Country Information - Rwanda

ECONOMIC BACKGROUND Rwanda is a rural country with about 90% of the population engaged in (mainly subsistence) agriculture. It is the most densely populated country in Africa; landlocked with few natural resources and minimal industry. Primary exports are coffee and tea. The 1994 genocide decimated Rwanda's fragile economic base, severely impoverished the population, particularly women, and eroded the country's ability to attract private and external investment. However, Rwanda has made significant progress in stabilizing and rehabilitating its economy. GDP has rebounded, and inflation has been curbed. Rwanda received approval for debt relief from the IMF in late 2000 and continued to make progress on inflation, privatisation, and GDP growth in 2001. However, export earnings were hindered by low global coffee prices, depriving the country of much needed hard currency. President KAGAME is encouraging investors to take advantage of export opportunities in Rwanda based on its membership in the COMESA free trade area and its access to the US and the EU markets through preferential trade agreements. Click here for Country Map [23kB]

BI-LATERAL TRADE OVERVIEW Total trade between Rwanda and the United States has remained fairly constant in recent years, besides a peak in 1999 when U.S. imports into Rwanda increased sharply. Rwanda is not a major trading partner of the U.S., and recorded a trade deficit of $ 10 million in 2001. Bi-lateral trade is dominated by U.S. imports into Rwanda, with exports to the U.S. being relatively low. 'Agricultural products' and 'minerals and metals' form the basis of Rwanda's exports to the U.S., of which an insignificant amount ('chemicals and related products') qualified under the provisions of AGOA in 2001 (see link to Country Trade Profile below). 'Agricultural products' and 'electronic products' form the vast bulk of Rwanda's imports from the U.S. in 2001, and both categories have seen positive export-growth over the past few years. Rwanda has not, as yet, qualified for the 'Wearing Apparel' provisions, although this appears not to be a priority with no exports in that category to the U.S. in 2001. Click here for Detailed Trade Profile