Rwanda’s finance minister, Donald Kaberuka, is one of seven Africans vying for the African Development Bank (ADB) presidency, pitting him against such capable contenders as KY Amoako, the respected executive secretary of the UN Economic Commission for Africa, and Simba Makoni, the former Zimbabwean finance minister who carries the endorsement of the Southern African Development Community.
Dr Kaberuka has had backing from Kenya, and his supporters argue he is the ideal bridge between English and French-speaking Africa. However, Rwanda’s murky and destabilising involvement in the east of the Democratic Republic of Congo might count against him.
The ADB presidency is supposed to be go to the most competent technocrat, and is an appointment that grows in stature and responsibility as the bank expands its lending programmes across the continent. In this respect, Dr Kaberuka has proved himself capable. A former private sector analyst and banker, he earned respect for his role in stabilising Rwanda’s economy following the 1994 genocide. The economy is estimated to have grown by 6% in 2004 and is expected to repeat that this year. Inflation has been slowed to the low single digits from around 15% and reserves are rising steadily. The government predicts good export growth this year and though the IMF is less optimistic, both agree that from 2006 onwards, exports will look healthier.
Despite donor dependency (the fiscal deficit before grants is touching 15% of GDP) and a modestly deteriorating external debt position, Rwanda’s economic well-being is nothing short of staggering considering the massive upheaval caused by the genocide.
Dr Kaberuka, who has served as finance minister since 1997 and who has a PhD from the London School of Economics, is credited with reforms, including new tax laws, trade liberalisation and privatisation. He is also planning comprehensive land reform, overhauling a system to provide tenure to individuals. If he wins the ADB presidency, Dr Kaberuka will be Tunis bound. If not, challenges remain, not least pushing up growth to more than 7% a year, which will require a doubling of investment. Though the government has deftly (some say heavy-handedly) eased ethnic tension, economic development remains an important element to ensuring peace, not just in Rwanda but also the region. Either way, he has a busy time ahead.
