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Rwanda

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									RWANDA
Capital: Kigali
Population: 8,700,000 (2002)
Area: 26,338 Km²
Currency: 1 Rwandan franc = 100 centimes
Language: French, English, Kinyarwanda

Economy
A liberal economic policy is being pursued in the aftermath of the political violence that
swept the country during 1994. Growth in Rwanda has been led by agriculture (41.6% of
GDP) and construction. Agriculture has the highest foreign exchange earnings and
employs the largest sector of the working population, of, which, 90 percent are mostly
involved in subsistence farming. Coffee and tea are grown for export, while cereals,
vegetables and rice are grown as food crops. Tobacco is also produced.
There is also limited chemical and pharmaceutical manufacturing and a tiny textiles and
clothing sub-sector. The oil industry in Rwanda is dependant on the importation of all
petroleum products from the Mombassa refinery in Kenya.
Rwanda began to reform its economy in 1995. The reforms focused on the exchange and
trade regime, the Privatisation of state enterprises, the reform of public administration,
the budget and financial management as well as private sector development. The
country's economy continues to be heavily dependent on foreign aid, of, which, an
estimate of 51 percent made up the government's budget for 2004.
GDP in 2004: US$10.4 billion, made up of agriculture 41.6%, industry 21.8% and
services 36.6%. FDI in 2001: 4.6 million.
Investment
The present government of Rwanda emphasizes the promotion of investment growth in
the economy and has made adequate resources available to meet acceptable criterion.
However, private and public investments remain very low due to many factors, such as,
low levels of purchasing power, power shortages and funding resources being poorly
absorbed into investment opportunity development.
Trade
Rwanda is a member of three regional trade organizations: the Common Market for
Eastern and Southern Africa (COMESA), the Communauté économique des Etats de
l’Afrique centrale (CEEAC) and the Communauté économique des pays des Grands Lacs
(CEPGL). CEPGL consists of Rwanda, Burundi and the DRC and has never functioned
effectively, even though informal trade between the three countries is resilient. Rwanda
has applied to join the East African Community (EAC).
As of 2005, Rwanda's major export partners have been Indonesia, Germany and China;
and the country's import partners have been Kenya, Uganda, Germany and Belgium.
The energy shortage and instability in neighboring states may slow growth in 2006, while
the lack of adequate transportation linkages to other countries continues to handicap
export growth. This creates an opportunity worth exploiting for the Private Sector in East
Africa
Rwanda at a Glance
Official Name            Rwandese Republic
Head of state            President Paul KA GAM E, head of govern ment: Prime M inister Bernard
                         MAKUZA
Capital                  Kigali
Area                     26,338 Sq. Km.

Population               8.44 million (Ju ly 2005 est.)
Languages Spoken         Kinyarwanda, French, English.
                         Kiswahili used in commercial centers
Major Cities / Towns     Kigali, Ruhengeri and Gisenyi

Location                 Land-locked country, bounded by Tanzania in the East, Uganda in the North,
                         Zaire in the West and Burundi in the South
Climate                  Highland tropical climate. The wet season is fro m October to December and
                         March to May. Temperatures range fro m 19.4?C in January to 21.1?C in July.

Currency                 Rwandan franc (RWF)
Gross Domestic Product   US$10.43 billion (2004 est.)

Annual Growth of GDP     5.2% (2005 est.)

GDP by Orig in           Agriculture: 41.1%, industry: 21.2%, services: 37.7% (2004 est.)
GDP per cap ita          US $ 1,500 (2005 est.)
Inflat ion               7% (2004 est.)

Major Crops              coffee, tea, pyrethru m (insecticide made fro m chrysanthemu ms), bananas,
                         beans, sorghum, potatoes; livestock
Natural / M inerals      gold, cassiterite (tin ore), wolframite (tungsten ore), methane, hydropower,
Resources                arable land

Major Industries         cement, agricultural products, small-scale beverages, soap, furniture, shoes,
                         plastic goods, textiles, cigarettes
Industrial p roduction   7% (2001 est.)

Industrial p roduction   8.7% (1998 est.)
growth rate
Foreign trade: Export     $69.78 million f.o.b. (2004 est.)
               Import    $260 million f.o.b. (2004 est.)
Principal Exports        coffee, tea, h ides, tin ore
Principal Imports        foodstuffs, machinery and equip ment, steel, petroleu m products, cemen t and
                         construction material
Major Expo rt Partners   Indonesia 38%, Germany 4.4%, China 3.8% (2003)

Major Impo rt Partners   Kenya 24%, Germany 7.7%, Belg iu m 6.6%, France 5.1% (2003)

External debts           $1.3 billion (2000 est.)
Reserves of foreign      $210.9 million (2004 est.)
exchange & gold
Membership               UN, OAU and is an ACP state of the EU, ECCA S, CCPGS, COM ESA and
                         applied to join EA C & SADC
BURUNDI
Capital: Bujumbura
Population: 7.3 million (UN, 2005)
Area: 27,816 sq km
Currency: 1 Burundi franc = 100 centimes
Language: Kirundi (official), French (official), Swahili
Major religions: Christianity, indigenous beliefs
Life expectancy: 42 years (men), 44 years (women) (UN)
Main exports: coffee, tea, sugar, cotton, hides
GNI per capita: US $100 (World Bank, 2006)

Background
The Tutsi minority, 14% of the population, dominates the government and the coffee
trade at the expense of the Hutu majority, 85% of the population. An ethnic-based war
that lasted for over a decade resulted in more than 200,000 deaths, forced more than
48,000 refugees into Tanzania, and displaced 140,000 others internally.
An internationally brokered power-sharing agreement between the Tutsi-dominated
government and the Hutu rebels in 2003 paved the way for a transition process that led to
an integrated defense force, established a new constitution in 2005, and elected a majority
Hutu government in 2005. The new government, led by President Pierre Nkurunziza,
faces many challenges, particularly from the country's last rebel group who remains
outside of the peace process and continue attacks in the western provinces of Burundi.
Recently, the vice-president resigned while the peace negotiations are going on in Dar es
Salaam, the implication of this is not yet known.
Economy:
Burundi is a landlocked, resource-poor country with an underdeveloped manufacturing
sector. The economy is predominantly agricultural with more than 90% of the population
dependent on subsistence agriculture. Economic growth depends on coffee and tea
exports to Europe, which account for 90% of foreign exchange earnings.
Trade
Burundi is a member of three regional trade organizations: the Common Market for
Eastern and Southern Africa (COMESA), the Communauté économique des Etats de
l’Afrique centrale (CEEAC) and the Communauté économique des pays des Grands Lacs
(CEPGL). CEPGL consists of Rwanda, Burundi and the DRC and has never functioned
effectively, even though informal trade between the three countries is resilient. Rwanda
has applied to join the East African Community (EAC).

Traditionally, Belgium has been Burundi’s main source of imported goods, but the
rankings of its main trading partners change frequently and in 2000 France was the main
supplier. Currently, Kenya is a large exporter to the Burundian market.

War, instability and the imposition of sanctions have resulted in an increasing portion of
external trade being unrecorded. Therefore, total cross-border trade is larger than
indicated by official statistics. However, these same factors have also er oded Burundi’s
former status as a significant exporter and re-exporter of manufactured goods in the
region. If peace returns, Burundi could regain some of this trade particularly for the
eastern Congo, given its trade links through Lake Tanganyika and the good road network.

Burundi at a Glance
Official name           Republic of Burundi
Location                A francophone country in central Africa bordered by Rwanda in
                        the North, Zaire in the East and Tanzania in the West.
National day            1 July
Capital                 Bujumbura
Area                    27834 sqm
Pupulation              6.09 million (84% Hutu, 13% Tutsii) (1995)
Religions               Predominantly Christianity (mainly Catholic)
Languages               French and Kirundi (both official) and Swahili (Kishwahili is also
                        used in commercial circles.
GDP                     US $ 5.654 billion (2005 est.)
GDP per capita          US $ 700 (2005 est.)
GDP growth              1.1% (2005 est.)
GDP sector              agriculture: 46.5 % , industry: 20.3 %, services: 33.4 % (2005
composition             est.)

Inflation rate          12% (2002 est.)
Natural Resources       Nickel, Uranium, Rare Earth Oxides, Peat, Cobalt, Copper,
                        Platinum (Not Yet Exploited), Vanadium, Arable Land,
                        Hydropower
Foreign Trade:
  Imports               US $200 million f.o.b. (2002 est.)
  Exports               US $ 52 million f.o.b. (2005 est.)
  Main Exports          coffee, tea, sugar, cotton, hides
Main Export partners    Germany 26.2%, Belgium 11.4%, Netherlands 8.7%, US 4.9%,
                        Pakistan 4.5% (2005)
  Main imports          capital goods, petroleum products, foodstuffs.
Main import             Kenya 13.5%, Tanzania 11%, Belgium 10.4%, Italy 8.8%, Uganda
partners                5.5%, France 5.4%, China 5%, Germany 4.6% (2005)
Per capita income       US $ 210 (1992)
Industries              light consumer goods such as blankets, shoes, soap; assembly of
                        imported components; public works construction; food
                        processing
Agriculture             coffee, cotton, tea, corn, sorghum, sweet potatoes, bananas,
                        manioc (tapioca); beef, milk, hides
Debts External          US$1.14 billion (2001
Foreign debts           US$ 530 million
Membership              UN, Non-Aligned Movement, OAU, World Bank, IMF, GATT, ADB,
                          ECA, BADEA, Kagera River Basin Organisation, PTA and
                          Economic Community of Great Lakes Countries (CEPGL),
                          COMESA



Comparative Economic Indicators, 2002

                                       Rwanda Uganda Tanzania South Africa Burundi

   GDP (US$ bn)                        1.7     5.9     9.1     104.6       0.7

   GDP per head (US$)                  201     240     256     2,324       100

   Consumer price inflation (av;
   %)                            2.0           -0.3    4.6     9.9         8.0

   Current-account balance (US$
   m)                           -141           -547    -606    255         -50

   Merchandise exports fob (US$
   m)                           68             458     870     31,775      26

   Merchandise       imports     fob
   (US$ m)                             253     1,140   1,671   26,563      132
Source: Economist Intelligence Unit.

								
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