Rwanda among fast growing economies on the continent

 

INVESTMENT IN EDUCATION AND HEALTH IS KEY: Jim Yong Kim, President, World Bank Group

INVESTMENT IN EDUCATION AND HEALTH IS KEY: Jim Yong Kim, President, World Bank Group

Rwanda is among the thirteen African countries that are set to grow rapidly according to the World Bank Group’s latest 2015 Global Economic Prospects report released this June.

The report shows that Rwanda’s economy will grow each year at a rate of 7.12 percent between fiscal years 2014-2017 and in 2016 the growth will be at 7.0 percent while in 2017 at 7.5 percent.

Ethiopia however leads the trend with an estimated growth of 9.5 percent in 2016 and 10.50 in 2017 with a general steady growth rate of 8.50 percent between fiscal years 2014-2017.

Tanzania and the Democratic Republic of Congo (DRC) are among the fastest growing economies.

With a Gross Domestic Product (GPD) at current market prices increased by Rwf1.377 trillion, up from Rwf1.282 trillion in the same quarter of 2014, Rwanda’s economy grew by 7.6 per cent in the first quarter of 2015, up from 7 per cent in the same quarter of 2014, according to the National Institute of Statistics of Rwanda (NSIR).

Rwanda has unveiled an ambitious budget this year and the country plans to wean itself off foreign aid it as it works toward its vision 2020 development goals as stipulated in the 2nd Economic Development Strategy Papers (EDPRS2).

The Rwandan government says it will finance 66 per cent of its Rwf1768.2 trillion budget for 2015/2016 using domestic resources meaning Rwf1174.2 billion must be sourced from within the economy; that’s an increase of Rwf41.6 billion compared to the domestic revenues for the current fiscal year.

External resources which include loans and grants will only contribute Rwf594 billion or 34 per cent of the total budget, representing a reduction of Rwf35.8 billion.

Grants (which may include money from development agencies such as International Fund for Agricultural Development-IFAD) will contribute Rwf 358.4 billion, indicating a reduction of Rwf58.8 billion but money from grants account for 20 per cent of the total external support.

“Developing countries were an engine of global growth following the financial crisis, but now they face a more difficult economic environment,” said World Bank Group President Jim Yong Kim.

Kim said that countries that invest in education and health, improve the business environment, and create jobs through upgrades in infrastructure will emerge much stronger in the years ahead.“These kinds of investments will help hundreds of millions of people lift themselves out of poverty.”