Rwanda Industry Sectors

By: EconomyWatch Content   Date: 9 April 2010

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 Rwanda’s industry sectors are still in a nascent stage, when compared to the rest of the world. Shortage of raw materials and 90% of the population being involved in agriculture in rural areas has impacted the growth of industry severely in the nation. Given that imports are far higher than exports, the fact that the Government of Rwanda is eager to take steps to create a lasting infrastructure is a very good sign for foreign investors. The current industrial production growth rate is around 7% and only 10% of the population is involved in the manufacturing and service sectors combined. Sector-wise, the GDP is supported by agriculture to the tune of 42.6%, with industry contributing 22.2% and services bringing up the remainder at 35.2%.

Rwanda Industry Sectors: Primary

In 2007-2008, food production in Rwanda’s agriculture sector increased by 14%. Tea and coffee have been the main exports. Export revenues went up three fold from 2003 to 2007, but the share of tea and coffee declined to about 50%. According to the figures released by the International Coffee Organization, Rwanda produced 425,000 bags of coffee in 2008. Reducing farm size and a rainfall-dependant system of fragmented, subsistence farming are some of the hurdles that have to be overcome. Currently the average farm size is approximately half-an-hectare per family which renders the land unfeasible for large-scale agri-business. Other crops grown are bananas, beans, sorghum and potatoes.

Agriculture and agriculture-based business accounts for 36.2% of the GDP in Rwanda. Minerals such as cassiterite, columbite-tantalite, wolframite and small quantities of gold and sapphire are also mined. Natural gas reserves to the tune of 56.63 billion cu m have also been found in the country, in the form of methane gas.

 

Rwanda Industry Sectors: Secondary

The main industries in Rwanda comprise of:

  • Agricultural products

  • Small-scale beverages

  • Soap

  • Furniture

  • Shoes

  • Plastic Goods

  • Cigarettes

  • Textiles

  • Cement

Industry, including manufacturing, generates 7% of the GDP and manufacturers mainly target the domestic market. Current government efforts to privatize several important organizations, such as Rwandatel, the government telecom firm, various government-owned tea estates, and banking have initiated the process of industrial growth. Economic reform and private investment have earned Rwanda a change in their rank from 143 to 67 by the World Bank's "Ease of Doing Business" report (September 2009).


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