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East Africa’s Top Investment Destinations: Why Rwanda and Kenya Lead the Way for Business Growth

  The "Business Ready 2024" report reveals the business climate of different economies, analysing those economies across three key components: the Regulatory Framework, Public Services, and Operational Efficiency. In East Africa, in this case, Rwanda, Kenya, Tanzania, and Uganda all differ one from another, each with its unique business climate that has different attractions for investors. Rwanda: First in Public Services and Operational Efficiency It is distinguished within the region for being highly efficient in business operation, with policies that put much emphasis on e-government and simplified procedures. Also, with heavy investment in digital infrastructure that allows businesses to easily access government services, it scores exceptionally in Public Services. This effort towards reducing bureaucratic red tape is what, altogether, makes Rwanda create a vibrant and easily accessible business environment, especially for its small and medium enterprises. The opera...

Rwanda’s Financial Journey: Mobile Money, Inclusion, and the Road Ahead

  I read the 2024 Rwanda FinScope Report with a mix of admiration and unease. At face value, the report reveals impressive achievements, with the financial inclusion rate in Rwanda standing at an astonishing 96%, up from 93% in 2020. Impressive, no doubt, but being an economist, I have to ask: Is there more to the numbers than meets the eye? An Impressive Achievement In making sure that people are financially included, Rwanda has undoubtedly gone a long way. Today, the country boasts 92% of its adult population being formally financially included, largely driven by mobile money services. The most impressive change can be seen in rural areas, where traditional banking services were absent. To the layman, this means that most Rwandans are able to access services such as mobile wallets and Umurenge SACCOs, which allow them to save, obtain credit, and make certain payments. For example, mobile money usage is flying high. Whereas in 2020 only 62 percent of Rwandans used mobile money, in...

Gabon's Economic Woes: An Economist's Take on Sovereign Spreads and Reforms

  I sat down to review Gabon's latest economic report, and within no time, a volley of impressions was made upon my mind. Again, a country gifted with an abundance of natural resources-especially oil-finds itself critically positioned economically. The government is passing through high borrowing costs due to the high spreads Gabon faces as a sovereign. The May 2024 report by the IMF on Gabon presented a sobering picture: despite high oil prices, Gabon's sovereign spreads have been alarmingly high, pushing the country's debt deeper into distress. This is no ordinary financial hiccup; it is, as a matter of fact, a symptom of deeper structural problems. The narrative surrounding Gabon's economy is that of addiction. Oil has fueled the nation's growth for decades, and this dependency is now exacting a heavy toll. About 40 percent of the country's GDP and two-thirds of its exports come from oil. But oil is a fickle friend. When prices are high, as they have been lat...