Private Sector Urged to Focus on the Economic Transformation Agenda of NST2

By The Inspirer.

Entrepreneurs and investors in Rwanda have been called upon to actively participate in the second phase of the National Strategy for Transformation (NST2) to ensure the country achieves its set development goals.

This appeal was made during the CEO Forum held on Friday, November 15, 2024.

The forum, organized by the Rwanda Development Board (RDB), aimed to address challenges faced by investors and enhance their capacity for growth.

Jeanne Francoise Mubiligi, the Chairperson of the Private Sector Federation (PSF), highlighted that investors still face various challenges depending on the sector in which they operate.

These include delays in obtaining necessary permits to start businesses and lack of coordination among investment-related institutions.

She stated, “These challenges slow down the process for investors to scale up their operations to a higher level.”

She further noted, “Investors are highly appreciative of the five-year plan, which outlines the needs for national development and identifies opportunities for the private sector to grow their businesses.”

Mubiligi reaffirmed the private sector’s commitment to working with the government to achieve the objectives outlined in the five-year government agenda.

RDB Chief Executive Officer, Francis Gatare, emphasized that the private sector’s involvement is crucial for the country to reach its development goals. He urged investors to continue expanding their businesses.

Trade and Industry Minister Prudence Sebahizi explained that NST2 includes specific responsibilities for the Ministry of Trade and RDB, but achieving these goals relies heavily on the private sector.

He said, “To achieve these goals, we must encourage the private sector to support these government programs. This meeting with the private sector aims to share the agreed targets and strategies, understand their commitments to support these goals, and address the challenges they face in business.”

The Government of Rwanda requires over RWF 63 trillion to implement all the projects under the next five-year National Strategy for Transformation (NST2).

The private sector is expected to contribute over RWF 27 trillion, accounting for 43% of the total funds needed.

Under NST2, the government aims to achieve an annual economic growth rate of 9.3%.

To realize this goal, productivity across all economic sectors must increase.

Agriculture is expected to grow by over 6% annually, while the industrial and service sectors are projected to grow by more than 10% per year.

This growth will be accompanied by an increase in locally manufactured goods under the “Made in Rwanda” initiative, which will significantly boost exports, projected to grow by 13% annually.

Additionally, private sector investment is expected to rise from $2.2 billion (15.9% of the Gross Domestic Product) to $4.6 billion (21.5%).

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