Rwanda has emerged best investor protector in Africa, ahead of the continent’s largest economies, Nigeria and South Africa.
In its Index of Best Countries for Business Report released last Friday, Forbes ranked the United Kingdom as the best among 153 countries studied. It is followed by New Zealand, Netherlands, Sweden and Canada as the top five respectively.
Taking into consideration all 15 factors, Rwanda was ranked 79th globally.
Mauritius is the best in Africa and 41st globally, followed by South Africa as 48th, Morocco 55th, and Botswana 76th while Rwanda comes fifth overall on the continent.
Nigeria, the largest continent’s economy, was ranked 115th.
The United States, world’s largest economy, is ranked 12th, Germany is 13th, Japan 21st, France 22nd while China stands at 66th.
The rankings considered15 different factors including property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape and investor protection.
The report shows that Rwanda’s GDP was $8 billion as of December 2017 with the annual growth of 5.9%. GDP per Capita was $700, unemployment at 2.7%, public debt per GDP was at 43% while inflation stood at 5.7%.
The population was 11.9 million.
Forbes reports that Rwanda has made substantial progress in stabilising and rehabilitating its economy.
“GDP has rebounded with an average annual growth of 6%-8% since 2003 and inflation has been reduced to single digits. The government has embraced an expansionary fiscal policy to reduce poverty by improving education, infrastructure, and foreign and domestic investment.”
In recognition of Rwanda’s successful management of its macro economy, the IMF graduated Rwanda to a Policy Support Instrument in 2010.
Rwanda seeks to become a regional leader in information and communication technologies. It completed in 2012 the first modern Special Economic Zone (SEZ) in Kigali. The free industrial area seeks to attract investment specifically in agribusiness, information and communications, trade and logistics, mining, and construction.
In 2016, the government launched an online system to give investors information about public land and its suitability for agricultural development.