Rwanda to spend Frw517bn on 'economic transformation'

Will Green is news editor of Supply Management
10 June 2016

The Rwandan government has outlined plans to boost infrastructure and promote local industry in the budget.

Minister of finance and economic planning Claver Gatete, in his budget statement, said 517bn Rwandan francs (Frw), representing 27% of overall spending, would be allocated to “economic transformation”.

He said: “Adequate resources for priority programmes and projects have been catered for.

“These include vital infrastructure project that will reduce the cost of doing business, provisions for goods and services for smooth running of government operations, as well as safeguarding social protection projects and programmes to ensure a just society.”

The government has identified cement, sugar, rice and clothing where it believes local production can reduce imports.

Gatete said: “High priority will be given to economic activities which will either increase export revenues or reduce import volumes.

“The identified key sectors for fostering economic activity include textiles, garment and leather industry, agriculture export crops, agri-business, construction, livestock, wood industry, minerals, tourism and ICT and trade and investment facilitation.”

Out of a total budget for 2016-17 of Frw1,949.4bn, 45% will be allocated to health, education, justice, stability and food security, 13% to rural development and 5% to increasing productivity and youth employment.

Gatate said 62.4% of the budget would be funded through domestic revenues with the remainder from external resources including grants and foreign borrowing.

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