The City of Kigali Economic Development Strategy

Project

At-a-Glance

Approval Date
Actual Completion Date
Proposal Focus
1471
Core Focus
Secondary Cities
Country Type
Rwanda

Detail

Summary
The aim of this activity is to support Rwanda’s largest city, Kigali, in maximizing its economic potential in order to increase income and job opportunities and b) support the fiscal decentralization process being undertaken by the GoR by providing the tangible assessment of an urban revenue base. The assessment and strategy development will be undertaken under the guidance of an advisory group, comprised of representatives of business (small merchants, real estate owners, larger industry and transportation sectors); financial institutions, both private and quasi public; poor communities; civic associations; national departments including local government and revenue; and the relevant local authority departments. The participatory methodology that has already been successfully implemented by a number of donors in Rwanda will be used by the project. It is anticipated that the stakeholder advisory group will continue, and as a group formed and trained to continue the development of Kigali, will represent key expertise and leadership for the City and the country.
Objectives
The objective is to increase income and job opportunities for Kigali’s, and Rwanda’s, poor population. In doing a city development strategy, Kigali seeks to engage the private and civic sector in a collaborative plan of intervention to maximize the economic potential of the City. Outputs and impacts of the project will be qualitative and quantitative: Qualitative: Formation of a multi sector, private, public and civic advisory council that will help guide and implement Kigali’s growth; detailed assessment of the current economic structure of Kigali, employment and industry base, labor demands and usage, links to the rural Rwandan and regional economy, comparative advantage, opportunity for growth, discrete actions that will support the exploitation of that comparative advantage; and identification of Kigali’s current and potential revenue and tax base. Quantitative: Increase in the local economic growth rate by 2% within 5 years; increase in city revenues by 5% in 2 years; and reduction in number of persons in poverty by 10% in 10 years.
Activities
The partners will develop a process for research, analysis, and strategy development. A research agenda will be developed through the group process and will include:  1. Economic assessment: Analysis of: Industrial sectors; Employment base by sector and level of skilled employees; Real estate market, Revenue generation for Kigali; Micro, small and medium business development, by sector, location, ownership and employment patterns;  2. Other sectors including donors, religious, government, military, academic and institutions;  3. Identification of strengths, barriers and Kigali’s comparative advantage: Transportation/shipping routes; Assembly and warehousing; Kigali’s internal market demand Operation of food markets and food processing; Small scale industry;  4. The strategy for growth: Key sectors to promote; Strategies to support those sectors including infrastructure investments, marketing, short and long term human resource development, etc;  5. Action plan: Activities/actions; Assigned responsibilities, covering the range of stakeholders; Timeline; Monitoring process; Outreach for investment and donor resources.
Expected Impacts and Results
1) Formation of a multi sector, private, public and civic advisory council that will help guide and implement Kigali’s growth;  2) Detailed assessment of the current economic structure of Kigali, employment and industry base, labor demands and usage, links to the rural Rwandan and regional economy; its comparative advantage and opportunity for growth; and, discrete actions that will support the exploitation of that comparative advantage;  3) Identification of Kigali’s current and potential revenue and tax base. Quantitative: 1) increase in the local economic growth rate by 2 % within 5 years;  2) increase in city revenues by 5 within two years;  3) Reduction in number of persons in poverty by 10% within 10 years.