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How Can Rwanda Afford to Sponsor Arsenal?

In 2018, Visit Rwanda, which is an extension of the Rwandan Tourist Board, signed a $39million USD deal with Arsenal Football Club to become a shirt sleeve sponsor for 3 years.

The partnership caused significant controversy. Critics argued that it was immoral for Rwanda to spend money on sponsoring football teams, while it takes foreign aid to help fund its schools, hospitals and infrastructure. So why did the government choose to spend its money in this way?

While it is a somewhat novel way of spending, the partnership constitutes a significant investment in Rwandan tourism. Increasing awareness and visibility through marketing a is one of the most important ways to develop the tourism industry. The sponsorship, therefore, is part of a wider effort to boost the value of the tourism industry in Rwanda.

By all accounts, it seems that the investment has worked. According to Rwandan Development Board CEO Clare Akamanzi, revenue increased by 17% overall after just one year of sponsoring Arsenal. There has been a 22% rise in European visitors, and the United Kingdom has gone from the fifth biggest market to the second biggest market for tourism to Rwanda.

Responding to critics, Akamanzi said: “Anyone who criticises our deal with Arsenal on account of Rwanda being poor or an aid recipient, either wishes for Rwanda to be perpetually so, or doesn’t understand that in any business marketing costs are a key component of a company’s expenditures”.

It is clear therefore, that while there are critics, the strategy is targeted at increasing prosperity in Rwanda. Visit Rwanda has also secured a deal with Paris Saint Germain more recently as a tourism partner, in a 3-year deal valued around $9 million USD.

Rwanda to be First African Host of Cycling Road World Champs

Cycling’s 2025 road world championships were awarded to Rwanda on Friday in a first hosting by an African country.

The capital city Kigali “will provide a magnificent backdrop” for the weeklong championships which were first held in 1921, International Cycling Union president David Lappartient said.

It’s the latest international sports project for Rwanda and long-time leader Paul Kagame which have faced criticism for repressive policies and human rights abuses.

Kagame hosted FIFA president Gianni Infantino this year to open a regional development office for soccer’s world body in Kigali.

Rwanda recently renewed a $13 million annual shirt sleeve sponsorship of English Premier League club Arsenal through 2025, and Kagame criticized the team on Twitter after losing the season-opening game.

The Rwandan president was in Belgium on Thursday to meet Lappartient ahead of the hosting decision being made on the sidelines of the road worlds.

The 2025 worlds in Kigali are also scheduled to be the venue for the UCI’s four-yearly elections.

Lappartient was re-elected unopposed Friday for a second term.

Is Rwandan Coffee Sustainable?

Rwanda is famous for its coffee, which is largely produced by small-scale sustainable coffee farming.Rwandan coffee has developed a reputation for its high quality, attracting coffee roasters around the world.

While the first coffee plants reached Rwanda relatively late in the 20th century, it was only in the last two decades that Rwanda experienced a “coffee renaissance”. Today, Rwanda is one of the top thirty largest coffee-growing countries. Sustainability lies at the heart of the Rwandan coffee industry, and local non-profit organisations like Sustainable Growers Rwanda provide training to female coffee farmers and their families, helping them improve the sustainability and economic viability of their plantations.

Coffee beans grow at between 5000 and 6000 feet above sea level, making Rwandan brew famous for its rich, deep finish.

What is the Kigali Financial Centre?

Kigali International Financial Centre, abbreviated as the KIFC, is an initiative which has the objective of making Rwanda a preferred financial jurisdiction for investments into Africa. It also hopes to provide a fresh element to the domestic industry within the African nation.

Whilst the name may lead you to think it is a physical place, this is, in fact, not the case. The Technical Advisor of Rwanda Finance Limited has explained that the KIFC is, in fact, a concentration of financial services, striving to be a catalyst for the country’s development.

The mission has been defined as “connect the Rwanda financial ecosystem to domestic and international business” and “be a catalyst of a safe, compliant and pro-business financial environment in Rwanda”.

It will provide a number of benefits, including an economic trickle-down in the creation of alternatives for mobilizing capital rather than focusing purely on traditional avenues.

Like in other countries that have developed IFCs such as Singapore, it will also lead to an increase in the quality of jobs and specialized skills development, as well as additional tax revenues for the government.

During the virtual signing of the partnership, Rwanda Finance’s CEO, Nick Barigye, said: “This partnership is a major milestone for our nascent International Financial Centre. It will ensure that we have an optimal legal, regulatory and institutional framework that is in line with international norms and standards.”

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.

What 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.

Did 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.

How 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.

Is the Rwandan Economy Growing?

The Rwandan economy is seeing consistent growth throughout the 21st Century.

The Rwandan economy has bounced back incredibly well from the economic turmoil created by the civil war and genocide against the Tutsi, seeing consistent growth throughout the 21st Century. For the decade from 2001 to 2010, Rwanda was in one of the top ten fastest growing economy in the world.

Since the start of the 21st Century, Rwanda’s GDP has grown from $2.7 billion to $9.2 billion in 2016 – which amounts to an average of 14.42% growth per year. This is over double the average rate of sub-Saharan African economies during this period, which is 7.2% per year.

The Rwandan economy has continued to show strong signs of growth. The Covid-19 pandemic came in the midst of what the World Bank described as an ‘economic boom’ in Rwanda, after the economy grew by 10% in 2019.

The result of the pandemic has already been pronounced, with a drop of 12.4% in GDP in the second quarter of 2020. According to Nordic bank Nordea, the economy is expected to bounce back to a rate of 6.7% growth in 2021. Research group Focus Economics has also predicted that Rwanda will grow at a faster rate than any other economy in the world in the 2019-2024 period.

What Was the Role of the International Community during the Genocide?

The international community’s inaction during the Genocide against the Tutsi is a source of shame and regret.

After the Arusha agreement led to a ceasefire in the 1993 Civil War, the UN deployed UNAMIR, a peacekeeping force, to monitor the implementation of the negotiated settlement. The Force Commander was a Canadian General – Roméo Dallaire.

In his book Shake Hands with the Devil, he recounts sending the infamous ‘Dallaire Fax’ on January 11 1994. The fax referred to information from a highly-ranked member of the Interahamwe militia, who had informed him that registration lists of ‘all the Tutsi in Kigali’ were being made, and that ‘in 20 minutes his personnel could kill up to 1000 Tutsis’.

Despite clear evidence of planned murder, the international community failed to take action. According to Alison Des Forges, the French government ‘certainly knew about the preparations for killing Tutsi and opponents of Hutu Power’, yet ‘continued to support the Rwandan government diplomatically’. Belgium, on the other hand ‘tried hardest to respond to the warnings of imminent slaughter’, but their calls for a bolstered peacekeeping force went unheeded.

Once the genocide against the Tutsi began, international powers were reluctant to intervene outside of evacuating their own personnel from Rwanda. Samantha Power observed that American officials, and other diplomats around the world, avoided the word ‘genocide’ at all costs. Seemingly, they were ‘afraid that using it would have obliged [them] to act under the terms of the 1948 genocide convention’.

As the genocide raged on, rather than bolstering the peacekeeping force, the UN retreated. On 21 April 1994, UNAMIR shrank to just 270 troops. With deaths numbering in the tens and hundreds of thousands, the UN reluctantly approved UNAMIR II which would provide 5,500 more troops. The implementing resolution (Res. 924 1995) came a full two months after the killings began – after, according to Secretary General Boutros-Ghali – up to half a million people had already been killed. According to an OECD report, the deployment of this resolution took two months: the reinforcements arrived ‘after the civil war and genocide were over’.

Alongside UNAMIR II, the French government announced that they would be sending a mission to establish a ‘safe zone’ in South-West Rwanda. Their intervention, which involved 2,500 soldiers, was named ‘Operation Turquoise’.

This operation become infamous for its misguided nature. It enabled thousands of militia men to flee unhindered, and the roadblocks that paved the way to safety might have even enhanced the speed of killing. According to Samantha Power, the French ignored the fact that Radio Mille Collines’s messages which encouraged the killing of Tutsis were being broadcast from the ‘Zone Turquoise’. They also neglected to arrest or apprehend any militia leaders.

Eventually, the Genocide was brought to an end by the RPF forces when they reached Kigali. In recent years, many UN officials have expressed regret, sorrow and shame for their lack of action in 1994.