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.

Rwanda

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

User Contributions:

1
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Mar 17, 2011 @ 6:06 am
NOT UNDESTAND HOW EXPORT IN RWANDA IS GREATER THAN IMPORT.PLEASE CANM TRY TO GIVE ME MORE INFORMATION ABOUT IT,I M LEARNING ECONOMY IN YEAR TWO
2
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Aug 24, 2011 @ 3:03 am
this article is very interesting, although is very short, could you extend the time frame and more analysis.
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
3
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Sep 21, 2011 @ 1:13 pm
am so happy some information abaut my country s economics
4
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Oct 29, 2011 @ 8:08 am
I am a student, I am doing Bachelor of Economics in Uganda-Kampala.
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!
5
dushimirimana j dams
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May 22, 2012 @ 2:02 am
THANKS FOR THESE INFORMATION.BUT I HAVE QUESTION:HOW THIS BALANCE OF PAYMENT PROMOTE THE INVESTORS?
6
fidele gato
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Jun 15, 2012 @ 12:12 pm
Thank you for giving us this opportunity to ask questions balance of payments.even me I am a student in INATEK being in research to the award of bachelor degree, and my work is titled:the study of causes of deficit in balance of payment of Rwanda 2009-2011. but I still have some problems about BOP. What can you help for better understanding of it?
7
@mussana
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Dec 6, 2014 @ 8:08 am
Hey Mussana, you're question is pretty simple to answer.
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 ?
8
shyaka didas
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Nov 7, 2017 @ 11:11 am
I am very thankful to the parties posted this economical information and it is good that Rwandan scholars can get access to their economic trend and other relevant information but i want also to request you to post allot of information as it gives a room for researchers to discover how we can cub down the familiar problems. thx
9
Urusaro
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May 27, 2019 @ 4:16 pm
I very thankful for this economics information u posted, it really helpful really u helps us in our studies. I would as you to keep updating us for our economic growing, encourage us seeing even European people can be update about our economic coz this attract them invest in our country. Keep up Rwanda as youth of this country I proud
10
didas SHYAKA
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Jun 30, 2020 @ 8:08 am
Let me start by recognizing the 2 institutions acted since 1990 as mirrors to development i.e RPF and RPA up on which other entities based to. my concern to Rwandans is, we have moved along journey that is equivalent to 1% of where we are going and we have to put more efforts.

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

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