The economy of Rwanda has undergone rapid industrialisation due to a successful governmental policy. It has a mixed economy. Since the early-2000s,
Rwanda
Rwanda (; rw, u Rwanda ), officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, where the African Great Lakes region and Southeast Africa converge. Located a few degrees south of the Equator ...
has witnessed an economic boom, which improved the living standards of many Rwandans. The Government's progressive visions have been the catalyst for the fast transforming economy. The President of Rwanda,
Paul Kagame
Paul Kagame (; born 23 October 1957) is a Rwandan politician and former military officer who is the 4th and current president of Rwanda since 2000. He previously served as a commander of the Rwandan Patriotic Front (RPF), a Uganda-based rebel ...
, has noted his ambition to make Rwanda the "
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
of Africa".
History
Before the civil war and genocide
In the 1960s and 1970s, Rwanda's prudent financial policies, coupled with generous external aid and relatively favorable terms of trade, resulted in sustained growth in per capita income and low inflation rates. However, when world coffee prices fell sharply in the 1980s, growth became erratic.
Compared to an annual GDP growth rate of 6.5% from 1973 to 1980, growth slowed to an average of 2.9% a year from 1980 through 1985 and was stagnant from 1986 to 1990. The crisis peaked in 1990 when the first measures of an IMF
structural adjustment
Structural adjustment programs (SAPs) consist of loans (structural adjustment loans; SALs) provided by the International Monetary Fund (IMF) and the World Bank (WB) to countries that experience economic crises. Their purpose is to adjust the coun ...
program were carried out. While the program was not fully implemented before the war, key measures such as two large devaluations and the removal of official prices were enacted. The consequences on salaries and purchasing power were rapid and dramatic. This crisis particularly affected the educated elite, most of whom were employed in civil service or state-owned enterprises.
During the 5 years of
civil war
A civil war or intrastate war is a war between organized groups within the same state (or country).
The aim of one side may be to take control of the country or a region, to achieve independence for a region, or to change government policies ...
that culminated in the 1994 genocide, GDP declined in 3 out of 5 years, posting a rapid decline at more than 40% in 1994, the year of the genocide. The 9% increase in real GDP for 1995, the first postwar year, signalled the resurgence of economic activity.
After the civil war and genocide
The
1994 genocide
The Rwandan genocide occurred between 7 April and 15 July 1994 during the Rwandan Civil War. During this period of around 100 days, members of the Tutsi minority ethnic group, as well as some moderate Hutu and Twa, were killed by armed Hutu ...
destroyed 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 significant progress in stabilizing and rehabilitating its economy. In June 1998, Rwanda signed an
Enhanced Structural Adjustment Facility The Enhanced Structural Adjustment Facility (ESAF) was a program of financial assistance given to poor countries from December 1987 through 1999 through the International Monetary Fund. It replaced the Structural Adjustment Facility (SAF) and was i ...
with the
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
. Rwanda has also embarked upon an ambitious privatization program with the
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...
.
In the immediate postwar period—mid-1994 through 1995—emergency humanitarian assistance of more than $307.4 million was largely directed to relief efforts in Rwanda and in the refugee camps in neighboring countries where Rwandans fled during the war. In 1996, humanitarian relief aid began to shift to reconstruction and
development assistance
Development aid is a type of foreign/international/overseas aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countries. Closely-related concepts include: developm ...
.
The
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
,
Belgium
Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...
,
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
, the
Netherlands
)
, anthem = ( en, "William of Nassau")
, image_map =
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of the Netherlands
, established_title = Before independence
, established_date = Spanish Netherl ...
,
France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
, the
People's Republic of China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
, the World Bank, the
UN Development Programme
The United Nations Development Programme (UNDP)french: Programme des Nations unies pour le développement, PNUD is a United Nations agency tasked with helping countries eliminate poverty and achieve sustainable economic growth and human deve ...
and the
European Development Fund
Global Europe, officially the Neighbourhood, Development and International Cooperation Instrument (NDICI), is the financial arm of the Common Foreign and Security Policy of the European Union, which provides funding for the European Neighbourhoo ...
will continue to account for the substantial aid. Rehabilitation of government infrastructure, in particular the justice system, was an international priority, as well as the continued repair and expansion of infrastructure, health facilities, and schools.
After the Rwandan Genocide, the Tutsi-led government began a major program to improve the country's economy and reduce its dependence on subsistence farming. The failing economy had been a major factor behind the genocide, as was overpopulation and the resulting competition for scarce farmland and other resources. The government focused primarily on building up its manufacturing and service industries and eliminating barriers to trade and development.
![Voa murdock rwanda farming musangwa 300 oct2011](https://upload.wikimedia.org/wikipedia/commons/5/58/Voa_murdock_rwanda_farming_musangwa_300_oct2011.jpg)
The Government of Rwanda posted a 13% GDP growth rate in 1996 through improved collection of tax revenues, accelerated privatization of state enterprises to stop the drain on government resources, and continued improvement in export crop and food production. Tea plantations and factories continue to be rehabilitated, and coffee, always a smallholder's crop, is being more seriously rehabilitated and tended as the farmers' sense of security returns. However, the road to recovery will be slow.
Coffee production of 14,578,560 tons in 2000 compares to a pre-civil war variation between 35,000 and 40,000 tons . By 2002 tea became Rwanda's largest export, with export earnings from tea reaching US$18 million equating to 15,000 tons of dried tea. Rwanda's natural resources are limited. A small mineral industry provides about 5% of foreign exchange earnings. Concentrates exist of the heavy minerals
cassiterite
Cassiterite is a tin oxide mineral, SnO2. It is generally opaque, but it is translucent in thin crystals. Its luster and multiple crystal faces produce a desirable gem. Cassiterite was the chief tin ore throughout ancient history and remains t ...
(a primary source of
tin
Tin is a chemical element with the symbol Sn (from la, stannum) and atomic number 50. Tin is a silvery-coloured metal.
Tin is soft enough to be cut with little force and a bar of tin can be bent by hand with little effort. When bent, t ...
), and
coltan
Coltan (short for columbite–tantalites and known industrially as tantalite) is a dull black metallic ore from which the elements niobium and tantalum are extracted. The niobium-dominant mineral in coltan is columbite (after niobium's original A ...
(used to manufacture electronic capacitors, used in consumer electronics products such as
cell phone
A mobile phone, cellular phone, cell phone, cellphone, handphone, hand phone or pocket phone, sometimes shortened to simply mobile, cell, or just phone, is a portable telephone that can make and receive calls over a radio frequency link whil ...
s,
DVD player
A DVD player is a device that plays DVDs produced under both the DVD-Video and DVD-Audio technical standards, two different and incompatible standards. Some DVD players will also play audio CDs. DVD players are connected to a television to wa ...
s,
video game systems
A video game console is an electronic device that outputs a video signal or image to display a video game that can be played with a game controller. These may be home consoles, which are generally placed in a permanent location connected to a t ...
and
computers
A computer is a machine that can be programmed to carry out sequences of arithmetic or logical operations (computation) automatically. Modern digital electronic computers can perform generic sets of operations known as programs. These programs ...
).
By mid-1997, up to 75% of the factories functioning before the war had returned to production, at an average of 75% of their capacity. Investments in the industrial sector continue to mostly be limited to the repair of existing industrial plants. Retail trade, devastated by the war, has revived quickly, with many new small businesses established by Rwandan returnees from
Uganda
}), is a landlocked country in East Africa
East Africa, Eastern Africa, or East of Africa, is the eastern subregion of the African continent. In the United Nations Statistics Division scheme of geographic regions, 10-11-(16*) territor ...
,
Burundi
Burundi (, ), officially the Republic of Burundi ( rn, Repuburika y’Uburundi ; Swahili language, Swahili: ''Jamuhuri ya Burundi''; French language, French: ''République du Burundi'' ), is a landlocked country in the Great Rift Valley at the ...
, and the
Democratic Republic of the Congo
The Democratic Republic of the Congo (french: République démocratique du Congo (RDC), colloquially "La RDC" ), informally Congo-Kinshasa, DR Congo, the DRC, the DROC, or the Congo, and formerly and also colloquially Zaire, is a country in ...
.
Industry received little external assistance from the end of the war through 1995. Beginning in 1996–97, the government has become increasingly active in helping the industrial sector to restore production through technical and financial assistance, including loan guarantees, economic liberalization, and the privatization of state-owned enterprises. In early 1998, the government set up a one-stop investment promotion center and implemented a new investment code that created an enabling environment for foreign and local investors. An autonomous revenue authority also has begun operation, improving collections and accountability.
Cassiterite production peaked at 1,000 tonnes in 1990, but was under 700 tonnes in 2000. Recorded coltan production has soared from 147 tonnes in 1999 to 1,300 tonnes in 2001, and coltan was the country's biggest single export earner in 2001. At least part of the increase in production is because of new mines opening up in Rwanda. However it is true, as has frequently been observed, that the increase is also because of the fraudulent re-export of Congolese coltan. In addition to the well-publicised involvement in this trade of the Rwandan Defence Force (RDF), another important factor in the coltan re-export is that international dealers are under pressure not to buy from the DRC, thus increasing the incentive for DRC coltan to be re-exported as Rwanda's. Rwanda is also alleged to be trading in fraudulently exported gold and diamonds from the DRC.
Current Economy and Economic Prospects
The country entered a high period of
economic growth
Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Statisticians conventionally measure such growth as the percent rate of ...
in 2006, and the following year managed to register 8% economic growth, a record it has sustained since, turning it into one of the fastest-growing economies in Africa. This sustained economic growth has succeeded in reducing
poverty
Poverty is the state of having few material possessions or little income. Poverty can have diverse social, economic, and political causes and effects. When evaluating poverty in ...
and also reducing
fertility rates
The total fertility rate (TFR) of a population is the average number of children that would be born to a woman over her lifetime if:
# she were to experience the exact current age-specific fertility rates (ASFRs) through her lifetime
# she were t ...
, with growth between 2006 and 2011 reducing the percentage of the country's population living in poverty from 57% to 45%.The country's infrastructure has also grown rapidly, with connections to electricity going from 91,000 in 2006 to 215,000 in 2011. Rwanda wants to achieve
Middle Income Country
The category of newly industrialized country (NIC), newly industrialized economy (NIE) or middle income country is a socioeconomic classification applied to several countries around the world by political scientists and economists. They represent ...
status by 2035 and
High-Income Country
A developed country (or industrialized country, high-income country, more economically developed country (MEDC), advanced country) is a sovereign state that has a high quality of life, developed economy and advanced technological infrastruct ...
status by 2050 through its ongoing transformation into Africa's leading hub for artificial intelligence and digital technology.
Existing foreign investment is concentrated in commercial establishments, mining, tea, coffee, and tourism. Minimum wage and social security regulations are in force, and the four prewar independent trade unions are back in operation. The largest union,
CESTRAR, was created as an organ of the government but became fully independent with the political reforms introduced by the 1991 constitution. As security in Rwanda improves, the country's nascent tourism sector shows great potential to expand as a source of foreign exchange.
In 2016, Rwanda was ranked 42nd and second best country in Africa to do business in the Mara Foundation-The Ashish J Thakkar Global Entrepreneurship Index report.
However, a recent research in the UK-based political science journal,
Review of African Political Economy
The ''Review of African Political Economy'' is a peer-reviewed academic journal covering African political economy. It was founded with the help of Lionel Cliffe and is published quarterly by Taylor & Francis since 1974. It focuses in particular ...
, indicates that economic growth may be slower than what official figures suggest. Researchers stated that average consumption per household closely followed growth in GDP per capita from 2000 to 2005, but diverged afterwards when average consumption per household stagnated despite huge improvements in GDP per capita from 2005 to 2013.
Some international researchers have also questioned the Rwandan government's methodology and suggested the figures showing huge growths in GDP might be inflated.
Agriculture and Primary resources
![MarabaCoffeeDryingRacks](https://upload.wikimedia.org/wikipedia/commons/d/df/MarabaCoffeeDryingRacks.jpg)
Rwanda produced in 2019:
* 2.6 million tons of
banana
A banana is an elongated, edible fruit – botanically a berry – produced by several kinds of large herbaceous flowering plants in the genus ''Musa''. In some countries, bananas used for cooking may be called "plantains", distinguis ...
;
* 1.2 million tonnes of
sweet potato
The sweet potato or sweetpotato (''Ipomoea batatas'') is a dicotyledonous plant that belongs to the Convolvulus, bindweed or morning glory family (biology), family, Convolvulaceae. Its large, starchy, sweet-tasting tuberous roots are used as a r ...
;
* 1.1 million tons of
cassava
''Manihot esculenta'', common name, commonly called cassava (), manioc, or yuca (among numerous regional names), is a woody shrub of the spurge family, Euphorbiaceae, native to South America. Although a perennial plant, cassava is extensively ...
;
* 973 thousand tons of
potato
The potato is a starchy food, a tuber of the plant ''Solanum tuberosum'' and is a root vegetable native to the Americas. The plant is a perennial in the nightshade family Solanaceae.
Wild potato species can be found from the southern Unit ...
;
* 484 thousand tons of
beans
A bean is the seed of several plants in the family Fabaceae, which are used as vegetables for human or animal food. They can be cooked in many different ways, including boiling, frying, and baking, and are used in many traditional dishes th ...
;
* 421 thousand tons of
maize
Maize ( ; ''Zea mays'' subsp. ''mays'', from es, maíz after tnq, mahiz), also known as corn (North American and Australian English), is a cereal grain first domesticated by indigenous peoples in southern Mexico about 10,000 years ago. Th ...
;
* 256 thousand tons of
pumpkin
A pumpkin is a vernacular term for mature winter squash of species and varieties in the genus ''Cucurbita'' that has culinary and cultural significance but no agreed upon botanical or scientific meaning. The term ''pumpkin'' is sometimes use ...
;
* 171 thousand tons of
taro
Taro () (''Colocasia esculenta)'' is a root vegetable. It is the most widely cultivated species of several plants in the family Araceae that are used as vegetables for their corms, leaves, and petioles. Taro corms are a food staple in Africa ...
;
* 159 thousand tons of
sorghum
''Sorghum'' () is a genus of about 25 species of flowering plants in the grass family (Poaceae). Some of these species are grown as cereals for human consumption and some in pastures for animals. One species is grown for grain, while many othe ...
;
* 131 thousand tons of
rice
Rice is the seed of the grass species ''Oryza sativa'' (Asian rice) or less commonly ''Oryza glaberrima
''Oryza glaberrima'', commonly known as African rice, is one of the two domesticated rice species. It was first domesticated and grown i ...
;
* 114 thousand tons of
sugarcane
Sugarcane or sugar cane is a species of (often hybrid) tall, Perennial plant, perennial grass (in the genus ''Saccharum'', tribe Andropogoneae) that is used for sugar Sugar industry, production. The plants are 2–6 m (6–20 ft) tall with ...
;
* 105 thousand tons of
tomato
The tomato is the edible berry of the plant ''Solanum lycopersicum'', commonly known as the tomato plant. The species originated in western South America, Mexico, and Central America. The Mexican Nahuatl word gave rise to the Spanish word ...
;
* 36 thousand tons of
pineapple
The pineapple (''Ananas comosus'') is a tropical plant with an edible fruit; it is the most economically significant plant in the family Bromeliaceae. The pineapple is indigenous to South America, where it has been cultivated for many centuri ...
;
* 31 thousand tons of
tea
Tea is an aromatic beverage prepared by pouring hot or boiling water over cured or fresh leaves of '' Camellia sinensis'', an evergreen shrub native to East Asia which probably originated in the borderlands of southwestern China and northe ...
;
* 29 thousand tons of
coffee
Coffee is a drink prepared from roasted coffee beans. Darkly colored, bitter, and slightly acidic, coffee has a stimulant, stimulating effect on humans, primarily due to its caffeine content. It is the most popular hot drink in the world.
S ...
;
* 5.4 thousand tons of
tobacco
Tobacco is the common name of several plants in the genus '' Nicotiana'' of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the ...
;
In addition to other productions of other agricultural products. Products such as bananas, pineapples, tea, coffee, and tobacco are high-value, export-oriented products.
In 2019 agriculture accounted for 29% of the economy of Rwanda.
Rwanda has long relied on coffee as a cash crop. The crash of coffee prices in 1989 caused a great decrease in purchasing power, and increased domestic tensions.
Rwanda's economy suffered heavily during the 1994 Genocide, with widespread loss of life, failure to maintain the infrastructure, looting, and neglect of important cash crops. This caused a large drop in GDP and destroyed the country's ability to attract private and external investment. The economy has since strengthened, with per-capita GDP (
PPP) estimated at
$2,225 in 2018, compared with $416 in 1994.
![Tea field workers in rwanda](https://upload.wikimedia.org/wikipedia/commons/4/44/Tea_field_workers_in_rwanda.jpg)
Major export markets include China, Germany, and the United States. The economy is managed by the central
National Bank of Rwanda
The National Bank of Rwanda ( rw, Banki Nkuru Y'u Rwanda, french: Banque Nationale du Rwanda) is the central bank of Rwanda. The bank was founded in 1964. The current governor of the bank is John Rwangombwa.
Location
It is quartered at the N ...
and the currency is the
Rwandan franc
The Rwandan franc (sign: FRw,National Bank of Rwanda.Currency characteristics" Accessed 2017-02-20. and possibly RF or R₣; ISO 4217: RWF) is the currency of Rwanda. It is subdivided into 100 centimes.National Bank of Rwanda.Legal tender." Acces ...
; in June 2010, the exchange rate was 588 francs to the United States dollar. Rwanda joined the East African Community in 2007 and there were plans for a common
East African shilling, which it had been hoped would be in place by 2015, but have not yet reached fruition (2020).
Rwanda is a country of few natural resources, and the economy is based mostly on
subsistence agriculture
Subsistence agriculture occurs when farmers grow food crops to meet the needs of themselves and their families on smallholdings. Subsistence agriculturalists target farm output for survival and for mostly local requirements, with little or no su ...
by local farmers using simple tools. An estimated 90% of the working population farms, and agriculture comprised an estimated 42.0% of GDP in 2010. Since the mid-1980s, farm sizes and food production have been decreasing, due in part to the resettlement of displaced people. Despite Rwanda's fertile ecosystem, food production often does not keep pace with population growth, and food imports are required.
Crops grown in the country include coffee, tea,
pyrethrum
''Pyrethrum'' was a genus of several Old World plants now classified as ''Chrysanthemum'' or ''Tanacetum'' which are cultivated as ornamentals for their showy flower heads. Pyrethrum continues to be used as a common name for plants formerly inclu ...
, bananas, beans,
sorghum
''Sorghum'' () is a genus of about 25 species of flowering plants in the grass family (Poaceae). Some of these species are grown as cereals for human consumption and some in pastures for animals. One species is grown for grain, while many othe ...
and potatoes. Coffee and tea are the major cash crops for export, with the high altitudes, steep slopes and volcanic soils providing favourable conditions. Reliance on agricultural exports makes Rwanda vulnerable to shifts in their prices.
Agricultural animals raised in Rwanda include cows, goats, sheep, pigs, chicken, and rabbits, with geographical variation in the numbers of each. Production systems are mostly traditional, although there are a few intensive dairy farms around Kigali. Shortages of land and water, insufficient and poor-quality feed, and regular disease epidemics with insufficient veterinary services are major constraints that restrict output. A "One Cow per Poor Family Programme" (Girinka), implemented in 2006, distributed 341,065 cows in 2018.
Fishing takes place on the country's lakes, but stocks are very depleted, and live fish are being imported in an attempt to revive the industry.
Rwanda's mining industry is an important contributor, generating US$93 million in 2008. Minerals mined include
cassiterite
Cassiterite is a tin oxide mineral, SnO2. It is generally opaque, but it is translucent in thin crystals. Its luster and multiple crystal faces produce a desirable gem. Cassiterite was the chief tin ore throughout ancient history and remains t ...
,
wolframite
Wolframite is an iron, manganese, and tungstate mineral with a chemical formula of that is the intermediate between ferberite ( rich) and hübnerite ( rich). Along with scheelite, the wolframite series are the most important tungsten ore minerals ...
,
sapphire
Sapphire is a precious gemstone, a variety of the mineral corundum, consisting of aluminium oxide () with trace amounts of elements such as iron, titanium, chromium, vanadium, or magnesium. The name sapphire is derived via the Latin "sapphir ...
s, gold, and
coltan
Coltan (short for columbite–tantalites and known industrially as tantalite) is a dull black metallic ore from which the elements niobium and tantalum are extracted. The niobium-dominant mineral in coltan is columbite (after niobium's original A ...
, which is used in the manufacture of electronic and communication devices such as mobile phones.
Production of
methane
Methane ( , ) is a chemical compound with the chemical formula (one carbon atom bonded to four hydrogen atoms). It is a group-14 hydride, the simplest alkane, and the main constituent of natural gas. The relative abundance of methane on Eart ...
from
Lake Kivu
Lake Kivu is one of the African Great Lakes. It lies on the border between the Democratic Republic of the Congo and Rwanda, and is in the Albertine Rift, the western branch of the East African Rift. Lake Kivu empties into the Ruzizi River, which ...
began in 1983, but to date has been used only by the
Bralirwa Brewery
Bralirwa, also known by its French name Brasseries et Limonaderies du Rwanda, is the largest brewer and soft beverage company in Rwanda. Its shares of stock are listed on the Rwanda Stock Exchange, where they trade under the symbol:BLRW. As of ...
.
In 2019, the country was the 7th largest world producer of
tungsten
Tungsten, or wolfram, is a chemical element with the symbol W and atomic number 74. Tungsten is a rare metal found naturally on Earth almost exclusively as compounds with other elements. It was identified as a new element in 1781 and first isolat ...
and the 12th largest world producer of
tin
Tin is a chemical element with the symbol Sn (from la, stannum) and atomic number 50. Tin is a silvery-coloured metal.
Tin is soft enough to be cut with little force and a bar of tin can be bent by hand with little effort. When bent, t ...
.
Energy and electrification
Rwanda has made tremendous strides in improving electrification in the 21st century. A great number of new areas has become electrified through an expansion of infrastructure.
Depletion of the forests will eventually pressure Rwandans to turn to fuel sources other than
charcoal
Charcoal is a lightweight black carbon residue produced by strongly heating wood (or other animal and plant materials) in minimal oxygen to remove all water and volatile constituents. In the traditional version of this pyrolysis process, cal ...
for cooking and heating. Given the abundance of mountain streams and lakes, the potential for
hydroelectric power
Hydroelectricity, or hydroelectric power, is electricity generated from hydropower (water power). Hydropower supplies one sixth of the world's electricity, almost 4500 TWh in 2020, which is more than all other renewable sources combined and ...
is substantial. Rwanda is exploiting these natural resources through joint hydroelectric projects with Burundi and the Democratic Republic of the Congo.
Industry
The industrial sector is growing, contributing 16% of GDP in 2012.
Rwanda's manufacturing sector is dominated by the production of import substitutes for internal consumption. The larger enterprises produce beer, soft drinks, cigarettes, hoes, wheelbarrows, soap, mattresses, plastic pipe, roofing materials, and bottled water. Other products manufactured include agricultural products, small-scale beverages, soap, furniture, shoes, cement, plastic goods, textiles and cigarettes.
Tourism and Services
![Gorilla mother and baby at Volcans National Park](https://upload.wikimedia.org/wikipedia/commons/5/5f/Gorilla_mother_and_baby_at_Volcans_National_Park.jpg)
Rwanda's
service sector
The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors in the three-sector model (also known as the economic cycle). The others are the primary sector (raw materials) and the second ...
suffered during the
late-2000s recession
The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At t ...
as banks reduced lending and foreign aid projects and investment were reduced. The sector rebounded in 2010, becoming the country's largest sector by economic output and contributing 43.6% of the country's GDP. Key tertiary contributors include banking and finance, wholesale and retail trade, hotels and restaurants, transport, storage, communication, insurance, real estate, business services and public administration including education and health.
Tourism
Tourism is travel for pleasure or business; also the theory and practice of touring (disambiguation), touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tour (disambiguation), tours. Th ...
is one of the fastest-growing economic resources and became the country's leading foreign exchange earner in 2011. In spite of the genocide's legacy, the country is increasingly perceived internationally as a safe destination; The Directorate of Immigration and Emigration recorded 405,801 people visiting the country between January and June 2011; 16% of these arrived from outside Africa. Revenue from tourism was US$115,600,000 between January and June 2011; holidaymakers contributed 43% of this revenue, despite being only 9% of the numbers.
Rwanda is one of only two countries in which
mountain gorilla
The mountain gorilla (''Gorilla beringei beringei'') is one of the two subspecies of the eastern gorilla. It is listed as endangered by the IUCN as of 2018.
There are two populations: One is found in the Virunga volcanic mountains of Central/ ...
s can be visited safely; gorilla tracking, in the Volcanoes National Park, attracts thousands of visitors per year, who are prepared to pay high prices for permits. Other attractions include: Nyungwe Forest, home to chimpanzees, Ruwenzori colobus and other primates, the resorts of Lake Kivu, and Akagera, a small
savanna reserve in the east of the country.
Rwanda's tourism is centred on the attractions of
Volcanoes National Park
Volcanoes National Park is a national park in northwestern Rwanda. It covers of rainforest and encompasses five of the eight volcanoes in the Virunga Mountains, namely Mount Karisimbi, Karisimbi, Mount Bisoke, Bisoke, Mount Muhabura, Muhabura, M ...
(PNV) with its six
volcano
A volcano is a rupture in the crust of a planetary-mass object, such as Earth, that allows hot lava, volcanic ash, and gases to escape from a magma chamber below the surface.
On Earth, volcanoes are most often found where tectonic plates are ...
es and the protected population of
mountain gorilla
The mountain gorilla (''Gorilla beringei beringei'') is one of the two subspecies of the eastern gorilla. It is listed as endangered by the IUCN as of 2018.
There are two populations: One is found in the Virunga volcanic mountains of Central/ ...
s made famous by
Dian Fossey
Dian Fossey (, January 16, 1932 – ) was an American primatologist and conservationist known for undertaking an extensive study of mountain gorilla groups from 1966 until her murder in 1985. She studied them daily in the mountain forests of ...
. Additionally, tourism is drawn to central Africa's largest protected wetland
Akagera National Park
Akagera National Park is a protected area in eastern Rwanda covering along the international border with Tanzania. It was founded in 1934 and includes savannah, montane and swamp habitats. The park is named for the Kagera River which flows along ...
, with its populations of
hippopotami
The hippopotamus ( ; : hippopotamuses or hippopotami; ''Hippopotamus amphibius''), also called the hippo, common hippopotamus, or river hippopotamus, is a large semiaquatic mammal native to sub-Saharan Africa. It is one of only two extan ...
,
cape buffalo,
zebra
Zebras (, ) (subgenus ''Hippotigris'') are African equines with distinctive black-and-white striped coats. There are three living species: the Grévy's zebra (''Equus grevyi''), plains zebra (''E. quagga''), and the mountain zebra (''E. zeb ...
s,
elephant
Elephants are the largest existing land animals. Three living species are currently recognised: the African bush elephant, the African forest elephant, and the Asian elephant. They are the only surviving members of the family Elephantidae an ...
s,
elands, and other big game animals.
Birdwatching
Birdwatching, or birding, is the observing of birds, either as a recreational activity or as a form of citizen science. A birdwatcher may observe by using their naked eye, by using a visual enhancement device like binoculars or a telescope, b ...
-related tourism has a potential to develop as well, especially in
Nyungwe National Park
The Nyungwe Forest () is located in southwestern Rwanda, on the border with Burundi, where it is contiguous with the Kibira National Park to the south, and Lake Kivu and the Democratic Republic of the Congo to the west. The Nyungwe rainforest ...
, among the largest uncut forest reserves in Africa. Nyungwe National Park is home to over 300 species of birds. And a vast variety of wild life as well.
Several memorial sites associated with the
Rwandan genocide
The Rwandan genocide occurred between 7 April and 15 July 1994 during the Rwandan Civil War. During this period of around 100 days, members of the Tutsi minority ethnic group, as well as some moderate Hutu and Twa, were killed by armed Hutu ...
have begun to generate significant
dark tourism
Dark tourism (also Thana tourism (as in Thanatos), black tourism, morbid tourism, or grief tourism) has been defined as tourism involving travel to places historically associated with death and tragedy (event), tragedy. More recently, it was sugg ...
. For example, the Gisozi Genocide Memorial Site in the
Gasabo District
Gasabo is a district, (''akarere'') in Kigali city, the capital of Rwanda. The headquarter of Gasabo is located in Remera Sector. The district also includes large areas of the city itself, including Kacyiru, Kimironko, Remera, Nyarutarama and Ki ...
of Kigali—the burial place of approximately 300,000 victims of the genocide—has a related genocide exhibition area and library and has plans to develop a teaching centre on the history of the genocide. Another major genocide-related memorial centre attracting tourists is the Murambi Genocide Memorial Site housed in the former
Murambi Technical School where 45,000 people were murdered and 850 skeletons and mummified remains of the victims are on display.
Two other major memorial sites associated with the genocide are in
Kicukiro District
Kicukiro District is one of the three Districts which constitute the City of Kigali and is situated in the South-East of the City of Kigali. Is a district (''akarere'') located in Kigali Province, Rwanda. Kicukiro is home to a thriving market, a ...
: Rebero Genocide Memorial Site where 14,400 victims are buried and the Nyanza-Kicukiro Genocide Memorial Site where 5,000 victims were killed after
Belgian
Belgian may refer to:
* Something of, or related to, Belgium
* Belgians, people from Belgium or of Belgian descent
* Languages of Belgium, languages spoken in Belgium, such as Dutch, French, and German
*Ancient Belgian language, an extinct language ...
soldiers who serving in the
United Nations
The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be ...
peacekeeping forces abandoned them. In
Kibungo Province, the site of the
Nyarubuye Massacre
The Nyarubuye massacre is the name which is given to the killing of an estimated 20,000 civilians on April 15, 1994 at the Nyarubuye Roman Catholic Church in Kibungo Province, east of the Rwandan capital Kigali. The victims were Tutsis. Men, wom ...
is home to the Nyarubuye Genocide Memorial Site where an estimated 20,000 victims were killed after seeking refuge in the
Roman Catholic
Roman or Romans most often refers to:
*Rome, the capital city of Italy
*Ancient Rome, Roman civilization from 8th century BC to 5th century AD
*Roman people, the people of ancient Rome
*'' Epistle to the Romans'', shortened to ''Romans'', a lette ...
church and homes of the nuns and priest there.
Macro-Economic
The following table shows the main economic indicators in 1980–2017.
See also
*
Rwanda
Rwanda (; rw, u Rwanda ), officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, where the African Great Lakes region and Southeast Africa converge. Located a few degrees south of the Equator ...
*
Energy in Rwanda Energy use in Rwanda is undergoing rapid change at the beginning of the 21st century.
Electricity Network
The extent of grid electricity is limited and mainly concentrated near Kigali. Most of the country uses firewood as its main energy source.
...
*
Telecommunications in Rwanda
Telecommunications in Rwanda include radio, television, fixed and mobile telephones, and the Internet.
Regulation
Two government-appointed regulatory bodies, the Rwanda Information Technology Authority under the Rwanda Development Board, and the ...
*
Transport in Rwanda
The transport system in Rwanda centres primarily around the road network. Paved roads lie between the capital, Kigali, and most other major cities and towns in the country. Rwanda is also linked by road with other countries in the African Great Lak ...
*
United Nations Economic Commission for Africa
The United Nations Economic Commission for Africa (UNECA or ECA; french: link=no, Commission économique pour l'Afrique, CEA) was established in 1958 by the United Nations Economic and Social Council to encourage economic cooperation among its ...
General:
*
Economy of Africa
The economy of Africa consists of the trade, industry, agriculture, and human resources of the continent. , approximately 1.3 billion people were living in 54 countries in Africa. Africa is a resource-rich continent. Recent growth has been d ...
References
External links
*
Pulitzer Center on Crisis ReportingRwanda Human Conflict and Environmental Consequences (Video)
Rwanda latest trade data on ITC Trade MapWorld Bank Summary Trade Statistics Rwanda*
{{World Trade Organization
Rwanda
Rwanda (; rw, u Rwanda ), officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, where the African Great Lakes region and Southeast Africa converge. Located a few degrees south of the Equator ...
Rwanda
Rwanda (; rw, u Rwanda ), officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, where the African Great Lakes region and Southeast Africa converge. Located a few degrees south of the Equator ...