by Dias NYESIGA
Photo: German Ambassador Peter Fahrenholtz and Minister of Finance Claver Gatete (File photo)
Germany is optimistic that Rwanda’s approach to develop technical skills will register success in shaping the economy into middle income, considering the current strides the country has already taken.
Peter Fahrenholtz, the German ambassador to Rwanda, says that Rwanda’s holistic approach towards investing in developing all skills without specializing is the right approach in addressing the country’s skills challenge.
The country is looking at developing technical and vocational skills to address the challenge of skilled labor and boost the budding private sector mainly in enterprise, industry, and service sectors.
“Investing in all technical and vocational skills will help the country solve the problem of lack of skilled labor force,” he said during the signing of RWF 9.8 billion financing agreement between Rwanda and Germany.
Germany, through its German Development Bank, has extended financing worth RWF 9.8 billion enshrined in two financing project agreements for Technical and Vocational Education Training and decentralization.
Experts believe that to achieve its ambitious target of middle income by 2020, Rwanda needs to invest much in vocational skills development that are needed to supply the growing industry sector.
“Rwanda is trying its best to promote skills development that can sustain economic development”, Claver Gatete, Minister of Finance said.
With its strategy to boost the industry sector, the government is setting up model processing industries throughout the country in an effort to boost the growth of industries that would increase value addition in the country’s exports.
“In Germany, we value much traditionally the work people do with their hands. When you become a master in your craft after vocational training, you are open to earning more money and you are respected in the society,” Fahrenholtz said.
“The big part of this funding will go to TVET, and the purpose is to increase the number of qualified graduates in the selected TVET institutions, said Gatete, adding that the other portion of funding will go to support continued priority development and infrastructure projects in all districts in the country.
According to the agreements signed between the two countries last week, RWF 6.3 billion will go to supporting Technical and Vocational Education and Training (TVET) banking on selected institutions while RWF 3.6 billion, will support continued priority development and infrastructure projects in all districts in the country.
The funds will be channeled through the Rwanda Local Development Support Fund, which will be tasked to help build capacities of districts in project preparation, planning, monitoring and evaluation, and budgeting processes to ensure effective utilization of the funding.
“This funding is really important to our economy considering it is going to help the entire infrastructure,” Minister Gatete said.
Since 2006, the German Development Bank has contributed RWF 21 billion to support decentralization through local infrastructure investments that include roads and bridges, markets and terracing, health centers, and institutions of learning.