Research and consulting in Rwanda
IOA has documented the post-civil war resiliency of Rwanda by conducting extensive research and consulting projects on the country. Our research has found that the economic growth experienced since 2000 has been led by services, particularly construction, financial services and tourism. As the country continues its long recovery from the 1994 Tutsi genocide, a government firmly led by a leadership often accused of autocracy must balance security with the freedoms required for national development. The small landlocked country must lastingly mend its ethnic division. Tension with neighbouring Democratic Republic of Congo over alleged Rwandan support of their rebels is a serious security problem.
Although improvement is required in economic freedom, IOA economists have noted that Rwanda has aggressively pursued structure reforms that have led to consistent economic growth in the past two decades. The local market is of growing importance to investors as living standards improve.
Key opportunities in Rwanda:
- Consistent economic growth is founded on large-scale investment and targeted government support of sectors like financial services
- Major foreign exchange earners – coffee, mining, tea and tourism – have additional growth potential
- Government has strived to extend the benefit in one of Africa’s fastest growing economies, resulting in actual poverty reduction
Key concerns/risks in Rwanda:
- Tension with the Democratic Republic of Congo has potential to worsen into armed conflict
- The ruling political party, the Rwanda Patriotic Front, has total control of governance and has been accused of human rights abuses
- Inflation has made the cost of living insurmountable for the poor and is even an issue for foreigners