Rwanda’s export earnings rise by 7.5 per cent
Rwanda’s exports increased in the first half of this year, driven by non-traditional exports despite a decline in commodity prices on the international market.
According to central bank data which was released yesterday, exports increased by 7.5 per cent outweighed by imports which grew by 18.per cent, leading to a wider trade deficit.
“Traditional exports – minerals, tea and coffee are performing negatively, but we see good performance on the non-traditional exports and this is linked to Made in Rwanda programme,” John Rwangombwa, the Governor of the National Bank of Rwanda, told the press after their quarterly economic review.
Specifically, Rwanda registered an increase in foreign exchange receipts from foodstuffs as well as re-exports, especially petroleum products on account of improved storage capacity.
Rwanda is keen on becoming a source of re-exports in the region as it also positions itself as a trade logistics hub, the Governor said.
The Bank says that in the period under review, Rwanda shipped in more intermediate and capital goods, which drove up the value of imports.
The increase in the import bill for intermediary and capital goods reflects ongoing investments in the economy particularly huge outlays on projects such as the Kigali Arena and the Hakan peat-to-power plant whose construction began last year in Gisagara District.
“There is a big growth of capital goods by 40 per cent in the first six months. We also see big growth of intermediary goods that grew mainly in construction and manufacturing,” the Governor noted.