Claver Gatete outlines Rwanda's economic outlook
Rwanda continues to recover from financial shocks that curbed growth, slowing it down to 6 per cent in 2016, now with a more deliberate approach to hedging and diversification. To unpack the country’s performance so far,
Fri, 06 Oct 2017 14:36:44 GMT
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AI Generated Summary
- The impact of global financial challenges on Rwanda's economy, particularly in the mineral sector, and the need for diversification and value addition
- The government's initiatives, including the Medina Rwanda campaign and investments in the service sector and infrastructure, aimed at fostering economic growth and diversification
- The focus on enhancing agricultural productivity and resilience through investments in irrigation, training programs for young farmers, and the development of the agro-processing value chain
Rwanda has been on a path of recovery from financial setbacks that slowed its growth to 6% in 2016. The Minister for Finance and Economic Planning, Claver Gatete, highlighted the challenges Rwanda faced in recent years, from the global financial crisis to the impact of high oil prices and the debt situation in Europe. These factors had a cascading effect on Rwanda's economy, especially in terms of mineral exports, a crucial revenue source for the country. The Minister emphasized the need for diversification and value addition in the mineral sector to reduce dependency on raw mineral exports. Rwanda has been focusing on enhancing its mining sector by reorganizing production processes and establishing the Rwanda Mining Board to oversee mining activities. Additionally, Rwanda has been investing in other industries through the Medina Rwanda campaign, aimed at developing various sectors in an organized manner. These efforts are beginning to yield results, with the industrial sector's contribution to GDP expected to rise significantly. The government's initiatives, including the expansion of the service sector and investments in infrastructure, such as the Kigali International Airport, are contributing to Rwanda's economic growth. The country has also seen progress in conference tourism and IT services, further diversifying its economy. The Minister highlighted the importance of resilience in the face of potential shocks by focusing on regional, African, and global markets while bolstering long-term savings through initiatives like the Southern West Fund. Rwanda's agricultural sector, a key contributor to GDP and employment, has been receiving attention to enhance productivity and weather resilience. Investments in irrigation, seed distribution, and training programs for young farmers are aimed at modernizing the sector and mitigating the impacts of climate change. The government is also working on developing the value chain in agriculture to link farmers with processing facilities, promoting agro-processing within the Medina Rwanda campaign.
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