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FORBES AFRICA 10th ANNIVERSARY: Towards The Next Decade

With reset bilateral relations, the hill country of Rwanda is attracting fresh interest from French business. 



In May, French President Emmanuel Macron’s two-day trip to Rwanda was hailed as historic in helping reset relations between the two countries.



During the visit, Macron acknowledged France’s role in the genocide against the Tutsis in Rwanda in 1994 that left over a million dead. “France has a role, a history and a political responsibility in Rwanda,” he said in a landmark speech delivered at the Kigali Genocide Memorial in the capital, Kigali.



But Rwanda’s President Paul Kagame insisted the visit was about “the future, not the past”. “France and Rwanda are going to relate better to the benefit of our people, politically, economically and culturally,” he said.



Testament to that is a rising French business interest in Rwanda. In the new suburb of Rebero, for example, the Vivendi Group has established a cinema hall, a games center and has plans for a Universal Music Studio. Its internet and media businesses, Canal Box and Canal Plus, is a household name in Rwanda. The group’s business, Bolloré, specializes in warehouse, logistics and customs clearance services.



Roger Nkubito, Bolloré’s General Manager in Rwanda and Burundi, reveals the company has been investing further in the country.



“Obviously, every investor wants to associate with a country that is politically stable. Without good politics, it’s always hard for investors to make quick investment decisions,” he says.



Nkubito admits that the revitalized bilateral ties have inspired the business community from France to do business in Rwanda.



“French companies at this moment are asking whether there is a possibility to have a double tax avoidance agreement signed between the two countries. That wouldn’t have happened without the two countries making efforts to talk to each other,” he asserts.



Nkubito says Bollore Logistics has now set aside $15 million to expand its reach in Rwanda.



“We are investing in the Kigali Economic Free Zone. We have completed the first phase of the project – a big modern warehouse with 10,000 square meters, which has cost us $7 million. The second phase will begin at the end of this year,” he explains.



A few kilometers away, another French firm, Duval Group, has committed millions to set up one of the largest shopping malls in the country.



Duval Group, a family-owned business which already has operations in Cameroon, Senegal, Ghana and Ivory Coast, is one of the latest French players in the Rwandan market.



The company is partnering with local businessman Vicky Murabukirwa for various planned investments.



“We are investing in Rwanda because the political landscape is conducive, the IT infrastructure is advanced, and there’s security. These are some of the key things that have attracted French investors here,” Murabukirwa says. On the cards for the group is a property complex



that will comprise duty-free shops, a four-star hotel, a hypermarket, a food court and other entertainment facilities.



Rwanda is positioning itself as an international financial center and has been working over the years to market itself as a hub for meetings, conferences and events.



According to reports, last year alone, French businesses invested $6.8 million in Rwanda.



“We have a long-term strategic vision towards Rwanda. Beyond Inzovu Mall (the real estate project), we are exploring opportunities in microfinance and insurance sectors,” Eric Duval, the Group’s Founder and Chairman, tells FORBES AFRICA.



BY JULIUS BIZIMUNGU

TOPSHOT-FRANCE-SUDAN-POLITICS-DIPLOMACY-SUMMIT

Newer Heights: ‘Every investor wants to associate with a country that is politically stable’

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.



&nbsp;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.



&nbsp;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.



&nbsp;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.



&nbsp;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.



&nbsp;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.



&nbsp;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.



&nbsp;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.



&nbsp;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.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="743" height="534" src="https://www.forbesafrica.com/wp-content/uploads/2020/02/image1.jpeg" alt="" class="wp-image-42628" srcset="https://cms.forbesafrica.com/wp-content/uploads/2020/02/image1.jpeg 743w, https://cms.forbesafrica.com/wp-content/uploads/2020/02/image1-300x216.jpeg 300w, https://cms.forbesafrica.com/wp-content/uploads/2020/02/image1-600x431.jpeg 600w" sizes="(max-width: 743px) 100vw, 743px" /></figure>



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.



&#8211; Zephanie Niyonkuru

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Invest in Rwanda, A Country With Unconventional Vision And Leadership

kagame

2018 African Of The Year – President of Rwanda  Paul Kagame

The tiny East African nation has proven to be a role model for the continent.
During her November 2018 visit to Rwanda, World Bank CEO Kristalina Georgieva described the country as one that has enjoyed impressive growth and often has bold ambitions.
In recent years, at business summits across the world, it’s not uncommon to hear such praise about Rwanda. Various speakers have singled it out as one of the emerging economies to look out for in terms of investment opportunities, value for money and economic growth.
The statistics explain why Rwanda has become Africa’s poster child for progress. The country has reduced reliance on donations and currently, domestically funds about 84% of the budget up from about 36% two decades ago.
In the last fiscal year (2017-2018), the economy grew by 8.9%.
Barely 24 years after the horrific genocide against the Tutsi, when the East African nation lost over a million lives and the devastation left a trail of trauma and economic ruin, its achievements have often been described as miraculous.
<blockquote>At the center of the tiny country’s recovery is President Paul Kagame, who led the revolt that ended the genocide.</blockquote>
Kagame has led his country from penury to prosperity. His government has co-invested alongside private capital to reduce risk and create a more appealing proposition.
For instance, when one of Africa’s leading telecoms groups, MTN, was keen on entering the Rwandan market in 1998, the government boosted their confidence by purchasing a 20% stake in the company.
This was driven by an ambition to not only attract the firm to the country but to ensure citizens have access to affordable telecom services. Years later, the government offloaded its stake in the firm through an initial public offering, allowing citizens to be part of a meaningful income-generating firm.
MTN is just one example of the strategic approaches taken by the Kagame-led government. The same has been replicated in multiple sectors, including finance and agriculture.
The last two decades on the Rwandan economic front have also been characterized by improving the investment ecosystem to create interest from the international and local business community.
While most would concentrate on the odds against the country, such as its small size, and its landlocked location, amidst a volatile region, Kagame sought to give investors every reason to put their money in Rwanda.
In a continent that has always been associated with corruption, the Rwandan government adopted a zero-tolerance stance on graft.
This was paired with the improvement of service delivery across all sectors, eliminating the need for bribes to access public services.
<a href="https://www.forbesafrica.com/interview/2018/10/19/paul-kagame-together-is-when-we-are-going-to-succeed/" target="_blank" rel="noopener">READ MORE | Paul Kagame: ‘Together Is When We Are Going To Succeed’</a>
The most recent Corruption Perceptions Index by Transparency International placed Rwanda as third least corrupt country in Africa.
The reforms have for the last two decades addressed challenges that have often kept investors up at night. Steps that are cumbersome in countries across the world, such as business registration, were eased to a six-hour activity, while tax declaration and registration were simplified to online processes.
The World Bank ranked Rwanda 29th globally in its 2018 Ease Of Doing Business Report and put it second in Africa. The index tracks business efficiency across the world.
Many African economies are known for distinct exports or income streams that have remained unchanged for years. Rwanda chose a different path by embarking on a concerted effort to diversify exports and revenue streams.
This approach has seen services become the leading driver of gross domestic product growth  in the last three years, taking over from agriculture.
Diversification has been achieved, in part, through an increased focus on tourism, driven by initiatives such as the Meetings Incentives Conferences and Exhibitions (MICE) strategy which in less than five years placed Rwanda among the top conference destinations in Africa.
In May 2018, the International Congress and Convention Association (ICCA) ranked the capital Kigali as the third most popular conference and event destination on the continent, after Cape Town in South Africa, and Casablanca of Morocco.
The ranking considered as the country’s capacity to accommodate international meetings and events, together with landmark infrastructure such as a modern airport and a state-of-the-art conference center.
The country has projected doubling revenues from conference tourism.
<a href="https://www.forbesafrica.com/focus/2018/08/15/a-country-on-a-roll/" target="_blank" rel="noopener">READ MORE | A Country On A Roll</a>
According to Clare Akamanzi, the Chief Executive of the Rwanda Development Board (RDB), the country collected a total of $42 million from 192 conferences in 2017 and was projecting $74 million in 2018.
The diversification strategy has opened up investment opportunities for local and international investors (Marriott, Radisson Blu, Park Inn, Serena among others) and created thousands of jobs in the hospitality industry.
The Rwandan media was in November abuzz with news that all hotels in the country’s capital were fully booked for conferences during the month. Conference organizers and tour operators were also said to be stretched to capacity.
Statistics from the RDB indicate there were about 10,488 hotel rooms in the country in 2017, while aviation traffic is expected to grow to about 1,151,300 in 2018, from 926,571 in 2017.
The trend is expected to persist going forward. Rwanda will by the end of 2020 have a new modern airport located in the Bugesera District, a 25-minute drive from the capital.
While pursuing externally-driven growth, Kagame has not forgotten about the home front. This led his government to adopt a ‘Made in Rwanda’ strategy in 2016, which has reduced the trade deficit by about 36% and increased the value of total exports by about 69% from about $558 million to $943 million. Local producers have fast become empowered to produce for the local and export market.
The Rwandan leader has turned his attention to regional integration in the six-member East African Community to counter complaints about Africa’s small, fragmented markets.
The consolidated market of over 200 million citizens is more reassuring to investors and makes a business case for joint infrastructure projects such as the Standard Gauge Railway, which will connect the major Kenyan centers of Mombasa and Nairobi.
Lisa Kaestner, a practice manager for finance competitiveness and innovation at the International Finance Corporation, says: “I see Rwanda is keen on this and trying to support through the East African Community. This is one way to reduce the cost of doing business. If you look at it through the doing business lenses, all countries are trying to improve.”
Kagame’s continental mission has been evident in his various roles at the African Union (AU).
<blockquote>As the chairperson of the AU Reforms team, Kagame has advocated for less donor dependency and more sustainable funding by African states.</blockquote>
He has often challenged African countries who contribute less than 30% of the AU’s budget and turn to external donors with a begging bowl, which has been blamed for influencing the body’s decisions and priorities.
As  AU chair, Kagame has sought an adjustment of terms between Africa and the rest of the world for mutual benefit. This, he has argued, is more sustainable in the long run and presents an avenue for growth among all parties, as opposed to aid, which maintains dependence.
Months after assuming the chairmanship of the AU, in March 2018, Kagame hosted over 50 African heads of state and government in Kigali for the signing of the African Continental Free Trade Area.
As a trade bloc, the trade agreement envisions a continental market of 1.2 billion people, with a combined gross domestic product of more than $3.4 trillion.
So far, 49 countries have signed the agreement, with nine ratifications. The development is a huge step towards encouraging industrialization and job creation across Africa.
Peter Mathuki, Executive Director of the East African Business Council, says: “The country’s leadership is on grip to lift the EAC country to middle income level faster than most African countries. The fast economic growth is premised on pillars of good governance, easy-to-do business climate and zero tolerance to corruption… Rwanda is indeed Africa’s rising star and driver for economic transformation.”
&#8211; Collins Mwai

Kigali city view from Nyarugenge

Rwanda The Emerging Economy To Watch

Rwanda’s President Paul Kagame and head of the African Union speaks to CNBC Africa’s Chris Bishop on continental trade, business and China’s influence. Excerpts of the interview.

Q. Philosophers and poets have been talking about a united Africa for decades. It seems on the business front, it is on the cards. We are talking about an African Continental Free Trade Area. As Chairperson of the African Union, how are you going to make this happen? 
A. Africa coming together and being united is a very important task and responsibility for all of us. It’s never going to be a task of the Chairperson of the African Union alone. What the Chairperson does is to govern the understanding and support and everyone together so we do what needs to be done for our continent to be unified. We have already started with the Continental Free Trade Area; before that, we have been talking about regional integration. Regions with a lot commonalities can come together to do business, to invest in each other or deal with the rest of the world as one entity.
Q. How difficult is this going to be? 
A. It is going to be difficult bringing change even when it is very necessary… As Chairperson of the African Union or even as a president of my country, I know it is the task of other leaders to not only talk about nice things that should happen, but also do the hard work to lead all of us to the results of the effort we have to put in. So we have to keep raising our voices first of all, reminding people, assuming that they have forgotten, because some of them do not know what they are supposed to do. So you have to keep raising your voice, keep reminding people and we do it collectively. It is always going to be useful if we do it together and understand that together is when we are going to succeed.
Q. A lot of countries have not yet signed up to the African Continental Free Trade Area agreement. What can you do about this? 
A. The best way is to start from somewhere and demonstrate the good that can come out of such a thing as a free trade area and having an agreement over that and what needs to happen. Once you demonstrate the benefits, I think people will quickly move towards doing things that benefit them. And in actual fact, we also need to look at what happens elsewhere in the world. We know the stories of different parts of the world where people have come from and the paths they have taken and where they are today. And from Africa, we look at what has happened in Asia, the long history of Europe, Latin America, United States, Canada and so on. So we need to relate to where they are with a number of things that have happened or they have done to be there… But we can’t be there by just admiring what other people have done and not doing exactly what you need to do for yourself and get moving with the situation and improving it&#8230;
Q: What do you think a leader should be doing to keep talented young people on the continent? 
A: It is governance; we need to govern our people properly. But governance alone does not provide anything; what you do within those structures, and that comes to the investments we make that are responsive to people’s needs, aspirations and desires. It’s around the creation of a business environment, whether small or big businesses can make money, can do whatever they can and do that freely, because people know how to do some of these things, but until there is a conducive environment for them to play that part, that won’t happen. So leaders must make sure that this is the case and allow people to participate in all that. Once there is participation, there is benefiting, there is the feeling that what they have is what they wanted; at least they have hope, they are sure that things are moving in the right direction even if they do not have what they wanted now, they can have it tomorrow.
<a href="http://www.forbesafrica.com/life/2016/04/01/tribute-remarkable-rwandan-women/" target="_blank" rel="noopener">READ MORE: ‘A Tribute To Remarkable Rwandan Women’</a>
Q: To your role as Chairperson of the African Union, I mean if you can argue that this is Africa’s time, but still there is that lingering fear and concern sometimes about stability, even in your own region in East Africa. How are you planning to tackle this in your job? 
A. It is just to keep bringing out these discrepancies. The complaints people have are real. You need to listen to them and you need to get to the bottom of why there are these contradictions, of course the major problem being we have many of us who say the right things but the next day, we are doing the complete opposite. So until we exercise some conscientious discipline to an extent really, if we understand that this is what we need to do and it’s good for everybody, it’s good for you, it’s good for me and in fact if there is something that is good for both of us, we shouldn’t tamper with that, we need to only take it forward and make sure we benefit more but together. This is something we have seen over many years because even when we are talking about regional integration, which has made good progress over the years, we still have people who will talk about integration and will talk about all the good things and how everybody should do this and that and then you find the same people are the ones undermining integration. It has happened. We see it every day. So we need to keep shouting out to these people and say ‘please, you know this is affecting me and maybe at the end, it will affect you’.
Q: How do you think Africa is doing right now in persuading the businessmen of the world to put their money into this continent? 
A: Well, let me start with my own country Rwanda. On the continent of Africa alone, Rwanda is the second best place when it comes to the ease-of-doing-business index. I am saying every country on our continent is trying to fix different problems that create obstacles for business in Africa. Every country is making an effort, Rwanda is one of them. The whole of East Africa is involved in that. So on people’s minds, they know how important it is for countries to create a good environment for investors to invest in, for people doing business to do business or for the business people of one country to do business in another country or with the citizens of another country. This is now a very common discussion. People are always searching for better ways to allow that to happen, so I think things are on the upward trend, things are in the right direction but it’s never enough and I think Africa is still lagging behind many other parts of the world. Even if we look at intra-Africa trade, it is still very low, when it comes to other regions, it’s much higher, so we need to improve, we need to do better and we need to move faster.
Q: A lot of countries have run into a lot of soured private-public investments. How do you approach it as a leader when trying to negotiate private-public partnerships? 
A. You see, the starting point is, let’s say both sides, are we prepared? Do we know what we want? Do we know how to get it while we allow the partner to also get what they want? You see, there are two parties here. Why things have gone wrong is some people have gone into partnerships and this is mostly with governments; a lot of things happen that prove that either government did not know what they wanted or they knew but the people who were involved on behalf of the government ended up trying to benefit themselves instead of looking at the country’s interest, and the other partner who is the private partner. This has always been the case but if governments are prepared and governments have expertise, if they do not have it in-house, they can hire expertise to act on their behalf. There is so much out there that once you ask people to stand in for you as expertise, they will do that. So it is not the formula of private-partnership that is problematic, it is those who are involved in the transactions that become problematic.
Q: So you are talking about corruption here? 
A. Absolutely! Corruption comes in, there is no question about it. Corruption is part of it or just bad governance of the whole process.
<div id="attachment_37491" style="width: 750px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-37491" class="wp-image-37491 size-large" src="https://www.forbesafrica.com/wp-content/uploads/2018/10/GettyImages-825575448-1024x683.jpg" alt="" width="740" height="494" srcset="https://cms.forbesafrica.com/wp-content/uploads/2018/10/GettyImages-825575448-1024x683.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2018/10/GettyImages-825575448-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2018/10/GettyImages-825575448-600x400.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2018/10/GettyImages-825575448-768x512.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2018/10/GettyImages-825575448.jpg 1654w" sizes="(max-width: 740px) 100vw, 740px" />Incumbent Rwandan President Paul Kagame greets the crowd after addressing supporters at the closing rally of the presidential campaign in Kigali, on August 2, 2017. </div>
Q: I know it is something you have tried to fight for a decade. How close do you think you are to actually getting it out of the system here? 
A. You will never kill corruption completely, but you can reduce it to the bare minimum and what has happened is to create an environment of accountability and transparency, where things will be done and without fear or favor, justice will be exercised. It does not matter whether it is a big person or an ordinary person. Once they are caught up in this, the law should apply.
Q: From all the corners of the continent, a lot of people are still saying China smacks of neo-colonialism – the influence they are exerting in Africa right now. What do you say? 
A. Well, tell me about neo-colonialism or the old one? The new or the old I don’t know, but they are all bad things, but again it comes to the whole point… There are Chinese investments in Africa; you do not make investments for nothing, and it is not charity, right? Africa needs investments and again, it goes back to the other point I raised – does Africa know what it wants in working with other people from other parts of the world? If China offers an opportunity, that’s the way I prefer to see it. What does Rwanda want from China or what can we ably get from China, where we will benefit and China will benefit because again it is not a charity relationship. So if we know that and have discussions about it, then we should have a fair deal. Do I want the Chinese to build a power plant for me, for Rwandans to have sufficient electricity? How much is China able to lend to us or how much actually do we owe, or different groups that have been lending us money, so we make sure that we don’t end up owing too much or more than we can actually absorb from China and if you did it with any other country anywhere, it would be the same problem so we have to be conscious of that but if they are able to give us resources or money or lend us and say ‘we build for you power plants because that’s what we want’, and we say ‘okay, we are going to have this much invested in it and this is how we are going to repay the debt’ and so on and so forth… why should that be a problem? Because I don’t know of any place where China has walked into and started grabbing things, and if it happened, then it is not a problem of China, it is a problem of where it is happening I think. For the country to just surrender everything and be grabbed, then there is a problem.
Q. Where do you think you would have been if you hadn’t gone into politics and become a president? What would you want to do with your life? 
A: Well, when I was in my youth, I used to like to do things, to make things. Maybe I would have pursued certain careers and professions. You would have seen me as an engineer, or somebody doing an innovation or creating things.
Q: So you would have been quite happy as a carpenter or… 
A: Absolutely! A mechanic or…
Q: And if you were, what would you be saying to your president of Rwanda today? 
A: I would say try to do the best, to provide us with an environment that does not stand in the way of people’s ability to realize their potential or do whatever they want to do, meaning, get the government out of the way of people trying to thrive and do things they wish to do. And this goes back to the same story, it’s like what we are always trying to say – what is it that we can get out of the way of business, investments or people who have benefitted from education to base on the knowledge and skills they have to do what they want to do and improve their standards of living. This would be my request to my president. If that was the situation, I would say make sure government does not stand in the way of the freedoms of people to realize their potential and do what they wish to do.
For the full interview, visit cnbcafrica.com

Rwanda President Paul Kagame At Harvard

Paul Kagame: ‘Together Is When We Are Going To Succeed’

Landing in Kigali at night is like swooping down on a bed of stars. The land of a thousand hills twinkles with lights rivalling the skies above. On this particular night, the eve of the city’s first-ever World Economic Forum (WEF), immigration lines at the tiny but gleaming Kigali International Airport are long – mostly business travelers with thick passports and thick accents – but the wait, thankfully, isn’t. Staff quickly issue visas on arrival, Rwanda one of the few African countries to offer this ease of access.
The country has long been preparing for this day, and that first important step to flexing its economic muscle on a global stage. Chinese philosopher Lao Tzu’s famous quote, “the journey of a thousand miles begins with a single step” would certainly apply here; WEF was Rwanda’s ticket to even greater global glory, beyond the 2Gs it had been known for thus far – the genocide and the gorillas.
The packed hotels and packed agendas over the next three days, May 11-13, justified its place on the WEF map. The delegates spoke, the presidents nodded, and there was affirmation everywhere, at forums, sessions, breakfasts and dinners: that Rwanda is “a beautiful country, so clean, so green, so safe”, but more importantly, a country that’s perhaps a model for the rest of Africa, and the world, for its progress over the last 22 years since the genocide against the Tutsi battered its being.
There was lavish praise also for President Paul Kagame for spearheading this growth. At the packed interactive session on African partnerships on day one moderated by former British Prime Minister Tony Blair, Kagame said: “Twenty two years ago, we had to involve everyone’s participation&#8230; we lost the past, but needed to regain the future.”
And Blair closed: “Twenty two years ago, if you said a couple of decades later, you would be hosting the World Economic Forum, people would have been surprised… it’s an amazing country that has seen extraordinary progress. You have done a great job.”
Toronto-based entrepreneur Sunir Chandaria said post-session: “They have moved mountains to make this happen… Rwanda has taken a leap with digitization amongst African countries.”
The Kigali edition was the 26th World Economic Forum on Africa, themed ‘Connecting Africa’s Resources Through Digital Transformation’. Some 1,200 delegates from 70 countries jetted into the small African city. In attendance were names like Tony Elumelu, Tonye Cole, Ngozi Okonjo-Iweala, Howard Buffett, Pravin Gordhan and Cherie Blair. The venue at Camp Kigali, rechristened the Kigali Conference and Exhibition Village, had a tented concept to stir a sense of déjà vu of WEF’s annual Davos outing.
From the Alps of Switzerland to the hills of Rwanda, the forum did manage to generate its own share of excitement.
Against the backdrop of Kigali’s rolling hills – mostly red, not green, owing to the profusion of red-roofed homes on the slopes – the African plenary unfolded. Gun-toting men in military fatigues guarded the main venue and the five-star Serena Hotel, where most of the 10 visiting African heads of state were staying, and which was the venue for the stately events and dinners throughout WEF. One couldn’t get to the lobby without bag and body thoroughly searched.
Issues around women and youth featured prominently throughout the conference, not surprising, considering the host country boasts more women in parliament, in the ministries and the judiciary.
The first side event, held on the eve of WEF, was ‘Women Creating Wealth’, by the Graça Machel Trust, supported by the Rwanda chapter of New Faces, New Voices, a pan-African advocacy group expanding the role and influence of women in the financial sector. Machel, also a co-chair of WEF on Africa, said: “Women are power, women are energy, women are creativity&#8230;”
Arjuna Costa, Partner at Omidyar Network, a philanthropic investment firm with a long history of investing in Africa, who was the only male member on the panel, spoke to FORBES AFRICA: “It’s an exciting time to be a young entrepreneur in Africa, especially with the world moving towards more and more mobile, Africa in many ways being the pioneer of things like mobile systems, and also creating rich ecosystems on which more innovation is coming… It’s exciting as it’s home-grown innovation tackling global challenges with local solutions but still leveraging the power of technology.”
On day one of WEF, the Youth Forum, a breakfast event hosted by Rwanda’s First Lady Jeannette Kagame, saw a full auditorium at the Serena that was, for a change, an equal turnout of both male and female achievers.
In attendance throughout the conference were WEF’s Young Global Leaders (YGLs) and Global Shapers; there were so many, you could tell them from a distance.
One of them, Gerald Chirinda, a 20-something Harare-based entrepreneur standing in line for the security check at the Serena that night, for the social entrepreneurship dinner hosted by South Africa’s Motsepe Foundation, explained: “You see, we all look hungry&#8230; Hungry for power, and change&#8230; that’s why you recognize us.”
The one word used – and perhaps over-used – at the forum was ‘leapfrogging’. At one point during the interactive session on the Fourth Industrial Revolution at the venue’s Akagera hall, the forum’s co-chair, Akinwumi Adesina, President of the African Development Bank (AfDB), even said he didn’t believe in the word.
“Even a frog can’t leap that far,” he said to laughter.
“We cannot industrialize unless we solve access to electricity,” he said. One of the greatest priorities for the continent is electrification to enable digital technology – 500 million are without power.
“Africa is tired of being in the dark,” said Adesina. The AfDB is spending $12.5 billion in the next five years on its New Deal on Energy.
It’s crucial the Fourth Industrial Revolution “does not leave anyone behind”, said Machel, referring to Africa’s 52% female population.
At the same session, Kagame mentioned “people technology”. “Development is more than money or machines or tech. It’s about good people and the lives they lead every day,” he said.
Among the new initiatives unveiled, was the WEF-led Internet For All, a collection of best practices from around the world on how public-private collaboration has enabled internet access and adoption.
The forum’s Africa Skills Initiative brought organizations including MMI, GE, Google, Agility, the Rockefeller Foundation, Yellowwoods and the University of the Witwatersrand together to form a coalition committed to tackling Africa’s shortage of future-oriented STEM and ICT skills, while the Rockefeller Foundation announced a $1 million Cassava Innovation Challenge, aimed at finding ways to improve the shelf life of this staple crop.
Visitors to Rwanda’s first Marriott hotel that opened in time for WEF were awe-struck by its grandeur. Given the number of high-profile events the country has on the cards, hotels of this caliber are now necessary to meet the demands of discerning business travelers. The Radisson is set to open for the African Union summit here in July, right next to the Agaseki basket-inspired conference center, which was lit throughout the duration of WEF as a beacon of light and hope, hope for a tomorrow that has already come in Rwanda.

From The Alps  To The Hills

Rwanda’s President Paul Kagame has often urged Africa’s business and political leaders to “stop thinking about development as something we do with external resources.”
The current managers of the Nigerian economy will do well to heed this advice. They will spend 2016 struggling to rebalance their economy and its tax system. They must save their nation from the spasms of the Dutch disease.
Nigeria entered 2016 with its lowest external reserve levels in 10 years.
Nigeria’s foreign reserves peaked at $63 billion in September 2008. By January 2016, it had dipped to around $29.3 billion, barely enough to cover four months of imports.
The price of Nigeria’s Bonny Light crude was trading at $34 a barrel as this edition of FORBES AFRICA went to press. It has been dropping since September 2008 after attaining a record high of $147 in July that year. Prices for cocoa and iron ore have also been falling over the last two years.
Economists believe that the full effects of the resource curse may have finally caught up with Africa’s largest economy. For the third time in three decades, Nigeria’s economy is in serious wahala (Nigerian speak for trouble). Dwindling government revenue, foreign exchange pressure, institutionalized corruption and a massive infrastructure deficit confront the nation.
Like many resource-rich, mono-product economies, Nigeria faces the daunting challenge of curbing its appetite according to the size of its wallet. Embedded in Nigeria’s 2016 budget is a ginormous N6 trillion ($30 billion) revenue shortfall. The deficit financing will come from the domestic and international debts markets. But domestic resource-mobilization might be the key to fiscal and monetary efficiency.
Crude oil has defined Nigeria’s political economy for decades. It will continue to play a significant role, alongside commodities and Nigeria’s abundant natural gas reserves. Earnings from non-oil sectors, such as services, agriculture and entertainment, will continue to grow.
As Finance Minister, Kemi Adeosun, began talks with international finance institutions for external loans worth $3.5 billion to augment the 2016 budget, the local media was awash with two news reports – both revealing Nigeria’s scandalous administration of its tax regimes and import earnings under previous governments.
The first expose was a report published by ActionAid, an international NGO, which revealed how Nigeria had forfeited a staggering $3.3 billion in revenues through a three-part tax break granted to three of the world’s biggest oil and gas companies, over a 10-year period. Apparently, and obviously unknown to many Nigerians outside the infamously opaque petroleum sector, the tax breaks for Shell, Total and Eni started in 1999.
In a country where millions live in extreme poverty, the social cost of the tax giveaways is huge. The amount is double Nigeria’s education budget for 2014; and the money could very well have given 70 million young Nigerians access to quality education, rebuild the university system and tackle entrenched problems in the health system, according to ActionAid.
“It is a striking example of how a global race to the bottom on tax is harming resource-rich countries,” the NGO’s report says.
Previous ActionAid research shows that tax breaks cost developing countries at least $138 billion every year.
The second matter was the revocation of all import waivers granted to several “favored” firms and politically-connected entrepreneurs by previous governments between 1999 and 2015. Excise duty revenues from the Nigeria Customs Service for 2016 is consequently expected to be significantly higher than previous years. Finance ministry sources say Nigeria lost N797.8 billion (around $4 billion), between 2011 and May 2014, to import waivers and tax holiday concessions.
Nigeria’s lax tax system is just one of several public sector development issues awaiting resolution by President Muhammadu Buhari’s cabinet. Figures from the Debt Management Office show that in one year, Nigeria’s debt burden grew by N1.31 trillion ($6.57 billion) to N12.6 trillion ($63.2 billion) as at the end of 2015.
Also during the 2015 financial period, the state-owned Nigerian National Petroleum Corporation posted an operating loss of N267 billion ($1.34 billion). Its four refineries, with a combined installed capacity of 445,000bpd, continue to underperform.
Value Added Tax (VAT) and Company Income Tax (CIT) will account for 80% of the Federal Inland Revenue Service’s (FIRS) projected revenue haul in 2016.
Comparatively, Nigeria’s tax revenue performance is 7.4% of GDP compared with 27.4% in South Africa, 18.7% in Malawi and 19.5%, Kenya.

SERIOUS WAHALA AS THE RESOURCE CURSE BITES

There’s no better place to take a photograph of Rosette Chantal Rugamba than on the terrace of the landmark Hotel des Mille Collines by Kempinski in Kigali. It’s easy getting permission for this from the hotel’s management. Rugamba is well-known here and a regular.
The hotel affords a 360-degree view of the city and its splendorous rolling hills. Rugamba, in an orange suit and necklace, views the twinkling lights of Kigali and takes a deep breath of the crisp night air. She has had much to do with this vision of the city.
Twelve years ago, she was appointed Rwanda’s tourism head by the country’s president Paul Kagame tasked with turning around the country’s tourism infrastructure.
She had never lived in Rwanda before that. Her parents had fled the country to Uganda in 1959 and she grew up as a refugee with her seven siblings. Her parents never let them forget they were Rwandan first. The children were encouraged to learn French and culturally attuned to their country’s traditions. Be it books, music or dance, their home reverberated with Rwandan nuances, as the family lived on hope they would one day return home.
Her father was a brewer and her mother a teacher, but their humble home was always open to fellow Rwandans.
“There was always plenty of food,” recalls Rugamba. “And if you had to roll out a hundred mattresses, so be it.”
As her parents’ first-born, there was pressure on her to perform – and excel. She studied political science at university in Uganda. She married Henry, an Ugandan, and thereafter moved to London. Her husband worked for the British telecom industry, while she started her career with Harrods as a customer services manager. Today, she lauds herself for having been among the team that launched the first Harrods store at Terminal 3 in Heathrow airport. Yet another milestone: she was “among the 100 people” who started Eurostar.
“I am the sort of person who always wants to start things,” says Rugamba. Although she was settling well in the United Kingdom, in her heart, she recalled the songs of Rwanda, the songs of its flowing rivers and rolling hills.
In 1984, she decided to “risk a trip” to Rwanda, which was still in the throes of the liberation struggle.
“I wanted to experience the country and so toured it for the first time. I was satisfied but not sure if I would ever see it again.”
In 1996, Rugamba joined British Airways as its sales and marketing manager for East Africa, and she subsequently moved to Uganda. Rwanda’s horrific 1994 genocide was still fresh on her mind.
“We used to do a lot of fund-raising for the people and the soldiers. My mom’s family was completely wiped out.”
In 2002, she received a call from Kagame, asking her to return to her homeland. At the time, things looked positive for Rwanda.
“I asked myself ‘what value can I add?’. I am eternally grateful to the President that he unleashed the potential I never knew I had.”
Kagame wanted her to raise Rwanda’s profile through tourism and turn it into an engine for economic change in the country.
“The brief I got from him was ‘make sure every tourism dollar is spent in the country’,” says Rugamba.
When she took over as the Director General of Tourism and National Parks in January 2003, she was six months pregnant and a newcomer in her own homeland.
“The tasks in front of me were huge. I was coming back to a country I had never lived in and tasked with tourism in a country that had never known it. I felt like a tourist in my own country,” she says.
Yet, she embarked on the job with passion.
“The country was embedded in me. I was so excited that for the first time I was given a Rwandan passport, the one given to government officials but one that came with responsibility. It actually meant I was now a part of the transformation of the country.”
It also came with personal sacrifice – for a while. She came to Rwanda leaving her family behind in Uganda.
“My husband said ‘you go, we will be fine, you are getting a chance to serve your country, we can manage’. Women can’t do it without the support of men,” says Rugamba.
The first thing she did on the job was getting on the radio every Sunday at 3PM, talking about the country’s tourism potential and the role Rwandans would play.
“Tourism is multi-faceted and for it to succeed, the masses needed to be involved. We had to get the coffee, tea and ICT sectors as well to support it.”
Her mandate was to grow the tourism numbers, build restaurants and hotels, and offer tourists local handicrafts and every reason to visit Rwanda.
“Rwandans are very patriotic and they linked [tourism] to the visionary leader they loved so much. Until then, everyone only knew Rwanda for the 2Gs: the genocide and gorillas. It was time to showcase whatever else Rwanda had to offer.”
Tasked with reinvigorating tourism in the ‘Land of the Thousand Hills’, for the next seven years, Rugamba reoriented the sector putting in place new policies and strategic master plans. She launched the country internationally with a new pitch: ‘Rwanda – the new dawn of Africa’.
“I was so determined to sell the vision. I went to the [East Africa] region, gathered the tour operators and brought them here. The target was high-end eco-tourism.”
Eugene Rutagarama, who as the Country Director of IGCP (International Gorilla Conservation Programme) worked closely with Rugamba for eight years, extols her ability to tackle problems and take a stand on tough issues.
“Rosette Rugamba is an energetic person, an inspiring leader to her peers and to any person who happens to know her well. I was always impressed by her innovative approach to complex situations and her strong desire to reach a high level of accomplishment,” he recalls.
In time, her efforts paid off.
By the time Rugamba stepped down in 2010, tourism had become Rwanda’s top foreign-exchange earner. The tourism master plan for Rwanda’s Vision 2020 had been laid out, and the country was a stand-alone destination in the East African bloc.
In 2003, when she took on the job, tourist numbers in Rwanda were a mere 13,000. When she left in 2010, that figure had risen to 790,000.
In 2013, Rwanda had 1,137,000 visitors and tourism generated $293.6 million. The number of hotel rooms in the country has risen to 8,417. It was 650 when Rugamba started in 2003. To accommodate the demand, the current airport has recently been expanded and a new airport is being built in Bugasera.
It was time for Rugamba to find a new challenge.
“I saw what tourism could do for Rwanda. I wanted to do the same for Africa. My vision is to go everywhere,” she says.
She chose to turn entrepreneur, starting Songa Africa, a luxury tour company focusing on sustainable tourism.
“There was room for an indigenous luxury tour company headed by a woman. I had the passion, local knowledge and appreciation of the luxury clientele. I started with an old laptop and a contact book, but with a vision.”
In March, her company completes five years. She admits to having international celebrities, presidents, film stars and media moguls as clients. She has been consistently recognized as one of East Africa’s leading tourism and conservation strategists.
“What happened to me is magical,” she says.
Rugamba’s company is launching its first custom-built luxury eco-lodge in March and will be rolling out three five-star lodges to the tune of $5.5 million. Her company is also getting into conference tourism in line with Rwanda’s strategy to position itself as a business destination.
All this has meant extensive travel for Rugamba.
“Oh my goodness! I have hardly been in the country these last three months,” she says. But wherever she goes, all roads lead her back home to Rwanda.

Rosette-Rugamba_2037

Harrods, Heathrow, Home

Every few minutes, they touched down at Nnamdi Azikiwe International Airport. The roads buzzed and hotel lobbies filled as the world arrived for the most important meeting in African business.
The World Economic Forum (WEF) on Africa, hosted in Abuja, was one of the largest in many years. The biggest names in world business, among 1,000 leaders, were there. They included Aliko Dangote, Pravin Gordhan, Paul Kagame, Uhuru Kenyatta, Li Keqiang and Bineta Diop.
This was a meet to check progress from the last meeting in Cape Town and work out what needs to be done ahead of the next.
Nigeria hosting the gathering reflected its success and trials. In one way it was a celebration after the country was elevated to Africa’s largest economy after the rebasing of its GDP. On Nigeria’s rebased GDP, a wide cross section of investors and prospective entrants confirm that investing in Nigeria has become a priority.
“There is undoubtedly huge potential in this country and the rest of Africa respectively. The real power will, however, only materialize when we get plans into motion and make things work,” says Julian Roberts, the Group Chief Executive of Old Mutual.
On the other side of the coin, the country is still plagued by poor infrastructure and unrest. In Abuja there have been deadly bomb attacks and further north, the Islamist militant group Boko Haram abducted 276 schoolgirls.
It meant public offices and schools closed from May 7 to May 9. Security was beefed up as police squads threw up checkpoints. But, the world made its way to Abuja to tap into Nigeria’s burgeoning market. Investors contributed $21.3 billion in foreign direct investment last year and $2.5 billion in January and February this year alone.
Expectations were high in spite of the difficulties. The forum was set to discuss innovative structural reforms and sustainable investments for creating jobs and prosperity.
“The need to create jobs is a global problem. All countries around the world are concerned about job creation. In Africa, the unemployment problem is compounded by the youthful population and pending demographic transition. Africa’s population is very young…  making African leaders face special challenges,” says Nigeria’s president Goodluck Jonathan.
So, what has changed since the previous forum in Cape Town?
In spite of impressive growth, many African economies have yet to see broad-based prosperity. There are also issues of security, infrastructure, skills, education and health.
Africa’s alarming youth unemployment story is often told in parallel with growth. The youth account for 60% of all of Africa’s unemployed, according to the World Bank. Sub-Saharan Africa’s unemployment rate is at 6% in comparison with the world average of 5%, according to the African Development Bank. The problem is that youth unemployment in most African countries occurs at more than twice the adult rate.
A defective educational system, lack of vocational guidance and training could be to blame.
Nigeria, West Africa’s leading economy is even plagued by intermittent strikes in the classroom.
So, what will WEF achieve?
“It is not just about growth, it’s about the right kind of growth and participants’ focus will not be limited to growing Africa’s economy, but will also highlight means of doing so in an inclusive manner,” says WEF’s head of Africa, Elsie Kanza.
“This meeting is creating tremendous opportunity in sub-Saharan Africa and the continent at large. These opportunities will help to break down barriers and open up new frontiers for business. The theme of this year’s forum is very apt as this is what we are working tirelessly on presently. The power of these forums should not be underestimated,” says Jim Ovia, the $900-million banking veteran and FORBES AFRICA cover in June last year.
Sub-Saharan Africa is expected to remain the world’s second fastest growing region &#8211; a result of more efficiency in resource utilization, better governance and rising domestic demand. Challenges and opportunities shaping Africa’s growth outlook are often under-estimated. These issues went under the microscope at the forum.
Nigeria’s finance minister, Ngozi Okonjo-Iweala, says infrastructural and logistical challenges will continue to hamper the growth of the continent. West African leaders drew up plans to build highways to boost intra-Africa trade, as has been seen in East Africa.
Kenya has signed a $3.6 billion Mombasa-Nairobi railway deal with China. The railway will connect Kenya with the rest of the region and open up trade within East Africa.
Security in Nigeria was also on the agenda with the schoolgirl abduction in the headlines. Jonathan thanked the international community for their support on the issue but questions still hang over what the government will do.
It was announced by Okonjo-Iweala that a sum of $10 million has been approved by the state for a safe school project. A further $10 million will be provided by Nigerian business. This is seen as a move to improve security in Nigerian schools.
Lack of power in Africa poses a major threat to economic growth. Nigeria’s parlous power sector and power privatization process, the biggest on the continent yet, has spurred global interest.
“We are getting somewhere and it will not be an overnight transformation. We are excited about the transformation this sector will experience and urge Nigerians to have some belief and patience in the process,” says Okonjo-Iweala.
Trade between Africa and China is also expected to continue to grow.
“This is definitely the world’s largest inclusive growth. Africa needs to develop its infrastructure and industries while China boasts a stronger and spare capability of investment and construction in this area. Thus, the economies of China and Africa are highly complementary and both sides’ development is each other’s opportunity. China and Africa shall complement each other in mutually beneficial co-operation to give a stronger impetus to each other’s development,” says Li Keqiang, the premier of China.
Technology can also drive the continent’s economy.
“A vast number of people have been digitally empowered and are more open to economic participation. Getting this critical mass to act accordingly should be a stronger focus. Therein lies an opportunity,” says Hendrik du Toit, the CEO of Investec Asset Management.
WEF also announced so-called Global Growth Companies (GGCs) in Africa. These are 16 high growth companies on the continent with innovative revenue growth and sound corporate governance. The selected companies are: Seplat Petroleum Development Company (Nigeria), Computer Warehouse Group (Nigeria), Interswitch Limited (Nigeria), Nagode Group (Nigeria), UAC of Nigeria (Nigeria), Notore Chemical Industries (Nigeria), Nation Media Group (Kenya), Bidco Oil Refineries (Kenya), GML (Mauritius), Growthpoint Properties (South Africa), KZN Oils (South Africa), Net1 UEPS Technologies (South Africa), Tekkie Town (South Africa), Capitec Bank (South Africa) Webber Wentzel (South Africa) and Simba Group (Uganda).
WEF and the Organisation for Economic Co-operation and Development set a joint task force to redesign financing for Africa and developing economies. According to Development Initiatives, an independent organization working on poverty alleviation, approximately $1.7 trillion flows from the developed to the developing world. The task force will redeploy the finance to key sectors of the economies that will benefit the most.
For now, Africa waits in anticipation to see whether the proof is in the pudding.

Tag: Paul Kagame

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