Rwanda - Balance of payments
The current account balance in relation to GDP was consistently negative through the 1990s, not only because of the 1994 genocide. Although the economy improved dramatically post-1994, export earnings in the early 2000s were hindered by low international coffee prices, depriving the country of hard currency. Rwanda's external debt stood at $1.3 billion in 2000. In the same year, Rwanda became eligible for $810 million in debt service relief from the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative. In 2002, the IMF approved a three-year $5 million loan to Rwanda.
The US Central Intelligence Agency (CIA) reports that in 2001 the purchasing power parity of Rwanda's exports was $61 million while imports totaled $248 million resulting in a trade deficit of $187 million.
The International Monetary Fund (IMF) reports that in 2001 Rwanda had exports of goods totaling $93 million and imports totaling $245 million. The services credit totaled $50 million and debit $189 million. The following table summarizes Rwanda's balance of payments as reported by the IMF for 2001 in millions of US dollars.
| Current Account | -118 |
| Balance on goods | -152 |
| Balance on services | -139 |
| Balance on income | -20 |
| Current transfers | 193 |
| Capital Account | 50 |
| Financial Account | -44 |
| Direct investment abroad | … |
| Direct investment in Rwanda | 5 |
| Portfolio investment assets | … |
| Portfolio investment liabilities | … |
| Other investment assets | -1 |
| Other investment liabilities | -48 |
| Net Errors and Omissions | 42 |
| Reserves and Related Items | 70 |
concerning MUSSANA question, Rwanda has always faced a negative Balance of Payment, meaning that the credit (inflow) is less than debit (outflow) in other words, the exports are less than imports.
If wrong correct me and send the correct answer on my email above, PLEASE
Thanks for this document although it is not enough so as my fellows MUSSA and Christophe said,I would like to request you if possible to send me through my mail address more details about BOP, I mean the performance of the BOP account for the last say 8 years and note its been decreasing, later negative.Once again thanks.Live RWANDA our beloved country!
Rwanda's facing an important growing period and of course this needs equipments and means for industries and companies which want to grow. So, they have to IMPORT them. It is pretty much about that , was i clear ?
allow me to answer my comrade "DUSHIMIRIMANA J Dams" on his question about how BOP relate to Investors' development. BOP (Balance of Payment) in simple economics means the difference between country's exports and country's imports. when a country's imports exceeds her exports, that calls for TRADE DEFICIT/BOP Debt, that means that a country is losing a lot of money to other countries that would have used to boost the economic activities in the country and infrastructures (roads,hospitals, taxes are lost on imports, incentives are not there, minerals are easily exploited by foreigners, e.t.c) which limits investment in the country. on the other hand, when exports are greater than imports, that is TRADE SURPLUS. that means, the country is gaining a lot of money from outside than it expends. when exports are high, the country is benefiting a lot (Tax base increases, infrastructures develop due to a lot of funds from taxes, country's natural resources are economically exploited by nationals, employment opportunities are available due to high production, once peoples are employed the level of savings is awakened and then investment is promoted). thanks