Central Banker of the Year/ Africa: François Kanimba, Governor, National Bank of Rwanda
For a tiny landlocked country that only emerged from a horrific civil war and resultant genocide in 1994, Rwanda’s economic progress has been impressive.
Francois Kanimba, governor of the National Bank of Rwanda, has been instrumental in creating a stable economic environment that has allowed the country’s fledgling bank sector to flourish. Foreign investors are so excited by the opportunities in Rwanda that over the past four years, all of the nation’s local banks have been privatised. Foreign interest in Rwanda has been driven by an extensive financial reform programme that has transformed an underdeveloped, command-style economy into a progressive free market.
Mr Kanimba recently stated that Rwandan gross domestic product (GDP) growth could hit 10% in 2008, driven by strong performances in farming, manufacturing and services. “We have not suffered the first-generation effects of the financial crisis, as Rwandan banks are not exposed to international financial markets, but the economic disruption which resulted is certainly affecting developing economies, including Rwanda,” he says.
Mr Kanimba has worked hard to meet the financial reform recommendations made by the World Bank and IMF after they visited in 2005. The resultant Financial Sector Development Programme aims to develop a national payments system, pension law and related regulations, and a collective investment scheme law.
Rwanda’s toughest challenge in 2008 was to keep inflation down. Soaring food and fuel prices resulted in a rate of almost 22% in October, from a year low of 6.3% in February, but it is expected to return to single digits in 2009. Looking ahead, Rwanda faces the twin challenges of the global economic slowdown and recent movements in exchange rates. “The commodity price decline could have an impact on export sectors, which could have problems repaying loans, causing liquidity problems in the banking system, so we are looking to avoid these vulnerabilities,” says Mr Kanimba.
The IMF predicts real economic growth could fall back to 6% in 2009, but recent falls in the price of food and fuel will ease inflationary pressures. The National Bank of Rwanda’s sound management and resolve to pursue structural financial sector reforms over the past five years makes Mr Kanimba a deserved winner of this year’s award.
