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Contribution of small and medium enterprise to the economic development of Rwanda

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par Valens NYANDWI
Universite Nationale du Rwanda - Licence 2013
  

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4.2.2. Overview of the contribution of SMEs to the economic development of Rwanda

The Government of Rwanda has a vision to become a middle-income country. In order to achieve this goal the medium term Economic Development and Poverty Reduction Strategy states that it must achieve an annual GDP growth rate of 8.1% and increase off-farm employment to 30% by 2012.

The SME sector, including formal and informal businesses, comprises 98% of the businesses and 41% of all private sector employment in Rwanda. Most micro and small enterprises employ up to four people, showing that growth in the sector would create significant private sector non-agricultural employment opportunities. Currently, over 80% of the population is engaged in agricultural production.

The SME sector also has the potential to lower Rwanda's trade imbalance and it is the GoR's vision to increase the role of value-added exports to increase export revenue and reduce the import-export gap. The Government of Rwanda also seeks to reduce its dependency on foreign aid and debt by increasing internal tax revenue. Since 2009, tax revenues have increased largely from the collection of Value Added Tax and the role of SMEs in this cannot be undermined.

Despite the above, there had not been a coordinated policy to address the SME landscape and unlock the underlying potential of SMEs in national development prior to 2010. In order to contribute to achieving increased off-farm employment and tax revenue, the GoR developed and is currently implementing a coherent and well coordinated SME Development Policy. The major aim of the policy is to create an enabling environment for the growth and development of the SME sector in Rwanda.

4.3. CASE STUDY: HUYE WATER ENTERPRISE

4.3.1. Presentation of Huye water enterprise

After identifying the profile and locating geographically Huye water enterprise, we will analyze its mission, its objectives, its historical, its evolution, its organization and its management, then its role in economic development of Rwanda.

4.3.2. The Profile of Huye water enterprise

HUYE water enterprise is a private company that was formed in 1998, with the key aim of mineral water production and its base is in Huye District former Butare town in the Southern Province.

Their first mineral water product appeared at the market beginning with the year 2000, after the scientific laboratory experiment by the University of Shanghai in china. Experts from this University confirmed the purity of the mineral water manufactured by HUYE water enterprise.

HUYE water enterprise does not only produce mineral water but also produces the plastic bottles into which their mineral water products are packed.

4.3.3 .HUYE water enterprise location

Its head office is in Kigali city at Muhima near Kabuga's building because of availability of large market, a good condition of working etc. This company still sells its products locally but it imports its raw materials abroad specifically from China.

4.3.4. Mission of HUYE water enterprise

It seeks to increase the productive capacity of the mineral water and play a key role in transforming the economic development of Rwanda and enhancing the well being of people. Through their dynamic and responsive teams, it aims at providing the products and maintains the highest levels of customer service and professional integrity.

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