Rwanda

OVERVIEW

  • Second smallest economy in the EAC with an estimated GDP of $7.2 billion in 2012 (World Development Indicators, (WB)
  • Per capita GDP was $684.41 in 2012 (WB)
  • Population estimated at 10.52 million in 2012 (WB)
  • Rwanda is the highest-ranked economy for doing business in the EAC and is the world’s 2nd most improved economy for doing business from 2005 to 2011 (WB)
  • Government wants to diversify foreign exchange sources by increasing exports of horticultural products (RHODA)
  • World Bank ranks Rwanda 32nd out of 189 economies for ease of doing business (WB Doing Business 2014), 2nd after Mauritius in Africa
  • Primary imports are fuel oil (not crude), vaccines, and coaxial cables/conductors (GTIS)
  • Primary exports are tin, coffee, and tea (GTIS)
  • The World Economic Forum identified the most problematic factors for doing business as limited access to financing, inadequately educated workforce, high tax rates, inadequate supply of infrastructure, and complex tax regulations (WEF)

EASE OF TRADING ACROSS BORDERS – RWANDA

2005 2008 2011 2012 2013
Documents needed to import (number) 20 10 8 9 9
Time needed to import (days) 95 42 31 31 30
Cost to import (US$ per container) 4,000 4,990 4,990 3,245 3,245
Documents needed to export (number) 14 9 8 7 7
Time needed to export (days) 60 42 29 29 26
Cost to export (US$ per container) 3,840 3,275 3,275 4,990 4,990
Trading across borders rank (out of 189) N/A N/A 155 160 162

 

THE MOST PROBLEMATIC FACTORS FOR DOING BUSINESS (WORLD ECONOMIC FORUM GLOBAL COMPETITIVE REPORT – 2013-14: PERCENTAGE OF RESPONDENTS):

Problematic Factor Rank (%)
Access to financing 21.3
Corruption 2.5
Tax rates 10.1
Inflation 5.3
Foreign currency regulations 1.3
Inadequate supply of infrastructure 11.3
Policy instability 1.6
Insufficient capacity to innovate 11.5
Inefficient government bureaucracy 3.5
Inadequately educated workforce 14.3
Poor work ethic in national labor force 7.5
Crime and theft 0.6
Restrictive labor regulations 1.1
Tax regulations 7.2
Government instability/coups 0.0
Poor public health 0.9