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Botswana and Rwanda: the most dynamic economies in Africa

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Botswana and Rwanda have shown in recent years indicators of growth and development that stand out in their region. The key: a long-term vision

Botswana and Rwanda: the most dynamic economies in Africa

Botswana and Rwanda have been characterized as the economies with the highest economic growth in Africa in recent years. Both nations have built an efficient model of economic development in a continent immersed in a historical trajectory of violence, poverty, war, and segregation.

Leer en español: Botsuana y Ruanda: las economías más dinámicas de África

In the case of Rwanda, it should be noted that the extremist elements that led to the genocide of about one million Tutsis and moderate Hutus, made the construction of a stable economic system a challenge since it is a state that is still living the aftermath of ethnic conflict.

On the other hand, Botswana had enjoyed relative stability since its independence in 1966, when it changed from one of the poorest countries in the world to a country with a growing middle class. Besides, it should be emphasized that despite having ethnic differences, Botswana has never been at a high risk of conflict. According to a study conducted by Stephen McLoughlin in 2014, Botswana would be one of the African countries with the lowest risk of interrupting its economic development due to ethnic conflict.

Botswana: commitment to the development

For 2018, Botswana showed a growth indicator of 4.4%, reinforcing the country as an example of a successful case for the region. In the case of Rwanda, in 2018, the state would show a growth of 8.6%, higher than the record of 7.2% in the last ten years, according to figures from the World Bank.

According to the United Nations Development Agency (UNDP), Botswana would be "one of the true successes of Africa's economic and human development." Its success lies in a significant wealth in diamonds, the first implementation of local governance policies, and proper management of economic resources to boost the country's emerging industries.

Kebapetse Lotshwao, a professor at the University of Botswana, emphasizes that the first forty years of the country have been especially successful because leaders like Seretse Khama and Ketumile Masire, gave priority in the early years of the State to development above everything else, according to an interview with BBC Mundo. International aid and income from the diamond market were used in social investment and education to create one of the most stable countries in the region.

Rwanda: a long-term vision

Concerning Rwanda, according to the National Institute of Statistics of Rwanda (NISR), "the increase in economic growth is due in large part to the good performance of key sectors such as agriculture, due to the impressive harvest and livestock products."

There is an optimal business environment in Rwanda, since, through investment, sectors such as agriculture, industry, and the service sector have enjoyed a gradual growth in the last decade.

This growth has been possible due to the implementation of the Rwanda Vision 2020 program, which aims to maintain annual economic growth by 7% through the jump from an agricultural economy to a knowledge economy, according to information from the official plan.

Two cases from which you can learn

Finally, it should be noted that 2018 was a year in which the African region stood out for setting trends in the intellectual and political economy aspects, which has generated expectations for the coming years. The vice president and chief economist of the African Development Bank Group stressed that last year marked a new moment of independence for the continent in economic and commercial terms, by adopting an independent position regarding the relationship with the major trading powers.

In the case of Rwanda, its economic dynamism marks an example of this phenomenon, since despite being a relatively small state without a seaward exit, it decides to implement a system of tariffs independent of the tax imposed by the United States in the region for to develop your industry.

Also read: Which Latin American countries continue on the list of tax havens of the EU?

Based on a study carried out by El Espectador, it is highlighted that one of the motivations for implementing recursive and dynamic economic models is due to the economic, political and social need to test innovative development strategies through the intellectual freedom that involves drawing their course.

Meanwhile, Botswana and Rwanda stand out as a prominent example of the success of charting their economic model through unconventional models, the implementation of these strategies shows a new direction towards the knowledge economy and intelligent governance, with adapted models towards the needs and the African regional context.

It should be noted that there are still factors that should be addressed in the case of Rwanda, such as social inclusion and the implementation of a more inclusive political model. As in Botswana, where there is a severe problem of unemployment and droughts, which affect the agricultural sector notoriously. However, in an increasingly multipolar world, the dynamism and economic victories of both countries should be highlighted as good practices towards development.

 

LatinAmerican Post | Alejandra Caballero

Transalted from "Botsuana y Ruanda: las economías más dinámicas de África"

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