Kenya Ripping Benefits of East African Community membership.
A few years ago, EAC ( East African Community) made it easy for business to expand beyond borders; Kenyan banking titans seem to have taken the opportunity with both hands. The East African reports that “Rwanda is now the most profitable market for Kenyan bank subsidiaries in the region, overtaking Tanzania where the lenders face a challenging business environment.” It further reports that 29% of all the banking profits from abroad comes from Rwanda; that is a significant ROI given the relative small size of the population in Rwanda compared to neighboring countries like Uganda and Tanzania.
The kenyan banks that have branches in Rwanda include but not limited to Equity Bank, KCB Group, I&M, and CBA. The later is owned Uhuru Kenyatta. The family spend nearly $10 million to acquire Crane Bank Rwanda.
Rwanda overtakes Tanzania — which was the best performing market in 2016. It is understood that Rwanda has 55 subsidiaries of Kenyan banks.
THE VISIT to one of the smallest nations in the heart of Africa dusts off an old bromide: Rwanda has a great future–and always will. This lash, green, county-size country seemingly made enormous strides after going through a disastrous political dégringolade that led to Genocide in 1994, and all the crisis to follow in the aftermath. Inflation was halted, and antibusiness regulations were eased. Combined with the global trade boom of the last decade, these measures sent Rwanda’s economy roaring ahead, and the country’s GDP exponentially climbing over the last few decades. It looks as though Rwanda has made the leap to developing status and is, in terms of the size of its economy growth, ready to surge past neighboring countries as Burundi and DRC. It is been proved that Rwanda is showing positive signs of competing in the global market.
Source: World Bank
As I have recently spoken in an assay about Foreign aid to Africa, nations that change their mentality of waiting for aid, but focus on growing markets and trade eventually start to grow their economies. Rwanda is now the most competitive place to do business in East Africa and 3rd in Africa. Rwanda is now politically stable with well-functioning institutions, rule of law and zero tolerance for corruption. It has an 8% average year-on-year GDP growth, stable inflation and exchange rate. These impressive achievements by Rwanda are driven by a clear vision for growth through private investment set out by President Kagame. He has held incentive meetings around the world calling for investments in Rwanda, and he’s adopted a culture of cutting foreign aids little by little with a goal of making Rwanda self-sufficient.
President Kagame, assumed office on 24 March 2000, largely prevailed compared to other candidates to win a second term. The big question was whether he’d turn away from the statist policies that have long plagued and crippled Rwanda’s economy or place his country firmly on the road to the perdition of likes of Burundi and DRC, where stagnation, shrinking political freedom, populist demagoguery and corruption were the norm.
If some wants Rwanda to become a global economic powerhouse rather than an oversize backwater, that person is Paul Kagame. When you online to the World Bank’s annual study and ranking of 189 economies, Doing Business, which measures “the regulations that enhance business activity and those that constrain it.” Rwanda rates excellently, with an overall ranking of 3rd on the African continent. Four categories stand out in which Rwanda wins.
– Starting a business.
Starting a business has never been simpler or faster. To register a local enterprise or a foreign subsidiary, the Rwandan Development Board (RDB) provides a quick and efficient registration service allowing to have a business incorporated within 6 hours. The process involves simultaneously obtaining the certificate of incorporation (business registration), Tax Identification Number (tax registration) and the Social Security registration for employee pension submission.
– Dealing with construction permits.
Thanks to Kigali’s new online Construction Permit Management Information System (MIS)—implemented with the support of the World Bank Group’s Rwanda Investment Climate Program in partnership with Investment Climate Facility for Africa. The technology makes acquisition of construction permits faster, simpler, and easier by automating the procedures for application processing and review. In addition, it improves the management information provided to the Kigali’s construction one stop center and Department of Urban Planning.
– Registering property.
– Paying taxes.
Of course, one should mention the socio-economic changes that are apparent due to the acculturation. The globalization of our planet has seen Rwandan kids going to schools abroad and for instance the Huffington post recently said, “Rwanda Could Be The Next Silicon Valley: But it Needs Youth to Help it Get There”. There’s power in youth of Rwanda. Tech Startups, nonprofit foundations and nationwide economic projects are being risen by the Rwandan Youth.
Africa’s cleanest city, Kigali, is seeing its skyline being transformed at the fastest pace ever by Asian developers building governmental towers. Despite concerns that too many are going up, there are excitements among the citizens about the future of the capital of Rwanda
Companies including The Korea International Cooperation Agency (KOICA), Gasabo Investment Company and Fair Construction Limited have flocked to build high-rises in Kigali as lifestyles change and the nation moves towards a sustainable economic raise. Several buildings taller than 20 meters are being planned or built, the most on record, according to the Government.
The level of building is unprecedented.
Overseas developers are responding to a shift away from the great Rwandese dream of a life centered on backyards and tall brick fence. They’re also reacting to ever-increasing demand for new, centrally located apartments from buyers seeking to escape their own faltering housing market and improve their quality of life.
About 30,000 apartments are in planning or construction across all of Kigali by Gasabo Investment Company, according to the official website of the enterprise.
Kigali is Irresistible.
The City’s master plan shows how the skylines will be implemented in the City. Apartments will have the greatest views, and the population will not resist to shift from the rural area to the capital.
Not long ago, I was chatting with my American friends, and it came to my observation that most Americans think of Africa as a country rather than as continent. In fact, it is somewhat egregious to see that the United States has decided to screen everybody who comes from the Continent for Ebola as if Africa is one village. This behavior sums up how the idea of Africa has always been treated as one nation. The rich, diverse, and big continent of Africa shouldn’t be treated as if it is a small and poor country that the rest of the world has always tried to ignore. Therefore, I am encouraging all other nations of Africa to screen for Ebola US Citizens who visit the continent. This is not because of some blind pessimism, but because there has been cases of Ebola in the States. Some people may find not feel the need of screening for US visitors. But this doesn’t disappoint.
What disappoint the most is that the US will not tolerate whoever enters its boarder while coming from Africa. In fact, a few weeks ago, kids from Rwanda were denied to go in class in New Jersey, not because they had Ebola symptoms, but because they were simply from Africa. This idea struck my mind, and it made me realize that until Africans start to speak out for themselves, they were be oppressed. Africans need to stand out and defend their dignity. What is shameful is that Rwanda, a country in East Africa, had made a strong decision of screening travelers from Nations with Ebola cases, but unsurprisingly, after that some people found this decision to be schadenfreude, that decision was lifted.
Rwanda lifts its screening of Ebola cases. (Twitter screenshot)
Rwanda might have its personal reasons to stop screenings of US and Spain citizens, but few will deny that it is a moral obligation for one to protect him or her self from contamination. If HIV is a bed bug pain, Ebola is a lion bite pain–interesting analogy, but the bottom point is that it is absolutely ok to do everything possible to protect yourself from the Ebola outbreak. Africans nations should not act under fear of loss of aid, and other similar international attachments. Therefore I am calling African countries to start screening people who visit them. I prefer antiseptic over aseptic. The Ebola outbreak should be stopped.