Highlights of Rwanda’s economy in 2014

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Highlights of Rwanda's economy in 2014

Rwanda has recorded significant economic progress in 2014. Here we profile some of the many highlights, including the issuing of three domestic bonds, the hosting of the African Development Bank Group annual meetings and economic growth of 7.8 percent.

Rwanda issued RwF 15 Billion, 7 year fixed coupon treasury bond

On 24 November 2014, the Government of Rwanda has issued a 7-year fixed coupon rate treasury bond of RwF 15 billion. The bond will facilitate the development of the capital as well as fund infrastructure projects. The bond issuance is part of the government’s comprehensive treasury bond issuance plan for the fiscal year 2014/2015. This bond follows the success of a RwF 12.5 billion 3-year bond and RwF 15 billion 5-year bonds issued in February and August. The two bonds, which were oversubscribed by 140 and 232 percent respectively, signalled investor confidence in Rwanda’s currency and economy.

Rwanda’s GDP increased by 7.8 pct in Q3, 2014

In the third quarter of 2014, GDP at current market prices was estimated to be RwF 1,393 billion, up from RwF 1,233 billion in the same quarter of 2013. The services sector contributed 47 percent of GDP while the agriculture sector contributed 34 percent. The industry sector contributed 14 percent of GDP, and five percent was attributed to adjustment for taxes less subsidies on products. The agriculture sector grew by six percent and contributed 1.8 percentage points to overall GDP growth. Activities in the industry sector grew by four percent and contributed 0.7 percentage points to GDP growth. The service sector increased by 10 percent and contributed five percentage points to GDP growth in Rwanda.

Rwanda hosted the African Development Bank Annual Meetings as the bank celebrated 50 years

From 19-23 May 2014, Rwanda  hosted the annual meeting of the African Development Bank Group (AfDB). The theme of this year’s meetings was “The next 50 Years: The Africa we want”. Participants looked towards the next half century and what the continent hopes to achieve. The event was attended by Heads of State, Finance Ministers and Central Bank Governors from the Bank’s 54 regional member countries, and attracted more than 2,500 delegates representing multilateral finance institutions, development agencies, the private sector, non-governmental organisations, civil society and the media.

Rwanda ranked 46th worldwide in World Bank Doing Business ranking

Rwanda was this year ranked 46th out of 189 countries in the recent World Bank Doing Business report. This presents a strong performance given the widened scope in the new methodology that assesses new areas. The report is a survey conducted on how easy it is to do business in the country. A high ranking on the ease of doing business index means the regulatory environment is more conducive to start and operate a local firm. In the overall performance, Rwanda is still the best performing country in the East and Central Africa and 3rd easiest place to do business in Africa (1st is Mauritius which ranks 28th globally, 2nd is South Africa which ranks 43rd).

Fitch Upgraded Rwanda to ‘B+’; Outlook Stable

In July, Fitch upgraded Rwanda’s long-term foreign and local currency Issuer Default Ratings (IDR’s) to B+ with a stable outlook. It also upgraded Rwanda’s senior unsecured foreign and local currency bonds to B+. The outlook on long-term IDRs is stable while the country ceiling was upgraded to ‘B+’ and the short-term foreign currency IDR was affirmed at ‘B’. Rwanda joined a limited number of Sub-Saharan African sovereigns with a Fitch B+ rating or higher.

 

About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

More posts by | Visit the site of Ndaka

 

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