Country profile 2015 : Rwanda / [Andrew Mold]

The Rwandan economy has performed extremely well over the last 15 years. Since 2000, the average rate of growth has been nearly 8.0 per cent per annum. The country is now reaching a different stage in its development trajectory, and a new set of challenges needs to be addressed. The growth process has yet to be accompanied by sufficient structural change, and although the economy has responded strongly to the new economic opportunities, investment has been principally led by the public sector. In contrast, the private sector remains relatively weak. There are a number of other important social and economic challenges constraining growth: the energy sector is proving to be a major bottleneck to growth; the agricultural sector’s performance is respectable, but far from reaching the Government’s target of 8 per cent growth per annum; the private sector is constrained by the lack of suitable infrastructure; government finances are still highly dependent on foreign aid, and the large current account imbalance acts as a brake on attaining a faster pace of growth.