with a renewed sense of optimism and hope towards a post Covid-19 world, our focus needs to be set more than ever on future-proofing an economy.
For an economy like Rwanda which was experiencing an economic and social boom prior to Covid, this is even more critical since it needs to regain its momentum towards achieving its long-term goals and vision.
There is no doubt that Rwanda’s economic vision of becoming one of Africa’s main hubs is attainable and the post-Covid recovery needs to be intrinsically tied to this vision which was already being achieved. Through our experience of working with 10 different countries on building economic resilience, we strongly believe that the strong fundamentals in Rwanda bode well for its future. However, there is no room for complacency, and we believe that the following 4Ts should be central to the efforts of future-proofing the economy.
Transformation
Rwanda is by far a success story in transforming itself and its economy, however this definitely needs to continue and progress into the future. By embracing regulatory innovation, we believe that Rwanda can carve out new economic niche sectors which will attract investment, jobs, growth and development. We both hail from the island of Malta, a small island situated between Italy and Libya. With no natural resources, we have successfully built a well-diversified economy based on the power of regulation and legislation. Today, we have niche sectors including pharmaceutical manufacturing, medical marijuana processing, aviation and maritime registers, financial services and online gaming all built on attractive laws and tax systems. With the evolving landscape driven by the African Continental Free Trade Area and also in digital tax; the need to transform to continuously transform present economic sectors as well as carve out the forthcoming ones, cannot be underestimated.
Technology
Covid has definitely accelerated the adoption of technology by individuals, firms and governments. For an economy that has already embraced and understood that technology will provide the right competitive advantage, the increased adoption of technology will not come as a surprise. Going forward, authorities need to ensure that the digital transformation deepens and that the vision is built around becoming a digital society whereby community life, business life and also life as citizens become completely intertwined. Where possible, blockchain technology needs to be adopted by the public service to ensure an added level of trust, efficiency and also a signal that Rwanda is digital to the core. All sectors have the potential of embracing technology including agriculture and the coming together of AI, IoT and blockchain can usher in a digital revolution. This will also support the establishment of a strong innovation ecosystem which will attract start-ups as well as researchers in developing new products and services.
Talent
Sustaining the capacity of human talent is critical to any economy and as the world continues changing requiring new skills and talents, education will remain as the strongest policy to build economic social development. Building the right capacity and skillsets of present and of the future workforce is central to any economic recovery and strategy. This needs to include the full spectrum including the current workforce to embrace tomorrows skills. Capacity-building within the public service and regulators will be key in sustaining the attractiveness of a jurisdiction and economic hub. Tax policy can also play a key role in attracting foreign talent for knowledge transfer which can be an important catalyst in building and sustaining home-grown talent. The workforce of the future is changing rapidly together with the requirements needed and this needs to be reflected in the educational systems and structures in order to truly future proof an economy.
Transition
Economies and countries need to continue transitioning into new forms required to remain competitive and attractive. For more than a decade, Rwanda has taken a proactive approach and put environment and climate change at the heart of all the country’s policies, programmes and plans. It was one of the first countries to ban plastic bags, for instance. And its commitment to nationwide landscape restoration is such that every year, Rwandans plant millions of trees to protect the country’s forests, rivers and wetlands. This transition needs to be sustained as well as the transition to become an innovation-driven economy. The synergies exist between different sectors and policies to ensure that technology is adopted as a key driver of a green economy which can also support the social development of the country.
It is true that the past year has derailed and set-back economic momentum across the globe. However, as the year draws to an end, we need to look forward to the forthcoming 12 months with a renewed sense of hope. Economic momentum will pick-up and a recovery will undoubtedly ensue. The 4Ts outlined above should serve as guiding principles.
The writers are founding partners of Seed, a research driven advisory firm based in Malta, Europe.