1. Infrastructure
The road system in Rwanda has greatly improved in the recent past with primary roads being well maintained. Rwanda is well linked to neighboring countries such as Uganda all the way to Kenya. This ensures easy movement of goods from the port of Mombasa into the landlocked country. The Kigali International Airport serves as the country’s main gateway for air transport. RwandAir, the country’s national carrier, is one of the fastest-growing airlines in Africa. This serves for both domestic and international transport. The country has a well established internet and telephone communication system.
The Rwandan government sponsored the establishment of a fiber-optic cable project in 2011, which has greatly improved telecommunication services and increased the amount of mobile cellular internet access. The broadband download speeds are also quite high in the country with availability of 4G LTE internet access. The fast internet has enabled the country to roll out more banking solutions, which enable customers to access banking services throughout the country, ensuring smooth running of businesses. Most government services can also be accessed through the e-government internet portal known as Irembo without necessarily having to travel to the capital city.
2. Educated Youth
Rwanda is one of the top-performing countries in education in the Sub-Saharan Africa. 98 per cent of children are enrolled in primary school. The country operates a 6-3-3-4 education system. This means 6 years in Primary School, 3 years in Junior Secondary School, 3 years in Senior Secondary School and 4 years in University Bachelor’s degree. The Rwandan government has done a great deal in offering education to the youth in order for them to offer a professional workforce for businesses. This includes the introduction of free education by the government in 2003. The government has also increased the share of the national budget allocated to the education sector. The quality of education is considered reasonably high, with Rwandan university admission being highly competitive especially in fields like medicine, engineering, law and pharmacy. Each year, Rwanda’s tertiary institutions enroll over 44,000 students in certificate, diploma, undergraduate and graduate programs. To be eligible for the Rwandan job market, one is required to have a Bachelor’s degree as the basic academic level. Every business requires skilled professional workers and this can be readily found among the youth in Rwanda.
3. Security
Levels of crime in Rwanda are extremely low making Rwanda to be one of the safest countries in Africa. The locals are very friendly, welcoming and hospitable. The Rwandans value their safety and the police are very efficient and professional ensuring that Rwanda is safe to carry out businesses.
4. Employment Rate
Rwanda has got one of the highest densities in the world. This makes the rate of unemployment to be quite high because there are not enough businesses for the high population. When starting up a business in Rwanda, finding labour will not be a great challenge.
5. Corruption Perception
In Africa, Rwanda is considered as one of the least corrupt countries. This is because of the political will, enforcing of laws and awareness campaigns. The use of ICT in services such as recruitment has greatly reduced corruption as there is no physical contact. The government of Rwanda has created a transparency culture and accountability to combat corruption. Having a business in a corruption free zone makes it easier to run the daily activities of the business.
6. Government Regulations
In Rwanda, the laws and regulations support the growth of business. Business registration, taxation and fees are not a great challenge for any growing business in Rwanda. The laws also ensure equal treatment of locals and foreigners in business. This has contributed to improving the business environment.
7. Political Stability
Lack of political stability in a country hinders production from taking place hence there cannot be economic growth. Paul Kagame, the president of Rwanda, has established a firm personal control over the Rwandan politics, creating the political stability required for economic development. The political stability has created a business friendly environment and diversified the economy from agriculture to several services and manufacturing sectors.