Rwanda EAC's most competitive economy - CNBC Africa

Rwanda EAC's most competitive economy

East Africa

by Elayne Wangalwa 0

Rwanda, a country once marred by violence has steadily emerged to be one of Africa’s fastest growing economies. PHOTO: Getty images

The country was recently ranked as the most competitive nation in the East African region largely because of its superior political stability.

(READ MORE: Rwanda, Algeria amongst Africa's most competitive)

According to a report by the World Economic Forum (WEF) on Global Competitiveness which gages the competitiveness of 144 nations cantered on 12 pillars that include institutions, infrastructure, health and education, labour market efficiency, innovation among others, the East African nation was ranked favourably in its flair to entice and retain foreign investment compared to other countries.

Teddy Kaberuka an economic analyst in Rwanda believes the country has earned its third position within sub-Saharan Africa and 62 countries worldwide.

“I think one of what has been achieved and everyone can see is in different aspects of the report. If you can remember all the indicators that have been placed, things like health, education and the standard of living in Rwanda experienced tremendous changes within those sectors. As well as governance, people really enjoy the governing structure. People are given a chance to participate in the governance of the country,” Kaberuka said.

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The country which is committed to sustainable economic growth has made impressive progress in rehabilitating and stabilising its economy. Rwanda’s swift and positive actions taken by the government has ensured the country maintains a decade-long period of strong economic growth with its impressive GDP growth has often been approximately 8 per cent.

“With the economic development plan for Rwanda, there is a lot to be done especially in the sector where Rwanda ranked very low. In the next report Rwanda will perhaps rank higher than it is now,” Kaberuka said.

Rwanda launched a medium-term strategy, the Economic Development Poverty Reduction Strategy which gives a clear direction on how the country can become a middle income country.

(READ MORE: Fitch upgrades Rwanda to 'B+' with a stable outlook)

The Country got backing earlier in the year on a renewed commitment by the World Bank to scale up its support to its economic strategy over the next four years. This commitment will see the country receive between 200 million US dollars and 250 million US dollars extra funding per year to aid the country’s economic growth.

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