Rwanda ‘Transformation Strategy’ Is working – Says IMF

The International Monetary Fund said Friday that economic growth will jump from 7.8 percent, to 8 percent this year – and probably beyond, as Rwanda’s development blueprint begins to have impact.

“Growth will be bolstered by the government’s continued implementation of its National Strategy for Transformation, which has already resulted in strong investment inflows, diversified exports, and more resilient agriculture,” said Laure Redifer, leader of the IMF team that has been in the country.

In early 2017, Rwanda unveiled its 7-year development agenda with specific targets for 2024. It was billed as the implementation instrument of the remainder of Vision 2020 and for the first four years of the Vision 2050.

The plan essentially was to cut imports to the utmost minimum, growing traditional exports, promoting non-traditional exports, growth of the service sector, made in Rwanda, developing of cross border and trade logistics infrastructure, and development of industrial parks.

“Other large investments, such as Bugesera airport, Hakan peat plant, and electricity infrastructure, will also bolster growth,” said the IMF team, in a statement.

Over the longer term, the IMF says, extensive private and government investment in manufacturing, tourism, agriculture, ICT, health and education, among others, should indeed transform the Rwandan economy into higher value-added activities, and boost per capita incomes and living standards.

However, the project 2019 growth rate is was below that of 2018 reached 8.6 percent.