Responding to Peter Mahirwe’s economic analysis

Let’s assume the doctored social context you have posted is right, you stated that in 2001 poverty dropped from 59% to 49%. You have again told us that in 2008 Rwanda enjoyed economic growth of 8%. Let me educate you, as I know your limits, it seems your just doing some copy and pest without knowing what you’re pesting. According to Rwanda’s report under the Junta administration, Rwanda has been experiencing an average GDP growth of 8% for the last 16+ years. To any sober mind, this unprecedented economic growth is unachievable, especially to a country where 80% of the population live and survive on subsistence farming.

When you ask to inept sycophants like Peter, the factors which supports this type of economic growth, some don’t know and those who pretend to know, they will talk crap. He has posted a reference of GDP growth of 8% in 2008, what sector supported that kind of economic growth??

For those who remember, 2008, was the year when the world experienced recession, with stock markets crashing in several cities, major developed country saw negative growth with respective central banks intervening by injecting more money – quantitative easing. As Kagame’s mouth piece, Peter – Tom Ndahiro has shown us, Rwanda experienced unbelievable economic growth in 2008. What was Rwanda exporting or what services was the country providing in order to achieve that kind of growth.

In 2005, Rwanda was forgiven all her debts, now the country has surpassed the $2billion mark in foreign debt. Economic growth doesn’t go hand in hand with debt increase, you can’t be singing of economic growth, while at the same time your borrowing. Economic growth leads to debt servicing not debt borrowing. These sickos lie brainlessly; they assume everyone is as idiotic as them!!!!

Economic growth doesn’t go hand in hand with unemployment, the levels of unemployment are unimaginable, and this sycophant is trying to explain the unexplainable facts of magical growth. With the Kind of growth that is trying to tell, we expect to see employment levels on the increase. The only sector which has seen an employment increase it’s the moto bike taxis – motari – Bodaboda- Taxi velo.

With economic growth, we don’t expect to see high mortgage foreclosure as its now happening in Rwanda; redundancies and high inflation are making clients default on their mortgages. But this goon is singing shit at the expense of suffering Rwandans.

Most of the Tiger countries ie Singapore, it took them merely 12 years of yearly economic growth averaging 5% to turn from developing nations to donor/middle income economies. For Rwanda, over the past 16 years, under Kagame, it has seen an average yearly economic growth of around 8%, but the country is still a banana republic with 50% of her budget coming from donor nations. The economic growth as taunted by Kagame and his sycophants are mere facades, lies and doctored.

How do you explain such yearly economic growth, yet civil servants on daily basis are complaining of delayed salaries? How do you explain of economic growth when hospitals are going without medicine?? How do you explain of economic growth when students are not getting their government scholarship on time and others being omitted?

The country’s sovereign credit rating was termed as not fit by all major creditors because of numerous defaultings. Most of the government bonds were sold to money lending sharks at extreme interest rates. Just this May, the minister of finance told everyone that the Country’s government operational funds are drying up; this was followed by putting on market central bank bonds. The Country has been mortgaged by Mr Kagame – I feel sorry for the future generation; the government is operating on a credit card. All major projects that Tom Ndahiro came around yapping, where build on inflated foreign loans e.g the Kigali Convention Centre which was built at an equivalent of 17% of the Country’s budget. Now, Kagame’s Company, Crystal Ventures has informed Rwandans that has shares on KCC. How???

The country has always experienced high levels of trade deficit, this should always reflect on the levels of growth. But, under Kagame’s doctored economic reports, everything are rosy and superb. Just look at all bank’s interest rates at around 17%, this doesn’t attract investors or business people who want to expand or venture in new projects thus employing more workers. Rwanda’s interest rate is the highest in the region; we have to remember that, like any other sector, the banking sector is also controlled by Kagame through is company, Crystal Ventures.

Without the liberalisation of the economy, development of human capital, revision of the tax system which hits small businesses than Kagame’s businesses, low borrowing and flexible rates, stopping of state corruption……etc. We shall continue seeing the façade – doctored economic growth as preached by Kagame and his sycophants, while the real picture will indicate otherwise – total economic failures and malfunctions.

NB: Below its Peter Mahirwe‘s copy and paste analysis. 

Economic Overview

Rwanda’s long-term development goals are defined in a strategy entitled “Vision 2020”. The strategy seeks to transform the country from a low-income agriculture-based economy to a knowledge-based, service-oriented economy with a middle-income country status by 2020.

In order to achieve these long-term development goals, the government of Rwanda has formulated a medium-term strategy. The second Economic Development and Poverty Reduction Strategy (EDPRS 2). The overarching goal of the EDPRS 2 is growth acceleration and poverty reduction through four thematic areas: economic transformation, rural development, productivity and youth employment, and accountable governance. The EDPRS 2 aims to achieve the following goals by 2018: raise gross domestic product (GDP) per capita to $1,000, have less than 30% of the population below the poverty line, and have less than 9% of the population living in extreme poverty.

These goals build on remarkable development successes over the last decade which include high growth, rapid poverty reduction and, since 2005, reduced inequality. Between 2001and 2015 real GDP growth averaged at about 8% per annum. Recovering from the 2012 aid shortfall, the economy grew 7% in 2014 and 6.9% in 2015, up from 4.7% in 2013.