{The Rwandan Minister of Finance, Claver Gatete said that the country’s economy has not been affected by the suspension of aid that feeds the national budget to 40%}.
“In reality, the economy has not been affected, because the banking system could take over from donors. Credit to the private sector increased by 34% and GDP grew 8% in 2012. It showed us that it was time to mobilize domestic resources, “the Minister said Claver Gatete in an interview with Jeune Afrique.
“The Agaciro Development Fund can serve as a safety net. The budget for the 2013-2014 fiscal year to 62.2% will be covered by domestic resources, and we want this percentage increases to cover all our expenses. Most donors are revenue, “he said.
For a Rwandan state, the suspension of part of the aid has helped to show that the economy is strong.”We now want to deal with financial institutions rather than political institutions, which can destabilize you at any time. We have made efforts to be a credible country. No state in the world uses its money as effectively as Rwanda. Proof: When we went on the financial markets to sell our bonds, they were oversubscribed 8.5 times, “he says.
Traditionally Rwanda worked with the World Bank, the African Development Bank and bilateral partners. The country now seeks to diversify its partners. Thus it came close to Turkey, India and attempts to join the Islamic Development Bank. Rwanda also works with all Arab funds.
The suspension of international aid was enacted in the wake of accusations of interference in neighboring DRC problem, a charge that Rwanda has always rejected.
Leave a Reply