GISENYI, RWANDA– I’m out of the country again, and this time I’m in Rwanda, and no, it’s not vacation. I’m meeting with entrepreneurs. The day before I left Michael asked me how I was going to piss off a whole country this time. You’ll note instead, I’ve been remarkably quiet. (Although one resident seemed to take issue with my being here…) I haven’t been blogging more, because many of the entrepreneurs I’m meeting with aren’t techies—although they’re plenty innovative in the way they approach what some may consider boring goods and services businesses.
This is my second trip to Rwanda this year, and it’s clear there are many ways this country stands out from much of Africa, and many ways it’s still very challenged in terms of foreign investment.
Many of the greatest achievements have been social and societal. The country has admirably rebuilt itself since the 1994 genocide. It’s one of the only times in recorded history the victims of a genocide had to go live in the same land with the perpetrators, which was no easy feat given how much of the general population was guilty of the crime. Rwandans have amazingly pioneered a practice of accountability and forgiveness, which is all the more striking now that many of the killers are finishing their prison sentences and re-integrating themselves into the small, densely-populated country. A better write-up of that side of Rwanda is in a recent New Yorker, when Philip Gourevitch who wrote one of the more famous books on the genocide revisited the country 15 years later.
But the business side of the country is more nuanced. On the plus side, Rwanda has almost no corruption, an impeccably clean capital city, wide access to basic health care and primary school education, boasts some of the best roads in Africa, better cell phone access than much of Silicon Valley (cough, cough, Sand Hill Road, cough) and almost zero violent crime. On the negative side, it has one of the weirdest economies I’ve ever encountered.
This trip has cost several times what my two weeks in China cost me last month. Even though Rwanda is one of the poorest countries in Africa, a modest hotel with no air conditioning, an elevator that routinely breaks, and an outlet that started smoking when I plugged something in will cost you about $200 a night. Think that’s bad? A nicer one quoted me rates of up to $700 a night. A car and driver will cost a minimum of $80 a day—several times what you pay in China. It’s not inflation, as far as I can tell, it’s largely because landlocked Rwanda has to pay so much to import goods and a lot of raw materials. No doubt, there’s a bit of speculating thrown in, too. (The nicer hotel I mention above quoted me half that price just a few months ago. Did their costs really double? I doubt it.)
These inflated costs—whether because resources are scarce or suppliers are gouging—reinforce one another. Internet access, while more plentiful than you’d expect, costs hotels and businesses thousands of dollars a month for one megabit speeds, according to Eugene Nyagahene, CEO of Tele10, a local satellite ISP provider. (Another entrepreneur told me he only pays several hundred dollars a month for EVDO access, still, in a country where jobs pay an average of $100 or so a month, that’s pricey.) That might explain part of my steep hotel bill. Currently Internet access comes from satellites, and the best news for the country may be the huge spools of fiber optic cable I keep seeing by the side of the roads and trenches being dug even in the middle of the night to accommodate them.
But while Rwanda may not yet be on the other side of the digital divide, the country is surprisingly progressive when it comes to the environment, especially for an emerging economy entering the industrial age. President Paul Kagame has a strict ban on plastic bags—to the point where customs 
officers will take them away from you at the airport. Its largest textile manufacturer, Utexrwa, produces garments and fabrics start-to-finish in-house using all natural cotton, silk and soon, fabrics made from locally-grown banana fibers. Even the dyes are made from natural ingredients. (See some of Utexrwa’s beta silk worms munching on mulberry leaves to the right.) Local governments are teaching subsistence farmers– near 90% of the population– courses on organic farming. And the country takes great pains to terrace its rich agricultural land preventing erosion and to protect its greatest tourist asset, the silverback gorillas made famous by the movie “Gorillas in the Mist.” Armed guards follow each tribe 24-hours-a-day to make sure they’re protected from poachers and the landscape stays pristine. Like a society trophy wife, Rwanda knows its beauty is one of its greatest assets and the country isn’t about to screw with that in the name of industrialization.
But the coolest green application I’ve seen in the country is for energy. The Rwandan-Congolese boarder runs through one of Africa’s biggest lakes, Lake Kivu. This is a so-called “exploding lake.” That’s not a commentary on the tensions between Rwanda and the Democratic Republic of Congo—it’s a result of a huge trove of methane trapped at the bottom of the lake. For years, the local brewery, Bralirwa, which is 70%-owned by Heineken, has extracted some of the gas to power its 
plant, and now the country is extracting enough to power three of its cities with more planned. Experts say there’s enough Methane to power the entire country for 400 years. And the Rwandan government has ambitious plans to eventually sell the excess energy to other African nations.
There are varying reports on how far along this project is, but I went down to check it out a few days ago, and indeed there’s a big pump in the middle of the lake that runs out to large pipes that in turn runs out to power lines. (See photo to the left.)
My driver was a bit confused about my excitement exploring and photographing the whole operation, given there was also a stunning sunset happening over the lake that I was mostly ignoring. Maybe my electric car series for TechTicker is making me into a cleantech nerd, but there are so many things to like about the potential of this project. First off, the rarity of an emerging country fueling its ascendancy into the modern age with cleantech is enough to make Al Gore swoon. But the idea that a potentially life-threatening exploding lake could prove a low-cost solution for the landlocked country and even a new cash-generating natural resource is an apt metaphor for Rwanda’s ability to rebuild itself so admirably in the aftermath of one of the ugliest chapters in modern world history.
That is fantastic, I just did my honors thesis on the private side expansion into Rwanda and hope to travel their soon.
Dear Sarah Lacy,
What’s with the monkey photo?
Surely you could have come up with a less-stereotypical image of Africa.
I daresay, a photo of real Rwandan citizens would have been a lot more appropriate.
China. Rwanda. Japan. Germany.
I get the attempt at appearing to be international.
As if you have been sent there to do a story.
Obviously: you are on vacation. Fine. But please, you’re not on assignment. If you are, your editor is a money-wasting idiot.
really interesting stuff about Rwanda, I had no idea!
One statement that stuck out to me was “Rwanda has almost no corruption.” I know its not what you are writing about, but do you have any idea why that is so? Maybe I am just stereotyping, but I am pretty surprised. Should I be?
I have to agree with Jeff here. I’m in Finland where we take that no corruption very seriously, how exactly do you know there is no corruption in Rwanda?
A great example of attempting to be what you are not.
TC is a geek-run, nerd read, blog. Nothing more.
Lacy: Submit this article to Mother Jones. Not here.
My driver? Oh God. Spare me, please.
Yes. Sarah, you reference yourself in almost every sentence in the article. Worst writer ever. Epic fail, you are totally full of shit.
According to Transparency International’s Corruption Index, Rwanda is ranked #102, well behind Finland at #5: http://en.wikip...rceptions_Index
Yes, you are indeed stereotyping.
And your question is amazing beyond belief. You’re asking why there’s no corruption as if its a given that there should be, and there needs to be a good reason why there isn’t.
To answer nonetheless, perhaps its because Rwandans are honest people who understand the detrimental effects of corruption?
Hard to believe, eh?
How about incredibly naive to believe, eh?
No, I was not asking as if its a given that there SHOULD be. Just that so many developing countries have corruption. Heck, even so called advanced countries have corruption (look at the US!).
Like they say, absolute power corrupts absolutely. I assume that all countries have corruption, especially developing countries.
So yes, I guess there does need to be a good reason why a country is not corrupt. What makes Rwanda different than the rest of the world?
Jeff:
As incredible as it sounds – just as someone asked President Kagame recently at an MIT speech he had just given – if Rwanda was really as clean as everyone always says? He responded by asking, what did you expect? – For the rest of the world that is catching up on what has been happening there is a fundamental change taking place. I am a proud Rwandan very much aware of the no nonsense approach our leaders are taking to put in place a new way of doing things. Enough with the stereotypical attitude towards Africa and putting us all in one basket of “hopeless Africans!”. President Kagame has had to take the bull by its horns at the risk of being blamed for all kinds of things simply because the UN failed miserably (again!) to do its job in Congo.
Thank you Sarah for going to Rwanda and reporting back the changes that are taking place under the most difficult of circumstances. Corruption has been like a cancer in neighbouring countries like Kenya – despite its “better image” on the international scale – however, the evidence comes to the surface every time violence breaks out from a frustrated and maligned society. So, Rwanda has decided to take a zero tolerance approach and its working! – A luta continua!
The reason there is little corruption in Rwanda is simple: the government has made it a priority. The surrounding governments (Burundi and DRC in particular) are unstable enough the governments _benefit_ more than they lose from corruption. The Rwandan government is stable enough that they benefit from exterminating corruption, because it increases their popularity and popular mandate. Popular mandate is useless, though, in a country like Burundi where a new rebel group takes power every few years, and money from corruption is much more lucrative in the short-term.
Sarah, another excellent article. It’s fantastic that you’re traveling to and covering such places. You’ve spurred me to learn even more about this country, just like watching ‘Hotel Rwanda’ had done a couple of years ago.
i salute you on the beautiful coverage & may the people of Rawanda be blessed! i only wish Ghana could do better-bio-desil?
There is plenty of corruption in Rwanda, however, slightly less than in the adjoining D.R. Congo.
Rwanda has a big hand in the mineral exploitation occurring in the DRC that is fueling one of the deadliest wars in Africa and allowing Rwanda to flourish.
There is way more to this story than is being reported in this article.
Nice to hear about less corruption there.
Out of curiosity: Was there corruption earlier (like say 15 yrs back) and they got rid of it. Or is it more like there was very little corruption to begin with?
i would love to visit to see all that beauty – but that hotel price tag just killed it
1) It’s easy to get a hotel under $20 a night. One of the nicest hotels in Rwanda, the Hotel Bethany on Lake Kivu, is only $15 a night for the cheaper rooms. There are dozens are nice hotels in Rwanda, and only a few of them (Stipp, Milles Collines, Kivu Sun, Serena) are more than $50 a night.
2) The fiber optic on the side of the road, unfortunately, is not connecting Rwanda to the global internet backbone, and isn’t going to solve their slow satellite internet problem.
3) I’m surprised you are having difficulty finding tech development in Rwanda. There’s more tech development in Rwanda than in any other country in that region of the world. Some projects to check out: Kigali Coders (http://www.kigalicoders.com/)
Karisimbi Integrated Energy and Communications Project
National Electronic Medical Record Rollout (GoR in conjunction with Partners In Health)
Ghana tech scene rocks as well:
http://news.bbc...ica/6411961.stm
Rwanda ni kurusha ibihugu byose kuri ICT. Mwoshobora kubona aba ICT entrepreneur muri igihugu hose, kabisa.
Ah… mamawe… ndakumbuye Rwanda…
Kandi ndakumbuye mutzig =).
Corruption exists in Rwanda but -compared to some other African countries- it is minimal. If you could get Rwandans (and Congolese) to speak openly you would find many believe corruption exists at the highest level.
Even with the world economy struggling, Rwanda has a steady tourism trade. Steep prices for hotels, food and transport are all part of visiting Rwanda.
This is a great piece of and about entrepreneurship, and takes TC to a whole new level of journalism.
Corruption is the number 1 cause of all wrongdoing in Africa and The major road block for positive change.
If indeed Rwanda can self-govern itself with limited corruption incidents, market economy and open social structure then this place will be heaven on earth.
Rwanda is still very very far from heaven on earth, being about 9th in the world when it comes to GDP per capita and the average income being less than a dollar a day.
Yeah, nipping corruption in the butt has done a lot of good for Rwanda, but there is still a very very long way to go.
By the way, Sarah, what makes you think the hotel price tag isn’t just a total rip off? As in, we’ll charge whatever the hell we can get away with. Hotels should be costing no more than 20$ a night in countries like that.
The rip-off scenario came to my mind as well, I’ve never come across a destination which could get away with such prices unless it was a very popular tourist spot, and I find it hard to believe Rwanda is such a place.
If Rwandan hotels on average can charge $200 bucks for a night and fill the place every night, there would be hotels springing up at every corner by people trying to make a better living, as the annual per capita GDP is about $1,041.
Sebastian,…what do you mean in countries like that?!!
there s a simple rule in economy, “supply and Demand” here is the deal, find a room u like at $20 a night or whatever price you like and take it, but if u can’t find it because the whole town is overbooked, then hell yeah we will charge the heck out of you.
so if u think the rooms should be $20 in “countries like that”, well,..may be u should find mountain Gorillas in “other countries like that”, less corruption, clean energy development, roads in good conditions, security, clean cities …etc in other “countries like that”.
Whew, that was a close one! I was reading the headline in Netvibes and instantly thought to myself, “I wonder if she went there on vacation.”
Thanks for being on the ball.
It’s a given. Someone visits an ecosystem once or twice and automatically becomes an authority.
The only thing that surprised me was the cleanliness of Rwanda’s capital city. I will bite that.
Overall, the piece was very refreshing. Any good news out of Africa is always welcome.
Why sould it surprise you? Does it surprise you when you visit any other country in the world that it is clean? – Is that usually the first thing that hits you or were you expecting kids with flies and snot in their noses to fit the image in your head?
Stop watching too much TV – buy a plane ticket and elevate your mind.
I don’t know about Rwanda specifically, but in Uganda, most prices are negociable. So when a hotel owner or taxi-driver or whomever realizes you’re an american, the price will usually immediately double or triple, because they will think its their lucky day because presume you are a rich tourist and can afford to pay them handsomely for their services. Best results, it seemed, were when you could get a local to haggle over the price on your behalf.
Good piece.
Gourevitch’s book was one of the most powerful I’ve ever read. I was excited to read his follow-up article but followed the link to –EGADS!– paid content!
I’d go read at the library… but I’m in Tokyo. Fortunately, the Rwandan embassy in a certain Southeast Asian country has a full-version PDF available online.
I love you writing, Sarah!
“…zero violent crime.”
That’s a pretty incredible change from the massive genocide fifteen years ago.
More pics of Rwanda: http://www.flic...da/interesting/
I like the clean energy methane thing. Now we just need to find an exploding lake to tap in the U.S….
Great article Sarah. From what I read Kagame is probably the best president in Africa.
About the “the coolest green application” you mention (methane extraction) I don’t think this may be considered a green application. How do you think it is greener than oil extraction and consumption?
Very nice to see Rwanda in the spotlight on TechCrunch! As far as I start to know this country, all what you said is true.
No plastic bag, very clean. It’s clean also because one Saturday a month if you happen to be outside in the street from 9 to 11am, whether you’re a maid or a foreign CEO you’re enrolled to clean the streets of Kigali. I guess once you spent 2 to 3 hours cleaning you think twice before littering …
Also almost every goods are expensive, take toothpaste for instance it’s $20 (US dollars) a tube!
I will stay tune to see if you can report more about Rwanda and entrepreneurs, ’cause I will be looking for a job in Kigali this fall.
As Babeth’s husband and having relocated to Rwanda some time ago, I concur with most of the comments here, this seems like an accurate picture.
Expensive life, clean place, good entrepreneurial outlook. As for corruption, I know first hand it does exists but it is invisible. You will never get a policeman arrest you and outright ask for your “help”.
Anybody with money and some guts can successfully build a business here.
I work for a big tech company here in Rwanda, give me a shout Sarah, I would be very interested to get your opinion on how we can develop communications and technology in Rwanda.
How would burnign Methane be ecological? Or do I misunderstnad it? Sure, they have to get rid of the methane in order to make the lake safe but why burn it? That won’t solve any of our global heating problems if it is due to CO2…
The methane lake may not seem clean, but by being carbon neutral, it’s cleaner than oil and gas.
Oil and gas are taken out of deposits which would otherwise continue to remain out of the atmosphere and then put into the atmosphere. With exploding lakes, the methane is going to get into the atmosphere on a non-geological timescale (you can read about this on Wikipedia), so you’re simply preserving the status quo.
Of course, I doubt that Rwanda is doing this for any kind of “clean energy” reason, and it’s certainly not sustainable, but it’s at least cleaner than driving your car.
Some of the comments/questions are either tongue-in-cheek or plain racist or stupid. No, I am not a card carrying member of the NAACP.
Rwanda’s president – Paul Kagame – has seen what corruption has wrought on its neighbours (Uganda, Burundi & Congo) thus his approach is very, very low tolerance to corruption (however defined).
Corruption can never be eliminated – even in Finland – but the lower the better. Compared to Kenya or Tanzania or other African countries, it is negligible at best.
Congo: The Rwandans were primarily protecting their country from the hutu hordes (interehamwe) who were the guys behind the 1994 massacres. And if the Rwandans took something for their troubles… heck, so what! Spoils of war?
Congo sold its soul to anyone who came along. Zimbabwe, Angola, Uganda… but focus on lil’ Rwanda. There is a large Tutsi population in Eastern Congo that needs protection from the interehamwe.
Singapore: Paul Kagame looks upon Singapore for inspiration. Not a bad model. Beats gaddafi of Libya. Pity Rwanda does not have a sea port.
Internet: Faster/cheaper internet is on the way. It will take another 2 years. Kenya landed the TEAMS undersea cable in June 2009. SEACOM will land in 4Q 2009 in Mombasa, Kenya. Next step is terrestrial connections from Kenya to Uganda to Rwanda. Kenya is already connected from Mombasa to Kisumu (east to west).
Rwanda’s president – Paul Kagame has done more than just seen what corruption has done to his neighbors. However you are right they are very entrepreneurial in Rwanda.
“And if the Rwandans took something for their troubles… heck, so what! Spoils of war?”
I believe at the last count there are 4 million dead in the area immediately across the border in Eastern DRC.
The “spoils of war” has a terrible price.
I am so happy to hear this kind of news. It is absolutely great for all of us to see how a little nation, that has been through a lot can accomplish great things. Good for people. Good for the planet.
Sarah, If you are still in Gisenyi, I recommend you slip across the border to Goma and ask a few questions there regarding Rwandan business strategies. There is not a lot of fiber optics around but you will hear about the other side of this story.
learn more here-
http://www.enou...s/eastern_congo
Let’s clear up a few things:
- “It’s one of the only times in recorded history the victims of a genocide had to go live in the same land with the perpetrators, which was no easy feat given how much of the general population was guilty of the crime” Hmm, um, Bosnia? How about then? Forget about that? Happened at the same time which is why we forgot about Rwanda.
- “This trip has cost several times what my two weeks in China cost me last month.” While Africa travel isn’t cheap, you obviously either a) don’t know how to travel or b) were too lazy to actually plan the trip. I was able to travel both ends of the Congo for three weeks for $1700 not including plane fare of course.
- “Think that’s bad? A nicer one quoted me rates of up to $700 a night. ” Yeah, mzungu prices. Get on the case of the UN, USAID, the Red Cross, and a whole bunch of others for paying that much for people to stay in the country which then drives up the price. Can’t fault the locals for taking advantage of it. You did it as well, so you’re only helping keep the prices high.
- “That’s not a commentary on the tensions between Rwanda and the Democratic Republic of Congo” If you had paid the least bit of attention to the news in the last few months, you would have seen that the two governments have been working in heavy cooperation with each other.
- “My driver was a bit confused about my excitement exploring and photographing the whole operation” He probably was actually quite pissed at all your photo taking since foreigners tend to only take shots of the poorness of Africa. I’d be pissed too if foreigners only showed the slums of our big American cities.
As an American, I thank you for taking this opportunity to misrepresent a slew of many things and show what an ill fit the American abroad is with no knowledge of history or even social grace. I’m surprised that you didn’t mention the fact that as an American you don’t have to pay for your visa to enter because the US is supplying a vast swath of Rwanda’s yearly budget. It’s extremely unfortunate that your poorly written and factually poor article is going to be read by so many people.
Nothelping, that is a little strong, but yes there are many less glowing issues here that have not been touched on that are interconnected to this story. Its a one sided article! That would be semi-excusable except the scale of the humanitarian toll is so huge.
Besides this, Rwanda is a beautiful place and definitely worth a visit if you are traveling in Africa. There are many hotels at all prices, one can stay very comfortably in a sub $100 hotel in Kigali.
Sarah!
Did you know that Kigali has only one million rwandans out of 10 million of rwandan population and 99% of Kigali residents are very poor. What about the rest of the country, the rest of rwanda and rwandans? Did you look around and see how many rwandans are staying in these hotels? How many can afford that? Who is benefiting from all services you are praising? Are you kidding me! Did you step out of Kigali to see the kind of living conditions of the majority of rwandans? Did you know Rwanda before the genocide? What are you comparing? As a tourist, how can you affirme that there is no corruption in Rwanda? It is not going to be in streets! Actually, if you were a good observor, you would have noticed that Kagame is trying to prove something different to the international community and tourists like you! And your question should be, why Rwanda is trying to prove otherwise? Why do you need to prove otherwise? Was there something wrong to begin with? Are you proving something otherwise to your own people or to the the tourists like you? Why is Kagame so defensive? If you answer all these questions, you will find what is hiden in his agenda? I mean political agenda, not just attracting businesses and tourism!! Stop your naivete please!
Many of the greatest achievements have been social and societal. The country has admirably rebuilt itself since the 1994 genocide. It’s one of the only times in recorded history the victims of a genocide had to go live in the same land with the perpetrators, which was no easy feat given how much of the general population was guilty of the crime. Joey you can go back now, join the other perpetrators.
Even if the piece definitely reads: “I m tourist in Africa”, I do appreciate the fact the somebody from TechCrunch finally cares about remembering that Africa is not just a piece a land where savages kill each other in the jungle… Yes there is an internet in Africa and yes there are African entrepreneurs.
Now, I am really having a hard time understanding how a project of extracting and burning methane to generate energy can be considered cleantech… As far as I can remember it is a fossil fuel, and still releases CO2 in the atmosphere. May be less than oil, but that does not make it clean.
The real problem with such a concentration of methane and co2, and someone would have told you if you had asked, is far bigger than Ruanda’s needs in energy. Hundreds of thousands, potentially millions of human lives could be lost if the huge quantity of gaz dissolved in the lake, suddenly found its way up to the surface: it would instantaneously kill anyone and anything up to several miles around the trove…
Were you looking for problems that technology could fix in Ruanda? THAT, my dear, is a big, hard one that would have deserved an entire piece.
Who is suggesting these poorly researched, utterly pointless story ideas?
Why is Sarah Lacy traveling all over the world, and then blogging onto a tech blog?
I’m confused—almost as much as the author herself.
Gosh, this is clumsy writing.