Rwanda – ‘an African economic success’

Rwanda has moved from a state of civil war accompanied by mass genocide in 1994 to what Christine Lagarde, managing director of the International Monetary Fund (IMF), describes as “one of Africa’s economic success stories”. In a statement issued after concluding a visit to Rwanda last month, Lagarde said: “Rwanda’s economic achievements are based on real GDP growth that has averaged 8% a year over the past decade, subdued inflation, and foreign reserves maintained at adequate levels. “The government has sustained efforts to improve public financial management, good governance, and reform the business environment— placing Rwanda among the top African economies in the World Bank’s Doing Business Indicators,” she said. But, “the challenge going forward is to sustain this strong economic performance while making the transition toward a more self-reliant, private sector-led, and exportoriented economy,” she added. Rwanda’s export strategy focuses on adding value to traditional exports and moving into new areas. The government is developing policies to facilitate the growth of household enterprises and small and medium-sized businesses to foster the transition to a more service and manufacturingbased economy, according to Lagarde. At present coffee and tea each contribute about 15% to the value of Rwandan exports. There is a big trade imbalance, with exports of around US$755 million and imports of US$1.78 billion, according to economic data. INSERT 8% Average GDP growth over the past decade.