Exports dropped by 25 percent in 2009

Rwanda’s exports last year fell by 25 percent, a decrease that has largely been attributed to the world economic crisis. The country export value dropped from $150 million in 2008 to $112 million in 2009 while in volume it dropped from 12.8 million to 3.7 million Kilogram in 2008 and 2009 respectively. “The figures generally indicate a decrease in 2009, due to adverse effects of the global economic crisis on consumers,” said Martin Gasasira Acting Manager Trade Information Centers in Rwanda Development Board. According to the Monetary Policy Rwandan exports decreased by 21.3 percent in volume and by 31.9 percent in value during the first half of 2009 compared to the same period of 2008, and all main exports recorded significant decline in value. The drop is registered in minerals like Cassiterite, Coltan, Wolfram, and Gold, in horticultural produce like bananas, fresh fruits, and beans in other exports there is also a decrease in handcrafts, hides and skins exports and tourism. However, Rwanda’s major exports like tea relatively increased. Economists have already predicted better performance of the economy as the overall global economic outlook for 2010 is positive, something that will boost the export sector. Governor of the Central Bank Francois Kanimba recently expressed optimism of significant growth this year because agriculture is expected to continue doing very well. Government targets emerge from being a subsistence agricultural economy to an economy that offers the world more of its exports and attracts investment from abroad. Due to the effect of the global recession on the economy, at the beginning of the year Rwanda revised her growth rates downwards to 5.3 percent from 11.2 percent in the previous year. Monetary policy indicate that credit to private sector declined by 3.6 percent from an amount of Rwf 341 billion in December 2008 to Rwf 329 billion in June 2009. Despite the fact that the planned government expenditures were met, shortfall in credit distribution and exports receipts has contributed to the decline of the overall demand, a monetary policy states. Ends