LONDON, (The Southern African Times) – Rwanda’s economy is expected to grow 5.1% this year after contracting 3.4% in 2020 as a result of the COVID-19 pandemic, a senior finance ministry official said on Wednesday.
Tushabe Richard, minister of state in charge of the National Treasury, said growth would accelerate to 7.0% in 2022 then to an average of 7.8% across 2023 and 2024, driven by agriculture, industry, mining and construction.
“This growth projection reflects the actions already in place or that will be put in place by Government to mitigate the economic impact of COVID-19,” Tushabe said.
Tushabe also said Rwanda plans to increase spending in the 2020/21 fiscal year which starts July 1 by 10%, to 3.807 trillion Rwandan francs ($3.82 billion).
Donors will fund 16% of the budget with the rest coming from revenue and debt, Tushabe told Rwanda’s parliament in a virtual session while presenting a draft budget.
He said the country would borrow 651.5 billion francs internationally but did not give details. Rwanda, like other East African nations, will present its final budget in June.