Rwanda’s economy is expected to grow at a rate of more than six percent in the New Year according to the governor of the national bank of Rwanda, John Rwangobwa while presenting the monetary policy and financial statement at the Kigali Serena today.
With the economy having previously grown at more than 7 percent in 2015 a rate higher than initially projected, the governor is optimistic that Rwanda’s economy growth will continue to be one of the global economies growing by 3.1 % in 2015.
The import substitution strategic measures taken by the government of Rwanda in the past year are set to be one of the indicators to propel the economy forward stated the governor,” more and more products that we previously imported in bulk are being produced now from here,” said Rwangobwa in reference to materials such as cement that contributed largely to the import bill last year.
But experts have called the set target an under ration citing the economy will benefit extensively from the government’s tourism diversifying and conferences campaign. “ 6.3 looks a lower projection than expected when you put into consideration the rate at which Rwanda’s tourism sector is growing and the number of conferences to be held here this year,” notes Lawson Naibo from Bank of Kigali.
“There is no need for a company like CIMERWA to have its stores full of cement while the market is flooded with imported cement,” wondered Francois Kanimba the minister of trade and industry in reference to the import substitution strategy.
The insurance and pension sectors continued to show,” sound and stable growth,” according to the governor with the microfinance sector noted for being well capitalised and liquid as it saw an over forty percent growth.
Low commodity prices and continued strengthening of the US dollar were not for the depriciating of the franc that stood at 7.6 percent by December of last year trading at Rwf 747 from Rwf 694 by end of December 2014.
There was an increase in mobile money services with the sector expected to be at the fore front of the growth of a cashless economy seeing more than five hundred percent growth as mobile money accounts in the country increased from 1,440,541 in 2002 to 7,663,199 in 2015.