KIGALI: Rwanda’s exports to East African Community (EAC) countries recorded a slight drop in 2015, according to official data released here on Thursday. The exports to EAC fell 10.3 percent to 127.8 million U.S. dollars, down from 142.4 million dollars in 2014, said the country’s Central Bank 2015 Monetary Policy and Financial Stability Statement.
The statement, released by the National Bank of Rwanda (BRN), attributed the decline to falling international commodity prices and shrinking exports to Burundi. “Due to ongoing conflicts in Burundi and the fall of international commodity prices led to decline in value of our exports but this doesn’t cause any alarm,” John Rwangombwa, governor BNR told reporters shortly after presenting Monetary Policy and Financial Stability Statement.
He noted that Rwanda imports from the EAC countries, which represent 22.4 percent of total imports, decreased 5 percent from 2015.
EAC is made up of Kenya, Uganda, Tanzania and Burundi. The drop in the country’s exports hinders Rwanda’s bid to increase exports and achieve its export promotion strategy. The small central African nation relies heavily on imports and it will be an uphill battle to bring down the trade deficit to manageable proportions without a strategy to increase the value of exports.
Despite the fall in exports, Rwangombwa said the “positive side is that the country’s exports to EAC are diversified and most agricultural products.” “The fall in export commodities will not deter the government’s efforts to increase the value of exports and boost competitiveness in the international market,” he added. Rwanda’s main exports to EAC include tea, coffee, hides and skins, vegetables and alcoholic beverages.
Total exports recorded poor performance, decreasing 6.8 percent in value to stand at 558.8 million dollars in 2015 from 599 million dollars in 2014. According to 2015 Monetary Policy and Financial Stability Statement, the Rwanda’s economy is projected to grow 6.3 percent in 2016. BNR says last year economic growth was driven by the good performance of the service sector, industry sector and the agriculture sector.
According to the second Economic Development and Poverty Reduction Strategy, Rwanda projects an annual economic growth rate of 11.5 percent by 2018 which will help propel the country into a middle income economy.
