Rwanda : Rwanda, EAC lagging in remittance cash flow

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Winning shining reviews left, right and centre, Rwanda as a country is the poster-child of up and coming African economies, with a sterling record in all sectors that matter. However, occasionally a somber reminder that all is not rosy surfaces.

A World Bank report released this week revealed that Rwanda accounted for a measly 3.2 per cent of the total remittances in East African Community (EAC), with the latter not doing too much better by accounting for only 1% of global remittances.

The report further disclosed that the EAC only contributes 13% of the total remittances in the Sub-Saharan region of Africa.

Remittance payments are monies, usually in foreign currency, that Rwandan nationals send home to family, friends and relatives.

Rwanda needs to attract more money from nationals living and working abroad to help accelerate development, according to the World Bank’s latest report on the country’s economic update.

Experts at the World Bank blame the low figures on lack of a proper forum in which nationals living abroad can be made aware of investment opportunities, especially in the energy and infrastructure sectors.

There is however, hope of turning things around as last year, Rwandans in the Diaspora sent more money home compared to the previous year.  Total remittances to the country increased by 69.2 per cent to $166.2 million in 2011 compared to $98.21 million collected in 2010.

The report pin-pointed Kenya and Uganda as the main destination countries for remittances within the EAC averaging more than 95% of total inflows.

 

 

 

 

 

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About the author

Mr. Sina is the Managing Partner & Chief Editor of RwandaEye. After completing his post-graduation from the Faculty of Economics and Management, National University of Rwanda,he worked in various consulting capacities for equity and business firms in Kigali. A shrewd strategist, he is an Economic Pundit, entrepreneur and Investment Banker.

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