Rwanda

Capital: Kigali

Local time:
It is %T:%M %A in Kigali

Exchange rate on :

GDP growth rate: 7.0% in 2013

FDI stock: 435 million USD in 2010

Country risk: See the country risk analysis from Rwanda provided by Ducroire.

Economic trends

Between the years 2000 and 2010, Rwanda's GDP has more than doubled. In 2012, the forecast in terms of growth is lower than the previous years due to the expected decline in global demand, for this reason, its GDP's growth should be about 7%, stimulated by a expansionist fiscal policy and investments in the education and infrastructures which will show a steady progress of the Millennium Development Goals.

Rwanda is involved in the PSI program (The Policy Support Instrument) with the IMF in order to strengthen the stability of its economy, to promote a long-term growth and to reduce the country's dependence on foreign aid (40% of the country's budget). In this framework, the government wants to diversify its economy, the program "Vision 2020" establishes the priorities for the development of non-agricultural activities, reinforces efficiency in services and identifies the most  important measures to be applied for social protection.

Rwanda is a heavily indebted poor country (HIPC) where the majority of the population lives below the poverty line and where almost 30% of the population suffers from the lack of food security.

Main branches of industry

International trade

Rwanda's economic policy is very open to trade: international trade represents almost one-third of the country's GDP. Rwanda has signed a bilateral agreement with the United States in December 2011.

The country's customs duties are rather low (an average of 14.4%) and non-tariff barriers practically do not exist. The main obstacles to the Rwandan economy are its unstable geopolitical environment and its unskilled workforce.

Due to the country's strong growth and its demand for manufactured products, Rwanda has a structural trade deficit, a trend that is expected to continue during the next coming years. In order to improve its trade balance, the government counts with the investments in telecommunications and road networks, as well as the development of industry and the tertiary sector.

Rwanda's main trading partners are the EAC (East African Community) member countries, the European Union and the United Arab Emirates. Its exports are mainly coffee, tea and minerals.