By David Himbara
The World Bank’s 2019 Doing Business Report has ranked Rwanda higher than China, Japan, India, France, and Brazil. Rwanda is ranked 29th, France 32nd, Japan 39th, China 46th, India 77th, and Brazil 109th. We are made to believe, therefore, that Rwanda has a better business environment than these countries. This is a case of comparing elephants to an ant.
Comparing China, Japan, India, France, or Brazil to Rwanda is like comparing an elephant to an ant.
The World Bank’s rankings are most bizarre — they are comparing the incomparable. The gross domestic product of the countries being compared to Rwanda are as follows:
- China is the 2nd largest economy in the world with US$12.2 Trillion GDP
- Japan is the 3rd largest with US$4.8 Trillion GDP
- India is the 6th largest with US$2.5 Trillion GDP
- France is the 7th largest with US$2.5 Trillion GDP
- Brazil is the 8th largest with US$2 Trillion GDP
- Rwanda is 140th with US$9 Billion GDP
Now, look at how much foreign investment these countries attracted in 2017:
- China — US$168 Billion
- Brazil — US$70 Billion
- France — US$47 Billion
- India — US$39 Billion
- Japan — US$18 Billion
- Rwanda — US$293 Million
Rwanda’s so-called superior business environment does not translate into attracting foreign investment. Rwanda’s performance is even worse compared to its neighbors. In 2017, Tanzania attracted US$1 Billion in foreign investment. Uganda attracted US$699 Million. Kenya attracted US$671 Million.