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Invest in Rwanda, A Country With Unconventional Vision And Leadership

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Advertorial by Rwanda Development Board

Since the 1994 Genocide against the Tutsi, Gross Domestic Product (GDP) of Rwanda has risen from $752million to $9.5 billion in 2018, and the GDP per capita has grown from $125.5 to $787 during the same period. Due to Rwanda’s internationally recognized universal access to healthcare policy called ‘Mutelle de Sante’ life expectancy has risen from 29 years in 1994 to 67 years in 2016. Inflation has fallen from 101% in 1995 to 1.1% in 2018 and Rwanda has jumped over 100 places in the World Bank Doing Business Index, today ranking 38th globally and 2nd in Africa.

 Furthermore, with the 9 Year Basic Education policy, Rwanda has seen the average expected years of schooling rise from 6.2 years in 1995 to 11.2 years in 2017. These numbers, both the increases and decreases, are not merely statistics on paper, they reveal a people who have taken the reins of destiny into their own hands. Following the defeat of the genocidal forces by the Rwanda Patriotic Army rebels led by now president, Paul Kagame, many highly qualified development experts believed that the fabric of Rwandan society was irrevocably torn asunder. Over one million people had been killed in less than 100 days, over 3 million had fled the country to refugee camps in Tanzania, Burundi and the DRC (then Zaire), the national treasury was looted and there weren’t even pens and paper in government departments.

 Speaking to members of the Australian chapter of the YPO (Young Presidents Organization) in May last year President Kagame was asked this question, “experts say that a turnaround from a cataclysmic event such as genocide is supposed to take a century or at least a generation, how was Rwanda able to do so in only twenty years”? President Kagame mentioned the main aspects of the Rwandan turnaround; thinking big, having a vision, refusing to get stuck in the status quo, believing in, and having faith in the vision and, lastly, making sure that the journey is inclusive by bringing people in and creating possibilities for them to make their contribution.

 Rwanda does not have the usual ingredients for economic transformation. It does not have a wealth of natural resources such as oil or diamonds, it is landlocked, it has one of the highest population densities in the world. However, Rwanda has a will to build a better, more prosperous nation.

 What Rwanda did was put together a development plan called ‘Vision 2020’. This plan envisioned a Rwanda that was middle-income and knowledge-based. With a GDP growth rate which was dominated by double digits over the last 10 years, we are reaping the fruits of the ambitious plan.

 One of the fruits is the emerging MICE (meetings, incentives, conferences and events) sector. Who could have imagined that 25 years after the Genocide against the Tutsi, Rwanda would become home to one of the most iconic and most expensive buildings in Africa, the KCC (Kigali Convention Center)? The KCC, a venue that includes a five-star hotel and conference facilities that can host over 5,000 delegates, will this year host, among other world class events, the Commonwealth Heads of Government Meeting (CHOGM). To date, KCC has hosted the African Union Heads of State summit, the Transform Africa summit as well as a myriad of regional and international events and conferences.

 The KCC has not been the only such ‘out of the box’ investment that the Government of Rwanda has made to create value where no one expected. A decade or so ago, the Government insisted on building the country’s very first five-star hotel, the present-day Kigali Serena hotel. Our development partners baulked at the investment, saying that there was no need for such a high-end facility. The Government, believing in its vision, went ahead and built the hotel thereby creating the anchor accommodation facility that opened Rwanda to the opportunity of becoming a regional destination for business travel and MICE. The country now has five 5-star hotels and more are opening up this year. Furthermore, high end accommodation establishments have opened their branches across different parts of Rwanda. To create the ecosystem that a vibrant MICE sector needed, the national carrier Rwandair was established, investments in skills and capacity building were made and the private sector was encouraged and supported to invest in the sector.

 Because the Government refused to take a laissez-faire attitude to the development of the MICE and the overall tourism sector, investments that we have registered in the sector as the Rwanda Development Board have totaled $1.5 billion since the year 2000. Hotel rooms have increased from 623 in 2003 to 14, 866 in 2018, tourism revenues have jumped from $131 million in 2006 to over $300 million with MICE tourism revenue numbers growing from inconsequential numbers in 2000 to $55 million in 2018. We expect that all the numbers will grow by at least 10% per year and projections show that the tourism sector will be worth $800 million by the end of 2024.

 This might seem ambitious, but we believe in our vision and we are actively working towards fulfilling it. That is why we partnered with different partners, including but not limited to Arsenal FC and Paris Saint Germain, English and French football teams respectively, to market Rwanda as a destination for tourism, MICE and investment. That is why Rwandair is increasing both its fleet as well as its destinations in Africa, North America, Europe and Asia and that is why we are currently building a new international airport in Bugesera, on the outskirts of Kigali, in partnership with Qatar. In addition, we have taken an active role in building an Africa that freely trades with itself through the African Continental Free Trade Area (ACTFA) and internally we have reformed both our business environment and visa regimes.

The business community has followed our lead. Last year, we registered over $2.4 billion in investments on the back of over 8% GDP growth. Leading global businesses such as Volkswagen, Motorola Solutions, Andela and Radisson today provide jobs to young Rwandans graduating from global institutions of learning that are based in Rwanda such as Carnegie Mellon University. In addition to the recent opening of the first smartphone factory by Mara Phones; companies including Volkswagen (in partnership with Siemens), Ampersand, and Safiride are also rolling out environment friendly transport solutions through electric vehicles and motorcycles on the street of Kigali and other parts of Rwanda.

 When we tell businesses that Rwanda is the right place to invest in, we are confident that they will find the right environment to thrive. Why? Because we built that environment.

Mr. Zephanie Niyonkuru is the Deputy Chief Executive Officer, the Rwanda Development Board. The Rwanda Development Board is a one stop shop for investors, bringing business registration, investment promotion, tourism, ICT development, SMEs, human capacity development, privatization and specialist agencies under one institution.

Zephanie Niyonkuru

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The Secret Formula For Changing Lives In Africa

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When Covid-19 struck, Coca-Cola, which has dominated FORBES’ lists as one of the world’s most valuable brands and innovative companies, deployed its resources and leveraged its distribution networks to make a difference in Africa’s economies and communities. Here’s how they did it.

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Egypt’s Blueprint For A Better Tomorrow

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Through the AfCFTA and their own Vision 2030 blueprint for economic enhancement, Egypt is preparing to emerge as a world leader in the global economy.

“We have a lot of determination and we own a lot of capabilities and natural resources that can put us in the lead in the world.”

H.E. Abdel Fattah President al-Sisi

            As Egypt embraces the initiatives behind the African Continental Free Trade Area Agreement (AfCFTA) and H.E. Abdel Fattah President al-Sisi ‘s Vision 2030, the country is on track to completely revitalise its economic landscape. Vision 2030, Egypt’s blueprint for transforming the economy into a global powerhouse, is focused on specific pillars that are aimed at empowering sectors and enhancing the country’s potential through youth development, technology, ICT, urban development, industry and infrastructure. On Egypt’s efforts to become an economic world leader and its commitment to the AfCFTA agreement, H.E. President al-Sisi said, “We have a lot of determination and we own a lot of capabilities and natural resources that can put us in the lead in the world.” Vision 2030 seeks to take advantage of Egypt’s natural resources and its key geographical location in Africa to remove barriers to intra-African trade and increase the investments across the continent. Adherence to the agenda will improve connectivity to link the continent by rail, road, sea and air and will boost trade, spark growth and create jobs.

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In order to realise these goals, Egypt must first prepare its most valuable asset: its people. Egypt has a growing young population, where about 62% of the population is under age 29. This creates near limitless opportunities as the country strives to penetrate new markets and develop its “Made in Egypt” brand. Not only that, but Egyptian youth are also unique in their worldview. The post-revolution generations in Egypt are empowered with visions to change the future of their country, and companies are meeting this passion with training opportunities and education. Mohamed Shalbaya, CEO of PepsiCo, says, “The DNA of Egyptians, especially after the revolution, is ‘I want to achieve something’. Once you give them the right education, the right training, they excel. In the past two, three years, we have had 33,000 training hours for employees, and that gives us the edge because once they train, they can excel. Generation Z wants to be entrepreneurs, and we help them with that.”

In addition to training, many initiatives to nurture ideas and invest in talent are in place, such as innovation centres and incubators for entrepreneurial growth. Hala El Gohary, CEO of ITIDA, says, “In 2013, ITIDA established TIEC: the Technology, Innovation and Entrepreneurship Centre. Its main mandate is to develop the entrepreneurship ecosystem by developing talent from the universities, giving them the basic education around how to create their own companies and to develop business plans.” Technology centres exploit the youth’s propensity for technology, creating opportunities to innovate business and penetrate new markets via the internet.

The TIEC also houses an incubator and an accelerator to help establish start-ups in the country. Gohary continues, “President al-Sisi launched a programme for capacity development for 10,000 African youth and 100 start-ups. ITIDA has been mandated to deliver this initiative. Last year, we worked with about 3,000 youth out of Africa and Egypt and we delivered 30 start-ups. The idea is to have these 3,000 make their own company, and some of them did. In the first year, we helped the most prominent start-ups showcase their products.” With a driven and dedicated youth that are ready to become entrepreneurs, Egypt’s future is in good hands.

Technology development and the ICT sector not only appeal to the capabilities of Egypt’s youth but have also proved to be invaluable in the country’s human capital development endeavour. Egypt has been working diligently toward innovation and digital infrastructure for the benefit of all. H.E. Amr Talaat, Minister of ICT, says, “What is driving the telecom growth are internet penetration, more fixed broadband and more households with a computer. As for the IT sector, that’s a transformation on which Egypt is embarking impressively.” H.E. Talaat continues, “We need to create an ecosystem that encourages innovation and entrepreneurship. We are inviting start-ups into ideation camps, matchmaking forums, creating innovation hubs across the campuses of universities so that students can form teams, aggregate their solutions and focus on specific goals.” A strong digital infrastructure opens many opportunities and plays an innovative role in the overall wellbeing of the African continent.

In terms of urban development and infrastructure enhancement, the Central Bank has launched an EGP 50 billion programme to aid real estate developers to finance housing units for middle-income families. As the sector influences other industries, supporting real estate development and the local industry is one of the government’s priorities. For the 2020/2021 fiscal year, Egyptian government investment expenditures have been increased from EGP 150 billion to EGP 230 billion to expand various development and service projects nationwide. The New Urban Communities Authority fiscal budget has also been increased, amplifying construction company expansion.

The goals of the AfCFTA and Egypt’s Vision 2030 is to empower African industries, accelerate intra-African trade via a continental geographic zone in order to boost the continent’s position in the global market. Overall, the initiatives seek to strengthen the common African voice in global trade negotiations, a position that is long overdue. The Minister of Industry and Trade, H.E. Naveen Gamea, says, “The AfCFTA is a big step towards the economic integration through the actual liberalisation of trade, as it achieves major strides in the rates of economic development, and regional and continental integration through the productive and commercial integration based on competitive edges and building value-added chains across the continent. Egypt is keen to achieve tangible results in the fields that can lead to the regional economic integration and development, connecting civilisations and cultures of the African countries and deepening the cooperation with the international partners, as well.”

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Focus on Namibia: The Vision Which Is Breaking Down Boundaries To Expand Namibia’s Infinite Horizons

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On 21 March 2020, Namibia’s President Hage Gottfried Geingob was sworn in for his second term on the very same day the nation celebrated its 30 years of independence. Present at the celebration, a sure sign of Namibia’s peaceful and stable governance since independence, were the nation’s two prior presidents His Excellencies Dr Sam Nujoma and Dr Hifikepunye Pohamba, as well as the Presidents of Angola, Zimbabwe and Botswana. A grand and worthy augury for the future of continued progress, collaboration, growth and freedom for the nation.

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Indeed, under President Hage Gottfried Geingob’s guidance, Vision 2030, the nation’s long term plan for industrialisation, is taking a very defined shape. Aided by the complementary Harambee Prosperity Plan fast-tracking the nation’s development, Namibia’s fifth National Development Plan  (NDP5) highlights four pillars in order to target growth “In our development plan, we are trying to create an inclusive financial sector,” Hon. Carl-Hermann Gustav ‘Calle’ Schlettwein, Minister of Agriculture explains. An emphasis on education and a focus on SME development has been key to this inclusivity. “We allocate quite a few funds to our training programmes for SMEs,” states Baronice Hans, MD of Bank Windhoek. In recent years, Namibia’s Ministry of Education has highlighted the importance of vocational training. “At Letshego Bank, we are dedicated to improving livelihoods and promoting financial literacy initiatives,” claims Ester Kali, CEO of Letshego Bank. CEO of the Development Bank of Namibia, Martin Inkumbi details the Bank’s dedication in supporting the nation’s youth: “We have introduced a special lending product for targeting youth.”  This, combined with a dedication to improving ease of doing business has been crucial to growing Namibia’s industries. “We have very favourable tax laws as well as lots of incentives,” confirms Patty Karuaihe-Martin, CEO of NamibRe. Vetumbuavi Mungunda, CEO of Standard Bank concurs, “Namibia has the key pillars of stability that are imperative for any business. There is political stability, social stability, a strong rule of law and a good judicial system.”

“We will live with the concept of ‘unity in diversity’ with diverse languages, cultures and religions. We live in harmony and celebrate each other with love. We welcome people from other countries with respect and care that is our valuable tradition as Namibians.”

President Hage Gottfried Geingob’s inauguration speech, March 2020

Namibia is also extremely well established within the global economy with excellent market access from an export point of view. It is a member of the Southern African Development Community (SADC) and the Southern African Customs Union and has preferential trade agreements with SADC, the Common Market for Eastern and Southern Africa (COMESA) and East African Community (EAC). With  borders on Angola, Botswana, South Africa, Zimbabwe and Zambia, the role of transport and logistics in Namibia has also been key to its economic development. Strategically located half way down Namibia’s coast, Port Walvis Bay, Namibia’s largest commercial world-class deep-water port, provides the SADC region with the quickest and shortest route to Europe and North and South America and a gateway for export and import of goods by neighbouring countries. “The government has invested quite a lot of money to extend and put a container terminal in Walvis Bay so that this hub can handle more containers and enhance trade,” reveals Hon. John Mutorwa, Minister of Works and Transport.

Awarded top position for the best roads in Africa by the World Economic Forum (WEF) for several consecutive years, Namibia’s road network has also been key in its contribution to the economic growth of other SADC countries. “We have about 47,000 km of road network of which 9,000 is bitumen road. In addition to that, we have four transport corridors, which are mostly serving our neighbouring countries and, by implication, the rest of Africa,” confirms Conrad Lutombi, CEO of Roads Authority of Namibia.  Namibia’s ICT instrastructure, ranked one of Africa’s best, provides a different sort of connectivity to neighbouring countries.  “Telecom Namibia also provides data connectivity to neighbouring countries via the SAT3 and WACS submarine cables,” explains Armando Perny, Acting CEO of Telecom Namibia.

As part of Vision 2030, Namibia is also determined to promote its Blue Economy Strategy 2017-2022 which addresses the development of marine mining, tourism, port infrastructure and services in an ecologically sustainable manner. . “We have a very long coastline and a very large maritime area which has a lot of potential,” states Immanuel Mulunga, MD of NAMCOR. Currently, Namibia’s fisheries contributes to about 15 % of total exports and is the country’s second biggest export earner, after mining and the third largest contributor to GDP. Namibia is also world leader in recovering diamonds from the sea. “Namibia has been a diamond mining economy for a long time,” elaborates  Tom Alweendo, Minister of Mines and Energy . “We are currently exploring the sea through the development of unique technology.” Indeed, in May 2019 Namibia pioneered a distinctive form of marine diamond recovery which is also highly environmentally sustainable.

Namibia has a long history in mining and is replete with several minerals. “Namibia is a big country with a low population and lots of natural resources. Name it and we have it: minerals, fisheries, tourism, natural resources,” concludes Reinhard Gärtner, CEO of Namibia Civil Aviation Authority (NCAA).Today, due to first-class infrastructure and the ease of doing business, it is the nation’s best performing economic sector through the production of diamonds, uranium, copper, magnesium, zinc, silver, gold, lead, semi-precious stones and has the potential to lead the way towards the Fourth Industrial Revolution. “The great potential the country has as far as mining and mineral resources are concerned is evident,” claims Mark Dawe, Country Manager of B2Gold Namibia. “Everything is about re-establishing a natural environment.” 

Farming also supplies nearly two-thirds of the population with an income, undeniably highlighting the importance of agriculture for Namibia’s economy. Ian Collard, CEO of Namib Mills states: “Namibia is currently a net importer, so we grow our business based on import substitution.” In February 2020, Namibia became the first African country to export red meat to the United States with state-owned Meatco’s shipment to Philadelphia of 25 tonnes of beef. “We penetrate the most advanced markets, like the US and China because we have made serious investments in our infrastructure,” declares Mwilima Mushokabanji, CEO of MeatCo.

Namibia’s horizons are limitless and today provide nation and continent with the opportunity for expansion as its policies and strategies work to crack open the nation’s immense capacity for potential and possibility.

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