Category: Economy

  • Rwanda’s inflation rises by 11.9 percent

    Rwanda’s inflation rises by 11.9 percent

    According to the figures released today, ‘Food and non-alcoholic beverages’ saw a 22.8 percent increase on an annual basis and a marginal 0.1 percent increase on a monthly basis.

    ‘Alcoholic beverages, tobacco, and narcotics’ rose by 14.3 percent on an annual basis and dropped by 2.3 percent on a monthly basis. Transport experienced a 5.8 percent annual increase and a 1.5 percent monthly increase.

    The data also indicate that “local products” had a 13 percent increase on an annual basis and a slight 0.4 percent decrease on a monthly basis, while the prices of “imported products” went up by 8.4 percent annually and by 1.4 percent on a monthly basis.

    The prices of “fresh products” surged by 27.4 percent on an annual basis but decreased by 1.4 percent on a monthly basis.

    Among other categories, the prices of “energy” showed a 3.8 percent annual increase and a 2.2 percent decrease on a monthly basis.

    The prices of the “general Index excluding fresh products and energy” rose by 8.5 percent on an annual basis and increased by 0.7 percent on a monthly basis.

  • Rwanda generates US$362 million from mineral exports in second quarter of 2023, gold tops

    Rwanda generates US$362 million from mineral exports in second quarter of 2023, gold tops

    A standout performer throughout the quarter was undeniably gold, which took the lead as the top revenue generator.

    In April alone, Rwanda exported 1,506 kilograms of gold, bringing in an impressive US$ 97,553,111. The momentum continued into May, with 1,520 kilograms of gold worth US$ 99,039,329 being exported. However, the true highlight was June, when Rwanda exported 1,670 kilograms of gold valued at a staggering US$106,100,444. Combining these figures, the cumulative revenue from gold for the entire quarter reached an astonishing US$302,692,884.

    Cassiterite, a vital mineral in Rwanda’s mining industry, also made a substantial impact on the country’s mineral export earnings. In April, it generated 388,818 kilograms, amounting to US$ 6,210,054. Though May witnessed a slight decline in production, with 341,533 kilograms valued at US$ 5,202,418, June saw a surge in performance, as Rwanda exported 413,804 kilograms worth US$ 7,400,529. The cumulative revenue from Cassiterite for the entire quarter stood at an impressive US$18,813,001.

    Coltan, another valuable mineral, showed steady growth throughout the quarter. In April, Rwanda exported 133,828 kilograms, resulting in revenue worth US$6,296,903. The following month, May, witnessed a notable increase in both volume and value, with 198,787 kilograms worth US$ 9,587,723 exported. In June, Coltan exports reached their peak, with 254,400 kilograms worth US$ 11,930,212. The combined earnings from Coltan in the second quarter amounted to US$ 27,814,838.

    Wolfram, also known as tungsten, demonstrated a remarkable upward trajectory in export revenue. In April, Rwanda exported 120,920 kilograms, generating US$ 1,574,123. The subsequent month saw a considerable jump, with 246,920 kilograms worth US$ 3,335,391 exported. By June, Wolfram’s performance peaked, recording 267,595 kilograms worth US$ 3,579,145. Over the entire quarter, Wolfram contributed US$ 8,488,659 to Rwanda’s mineral export revenue.

    Besides these major minerals, “Other Minerals” also made a valuable contribution to Rwanda’s export revenue. In April, Rwanda exported 514,820 kilograms, generating US$ 1,233,420. May showed an increase in volume, with 1,357,729 kilograms worth US$ 1,327,094 exported. By June, the volume of “Other Minerals” reached 2,394,688 kilograms, resulting in revenue worth US$ 1,998,947. Over the entire quarter, “Other Minerals” contributed US$4,559,461 to Rwanda’s export earnings.

    Gold took the lead as the top revenue generator in the second quarter of 2023.
  • Sudanese gov’t rejects deployment of any foreign troops on its soil

    Sudanese gov’t rejects deployment of any foreign troops on its soil

    “The government of Sudan reaffirms its rejection of the deployment of foreign forces in Sudan and will consider them aggressors,” Sudan’s Foreign Ministry said in a statement.

    The ministry expressed astonishment over the statements by Ethiopian Prime Minister Abiy Ahmed Ali, who said there was a vacuum in the state leadership in Sudan.

    “The government of Sudan considers such statements as an infringement on Sudan’s sovereignty, which is unacceptable,” the Sudanese Foreign Ministry said.

    “Sudan has notified the IGAD that disrespect for member states’ opinions will make Sudan reconsider the feasibility of its membership in the organization,” it added.

    On Monday, a meeting of the IGAD quartet committee was held in Ethiopia’s capital Addis Ababa to discuss the implementation of the IGAD roadmap for peace in Sudan.

    The Sudanese army delegation boycotted the meeting in protest against Kenya’s chairmanship of the quartet committee, which also includes Ethiopia, Djibouti and South Sudan, while Sudan’s paramilitary Rapid Support Forces (RSF) welcomed the meeting.

    The Sudanese government has been calling for a change in the committee’s chairmanship since the IGAD summit in Djibouti in June, citing Kenyan President William Ruto’s lack of “impartiality” in the ongoing crisis, Sudan’s Foreign Ministry said in a statement on Monday.

    In a communique issued at the end of the one-day meeting, the IGAD quartet group urged the Sudanese warring parties to agree on an “unconditional and indefinite” cease-fire.

    It also decided to request the convening of the East Africa Standby Force (EASF) summit to consider the possible deployment of the EASF to protect civilians and ensure humanitarian access.

    At the 14th ordinary session of the IGAD Assembly of Heads of State and Government in Djibouti on June 12, an initiative was adopted, including a roadmap for resolving the Sudanese conflict.

    The roadmap outlined the establishment of a quartet committee chaired by Kenya to oversee the Sudanese issue, organize face-to-face meetings between the Sudanese warring factions, and initiate an inclusive process toward a political settlement within three weeks.

    Sudan has been witnessing deadly clashes between the army and the RSF across the country since April 15, which have so far left over 3,000 people killed and 6,000 others injured, according to the Sudanese Health Ministry.

    More than 2.8 million people in Sudan have been displaced by the violence, including 2.2 million internally displaced, according to UN estimates.

    Presidential protection guards from South Sudan's People Defence Force (SSPDF) stand in a formation at their training site. (Photo by Reuters)
  • Rwanda’s inflation increases by 13.7 percent

    Rwanda’s inflation increases by 13.7 percent

    In June 2023, Food and non-alcoholic beverages increased by 26.2 percent on annual basis and increased by 0.5 percent on monthly basis.

    ‘Alcoholic beverages, tobacco and narcotics’ increased by 22.7 percent on annual basis and increased by 1.4 percent on monthly basis. Restaurants and hotels increased by 10.7 percent on annual basis and decreased by 0.5 percent on monthly basis.

    The data from NISR also show the “local products” increased by 15.4 percent on annual change and increased by 0.3 percent on monthly basis, while prices of the “imported products” increased by 8.6 percent on annual basis and increased by 0.8 percent on monthly basis.

    The prices of the “fresh products” increased by 34.9 percent on annual change and was stable on monthly basis.

    Among others, prices of the “energy” increased by 4.9 percent on annual change and decreased by 0.3 percent on monthly basis.

    The prices of the “general Index excluding fresh products and energy” increased by 9 percent on annual change and increased by 0.6 percent on monthly basis.

  • Rwanda’s economy  grows by 9.02%

    Rwanda’s economy grows by 9.02%

    Yusuf Murangwa, the Director General of NISR, emphasized the importance of translating this 9.03% growth into improved livelihoods for Rwandans.

    He stated, “Economic growth should translate into better lives of Rwandans. Their growth signifies their hard work and increased profits. When retail businesses thrive, it reflects the overall growth of Rwandans. The 17% growth in wholesale and retail trade is especially commendable.”

    Agricultural activities witnessed a 1% growth, contributing 0.2 percentage points to the overall GDP growth. Within the agricultural sector, the production of food crops experienced a decrease of 3%, while the production of export crops increased by 25%.

    Industrial activities expanded by 9% and contributed 1.7 percentage points to GDP growth.

    Construction activities increased by 1%, mining and quarrying by 15%, and manufacturing activities by 16%. The growth in the manufacturing sector was driven by a 22% increase in food processing, a 26% increase in the manufacturing of metal products, machinery, and equipment, a 37% increase in the manufacturing of chemicals, rubber, and plastic products, an 18% increase in the manufacturing of wood and paper printing, and a 7% increase in the manufacturing of non-metallic minerals.

    The service sector experienced a robust growth of 13%. Within this sector, wholesale and retail trade increased by 17%, transport activities by 19%, hotel and restaurant industry by 42%, financial services by 12%, telecommunication services by 43%, professional and scientific services declined by 6%, public administration services increased by 7%, and education services by 13%.

    However, health services recorded a negative growth of 3% following a high growth of 22% in the same quarter of 2022.

    Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, expressed optimism about the future, stating that the figures suggest a continued reduction in market prices in the coming days.

    Yusuf Murangwa, the Director General of NISR, emphasized the importance of translating the 9.02 % growth into improved livelihoods for Rwandans.
    Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, expressed optimism  for decreased inflation.
  • National budget increases to Rwf5,030.1 billion

    National budget increases to Rwf5,030.1 billion

    The rise in spending will fuel ongoing economic recovery, support climate change mitigation as well as finance key investments in education, healthcare, ICT, agriculture and infrastructure through the National Strategy for Transformation.

    “The budget reflects Government’s economic resilience efforts in the face of global shocks. Government will continue to prioritize fiscal consolidation, ease inflation and invest in agriculture, scale up social protection coverage; improve the quality of education, create employment opportunities and support micro, small, medium and large enterprises affected by COVID-19 through the enhanced Economic Recovery Fund and Manufacture and Build to Recover Program”, Minister Ndagijimana told Parliamentarians.

    {{Key changes in the 2023/2024 Budget}}

    Estimated total resources for the fiscal year 2023/24 will amount to Rwf5,030.1 billion. The proposed budget is comprised of Rwf2,956.1 billion of domestic revenue which represents 63% of the total budget, external grants of Rwf652.1 billion representing 13% of the entire budget and external loans will amounting to Rwf1,225.1 billion or 24% of the total budget

    Total expenditure in the fiscal year 2023/24 is projected at Rwf5,030.1 billion. This figure is made up of recurrent expenditure of Rwf2,902.3 billion representing 57.7% and development expenditure of Rwf2,127.7 billion representing 42.3%.

    {{Key allocations in line with the National Strategy for Transformation}}

    Prioritization in resource allocation to various sectors has been guided by critical considerations that enhance NST1 delivery, economic recovery plan interventions, prioritization of ongoing projects, emphasis on transformation and sustainability as well as resilience to social economic shocks. In this regard, Government will allocate Rwf2.8 trillion (about 55.9% of the entire budget) to the Economic Transformation Pillar.

    These resources will scale-up agriculture productivity, create jobs, support private sector development and strengthen climate change adaptation and mitigation measures. It will also increase access to electricity and clean water, support urbanization and settlement, improve the national road network, scale up adoption of ICT, and implement agriculture de-risking and financing facility.

    {{Social Transformation}}

    Under the social transformation pillar, Government will allocate about Rwf1.5 trillion (approximately 30.4% of the entire budget). The budget share will be spent on improving quality and access to health and education, eradicate extreme poverty through scaling up of social protection programs, improve nutrition through early detection, provision of fortified foods and scaling of early childhood development facilities. The funds will also promote family and gender, sports and culture as well as disaster management through enhancing disaster preparedness, response and recovery.

    {{Transformational Governance}}

    Under the transformational governance pillar, Government plans to spend Rwf690.1 billion (about 13.7 % of the total budget). This allocation will focus on promotion of quality service delivery across public and private sectors, good governance and transformational leadership, strengthening public finance management, strengthening justice, law and order, maintaining peace and security and strengthening crime prevention as well as supporting international cooperation through strengthening economic diplomacy.

    With regard to internal or external factors that may affect Rwanda’s operating economic environment, such as drought or decrease in global commodity prices that may affect the country’s export prices, Government plans to closely monitor such developments and take necessary measures to ensure full implementation of Rwanda’s economic program.

  • Rwanda registered 45.7 percent increase in FDIs in 2021

    Rwanda registered 45.7 percent increase in FDIs in 2021

    Amidst favorable investment conditions and the strategic use of both debt and equity instruments, Rwanda witnessed an 8.5 percent rise in FDI stocks, reaching an impressive $2.9 billion. This remarkable growth in FDI encompasses various foreign investments, including FDIs, portfolio investments, and other forms of capital.

    Highlighting the source countries, Mauritius emerged as the top contributor, accounting for a significant 30.5 percent of FDI, primarily focused on the financial, ICT, manufacturing, and electricity sectors. Following closely is India, with a notable 17.9 percent investment in construction, and China with 17.6 percent invested in the tourism and manufacturing sectors.

    Major FDI stocks also originated from countries such as Kenya, South Africa, and the USA, showcasing Rwanda’s attractiveness to a wide range of global investors.

    FDIs remain the driving force behind Rwanda’s foreign private capital investments, demonstrating a remarkable recovery from $386.4 million in 2020 to a substantial $543.8 million in 2021, marking a 40.7 percent increase. The report states, “The rise in FPC inflows can be attributed to the recovery of economic activities from the poor performance induced by the COVID-19 pandemic in 2020.” Remarkably, Rwanda’s total FPC stock stood at a commendable $4.1 billion by the end of 2021.

    While acknowledging the challenges faced globally, including the Russia-Ukraine conflict and the enduring impact of the COVID-19 pandemic, the report sheds light on Rwanda’s resilience. Despite these obstacles, the country experienced a significant boost in return on investment (ROI), soaring to 11.8 percent in 2021, surpassing the global average of 9.7 percent. Rwanda’s ability to thrive in the face of adversity highlights its strong economic foundation and promising investment climate.

    In contrast to global trends, Africa’s FDI flows amounted to $83 billion in 2021, doubling the figures from 2020 and accounting for an impressive 5.2 percent of global FDI. Rwanda’s outstanding performance in this landscape speaks volumes about the country’s potential as a prime investment destination.

    In his introductory statement; Central Bank Governor, John Rwangombwa, emphasized the significance of the FPC census report for the Government of Rwanda, stating that it plays a vital role in shaping policy measures that attract FDI and enhance the business environment.

    Undeterred by economic challenges, Rwanda remains steadfast in its commitment to promote diverse FDI opportunities.

    This commitment is exemplified by programs like the Manufacture and Build to Recover initiative, which has already generated $1.2 billion worth of investments. With the launch of its second phase in March 2023, Rwanda aims to attract a staggering $2.5 billion in investments across priority sectors, including manufacturing, infrastructure, energy, agriculture, agro-processing, and ICT.

    Rwanda’s remarkable FDI growth story serves as an inspiration to the world, defying global challenges and positioning itself as an enticing investment hub. With a thriving economy and promising returns, Rwanda stands tall as an exemplar of resilience and opportunity in the international business landscape.

    The bird's-eye view of Kigali Special Economic Zone. Rwanda registered 45.7 percent increase in FDIs in 2021.
  • Xi urges Inner Mongolia to pursue green development, advance Chinese modernization

    Xi urges Inner Mongolia to pursue green development, advance Chinese modernization

    Xi, also Chinese president and chairman of the Central Military Commission, made the remarks during an inspection tour in Hohhot, the capital of the autonomous region, on Wednesday and Thursday.

    During his visit to the Zhonghuan industrial park on Wednesday afternoon, Xi said green development is the path that must be taken. The top priority of Inner Mongolia’s development lies in transforming and upgrading the traditional energy industry, vigorously developing green energy, and strengthening the country’s major energy base.

    Xi also stressed the need to carry out high-level opening up and engage in win-win cooperation with the rest of the world.

    On Thursday morning, Xi heard a work report from the Party committee and government of Inner Mongolia and spoke approvingly of their achievements.

    Inner Mongolia is the country’s important base of energy and strategic resources, its important production base of agricultural and livestock products, and a vital gateway for opening up to countries and regions north of China, Xi said.

    Inner Mongolia should improve its industrial structure based on these characteristics and strategic positioning, strengthen its distinctive industries, explore new paths of transformation and development suitable for resource-rich regions, and speed up the construction of a modern industrial system that displays its unique features and advantages, Xi said.

    The autonomous region should take an active part in the joint development of the Belt and Road Initiative as well as the China-Mongolia-Russia economic corridor, and elevate the level of opening up, Xi said.

    He also urged Inner Mongolia to boost its connectivity with the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and China’s northeastern provinces.

    On the ecology front, Inner Mongolia must consolidate its role as a vital ecological barrier in northern China, with efforts to facilitate major ecological projects, including the Beijing-Tianjin sandstorm source control project and the Three-North Shelterbelt Forest Program, and ensure tougher management of ecological red lines, according to Xi.

    More efforts should go into the conservation of natural forests as well as soil and water, the fight against desertification, and the conservation of wetlands, Xi said, also calling on the autonomous region to sustain the positive trend of expanding afforestation and curbing desertification.

    Xi stressed that the most arduous task in bringing prosperity to all the people nationwide remains in some border areas with mainly ethnic minority populations. These areas must not be left behind on the way to common prosperity, he said.

    He emphasized the significance of a people-centered approach, urging efforts to ensure and improve the people’s well-being in the course of pursuing development.

    Xi stressed the full implementation of the employment-first policy, urging targeted and effective implementation of measures and policies to ease corporate burdens and stabilize and expand employment. He also called for efforts to expand employment channels and provide more assistance for those experiencing difficulties.

    It is important to improve the multi-tiered social security system, ramp up social and medical assistance, increase support for households receiving subsistence allowances or in difficulties, and develop elderly care programs and services, said Xi.

    Xi urged efforts to consolidate and expand the achievements in poverty alleviation and forestall any large-scale relapse into poverty.

    He also stressed the importance of workplace safety, saying the utmost efforts should be made to prevent various types of major accidents.

    Xi said the Party’s work on ethnic affairs in the new era should focus on forging a strong sense of community for the Chinese nation.

    The introduction of laws, regulations, policies and measures should be conducive to strengthening the commonalities of the Chinese nation and enhancing the sense of community for the Chinese nation, he added.

    Concerning the ongoing Party education campaign, Xi called for solid efforts to improve Party conduct through the campaign, stay focused on solving problems and achieving goals, and see that follow-up rectifications are made effectively.

    Cai Qi, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and director of the General Office of the CPC Central Committee, accompanied Xi on the visits.

  • Rwanda’s inflation increases by 14.1 percent in May 2023

    Rwanda’s inflation increases by 14.1 percent in May 2023

    Specifically, the category of Food and non-alcoholic beverages witnessed a 25.4 percent increase compared to the previous year, but experienced a 3.8 percent decrease on a monthly basis. Similarly, ‘Alcoholic beverages, tobacco, and narcotics’ saw a 21.5 percent annual increase and a 0.7 percent increase on a monthly basis. The Transport sector observed a 7.6 percent increase in prices on an annual basis, along with a 0.2 percent increase on a monthly basis.

    Figures further show that the prices of “local products” increased by 15.9 percent on an annual basis, but experienced a 1.5 percent decrease compared to the previous month. Conversely, prices of “imported products” rose by 8.7 percent on an annual basis but decreased by 0.5 percent on a monthly basis.

    Notably, the prices of “fresh products” displayed a significant annual change of 38.3 percent, yet underwent a monthly decrease of 4 percent. Meanwhile, the prices of “energy” increased by 5.9 percent annually and rose by 0.2 percent on a monthly basis.

    When excluding fresh products and energy from the general index, the overall inflation rate remained at 8.7 percent on an annual basis, but experienced a 0.5 percent monthly decrease.

    Rwanda’s inflation increased by 14.1 percent in May 2023.
  • What are key drivers of Rwanda’s employment landscape?

    What are key drivers of Rwanda’s employment landscape?

    Agriculture emerges as the leading sector in terms of employment. The Labour Force Survey indicates that 1.7 million individuals, comprising 46.3% of the employed population, are engaged in agricultural activities. This figure is relatively high, as the country aims to reduce the proportion of agriculture-related employment to 30%.

    The second most prominent economic activity is wholesale and retail trade, along with the repair of motor vehicles and motorcycles. This sector employs 492,726 individuals, representing 13% of the employed population.

    The real estate sector also contributes significantly to employment opportunities. In February 2023, the sector employed 307,229 people, accounting for 8.1% of the employed population.

    According to figures from the National Bank of Rwanda (BNR), real estate accounted for 67.8% of development projects, playing a critical role in the country’s economic recovery following the Covid-19 pandemic.

    Transportation employs 203,586 individuals, equivalent to 5.4% of the employed population, while industry provides employment to 195,191 individuals, accounting for 5.1% of the total.

    Other notable sectors include activities of households, employing 147,074 individuals (3.9%); education, employing 144,661 individuals (3.8%); accommodation and food service activities, employing 110,540 individuals (2.9%); as well as governance and the mining sector, which account for 2.7% and 1.1% of employment, respectively.

    As per the Labour Force Survey, in February 2023, the working-age population (16 years and above) was approximately 8 million, with 3,803,942 individuals employed, 792,115 unemployed, and 3,380,192 individuals out of the labor force.

    The sum of the employed and unemployed populations gives a total labor force of 4,596,057 individuals.

    Manufacturing is among significant economic activities employing Rwandans.