WB report indicates Vision 2020 is on course

The latest World Bank Doing Business report, that shows Rwanda making further gains on reforming its business landscape, is a result of the relentless efforts in line with the country’s transformation agenda. Rwanda’s target to turn the economy into a middle income status by the year 2020, entails making wide ranging reforms akin to a complete makeover of its entire socio-economic fabric. 

Saturday, October 22, 2011

The latest World Bank Doing Business report, that shows Rwanda making further gains on reforming its business landscape, is a result of the relentless efforts in line with the country’s transformation agenda.

Rwanda’s target to turn the economy into a middle income status by the year 2020, entails making wide ranging reforms akin to a complete makeover of its entire socio-economic fabric. 

The latest Doing Business report puts Rwanda on top of the charts in East Africa. It also means that Rwanda is now firmly in the envy list of the world’s top reformers. Such ranking is a vote of confidence as well as a demonstration that the Vision 2020 is very likely to be achieved.

Investments are flooding in again after the slump last year, following the Global Economic Crisis.

Notwithstanding a challenging global environment for Foreign Direct Investment(FDIs), if the deals signed during the course of the last 3 months is anything to go by, there is an added optimism that,  by bringing in US$550 million, the target set for recovering last year’s lost ground, will be met this year.

There are very clear indications that this year will be one of the best for Rwanda in as far as FDIs is concerned.

When an institution such as the World Bank says something as critical as favourable  investment climate in any particular country, it is worth noting that the "who is who” in the world of  business,  are naturally bound to sit up, listen and take note.

Doing Business 2012 is the ninth in a series of annual reports investigating the regulations that enhance business activity and those that impact it in various ways.

The reports give quantitative indicators on business regulation and the protection of property rights that can be compared across 183 countries. Regulations affecting 11 areas of the life cycle of a business are covered.

Critical issues for investors such as starting a business, dealing with construction permits, energy availability, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, closing a business and employing workers are all critically analyzed.

The indicators are used to analyze economic outcomes and identify what reforms of business regulation have worked, where and why. In short, the report forms some kind of due diligence an investor needs before making that very delicate final move of investing any dollar as FDI into any country.

For Rwanda to ride on top of the rankings in the world is no easy feat by any measure, especially if you consider its dark past. Rwanda has come a long way to the peak. With such a huge boost as a top destination for businesses, the year 2011 presents signs that aspirations enshrined in Vision 2020 are very likely to be met if not surpassed.

The author is an editor with The New Times
fredoluoch@yahoo.com