Rwanda's economy is still virgin both in terms of industrialisation, foreign investor participation and commercial engagement with international markets.

Agriculture contributes 46% to the GDP, while industry and services contribute 20% and 34% respectively. The country's main exports are tea and coffee. Other agricultural products such as pyrethrum and flowers have appeared on the country's list of exports. The limited industrial output available generates products for local consumption only. Local manufactured products include cement, beverage, soaps, shoes, plastic goods, garments and cigarettes. 

Though speculation exists as to the existence of precious minerals like oil, gold and several industrial minerals, previous governments invested little or no effort in geological studies to determine the existence of such minerals. Even though it is certain that gold exists and is mined using primitive methods, there is no evidence that any studies were done to determine the presence or absence of commercially exploitable quantities. Other minerals known to exist in Rwanda include tin, coltan and significant reserves of methane gas in Lake Kivu.

The government under the leadership of his Excellency Paul Kagame initiated an economic stabilization and recovery program whose implementation led to a major economic turnaround between 1994 and 2001. During this period, the government restructured the country's external debt through the Paris club, secured a three year support from IMF/World bank for its economic recovery programme, abolished export taxes, initiated rehabilitation of the banking sector, liberalized trade, currency and wage regimes, achieved full current account convertibility, firmed up the independence of the Central Bank and launched the necessary restructuring and privatisation of public entities.

What has been the harvest from these initiatives?

A dramatic and sustained GDP growth rate, and investors confidence. The last three years have also seen spectacular GDP growth at an average rate of over 6%.

And local entrepreneurs have led the effort in ploughing their cash in the economy. The government's focus over the next three years is to secure macroeconomic stability, promote investment into value addition economic activities, and expand the export base so as to help reduce the external current account deficit.

Key statistics:

  • Population: 8.1 million
  • Kigali city (capital): 800,000
  • Population growth rate: 1.16 %( 2002 est.)
  • Total area: 26,338 sq.km
  • Land: 24,948 sq. km
  • Water: 1,390 sq.km
  • GDP - growth rate: 2000: 6.0% / 2001: 6.7%, / 2002:9.4% /  2003: 3.4% /  2004: 9.9%, 2005 (6% Est)
  • GDP per capital: $260
  • GDP- composition by sector: Agriculture 46%, Industry 20%, and Service 34%
  • Inflation rate : 2000: 3.9% / 2001: 3.4% / 2002: 2.0% / 2003: 7.4% / 2004: 5%
  • Labour force: 3.6 million
  • Exports: $61million (fob 2001 est.)
  • Exports partners: EU 56.9%, Pakistan 12.3%, US 9.2%, china 4.4%, Malaysia 4% (2002 est.)
  • Imports: $248 million (fob 2001 est.)
  • Import partners: Kenya 29.4%, EU 28%, US 10%, India 4.4%, Tanzania 2.2% (2002 est.)