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The Economic Activity of Rwanda

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According to a 2009 independent survey, Rwanda is a poor country with 60% of its population living below the international poverty line. The 1994 infamous genocide that left close to one million persons dead further impoverished the population, while destroying the country’s economic base as well as its social and political institutions. Years after that massacre, the country is still struggling to stabilize and rehabilitate its economy while it embarks on a privatization program for some its industries. With political stability slowly returning to the country, economic conditions have started to improve. The gross domestic product (GDP) growth rate is now placed at 9.9%, and its inflation rate and currency depreciation per annum have been reduced to 3.2% and 8.5%, respectively.

​ The country’s economy continues to receive a substantial monetary aid from the World Bank (WB) and the International Monetary Fund (IMF), but it still focuses on improving the performance of many economic sectors especially agriculture, which produces not only subsistence crops but also coffee and tea that account for 80% to 95% of the country’s exports. The overall economic growth, however, will need to still depend on international aid and strengthened world prices of coffee and tea. Tourism is seen by the government as able to play an important role in building economic infrastructures. It has earned substantial investments from the private sector as the government is also eyeing wildlife tourism as an addition to the overall economy. The government has also established the Rwanda Investment Promotion Agency to work closely with investors on long-term economic projects and activities.