Kigali: The UK will sharpen its focus on economic development in the world’s poorest countries to help create the economic growth that will sustain rapidly growing populations, provide a long term solution to poverty and deal with the root causes of problems that affect Britain and Rwanda, International Development Secretary Priti Patel announced Tuesday.
Over the next decade a billion more young people will enter the job market, mainly in Asia and Sub-Saharan Africa. Africa’s population is set to double by 2050. This demographic challenge will add to the pressure of protracted crises and mass migration.
DFID’s first Economic Development Strategy sets out how investment in economic development will help developing nations speed up their rate of economic growth , trade more and industrialise faster, and ultimately lift themselves out of poverty.
By helping the world’s poorest countries grow their economies, this investment will help create the UK’s trading partners of the future, boost global prosperity and address some of the root causes of global issues such mass migration and instability that affect the UK.
International Development Secretary Priti Patel said: “There is no task more urgent than defeating poverty. The UK has a proud record of supporting people in desperate humanitarian crises, but emergency help alone won’t tackle the global changes we face. With dramatic increases in population across Africa and Asia, developing nations must act fast to create jobs and investment, which is why Global Britain is leading a more open, more modern approach to development through our economic development to help the world’s poorest countries stand on their own two feet”, adding:
“With the UK’s support, more people across Rwanda have the chance to get a job and build a brighter future for themselves and their families. The UK will continue to build this partnership between our two countries. Over the next decade a billion more young people will enter the job market. Africa’s population is set to double by 2050 and as many as 18 million extra jobs will be needed. Failure will consign a generation to a future where jobs and opportunity are out of reach; potentially fuelling instability and mass migration with direct consequences for Britain. Developing countries want to harness trade, growth and investment opportunities and Britain will lead the way to lift huge numbers out of grinding poverty to prosperity.”
The department will work across government to increase the number and quality of jobs in poor countries, enable businesses to grow and prosper, support better infrastructure, technology and a skilled and healthy workforce.
Today’s announcement builds on the UK’s existing work to drive economic development, which has helped almost 70 million people access financial services, over 6 million people improve their land and property rights, and improved access to clean energy for over 6 million people.
Through the new Economic Development Strategy DFID will:
•build the potential for developing countries to trade more with the UK and the world;
•create economic opportunities in fragile and conflict states where jobs and livelihoods are desperately needed;
•build partnerships with business – including Small and Medium Business (SMEs) – to make it easier for companies, including those in the UK, to invest in markets of the future;
•work closely with the City of London so it becomes the leading financial centre for the developing world;
•focus investment in job-creating sectors such as manufacturing, infrastructure and commercial agriculture to provide strong foundations for sustainable growth;
use the UK’s voice in the World Trade Organisation (WTO) to argue for better and fairer trading rules;
•strengthen institutions, tackle corruption and help countries mobilise their own domestic resources to support their development;
•we will continue to champion innovative private finance investment to stimulate growth, CDC will be at the heart of this.
UK support in Rwanda is making a difference
In Rwanda, the UK supports the transformation of the economy in line with the Government’s Economic Development and Poverty Reduction Strategy II.
The UK’s work in Rwanda – from the commercialisation of agriculture to the expansion of export and manufacturing – supports the commitment to moving to a private sector led and inclusive growth model that attracts investment, creates jobs, improves incomes, and improves ordinary Rwandans’ lives.
The UK’s support to TradeMark Africa reduces the cost of regional and international trade and supports export growth for Rwandan businesses. From 2011 to 2016, the costs for transporting containers from Mombasa to Kigali have been reduced from $6,500 to $4,800, saving approximately $7 million.
Its Programme of Support to Agriculture aims to increase the productivity of Rwandan farmers and support private sector investment in agriculture. So far, through this programme, over 1 million hectares of land have been terraced, 44,000 hectares of land have been developed for small scale irrigation, and average yields of food and milk have been substantially increased.
The UK’s support to agriculture will increase even further in the coming months with its Improving Market System for Agriculture in Rwanda programme. This will help increase the amount of agricultural goods sold to the domestic, regional and international markets, and add value to agricultural produce in Rwanda.
The UK supports the development of the financial sector in Rwanda through its Access to Finance Rwanda programme. This facilitates access to credit for Rwandan men and women, and empowers them to take greater control over financial decision making. Between 2010 and 2016, Access to Finance Rwanda and its partners supported 1.14 million Rwandans to access and use financial services.
The UK’s support to Land Tenure Reform strengthens land rights for all Rwandan landholders.
This will facilitate investment, provide men and women equal access to land, promote sustainable land use, and allow people to use their land titles to secure access to financial services such as loans. So far, over 7 million titles have been issued through the Rwandan Natural Resources Authority with support from the UK and other donors.
The UK also supports Investment Climate Reform in Rwanda, in order to attract more investment, enable inclusive private sector growth, create new job opportunities and improve livelihoods. This programme is expected to save Rwandan consumers $3 million through increased competition in markets, and to attract $23 million investment in Rwandan agribusiness and tourism.
In partnership with The Wood Foundation Africa, the UK will support over 6,000 farmer families develop 3,400 hectares of greenfield tea in Nyaruguru District.
These farmers will supply a Unilever constructed tea processing factory that, once fully operational, will produce 9 million kilogrammes of made tea each year.
The UK’s support will leverage over €50 million of private sector investment, substantially increase tea exports and increase farmer income and wellbeing. (End)
Source: Rwanda News Vision

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.