Rwanda tops EAC in Global competitiveness
RDBâ€™s Claire Akamanzi
Rwanda has moved up by seven places this year to 63rd position out of 144 countries compared to last yearâ€™s position in the World Economic Forum Global Competitiveness Index (GCI).
In the 2012-2013 competitive index, Rwanda maintains the third in the sub- Saharan African region after South Africa (52nd) and Mauritius (54th) and first in the East Africa Community ahead of Kenya (106th), Uganda (123rd) and Burundi (144th).
The top three countries in terms of competitiveness in the world are Switzerland, Singapore and Finland respectively.
Speaking on Rwandaâ€™s rise in the ranking from 70th last year to 63th this year as outlined in the Global Competitiveness Report 2012-2013, the Acting Chief Executive Officer of the Rwanda Development Board, Claire Akamanzi said.
â€œWe are encouraged by this ranking, it is a result of extensive efforts by government to create a more conducive business environment, increase innovations, improve the skills of our people through trainings and higher education and improve service delivery in order to compete globally.â€
The report analyzed 144 countryâ€™s competitiveness based on 3 main sets of factors including; Factor driven requirements (Institutions, Infrastructure, Macroeconomic environment, Health and primary education); Efficiency enhancers (Higher education and training, Goods market efficiency, Labor market efficiency, Financial market development, Technological readiness & Market size); & innovation driven factors (Business sophistication & Innovation).
Rwanda is in the top ten globally in 11 indicators including days and procedures to start a business, public trust in politicians, Government investment in advanced technology and women in labour force, among others.
Rwanda also benefits from strong and well-functioning institutions, (ranking at 20th position) with very low levels of corruption and a good security environment.
It ranks at the 11th position in terms of its labor market efficiency.Â On the production and distribution of goods, Rwanda is benefiting from the effort that has been put in towards improving the business climate.Â The Financial market is also doing very well with a rank of 49.
For more than three decades, the World Economic Forumâ€™s annual Global Competitiveness Reports have studied and scaled the many factors underpinning national competitiveness.
From the onset, the goal has been to provide insight and stimulate the discussion among all stakeholders on the best strategies and policies to help countries to overcome the obstacles to improving competitiveness.
In this report, Rwanda, together with other 37 countries, belongs in the first stage of development-factor-driven economies. Those economies are mainly factor-driven and compete based on their factor endowmentsâ€”primarily low-skilled labor and natural resources.