How much Economic Inequality is there in Rwanda?
Rwanda has higher levels of inequality than many of its neighbours, but these disparities are decreasing.
The Rwandan Gini coefficient – the most prominent indicator of economic inequality – is 43.70 (as of 2016). This is significantly below the global average, which is somewhere between 60 and 65. However, Rwanda’s inequality rate is high for the region, and is more economically unequal than its regional partners Kenya, Uganda, Tanzania and Burundi.
There is a consensus that the rate of inequality is gradually being reduced. While some uncertainties remain, given the lack of extensive economic data, there is a broad consensus that Rwandan inequality rates are falling. Indeed, its current Gini coefficient is a significant reduction from its peak of 52 in 2005.
World-leading developmental economist Paul Collier has said that such a reduction is ‘deeply impressive’, given that it has taken place alongside rapid GDP growth and poverty decreases.
Read MoreWhat are the most Important Sectors of Rwandan Economy?
Rwanda has a diverse and thriving domestic economy which is open to the world.
The primary sector is still the most crucial part of the Rwandan economy. According to KPMG, over three quarters of the population relies on agriculture as their main source of income. While Rwandan coffee is famed around the world, farmers also produce tea, bananas, beans, sorghum and potatoes, among other crops. Natural resources including gold, tin and tantalum have also seen significant investment in recent years.
Outside of the primary sector, the Rwandan economy has undergone a strong period of diversification in the secondary and tertiary sectors. In particular, energy, construction, hospitality and financial services have been growth leaders.
Rwanda’s main imports are electrical equipment, machinery, vehicles and cereals. The country’s most prolific exports are tea and coffee, fuels, minerals and gold.
Read MoreDid Rwanda really Ban Plastics
While plastics are not banned per se, the country introduced a ban on plastic bags.
Since 2008, it is illegal to import, produce, use or sell plastic bags in Rwanda, and penalties are imposed for those who violate the law. Plastic smugglers can receive up to six months in jail.
The law has been adopted to decrease litter and landfilling and to protect the environment, helping Rwanda to become the cleanest country in Africa.
While the law and its strict enforcement has not been welcomed by all business owners, the government did introduce tax incentives and recycling contracts to help businesses manage the transition.
Read MoreHow Rwanda has Addressed Gender-based Discrimination in Cycling?
The Rwandan government has developed policies against discrimination in sports.
Cycling is a hugely popular sport in Rwanda and is playing an important role in reuniting the country. President Kagame has even considered making cycling a national sport.
However, in December 2019, the former coach of Rwanda’s national cycling team, Jonathan Boyer, accused the Rwanda Cycling Federation president, Aimable Bayingana, of corruption and ignoring sexual misconduct against female riders.
Three days after the open letter was published, Bayingana stood down as president, along with the executive members of the Rwandan Cycling Federation.
Following the scandal, the Rwandan Investigation Bureau put the case “under investigation”. The government also took action. Shema Maboko, Permanent Secretary at the sports ministry, commented that: “We are aware that sexual assault and corruption happens, and it is our prerogative to fight it. We are strong on it. We have been using the national policies against sexual exploitation.”
The Rwandan Sports Ministry has promised to impose a new policy against sexual abuse, which will govern all sports activities in the country as part of Rwanda’s broader policy on correcting gender-based corruption.
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