As a reinforcement of the free market economy that Kigali endorses, an Information and Communication Technology company from India, the multimillion-dollar Micro Tech Global Foundation, has today revealed of aims to invest heavily in multiple sectors in Rwanda.
The premise of the foreign investor is to spur economic gains and progress in diverse sectors including ICT, medical services, education, hospitality and a plethora more, all this via a systematic bureaucratic model.
“The founder has met government officials, especially Rwanda Development Board,” said Clarence Fernandes in a correspondence with Rwanda’s The New Times.
Sumptuous foreign investment record
It is no surprise that Rwanda is attracting major multinationals into its thriving sectors for it has remained one of the freest economies in the East and Central Africa region.
Kigali has the lowest corruption record in the Great Lakes, a reason that most investors attribute for their finding favor with the relatively small nation that once went up under a ball of fire during the 1994 ethnic genocide.
The regime of President Paul Kagame has been keen on buffering the economy with, among others, tourism and foreign investment. The government is keen on making the latter sector represent the Gross Domestic Product at 23 percentage points by the culmination of 2020, the year of the economic Vision.
ICT has been one of the lacking areas of growth mainly because 90% of the population still relies on subsistence agriculture and other informal setups. Indeed, between the close of financial year 2008-09 and that of 2009-10, the equity conversion for the GDP had depreciated from 9 percent to 3.5 percent as a result of negative growth in certain sectors including ICT.
Without the loss-making sectors, however, the rest of the industrial framework and the export base of agriculture performed excellently in the same periods, with the 2010 margin from manufacturing clocking 13.4% worth of equity conversion and agriculture posting 28.1% to make buoyant the total equity (without poor performers like Information & Communications Technology and mining) at 13.4%.
Analysts trace some downturns in an economy that is otherwise grossing a high, sustained GDP growth rate to the ripples in the world economy, and thus caution the state to evolve mechanisms of buffering against any negatives that investors may bring along from fiscal troubles elsewhere.
Though free economy and low levels of corruption have emerged as the ready attributes for the windfall of foreign entrepreneurs in the country, the stable political framework and macroeconomic policies have also much to account for this direct investment.