Monday, August 18, 2008
Rwanda, may believe in economic ideologies, but not when its own is at peril. The country is putting in measures to deal with imported inflation by fighting competition policies through import restrictions. Though not a smart move, it does appear that the country’s economic management team took one lesson in taxation.
Realising that agriculture is the main stay of the economy, Rwanda has decided to make fertilizer importation easy as taxation rules have been relaxed. Consequently the growth in agriculture means a natural there is enough savings on food to invest in other areas of the economy such as industrial goods.
So, an initial 6.8% growth set for the economy is now raised to 8.5%. Perhaps all African countries with a potential famine ought to emulate Rwanda.