Features
Rwanda at a glance: Lessons for Sri Lanka?
Rwanda has a millennial history of kingdom governance. The people are called Abanyarwanda. They speak the same language, used to have the same traditional religion and believed in Imana (God). They have the same culture, ethics and moral values.
Until the 1960s when the Belgians brought a Republic model of political administration, Abanyarwanda had never known any high intensity inter community killings. In fact, they were and still are bound by one language Ikinyarwanda, religious belief and Igihango, a traditional blood pact that cemented the social bond and fraternal unity.
The colonialists introduced a divide and rule method of suppression, and the people who shared the same language, the same beliefs, the same villages, having intermarried across centuries, were told that they are so different ethnically; the Hutus, the Tutsis and the Twas, originally established based on socio-economic parameters with a social mobility structure, were codified as totally distinct ethnicities.
The consecutive two Republics of former Rwandan Presidents Mr. Kayibanda and Mr. Habyarimana exacerbated ethnicity and sectarian politics. They set a base for ethnic cleansing and later Habyarimanas government executed the 1994 Genocide against the Tutsi in Rwanda.
The Rwandese Patriotic Front led a revolution struggle and defeated the genocidal regime in 1994, after over 1 million Tutsi were slaughtered countrywide. Some Hutu were also massacred because they opposed the genocide commission.
Genocide perpetrators fled to neighboring countries, mainly to the DR Congo (then Zaire), and also to Tanzania and Burundi.
The genocide perpetrators were provided a safe haven in DR Congo and exported in DR Congo the genocide ideology. They killed and expelled to exile in neighboring countries and beyond the Congolese Tutsi.
Until today, the war in Eastern Congo is the result of killings and chaos brought to DR Congo by the Rwandan genocidaires now grouped in the FDLR (Forces Démocratiques de Libération du Rwanda). The Movement of M23 was created mainly by those Congolese Tutsi who have been marginalized and killed by their government and the FDLR. Later, their movement was joined by other factions of Congolese fighters. The fusion gave birth to Alliance Fleuve Congo (AFC), led by the former Congolese head of National electoral commission, Mr. Corneille Nangaa Yobeluo.
Rwanda has been facing existential threats from the DRC for three decades now. Consecutive governments of DRC and the FDLR have consistently hatched and executed plans to destabilize Rwanda.
Regional and international efforts to bring normalcy in eastern DRC have not achieved tangible results. However, recently, Rwanda and the Democratic Republic of the Congo (DRC) signed a U.S.-brokered peace and economic development agreement in Washington.
This accord aims to stabilize eastern Congo, and to encourage U.S. investment. The agreement includes commitments to cease support for armed groups and to establish joint security mechanisms. There have been many failed ceasefires between the DRC government and AFC/M23 movement, but this US-backed deal raises some optimism for lasting peace.
Economic view/Investment Opportunities
anda’s economy has shown growth with an ascending trajectory for the past two decades. The government has created a favorable business environment, with investor-friendly policies, tax incentives, and simplified procedures. These procedures have been the driver of the current development.
Rwanda’s economy experienced an 8.9% growth in 2024, up from 8.2% in 2023. This growth was driven by strong performances in the services and industrial sectors, each expanding by 10%, while agriculture grew by 5%. The GDP reached Rwf 18.785 billion, up from Rwf 16.626 billion in 2023.
The labor market showed significant recovery, with over half a million new jobs created in the fourth quarter of 2023. However, full-time employment remains limited, with only 2.8 million out of 8.1 million working-age individuals employed. Inflation, which peaked at over 21% in 2023, moderated to 5.0% by August 2024, within the National Bank of Rwanda’s target range.
For its strategic development plans, the government approved the second National Strategy for Transformation (NST2), a five-year plan (20242029) focusing on job creation, export promotion, quality education, reducing stunting and malnutrition, and enhancing public service delivery. The strategy aims to create 1.25 million jobs over five years and increase agricultural productivity by 50%.
The key sectors for investment include:
– Infrastructure
The ongoing projects in roads, energy, and telecommunications present opportunities for investments in construction and related services.
The projects in roads, airport, and railway offer opportunities for development and expansion.
– Agriculture
Rwanda’s agricultural sector is vital for its economy. There’s potential in coffee, tea, and horticulture production.
On the other hand, organic farming is also gaining popularity in the country.
– Energy
Power generation, off-grid solutions, are promising areas for investment. Renewable Energy: Investing in solar and hydropower projects is encouraged as Rwanda aims to increase its energy capacity sustainably.
– Tourism
With its unique natural attractions, Rwanda offers opportunities for hotel development, tour operations, and adventure tourism.
– ICT
Rwanda aims to become a knowledge-based economy, with opportunities in software development, IT services, and e-commerce. The Government is promoting Rwanda as a tech hub in Africa. Investments in Tech startups are encouraged, especially in Kigali.
– Manufacturing
Rwanda is working on becoming a manufacturing hub. Investors can explore opportunities in textile production, food processing, and assembly plants.
– Support for Investors
The Rwandan government provides favorable policies for foreign investors, including:
– Tax incentives
– Investment protection laws
– One-stop service centers for business registration
Tourism Opportunities
Rwanda’s tourism sector is growing rapidly. With its stunning landscapes and wildlife, investing in hotels, lodges, and tour companies is lucrative. Eco-tourism and cultural tourism are particularly promising.
– Gorilla Trekking
Rwanda is famous for its mountain gorillas in Volcanoes National Park. This is a major draw for tourists seeking wildlife experiences including golden monkeys, and other unique wildlife.
– Lake Kivu
A scenic lake with opportunities for boating, fishing, and relaxation. Visitors can enjoy water sports, and beautiful scenery along this picturesque lake.
– Akagera National Park
This Park offers safari experiences with a variety of wildlife, including the Big Five.
A savannah park with diverse wildlife, including lions, elephants, rhinos, leopards, buffaloes, giraffes, etc.
– Kigali Cultural Village
A hub for cultural exchange, with traditional crafts, music, and dance performances. Tourists can engage with local communities, experience Rwandan culture, and attend festivals.
– Historical Sites
The Kigali Genocide Memorial and other historical sites offer educational insights into Rwanda’s past and resilience.
– Eco-Tourism
Rwanda promotes sustainable travel, including forest hikes, bird watching, and conservation programs.
More factors contributing to Rwanda’s political and economic conducive environment:
Safety:
Rwanda is widely recognized as one of the safest countries in Africa. Indeed, it is the first safest country in Africa. It is also the second safest country in the world, for female solo travelers. Rwanda has a low crime rate and a high safety index, making it a secure place for both residents and visitors.
Efficient policing and strict law enforcement have been at the forefront of safety and stability, offering a sense of comfort and tranquility to the communities.
Travelers, including solo females, find Rwanda as a popular destination given its combination of adequate tourism infrastructure with the strong safety reputation.
Ease of doing business:
Rwanda is recognized as having an easy-to-do-business environment, particularly within Sub-Saharan Africa. It consistently ranks among the top economies in the region in the World Bank’s Ease of Doing Business index.
Rwanda’s high ranking is attributed to its pro-business policies and reforms, making it an attractive location for both domestic and foreign investment.
The country has made significant progress in areas like starting a business, dealing with construction permits, and getting electricity.
Rwanda offers preferential tax rates and incentives in strategic sectors, such as ICT, financial services, and energy.
The country’s political stability, low crime rates, and low level of petty corruption are also contributing factors to its ease of doing business.
Zero tolerance for corruption
Rwanda has a strong commitment to fighting corruption, adhering to a “zero tolerance” policy. This is evidenced by the implementation of the National Anti-Corruption Policy in 2012, the Anti-Corruption Law in 2018, and specialized anti-corruption courts.
The Government also actively promotes transparency and accountability through measures like digitizing public services, the whistleblower policy, to reduce opportunities for corruption.
In Rwanda, no person is immune from judicial suits when suspected of corruption behaviors.
Fiscal and non-fiscal incentives to back investment opportunities
The environment of investment and business has been boosted by Governments incentives to attract investors and sanitize the economic sector. Fiscal and non-fiscal incentives are some of the important Governments measures.
Fiscal incentives
Zero corporate income tax for companies planning to relocate headquarters to Rwanda
– 15% preferential corporate income tax for strategic sectors i.e. energy, transport, affordable housing, ICT and financial services.
– Accelerated depreciation of 50% for key priority sectors i.e. tourism, construction, manufacturing and agro-processing
– Exemption of capital gains tax
– Seven-Year corporate income tax Holiday for large projects in strategic sectors i.e energy, exports, tourism, health, manufacturing and ICT
– Repatriation of capital and assets.
Non-Fiscal incentives
– Quick business and investment online registration
– Assistance with tax-related services and exemptions
– Assistance to access utilities (water & electricity)
– Assistance with obtaining visas and work permits
– One stop center that provides notary services
– Provision of Aftercare services to fast-track project implementation.
One of the top contributors to UN Peacekeeping Missions:
Rwanda is one of the top contributors of troops and police to UN peacekeeping missions. In fact, it’s currently the second-largest contributor.
Rwanda’s participation in peacekeeping is rooted in a moral duty to prevent similar tragedies to the 1994 genocide against the Tutsi in Rwanda.
The service of Rwandan troupes has been exemplary in many ways. Discipline, civilian protection and lifesaving are the best characteristics that define the Rwandan Peacekeepers.
The highest number of female parliamentarians:
Rwanda has the highest percentage of female parliamentarians globally, with women holding 63.75% of the seats in the Chamber of Deputies. This is significantly above the global average and has been a national priority since the 2003 Constitution which mandated a 30% quota for female representation in parliament.
Rwanda has consistently topped the Inter-Parliamentary Union’s (IPU) monthly ranking of women in national parliaments, solidifying its position as a global leader in gender equality in parliament.
The increased representation of women in parliament and other public entities has been lauded for its positive impact on policy making and overall governance.
Rwandas political context has been strongly defined by deep colonial divisionism that marked the political life of the country until the 1994 Genocide against the Tutsi. The genocide ideology is still a danger lingering in the Great Lakes Region and spread wide online.
Despite the political hardship owing to the past environment of the worst genocide 31 years ago, Rwanda has maintained its economic growth. Good governance and rigor in public wealth management have contributed significantly to the overall development of Rwanda.
Moreover, Rwanda’s focus on sustainable development and its commitment to fostering a friendly business environment make it an exciting place for investment and tourism.
by Cally Alles,
Hon. Consul for The Republic of Rwanda in Sri Lanka
Features
Trump’s tariffs, AKD’s gazette and Sri Lanka’s diplomatic slumber
“We are rather respectable in Colombo. We go to bed fairly early, and we remain there till morning. “
According to Sri Lanka’s diplomatic folklore, the late S.W. R. D. Bandaranaike uttered these words while explaining the reasons for Sri Lanka’s abstention on the UN resolution condemning the Soviet invasion of Hungary. Apparently, SWRD’s foreign ministry officials were asleep at home when the diplomatic cable seeking instructions was received from New York. In those days, there were no cell phones, Internet, or even fax or telex machines. The diplomatic cables were sent through post offices. Decoding them was a slow and time-consuming process. Thus, the government could not provide appropriate instructions to our mission in New York in time, and the Sri Lankan delegation abstained on that sensitive UN vote.
Sri Lanka’s Absence from Section 301 Consultations
But then, how does one explain Sri Lanka’s absence from the crucial bilateral consultation held in Washington by the Office of the United States Trade Representative (USTR) during March-April on “Forced Labour” under the Section 301 of the US Trade Act of 1974? Didn’t our foreign and trade ministries send appropriate instructions to Washington in time? Even if the instructions from the foreign ministry were transmitted to our embassy in Washington by pigeon carriers, there was enough time for Sri Lanka to participate in those meetings.
In March, the USTR initiated these 301 investigations on 60 trading partners, and invited all of them for confidential consultations. Out of the 60, 46 participated in these consultations. Sri Lanka was not one of them. Other countries that didn’t participate in these consultations included China, Russia, and Venezuela! In addition to that, the Section 301 Committee conducted a public hearing with interested parties on April 28 and 29. Washington-based diplomats, representatives from few trade ministries as well as representatives from many foreign trade associations and chambers participated in these hearings. Sri Lanka was once again conspicuously absent.
As a result, when the USTR published the proposed forced labour tariffs on June 2nd, Sri Lanka ended up with a 12.5% duty. Pakistani and Indonesian diplomats participated in these consultations and took appropriate follow-up measures, and managed to enter the 10% duty category. As even a threat of a modest tariff hike could disrupt supply chains and reduce competitiveness, particularly in an industry such as garments, I discussed this issue on 15 June and underscored the importance of Sri Lanka’s participation at the next hearing, which was scheduled to be held from July 7th .
Awakening from Diplomatic Slumber and AKD’s Gazette
Fortunately, Sri Lanka finally awoke from weeks of diplomatic slumber, and Ambassador Mahinda Samarasinghe participated in the public hearing on 9 July, and promised, “…. · We have agreed to the text in our negotiations with the USTR on forced labour, …. The gazette as we speak is being printed and I’m getting the gazette tomorrow morning, and the gazette will be shared with USTR as I get it“.
As promised, President Anura Kumara Dissanayake issued a gazette on 10 July banning the imports of goods produced by forced labour. These new regulations are very similar to what Pakistan and Indonesia enacted in April, after their consultations with USTR in March. Why couldn’t we do it in April? Why did we wait till the very last minute?
Challenges ahead
“War is too important to be left to generals alone,” is a famous saying attributed to former French Premier Georges Clemenceau. Similarly, monitoring our main markets is too important to be left to diplomats alone. The United States is the largest single-country market for Sri Lanka. Therefore, Sri Lankan trade chambers and associations should become more proactive in these markets and participate in these events. For example, the chairman of the Pakistani apparel exporters association participated in the April hearings. Similarly, representatives from the Indian Agricultural and Processed Food Products Export Development Authority, the Federation of Indian Chambers of Commerce and Industry, the Confederation of Indian Industry, and Reliance Industries also participated in July hearings. At an event where each speaker is given only five minutes (strictly enforced), having a number of speakers from a country is an advantage. The presence of industry representatives in these kinds of events also help them understand the market dynamics and the future challenges. This is important, particularly because there will be many more challenges with Trump’s tariffs.
With the gazette issued on 10 July, Sri Lanka has imposed a prohibition on the importation of goods produced with forced labour. Now, the challenge will be to effectively enforce the prohibition. And what are the goods produced with forced labour? The USTR list only focuses on aluminum, cotton, electronics, lithium-ion batteries, rice, and tobacco. However, according to the U.S. Department of Labour, the list is much longer. Hence, this list may change continuously during the next two years and tariffs may fluctuate once again.
So, this is definitely not the time to slumber.
(The writer, a retired public servant, can be reached at senadhiragomi@gmail.com)
by Gomi Senadhira ✍️
Features
Tales of Mystery and Suspense 10 Casino for Sale
After the overwhelming grotesquerie of J K Rowling’s latest Cormoran Strike novel (written, I should have noted, as the others were, under the pseudonym Robert Galbraith), I thought I should return to the world of fun, and also a much shorter description since this thriller moves quickly without the layers of detail that Rowling engages in.
I then move to the second comic thriller by Caryl Brahms and S J Simon. This, their second story to feature Vladimir Stroganoff and Adam Quill, was Casino for Sale, as lunatic a romp as the first, though without the emphasis on the ballet that characterized A Bullet in the Ballet.
This one begins with the impresario Stroganoff buying a casino cheap from Baron Sam de Rabinovich, only to find that it was a rundown place, not the grand casino of La Bazouche, a resort on the Frenc+h Riviera, as he had initially thought. The grand one belonged to Lord Buttonhooke, and Stroganoff could not compete, until he thought of bringing the Ballet Stroganoff to the casino – which of course leads to Buttonhooke deciding to have ballet performances in his Casino too.
Stroganoff invites Quill to visit him, which Quill decides to do since he has left Scotland Yard, having come into a legacy. No one believes this, and he has to face questions as to what he did to have been sacked, with sympathy for having been found out.
The day he arrives in La Bazouche there is a murder, of a vitriolic critic called Citrolo, in Stroganoff’s office. He had been going to write a damning review of the opening night of the ballet and Stroganoff, when he realizes Citrolo cannot be swayed, drugs him and dictates the review himself to the papers. He leaves Citrolo sleeping and finds him shot the next morning, whereupon he decides to muddy the waters and leave a suicide note and lots of other murder weapons. So much overkill, as it were, of course ensures that he is arrested.
But the excitable French detective who makes the arrest follows up his suggestion that Buttonhooke was also involved, and so the two casino owners find themselves in cells next door to each other, with the detective Gustave quite happy to provide creature comforts for a fee.
Quill decides he must investigate, and finds Gustave most cooperative, since he has a laid back attitude to work. So it is Quill that finds a notebook which makes it clear Citrolo is an accomplished blackmailer, and that there are lots of possible murderers, including Stroganoff’s croupier, who was crooked, Rabinovich, who was now working for Buttonhooke, a confidence trickster called Kurt Kukumber, whose prospectus for a dud gold mine was found in the office and Prince Alexis Artishok who was engaged in a deal to buy diamonds from the ballerina Dyra Dyrakova.
Stroganoff had been trying to get Dyrakova to dance for him, but having done so previously she had refused. But then to Stroganoff’s chagrin she agreed to dance for Buttonhooke. The clearly crooked Artishok had told Buttonhooke’s mistress Sadie Souse, who was not very bright, that Dyrakova possessed diamonds she was willing to sell cheap, and Sadie was determined to have them.
Quill meanwhile finds out that there was a secret passage to Stroganoff’s office, the obvious solution to what had begun as a locked room mystery, and that this was known by almost everyone apart from Stroganoff himself. And then Rabinovich is murdered, just after Gustave had released his two original suspects, leading him to blame Quill for having insisted on that and thus allowing them to kill again.
Soon afterwards Dyrakova arrives, and the town is full of posters announcing that she will appear in the casinos, elaborate posters for either one, since Stroganoff is determined that she will dance for him, and if she does not come willingly, he has devised a scheme to make her do so unwillingly. So, though Buttonhooke has her taken off to his yacht immediately she arrives at the station, Quill along with Arenskaya gets her into a launch and to Stroganoff’s casino, where she performs to tumultuous applause, not knowing for whom she is dancing.
When Quill asked her about the diamonds, she said she had sold them long ago, and that gave Quill the solution to the mystery. Rabinovich had known about this, and Artishok had killed him to prevent Sadie learning it from him, he had killed Citrolo who had recognized him for an accomplished card sharper, not a Russian prince at all. But before he is arrested, he gets away in a boat, and the police launch that pursues him is on the point of catching him up when it runs out of petrol.
Again, lots of excitement, and entertaining references – Gustave grows marrows – and if not quite as brilliant as its predecessor, Casino was certainly a delightful read.
Features
The challenge of being positive about SAARC
It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.
Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.
However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?
There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.
The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.
Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.
Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.
The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.
On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.
In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.
Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.
Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.
The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.
These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.
Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.
There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.
However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.
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