Editorial | Lessons from Rwanda

Rwanda, that African country that was rocked by genocide in 1994, has rolled out its first ‘made in Rwanda’ Volkswagen motor car, showing the world how a wounded country can recover in 25 years.

German car maker Volkswagen, the largest in Europe, hopes to produce up to 5,000 cars annually from the assembly plant they have set up in Rwanda.

Volkswagen explained recently why it made the decision to invest in Rwanda.

“We chose Rwanda because there is political stability, zero tolerance to corruption, and a growth rate of seven per cent. It is a young and tech-savvy population,” said one of the company’s executives.

Decision-makers are generally attracted to a country where there are opportunities to make money. That’s the bottom line. However, they begin by assessing the attractiveness of a country by considering a range of characteristics.

It would do well for our local politicians to pay particular attention to the areas of priority that would turn on the investment spigot and let the dollars flow through.

Jamaica has been struggling over these many years to experience real growth mainly because of crime, poor management, and crippling debt. What has eluded us was happening in other countries like Rwanda, as well as in Singapore, and in the nearby Cayman Islands. In all countries that are now moving forward, a low-corruption environment, low crime rates, stability, an educated workforce, and business friendliness are some common characteristics.

Here’s a country that experienced genocide on a massive scale, with the records showing that in a mere 100 days, nearly one million people were slaughtered and as many displaced, causing destruction on a massive scale. This investment by Volkswagen is another phase in Rwanda’s economic transformation, which has been taking place since 2000.

Reports say that a number of the vehicles that will be assembled there will be used in a new community car-sharing initiative, whereby the cars are “rented” via an app and returned when the driver has finished using it.

AFRICA’S SECOND-FASTEST-GROWING ECONOMY

Although one of the world’s poorest countries, Rwanda is ranked the second-fastest-growing economy in Africa after Algeria. Additionally, the World Bank named the country first in the ‘Ease of Doing Business’ list largely because it has a well-organised and efficient public sector.

Between 2001 and 2014, the Rwandan economy recorded about eight per cent growth per annum. Growth was driven by investments in agriculture, energy, infrastructure development, construction, mining, and tourism, with the result that an estimated one million people have been lifted out of poverty. There has been some slowing down, but the surge to boost development continues to be evident.

It is a fact that Rwanda’s growth has been helped by the billion dollars in foreign aid and development assistance. The country is still poor as many of its 12 million people eke out a living from subsistence farming in rural communities.

The Rwandan model is not perfect, for there are still many challenges faced by the country. However, if a country like Rwanda, which has been ravaged by war, can rise from the ashes, we must ask ourselves this question: Why is Jamaica still poor?

Should we take comfort from the slight improvements made over the last few years and hope that a brighter day is ahead?