Finmin Ndagijimana gives update on Rwanda’s economic recovery efforts

Rwanda's economy faced a significant contraction of 3.4% in 2020 as per data from the National Institute of Statistics of Rwanda. This decline was attributed to the impact of the COVID-19 pandemic, leading to a series of lockdowns that disrupted economic activities. In a recent interview with CNBC Africa, Finance Minister Uzziel Ndagijimana discussed the country's economic recovery efforts and outlined key measures taken to support businesses and stimulate growth. The journey to economic recovery has been tumultuous, starting from a pre-pandemic growth of 3.6% to a sharp decline of 12.4% in the second quarter of 2020 due to the initial lockdowns. However, the economy has shown signs of improvement with a decrease to -0.6% in the fourth quarter of the same year. The Minister highlighted the implementation of the Economic Recovery Fund, launched in June 2020, which aimed at providing support to sectors adversely impacted by the pandemic. The fund, initially set at $100 million, has now been expanded to $350 million to incorporate investments in high-growth sectors. This expansion reflects the government's commitment to bolstering the economy and fostering recovery. Ndagijimana emphasized the importance of continuous monitoring of the fund's disbursement and ensuring its effectiveness in reaching businesses in need. Despite challenges posed by rating agencies expressing negative outlooks on Rwanda's economy, the Minister remains optimistic about the country's recovery prospects. He acknowledged the uncertainties surrounding the duration and impact of the pandemic but highlighted the resilience of key sectors such as agriculture, manufacturing, and IT. The Minister also addressed concerns about debt sustainability, assuring that Rwanda's moderate debt levels are manageable within the context of long-term economic growth. Ndagijimana reiterated the government's focus on implementing the National Strategy for Transformation 2017-2024, with a special emphasis on health sector strengthening, social protection programs, and infrastructure investments to stimulate job creation. The Minister's steadfast commitment to economic recovery and resilience in the face of challenges underscores Rwanda's determination to overcome the pandemic's impact and pave the way for sustainable growth.