Page 33 - Nile Explorer Issue 007

 

S mall and landlocked, Rwanda is ment of the SDGs. The NST1 came after poverty line, poverty declined from 59
the implementation of two, five-year
to 39% between 2001 and 2014 but was
hilly and fertile with a densely
packed population of about 12.5 million Economic Development and Poverty almost stagnant between 2014 and
people (2018). It borders the far larger Reduction Strategies—EDPRS 2017. The official inequality measure,
and richer Democratic Republic of (2008-12) and EDPRS-2 (2013-18), the Gini index, declined from 0.52 in
Congo, as well as its closest East African under which Rwanda experienced 2006 to 0.43 in 2017.After the 1994
neighbors, Tanzania, Uganda, and robust economic and social perfor- Rwandan genocide against the Tutsi
Burundi. With the support of the Inter- mances. The growth averaged 7.5% over that killed 800,000 people, Rwanda has
national Monetary Fund (IMF) and the the decade to 2018 while per capita developed as a nation, improving its
World Bank, Rwanda has been able to growth domestic product (GDP) grew at economy and decreasing its poverty
make important economic and structur- 5% annually. rates. Rwanda Vision 2020 seeks to
al reforms and sustain its economic Public investments have been the main bolster Rwanda’s economic success by
growth rates over the last decade. driver of growth in recent years. Exter- investing in a knowledge-based society.

Rwanda has guarded its political stabili- nal financing through grants, conces- World Economic Forum calls Rwanda
“one of the fastest growing economies in
ty since the 1994 genocide. Parliamen- sional and non-concessional borrowing Central Africa.” The country increased
tary elections in September 2018 saw played an important role in financing of its GDP growth to eight percent per
women fill 64% of the seats—the coun- public investments. Growth slowdown year between 2001 and 2014. However,
try tops the global list on women leader- of 2016 and 2017 highlighted the limits more than 60 percent of the population
ship—the Rwandan Patriotic Front of public sector-led growth model. still lives on less than $1.25 a day.
maintain an absolute majority in the Going forward, the private sector will
Chamber of Deputies and, for the first play a bigger role in helping to ensure The country entered a high period of
time, two opposition parties, the Demo- economic growth. Low domestic economic growth in 2006, and the
cratic Green Party of Rwanda and Social savings, skills, and the high cost of following year managed to register 8%
Party Imberakuri, winning two seats energy are some of the major economic growth, a record it has
each in the parliament. President Paul constraints to private investment. sustained since, turning it into one of
Kagame was re-elected to a seven-year Stronger dynamism in the private sector the fastest-growing economies in
term in the August 2018, following a will help to sustain high investment rate Africa. This sustained economic growth
controversial amendment to the consti- and accelerate the growth. Promoting has succeeded in reducing poverty and
tution in December 2015 that allowed domestic savings is viewed as critical. also reducing fertility rates, with growth

him to serve a third term. Rwanda’s strong economic growth was between 2006 and 2011 reducing the
According to reports, Rwanda now accompanied by substantial improve- percentage of the country's population
living in poverty from 57% to 45%.The
aspires to reach Middle Income Coun- ments in living standards, with a country's infrastructure has also grown
try (MIC) and High-Income Country two-thirds drop in child mortality and rapidly, with connections to electricity
(HIC) status by 2035 and 2050, respec- near-universal primary school enroll- going from 91,000 in 2006 to 215,000 in
tively. The Vision will be effected ment. A strong focus on homegrown 2011.[16]
through a series of seven-year National policies and initiatives has contributed
Strategies for Transformation (NST1), to significant improvement in access to Existing foreign investment is concen-
underpinned by detailed sectorial strat- services and human development trated in commercial establishments,
egies that are aimed toward achieve- indicators. Measured by the national mining, tea, coffee, and tourism. Mini-
The Nile Explorer 007 | 33