Rwanda Roundup: Tax revenue, new stadium, migrant plan

Plans to raise tax revenue

Rwanda plans to raise over $2.2 billion in taxes for the 2024/25 fiscal year to fund key investments in agriculture, private sector development, and other priority sectors. The Rwanda Revenue Authority aims to maximise revenue collection through initiatives such as widening the tax base and sustaining tax compliance. Overall, domestic resources are expected to contribute about 64% of the total budget, with other revenues apart from taxes expected to contribute more than $338 million. According to The New Times, external resources are expected to contribute slightly more than $1.5 billion, including grants and foreign loans.

Kagame inaugrates new stadium

President Kagame inaugurated the newly renovated Amahoro Stadium with a seating capacity of 45,000. The ceremony was attended by high-level officials including CAF president Patrice Motsepe. Kagame used the opportunity to praise African football governing bodies for inspiring the renovation and emphasised the importance of world-class sports infrastructure in nurturing local football talent. The stadium was approved by FIFA to host international football events. Motsepe commended Rwanda for the facility and expressed confidence in the country's football potential. The inauguration was followed by a friendly match between Rwandan champions APR FC and Police FC, with APR FC winning 1-0, reports The New Time.

Saving rate

By the close of 2023, Rwanda's savings rate was recorded at 12.5% of its GDP, which then declined to 11.3% in the initial quarter of the current year. The Rwandan government had set an ambitious goal of reaching a 23% savings rate by the conclusion of 2024. However, this objective now appears challenging due to the downward trajectory that has persisted since the onset of the COVID-19 pandemic. Notably, the nation's savings rate had ascended to 16% in 2021 but subsequently decreased to 15% in 2022, and experienced a further dip in 2023, amidst a series of macroeconomic hurdles impacting the economy, adds The New Time.

Detained migrants set free

Detained migrants in the UK were set free as the Home Office plans to end the deportation scheme under the Labour Party. Charities secured their release through legal action. The scheme, codenamed Vector, targeted migrants for deportation to Rwanda. The release comes as the Home Office prepares to end the scheme if Labour wins the General Election. Former Home Secretary warns Tories to prepare for opposition. Both parties exchange criticisms over the effectiveness of the Rwanda deportation scheme, reports GB News.

What Rwandans think Labour should do with the migrant plan

The UK's Labour plans to scrap the Tories’ migration deal with Rwanda if it wins the election, and many in Rwanda agree. Presidential candidate Frank Habineza opposes the plan, believing it violates migrants’ human rights. He also believes migrants would struggle to find work in Rwanda. While some see the deal as a source of jobs and money, Habineza thinks it would overload infrastructure and services. Despite this, the deal is not a priority for his party. Analysts say most citizens don't care about the deal; they are more focused on growing the economy and improving living standards. Habineza's biggest policy is food security, and he wants to reduce reliance on food imports. Both Namibia and Botswana rejected similar deals, and Costa Rica has confirmed it has not been approached by the UK for such a deal, iNews reports.