Rwanda Called Attractive for Foreign Retailers

A.T. Kearney has named Rwanda the most attractive African market for retailers.

In its first-ever report, “African Retail Development Index,” the global management consulting firm cited a country where the economy has grown an average of nearly 8 percent over the last four years because of increased agricultural productivity, tourism and government spending on infrastructure and housing.

The nation has reduced the percentage of people living below the poverty line from 59 percent to 45 percent between 2001 and 2011, with the share of people living in extreme poverty falling faster. Life expectancy, literacy, primary school enrollment and spending on health care have all gained in recent years.

The International Monetary Fund said that economic growth in sub-Saharan Africa would average 6.1 percent this year, compared with 3.7 percent worldwide.

The New York Times noted that Rwanda is heavily dependent on foreign assistance, which got slashed after a United Nations report accused the country of fostering a recent rebellion in neighboring Democratic Republic of Congo, squeezing the budget. So Rwanda is aggressively seeking investors. In 2013, it sold $400 million in bonds around the globe, part of a record year for African bonds.

Despite the slowdown in China and the reduction of capital from emerging markets, analysts say that Rwanda has held up better than many and has continued to make tangible headway in living standards. The nation of 12 million people has reduced the percentage of people living below the poverty line from 59 percent to 45 percent between 2001 and 2011.