Rwanda Case Study

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Rwanda has a relatively poor infrastructure, transportation costs for imports and exports are among the highest in the world. The nation lacks a connection to regional railway networks, which limits all trades are processed by road or air. Non-tariff barriers add to elevated transportation costs leading to inflated prices of domestically manufactured products, as majority of raw materials processed for manufacturing need to be imported. Energy costs, at $0.24 per kilowatt-hour which well surpasses the rates in other East African countries. Annual per capita income at USD 697 in 2015. A shortage of skilled labor containing accountants, lawyers, technicians, and other skilled professions. Increased interest rates and exceptionally restricted…show more content…
In order to accomplish this, the Government of Rwanda has come up with a medium-term strategy: (The second Economic Development and Poverty Reduction Strategy (EDPRS 2) outlines its overarching goal of growth acceleration and poverty reduction through four thematic areas: economic transformation, rural development, productivity and youth employment, and accountable governance.) The EDPRS 2 aims to: increase gross domestic product (GDP) per capita to $1,000; decrease the percentage of the population living below the poverty line to below 30%; and reduce the percentage of the population living in extreme poverty to less than 9%. These goals build on astonishing developmental successes over the last decade that consist of high growth, rapid poverty reduction and reduced inequality. Between 2001and 2015, real GDP growth averaged at about 8% per annum. Moving forward, the private sector must play a bigger role in verifying economic growth. Poor infrastructure and insufficient access to electricity are a few of the major limitations to private investment. Investment depends heavily on foreign aid, with secure inflows critical to keep the current investment rate high at about 25% of GDP. Decreasing the country’s dependency on foreign aid through domestic resource mobilization and promoting domestic savings is seen as essential. In order to address these challenges, Rwanda’s government must launch measures to

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