Rwanda earned over $1,487 million (over Rwf1.4 trillion) from exports during the 2020-2021 fiscal year, up from over $1,277 million during the previous year, representing a 16.4 per cent increase in the country’s export receipts, according to the Central Bank report set to be presented in Parliament this afternoon.
This National Bank of Rwanda (BNR)’s annual report for the financial year 2020/2021 which ended on June 30, indicated that the country’s total export volume increased by 30.2 percent. Overall, the growth of the revenues and the export quantities imply a drop in prices on the international markets.
According to the report, the growth in export revenues reflects primarily a continued recovery of merchandise exports from the Covid-19-induced collapse that reached the lowest point in recent times, during the second quarter of last year.
Specifically, traditional exports (including minerals, tea, coffee, and pyrethrum), non-traditional exports (such as grains, cereals, and horticulture) and re-exports categories increased by 10 percent, 44.4 percent, and 21.9 percent respectively.
In addition, the report showed that the export revenue growth was supported by gold exports whose revenues rose by 16.6 percent in 2020/21 compared to the previous year.
Similarly, the report indicated, as the recovery of domestic economic activities accelerated, total imports increased by 9.8 percent amounting to $3,488 million (over Rwf3.4 trillion) in 2020/21, up from over $3,204 million (about Rwf3.2 trillion) a year earlier.
Such increase in import bill was largely driven by imports of consumer goods (+10.7 percent), capital goods (+15.8 percent), and intermediary goods (+16 percent), according to the report.
The report noted that Rwanda’s trade deficit (the amount of money by which its imports are higher than its exports) amounted to over $2,000 million (about Rwf2 trillion) the previous financial year, from $1,927.2 million (about Rwf1.9 trillion), reflecting a 3.7 percent increase.
The Rwandan franc value continued slump
Regarding exchange rate developments, the Rwanda franc further weakened in the year ending June 2021, compared to the previous year, owing to higher demand for forex compelled by recovering economic activities and rising imports to cater for Covid-19 related needs.
Year on year, the Rwandan franc depreciated by 5.3 percent versus the US dollar ($), higher than 4.3 percent recorded in June 2020.
The local currency weakened against the British Pound, Euro, and the Yen, losing 18.6 percent, 11.5 percent, and 2.7 percent respectively compared to 1.3 percent, 3.2 percent, and 4.3 percent losses in the year ending June 2020.
At the regional level, the Rwandan franc weakened against all regional currencies, mirroring their behavior compared to the USD dollar.
In FY 2020/21, the report showed, the Rwandan franc depreciated against the Ugandan, Kenyan, and Tanzanian shillings, as well as the Burundian franc, respectively by 10.9 percent, 4.1 percent, 5.3 percent, and 1.7 percent.