Kagame’s Debt — Is it Building Productive Capacity or Delusional Fantasies?

David Himbara The Author of Kagame’s Economic Mirage

Kagame's Ministry of Finance has debt data that goes only up to 2014. In 2014, external debt was US$1.7 billion, while domestic debt was US$562 million. Total public debt in 2014 was in other words US$2.3 billion.

For the year 2015, the Joint Staff Rwanda Debt Sustainability Analysis (DSA) by the IMF and the World Bank reported Rwanda's external debt to be US$2.1 billion.

I do not have the figure for domestic debt for 2015.

For 2016, we are aware of the African Development Bank loan of US$163 million, World Bank loan of US$90 million, European Union loan of US$20 million, and IMF loan of US$204 million. That is a total of US$477 million loans borrowed in 2016.

I do not have the domestic debt for 2016.

We therefore know for sure that Rwanda debt in July 2016 is US$2.5 billion - excluding domestic borrowing for 2015, and 2016. We nonetheless estimate Rwanda's current total debt to be US$3 billion that would include domestic borrowing for 2015 and 2016 as well as foreign loans we have not capture.

Let us be very clear. Debt in itself is not necessarily a bad thing. True, public debt means a government is spending more than domestic tax revenues combined aid grants in the case of Rwanda. But if debt is not building some kind of productive capacity and is instead building white elephant projects, then we are in trouble.

For those friends who asked me to write this, address this question: is Kagame's US$3 billion debt building productive capacity to render Rwanda prosperous or he is lost in delusional fantasy land?

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David Himbara

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Kwezi - Africa's Cartoon Superhero

Most comic book superheroes are Europeans or white Americans but one artist in South Africa has been trying to change that.
"Kwezi" (star in Xhosa and Zulu) is the brainchild of Loyiso Mkize, who describes it as a coming-of-age story about finding one's heritage.
He's been speaking to the BBC about his work in visual art and why he feels Africa needs to have its own superheroes.

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I am So Happy Because Britain Is In a Mess — President Kagame

I am not a religious scholar or even a layperson. But I do know that somewhere in the Bible, it is stated that God will punish those who rejoice at the misfortunes of other people — do not take pleasure even at your enemies’ discomfort. 

In President Paul Kagame’s world, it is the reverse — he gloats even at his friends’ and supporters’ misfortune. 

Listen to this speech (in Kinyarwanda) by the Rwandan president in which he is rejoicing the British economic-political crisis resulting from the referendum to withdraw from the European Union. 



In the speech, Kagame rejoices the fall of the British Prime Minister David Cameron, and the political establishment as a whole — without mentioning names. And the reason for Kagame’s celebration? According to him, the British leaders are forever preaching to Rwanda what to do, when they cannot govern their own countries. Let the British taste their own medicine for a change — says Kagame.

What a shame. British leaders — whether members of the Labor Party or the Conservative Party has supported Rwanda very generously in the past two decades. The British taxpayers have bankrolled Kagame’s regime to the tune of up to £70 million a year. The only a decent thing to do for Rwandans or any other nation is to give the British solidarity in their hour of need.

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David Himbara
Links:
http://kagameseconomicmirage.com/
http://www.democracyinrwandanow.org/
https://www.facebook.com/AfricaLaughing
http://www.africalaughing.com/

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