In an exclusive interview with CNBC Africa, Tesi Rusagara, the Minister of State for Public Investments and Resource Mobilization, outlined Rwanda's strategic plan.
Among the key targets are doubling exports to $7.3 billion and increasing private investments to 21.5 per cent of GDP. These efforts are part of a broader vision to transform Rwanda into a lower-middle-income country by 2035 and an upper-middle-income country by 2050.
"Taxation plays a crucial role in financing investments and attracting private sector participation," Minister Rusagara stated. Thus, the government aims to raise the tax-to-GDP ratio from 14 per cent to 18 per cent over the next five years through comprehensive tax reforms.
These reforms are designed to widen the tax base and increase domestic resource mobilization. For example, previously exempt sectors, such as financial services and ICT, are now included in the tax framework to align with Rwanda's growing economy.
The government is also mindful of the potential impact on consumers and businesses, particularly in sectors sensitive to inflation like fuel and food. Special measures are being implemented to monitor and mitigate these effects.
The tax reforms also aim to encourage positive behavior. For instance, the government is offering tax waivers on electric vehicles to promote the adoption of green mobility. These incentives are part of a broader strategy to ensure sustainable growth while addressing environmental concerns.
Public-private partnerships (PPPs) play a crucial role in Rwanda's development agenda. Minister Rusagara emphasized that despite a global decline in grants, Rwanda continues to attract both local and foreign investments.
This reflects strong investor confidence in the country's manufacturing, agriculture, and ICT sectors. "PPPs are essential in leveraging capital, expertise, and innovation to drive infrastructure development," Rusagara said.
Investments in critical infrastructure, including roads, ICT, and hospitality, are central to the government's vision. These projects not only improve connectivity but also stimulate job creation and ancillary industries.
Looking ahead, Rwanda remains focused on enhancing its international financial sector to attract investors and solidify its position as a stable and lucrative market in Africa. The government is optimistic that its strategic initiatives will drive long-term economic prosperity.
With a clear roadmap and a commitment to sustainable growth, Rwanda is poised to achieve its ambitious development goals and emerge as a leading economy in the region.
IGIHE
