45282 Enterprise Surveys Country Profile Rwanda 2006 PUT COUNTRY MAP HERE Region:Africa Income Group:Low income Population(2006): 9.1 milliones GNI per capita (2006): US$230 http://www.EnterpriseSurveys.org World Bank, 1818 H Street, N.W. Washington DC, 20433 Tel. (202) 458-4808 Fax (202) 522-2029 Email: rru@worldbank.org Introduction 3 Snapshot 4 Infrastructure 5 Finance 6 Labor Force 7 Corruption & Regulatory Burden 8 Courts & Crime 9 Innovations & Technology 10 Trade 11 Summary of Enterprise Survey Indicators 12 Introduction Enterprise Surveys The Enterprise Surveys focus on the many factors that shape the decisions of firms to invest. These factors can be accommodating or constraining and play an important role in whether a country will prosper or not. An accommodating business environment is one that encourages firms to operate efficiently. Such conditions strengthen incentives for firms to innovate and to increase productivity--key factors for sustainable development. A more productive private sector, in turn, expands employment and contributes taxes necessary for public investment in health, education, and other services. In contrast, a poor business environment increases the obstacles to conducting business activities and decreases a country's prospects for reaching its potential in terms of employment, production, and welfare. Enterprise Surveys are conducted by the World Bank and its partners across all geographic regions and cover small, medium, and large companies. The surveys are applied to a representative sample of firms in the non-agricultural economy. The sample is consistently defined in all countries and includes the entire manufacturing sector, the services sector, and the transportation and construction sectors. Public utilities, government services, health care, and financial services sectors are not included in the sample. Enterprise Surveys collect a wide array of qualitative and quantitative information through face-to-face interviews with firm managers and owners regarding the business environment in their countries and the productivity of their firms. The topics covered in Enterprise Surveys include the obstacles to doing business, infrastructure, finance, labor, corruption and regulation, law and order, innovation and technology, trade, and firm productivity. The qualitative and quantitative data collected through the surveys connect a country's business environment characteristics with firm productivity and performance. The Enterprise Survey database is intended to be useful for both policymakers and researchers. The surveys are to be repeated over time to track changes and benchmark the effects of reforms on firm performance. Country Profiles The Country Profiles produced by the Enterprise Analysis Unit (FPDEA) of the World Bank Group provide an overview of key business environment indicators in each country, benchmarking against their respective geographic region and group of countries with similar incomes. Breakdowns by firm size are presented in the Appendix of the document along with all statistics used to make the graphs. The same topics are covered for all countries with slight variations in indicators (subject to data availability). This format allows cross country comparisons. All indicators are based on the responses of firms. To learn more about the firms sampled for this country profile (tabulations for these and other indicators by industry, exports, and type of ownership) or to obtain profiles of other countries, please visit the web page http://www.enterprisesurveys.org. Currently available at the Enterprise Survey website are survey results on the business environment in over 97 countries, based on data from more than 61,000 firms. http://www.enterprisesurveys.org Country Profile: RWANDA 3 Rwanda The country profile for Rwanda is based on data from the Enterprise Surveys conducted by the World Bank in 2006. The benchmarks include the averages for the group of countries in Africa and the Rwanda income group. Below is a snapshot of the constraints to investment and doing business as perceived by firms. The first graph presents the top 10 constraints as identified by firms in Rwanda benchmarked against the regional average. The second graph shows the top 3 constraints broken down by large medium, and small firms in Rwanda. Snapshot of the Business Environment in Rwanda Percentage of Firms Identifying the Problem as the Main Obstacle 60 Africa 50 40 30 20 10 0 Electricity Tax Rates Access to Transportation Access to Land Tax Skills and Anti- Business Customs and Financing Administration Education of Competitive or Licensing and Trade (Availability and Available Informal Operating Regulations Cost) Workers Practices Permits AMÉRICA LATINA Y EL CARIBE 2006 Percentage of Firms Identifying the Problem as the Main Obstacle Small firms Medium firms Large firms 70 (1-19 employees) (20-99 employees) (100 employees or more) 60 50 40 30 20 10 0 Tax Rates Electricity Access to Electricity Tax Rates Access to Electricity Tax Rates Transportation Financing Financing (Availability (Availability and Cost) and Cost) http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 4 Infrastructure Infrastructure as a Constraint 80 70 A strong infrastructure enhances the competitiveness of an economy and 60 improves the quality of life of the Firms 50 population. Good infrastructure connects of 40 firms to their customers and suppliers, and 30 enables the use of modern production Percent technologies. 20 10 Conversely, deficiencies in infrastructure 0 create barriers to productive opportunities % of Firms Identifying % of Firms Identifying Electricity and increase costs for all firms, from micro- Transportation as a Major as a Major Constraint enterprises to large multinational Constraint corporations. Rwanda Africa Low income Enterprise Surveys capture the dual challenge of providing strong infrastructure: Quality of Infrastructure the physical construction of roads, power 20 10 lines, water systems, etc., and the 18 9 development of institutions that effectively 16 8 provide and maintain public services. Month 14 7 12 6 The first set of indicators shows the extent Typicala 10 5 to which firms perceive two components of in 8 Percent 4 infrastructure as constraints: transportation 6 3 and electricity. Inadequate transportation 4 2 and problems with electricity increase costs, Incidents 2 1 disrupt production, and lower revenue. 0 0 Incidents/Typical Incidents/Year % of Sales Lost to Power The second set of indicators measures the Month of Power of Insufficient Outages quality of infrastructure: the number of Outages Water Supply* power outages and insufficiencies in water Rwanda Africa Low income supply per month and losses due to power * Manufacturing Sector outages. Service Delays Public Water The third set of indicators evaluates the Supply efficiency of infrastructure services by 70 74 measuring the delays in obtaining electricity 60 72 and telephone connections, and the relevance of public water supply in the Month 50 70 production process. 40 Typicala 68 in 30 Percent 66 20 64 Incidents 10 62 0 60 Delays in Delays in % of Water from Public Obtaining Obtaining Sources Electricity Telephone Connections Connections (Days) (Days) * Manufacturing Sector http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 5 Finance Access to Finance as a Constraint 60 Developed financial markets provide payment services, mobilize deposits, and 50 ease investment financing. Efficient 40 financial markets reduce the reliance on internal funds and money from informal Firmsfo 30 sources such as family and friends by connecting firms to a broad range of Percent20 lenders and investors. 10 Enterprise Surveys provide indicators of how firms perceive their financial 0 % of Firms Identifying % of Firms Using Banks to environment and finance their operations. Access/Cost of Finance as a Major Finance Investments or Expenses Constraint The first set of indicators measures the Rwanda Africa Low income extent to which firms perceive access to finance as a constraint to investment and provides a measure of access. Inadequate How Firms Finance Investment financing possibilities create difficulties in meeting short-term payments for labor and Rwanda supplies as well as longer-term investment. The use of banks to finance investments or working capital is an initial indicator of access to credit. Africa The second set of indicators compares the relative use of various sources for financing Low income investment. Excessive reliance on internal funds is a likely sign of inefficient financial intermediation. 0 20 40 60 80 100 % of Investments Financed by Internal Funds % of Investments Financed by Banks The third set of indicators focuses on the % of Investments Financed by Trade Credits use of bank loans and overdraft facilities, % of Investments Financed by Equity % of Investments Financed by Other Sources and quantifies the burden imposed by loan requirements, measured by collateral levels relative to the value of the loans. Excessive Access to Finance Value of Collateral loan collateral requirements are likely to constrain investment opportunities. 35 180 30 160 140 25 120 Firmsfo 20 tn 100 rce 15 Pe 80 Percent 60 10 40 5 20 0 0 % of Firms with Bank Value of Collateral (% of Loans/Line of Credit Loan Value) Rwanda Africa Low income http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 6 Labor Labor Regulations and Labor Force Education as a Constraint 18 Jobs are the main source of income for 16 people--and the main pathway out of 14 poverty for the poor. A sound investment climate contributes to the creation of 12 employment opportunities, investment in Firms 10 the workforce, increases in wages, and, of 8 ultimately, a more productive and prosperous society. Percent 6 4 Enterprise Surveys collect information on 2 the labor market constraints faced by firms and also on the characteristics of workers in 0 % of Firms Identifying Labor % of Firms Identifying Labor Skill the firms surveyed. Regulations as a Major Constraint Level as a Major Constraint The first set of indicators measures the Rwanda Africa Low income extent to which firms perceive labor regulations and labor skill level as Invesment in the Working Force constraints. 60 The second set of indicators highlights firm 50 investment in the skills and capabilities of their workforce. Incidence and intensity of 40 training is measured by the percent of manufacturing firms that offer formal 30 Percent training and the share of workers receiving 20 training. The quality of labor is measured by the share of skilled workers in the 10 manufacturing industry. 0 The third set of indicators presents the % of Firms Offering % of Workers % of Skilled Formal Training Offered Formal Production Workers composition of the firms' workforce by type Training of contract and gender. Labor regulations have a direct effect on the type of Rwanda Africa Low income employment and may have a differentiated impact by gender. The first two indicators Labor Force Composition Percent of Temporary present the composition of the workforce Female Workers broken down by permanent and temporary 70 50 workers. The following indicator reflects the 60 participation of women in temporary 40 employment. rserkoWfo 50 Firms 40 30 of mber Nu 30 20 Percent erage 20 Av 10 10 0 0 Permanent Full Temporary Rwanda Africa Low Time Workers workers income Rwanda Africa Low income http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 7 Corruption and Corruption as a Restriction 25 65 Regulatory Burden 60 55 20 50 45 The regulatory environment plays a Firms 15 40 significant role in shaping investment of 35 decisions and how firms do business. 30 10 25 Effective regulations address market failures Percent 20 that inhibit productive investment and 5 15 reconcile private and public interests. 10 5 Conversely, inefficient regulations present 0 0 major administrative and financial burdens % of Firms Identifying % Firms Making Unofficial Corruption as Major Payments to Get Things on firms. In some environments regulations Constraint Done present opportunities for soliciting bribes when firms are required to make "unofficial" Rwanda Africa Low income payments to public officials to get things done. Bribe Tax 35 Enterprise Surveys provide qualitative and quantitative measures of corruption and 30 regulatory burdens. 25 Firms The first set of indicators focuses on the of 20 perception of firms regarding corruption and 15 the share of firms making unofficial Percent payments, i.e., paying the "bribe tax". 10 5 The second set of indicators identifies the 0 extent to which specific regulatory and % of Firms Expected % of Firms Expected % of Firms Expected administrative officials require bribe to Give Gifts in to Give Gifts to to Give Gifts to payments with tax payments or to obtain a Meetings with Tax Obtain Operating Obtain Import license. Inspectors Licenses Licenses The third set of indicators captures the Rwanda Africa Low income "time tax" imposed by regulation. The first indicator measures the time spent by senior Regulation Time Tax 8 4.5 management in meetings with public officials in order to comply with government 7 4 regulations and the second measures the 6 3.5 Meeti average number of tax inspections or 5 3 meetings with tax inspectors. Time ngs of 2.5 4 /Year 2 3 Percent 1.5 2 1 1 0.5 0 0 Rwanda Africa Low income % Senior Management Time Dealing with Government Regulations Time Spent in Tax Inspection Meetings (Meetings/Year) http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 8 Courts and Crime Courts and Crime as a Constraint 25 Commercial disputes between firms and their clients occur regularly in the course 20 of doing business. Resolving these disputes can be challenging when legal Firms 15 institutions are weak or non-existent. of 10 Often, the only recourse for firms to Percent resolve commercial disputes is the court 5 system. However, not only are outcomes uncertain, but also this process can be 0 lengthy and expensive. Similarly, crime % of Firms Identifying Legal % of Firms Identifying Crime, System/Conflict Resolution as a Theft and Disorder as a Major imposes costs on firms when they are Major Constraint Constraint forced to divert resources from productive uses to cover security costs. Rwanda Africa Low income Enterprise Surveys capture key dimensions of contract enforcement Contract Enforcement problems and the effect of crime on firm 80 revenue. 70 The first set of indicators shows the share 60 of firms that identify the performance of 50 courts of justice and crime as major Firms of constraints to their operations. 40 30 Percent The second set of indicators includes two 20 perceptions regarding the quality of the service offered by courts. The third 10 indicator shows the share of firms 0 resolving third-party disputes through % Firms Believe Court % Firms Believe Court % of Firms Resolving court action. System is Able to Enforce System is Disputes Through Court its Decisions Fair/Impartial/Uncorrupted Action The third set of indicators measures the Rwanda Africa Low income direct costs of security incurred by firms and losses due to crime. These resources Cost of Crime represent an opportunity cost since they 8.0 could have been invested in productive activities. 7.0 6.0 5.0 Sales of 4.0 Percent 3.0 2.0 1.0 0.0 Costs of Security (% of Sales) Losses Due to Crime (% of Sales) Rwanda Africa Low income http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 9 Innovation and Innovative Capability of the Manufacturing Sector Technology 12 65 64 11.5 In order to survive and prosper in a 63 competitive marketplace, firms must Firms 11 Firms of 62 innovate and increase their of 61 productivity. A sound investment 10.5 climate encourages firms to experiment Percent Percent 60 10 and learn; it rewards success and 59 punishes failure. 9.5 58 % of Firms With an % of Firms Undertaking Enterprise Surveys provide indicators Internationally- Innovation that describe several dimensions of Recognized Quality Certification technological efficiency and innovation. Rwanda Africa Low income The first set of indicators measures the extent to which manufacturing firms invest in industry-recognized level of External Competition as Driver of Efficiency quality as well as the share of firms 80 undertaking innovation. In this context, 70 innovation encompasses the 60 development or upgrade of product lines and the introduction of new Firms 50 production technologies. of 40 30 The second set of indicators quantifies Percent 20 the effect of foreign and domestic competition in lowering production 10 costs for manufacturing firms. 0 % of Firms Identifying Foreign % of Firms Identifying Domestic The third set of indicators demonstrates Competition as Important Competition as Important Influence in Lowering Production Influence in Lowering Production the use of information and Costs Costs communications technologies (ICT) in Rwanda Africa Low income business transactions. ICT, such as the Internet, are important tools for all firms because they provide even the Use of Internet smallest of enterprises with the ability 70 to reach national and international markets at low cost. 60 50 Firms 40 of 30 Percent20 10 0 % of Firms Using E-mail to Interact % of Firms Using Website to with Buyers/Suppliers/Customers Interact with Buyers/Suppliers/Customers Rwanda Africa Low income http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 10 Trade Customs and Trade Regulations as a Constraint 18 Open markets allow firms to expand, 16 force greater efficiencies on exporters, 14 and enable the import of lower-cost supplies. However, trading also forces 12 Firms firms to deal with customs services and of 10 trade regulations, obtain export and 8 import licenses, and in some cases, face Percent 6 additional costs due to losses during transport. 4 2 Enterprise Surveys collect information on 0 the constraints faced by exporters and % of Firms That Trade % of Firms That Trade importers and also capture the trade Identifying Customs & Trade activity of firms. Regulations as a Major Constraint Rwanda Africa Low income The first set of indicators shows the extent to which firms that trade directly, Inefficiencies in Customs i.e. those that export or import without 14 going through a distributor, consider 12 customs and trade regulations to be a constraint. 10 8 The second set of indicators measures the average number of days to clear Days 6 customs for imports and exports. The 4 delay in clearing customs for imports or exports creates additional costs to the 2 firm and can interrupt production, 0 interfere with sales, and result in Days on Average to Claim Imports Days on Average to Clear Customs damaged supplies or merchandise. From Customs* for Exports The third set of indicators shows the Rwanda Africa Low income * Manufacturing Sector share of exports lost during transport due to theft or merchandise breakage or spoilage, reflecting the transport risks Exports Activity that firms must cover during the export 3.5 process. 3 2.5 2 Percent1.5 1 0.5 0 % Value of Exports Lost Due to % Value of Exports Lost Due to Theft Breakage or Spoilage Rwanda Africa Low income http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 11 Summary of Enterprise Survey Indicators Small Medium (20- Large Rwanda (1-19 99 (100+ Africa Low income employees) employees) employees) Percent of Firms Identifying the Problem as the Main Obstacle Electricity 32.8 29.8 30.7 57.7 37.2 48.7 Transportation 6.7 6.4 6.3 9.2 4.0 4.6 Access to Land 6.3 6.8 7.4 0.0 3.6 3.2 Tax Rates 27.7 33.1 15.5 27.6 10.6 9.5 Tax Administration 3.8 2.2 8.6 0.0 1.5 1.8 Customs and Trade Regulations 1.1 1.0 1.6 0.0 2.5 2.5 Labor Regulations 0.0 0.0 0.0 0.0 0.6 0.0 Skills and Education of Available Workers 2.8 1.4 7.2 0.0 2.9 1.3 Business Licensing and Operating Permits 1.4 1.5 1.6 0.0 2.2 0.9 Access to Financing (Availability and Cost) 14.1 16.0 12.8 5.5 14.5 14.0 Political Instability 0.9 0.0 3.2 0.0 2.6 3.5 Corruption 0.9 0.0 3.1 0.0 3.9 2.1 Crime, Theft and Disorder 0.0 0.0 0.0 0.0 5.0 1.4 Anti-Competitive or Informal Practices 1.6 1.7 2.0 0.0 8.3 5.7 Legal System/Conflict Resolution 0.0 0.0 0.0 0.0 0.7 0.6 Infrastructure Indicators % of Firms Identifying Transportation as a Major Constraint 27.4 23.0 32.4 41.4 22.4 24.3 % of Firms Identifying Electricity as a Major Constraint 55.0 51.0 55.7 79.1 55.3 70.5 Incidents/Typical Month of Power Outages 13.6 11.7 15.9 17.4 12.5 15.8 Incidents/Year of Insufficient Water Supply 17.7 16.5 18.0 17.5 8.0 9.5 % of Sales Lost to Power Outages 8.7 8.7 7.6 11.5 7.2 9.0 Delays in Obtaining Electricity Connections (Days) 18.2 18.7 17.0 0.0 28.7 31.3 Delays in Obtaining Telephone Connections (Days) 61.7 75.6 12.4 0.0 29.1 32.2 % of Water from Public Sources 72.5 81.8 72.1 66.4 64.2 64.7 Finance Indicators % of Firms Identifying Access/Cost of Finance as a Major Constraint 35.9 35.5 38.4 31.5 45.4 50.0 % of Firms Using Banks to Finance Investments or Expenses 34.3 20.1 59.4 53.7 17.4 15.5 % of Investments Financed by Internal Funds 74.1 78.9 61.1 69.1 78.0 80.1 % of Investments Financed by Banks 18.2 11.2 37.2 25.0 10.3 8.5 % of Investments Financed by Trade Credits 2.1 2.3 0.0 5.9 2.5 2.3 % of Investments Financed by Equity 0.0 0.0 0.0 0.0 0.1 0.1 % of Investments Financed by Other Sources 5.7 7.6 1.6 0.0 7.7 9.0 % of Firms with Bank Loans/Line of Credit 29.4 18.5 43.1 61.3 11.1 10.8 Value of Collateral (% of Loan Value) 158.2 170.3 141.3 181.8 130.3 142.9 http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 12 Summary of Enterprise Survey Indicators Small Medium (20- Large Rwanda (1-19 99 (100+ Africa Low income employees) employees) employees) Labor Force Indicators % of Firms Identifying Labor Regulations as a Major Constraint 2.8 3.0 3.1 0.0 6.9 3.8 % of Firms Identifying Labor Skill Level as a Major Constraint 11.7 8.0 21.3 7.7 17.1 13.9 % of Firms Offering Formal Training 27.6 7.7 22.7 58.6 29.5 24.1 % of Workers Offered Formal Training 44.2 0.0 55.4 32.6 52.6 51.6 % of Skilled Production Workers 32.3 40.1 30.3 27.3 45.0 44.8 Number of Permanent Full Time Workers 26.4 8.6 34.1 140.4 18.2 17.1 Total Number of Temporary Workers 62.8 1.4 15.8 605.5 9.2 11.9 Percent of Temporary Workers - Female 44.0 40.7 44.1 53.8 27.8 23.7 Regulatory Burden and Corruption Indicators % of Firms Identifying Corruption as Major Constraint 4.4 0.5 14.5 0.0 23.4 22.9 % Firms Making Unofficial Payments to Get Things Done 20.0 21.5 16.2 19.9 48.1 60.1 % of Firms Expected to Give Gifts in Meetings with Tax Inspectors 4.9 7.1 1.3 0.0 21.2 29.2 % of Firms Expected to Give Gifts to Obtain Operating Licenses 4.6 6.9 0.0 0.0 20.6 29.8 % of Firms Expected to Give Gifts to Obtain Import Licenses 6.1 17.1 0.0 0.0 21.2 27.9 % Senior Management Time Dealing with Government Regulations 6.8 6.7 6.2 8.9 6.7 6.2 Time Spent in Tax Inspection Meetings (Meetings/Year) 4.2 4.3 4.8 1.7 3.2 3.9 Courts and Crime Indicators % of Firms Identifying Legal System/Conflict Resolution as a Major Constraint 5.9 2.8 13.0 5.5 9.4 8.5 % of Firms Identifying Crime, Theft and Disorder as a Major Constraint 4.1 4.0 5.6 0.0 22.6 16.7 % Firms Believe Court System is Able to Enforce its Decisions 65.4 55.1 77.3 100.0 57.6 56.4 % Firms Believe Court System is Fair/Impartial/Uncorrupted 67.1 58.5 76.0 100.0 45.4 40.8 % of Firms Resolving Disputes Through Court Action 47.9 24.8 59.9 100.0 59.4 58.9 Costs of Security (% of Sales) 1.8 2.3 1.2 0.9 2.6 2.7 Losses Due to Crime (% of Sales) 7.2 9.2 1.1 5.0 4.9 5.8 Innovation and Technology Indicators % of Firms With an Internationally-Recognized Quality Certification 10.8 0.1 0.1 0.3 11.8 10.4 % of Firms Undertaking Innovation 64.2 49.8 65.7 77.6 63.2 60.4 % of Firms Identifying Foreign Competition as Important Influence in Lowering Production Costs 45.1 25.5 49.5 60.4 40.9 34.6 % of Firms Identifying Domestic Competition as Important Influence in Lowering Production Costs 52.5 78.8 56.7 15.5 59.4 56.5 % of Firms Using E-mail to Interact with Buyers/Suppliers/Customers 38.8 24.1 59.8 74.5 37.4 33.9 % of Firms Using Website to Interact with Buyers/Suppliers/Customers 18.1 10.7 26.4 42.3 13.9 11.5 http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 13 Summary of Enterprise Survey Indicators Small Medium (20- Large Rwanda (1-19 99 (100+ Africa Low income employees) employees) employees) Trade Indicators % of Firms That Trade 12.1 1.3 18.2 65.4 7.4 7.8 % of Firms That Trade Identifying Customs & Trade Regulations as a Major Constraint 13.5 10.2 25.6 0.0 17.0 16.4 Days on Average to Claim Imports From Customs* 12.7 29.4 11.0 9.6 9.7 9.9 Days on Average to Clear Customs for Exports 6.7 4.0 7.2 6.4 5.3 4.6 % Value of Exports Lost Due to Theft 0.2 0.0 0.3 0.0 1.7 1.5 % Value of Exports Lost Due to Breakage or Spoilage 0.8 0.0 1.6 0.0 3.0 2.3 Notes: 1- Country-level indicators denoting percent of firms use as denominators the number of firms for which data for the respective question is available. Country-level indicators denoting quantities (i.e., number of days, percent of sales, percent of loan value, etc.) represent the average of responding firms that are not considered to be outliers. Outliers are defined as firms with values greater than the mean plus 3 times the standard deviation or lower than the mean minus 3 times the standard deviation for that particular indicator. Regional and income group indicators are calculated as the averages of country-level indicators in the respective region and income groups. 2 - Indicators for Africa, the low middle income group, the lower middle income group, and the upper middle income group were calculated using country data available at the time of publication. a. Africa : Africa: Angola, Botswana, Burundi, Capeverde, Democratic Republic of Congo, Gambia, Guinea, Guinea Bissau, Mauritania, Namibia, Rwanda, Swaziland, Tanzania, Uganda. b. Low Income Group: Burundi, Democartic Republic of Congo, Gambia, Guinea, Guinea Bissau, Mauritania, Rwanda, Tanzania, Uganda. c. Lower Middle Income Group: Angola, Cape Verde, Namibia, Swaziland. d. Upper Middle Income Group : Botswana * Manufacturing sector only 3. The sample for each country is stratified by industry, firm size, and geographic region. For stratification by industry the main manufacturing sectors in each country in terms of value added, number of firms, and contribution to employment are selected. The retail trade sector is also included in all countries as a representative of the services sector, and depending on the size of the economy, the information technology (IT) sector is included. The rest of the universe is included in a residual stratum. Stratification by size follows the three levels presented in the text: small, medium, and large. Regional stratification includes the main economic regions in each country. Through this methodology estimates for the different stratification levels can be calculated on a separate basis while at the same time inferences can be made for the economy as a whole, weighting individual observations by corresponding sample weights. Sample sizes for each stratification level are defined ensuring a minimum precision level of 7.5% with 95% confidence intervals for estimates with population proportions (for more technical details on the sampling strategy, please review the Sampling Note available at www.enterprisesurveys.org). 4. In Rwanda included cities were: 2 Selected Manufacturing Industries Manufacturing sector 59 Retail 56 Other sectors 97 Total 212 http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 14 © June 2007 International Bank of Reconstruction and Development The World Bank 1818 H Street, NW Washington, DC 20433 USA Enterprise Analysis Unit (FPDEA) MSN-F4P-400 Fax: 001 202-522-2029 The findings, interpretations, and conclusions presented herein are those of the authors and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. http://www.enterprisesurveys.org Enterprise Surveys: RWANDA 15