Rwanda - Economic development





Rwanda's attempt to establish food self-sufficiency has delayed many of its development plans in other sectors. Rwanda typically receives foreign aid from various European donors and the EU. After the 1994 genocide, Rwandan officials requested $1.4 billion from the UN for reconstruction. Net concessional aid from international financial institutions and UN organizations in 1994 amounted to $226 million. Foreign aid continued to rise in 1995, and leveled out through the late 1990s. Working with the International Monetary Fund (IMF) and World bank, Rwanda hopes to restructure the economy and privatize the public sector in order to foster growth.

In 2000, Rwanda became eligible for $810 million in debt service relief under the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative. In 2002, the IMF approved a $5.6 million three-year Poverty Reduction and Growth Facility (PRGF) Arrangement for Rwanda. Economic performance improved in the early 2000s. Demobilization and reintegration of army soldiers and ex-combatants, the jurisdiction of trials related to the genocide (gacaca courts), and assistance to genocide victims were priorities for government expenditure in 2002–03.

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