Population (Millions)

12.95

2020

GDP (Billion)

$10.33

2020

GDP Growth

-3.4%

2020

Inflation

-0.4%

2021

country brief

Rwanda

Country Context &
Overview.

Rwanda has made great strides in social and economic development over the past two decades. The country has climbed international rankings on governance, anti-corruption, gender, competitiveness and doing business. Over the past 5 years, GDP grew on average 7% per year and exports of goods and services increased their share of GDP from 11% to 17%.

As a land locked country, however, Rwanda faces economic challenges including a high trade deficit, high cost of transport and energy and a large population dependent on subsistence agriculture. To address these challenges, the Government of Rwanda’s vision 2020 sets out a strategy for inclusive growth by transforming Rwanda through increased trade, export diversification and deeper regional integration.

Innovation in TMA Strategy 2

Rwanda faces structural economic challenges, which inhibit competitiveness and export capability. To address this challenge, Rwanda is expected to improve production in agribusiness; tap into export markets, and support reduction in the prices of goods by an overall growth in trade. There is an opportunity to shift from a low-income, agrarian society to a knowledge- based, service-oriented economy with a well-developed manufacturing sector.

In Strategy 2, TMA will continue its support to the public sector through reforms focusing on adoption of efficient procedures and systems. It will continue work with business and upscale its transformational work with women. Infrastructure development will also continue to improve Rwanda’s connectivity with its key trading partners in East Africa and beyond.

OUTCOME 1: REDUCING BARRIERS TO TRADE

Average time to transport goods along key routes and nodes in the EATN

DETAILS | EXPECTED RESULTS BY 2023

Cross-border Market in Rusizi and Rubavu, OSBP in Rusizi II, Harbour facilities to enhance trade on Lake Kivu Trade Reduction in average time to transport goods along key routes and nodes in the EATN; Reduction in transport costs along key routes and nodes in the EATN

Improved trading standards and reduced non-tariff barriers

DETAILS | EXPECTED RESULTS BY 2023

Quality and standards, Sanitary and PhytoSanitary (SPS) measures, Elimination of NTBs Number of high priority NTBs removed as a proportion of high priority NTBs; Proportion of high priority standards mutually recognized, adopted, and implemented; Reduction in standards testing times in targeted countries

Improved and more transparent trade processes and systems

DETAILS | EXPECTED RESULTS BY 2023

Trade Community Information Systems (TCIS), Trade Single Windows & Management Information Systems, Customs Efficiency Enhancements Reduction in cargo clearance times; Reduction in average process time for key non-customs trade processes; Increased predictability in cargo clearance and transit time; Improved perception of traders and logistics operators of the transparency of trading processes and systems;

Improved regulatory environment for trade

DETAILS | EXPECTED RESULTS BY 2023

Regional trade integration – policy support, Trade Policy Support Improvement in partner states’ legislative alignment with EAC commitments; Proportion of high priority regional commitments implemented; Number of national and regional policies implemented, and agreements reached that facilitate trade or create access to markets outside the EAC

OUTCOME 2: ENHANCING PRIVATE SECTOR MARKETS FOR TRADE

Better private sector-led advocacy for trade

DETAILS | EXPECTED RESULTS BY 2023

public-private dialogue, sector-specific advocacy, cross-cutting themes, institutional capacity development Number of policies implemented as a result of private sector-led advocacy on high priority trade issues

Increased efficiency in private sector logistic service

DETAILS | EXPECTED RESULTS BY 2023

Development and operationalization of logistics hub pilot and local transports, wholesale market in Kigali, capacity development for logistics sector, logistics for cross-border trade Increased uptake of (TMA targeted) third-party logistics service provision; Increase in the number of innovative logistics solutions provided on the market

Increased export capacity of Rwanda businesses

DETAILS | EXPECTED RESULTS BY 2023

Export growth for export-ready businesses, market system upgrading along growth hubs and high potential sectors, market systems support to increase availability of ICT, standards and exports advisers Increase in export revenue at firm level on TMA supported interventions; Increase in investment in targeted areas and sectors; Stronger linkages developed between firms and suppliers across the priority sectors

Greater inclusion of women and small businesses in trade

DETAILS | EXPECTED RESULTS BY 2023

Creating a gender-responsive trading environment, capacity building, ICT and Innovation Increased value of trade by women traders and small businesses; Increased number of women and small businesses trading; Improved opportunities to engage in trade for women and small businesses