IDCA News
All IDCA News4 Nov 2024
A Look at Rwanda: East Africa's Small Powerhouse
Rwanda has one of the more ambiguous reputations in Africa. Despite a very low income level, it has made very large strides with respect to its digital infrastructure in recent years. Rwanda has continental Africa's highest score in the IDCA Digital Readiness Index, by far, reflecting this progress. It also has one of the world's more controversial leaders, President Paul Kagame.
So what can we make of Rwanda? It is small and landlocked, with an area and population roughly the size of New Jersey or Belgium. Its total economy of $15 billion is similar to that of Akron, OH. Yet it is a highly influential nation, with Kagame appearing on many influential daises over the course of any year.
Despite its recent progress and relatively high Digital Readiness ranking, Rwanda's annual per-person income of around $1,000 remains among the lowest in Africa and the world. It retains a relatively good cost of living, although rapid economic progress inevitably brings costs of as well, over time. Rwanda's mobile infrastructure has developed relatively well recently, but 30% of its people still lack direct mobile access.
The country's data center footprint it much stronger than those of its neighbors, and consumes almost 2% of its electricity grid, a high percentage for sub-Saharan Africa. Yet it remains very small compared to the world median.
A look at Rwanda's Digital Readiness overall score – and across the four broad categories of Economy (including digital infrastructure), Environment (including sustainability), Social, and Governance – compared to some of its neighbors and the world shows the following:
Comparing Rwanda's bond rating with its Digital Readiness numbers shows that Rwanda's current below-investment grade rating is undervalued. (A similar situation exists in Zambia as well.) Investors may not normally take a small African country seriously, preferring to focus on larger neighbors (in this case Kenya, Tanzania, and Zambia). But Rwanda can also be a linchpin country in the region, with a much higher degree of consequentiality than raw numbers can indicate.
Follow us on social media: