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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.