"Positive trends as Rwanda moves into a new year"
February 4th, 2013
The State of the Nation address Rwandans heard as 2012 closed its books indicates positive economic trends. David Masengesho, 25, a Commonwealth Correspondent from Kigali in Rwanda, says President Paul Kagame reported that safety and good governance contributed to increased revenue and financial opportunity.
Job number increases, safety, peace and good governance contributed to the economic performance of Rwanda in 2012, according to a report delivered by His Excellence Paul Kagame on the last day of the year.
In the event held in Parliament, the President of the Republic profiled an image of Rwanda in various sectors including economy, ICT, education, health, and justice as of the end of 2012. This is a highlight of the economic sector.
The President recognized the progress achieved by Rwanda towards development. It is estimated that the economic growth will be 7.7 per cent for 2012. That figure is based on noteworthy growth of 13.5 per cent in service and 6 per cent in industry production for the first three quarters of the year 2012.
Some observers say the economy could however have grown more if there were no global economic crisis and conflict in the Democratic Republic of Congo. A UN expert report accused Rwanda of supporting M23 in the DRC, which resulted in a halt to budget support from some development partners. The government of Rwanda denied the report.
Financial institutions have increased in number and spread within Rwanda, so the population accessing financial services increased to 72 per cent in 2012 from 49 per cent in 2008. Credit amounted to 440 billion in 2012 compared to 309 billion in 2011.
On the trade front, the value of exports increased 26 per cent while imports increased in value by nearly 14 per cent in 2012. Yet the imports are still higher overall compared to exports, and more needs to be done to increase exports that will balance the trade figures.
Regarding investment, local and foreign investment registered an amount of $570 million in the first three quarters of 2012 compared to $483 million for the same period in 2011.
New roads have been constructed in Rwanda in the past year, and others have been repaired. Water and electricity access has increased, even though there is more to be done to give every Rwandan access to those services. The mining sector has contributed significantly in the economic growth of the country as it realized revenue of almost $128 million in 2012. More production is expected in future. On the tourism front, as of October 2012 tourism revenue was $232 million compared to $204 million for the same period in 2011.
Rwanda’s annual population growth rate has decreased from 2.9 per cent in 2002 to 2.6 per cent in 2012, according to figures from the provisional results of the Fourth Population and Housing Census of Rwanda, conducted in August 2012.
The President noted those figures and recognized that strategies to reduce population growth rate have worked. If the trend is maintained, Rwanda’s population will not compromise the country’s economy growth and its own well being.
The President’s economic report was attended by government members and parliamentarians as Rwandans followed it live on national radio and television. The event respects Article 98 of the Rwandan Constitution, which stipulates that the President of the Republic make an annual State of the Nation address. The President used the occasion to also wish all Rwandans, residents and friends of Rwanda a Happy New Year of 2013.
Photo: © Commonwealth Secretariat
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About me:
“I work as intern/trainer at Digital Opportunity Trust Rwanda in its Reach Up! program where I deliver a livelihood, ICT and business training course to community participants. I work as research assistant at the Rwanda Development Board’s Tourism and Conservation Department.
“I am passionate about empowering communities and have been involved in different community development activities such as gender equality, women empowerment, youth advocacy, climate change and. I like networking, travelling, meeting different people of diverse backgrounds and exploring different cultures.”
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Opinions expressed in this article are those of the author and do not necessarily represent the views of the Commonwealth Youth Programme. Articles are published in a spirit of dialogue, respect and understanding. If you disagree, why not submit a response?
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