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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