Abstract

Rwanda’s Land Policy Reform promotes agri-business and encourages self-employment. This paper aims to analyze the situation from a self-employment perspective when dealing with expropriation risk in rural areas. In this study, we conducted a structured survey addressed to 63 domestic units, complemented by focus groups of 47 participants from Kimonyi Sector. The binary logistic regression analysis revealed that having job alternatives, men heading domestic units, literacy skills in English, and owning land lease certificates (p < 0.05) are positively and significantly related to awareness of land expropriation risk. The decision of the head of the domestic unit to practice the main activity under self-employment status is positively influenced by owning a land lease certificate, number of plots, and French skills, while skills in English and a domestic unit’s size have a positive and significant influence on involvement in a second activity as self-employed. Information on expropriation risk has no significant effect on self-employment. The domestic unit survey revealed that 34.9% of the heads of domestic units only have one job, 47.6% have at least two jobs in their everyday life, 12.7% have a minimum of three jobs, and 4.8% are inactive. The focus group synthesis exposed the limits to self-employment ability and facilities.

Highlights

  • Rwanda’s economic reform associated with its market-led model of economy refers to structural transformation, mostly away from subsistence agriculture and towards poverty reduction [1]

  • This study aims to examine the situation of self-employment in rural areas since the Rwandan Government has reformed land policy and launched the maxim of “own account jobs creation”, translated in Kinyarwanda language as “Kwihangira imirimo”

  • More than 50% of heads of the domestic units are not informed about the expropriation risk (Table 1)

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Summary

Introduction

Rwanda’s economic reform associated with its market-led model of economy refers to structural transformation, mostly away from subsistence agriculture and towards poverty reduction [1]. The expropriation risk for public interest is a recurrent concern of the urban population in Kigali, a city of Rwanda [2,3]. The phenomenon is present in rural areas. The main reason for expropriation risk is different in rural and urban areas. It is mainly observed at sites where industrial projects and big investors are more privileged than rural land users, not in terms of public interest, but for business purposes. The resilience strategies employed to deal with this expropriation risk still receive less attention in rural areas. Several studies have argued that the Rwandan Government is banking on the capturing of land taxes via deliberate land-based real estate development [4]

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