Rwanda

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Rwanda - In Short.

Overview of Rwanda

Rwanda – a small and centralized country dominated by rugged hills and fertile volcanic soil – has exerted disproportionate influence over the African Great Lakes region for centuries. A Rwandan kingdom increasingly dominated the region from the mid-18th century onward, with the Tutsi monarchs gradually extending the power of the royal court into peripheral areas and expanding their borders through military conquest. While the current ethnic labels Hutu and Tutsi predate colonial rule, their flexibility and importance have varied significantly over time. The majority Hutu and minority Tutsi have long shared a common language and culture, and intermarriage was not rare. The Rwandan royal court centered on the Tutsi king (mwami), who relied on an extensive hierarchy of political, cultural, and economic relationships that intertwined Rwanda’s ethnic and social groups. Social categories became more rigid during the reign of RWABUGIRI (1860-1895), who focused on aggressive expansion and solidifying Rwanda’s bureaucratic structures. German colonial rule began in 1898, but Belgian forces captured Rwanda in 1916 during World War I. Both European nations quickly realized the benefits of ruling through the already centralized Rwandan kingdom. Colonial rule reinforced existing trends toward autocratic and exclusionary rule, leading to the elimination of traditional positions of authority for Hutus and a calcification of ethnic identities. Belgian administrators significantly increased requirements for communal labor and instituted harsh taxes, increasing frustration and inequality. Changing political attitudes in Belgium contributed to colonial and Catholic officials shifting their support from Tutsi to Hutu leaders in the years leading up to independence. Newly mobilized political parties and simmering resentment of minority rule exploded in 1959, three years before independence from Belgium, when Hutus overthrew the Tutsi king. Thousands of Tutsis were killed over the next several years, and some 150,000 were driven into exile in neighboring countries. Army Chief of Staff Juvenal HABYARIMANA seized power in a coup in 1973 and ruled Rwanda as a single-party state for two decades. HABYARIMANA increasingly discriminated against Tutsi and extremist Hutu factions that gained prominence after multiple parties were introduced in the early 1990s. The children of Tutsi exiles later formed a rebel group, the Rwandan Patriotic Front (RPF) and began a civil war in 1990. The civil war exacerbated ethnic tensions and culminated in the shooting down of HABYARIMANA’s private jet in April 1994. The event sparked a state-orchestrated genocide in which Rwandans killed approximately 800,000 of their fellow citizens, including approximately three-quarters of the Tutsi population. The genocide ended later that same year when the predominantly Tutsi RPF, operating out of Uganda and northern Rwanda, defeated the national army and Hutu militias and established an RPF-led government of national unity. Rwanda held its first local elections in 1999 and its first post-genocide presidential and legislative elections in 2003, formalizing President Paul KAGAME’s de facto role as head of government. KAGAME won reelection in 2010, and again in 2017 after changing the constitution to allow him to run for a third term.
Value
Country Full Name
Rwanda
Country Code
RWA
Region
Sub-Saharan Africa
Income Group
Low income
Currency Unit
GDP
10333991456
Population
12952209
Land Area
24670
Net National Income Per Capita
647.4149432
GDP per Capita (PPP)
2213.828054

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Rwanda - Economic

Economy of Rwanda

Rwanda is a rural, agrarian country with agriculture accounting for about 63% of export earnings, and with some mineral and agro-processing. Population density is high but, with the exception of the capital Kigali, is not concentrated in large cities – its 12 million people are spread out on a small amount of land (smaller than the state of Maryland). Tourism, minerals, coffee, and tea are Rwanda’s main sources of foreign exchange. Despite Rwanda’s fertile ecosystem, food production often does not keep pace with demand, requiring food imports. Energy shortages, instability in neighboring states, and lack of adequate transportation linkages to other countries continue to handicap private sector growth.The 1994 genocide decimated Rwanda’s fragile economic base, severely impoverished the population, particularly women, and temporarily stalled the country’s ability to attract private and external investment. However, Rwanda has made substantial progress in stabilizing and rehabilitating its economy well beyond pre-1994 levels. GDP has rebounded with an average annual growth of 6%-8% since 2003 and inflation has been reduced to single digits. In 2015, 39% of the population lived below the poverty line, according to government statistics, compared to 57% in 2006.The government has embraced an expansionary fiscal policy to reduce poverty by improving education, infrastructure, and foreign and domestic investment. Rwanda consistently ranks well for ease of doing business and transparency.The Rwandan Government is seeking to become a regional leader in information and communication technologies and aims to reach middle-income status by 2020 by leveraging the service industry. In 2012, Rwanda completed the first modern Special Economic Zone (SEZ) in Kigali. The SEZ seeks to attract investment in all sectors, but specifically in agribusiness, information and communications, trade and logistics, mining, and construction. In 2016, the government launched an online system to give investors information about public land and its suitability for agricultural development.

Unemployment Rate

Inflation Rate

Rwanda - GDP Composition

GDP Composiiton & Value Added of Rwanda

Last Updated: Jan, 2021, Updated For 2020.

Rwanda - GDP, Value Added

Demographics of Rwanda

one of Africa’s most densely populated countries; large concentrations tend to be in the central regions and along the shore of Lake Kivu in the west as shown in this population distribution map
Geographic Location

Central Africa, east of the Democratic Republic of the Congo, north of Burundi

Races

Hutu, Tutsi, Twa (Pygmy)

Languages

Kinyarwanda (official, universal Bantu vernacular) 93.2%, French (official) <0.1, English (official) <0.1, Swahili/Kiswahili (official, used in commercial centers) <0.1, more than one language, other 6.3%, unspecified 0.3% (2002 est.)major-language

Religion

Protestant 57.7% (includes Adventist 12.6%), Roman Catholic 38.2%, Muslim 2.1%, other 1% (includes traditional, Jehovah's Witness), none 1.1% (2019-20 est.)

Dependency & Expectancy of Rwanda

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Rwanda - Social Media Briefing

Rwanda - Social Media & Social Commerce

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Politics & Policies of Rwanda

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ACP, AfDB, AU, C, CEPGL, COMESA, EAC, EADB, FAO, G-77, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MINUSMA, NAM, OIF, OPCW, PCA, UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNISFA, UNMISS, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

Import of Rwanda

Export of Rwanda

Import Destination

Export Destination