Economics Pa

  Most often we economists are very often studying the poorest countries in the world not simply to analyze grimy statistics but to find ways by which these countries could embark on paths toward transformation. Think about it for a second: Burundi, South Sudan, Somalia, Central African Republic, Niger, Chad, Mali, Yemen, Burkina Faso, and Sierra Leone-all have held the title of "poorest," though with so much potential and resources lying under their feet. They stand at the threshold of transformation, notwithstanding that heavy burden of poverty, political instability, and infrastructure deficits. By reinventing their economies and leveraging even modest strengths, these countries can break free from the chains of poverty. What helps knit them together is their shared heritage of turmoil: political turbulence, continuing conflict, and economic precariousness have been nothing short of traveling companions. The resulting turbulence discourages foreign investment, disrupts e...

  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...

  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...