Rwanda

Location : Central Africa, east of Democratic Republic of the Congo

Capital : Kigali

Languages : Kinyarwanda (official) universal Bantu vernacular, French (official), English (official), Kiswahili (Swahili) used in commercial centers

Area : 26,338 sq km

Land Use : arable land: 40.54%; permanent crops: 12.16%; other: 47.3% (2001)

Natural Resources : gold, cassiterite (tin ore), wolframite (tungsten ore), methane, hydropower, arable land

Population : 8,440,820 (July 2005 est.).

Labour force : 4.6 million (2000)

Labour force participation rate : 54.50% of population (2000)

Population below poverty line : 60% (2001 est.)

International Organisation participation : ACCT, ACP, AFDB, AU, CEPGL, FAO, G-77, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IOM, ISO (correspondent), ITU, MIGA, NAM, OPCW, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WCO, WHO, WIPO, WMO, WToO, WTO

GDP per capita : U$1,300 (2004 est.)

GDP Real Growth Rate : 0.9% (2004 est.)

GDP sectoral composition : agriculture: 41.1%; industry: 21.2%; services: 37.7% (2004 est.)

Investment (gross fixed): 20% of GDP (2004 est.)

Industries: cement, agricultural products, small-scale beverages, soap, furniture, shoes, plastic goods, textiles, cigarettes

Industrial production growth rate : 7% (2001 est.) 

Agriculture - products : coffee, tea, pyrethrum (insecticide made from chrysanthemums), bananas, beans, sorghum, potatoes; livestock

Exports : U$69.78 million f.o.b. (2004 est.)

Exports - commodities : coffee, tea, hides, tin ore

Exports - partners : Indonesia 35.4%, China 7.1%, Germany 3.4% (2004)

Imports : U$260 million f.o.b. (2004 est.)

Imports - commodities : foodstuffs, machinery and equipment, steel, petroleum products, cement and construction material

Imports - partners : Kenya 21.9%, Germany 7.8%, Belgium 7.7%, Uganda 5.9%, France 5.9% (2004)

QUALITATIVE TRADE PROFILE

Customs duties constitute Rwanda 's chief trade policy instrument. The applied MFN tariff comprises only ad valorem duties corresponding to the four rates of the COMESA common external tariff (zero per cent, 5 per cent, 15 per cent and 30 per cent). The simple average tariff rate in Rwanda in 2003 was 18 per cent, with a largely escalating structure. Non-agricultural products according to the WTO definition are the most protected, with an average tariff rate of 18.8 per cent, compared with 13.2 per cent for agricultural products. Average rates remain relatively lower in the agricultural sector (7 per cent) and the mining sector (6 per cent) than in the manufacturing sector (19 per cent) when using the International Standard Industrial Classification (ISIC, Revision 2). Imported goods may also be subject to VAT, consumption tax and advance corporation tax. The preferential tariff (zero per cent) is applied only to products originating in countries that are members of the COMESA free-trade area.

During the Uruguay Round, Rwanda completed the binding of all its tariff rates. These bindings comprise ad valorem rates only, ranging from zero to 100 per cent. Duties on non-agricultural products were bound at rates ranging from zero to 100 per cent, and duties on agricultural products at rates ranging from zero to 80 per cent. The simple average of the bound rate is 89 per cent (76.2 per cent in the case of agricultural products and 91.3 per cent for the others); 75.3 per cent of lines are bound at a maximum rate of 100 per cent, 12.9 per cent at a maximum of 80 per cent and only 0.8 per cent are bound at zero per cent. Other import duties and taxes were bound at zero. However, for 241 tariff lines (essentially lines that were bound before the Uruguay Round and have not yet been transposed into the Harmonized System), the rates of duty applied are higher than the bound rates.  

INSTITUTIONAL FRAMEWORK 

The Government's trade policy is laid down by the Ministers for Foreign Trade and Finance. Depending on the matters involved, trade policy is coordinated with other relevant ministries, such as the Ministry of Agriculture, and other government institutions, such as the National Bank of Rwanda (NBR), the Rwanda Revenue Authority and the Rwanda Investment Promotion Agency (RIPA). The private sector too is consulted in meetings held on the initiative of both parties.

A Presidential Economic Council, without formal ties to the ministries, advises the President issues relating to regional integration and other international economic matters. According to the authorities, the private sector is consulted on an informal but regular basis through the Public/Private Partnership Forum headed by the Chairman of the Rwandan Private Sector Federation.

TRADE AGREEMENTS

Bilateral

Rwanda has concluded bilateral framework trade agreements to facilitate movement of goods and persons with Burundi, the Democratic Republic of the Congo, Kenya, Mauritius, South Africa, Tanzania, and Uganda. Rwanda is also a beneficiary under the African Growth and Opportunity Act (AGOA) and EU 'Everything-but-Arms' initiative as well as under many other GSP schemes.

Regional

Rwanda is a member of the Common Market for Eastern and Southern Africa (COMESA), the Economic Community of Central African States (ECCAS), the Economic Community of the Great Lakes Countries (CEPGL), the Regional Integration Facilitation Forum (RIFF), the Organization for the Management and Development of the Kagera River Basin (KBO), the African Union (AU) and the African Economic Community (AEC). Rwanda has also applied to join the Southern African Development Community (SADC). Rwanda is currently negotiating an Economic Partnership Agreement with the EU through the ESA configuration.

Multilateral

Rwanda is a founding member of the WTO and grants at least MFN treatment to all its members.

NEED PRIORITIES  

Rwanda's trade-related technical assistance requirements span a number of areas, including the implementation of trade agreements; participation in trade negotiations; formulation of trade policies; supply constraints; and the integration of trade and development policies.

Source: World Fact Book, WTO Secretariat.