2.2.4. Human Capital in Africa: Focus on Rwanda
Lacy, Arnott and Lowitt, (2009), observe that in developing
countries, companies that offer above-average working conditions and
health-care benefits can more easily find skilled employees in areas with
limited educational systems. Indeed, in the face of an aging workforce and
global competition for talent, organizations are finding it more and more
difficult to attract and retain the most qualified employees.
Unfortunately, Nkhwa, (2005), observes that despite the fact
that Africa has been regarded as a land of opportunity and endowed with natural
resources since colonial era, it has not been translated into proper human
capital management practices.
2.2.4.1. Structure of Rwanda's Human Capital
Rwanda's history is marked by policies and activities that
were not conducive to the development of human capital. Ever since her long
history, Rwanda's human capital development was characterized with lack of
focus and proper investment at all levels of education and training. During
colonial periods no attention was given to human capital development,
surprisingly, the period after independence, cosmetic reforms that were made to
the education sector, especially in 1979 and 1981 did not correct errors. It is
unimaginable, but only 0.5% of Rwandese population are university graduates,
with a 4% average in Africa, yet for a country to move towards sustainable
growth, there is need of at least 30% graduates in her population (Laurence,
2009).
The genocide of 1994 even made the situation worse since many
professional Rwandans were either killed or fled into other countries. Post
1994, witnessed efforts to adjust the matter. With
Vision 2020, one of pillars is «human resource development
and a knowledge based economy» (The Republic of Rwanda, 2000).
Rwanda has also decided to build a knowledge-based and
technology-led economy. In this context, the aim of education is «to
combat ignorance and illiteracy and to provide human resources useful for the
socio-economic development of Rwanda» (Ministry of Education 2002:8).
Ministry of Local Government (MINALOC) is responsible for the execution of
decentralization policy, planning and implementation of education activities in
the provinces and district levels and administration of learning institutions.
Ministry of labor (MIFOTRA) sets salary levels and conditions of service
(Muganga L, 2009)
According to the Skills Audit Report, 2009, Rwanda's human
capital is concentrated in a few occupations. Education dominates --accounting
for 60 % of the total skilled workforce. Agriculture accounts for another 15 %,
that is, a combined 75 percent by only two occupations. It is also extremely
bottom heavy--the artisan cadre constitutes three quarters of the skill base In
addition, it deviates from the normal pyramidal structure i.e. widening
progressively towards the base. This is on account of a particularly weak
technician cadre that, at only 8 %, is about half the size of the professional
cadre (The Republic of Rwanda, 2009).
The report observes that these structural imbalances are
reflected in all sectors i.e. public, private and civil society and in most
occupations. There are however, some particularly striking ones on account of
severity and importance. The most striking is the insignificant base of both
professional and technical skills in building and construction. The high level
skills are also extremely weak in agriculture/animal health and agro-industry
fields. The hospitality field is very weak at the technical cadre (The Republic
of Rwanda, 2009).
The skill audit validates the observation that Rwanda has an
acute shortage of human capital. The private sector has the most acute deficit,
equivalent to 60 percent of short-term need. The public sector deficit is
estimated at 30 percent and civil society at 5 percent. The skill deficit
exists at all levels but is most acute at the technician cadre, where the gap
is 60 percent of requirement. Shortage of professional and artisan cadre skills
is estimated at 48 % and 36 %
respectively. Management cadre shortfall is the lowest at 12 %
of requirement. Shortage of scientific skills is generally more acute, although
they are by no means the only ones. The only significant sectors for which
acute skill gap is not reported are public administration, law and to a lesser
extent education.
The range o f the skill deficit in the private sector is also
quite wide. Unlike the public sector where the deficit is predominantly in the
professional cadre, shortage of artisanal cadre (i.e. skilled workers) is more
pronounced. The other notable feature is that the private sector deficit is
most acute in the key sectors of the economy, namely, tourism, construction,
agriculture, finance and mining.
The Skills Audit Report highlights the depth of the shortage
of human capital in Rwanda and confirms that capacity - in terms of quantity
and quality - is a critical challenge to the development and competitiveness of
the country. As the experience from Singapore, Tunisia, Japan, South Korea,
Malaysia and South Africa indicates, the competitiveness of nations in today's
globalized, technology-driven world, economic growth and development depend on
the quality and quantity of the human stock that a country has. The quality and
quantity of human capital is the base upon which technological, economic and
social advancements are based, (Human Development Report, 2008; World Bank
Reports, UNESCO Reports). On this view, the rapid development of human capital
is Rwanda's most pressing development challenge.
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