Category: Economy

Nyagatare District stands out with its vast and fertile landscapes, boasting larger villages and cells compared to others across the country. A short drive from Nyagatare town leads to Karangazi Sector, Ndama Cell, the home of Rwabiharamba Model Village, where 120 families relocated from Akayange village to pave the way for modern agriculture and animal husbandry.

The ambitious ‘Gabiro Agribusiness Hub’ project, spanning 16,000 hectares in Karangazi and Rwimiyaga sectors, aims to transform the lives of those residing in Akayange and Shimwa Paul villages. With 120 houses in Akayange and 72 in Shimwa Paul, this initiative embodies a modern approach, providing families with four-in-one structures. Each household receives a three-room house with a sitting room, inclusive of a bathroom and toilet, an outdoor kitchen, as well as access to water and electricity.

Strategically located near essential infrastructure like schools and clinics, these villages bring a sense of fulfilment to the residents. Furaha Godfrey, the head of a family with nine children, expresses gratitude for the transformative change, emphasizing the previous challenges of inadequate water, distant schools, and an overall lack of development prospects. Furaha praises the government for bringing relief and ensuring their safety, especially during inclement weather.

Similarly, Jane Mbabazi highlights the significant shift from relying on dam water, sometimes clean and sometimes muddy, to having clean water at their doorstep. She acknowledges the positive impact on education, health, and overall progress, attributing it to the vision of President Paul Kagame.

Didace Bataringaya, a resident of Akayange Model Village, recounts the stark contrast of their previous life, marked by poor conditions and a lack of basic infrastructure. The moment he received the keys to his new house, Bataringaya couldn’t believe the reality of the situation. His joy is palpable as he describes sleeping on the floor of his new home, a stark departure from the challenges they faced before.

Mayor Stephen Gasana emphasizes the significance of relocating families for the Gabiro Agribusiness Hub project, which not only aims for agricultural development but also ensures decent living conditions for the relocated families. Gasana encourages residents to capitalize on the available infrastructure and opportunities for a better life.

Emmanuel Ahabwe, Head of Department for Social and Affordable Housing Development at Rwanda Housing Authority, underscores the importance of the model villages in providing decent shelters and fostering agricultural development. He stresses the need for responsible land use to prevent encroachment on areas designated for other vital activities.

Rwanda Housing Authority urges village residents to cherish and maintain their homes and infrastructure. A total of 253 villages, accommodating over 30,000 families, have been built, with plans for 3,000 rural villages nationwide, each offering prepared sites for comfortable living.

The success stories from Rwabiharamba, Akayange, and Shimwa Paul serve as beacons of hope, illustrating the transformative power of integrated development model villages in shaping brighter futures for their residents.

It takes no more than five minutes by car or motorcycle from Musanze City to reach the state-of-the-art craft center built for artisans who previously operated near the city’s bus station.

This craft center, which accommodates over 700 people, mainly carpenters, is one of the projects funded by the Belgian Development Agency, Enabel. The center is modernly constructed, with separate sections for carpenters, metalworkers, and display and sales areas.

The Director of the Musanze Craft Center, Ndayambaje Deogratias, told IGIHE that their operations changed from January 15, 2022, when they moved to a spacious, beautiful location where they can also benefit from collective learning.

He said, “Comparing where we used to work and where we are today, there is a vast difference in size and appearance. Engaging in craftsmanship involves continuous learning, observing the innovations of others, and trying to create new things in your work. This is different from our previous situation where we were very few, as craftsmen were scattered all over Musanze City.”

Nyirasafari Sawiya, who sells timber at the craft center, entered the business after realizing that selling clothes had become overly common. She decided to venture into the craft center.

She told IGIHE that she sells no fewer than two thousand pieces of timber per month, each priced between 2500 and 3500 Frw.

She said, “Many things we need come from timber, and there is never a time when it’s not needed. This is the central point for all timber, making it quicker to access than in the city, which was congested. Today, this place is spacious and accommodates many people from nearly all the sectors of the district.”

The craft center also serves as a training ground for the youth, enabling them to develop skills for self-improvement through various crafts and trades.

On the other hand, another group of young people gathers in the Muhoza Sector at the Youth Center, also built with Enabel’s support, where they gain knowledge and skills in technology, entrepreneurship, and job hunting.

Mwamarakiza Martin, who now provides technology services in Musanze City, told IGIHE that the knowledge he gained from the youth center in the district enabled him to become an entrepreneur and employ his peers.

He said, “I had just left school in Butare and felt like a student who hadn’t reached the level of doing things to sell. But here, they were a good example of how I could start my own project, how to procure things and sell them, especially as technology involves mostly using your brain and buying a few tools to achieve what you want.”

The Mayor of Musanze District, Nsengimana Claudien, told IGIHE that the projects developed in partnership with Enabel are helping residents, particularly the youth, to conduct research and advance themselves.

He said, “They helped us build the youth center where they gather and the equipment within that building, enabling them to conduct research and enhance their knowledge because it is a center equipped with modern technology and tools. It helps the youth in conducting research, such as farmers finding modern farming methods, students enhancing their education quality, and various groups benefiting from the center.”

Mayor Nsengimana stated that the Musanze Craft Center plays a role in boosting the economy of the residents as it accommodates over 700 workers.

“Their families are sustained because of the income generated from the work they do there, and it continues to help various people create jobs.”

The Youth Center cost 1.7 billion Frw to build, while the craft center cost 1.5 billion Frw.

Currently, the Musanze Youth Center receives around 600 visitors seeking job opportunities and entrepreneurship training, 700 monthly visitors seeking reproductive health services, 500 monthly visitors using computers, and approximately 9,000 participants in sports and recreational activities.

President Kagame said that some powerful entities have not been responsive to calls for reforming the existing financial systems due to fears of losing influence and control over the sector.

The Head of State spoke on Wednesday, May 29, during the presidential dialogue on the topic “Africa’s Transformation, the African Development Bank (AfDB), and the Reform of the Global Financial Architecture” at the AfDB annual meetings in Nairobi, Kenya.

He emphasized that it was a “no-brainer” that financial systems designed more than 50 years ago are no longer viable today.

“Things have changed, and therefore, a rethink of a new design that fits the purpose must be put into play. There is no doubt about that. I think everybody understands that point, but there are interests that operate behind it. For us in Africa, we are hard-pressed to see there is a change in the design of these institutions. But maybe the way the institutions are set up benefits some parts of the world. Those in those parts of the world are not interested, or they are being slow in allowing the change to happen because it gives them control and say over other people’s resources,” President Kagame stated.

“Everybody understands [that reforms are necessary]. What is complicated is reaching this understanding and compromising that we don’t lose anything by having everybody benefit as we should benefit, all of us.”

President Kagame also noted that for Africa to achieve the much-needed gains, the continent must be united and speak in one voice.

“Africa’s interests must be taken care of, beginning with ourselves…it has to be with one voice but also loud, clear, and effective. For that to happen, we think about working together,” he said.

“The reform we are talking about is how to disrupt the current architecture so that it includes significantly and visibly the interests of our continent.”

He said the rest of the world can not afford to ignore the African continent as it’s the only region that will have a growing middle-income class in a “few decades”.

“In a few decades, the only place in this world that will have a growing middle class is Africa. So it is even in the interest of the rest of the world that has marginalized Africa to contribute to the wellbeing of our continent. Because the growth of Africa, based on this middle-class, feeds into the growth of the rest of the world,” President Kagame said, adding “But Africa cannot wait to be handed this opportunity by anybody else, we therefore must be on the frontline, fighting for this right, for ourselves but also which contributes to the wellbeing of the rest of the world.”

The presidential dialogue was part of the five-day 59th Annual Meeting of the Board of Governors of the African Development Bank and the 50th Meeting of the Board of Governors of the African Development Fund taking place at the Kenyatta International Conference Center (KICC).

Kenya’s President William Ruto, who was among the panellists, also emphasized that the reforms were long overdue and should solve the continent’s most pressing issues including climate change.

“The issue of reforms is settled; it must be done. We need a financial architecture that has long-term financing, with 40 years or 10 years grace period, low-interest rates, concessional financing, including where possible grants. We also need financing at scale; the quantum is very important. We also need finance that is agile, flexible, and especially climate-sensitive. So, if there are shocks, that financial architecture must be responsive because climate change is the new normal,” President Ruto explained.

“Switching from drought to floods progressively is becoming what it is. In Kenya, we had a drought a year ago that decimated 2.5 million herds of livestock. This year alone, we are on floods that have taken the lives of 200 Kenyans. So, this is the new reality. The financial architecture that must be in place must respond to this climate reality we have.”

The Annual Meetings comprise Member States’ invitation-only sessions, closed bilateral meetings, as well as events open to all attendees, including the press. They provide a forum for Bank Group Governors to share their experiences with managing a mounting burden of public debt, which has surged following the global economic shocks of the last few years.

The meetings also offer a forum for the delegates to examine the African Development Bank’s contribution to Africa’s socio-economic transformation.

Speaking during the Zimbabwe-Rwanda mid-term review meeting of the 2nd Joint Permanent Commission on Cooperation, which kicked off in Harare on Monday, Rwanda’s Ambassador to Zimbabwe, James Musoni, said the two countries had achieved commendable progress on various Memoranda of Understanding (MoUs) signed in recent years.

“Today, as we review our achievements and challenges, I am pleased to report that our joint endeavours have yielded remarkable results in various key sectors for example in the political and diplomatic sector, our relations have grown to a remarkable level, where both countries support each other in regional, continental and international matters of common interest,” Ambassador Musoni affirmed.

The ambassador also lauded partnerships in the education sector where more than 150 teachers and lecturers from Zimbabwe have been in Rwanda reinforcing the local teaching working force for about two years.

“We have also recorded remarkable achievements in our Defence and Security sector, there have been exchanges and training of senior and Junior officers in the army, and correctional service,” Musoni added.

In the energy sector, the ambassador said, Rwanda Energy Group (REG) and Zimbabwe Electricity Supply Authority (ZESA) had completed the pilot street lighting project in Harare and also finalized the access masterplan advisory services as outlined in the MoU signed in 2020.

Additionally, in the trade and Investment sector, both countries have been hosting the business forum on a rotation basis.

“The recent [business forum] took place in Rwanda in March 2024 and a number of businesses are being established in both countries as a result of the excellent cooperation between our sisterly nations,” he added, further emphasizing the need to use the JPCC as a stepping stone to further collaborate at the regional and global levels.

Albert Ranganai Chimbindi, the Zimbabwean Secretary for Foreign Affairs and International Trade, said the meeting was aimed at assessing the progress of work on the decisions made during the 2nd Session of our JPCC, which was held in May 2023.

Chimbindi praised the remarkable strengthening of ties between Zimbabwe and Rwanda over the past four years.

“Allow me to acknowledge the excellent bilateral relations that subsist between the Republic of Zimbabwe and the Republic of Rwanda. I am pleased to say that since we embarked on the journey of our Joint Permanent Commission on Cooperation in 2020; our relationship continues to grow from strength to strength. In addition, the continued engagements by our two Presidents at various fora and the continued exchange of high-level visits, testify to our blossoming relationship,” Chimbindi stated.

He added, “I do acknowledge, with satisfaction, the positive discourse that is taking place in the Political and Diplomatic, Defence and Security Cluster. I am particularly impressed by the continued collaboration in our Political and Diplomatic Consultations, where parties continue to support each other on bilateral, continental and international issues of mutual concern and interest.”

In a statement, the IMF said the disbursement of the funds follows the conclusion of the third review under the Policy Coordination Instrument (PCI), the arrangement under RSF, and the first review under the SCF arrangement with Rwanda. The Executive Board’s decisions were taken without a meeting.

“Despite challenging external conditions and ongoing fiscal consolidation, Rwanda’s economy maintains robust growth. Going forward, the policy mix should prioritize macroeconomic and financial stability, fiscal sustainability, and the restoration of buffers,” IMF said.

Notably, RSF provides affordable long-term financing to countries undertaking reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness, while PCI is a non-financing instrument open to all IMF member countries.

On the other hand, SCF provides financial assistance to low-income countries (LICs) with short-term balance of payments needs.

The funds will, among others, help the government in its efforts to mitigate the impact of last year’s deadly flooding.

According to the IMF, sustaining the strong reform momentum under the RSF will enhance Rwanda’s economic resilience to future climate shocks.

“Going forward, the policy mix should prioritize macroeconomic and financial stability, fiscal sustainability, and the restoration of buffers. A carefully planned fiscal stance is needed to mitigate the impact of the 2023 floods while maintaining a credible and balanced fiscal consolidation over the medium term,” IMF added.

“Monetary policy should target inflation within the desired range, while maintaining exchange rate flexibility to manage external shocks. Furthermore, vigilant oversight of financial stability risks, particularly concerning large exposures and rapid credit growth, is important.”

The disbursement comes two months after IMF staff and Rwandan authorities reached a staff-level agreement on policies needed to complete the financing reviews.

The agreement followed the conclusion of a two-week mission led by Ruben Atoyan, who visited Kigali from 11–22 March 2024, to discuss the authorities’ policy priorities and progress on reforms regarding the reviews.

At the conclusion of the mission, Atoyan praised Rwanda’s economic gains and resilience, notwithstanding the challenging external environment.

“The 2023 GDP growth continued to be robust at 8.2 per cent year-on-year, on the back of strong performance in services and construction, as well as recovery in food crop production in the second half of the year. Inflation decelerated sharply in recent months. Headline inflation was 4.9 per cent in February 2024, down from the peak of 21.7 per cent in November 2022, owing to appropriately tight monetary policy stance and favourable developments in food prices as agricultural production rebounded at the end of last year,” Atoyan stated.