Rwanda Ranked Ahead of Kenya in Africa Prosperity Index: Good Score on Governance

By Soko Directory Team / Published June 2, 2016 | 7:37 am

Rwanda leads the pack within the East African Community followed by Kenya in Africa prosperity index, according to a new report by The Legatum Institute.

Kenya was placed at the 11th place, for personal freedom, entrepreneurship and opportunity and Rwanda being placed eighth place, due to the significant reforms it has made recently to strengthen the rule of law and reduce corruption over the last decade.

Uganda was ranked 17 ahead of Burundi placed at 36. However, South Sudan was not featured anywhere. In the report, South Africa was the highest ranked country and Central African Republic the lowest at number 38.

The Legatum Institute’s 2016 Africa Prosperity Report

This was done by assessing a country’s level of wealth (GDP per capita) modelled against its overall ranking in the think tank’s own Prosperity Index(which uses eight economic and social factors including Entrepreneurship & Opportunity; Governance; Education; Health; Safety & Security; Personal Freedom; and Social Capital.)

Alexandra Mousavizadeh, Director of the Prosperity Index at the Legatum Institute, said, over the past decade there has been strong economic growth across Africa. Yet, as our findings reveal, the legacy of creating overall prosperity varies dramatically country by country.

Despite Africa’s growth rates – averaging 5.5 percent in the last ten years, – the continent has been outpaced in prosperity delivery when compared to other developing countries in Europe and Asia, the survey revealed.

To have a turn around, Mousavizadeh says, “By far and above, the most important drivers of prosperity alongside a country’s ability to generate wealth, are the promotion of civil liberties, a strong rule of law and effective institutions as well as a diversified economy. By making these structural changes, many countries could start to see levels of prosperity rising quite rapidly even if overall growth begins to slow.

Further, the survey states that greater prosperity can be achieved in principle for many countries without the need for economic growth. This can be achieved through: a country’s economic complexity reflected through its export basket, Governance in terms of the rule of law, good regulation that encourages private sector development, and effective governance and finally entrepreneurship and opportunity.

In the report, Tsitsi Masiyiwa, Executive Chairperson, Higher Life Foundation says, “Whilst GDP growth is important, the success of nations should not just be measured purely in terms of GDP – what makes a nation prosperous goes beyond this. Legatum’s Prosperity Index – which looks at both wealth and wellbeing – is therefore a welcome addition to the discussion on how best to assess and deliver.”

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