Globalisation:Rwanda

Civil Service Reform

ASI is implementing a three year DFID funded project to support civil service reform in Rwanda. The project deploys both long and short term consultants and works with the public service ministry and range of other stakeholders to:

• improve performance management;
• develop standard manuals of procedures for human resource officials;
• support implementation of the human resource management aspects of the decentralisation policy;
• revise human resource policies and procedures; and
• implement a payroll and personnel management system.

We are also supporting the development of job descriptions and we are assisting the government to allocate funds from and spend DFID financial aid.

Fighting Poverty through Reform

The systematic campaign of genocide and the civil war that took place in April to July 1994 inflicted incalculable harm on the social and economic fabric of Rwanda. One aspect of these events and their aftermath has been the enormous damage caused to the country’s infrastructure. The achievements of the Government and people of Rwanda in restoring the country have been remarkable. Political stability and security have been re-established and sound institutional and administrative frameworks have been put in place.

But despite the progress that has been made in bringing peace and stability, huge social and economic problems still persist. Facing the twin problems of chronic poverty and the accelerating HIV/AIDS pandemic, with 11% of the adult population estimated to be infected, the government of Rwanda is attempting to improve services and free up essential funds by reshaping the country’s ailing infrastructure.

While much has been achieved, the Government of Rwanda fully recognises that much also remains to be done. Its priority is not only to address the particular consequences of genocide and war but also to tackle longer-term structural difficulties already evident in the pre-war economy, particularly due to the pressures of population growth in a relatively small country with an economy primarily dependent on agrarian activity.

In order to assist the government, the World Bank commissioned ASI to produce a Country Framework Report. This was made up of a review of Rwanda’s essential utilities (roads, telecoms, water, gas, electricity, etc.), an assessmentof the current levels of access to these utilities and a series of recommendations for involving the private sector to increase the efficiency of their delivery. There were two main drivers behind these recommendations:

• Improving national infrastructure and widening access to essential services for the poor
• Moving financial liabilities away from the cash-strapped government to allow focus on welfare spending

In formulating recommendations, particular attention had to be paid to Rwanda’s enormous environmental responsibilities. Any recommendations had to take into account potential impact upon the rich flora and fauna of the unique mountain regions, particularly their diminishing Great Ape populations.

Tea Privatisation - A major boost to rural livelihoods

Tea is a major industry in Rwanda upon which thousands of rural households depend for a livelihood. Tea produced from Rwanda is rated one of the best in the world, but very few know of this fact internationally.

Rwanda is currently engaged in implementing a major programme of tea industry privatization. The aims of the programme are several, the key ones being to bring in much-needed investment in the sector to boost growth and employment, and to involve the farmers in the management of the tea factories.

The Pfunda tea factory, located in a region which borders Congo, is the first of nine state factories to have been privatised. The Pfunda factory had become very run down under state ownership, with major investment needs unmet. Only one production line was operating and the factory was on the verge of closure. It was unable to process all the local farmers’ green leaf, which either went to waste or had to be sent at high cost to another factory over 100 km. distant.

Through a fully transparent and professionally run tender process the Pfunda factory has now been sold to LAB International, a UK-based tea manufacturing and trading company which is one of the major importers of tea from Rwanda. LAB International, paid US$1.1 million for the factory and will invest US$1.5 million to rehabilitate and expand it. It is intended to double production over the next 5 years and increase brand recognition of and international demand for Rwandan tea. An association of local Rwandan tea farmers has acquired 10% of the enterprise.

The new investments will result in higher output and more employment for the local population in this very poor remote region. The livelihoods of over 1,000 households have been safeguarded and employment opportunities for more poor farmers will be created as production expands. Adam Smith International is assisting the Government of Rwanda in tea sector privatisation. The next challenge is take forward this first success and tackle the remaining state-owned tea factories.

Notes

Adam Smith International - Case Studies - Rwanda