About Rwanda
Rwanda is a small, densely populated, landlocked country in Central Africa, who became independent in 1962, after colonization by Germany (1899) and Belgium (1945). In 1961 its monarchical government was formally abolished by a referendum and the first parliamentary elections were held...more
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WTO: member
Status: Least Developed Country
ACP: member
Population: 8.5 million
Population growth rate: 5.2%
Surface area (1997): 26.3 thousand sq. km
Population per sq. km (1997): 345
GNP per capita : 250 US$
GDP : 1.8 billion US$
Rwanda at a glance in detail

Rwanda is a small, densely populated, landlocked country in Central Africa, who became independ in 1962, after colonization by Germany (1899) and Belgium (1945). In 1961 its monarchical government was formally abolished by a referendum and the first parliamentary elections were held.

Ethnic conflicts between the Tutsis, who represent 15 percent of the population, and the Hutus who represent over 80% of the population, have engulfed the country for decades. These conflicts triggered the displacement of tens of thousands of Tutsis to neighboring countries in 1959, 1969, and 1972. This recurring ethnic strife, as well as a Government policy prohibiting the return of exiles, culminated in a large-scale armed invasion of Rwanda in October 1990 by the Rwanda Patriotic Front (RPF), composed mainly of exiled Tutsis. The RPF sought political reforms and the rights of all exiles to return to Rwanda; its army fought the Government’s mainly Hutu army to a stalemate.

A peace agreement known as the Arusha Accords, mediated by the international community, was signed by the Government and the RPF in Arusha, Tanzania in August 1993. It provided for the formation of a united national government and the integration of the two armies. However, the implementation of the accord was delayed due to opposition by Hutu extremists. The subsequent deaths of the presidents of Rwanda and Burundi in a plane crash over Kigali sparked a well-organized Hutu extremist uprising. With the support of the army, Hutu extremists engaged in genocide, killing up to 800,000 people, mostly Tutsis and also moderate Hutus. The RPF responded by ousting the government and its army, and about 2 million Hutus fled Rwanda into refugee camps in neighboring countries.

A transitional Government of National Unity, formed along the lines of the Arusha Accords, was sworn in July 1994 under the presidency of Pasteur Bizimungu. The new government included representatives of the 5 major political parties, from both the Hutu and Tutsi ethnic groups. The dominant parties in the Government are the RPF, now chaired by vice-president Paul Kagame, and the "Mouvement Démocratique Rwandais" (MDR), now chaired by Prime Minister Rwigema. Following the installation of the new government, about 800,000 exiles from previous conflicts returned to Rwanda. Many of the 1994 Hutu exiles also returned to Rwanda in 1996/97 and have been resettled and reintegrated into the society and economy. The Government has adopted a transition program featuring national reintegration and reconciliation, and economic reform.

Economy
The economy continued to recover rapidly in 1998. With a GDP growth of 10 percent in 1998, Rwanda exceeded the PFP projection of 6.7 percent. Inflation is abating, dropping from 12% in 1887 to 6.8% in 1998. A drop in government revenue has increased the primary deficit.

The international community has provided substantial assistance—in excess of US$2 billion since 1994—for the reconstruction of Rwanda. The World Bank has provided an emergency grant (US$20 million) and two emergency credits of US$50 million each since 1994. The International Monetary Fund (IMF) approved a Post-Conflict Reconstruction Program of about US$20.6 million in May 1997 to support Rwanda’s emergency reconstruction and economic recovery efforts. An Enhanced Structural Adjustment Facility (ESAF) was approved by the IMF in June 1998. An Economic Recovery credit in the amount of $75 million was approved by the Bank’s Board in March 1999 to support Rwanda’s economic recovery and adjustment program. In light of satisfactory progress in the country’s economic reform program, a second ESAF is being prepared and is expected to be presented to the IMF board in October 1999.

Politics
The Arusha Accords provided a five-year term for the Government of National Unity. The transitional Government includes members of both ethnic groups and different political parties. The five year transition period expired in July 1999, and has been extended for another 4 years. The implementation of the transition program has been delayed by the enormous task of dealing with the effects of the genocide and the massive displacements and resettlement of the population.

Rwanda faces the major challenge of bringing to justice the perpetrators of the genocide. About 130,000 persons are in prison awaiting trial on charges of genocide. The National Assembly has passed legislation to enable the trials of the accused persons and these trials are now taking place.

Internal security in the north-western and central parts of the country has improved since Rwanda has been successful in containing the ongoing insurgency from the neighboring DRC. A peace accord signed on July 10 between the Government of the Democratic Republic of Congo and other countries involved in the conflict (Rwanda, Angola, Uganda, Zimbabwe, Namibia) makes provisions for dealing with Rwanda’s security concerns.

Development Picture/Donor Coordination
The most recent UNDP Roundtable meeting on Rwanda was held in June 1996. UNDP has the primary role for assisting the Government of Rwanda in donor coordination and mobilization of external assistance. The Bank was assigned lead role for economic management and budget support, and co-lead role for capacity building.

The Bank and Swedish authorities organized a special donors meeting held in Stockholm in June 1998 to mobilize resources for Rwanda's economic reform program and its multilateral debt service needs. About US$250 million was pledged, of which about US$55.2 million will be allocated to a multilateral trust fund established to service Rwanda’s African Development Bank, IFAD and IDA debt for a period of three years, following which Rwanda is expected to qualify for debt relief under the HIPC initiative assuming its economic reform program remains on track. The United Kingdom (DFID) organized a special meeting held in London in July, 1999 to exchange views between donors and Rwanda on its reform program for the year 2000 and to discuss other donor coordination matters.

World Bank Role
The World Bank is currently financing eight projects in Rwanda, with International Development Association (IDA) commitments of US$258.0 million. The Bank is providing 100 percent (net of taxes) financing for foreign expenditures for its projects, and the Government will provide counterpart funds for 5 percent of local expenditures.

Policy dialogue has concentrated on public resource management, public utilities, trade, infrastructure, private sector development and agriculture and rural development.

For Fiscal Year 2000, the Bank will be providing assistance through 2 projects, one in Agriculture, one in Rural Water for a total of $25 million. For fiscal 2001, the Bank will be providing assistance through 4 projects: one in Agriculture, one in Human Resources Development, one in Trade and Private Sector Development and a Leveraged Insurance Facility for Trade (LIFT), a regional facility to guarantee investment against sovereign –but not exchange rate- risk. The total amount of assistance for Fiscal Year 2001 is expected to be $125 million.

Under current rules, Rwanda should qualify for HIPC in 2001, provided that the reform program remains on track.

In 1998, the International Finance Corporation (IFC) made a loan to a company that produces roses for export and is exploring an investment opportunity in Rwandacell, the provider of cellular phone service in Rwanda.

Rwanda ratified the Multilateral Investment Guarantee Agency (MIGA) convention on October 27, 1987, but has not yet completed membership requirements.

Contacts
Mr. Emmanuel Mbi
Country Director
1818 H Street NW,
Washington DC 20433 USA
Phone: (202) 473-4953
Fax: (202) 473-8300
E-mail: embi@worldbank.org

Mr. Edward K. Brown
Resident Representative
Blvd. de la Revolution, SORAS Building, Kigali, Rwanda
Phone: (250) 72204
Fax: (250) 76385
E-mail: ebrown@worldbank.org

Mr. Chukwuma Obidegwu
Country Economist
Phone: (202) 473-9458
Fax: (202) 473-8466
E-mail: cobidegwu@worldbank.org

c.c, www.worldbank.org

Coffee, Tea, Hides and skins

Sorghum, Plantains, Maize, Sweet potatoes, Rice, Wheat, Beans

Brewing and cigarettes

As with the other countries in the region which have suffered years of intense conflict, Rwanda’s economy has been virtually destroyed. Tribal conflict has erupted several times since 1959 culminating in deaths of hundreds of thousands of citizens in 1993. The country is almost entirely dependent on emergency grants and a post-conflict reconstruction plan financed by international donors. In 1998 the government agreed on an Enhanced Structural Adjustment Facility and, with the onset of relative peace, the economy has improved somewhat.

The agricultural sector suffers output fluctuations due to periodic drought and the heavy dependence on coffee, in the cash crop sector, has diminished earnings as the international coffee price continues to fall.

Rwanda Market Prices

Price Information from Rwanda
As part of the regional collaboration Foodnet is working with the EU funded PASAR project in Kigali. The commodity price information presented below was obtained from PASAR which is a food security project monitoring changes in commodity prices across the country.