Economy

Rwanda

Economy - overview:

Rwanda is a poor rural country with about 90% of the population engaged in (mainly subsistence) agriculture. It is the most densely populated country in Africa; landlocked with few natural resources and minimal industry. Primary foreign exchange earners are coffee and tea. The 1994 genocide decimated Rwanda's fragile economic base, severely impoverished the population, particularly women, and eroded the country's ability to attract private and external investment. However, Rwanda has made substantial progress in stabilizing and rehabilitating its economy to pre-1994 levels, although poverty levels are higher now. GDP has rebounded, and inflation has been curbed. Export earnings, however, have been hindered by low beverage prices, depriving the country of much needed hard currency. Attempts to diversify into non-traditional agriculture exports such as flowers and vegetables have been stymied by a lack of adequate transportation infrastructure. Despite Rwanda's fertile ecosystem, food production often does not keep pace with population growth, requiring food to be imported. Rwanda continues to receive substantial aid money and was approved for IMF-World Bank Heavily Indebted Poor Country (HIPC) initiative debt relief in late 2000. But Kigali's high defense expenditures cause tension between the government and international donors and lending agencies.

GDP:

purchasing power parity - $10.11 billion (2003 est.)

GDP - real growth rate:

3.5% (2003 est.)

GDP - per capita:

purchasing power parity - $1,300 (2003 est.)

GDP - composition by sector:

agriculture: 40.7%
industry: 21.5%
services: 37.8% (2003 est.)

Investment (gross fixed):

19.3% of GDP (2003)

Population below poverty line:

60% (2001 est.)

Household income or consumption by percentage share:

lowest 10%: 4.2%
highest 10%: 24.2% (1985)

Distribution of family income - Gini index:

28.9 (1985)

Inflation rate (consumer prices):

7.5% (2003 est.)

Labor force:

4.6 million (2000)

Labor force - by occupation:

agriculture 90%

Unemployment rate:

NA

Budget:

revenues: $365.9 million
expenditures: $402.9 million, including capital expenditures of $NA (2003 est.)

Agriculture - products:

coffee, tea, pyrethrum (insecticide made from chrysanthemums), bananas, beans, sorghum, potatoes; livestock

Industries:

cement, agricultural products, small-scale beverages, soap, furniture, shoes, plastic goods, textiles, cigarettes

Industrial production growth rate:

7% (2001 est.)

Electricity - production:

96.78 million kWh (2001)

Electricity - production by source:

fossil fuel: 2.3%
hydro: 97.7%
other: 0% (2001)
nuclear: 0%

Electricity - consumption:

140 million kWh (2001)

Electricity - exports:

0 kWh (2001)

Electricity - imports:

50 million kWh (2001)

Oil - production:

0 bbl/day (2001 est.)

Oil - consumption:

5,300 bbl/day (2001 est.)

Oil - exports:

NA (2001)

Oil - imports:

NA (2001)

Oil - proved reserves:

0 bbl (1 January 2002)

Natural gas - proved reserves:

28.32 billion cu m (1 January 2002)

Current account balance:

$-163 million (2003)

Exports:

$73.33 million f.o.b. (2003 est.)

Exports - commodities:

coffee, tea, hides, tin ore

Exports - partners:

Indonesia 38%, Germany 4.4%, China 3.8% (2003 est.)

Imports:

$245.8 million f.o.b. (2003 est.)

Imports - commodities:

foodstuffs, machinery and equipment, steel, petroleum products, cement and construction material

Imports - partners:

Kenya 24%, Germany 7.7%, Belgium 6.6%, France 5.1% (2003 est.)

Reserves of foreign exchange & gold:

$215 million (2003)

Debt - external:

$1.3 billion (2000 est.)

Economic aid - recipient:

$372.9 million (1999)

Currency:

Rwandan franc (RWF)

Currency code:

RWF

Exchange rates:

Rwandan francs per US dollar - 537.658 (2003), 476.327 (2002), 442.801 (2001), 389.696 (2000), 333.942 (1999)

Fiscal year:

calendar year