Saturday 20 October 2012

Kagame and Kabila - could they ever be a dream team?


Much of sub-Saharan Africa is high-growth GDP territory these days, eclipsed only by Asian economies. Rwanda is right up there with the highest, seemingly capable of growing at a 7-8% clip, versus around 5% for the region as a whole, and with only modest inflation to boot. This is a  far cry from the country ravaged by the appalling civil war in 1994 when something like 20% of the population was wiped out. In the aftermath millions more were killed in eastern part of the Democratic Republic of the Congo after Laurent Kabila (father of current DRC president, Joseph Kabila) came to power. Rwanda has gotten great press in recent years, billed by some as 'Africa's greatest success story'. Under the rather authoritarian government of Paul Kagame the economy has made great strides, pursuing a kind of command and control strategy reminiscent of Singapore. It is very strong on regulatory overhaul: it now takes just one day to register a new business. Unfortunately, the conflict in neighbouring DR Congo continues, with the UN now accusing Rwanda of supporting rebels in eastern DRC. This area is immensely rich in minerals and it's likely that the lure of profits in tin, tungsten and tantalum mined in the region is behind the funding for this rebel activity. The potential for these two countries in the next century is potentially enormous if only they could cooperate. Kigali, Rwanda's capital could become the service hub for DRC's eastern mineral wealth, to the benefit of both their populations. The QSL is from Radio Rwanda, heard in Johannesburg in 1992 on the 49mb where it is still active today.

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