Rwanda: Unequal Distribution of National Investment at the Center of Slower Economic Growth of Rural Areas

Let us face it: there is more than leadership and management skills for any economy to perform well. Any economy needs money to grow. In  small economy like a typical Rwandan rural district; I am thinking of Gisagara and Ngororero, there is not always enough market-generated money for running the institutions let alone bolstering the economic growth. Usually, this is where the national investments are needed, especially for infrastructure. Again, in the case of a Rwandan district, these are the types of external investment from the central government or the FDIs (Foreign Direct Investment) directed to those districts. However, the rural districts; especially those in the Southern province, are not getting a fair share 

of either.

The RDB's report on the investment shows that only 6% of the country's investment went to the Southern province in 2017. Then, it would not be a surprise to  on why the districts from the South under-performed relatively to other districts like those in the West and East which respectively received 25% and 20% of the investment. This goes without saying that the South is only second largest province o the East, second to the West in population and second to Kigali in population density.  Maybe you would think that they set or should have set achievable goals  in their limits of their income. However, don't forget that districts official are under the pressure where they have to be compared measured and compared against the districts which have far more income. To give you a perspective, imagine that a district with the same population set the goal to increase electricity  do better unless of course if you are a district in Kigali city where the  tends to pour in.

With the Rwanda's policy for the districts to set  their annual Imihigo (goals), the districts national ranking of best performing districts and self-sustainability, by collecting the taxes within their boundaries; it would be of utterly important to start with equal investment in each district.  In my opinion that's how we will be able to ensure economic equality starting with equality in allocation of the country's revenues.

In 2018, over 2 billions of FDIs were in Rwanda and the top five investors: Emerald Park Ltd Millennial Construction Ltd, Rwanda Innovation Fund, Jali Transport and Mara Phones; are both based on Kigali. This is not a coincidence, but the same pattern that we have seen over and over again. Kigali, in all its might, is the only city with enough infrastructures and human capital that investors come looking for. For instance, look at the transport sector in Kigali which is moving towards Uber-model after nailing the Tap-and-Go model. However, the globally recognized innovation have not been adapted anywhere out of Kigali. This is true for many other initiatives like Kigali Industrial Zone, although the projects are in papers to boost industries in other provinces, it will be hard if places like Southern province are not allowed the economic stimulus that Kigali enjoys.

Another way to look at it, it's the Labour market. The thousands of graduates every year, most of them end up going to Kigali. Hence, rural areas are not only devoid of the resources to develop, but they're are also losing their top talents.

In conclusion, Rwanda have potentials to go beyond the economic barriers and to develop. However, for sustainable development growth, the central government should begin to make policies which equally favors development of whole country. It is not necessary that The investment be in the same sectors as those invested in Kigali. They can be tailored to each district's specific needs and context. But this should better be done earlier than later; and I'm confident that the country's leadership have a quick and impactful solution in plans.