Some reports rank Rwanda as the second best place in Africa to start a business. This is due to a fast business registration process, security and infrastructures made available for business starters. However, some of these freshly started businesses don’t last for long due to varying factors including poor management systems and insufficient capital, among others. Rwanda Development Board Manager Francis Gatare told media that businesses should strive to be sustainable if they are to be maintained operational.
Statistics show that in Rwanda 60% of these new businesses dislocate due to some of the factors highlighted above.
The big number of these businesses results from the facilities set up by the Rwandan government for businesses to emerge.
Yesterday, the Rwanda Development Board CEO Francis Gatare said that this situation whereby businesses emerge and disappear has a negative impact on the economic stability of Rwanda.
This year provisions state that private investments will help Rwanda earn not less than 1.3 million$, as affirmed by RGB manager Francis Gatare.
He added that over 65% of incomes generated by investors have been collected from foreign investors.
The small investment from Rwandan investors is due to the fact that big projects require huge investment capital and this becomes a challenge to most of Rwandan investors.
Gatare said that both big, middle and small businesses are welcome.
However, he added that some of ineffective businesses should be closed if the deplorable situation in which they operate persists.
He, additionally, said that these businesses are not as many as in other nations.
Effective business owners are the ones who shift from an ineffective business for another one that is more profitable and self sustainable, he advised.
The recently world bank report ranked Rwanda as the 56 best business place in world and the second in Africa.
This is a good news but more is still needed for business owners and policy makers to sustain emerging businesses so to be more productive.
UM– USEKE.RW
