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Projet: Talk show club de la presse "Urubuga rw'itangazamakuru"

Activité:Summary of weekly radio talk-show « Emission Club de la Presse: "Urubuga rw’Itangazamakuru "

Date:27/05/2020

Auteur(s):
  • IPGL
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Some of the Rwanda’s Vision 2020 goals seem unattainable, especially in economic sector.  As part of supporting Rwandan economic performance, the state also quickly launched trade stabilization policies and a series of structural reforms aimed at improving the country's economy in an attempt to speed things up.

The program “Urubuga rw’Itangazamakuru” (Club de la Presse) broadcast in synergy by ten radio stations across the country and a Television (TV Isango star) this Sunday May 24, 2020 focused on “Expectations on some state-owned companies to be licensed to do business"

Key question

- What will be the advantages and consequences of this decision on the law of supply and demand?

The invitees:

1. Dr. BIHIRA Canisius / Economist Analyst

2. HAKUZWUMUREMYI Joseph/journalist 

3. KABERUKA Teddy / Economist Analyst

Dr. Bihira Canisius pointed out that this decision is a response to the government because some of its companies have suffered losses due to insufficient capacities for private sector, many of whom are incapable of properly implementing the contracts they have been given.

He cited the examples such as the construction of roads, schools, hospitals, etc .., which were demolished in less than a year, saying that if done by government companies they would be strong and sustainable.

He said the reason why state-owned companies were previously bankrupt when they went into business was due to unfairness of people in charge who stole money and some of them were banned, he gave examples of ONATRACOM, Rwandatel etc.

Canisius said that currently the state can trade like so many others we because the state is able to trade effectively, but unfortunately many of the state personnel are embezzling.

Hakuzwemuremyi Joseph, on the other hand, said that the government's desire to go into business and compete will affect the private sector because there would be no competition in public procurement. He said that state-owned companies should ot do business as long as they are sustained by government and use taxpayers money.

He gave examples of some of the state-owned businesses that have set up commercial establishments such as the Muhabura (linked to Rwanda prisons), the Reserve Force (linked to retired people from armed forces). These companies get bids without competition.

He also talked about some of the companies that would not be allowed to do business because it could affect the public service they provide, such as WASAC, REG, UDCL, Rwanda Convention Bureau, RDB, RSSB, NAEB etc .

The audience commented on the decision and expressed concern that it could lead to losses for the private sector as they will not be able to compete for state procurements. They also pointed out that there may be a lot of corruption and embezzlement.

Invitees advised the government to take strict measures to properly monitor and protect this system so that the losses may not be increased.

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