Private Sector Dvpt cluster met to review the sector’s performance and set 2012/2013 priorities
KIGALI-5th April, 2012, Members of the Private Sector Development Sector Working Group (PSD SWG) met to analyze implementation of 2011/12 EDPRS priority actions and to revise priorities for the coming fiscal year 2012/13.
Under the EDPRS, the PSD SWG operates towards two strategic outcomes; an enhanced business climate and increased contribution of strategic exports to GDP. The achievement of these outcomes is measured through five EDPRS indicators notably Index on Business Environment, Investor Perception Index score, Percentage of investment to GDP, Revenue from goods exports in USD millions, Revenues from tourism in USD.
Talking to the press, Hon Minister François Kanimba pointed out that a tremendous progress has been made in terms of enhancing the business climate increased contribution of strategic exports to GDP.
“The World Bank Doing Business Report 2012 ranked Rwanda the 45th easiest country to business in, an impressive ascent from 58th in 2011 and 167th just three years ago. In fact, Rwanda has been hailed as the second most reformed country worldwide over the last six years, with Georgia taking the top spot”. The Minister stressed adding that Rwanda is now the 3rd best placed country in Sub-Saharan Africa in the rankings (behind South Africa and Mauritius) and number one in East Africa.
(L-R) Mr Jolke Oppewal Co-Chair of PSD Cluser & Hon. Minister Kanimba François during the JSR Meeting.
The two remaining indicators towards enhanced business climate have also marked achievements. The score for the Investor Perception Index 2011 is 72.2 – an increase of 1.2 percentage points on 2010. Scores of four out of eight themes rose, most notably finance which was rated at 62.8 (an improvement of 17 percent on 2010) and the legal framework, which soared to 76.5 from 69.4 in 2010 (a 10 per cent increase). Scores for three themes dropped slightly, and trading across borders fell 12 per cent to 60.5, making it the most problematic area for investors.
Governance remains also the least problematic theme for investors despite the score falling 3 per cent to 83.3 out of 100. Despite the strong improvement in the indicator of finance remains the second most problematic area in 2011, domestic resources also fell marginally to 65.3.
Besides, presentation made during the meeting shows that Investment has remained within the 20 – 25% of GDP range during the period 2007 to 2010, and is expected to reach 25.1% in 2011/12.
Talking about the progress made in terms of contribution of strategic exports to GDP, the Minister stated: “Exports of goods grew by an average rate of 12.9% between 2007 and 2010, and in 2011 increased by over 52%, they remain dominated by traditional exports of tea, coffee and minerals, which contributed 77% of all exports in 2011. Goods exports covered 27% of goods imports in 2011, compared to 30% coverage in 2007 while Tourism remains Rwanda’s main foreign exchange generating income, aside from foreign aid”.
According to the report presented, tourism receipts totaled $252 million in 2011, compared to total revenues in 2010 of around $200 million, which is a remarkable increment of 12.6%.
The Private Sector Development Sector Working Group set key target among others for 2012/2013: 1,200 start-up businesses supported technically and financially through Hanga Umurimo programme, to put in place Infrastructure of pilot industrial park (Phase 1 complete (50ha) and expropriation of land for remaining three parks), to establish and operationalize the body of insolvency practitioners, to ensure a more efficient Public Private Dialogue (PPD) in the implementation of business reforms.