Africa requires $1.3trn in achieving sustainable investments

The Government of Rwanda and the World Bank have jointly launched the new Country Economic Memorandum Report, which highlights Rwanda's impressive economic growth over the past 20 years, averaging over 7 per cent annually. In an exclusive interview with CNBC Africa, Dr. Victoria Kwakwa, the Vice President of Eastern & Southern Africa at the World Bank Group, shared insights on Rwanda's achievements, challenges, and future aspirations. Rwanda has made significant strides in reducing poverty, improving life expectancy, and enhancing access to essential services like healthcare and education. With a vision to become a high-income country by 2050, Rwanda is committed to accelerating its economic growth and ensuring inclusivity and resilience in its development path. Key Points: 1. Enhancing Productivity for Sustainable Growth: One of the key challenges for Rwanda's economic transformation is to boost productivity levels. While the country has experienced growth through capital accumulation, there is a need to focus on increasing productivity to achieve higher growth rates and create more job opportunities. Dr. Kwakwa emphasized the importance of building human capital, optimizing resource allocation, and leveraging urbanization to drive productivity enhancements. 2. Developing a Vibrant Private Sector for Job Creation: Building a strong private sector is essential for sustainable job creation and economic diversification. Rwanda has made progress in creating a conducive environment for private sector growth, with significant foreign direct investment inflows. However, continued efforts are needed to support the private sector in generating better-paying jobs that benefit the majority of Rwandans. 3. Investing in Foundational Learning and Resilience Building: Ensuring quality education and foundational learning is crucial for unlocking children's potential and preventing wasted resources. Dr. Kwakwa emphasized the importance of investing in early childhood development and building resilient systems to cope with climate-related challenges. As African countries face increasing climate threats, strategies such as efficient water resources management, diversification of energy sources, and regional trade facilitation are vital for enhancing resilience and sustainable development. Quote: In response to the urgent need for addressing climate change, Dr. Kwakwa highlighted the importance of building resilience in African countries: 'Climate threats and climate change are not something that will happen in the future; we're living climate change already.' She underscored the vulnerabilities of African nations to climate risks and stressed the need for proactive measures to mitigate the impact on growth, development, and social stability. As Rwanda continues its journey towards high-income status and strives for greater economic prosperity, partnerships with organizations like the World Bank play a critical role in supporting the country's development agenda. By focusing on productivity enhancements, private sector growth, and resilience building, Rwanda aims to sustain its impressive growth trajectory and achieve its long-term Vision 2050 goals.