Rwandan Economy Grew Seven Percent in the Fourth Quarter

Rwanda’s economy grew from 4.6 percent to 7.0 percent in the fourth quarter.  Headway in farming, the service industry and the industrial sector underpinned growth. The country’s central bank expects 6.7 percent growth for 2015.

Rwanda’s economy grew from 4.6 percent to 7.0 percent in the fourth quarter.  Headway in farming, the service industry and the industrial sector underpinned growth. The country’s central bank expects 6.7 percent growth for 2015.

The Rwandan economy has a long road ahead, but the country is one of the fastest growing markets in Africa. Things came to halt in 2012, when Rwanda underwent cutbacks in foreign aid and donations after accusations by the international community of supporting M23, which is a rebel group in the Democratic Republic of Congo known for numerous atrocities. The accusations about supporting rebels in the Congo date as far back as 1996. Over six million people have died in the Congo over the course of ten years, and Rwanda’s link to the mass slaughter is an albatross around the country’s neck.

Rwanda Makes Economic Progress

Regardless of the turmoil in the region, investors worldwide have been pouring funds into the country. Significant reforms are attracting outside investment, and Rwandans have made extensive progress in fostering infrastructure development. For example, Rwandans are part of a hydroelectric project with neighboring countries Tanzania and Burundi. President Paul Kagame has been at the helm of these reforms, and he has a long-term goal of bringing his country to middle-class status by 2020.

Rwanda saw an average 8.2 percent growth from 2006 to 2012. More recently, the agriculture industry expanded 5.0 percent in 2014, with the banking and services sector growing 9.0 percent that same year. The industry portion of the economy grew 6.0 percent. In fact, the International Monetary Fund painted a rosier picture than the country’s own central bank, predicting that the economy could expand 7.5 percent in 2015.

Rwanda Issues Left Unresolved

Many believe the Kagame administration is smoke and mirrors. Kagame’s political enemies argue that his policies are concentrating wealth to an elite few, while those who oppose his policies lack a guarantee of basic safety. Critics also point to the curtailments of rights and civil liberties in the nation. In addition, many Rwandans still live in poverty, but the country’s investment measures has boosted life expectancy rates and increased the standard of living for many people. And there is still the Congo issue. Rwanda has a real chance of becoming an economic competitor against Nigeria, the largest economy in West Africa, but Rwandan authorities will have to take extra measures to distance themselves from the Congo to avoid being further isolated from the international community.