The Accelerator Issue 6 by The Accelerator Magazine

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finale,

THIS MAGAZINE IS A LOVE STORY TO RWANDA My parents have always loved me, and that love sometimes involved them telling me when I did something wrong, when I did something right, and that love also involved them sharing their opinions on my future, society, history, and the culture that they and I am a part of. I learned through their love for me that there are always two sides to a coin, and that the beauty of life is the difference in our perceptions and opinions on the world of which we are a part. With this type of love, I not only learned to respect others, but to also respect myself: my strengths, my weaknesses, and most importantly, to learn from my mistakes while still daring to challenge, innovate, and ambitiously aim for the stars. This is what this country is about, this is why I feel at home in Rwanda, and this is why this magazine exists: for the love and progress of Rwanda. Among other things, this requires a strong and independent media, and The Accelerator is exactly this: a platform to address serious issues, success stories, to question the established, and to do it in a way that is responsible and appropriate to the context. Let’s not try to fool anyone: we live in a country full of challenges. People outside know this, and when they come to visit, invest, or be part of pushing for a better tomorrow, let’s give them a transparent insight to reality. They are going to love it, and there are a many others going to stick to Rwanda. That is the magic about this country. The Accelerator is in a very interesting phase of expansion – both online and in print – and our ambition is to be a Pan African media company – made in Rwanda. And good news for the environment: we’re now printing on recycled paper using nontoxic ink. Can we agree to agree that you not feeling comfortable with every article in our publication means that we all need to do our jobs better – and not that we are wrong in addressing challenges. Remember, going through life IS the feeling of a hard on and diarrhoea, two sides of the coin, the good, and the tough! No time to waste; let’s strive towards excellence.

ANDREAS NØRLEM

WE KNOW WHO WE ARE The clichés about entrepreneurship are right: the highs are high and the lows are low. Entrepreneurs are confronted by situations that you would never expect. We drink too much and sleep too little. We bleed – sometimes literally – for things that we (foolishly?) believe in. Failure often feels like it’s right around the corner. The entrepreneur is a particular type of person: creative and driven, energetic, perhaps more emotional than others. Still, three out of four venture-backed startups will fail, and about 95 per cent of startups fall short of their initial projections. The reality is that entrepreneurs nearly always struggle, and startups mostly fail – but there’s something that keeps us going: the desire to build something that is truly our own. So how can we develop a culture that fosters the kind of spirit that drives entrepreneurship: where parents trust their kids when they decide to pursue something out of the ordinary, where siblings and friends genuinely support you with their skills and time despite not fully understanding why you would give up a cushy job to struggle, to build something from scratch? (I say this from experience, because sometimes I don’t know what the fuck I’m doing.) This is important to think about, because this is the kind of spirit that will push the region’s economic growth. In this issue of The Accelerator, we explore, among other things, issues that relate to government involvement in business, legal implications for informal sector workers, and the entrepreneurial environment in East Africa. Our articles explore our environment, and whether or not it is conducive to fostering entrepreneurial growth. We explore what it is about a culture, society, and the legal and regulatory framework that drives or hinders innovation and entrepreneurship, because we believe that this is something we should collectively construct. This is why we bleed to see this magazine realized. Our apologies for the late release of this sixth issue. It’s been an interesting few months, and we can’t dodge every bullet.

TAMON OSHIMO

Photography: Isaac Rudakubana

CONTENTS CLIMATE CHANGE AND THE DEVELOPING WORLD BY GLORIA IRIBAGIZA AND KAI OSHIMO

ECONOMIC FOUNDATION FOR WHAT?

FOLLOWING THE PROTOCOL: WHAT IT MEANS FOR RWANDAN WOMEN

KWA KABUGA AND THEN...?

THERE IS ALWAYS AN ALTERNATIVE

THOMAS MUNYABURANGA

IN DANGER OF BECOMING AN OLIGARCHY?

MADE IN RWANDA

THE COST OF CONFLICT

VALENCE TSIMBURA

GOOD DATA IS ACCESSIBLE DATA

MICRO-ENTREPRENEURSHIP IN RWANDA: A STORY IN PICTURES

THE USED CLOTHING INDUSTRY

BY MUSEMINARI DAMAS MARCEL

BY DARLA RUDAKUBANA

BY THE ACCELERATOR EDITORIAL TEAM

BY UFFE ELBÆK

DARLA RUDAKUBANA

BY THE ACCELERATOR EDITORIAL TEAM

BY EMMANUEL RUTAYISIRE

BY IGNATIUS SSUUNA

BY DARLA RUDAKUBANA

BY GLORIA IRIBAGIZA

BY GEOFF BARTLETT

BY EMMANUEL RUTAYISIRE

ACCELERATOR-MAGAZINE.COM CHIEF EDITOR ~ CREATIVE DIRECTOR ~ CONTRIBUTORS ~ PHOTOS AND ILLUSTRATIONS ~ MARKETING AND SALES ~

IN PARTNERSHIP WITH

The AcceleratoR ~ ISSUE 6

CLIMATE CHANGE AND THE DEVELOPING WORLD BY GLORIA IRIBAGIZA AND KAI OSHIMO

his past May, landslides in Northern Kigali left over 49 people dead, 27 injured, and over 500 homes destroyed. Is El Niño to blame? According to Dr David Nabarro, a special advisor on the Agenda for Sustainable Development and Climate Change, heavy rains such as those caused by El Niño reoccur naturally. However, due to climate change, the effects that they may cause become less predictable and even more severe. So why are developing countries – countries that are the least responsible for climate change – affected the most? And what can they do about it? In predominantly agricultural countries like Rwanda, climate change is an ominous reality. With the constant threat of harsh weather made even more extreme by climate change, the agricultural calendar becomes irregular and unsteady. It is these countries that are impacted the most due to their lack of resources, resulting in the inability to adapt to the changing climate. According to Nabarro, “Women are the majority of the world’s smallholder farmers. By improving carbon sequestration in soils, and using other enhanced, sustainable agricultural methods, women

can make a huge impact on reducing the 24 per cent of greenhouse gases that come from land use agriculture.” So while this group ostensibly has the potential to make significant impact, this group is also disproportionately affected by the climate crisis: “Women and girls are often responsible for gathering water, and may have to travel longer distances and take on greater risk, and poverty, inequality, competition over scarce natural resources, and instability will likely deepen the crisis – and potentially undermine the achievement of the Sustainable Development Goals and in some cases progress in improving the welfare of current and future generations,” says Nabarro. Developed and developing countries must establish stronger partnerships to make positive strides towards the reduction of carbon emissions. The next step is to put a price on carbon emissions. Without it, emissions are free and there is hardly any economic incentive to move towards clean energy. According to Nabarro, “Putting a price on carbon makes sense for both developing and developed countries, as it removes a hidden and costly subsidy for fossil fuels, and enables greater access to clean energy.” ~

Photography: Geoff Bartlett

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ECONOMIC

FOUNDATION...FOR WHAT? According to the recently published Legatum Prosperity Index, Rwanda does best in laying economic foundation, but is not necessarily the land of opportunity. It is, however, the safest society, healthiest, and the best governed in East Africa. Kenya on the other hand, is the land of entrepreneurs, has the most social capital, is the best place to have an education, and is the freest of all EAC members. Tanzania is in a tepid zone, showing no strong tendencies except perhaps social capital, a legacy from its socialist past. Burundi on the other hand, has the hallmarks of a country that the index warns could have major violent upheaval. BY MUSEMINARI DAMAS MARCEL

wanda is the East African Community’s best performer at position 101 out of 142 surveyed countries in the recently released Legatum Prosperity Index 2015. Rwanda beats Kenya (109), Uganda (115), Tanzania (117), and Burundi (138). Not enough data from Southern Sudan was able to be extracted to allow listing.

The Prosperity Index, which uses a broad set of indicators to track prosperity of nations, used indices such as economy, entrepreneurship and opportunity, governance, education, and social capital, to measure prosperity. Others include personal freedoms, safety and security, and health. Rwanda pooled strongly in the governance sub index earning position 48, just behind Sub Saharan African counterparts Botswana (30) and Namibia (43). Despite South Africa’s best overall position in Africa (75), it pooled a distant (54) in governance. Other African countries to make the top ten include Morocco (79), Algeria (96), Namibia (94), Tunisia (97), Senegal (100), Ghana (102), and Burkina Faso (107). Rwanda’s worst indicator is entrepreneurship and opportunity at 118 overall. The sub-index “measures a country’s entrepreneurial

environment, its promotion of innovative activity, and the evenness of opportunity.” According to political economist Gonzaga Muganwa, this downgrading is largely due to “too much obsession with regulation and a historical legacy that despised any endeavour other than government jobs and agriculture.” The slogan during Habyarimana’s regime, “Umurimo ni uguhinga ibindi ni amahirwe” (“The only job is agriculture; all the rest is chance”), was intended to deter entrepreneurship. Business was for the “outcast” Tutsi, who had little opportunity in the public sector. Successful traders such as the late Assinapol Rwigara and Silas Majyambere emerged precisely as a result of defying the odds. Looking at current policy, for example, the Kigali City Master Plan inhibits artisan industries, and in areas where they receive government support, they are herded into cooperatives that allow little space for individual innovation. Muganwa points at the near non-existence of roadside kiosks and the hunting down of street traders by the authorities as a result of such tight regulation. Muganwa also blames taxation policy for the low score on entrepreneurship. Many start-ups begin in the informal sector and grow their financial muscle before being taxed.

NATION

ECONOMY

ENTREPRENEURSHIP & OPPORTUNITY

GOVERNANCE

EDUCATION

HEALTH

SAFETY & SECURITY

PERSONAL FREEDOM

SOCIAL CAPITAL

Photography: Geoff Bartlett

RWANDA

118

110

102

UGANDA

108

120

103

116

123

132

TANZANIA

114

116

125

122

116

BURUNDI

139

135

115

120

138

131

130

134

KENYA

117

109

112

133

HOW DOES RWANDA COMPARE WITH OTHER EAC MEMBERS?

Still, Muganwa argues that Rwanda’s neo-liberal policy such as access to innovation funds, hangumurimo (create a job), and venture capital – while still in their infancy – could raise Rwanda’s score on entrepreneurship if well managed. Still some have argued that the best way to go is to allow individuals to undergo significant risks, because success is forged in the fire of risk and anxiety. The contradiction of a growing economy without the necessary proportional growth in entrepreneurship and opportunity begs the question: how does the economy grow if entrepreneurship and opportunity are shackled? Last year, Rwanda’s economy grew by 7 per cent according to IMF, with the construction and the service sectors contributing the lion’s share. Rwanda, however, faces the risk of declining balance of payments in light of falling global commodity prices – especially if an environment more conducive to entrepreneurship is not fostered.~

Rwanda’s worst indicator is entrepreneurship & opportunity at 118 overall. The sub-index “measures a country’s entrepreneurial environment, its promotion of innovative activity, and the evenness of opportunity.” According to political economist Gonzaga Muganwa, this downgrading is largely due to “too much obsession with regulation and a historical legacy that despised any endeavour other than government jobs and agriculture.”

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FOLLOWING THE PROTOCOL WHAT IT MEANS FOR RWANDAN WOMEN

BY DARLA RUDAKUBANA

In the days leading up to 27th Ordinary Assembly of the African Union, over 400 delegates from member states gathered in Kigali to attend the High Level Panel on Gender and Women’s Empowerment. The topic of discussion: progress in implementing the Maputo Protocol, Africa’s own framework on women’s rights, and Africa’s progress in terms of gender promotion in general. Considering the outpour of complaints to African leaders by African feminists and gender experts on social media under the hash tag #FollowTheProtocol, few countries have made real progress in terms of protecting women’s rights and freedoms. Of these countries, Rwanda has made significant strides in this area.

THE MAPUTO PROTOCOL

he African Charter on Human Rights and Peoples’ Rights, also known as the Maputo Protocol, was adopted in 2003 by the African Union (AU) as Africa’s home-grown response to the many inhibiting issues faced by African woman. With ratifications from 15 AU member states, the Protocol was enforced in 2005. To date, thirty six out of fifty four AU member states have ratified the Maputo Protocol promising to ensure that women’s social, economic, and cultural rights (espe-

cially sexual and reproductive rights) are respected and taken into account to eliminate all forms of discrimination against women, and to end violence against women. However, with eighteen AU member states still yet to ratify the Protocol and several countries among those with reservations about clauses related especially to marriage and reproductive health, Africa has some distance to go before carving out a definitive path towards gender equality and equity.

RWANDA’S CASE Where other countries are lacking both in implementation and political will, Rwanda has emerged a rising star with firm commitment to promoting gender equality and ensuring women’s rights. Rwanda boasts of a gender sensitive legal framework that protects women against gender based violence and abuse, guarantees them the right to take up decision-making positions, the right to equal pay, the right to land, and enforces gender sensitive resource allocation among other initiatives. “It wasn’t the Maputo Protocol that influenced Rwanda’s thinking about women, Rwanda’s constitution alone reflects that Rwanda was already thinking that way,” says Louise Umutoni.

Having recently completed her research at Oxford University on the incorporation of women in politics after power is captured (focusing on RPF), Louise believes the Maputo Protocol only served to reinforce Rwanda’s efforts. “It helped confirm the fact that Rwanda was on the right track,” she explained. In recognition of its efforts, Rwanda received the Gender Score Card Award during this year’s AU Summit (2016), confirming the country’s reputation in gender equality, not only on a continental level but globally. Summits and awards aside, what exactly does the implementation of the Maputo Protocol and the promotion of gender mean to Rwandans? And how does success on this front trickle down into the lives of ordinary woman? The AcceleratoR ~ ISSUE 6

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Photography: Â©Ruby Cup

THE NUMBERS SPEAK VOLUMES Rwandan women’s experiences have translated into statistics “No one can put me down as long as I have the capacity to go that tell the story of Rwanda’s progress in gender promotion. after available businesses,” she says. The country has the highest representation of women in parLillian Uwanjye, although not entirely up to date with governliament in the world at 64 per cent; over 80 per cent of mayors ment programs in gender promotion, believes there is a notable in charge of social affairs are women, and they constitute 50 per change in the way women are treated today. cent of the judiciary. Women also make up 50 per cent of Abunzi, grassroots mediation and conflict resolution committees. “I think our grandmothers and all women before us were not allowed to speak out in public or voice their opinions. I like and In the fight against Gender Based Violence (GBV), Rwanda observes a zero tolerance policy. Through the Ministry of Gen- appreciate that today I can say what I think and feel and that’s der and the National Police, Isange One Stop Centres (a homewhat has gotten me this far.” grown initiative unique to Rwanda) have been built across the country to provide free, 24-hour medical, psychosocial coun- From a family of 11 children, Lillian decided from a very early selling, medical-legal, and safe house services to GBV victims. age that education was the only way to get her out of the life situations that have not always been easy or acceptable to her. “I Rwanda recorded tremendous reduction of maternal mortali- have explored all ways to build a better life for myself and my ty rates from 1070 in 2005 to 476 by 2010. It is also the first family and I keep coming back to the fact that it only takes low-income country to provide free universal access to the education and hard work.” human papillomavirus vaccine (HPV) for adolescent girls. According to Louise Umutoni, having women in leadership These achievements are widely recognized among women and positions and successful women celebrated in the public sphere men in almost all areas of society and communities. Rwandan has done wonders for young girls in Rwanda. women note these efforts as the thrust for gender equality and most importantly as the central pillar of renewed women’s con- “We are now hearing different conversations amongst young girls fidence and engagement in society. in Rwanda. By seeing these women up there, they also aspire to Betty Kinyana, a single mother and smallholder business owner, do the same. Personally it has encouraged me to believe that I says living in a country where leaders are working hard to pro- have a seat at the table and that my opinions matter, something mote and protect women gives her more confidence not only in African women didn’t have before or still don’t have in some her social life but also in business. African countries.”

THE CHALLENGES “Despite the progress Rwanda has made, there are still some gaps,” explains Redempter Batete, Director of Gender Promotion in the Ministry of Gender and Family Promotion.

According to a Beijing +20 report on Rwanda, this – poverty and lack of employability – eventually leads to vulnerability to violence and abuse.

Indeed, according to Rwanda’s Gender Divide, a 2015 report released by the Government of Rwanda, with 47 per cent of women headed households ranking among the poorest compared to a 44 per cent average for all households, women still carry the face of poverty in Rwanda. 32.2 per cent of women (compared to 22.4 per cent of men) are financially excluded from national economic development due to lack of capital or collateral to secure loans and other financial services.

Sexual corruption is a good example of violence and abuse stemming from women’s poverty and vulnerability. This form of abuse has been reported many times as a rising trend – especially in the private sector – that is stifling the labour force.

“When you are poor, people can easily take advantage of you and even abuse you,” says Lillian of a life she is working hard to avoid for the benefit of her family. Gendered roles powered by entrenched cultural values and persisting misconceptions of gender equality restrict girls and women from attaining skills that could increase their employability, resulting in reduced to no incomes.

According to a recent report by Transparency Rwanda, 84.5 per cent of job seekers who have been victims of sexual abuse are women. 83.2 per cent of the perpetrators are men. More shockingly, the report revealed that only 5.6 per cent of these victims reported their cases to responsible authorities. Despites the laws in place to curb this crime, the prevalence of such abuse is a clear indication that poverty is a strong root from which gender based violence and thus gender inequality are growing. Sexual corruption and related crimes are punishable by up to ten years in prison and fines of up to RWF 1 million (USD $1240).

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Photography: Geoff Bartlett

WOMEN FOR WOMEN The government and key players in the gender sector can only do so much in creating an environment that allows women to live their lives without deprivation or fear of discrimination. Tools like the Maputo Protocol can only lay a foundation and strengthen existing platforms for the real work to be done. Article Two of the Protocol stipulates that state parties should fight all forms of discrimination against women through appropriate legislative, institutional and other methods. Further to this, state parties should modify the social and cultural patterns of women and men with the aim to eliminate practices and perceptions that undermine women and position them as the inferior gender.

“Women don’t know their rights. We need to do more in popularizing the Maputo Protocol and similar initiatives,” explains Redempter Batete. Indeed, if knowledge is power, then all women need to know their value and their rights in order to reclaim and exercise their full potential and power. The AU Summit, having chosen to focus on women’s rights for the second year in a row, was useful in sensitising all Africans on the status of gender promotion on the continent. It should be a reminder to all stakeholders that agreements and tools such as the Maputo Protocol should not remain in documents but be fully implemented if we are to overcome persisting challenges. ~

The AcceleratoR ~ ISSUE 6

BY THE ACCELERATOR EDITORIAL TEAM

KWA KABUGA

AND THEN...?

When the sun sets on Kigali, the inkeragutabara, an auxiliary segment of the Rwanda Defence Force, rise to round up marginalized citizens such as street vendors, beggars, street kids, the homeless, and prostitutes. Some of these people avoid being brought to Kwa Kabuga (Kwa meaning â&#x20AC;&#x153;atâ&#x20AC;? and Kabuga

referring to a well-known escaped genocide perpetrator), as they can pay a certain amount of money for their pardon, but others who do not have the luxury of a few extra francs are brought to the centre for an unknown detention period, leaving only the poorest to be rehabilitated. The AcceleratoR ~ ISSUE 6

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REHABILITATION OR IMPRISONMENT? According to Carina Tertsakian, Senior Researcher of the African Division from Human Rights Watch (HWR), very few of the detainees have gone through any rehabilitation aid such as education or professional training. Many of them were not even aware of the existence of the rehabilitation activities. A 25-year old male street vendor who was detained in Kwa Kabuga in March 2016 said to HRW: “They say on the radio that the government is teaching professions in Kwa Kabuga. It’s wrong, because no one in our room received any training when I was there. There are no jobs in Kwa Kabuga. We stay in the room the whole day.” In coherence with a regular rehabilitation centre, Kwa Kabuga has counsellors who manage each room of the centre. These counsellors however, are chosen from among the detainees who have spent a long time at the centre, and they are appointed to supervise other detainees, not by encouragement and education, as the officials say, but by regular beatings and maltreatment of their fellow inmates. According to HRW, people are arbitrarily released from the centre, in a way that previous detainees describe as coincidental, suggesting that a thorough evaluation of the individual process of each detainee has not been undertaken. Several thousand people are estimated to have spent time at Kwa Kabuga since it started operations in 2005. Carina Tertsakian explains that according to research on the centre, very few detainees actually manage to change their destiny. “The period they spent in Gikondo [Kwa Kabuga] did not help them turn their lives around. Indeed, some detainees have been in and out of Gikondo multiple times,” she says. A street vendor and former detainee in Kwa Kabuga stated the following in the 2015 report on the centre done by HRW: “Every day I risk going back to Kwa Kabuga, but I continue working. They say they send us there to correct us or to get us to abandon our trade, but we don’t have money to start a restaurant or a bar. The police just say, ‘abandon your work,’ but what can we do?”. Some women have even admitted to having engaged themselves in prostitution after their release from Kwa Kabuga, because all the goods that had made making a decent living possible before detention had been confiscated by the police. Daniel Bekele, African director at HRW, is concerned about the targeting of people who are already marginalized and in a bad social state. “Locking poor people up in harsh and degrading conditions and abusing them isn’t going to end their poverty, and it violates both Rwandan and international law.”

“REHABILITATION RATHER THAN UNNECESSARY INCARCERATION” We met up with a couple of former detainees on the streets of Kigali. Not many of them were willing to speak out, but two young boys, Eugene and Claude, were willing to tell their stories. Eugene, 17, is an orphan and lived part of his life at the St. Noel Orphanage in Nyundo, Western Province, but eventually had to beg on the street following the government’s directive to close all orphanages in Rwanda. He was taken into “rehabilitation” by the local police force, but admits that “street life is better than being detained in there [Kwa Kabuga].” Lately there has been an upsurge in the number of street children around Amahoro Stadium in Kigali. Although there have been recent raids that have taken street kids into custody in “transit centres,” the young kids find themselves back on the streets again. One of them is Claude, 15, who has been arrested four times already. Claude does not know where his parents are and has not bothered to track down his grandmother, with whom he spent his early years. Like Eugene, Claude says that the reason behind his incarceration was simply having nowhere else to go than to beg on the street. He tells us about how he was beaten several times while staying at Kwa Kabuga. “One day, I woke up late in the morning and the guards came and kicked me five times. I still feel the pain,” he says. “I saw another child being beaten and fainted. Police said the child had talked to them in a rude manner.” Eugene and Claude have no other option than to walk the streets, risking arrest and detainment in a transit centre once again. At one point, Claude got a job as a housekeeper in Kigali, but his boss was not paying him and he therefore decided to quit.

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Photography: Geoff Bartlett

PROGRESS IN JUDICIAL REFORM Nearly all of the publically available Yet, Ryan explains that it has not yet tion.” We were unable to reach anybody been possible to verify this information: from the Ministry of Justice for cominformation on the transit centres comes from the HRW report. “It’s not “We (the EU) have a long-standing invi- ment prior to publication of this article, that we swallow the whole report hook, tation from the Minister of Justice to but evidence suggests that this philosline, and sinker,” says Michael Ryan, visit the Gikondo Transit Centre, and ophy can be questioned. Optimistically, look forward to that visit taking place. Ambassador and Head of Delegation of however, it seems that government Every country faces difficult challenges the European Union to Rwanda, “but officials are realizing this: according to in coping with social issues and we fully that’s what’s accessible right now, and understand this. We would like to help, if Carina Tertsakian, the Rwandan govthat’s the problem.” Still, a recent stateasked, but we need to have a clear appreernment is preparing a new legal framement on the website of the Ministry of ciation of the legal process surrounding Justice paints a far more positive picture work on Kwa Kabuga and the transit the transit centres and those who are of the transit centres. According to the centres in general, but so far no details admitted to them.” He adds that the statement, “The Minister of Justice and have been shared with the public. EU and its member states in Rwanda Attorney General told youth in both are long-standing supporters of judicial So where to start? According to Ryan, centres that the Government of Rwanda values them a lot, which is why it estab- reform, and there has been immense “It’s good that the Minister has gone there, lished such centres across the country. progress in the judicial sector over the but I think if he wants to broaden a widlast two decades. Additionally, the EU – He said that Rwanda gave them a second er understanding among the diplomatic and the Netherlands in particular – has chance to change their behaviour and community about what these transit been supportive of the transit centres, contribute towards the development of offering examples of EU member coun- centres are about: we understand social Rwanda.” The statement also mentions tries’ best practice. problems, so let’s share, let’s visit, give us that the visit was initiated following an open demonstration of what’s going HRW’s “repeated unproven reports on The Rwandan government prides itself the living conditions of youth living in on having the philosophy “Rehabilita- on so that we can have a shared undertransit centres in Rwanda.” tion rather than unnecessary incarcera- standing. That would be the first step.” ~

President Paul Kagame, with your ingenuity, Rwanda has come to personify hope and a good governance model on the African continent

The AcceleratoR ~ ISSUE 6

ver centuries and even millennia, communities, societies, and civilizations have been built on ideas, desires, and ever-changing needs. They have flourished, thrived, and made lives better, but they have crumbled and collapsed, too. In itself, that is not a bad thing.

BY UFFE ELBÆK

In fact, we should take every opportunity to do so. That is the mission of the social movement and political party, The Alternative, which I founded three years ago. Now elected to Danish parliament, we see it as our main purpose to come up with ideas and solutions that address three crises that we face: the climate crisis, the empathy crisis, and the systemic crisis – where lost faith in institutions, the representative democracy, and runaway equality is challenging the very values we hold dear.

ALWAYS

To do so, we have taken unprecedented steps to further civil engagement: our political program is 100 per cent crowd-funded by ordinary citizens throughout Denmark and our membership base is now bigger than political parties founded more than a century ago.

THERE IS

ALTERNATIVE

I do not believe in – and I certainly do not encourage – the stationary. I believe in changing for the better, rebuilding when necessary, and always maintaining and encouraging the right to rethink the way we organize ourselves.

THE ALTERNATIVE (ALTERNATIVET) ~~ Founded in 2013 as a political movement and Denmark’s green, entrepreneurial party ~~ Political program is 100 per cent crowd-funded ~~ Based on six core values (courage, transparency, generosity, humour, humility, empathy) and a manifest rather than political ideologies ~~ Elected to Danish parliament in 2015 with 4.8 per cent of the popular vote; membership base now the fourth largest among nine parties in Denmark

In Denmark, in East Africa, as well as around the world we should aim to develop policy solutions that secure surpluses on not only the economic bottom line, but also on the environmental and social bottom lines. Not just sometimes, but every time. That is how we do it in The Alternative. Both in Denmark but also with our sister parties in Norway and Nepal. We constantly remind ourselves that there is always an alternative to the status quo. Only in doing so can we build communities, societies, and even civilizations that lay the foundation for a better and more sustainable, equal, and democratic future.

Uffe Elbæk is serial entrepreneur, leader of the Danish political party The Alternative, and former minister of culture.

Ruzizi Tented Lodge & Karenge Bush Camp // ruzizi@african-parks.org // +250 (0) 787 113 300

The AcceleratoR ~ ISSUE 6

THOMAS MUNYABURANGA And the importance of a conducive entrepreneurial ecosystem DARLA RUDAKUBANA

orking in the garbage collection business is a bittersweet experience when described by Thomas Munyanburanga, owner of Inzira Nziza Service Company. As one of his most successful and sustainable business ventures for over 20 years, his cleaning and garbage collection company has seen him expand his staff and reach within Kigali, and has taught him the challenges of working within a relatively new industry.

SUPPORTING THE VISION The government’s vision and push for “We want everybody with a good idea to Kigali to become a clean city has created match his or her idea with a good opportuopportunities for businessmen and wom- nity,” says Innocent Bulindi, CEO of BDF. en offering street cleaning, greening, and “Not many people are able to secure the garbage collection services. Through the resources required by banks to get the loans City of Kigali and the Rwanda Utilities they need. We step in as a gap filler, with Regulatory Authority (RURA), regulathe overall goal to stimulate entrepreneurtions have been put in place to form the growing industry and monitor the quali- ship – which is at the heart of the government’s agenda to address unemployment.” ty of services being provided. “The City of Kigali played a big role in ensuring the success of the cleaning and garbage collection business by raising awareness amongst Rwandans and pushing the clean city agenda,” says Thomas. With this guidance, Thomas has built a successful cleaning and greening company, employing over 150 staff working in both office cleaning and garbage collection in Muhima.

Business development and entrepreneurship is a solid pillar in the Economic Development and Poverty Reduction Strategy II (EDPRS 2) aimed at responding to rising unemployment. BDF, being the implementing institution of this pillar, has focused on designing products that ensure financial inclusion for people like Thomas, who in turn create job opportunities through his company.

“I was fortunate enough to get financial support from both the Business Devel- “We are proud to have supported Thomas, considering that his business has grown opment Fund (BDF) and I&M Bank to reinforce my business,” explains Thomas. tremendously and that he has been able to employ 200 people,” says Delphine Thomas received a bank guarantee from Mushashi, Business Manager at I&M BDF worth RWF 47 million (USD Bank. “The initiative to support SMEs $58,160 based on current rates) that and promote entrepreneurship was a govenabled him to secure the loan that he needed from I&M Bank. ernment one and we support its efforts.”

Photography: Isaac Rudakubana

THE CHALLENGES Despite Thomas’s relative success in the field and the city’s efforts to raise awareness about the benefits and need for cleanliness within Kigali, there is still a large number of people who don’t understand it. Thomas’s company works mainly in the residential area of Muhima, where the majority of residents are considered poor. “We charge RWF 2000 (USD $2.50) every month to collect garbage from each home within Muhima, which most people can’t afford and are not willing to part with because they believe it’s the government’s responsibility,” says Thomas. “The set up of these areas is also problematic and needs more manpower than we can provide.” Inner Muhima residential areas are made up of small houses and shacks packed tightly beside other shacks and small houses. The routes tracing the area and meandering through the houses

are small and without obvious structure, making it difficult for Thomas’s staff to “We are now specialists in our field know where one compound starts and because of the work we have done so where it ends. far and the experience we have gained through it,” says Thomas. Without a strong case for billing each house every month, Thomas’s clients However, Kigali is developing fast and often pay late, if at all, straining his the demand for Thomas’s services and resources and delaying his own payment equipment to be upgraded to match to his staff. “My target is gaining enough this development is becoming harder money to pay my workers on time and to ignore. “We need specialized garbage service my equipment and vehicles. The collection trucks and cleaning equipment reality, however, is that I often fall short to manage our daily duties effectively due to the irregular payment from clients and quickly. This requires more money and end up not paying my staff on time and training for our staff.” on various occasions.” With the right financial support to purchase these upgraded tools, Thomas plans to apply for bigger contracts LOOKING FORWARD whose requirements and conditions are The fact that keeping Kigali clean and pro- constantly changing based on the city’s moting entrepreneurship are government fast development. He also plans to diverpriorities has given Thomas the confidence sify his services and create new revenue to believe that – despite the challenges – streams by exploring garbage treatment his business will grow and strengthen. facilities and services. ~

WHO WILL PRODUCE THE BRICKS FOR IMPROVING THEIR NEIGHBOURHOODS? Kigali’s annual population growth: 65.000 people (requiring 13.000 new houses per year) Preferred walling material: bricks (fired and good quality) Medium scale brick factories required: 70 (for Kigali)

Skat Consulting Rwanda, Ltd. Kigali Building Material Knowledge Center Kacyiru, KG 5 Ave #65 Phone: +250-788-385-790 http://www.skat.ch

WE SUPPORT YOUR INVESTMENT

The AcceleratoR ~ ISSUE 6

IN DANGER OF BECOMING AN

OLIGARCHY? BY MARCEL DAMAS MUSEMINARI AND THE ACCELERATOR EDITORIAL TEAM

ver the course of a year alone, Rwanda has scooped eight top international rankings, including – among other accolades – ICT promotion and human development, ease of doing business, most improved human development since 1990, efficiency in governance, and best place to be a woman in Africa. To match these statistics, gleaming new hotels and office blocks illustrate a construction boom in Kigali, the capital, and depict a quickly developing Rwanda. But a new report published by the Society for International Development on East African countries is warning its member states, including Rwanda, that they risk becoming “oligarchies camouflaged as democracies” if they do not address the inequalities stemming from unequal distribution of the benefits of all the growth depicted in statistics. (An oligarchy is a form of power structure in which power effectively rests with a small number of people. This usually implies a nexus of political and economic might, built

“DISMAL” FINANCIAL MANAGEMENT

around kinships that pass this influence along from one generation to another.) The State of East Africa Report: Consolidating Misery? argues that GDP growth has not spurred job growth, and that “as greater wealth (and power) are concentrated within the hands of a rather small elite, one cannot discard the possibility that this has deep ramifications on the performance of politics and economy.” The report dwells on this issue of governance, indicating that such a power play will largely influence the long-term political economies and social outcomes of the region. (Rwanda would benefit by noticing the red herrings in its political economy, and nipping the problem in the bud.) The report calls for the rejigging of the institutions that distribute power and their networks in order to “drive up domestic demand, build and nurture local value chains, and improve the skills of its labour force.”

Nowhere are patterns of marginalization and inequitable inclusion in Rwanda shown better than in the Auditor General’s Report released for 2014-2015. As with the preceding audits, it points out financial errors and unauthorized and wasteful expenditures – casting doubt on the management of public finances in general. In the audit for government expenditure that covered RWF 82 trillion (USD $2.3 billion) in spending, some findings were even worse than in previous audits, showing a hardening recalcitrance especially among Government Business Enterprises (GBEs), boards, and authorities such as RRA (Rwanda Revenue Authority), WASAC (Water and Sanitation Corporation), REB (Rwanda Education Board), RAB (Rwanda Agricultural Board), RDB (Rwanda Development Board), RSSB (Rwanda Social Security Board), RBC (Rwanda Biomedical Centre), and NAEB (National Agricultural Export Board). Of the 157 audit opinions issued, 50 per cent of audit opinions issued on financial statements of public entities were unqualified; this number decreased to 39 per cent when looking at issues of compliance.

Illustration: ArtLair

THE POLITICAL ECONOMY? GBEs and boards impact the lives of ordinary citizens, providing them with water and sanitation, education, healthcare, and food – and are controlled by a few. Yet as the report indicates, “All the entities in this cluster [GBEs and boards] got qualified opinion on compliance aspects. The improvements in financial management and compliance with laws and regulations in Government Business Enterprises and Government Boards remain dismal despite these entities being in charge of implementing key Government programmes and managing a significant chunk of Government funds.” Since the audit represents a significant portion of government expenditure (82 per cent), the report itself sets off an alarm to the financial mismanagement of these entities, and lends credence to suspicions that financial mismanagement is rife – even systemic – in the public sector. For a government that rides the wave of efficiency and zero tolerance to corruption, one needs to take a harder look at the root causes of the apparent mess in public finance.

Rwanda has a set of well–intentioned social protection mechanisms and strategies to combat the rise of inequalities. These include, Ubudehe and Vision 2020 Umurenge at the administrative level of the sector. Other programs like Girinka give cows to poor citizens. There is evidence that even these are being eroded by corruption. Many local leaders have for example been arraigned in court to answer charges of embezzlement of these funds. But it is unlikely that these small fish are solely responsible for the financial “errors” in these programs. Could politics, therefore, be a major factor influencing the equity arrangements and corporate culture that flout administrative best practice? And can the boldness in flouting the rules by RSSB managers and other GBEs and projects now be understood in a new light? The question of political involvement in business has dogged Rwanda’s political horizon for more than two decades, and is unlikely to be resolved easily – but it will always co-exist with question marks of insider information and trading, unfair competition, and influencing rules and budgets in order to gain unfair advantage by the politically connected. And seen in this light, the inequalities created from Rwanda’s political economy lend credence to the State of East Africa report’s assertion that indeed, Rwanda – as with other EAC members – could be tending towards an oligarchy.

OR JUST A YOUNG ECONOMY?

WE WANT TO BE THE BEST

But according to those familiar with the situation, this is not the case. “Look at the population of Rwanda,” says Godwin Akankunda, Director of Audit Quality Assurance at the Office of the Auditor General, speaking on the issue of inequality in Rwanda. “Participants in the formal economy are few; you find that there are, what, 1 million active participants. So yes, the economy is in fewer hands, but there’s a reason.” According to Akankunda, this is also the reason why the government has introduced initiatives such as free primary and secondary education: in order to facilitate a more inclusive economy, and so that “the masses” can begin to participate.

Despite all of this, there is still a lot that must be done in terms of the country’s financial management, and especially when looking at management of government funds. According to Akankunda, this is largely an issue of capacity: Rwanda doesn’t yet have the level of financial professionals needed to keep up with the country’s growth and the level of accounting and financial management that comes with it. Rwanda has too few accountants (and other financial professionals) per capita, and those who are good usually transition to private sector jobs or jobs outside of the country. This is something that needs to be addressed. While the results of the Auditor General Reports do not necessarily mean that somebody is stealing, they do have far reaching social effects that cannot be ignored. The bottom line with government programs, as Akankunda explains, is that they are meant to support Rwandans. “With RSSB, for example, what will happen when I’m 70 if today they’re investing in non-performing ventures and are not generating anything from them. Those are decisions that will affect Rwandan citizens – including myself.”

And the question of government involvement in business? “You see, our country – our economy – it’s a bit tricky. People are looking at numbers. ‘Is there a business case there?’ And I must say, our president has been very bold, to the point that some of us were asking ‘is this really viable?’ Look at the Serena for example. All of us were sceptical when [The Intercontinental] was being built. But they built it, and sold it off – and proved that hotels were viable in Rwanda.” So is government involvement in business simply a necessary approach to economic development? Rwanda does not possess the natural resources or geographic advantages that even its East African neighbours possess, so there is a need for other economic development strategies. Government involvement in business, then, can be seen as a strategy to promote private sector growth – by doing. “Let’s do it ourselves. If somebody’s interested, they’ll come and we’ll sell to them, but first, let’s show them that it can be done,” says Akankunda. This is in line with what Innocent Bajiji, Head of Investment Promotion and Facilitation at Rwanda Development Board explains. “The government’s aim as enshrined in Vision 2020 is to support the private sector to be the engine of growth. The government privatised all its assets because it believes that the private sector can operate them efficiently. In a few strategic areas where the private sector is reluctant to invest because they perceive it to be risky, the government may intervene to build their confidence with an aim to handover the business to the private sector later. An example is the Serena Hotel.”

Still, Akankunda is optimistic. “We always want to be the best, so we don’t look at a company and say ‘oh, because there are problems with capacity of staff, let’s be lenient.’ But over the years it has improved, and I attribute this to the development of the accounting profession in Rwanda. There’s still a long way to go, but I think that progressively, we’ll get there.” And inequality and the mix of business and politics? This is a question that has been on the minds of many, and will likely continue to be. But as Akankunda succinctly explains: “Government or RPF involvement is to show that it [business in Rwanda] is working. We’re leading by example.” ~

The AcceleratoR ~ ISSUE 6

DO'S & DON'T R W A N D A

* *

The AcceleratoR ~ ISSUE 6

MADE IN

RWANDA RE BY EMMANUEL RUTAYISI

Photography: Isaac Rudakubana

hrough what is dubbed the Domestic Market Recapturing Strategy, the government has for the last year embarked on an aggressive campaign to promote consumption of locally produced goods with the view of bridging the vast gulf in the country’s balance of payments. But, there are challenges, especially related to consumer apathy towards locally made goods due to the perception that these goods are of low quality.

Officials say this attitude will change with the ongoing awareness campaign. “To change the mindset of our people and to boost the value chain of production, it’s vital to conduct and sustain the Made in Rwanda campaign,” Minister of Trade and Industry François Kaminba said at the launch of the campaign, adding that “It’s very critical to value the role of the media in reaching out to all categories of people.” Government records indicate the target is to rescue USD $450 million in foreign exchange per year by cutting the volume of imports by 17.8 per cent, translating to a 6 per cent cut on the imports bill. By and large, Rwanda is an importing economy, with materials in its booming construction industry playing a leading role in its ballooning imports bill, and augmented by other materials such as pharmaceuticals, garments, sugar, fertilisers, and rice. In the Domestic Market Recapturing Plan, three potential sectors (construction, light manufacturing, and agro-processing) are targeted, with the aim of saving USD $206 million, USD $124 million, and USD $112 million, respectively. Other government strategies to promote locally produced products include favouring them during government procurement, and upgrading quality control infrastructure to ensure the quality of Made in Rwanda goods.

Despite these noble intentions by the government, there are realities to contend with that may make realization of this in the near future difficult. To begin with, Rwanda is constrained in the areas of energy. For instance, some 40 per cent of energy is generated by way of burning heavy fuel oils to reach the current generation capacity of 186 MW. Comparatively, Rwandans spend more money on energy than their counterparts in Kenya (USD $0.15/kwh), Uganda (USD $0.17/kwh), and Tanzania (USD $0.05/kwh). By depending on heavy oil to augment its limited hydropower, Rwanda ends up widening its import bill – and therefore its balance of payments. The government has said it plans to more than double that to 563 MW by 2017-2018. “26 MW won’t address our energy or power problems but is an indication of what is possible,” President Paul Kagame said at the inauguration of the KivuWatt plant recently – referring to KivuWatt’s generation capacity, and underscoring the country’s dire energy challenge. Other constraints include lack of skilled labour, lack of access to finance, and the fact that the majority of producers are SMEs. Still, the Ministry of Trade and Industry has set high expectations for the Made in Rwanda Campaign – to spur local economic growth and contribute towards Rwanda’s exports targets as outlined in the Economic Development and Poverty Reduction Strategy II. Whether or not this happens remains to be determined, but for those who remain sceptical: check out some Made in Rwanda products. Many are already available, and you might be surprised at what you find. ~

HOW CAN I COMPETE WITH THE FOREIGN CEMENT INDUSTRY?

Skat Consulting Rwanda, Ltd. Kigali Building Material Knowledge Center Kacyiru, KG 5 Ave #65 Phone: +250-788-385-790 http://www.skat.ch

WE SUPPORT YOUR INVESTMENT

The AcceleratoR ~ ISSUE 6

THE COST OF

CONFLICT B

urundian businessman Helmenegilde Mwamarariza wipes his eyes thinking about his 15-year old son, who was killed after going to a protest against President Pierre Nkurunziza in April 2015. Ever since, the 58-year old father – now exiled in Rwanda – says, “I’m afraid I could be killed like my son so I can’t go back home.”

When the protests started in Burundi, his son, Jean Nepo Komezamahoro heard gunshots outside their house in Cibitoke, Bujumbura, and went out to see what was going on. The protesters left and Komezamahoro was alone on the road. “He went down on his knees in front of the policeman taking aim at him, called him ‘my father,’ and pleaded for his life,” Mwamarariza said. But the police officer pulled the trigger. That was 26 April 2015, and Jean Nepo Komezamahoro is known as the first victim of the current wave of political violence in the Eastern African nation. More than 500 people have since died in the violence (though estimates on the exact number killed vary).

In Kigali, things are becoming even worse for Mwamarariza. He used to own a shop in Bujumbura but abandoned it due to the ongoing crisis. He is now approaching bankruptcy. “Before this violence, I was selling at least 11 to 15 sacks of rice every day and able to send my children to school and feed the family. But I left everything behind in order to survive,” Mwamarariza said. His predicament is the same that is facing many Burundians who had hoped to build a new and prosperous nation after a 13-year civil war in which about 300,000 civilians died. The violence has not only affected Burundians but has also weighed heavily on businesses in Rwanda, where more than 100,000 people are seeking refuge. Because Burundi is accusing neighbouring Rwanda of training Burundians in refugee camps to join anti-government rebels, the Bujumbura administration has decided to ban exports to Rwanda. It has also stopped buses from Burundi from crossing into Rwanda.

THE BURUNDI CRISIS AND ITS ECONOMIC SPILLOVER IN RWANDA BY IGNATIUS SSUUNA

KIGALI TRADERS FEEL THE PINCH According to the National Bank of Rwanda’s latest statistics, there has been a decline in exports to Burundi, and due to this trend, Rwanda’s total cross-border exports within the EAC fell to $100.5 million in 2015, from $107.5 million in 2014. The same statistics also show that the cross-border exports to Burundi alone declined by 27.2 per cent. The Rwandan government has described the decision to ban exports coming into the country as a breach of EAC common market protocol – that calls for an open market where there is free movement of goods beyond country borders. “The decision to ban exports is a very serious breach of the EAC free trade agreement because Rwanda and Burundi are both part of this free trade area,” Rwanda’s Minister for Trade and Industry, François Kanimba has said. Minister Kanimba, however, told The Accelerator that the impact of the ban would not affect many Rwandans as what the country imports from Burundi can be imported from somewhere else like Uganda or the Democratic Republic of Congo.

Photography: Isaac Rudakubana

But this is not the same way Rwandan According to Burasa, this decision has traders who spoke to The Accelerator had serious implications on his business. see things. “We have loans from banks which we have to service – something impossible Jean Claude Kayitare, a businessman in when one is out of business,” he said. Kigali, says the ban on food products from Burundi has impacted his family Faustin Nikumana, the director of a and left him unable to pay school fees Burundian economic think tank known for their children. He said he has been as PARCEM says the ban of trade in the business of supplying dried silver between the people of Burundi and fish from Burundi to his customers in Rwanda will have a serious economic Nyarugenge and Kimironko markets for setback as members of the East Afrifive years. “But following the ban, this can Community had planned to boost can longer be possible and I am out of the economy within the member states, business,” he said in an interview. thus creating a single market. Dias Burasa, another businessman, used to receive fruits such as mangoes and oranges from his suppliers in Cibitoke, a province bordering Rwanda, but recently police warned his suppliers against sending more fruits to Kigali.

Rwanda imports mainly fruits such as mangoes, oranges, dried silver fish, palm oil, and agricultural and livestock products, and exports mostly manufactured products, unprocessed maize flour, wheat flour, cassava flour, potatoes, and milk.

The AcceleratoR ~ ISSUE 6

PRICES SOAR According to Alex Tindiwesi, a grocery trader at Nyarugenge food market in Kigali, the few food imports from Burundi are now becoming extremely expensive to due to the ban. The products that find their way to Rwandan markets come through illegal ways, the traders in Kigali say. “The shortage of food items as a result of the ban is what has increased prices, and fruits from Burundi are now scarce,” Tindiwesi added. For instance, in Nyarugenge market in Kigali, the price for a kilo of mangoes rose from RWF 1,000 (USD $1.25) to more than RWF 2,000 (USD $2.50), while a kilo of oranges rose from RWF 400 (USD $0.50) to 1,000 RWF (USD $1.25) recently. In Burundi’s Cibitoke Province, along the northern border with Rwanda, many vegetable growers are concerned. Ever since the government stopped them from trading with their Rwandan counterparts, they are stuck with their vegetables – which are wasting away for lack of market across the border.

REGIONAL LEADERS STANDING ALOOF Apart from the international community “Regional leaders too look unbothered making statements about extra-judicial because President Nkurunziza is fightkillings by security agents in Burundi ing tooth and nail to extend his stay in and the UN’s continued warnings that office – the same as other presidents the country could slide back into ethnic have done,” explains Kalisa. violence, the crisis seems to be forgotten, Burundi’s neighbour, Rwanda, which and the president consolidating power, has the same ethnic people – Hutu and says Anthony Kalisa, a regional security Tutsi – changed the constitution in 2015 analyst based in Uganda. to allow President Paul Kagame to pos“President Nkurunziza is also trying to sibly rule until 2034. Ugandan President win this because his administration has Yoweri Museveni scrapped term lights become more professional, and security and has ruled since 1986. In neighagents now torture opponents behind bouring Democratic Republic of Congo, crossed doors,” Kalisa explains. President Joseph Kabila is manoeuvring to stay in office, something that has Kalisa said much of the international sparked protests. Many have been killed community is forgetting Burundi, and in the process. “The leaders in the region hoping the situation has improved. Yet, cannot be bothered because amending the calm in Burundi is fake. the rules for a president to stay in power has become the norm,” Kalisa added. Meanwhile, Mwamarariza does not know whether those innocent people killed, including his son, will ever be brought to book. “My son was such a lovely boy,” the father says sadly. “One day, hopefully, he will get justice.” ~

#EndSexualCorruptionRW

Employers! Stop requesting sexual favours in return for internships, employment, and promotions. It is not only punishable by law, but also killing talent, and violating human rights. Report anonymously to: endsexualcorruptionrw@accelerator-magazine.com

The AcceleratoR ~ ISSUE 6

VALENCE TSIMBURA

From art to agriculture to a bar in Nyamirambo BY DARLA RUDAKUBANA

nlike most who strive for a desk job and monthly routines, Valence Tsimbura prefers constant movement and working with his hands. Which is why, at just 27 years old, he owns various businesses in the arts, hospitality, and agriculture. Venturing specifically in painting, house finishing and fruit farming, Valence has created revenue streams that enable him to live out his dreams – including owning Classico bar in Nyamirambo

ART IS FROM THE HEART

DEVELOP MULTIPLE SKILLS

Valence’s love for agriculture and working with his hands came from watching his father farm and work the land throughout his childhood. His love for art and sketching, however, came from the heart and manifested itself all though out his childhood. “I was born with love for art. I grew up always trying to sketch. I took on painting jobs not only to improve my skills but to remind myself of my skills in drawing,” he explains.

A firm believer in developing various skills in order to survive, Valence took on crop science in university to enhance his capacity in agriculture. Though his classes, he was inspired to explore fruit farming. “They say Rwanda has a thousand hills but I’ve always asked myself why we don’t have at least one hill that grows avocadoes or mangoes – you only ever find eucalyptus trees. There is no professional land which has only fruits.”

His ventures in art eventually led him to create Nature Paints along with his brothers – offering unique house finishing and interior design services borne of his exposure to other cultures and his own creativity. “The way I do business, I don’t rely on my own views. I do a lot of research, I see how other cultures around the world work and then add on my creativity – so everyday I learn and search for ways to see how I can create something better,” he says. Now a fine artist, performance painter, and designer, Valence uses his skills to gain extra income to fund his education and other projects.

In his classes, Valence specialized in apple farming, studying the different varieties of apples and trying to establish which types would not only thrive in Rwanda but in the region. Based on his research, Valence started an apple farming business with the ambitious goal of eventually ridding Rwanda of imported fruits. Valence takes on various businesses and projects to in order to get enough funds to pursue his goals and dreams. “Never rely on just one thing,” he says. “Always have a plan B to support plan A or a back-up plan should your initial plan not work out.”

FUNDING IS KEY Aside from diversified skills and investments, Valence also admits that good funding can be an influencing factor in the success of a business. Having sought for support from the NAEB with little success, he has had to keep an open mind about his sources of funding, looking for different solutions in the face of slamming doors and unfulfilled promises. “The government will do what it can but we must look for some of the solutions ourselves. We can start with little or look for different ways to achieve what we dream of achieving.” ~

HOW CAN MY BRICK BUSINESS BE CLEAN, SAFE AND MODERN?

Skat Consulting Rwanda, Ltd. Kigali Building Material Knowledge Center Kacyiru, KG 5 Ave #65 Phone: +250-788-385-790 http://www.skat.ch

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WE ILLUSTRATE YOUR

COMMUNICATION We a i m a t h e l p i n g o r g a n i z a t i o n s re c o n n e c t w i t h t h e i r a u d i e n c e s a n d c o m m u n i c a t e t h e i r m e s s a g e s t h ro u g h authentic visual stories .

WHAT WE DO B R A N D STO R Y B R A N D I M AG E C A M PA I G N ST R AT E G Y C A M PA I G N E X E C U T I O N C O M M I S S I O N E D STO R Y C O M M I S S I O N E D B O O KS COMISSIONED VIDEOS C O M M I S S I O N E D I L L U ST R AT I O N S C O M M I S S I O N E D A N I M AT I O N

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fa c e b o o k . c o m / a r t l a i r l t d /

GOOD DATA IS ACCESSIBLE DATA BY GLORIA IRIBAGIZA

Photography: Geoff Bartlett

A VAST DATA AUDIENCE

ata is fast becoming a fantastic resource in Rwanda as it becomes increasingly used by private sector players, who are tapping into the ever-increasing availability of information on the market in the form of data analytics – the science of examining raw data with the purpose of drawing conclusions about that information.

Data analytics provides one of the bases for policy reforms that drive development by not only providing a skeletal framework for business growth, but by also opening up various layers of detailed information that provides business people and policymakers with a sense of where investment priorities should be placed. Consequently, data analytics is becoming a much-needed economic resource for Rwanda and the region’s businesses that aim to make better business decisions based on consumer behaviour, patterns, and market trends. However, the question that must be asked is: can Rwanda’s public or private sector provide data that will drive informed business, investment, and policy decisions.

A n understanding of the value of good data is a necessary prerequisite before easy access to data can actually be beneficial to any majority of the population. Mr Sachin Gathani of Laterite, a research firm that focuses on data, One way Laterite connects with its data research, and advisory, said that their audience is through working on a numresearch work for the private sector has ber of projects that engage their clients in been very limited. This, he attributed the most cost effective way. to a limited appreciation of how useful data and research can improve business- “We are working on creating a panel called ‘The Kigali Panel’ where we will get es and the costly process of rigorous and well done research. 10,000 people across various demographic profiles, registered to participate in future “The clients we have worked for tend to be SMS surveys. So if a company approaches larger organisations who have a culture us and wants to know, for example, how of commissioning research. This is somemany people, within the demographic thing we are cognizant of and that’s why of 18-25 year-olds that have a university we are trying to create research products degree, read The Accelerator in Kigali, that are affordable for smaller businesses given that we’ve signed up 10,000 people, and organisations,” Gathani said. we can send immediate SMS surveys to people within our panel database that fit “Our philosophy is that research is a this criteria. Within a few hours, we can public good. We have no interest in provide results. This makes it much easier hoarding the research that we conduct and we would like all interested stake- and cost-effective for smaller businesses and organizations to commission research holders to be aware about any interesting findings that emerge from our research,” and engage with their customers/beneficiaries,” explained Gathani. Gathani explains.

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ONE CARD, ONE CITY According to Buchana, “Data analytics monitor their operations from a control room,” AC Group’s CEO explained. helps you make informed decisions and protects you from wasting resources “We are now giving them real data, dayinvesting in products that are not even in, day-out, everyday, every single minute, needed on the market. It also places you and they are able to have real figures based closer to your larger customer base so you on facts, make quick decisions, and if they can optimise and improve on profits, cut need to set prices tomorrow, they will base down on wasted resources, and increase that on the facts of yesterday night and sales significantly.” not on findings of six months ago when a study was concluded,” said Buchana. As a result of AC Group’s research, they Mr Patrick Buchana, the Chief Execu“found out that bus operators were losing The data analytics that Tap&Go engages tive Officer and Founder of AC Group, 40 per cent of their revenue to fraud” due and the way it processes information is a smart transport solution in Kigali, said to the absence of factual numbers that customised to Rwanda to fit the transport that when his company got into business, account for the mobility of passengers. needs of the average commuter. At a cost they approached Kigali’s bus operators of only RWF 500 (USD $0.60), anyone with an idea of how to change the trans- “If we had to give them [bus operators] a can purchase a smartcard and top up to solution to the problem of delays, we also port mayhem using data derived solutions. any amount that they can afford. Howevhad to give them a solution that would “For very long entrepreneurs have been cut down on debt, unprecedented theft, er, it will only work efficiently as long as running their businesses in traditional and fraudulence,” he said. infrastructures for Internet (4G Wi-Fi) to facilitate this data shift is established. ways, but times have changed, especialSince AC Groups inception of the smart ly for companies that are in the service transport system, Bucyana says that they Additionally, the data that Buchana’s industry. There is a new form of investnot only monitor the bus payment pat- business provides to transport operament that comes in the form of venture tors enables them to make informed terns, but also the bus locations and the capitalists, angel investors, philanthrodecisions based on real information. number of passengers on the buses. This Transport companies can now know the pists, and investment firms – who all helps bus operators recoup at least 30 per number of buses that are supposed to be want to see what you have done in the cent of their revenue previously lost to fraud. deployed on certain high-traffic routes, past and what you are going to do in the how many people are in a certain zone, future,” Buchana said. “We help them use factual numbers that they can show to a bank so they can and figure out peak movements over the “Properly analysed data is more realistic get credit facilities and, because of their weekends during city wide events like than presenting raw data to investors increased revenue, they serve clients bet- football matches, so that they can preon an Excel sheet and hoping that the ter, and most importantly, they cut down pare in advance to maximise on making figures will fall into place in the future,” on delays as there is no waste of time. profits and providing a service to public Buchana said. Bus operators can track movement and commuters with minimal delays. The appreciation of data as a public good is also expressed by AC Group’s Tap&Go smart transport solution. The automated fare collection business concept aims at mitigating the transport woes across Kigali’s rush hour. It is a solution that is comparatively similar to other transport companies in major cities like the Oyster in London and the Octopus in Hong Kong.

CRUNCHING MORE NUMBERS [restrictive analysis] since it is not part of opment and Poverty Reduction Strategy Businesses trying to get ahead of their competitors need to find more inforour mandate,” explained Habimana. II as one example of how data is used to track progress and inform policies, saymation on the market to inform their “We publish our research on our website ing that all sectors use data to inform the decisions. They can either collect it so that anyone can access it and use it for strategic plans of their districts. themselves or look for someone who has their benefit. However, it does not mean already collected it, like at the National that they are not allowed to do another “At country-level, we use these procedures Institute of Statistics of Rwanda (NISR). survey if they want to do so,” he said. and customise them to the Rwandan context. We integrate these in a way that Mr Dominique Habimana, the DirecNISR’s scope covers a vast range of data tor in charge of Statistical Methods, allows compatibility at the global level audiences, from the Government of when needed. This is a way of ensuring Research, and Publication at the NISR, Rwanda, the private sector and civil socithat data is of good quality, accurate, says that since their inception in 2005, ety, to international organisations operatunbiased, and relevant,” Habimana said. their core mandate has been to produce ing in and out of Rwanda to support the official statistics to support evidence government’s development programmes, There is a lot of raw data and statistical based and learning processes of Rwanda. research institutions, the academic cominformation accessible on the NISR NISR also supports other institutions to munity who take NISR’s datasets and website that is open to the public domain. carry out data production and managere-analyse them further, and finally, indi- Rwanda is also ranked among the top ment that is aligned to internationally viduals who are interested in statistics. countries that have opened up their recognised standards and methodologies. statistical information as indicated on Habimana states that the use of statistics Open Data Watch. It is open, accurate, “Our datasets have a lot of informais really good and has been increasing and transparent, and this information is tion. We cannot analyse it fully but we over time, especially as seen by the govavailable for all people to use. encourage researchers and academics to ernment when it comes to informing take our datasets and go analyse them policies. He cites the Economic Develfurther because our main analyses stop at

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DISTRIBUTION OF BUSINESSES IN RWANDA

DOES ACCESSIBLE DATA = GOOD DATA?

Ms Eva Ghirmai is a researcher at the International Growth Centre (IGC), a research-based organisation that operates in 14 partner countries throughout Africa and South Asia. They focus on academic research, and in Rwanda, they provide “demand-led, frontier research to support sustainable and inclusive growth.” Ghirmai is working on a research project with three professors in collaboration with the Rwanda Revenue Authority (RRA) on Electronic Billing Machine (EBM) usage that was introduced in 2013 to help improve value added tax (VAT) compliance. They collect and analyse data to help policy makers. She explains that research is not only useful in government policies but also for improving businesses and other organizations.

Therefore, the reality is accessible data will in practice only be used by a small subset of people like researchers, data companies, external consultants, and people who do their own data collection.

something is working or not. This type of research is beneficial when you already have an idea that you want to test – so data can act as a pre-determinant for investment priorities.

Caution is also necessary when it comes to understanding how data was collected and how it can be used in analysis.

So, does accessible data equal good data? And can Rwanda’s public or private sector provide data that will drive informed business, investment, and policy decisions? The bottom line, according to Ghirmai, is that for data to be useful, it needs to be collected by appropriate research and/or sampling methodologies and accessible to its consumers. Even then, for the average consumer, it must be further distilled or otherwise analysed for it to be practical. ~

She confirms that the idea of open data is great – but it needs to be useful, acces- “Some research is very specific however, and sible, and relevant. in some cases, you can’t be sure how that data was collected and if it is not represent“If you want to give the general public ative, you could come away with learnings access to a big data set, it’s useful to think that are not generalizable,” Ghirmai said. in terms of who is going to want to use How would one then know if a program it and how. It is for those people who is working? That’s where current research know how to use it because they will know what to do with it,” Ghirmai said. in impact evaluations can determine if

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MICRO-ENTREPRENEURSHIP IN RWANDA: A STORY IN PICTURES BY GEOFF BARTLETT

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Only eight months ago, Dieudonné described himself as a peasant farmer, earning around RWF 500 (USD $0.60) per day digging for others. Dieudonné’s village had no mill, with farmers having to cart their grain to another village. Seeing an opportunity, Dieudonné and his wife pooled their resources and bought a milling machine. Now he is the miller for his village and has more than tripled his monthly income The AcceleratoR ~ ISSUE 6

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THE USED CLOTHING INDUSTRY BLIGHT OR BLESSING FOR RWANDA’S ECONOMIC GROWTH? BY EMMANUEL RUTAYISIRE

hat does the used clothes industry mean to the average Rwandan? Affordable clothing for people who could never consider new clothes? Accessible style to urbane worker? Employment for street vendors, the numerous tailors adjusting fit, and the people working in the markets? Can the environment win too? (Good clothes that might otherwise be dumped or turned into rags continue to be useful.)

But despite all of this, imports of used clothes suppress the growth of a domestic clothing industry. Who will buy locally produced new clothes when good quality used imports are more cheaply available? The Rwandan government is focused on economic development, and has turned its attention to used clothes imports versus a domestic clothing industry. Initially the East African Bloc discussed banning all used clothes imports, but more recently, the Rwandan government has proposed to achieve the same end through an import tax that appears designed to cripple the used clothing industry.

THE USED CLOTHING TRADE Used clothes are shipped to East African ports in containers, then transported overland to Rwanda. A used clothes dealer will pay around USD $20,000 for a container of bundled clothes. We recently spoke to John at a Kigali clothing market. John buys bundles of clothes for around USD $100 each. When he buys the bundle, he doesn’t know what he will find. Quality brands like Polo Ralph Lauren, Zara, Lacoste, and Tommy Hilfiger will make for a good day; on a bad day, he will find bundles of cast-off Halloween costumes or worn out school clothes. John unpacks the bundles, sorts the clothes by quality, cleans them if necessary, and sells the clothes at auction. The auction is chaotic. John’s porters bring up bales of clothes, the buyers clamour for attention as clothes are passed down for individual inspection, and money is passed back up. John has been working in the used clothing trade for 17 years and earns, on average, about RWF 5,000 (USD $6.25) per day. He employs two or three porters. They earn RWF 1,500 (USD $1.90) per day. The lowest quality clothes are sold for RWF 200 (USD $0.25) per piece, and these might sell for RWF 500 (USD $0.60) on the street. These buyers then distribute clothes to a network of street hawkers. Most of the traders and the myriad of ancillary workers are poorly educated, relying on what little they eke out from the used clothes trade to support themselves and their families.

Photography: Geoff Bartlett

THE END OF THE USED CLOTHING INDUSTRY? The Rwandan government has announced a tax increase of USD $0.20 to USD $2.50 per kilogram of used clothing. Taxes on used shoes are also rising from USD $0.50 to USD $5.00 per kilogram. This will immediately make the low end of the market unprofitable; the customers for the cheapest clothes cannot pay an additional USD $2.50 per kilogram when they are buying pieces at RWF 500 (USD $0.60). Even for traders like Nsanzimana – who sells outfits at Biryogo Market in Nyamirambo, a neighbourhood of Kigali – selling outfits to low paid professional workers means big trouble. While Nsanzimana might sell an outfit for RWF 20,000 (USD $25), up to one third of his bundles are destroyed by mould or vermin, and he will still pay USD $2.50 per kilogram on those unsellable clothes. Nsanzimana fears for his livelihood. “I anticipate a massive exit from the trade this coming July. I don’t know what I will do for my two daughters to continue feeding them and let them stay in school,” he says. He also questions what his customers will do: “How can someone making RWF 250,000 [USD $312] per month afford new outfits suitable for the workplace?”

DUSTRY CLOTHING IN A DOMESTIC

a domestic its hopes on g in n n pi is in the used ent The governm place jobs lost re e ill w at th stry ts out, “Wher clothing indu nzimana poin sa y N or ct as , fa ut at B h e. ories? W ct fa clothing trad e th e 0] ar D $0.6 , ? Where WF 500 [US R is the cotton of s es dr wandans?” a shirt or majority of R e will produce th of s n ea erage m Kanimwhich is the av stry, François du In d an look for r of Trade “When you e: lin The Ministe c ti is m of garment more opti ry, the share st ba, argues a du in ts en oduct is 60 e garm examples in th price of the end-market pr only 40 per the ls comprising fabrication in ia er at m w ra the ials, you can per cent, with uce raw mater od pr t n’ do u if yo value addition cent. So even icipate in the rt pa h.” d an ls ia ater lue of the clot import the m cent of the va r pe 60 of ge in the ran g used clothat suppressin th g in gu ar is ent ufacturing of The governm stimulate man to at ry sa es ec is n ports, and th ing imports ultimately ex d an an th s lly n ca da ti es Rwan clothing dom benefit more ht rm this will te ld. They mig g n ou lo w e ue th n ti in n co to o e ailabl to status qu elling data av allowing the od m o n is t there implications. be correct, bu or explain the x ta e th t or supp sition from a r how to tran de si n co ld ou manufacturent sh y to clothing The governm om on e ec g in h clot blow for thos thriving used to soften the ow is h m d ti an op t – s os rt der the m un ing and expo en ev se ed lved. Becau dan textiles, us who are invo boom in Rwan jobs for a time. re tu fu a of without tic scenarios rs will be left ars clothing worke onymously, fe al, speaking an ease in crime,” ci offi t en m cr A city govern pate a huge in to fact we antici n s and belong “I . ill st sk or er w h e ot th o n e av h g. ythin ” ~ y of them ble of doing an he says. “Man pa ca is at th ciety that class of so

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