June 8, 2005—Every week on the outskirts of Rwanda’s capital, Kigali, four tons of roses are carefully packed into boxes for export to Amsterdam. Not too far away a group of people work in the Ndera washing station carefully washing coffee – some of which is exported to niche markets, such as the American coffee chain, Starbucks. Both enterprises are examples of the private sector operating in Rwanda – a country still suffering the effects of years of political turmoil and ethnic violence. Rwanda’s private sector is small – with only about 400 companies in the country, half of which employ less than 50 people. Beatrice Gakuba is one private entrepreneur who took a calculated risk with her business, Rwanda Flora. But it was a gamble that paid off. Gakuba bought Rwanda Flora as it became liquidated early last year. She now employs about 200 people – mostly women from rural areas. Rwanda Flora cultivates flowers for export to Europe, growing more than ten varieties of roses. During his visit to Rwanda, World Bank President, Paul Wolfowitz will meet Gakuba to hear her experiences as an entrepreneur in Rwanda. The new president will also meet businessmen behind Rwanda’s coffee industry. One of them will be Alfred Nkubili, a shareholder of the Ndera coffee washing station. A specialized coffee grower, who now owns four washing stations across the country, Nkubili began his career investing in a trucking company, before diversifying. Wolfowitz will have the chance to see how the Nder washing station operates. Employing about 30 people, the station is owned by a group of private investors who buy mainly unprocessed coffee from local farmers. They also own about 40 hectares of coffee plantation. Just last year, workers at Nder washed up to 400 tons of coffee and exported up to 80 tons. It’s the kind of entrepreneurship the Government of Rwanda wants to foster and promote. The World Bank, too, has been actively supporting Rwanda’s fledging private sector through two on-going projects - a $7.5 million Regional Trade Facilitation Project and a Competitiveness and Enterprise Development Project, worth more than $40 million. The regional trade facilitation project, which began in April 2002, was designed to improve access to financing for productive transactions and cross-border trade, by providing guarantees against political risk. The competitiveness and enterprise development project was set up in April 2001, with the clear aim of helping the government establish an enabling environment for private sector led growth – with such growth seen as a way to help reduce poverty in the country. |
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