Rwanda’s Finance and Economic Planning minister Ambassador Claver Gatete today presented a Rwf1.7trillion National Budget for the 2014/15 financial year, and said that the budget will be centered at increasing economic activities especially infrastructure and exports.
The budget will also implement priority areas that support the second Economic Development Poverty Reduction Strategy (EDPRS II) goal, which will see at least 3 million people rise above the poverty line.
Key areas will be on investing in energy generation, skills development, increasing export base to narrow the current trade deficit and supporting initiatives aimed at promoting a green economy.
Other areas of focus will be rural development projects to reduce poverty, agriculture modernization, primary health care, infrastructure development, ICT and support the private sector.
Despite a drop in the global economic activities by 3 percent, and dwindle in donor aid the minister expects that Rwanda’s performance will be good with an economic growth of at least 6 percent in 2014, if the country improves its exports and infrastructure.
A steady economic growth is also anticipated at a rate of 6.7 in 2015 and 7 percent in 2016. While agriculture, which suffered a slowdown is expected to increase at 5 percent rate from 3 percent, while industry will move from 11 percent to and service sector to move from 4 to 7 percent- in reference to the government projects and increase financing of private sector initiatives.
Incomes from exports will increase from $703 million to $751 million as a result of increase in prices of minerals exported in 2014, while imports will increase by 4 percent and the government plans to also increase sell of its bonds on the open stock market.
“Our only worry to attaining these goals is a fall in the donor aid, climatic change and food security; but we have set up monitoring to ensure that the economy performs well compared to last year,” Gatete said.
Rwanda’s economy grew 4.6 percent instead of 6.6 percent target that was set for the 2013 fiscal year. This was majorly caused by the delays and halting of donor funds, and climatic changes that affected the economy and the agricultural sector (with a 3 percent increase), while the service sector suffocated with only a 4 percent increase.
“The economic strategy is to build a firm economic performance and in the short term, we will reduce the gap of dependence on foreign funds and increase internally generated incomes” Gatete noted
Members of both the upper and lower chambers demanded that the ministry considers propelling the agricultural sector, improving exports and infrastructure so as to attain the desire growth and community development.