RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/129 
13 April 2004 
 (04-1447) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
RWANDA 
 
Report by the Secretariat 
 
  
 
This report, prepared for the Trade Policy Review of Rwanda, has been drawn 
up by the WTO Secretariat on its own responsibility.  The Secretariat has, as 
required by the Agreement establishing  the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from th e Government of Rwanda on its trade 
policies and practices. 
 
Any technical questions arising from this report may be addressed to 
Mrs Ulla Kask (tel:  022-739 5267;  fa x 022-739 5765) or Mr Jacques Degbelo 
(tel:  022-739 5583). 
 
Document WT/TPR/G/129 contains the policy statement submitted by the 
Government of Rwanda. 
 
 
 
Note: This report is subject to restricted circul ation and press embargo until the end of the meeting 
of the Trade Policy Review Body on Rwanda. Rwanda WT/TPR/S/129 
 Page iii 
 
 CONTENTS 
 
Page 
SUMMARY OBSERVATIONS ........................................................................................................... ................vii  
(1) ECONOMIC ENVIRONMENT ........................................................................................................vii  
(2) INSTITUTIONAL FRAMEWORK ...................................................................................................viii  
(3) TRADE POLICY INSTRUMENTS ....................................................................................................ix  
(4) SECTORAL POLICIES .................................................................................................................... x  
(5) TRADE POLICIES AND TRADING PARTNERS ...............................................................................xii 
I. ECONOMIC EN VIRONMENT ........................................................................................................... .... 1 
(1) MAJOR FEATURES OF THE ECONOMY .......................................................................................... 1  
(2) RECENT ECONOMIC PERFORMANCE ............................................................................................. 3  
(3) TRADE AND INVESTMENT ............................................................................................................ 4  
(i) Trade in goods and services.......................................................................................... 4  
(ii) Investment .................................................................................................................... 7  
(4) OUTLOOK ............................................................................................................................... ..... 9 
II. TRADE AND INVESTMENT REGIMES ............................................................................................. 11  
(1) INSTITUTIONAL FRAMEWORK .................................................................................................... 11  
(2) POLICY FORMULATION AND IMPLEMENTATION ......................................................................... 12  
(3) MAIN LAWS AND REGULATIONS ................................................................................................ 14  
(4) TRADE POLICY OBJECTIVES ....................................................................................................... 15  
(5) TRADE AGREEMENTS AND ARRANGEMENTS ............................................................................. 16  
(i) World Trade Orga nization (WTO) ............................................................................. 16  
(ii) Regional ag reements................................................................................................... 16  
(iii) Bilateral agreements and arrangements ...................................................................... 20  
(iv) Other agreements an d arrangem ents........................................................................... 20  
(6) INVESTMENT REGIME ................................................................................................................ 21  
(7) TRADE -RELATED TECHNICAL ASSISTANCE ................................................................................ 23  
(i) Implementation of agreements, trai ning and policy formulation................................ 23  
(ii) Supply constr aints....................................................................................................... 24  
(iii) Integration of trade in development strategies............................................................ 25 
III. TRADE POLICIES AND PRAC TICES BY MEASURE....................................................................... 26  
(1) OVERVIEW ............................................................................................................................... .. 26 
(2) MEASURES DIRECTLY AFFECTING IMPORTS ................................................................................ 26  
(i) Registration and documentation ................................................................................. 26  
(ii) Customs cl earance ...................................................................................................... 27  
(iii) Customs valuation ...................................................................................................... 27  
(iv) Customs duties and other duties and charges.............................................................. 28  
(v) Duty and tax concessions............................................................................................ 35  
(vi) Rules of origin ............................................................................................................ 36  
(vii) Import prohibitions, quantitative restrictions an d licensi ng........................................ 36  
(viii) Anti-dumping, countervailing and safeguard measures.............................................. 36  
(ix) Standards and other tech nical specifi cations .............................................................. 36  
(x) Government procurement ........................................................................................... 40  
(xi) Local content requirements......................................................................................... 42  WT/TPR/S/129 Trade Policy Review 
Page iv 
 
(xii) Other measures ........................................................................................................... 43  
(3) MEASURES DIRECTLY AFFECTING EXPORTS ............................................................................... 43  
(i) Registration and documentation ................................................................................. 43  
(ii) Export taxes ................................................................................................................ 43  
(iii) Prohibitions, restrictions  and export licensing............................................................ 43  
(iv) Voluntary export  restraints ......................................................................................... 43  
(v) Free export zones........................................................................................................ 43  
(vi) Export assistance, prom otion and financing ............................................................... 44  
(4) MEASURES AFFECTING PRODUCTION AND TRADE ...................................................................... 45  
(i) Incentives.................................................................................................................... 4 5 
(ii) Competition policy an d price co ntrol ......................................................................... 45  
(iii) State enterprises an d privatization .............................................................................. 46  
(iv) Protection of intellectua l property rights .................................................................... 48 
IV. TRADE POLICIES AND PR ACTICES BY SECTOR .......................................................................... 52  
(1) OVERVIEW ............................................................................................................................... .. 52 
(2) AGRICULTURE , LIVESTOCK , FISHING AND RELATED ACTIVITIES .............................................. 52  
(i) Major features............................................................................................................. 52  
(ii) Objectives and polic y instruments.............................................................................. 53  
(iii) Policy by product........................................................................................................ 55  
(3) MINING AND ENERGY ................................................................................................................ 62  
(i) Mining ........................................................................................................................ 6 2 
(ii) Energy......................................................................................................................... 63 
(4) MANUFACTURING ...................................................................................................................... 66  
(i) Overview .................................................................................................................... 66  
(ii) Main indus tries ........................................................................................................... 67  
(5) SERVICES ............................................................................................................................... .... 69 
(i) Financial se rvices........................................................................................................ 69  
(ii) Telecommunications................................................................................................... 74  
(iii) Transport..................................................................................................................... 7 6 
(iv) Tourism....................................................................................................................... 7 7 
 
REFERENCES ..................................................................................................................... ................................. 79 
 
APPENDIX TABLES ................................................................................................................ ........................... 81 Rwanda WT/TPR/S/129 
 Page v 
 
  
 
CHARTS 
 
Page 
 
I. ECONOMIC ENVIRONMENT 
 I.1 Structure of trad e in goods, 1996-2 002 ..................................................................................... ................ 6 
I.2 Origin and destina tion of goods,  1996- 2002 ................................................................................. ............ 8 
I.3 Sectoral distribution of foreign direct investment , 2001 and 2002.......................................................... .. 9 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 III.1 Breakdown of app lied MFN dutie s, 2003 .................................................................................... ........... 30 
III.2 MFN tariff es calation, 2003 .............................................................................................. ...................... 32 
III.3 Breakdown of MFN duties by  sector (ISIC definitio n), 2003 ................................................................ . 33 
 
IV. TRADE POLICIES AND PRACTICES BY SECTOR 
 
IV.1 Sources and destina tions of energy, 2002 .................................................................................. ............. 64 
  
TABLES 
 
Page 
 
I. ECONOMIC ENVIRONMENT  
I.1 Main economic i ndicators, 1995-2002 ........................................................................................ .............. 2 
I.2 Balance of pa yments, 199 5-2002 ............................................................................................. ................. 5 
 
II. TRADE AND INVESTMENT REGIMES 
 II.1 Main trade laws and regulatio ns in force, February 2004 ................................................................... .... 14 
II.2 Status of WTO notifica tion obligations , June 2003......................................................................... ........ 16 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
III.1 MFN tariff structur e in Rwanda , 2002-2003................................................................................ ........... 29 
III.2 Value of government  procurement, 1998-2002............................................................................... ........ 42 
III.3 Registration of trademar ks and patent s, 1993- 2003 ........................................................................ ........ 49 
 
IV. TRADE POLICIES AND PRACTICES BY SECTOR 
 IV.1 Agricultural productio n, 1990 and 1995-2002 ............................................................................... ......... 53 
IV.2 Fishing, 2001............................................................................................................. .............................. 59 
IV.3 Forest pr oducts, 2001 ..................................................................................................... ......................... 61 
IV.4 Main manufactures, 1990 and 1998-2001 ..................................................................................... .......... 67 
IV.5 Commercial bank deposits and loans grante d, 1999- 2003 ..................................................................... . 70 
IV.6 Spread of commercial bank loans, 1997-2001 ................................................................................ ........ 70 
IV.7 Legal and financial conditions gove rning banks and financial institutions............................................. 72 
IV.8 Telecommunications:  ba sic indicators,  1997-2 002 .......................................................................... ...... 75 
  WT/TPR/S/129 Trade Policy Review 
Page vi 
 
APPENDIX TABLES 
 
Page 
 
I. ECONOMIC ENVIRONMENT  
AI.1 Imports by pr oduct, 199 6-2002 ............................................................................................. .................. 83 
AI.2 Exports by pr oduct, 199 6-2002 ............................................................................................. .................. 84 
AI.3 Imports by country, 1996-2002 ............................................................................................. .................. 85 
AI.4 Exports by c ountry, 1996-2002 ............................................................................................. .................. 86 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
III.1 Applied MFN tariff rate s, by HS Ch apter, 2003 ............................................................................ ......... 87 
III.2 List of products the applied rate of  which is higher th an the bound rate................................................. 90 
III.3 Privatizatio n, January 2004 .............................................................................................. ....................... 95 
  
 
 Rwanda WT/TPR/S/129 
 Page vii 
 
 SUMMARY OBSERVATIONS 
 
(1) ECONOMIC ENVIRONMENT  
1. Thanks to the economic reforms 
undertaken by Rwanda following the 1994 genocide, by 2000 real GDP had recovered its 
1990 level.  The economy grew at a rate of 
6 per cent in 2000, 6.7 per cent in 2001 and 9.4 per cent in 2002, with an estimated growth for 2003 of 3.5 per cent.  Considerable progress was made in liberalizing the 
economy, inter alia  by revising the tax system.  
A restrictive monetary policy coupled with 
measures to boost public revenue helped to bring inflation down to below 4 per cent in 2000. 
2. Rwanda still suffers from the 
economic consequences of the genocide, such 
as lack of infrastructure and the public expenditure involved in  compensating victims 
and keeping numerous persons in prison awaiting trial for crimes relating to the 
genocide.  Rwanda's prolonged involvement in 
the 1998-2002 war in the Democratic Republic of the Congo (DRC) was yet another source of public expenditure.  The budget continues to be heavily dependent on foreign aid (US$45 
per inhabitant and 9.2 per cent of GDP in 
1999). 
3. With a per capita GDP of 
approximately US$220, Rwanda is among the least developed countries.  It is also a heavily indebted poor country (HIPC) with an overall 
external debt of US$1.4 billion at the end of 
2002.  Its balance of payments suffers from a chronic deficit, owing chiefly to the low coverage of goods imports  by exports as well 
as to a high services account deficit.  
However, official transfers and long-term 
loans have enabled Rwanda to maintain a slightly positive overall balance, and official gross reserves equivalent to approximately six months of imports in 2001 and 2002. 
4. Agriculture employs more than 90 per 
cent of the population and accounts for some 44 per cent of Rwanda's real GDP, as against 
approximately 10 per cent for manufacturing activities and 46 per cent for services.  The mining sector's contribution is negligible, although Rwanda does have certain mineral resources, notably coltan, tungsten and 
cassiterite, the mining and export of which 
increased in 2001.  The low level of foreign investment, partly due to insecurity in the region, has not favoured  diversification of the 
country's production and export structure.  
This lack of diversification has left Rwanda 
vulnerable to external shocks of a climatic nature or resulting from international market fluctuations. 
5. Rwanda exports essentially primary 
products, in particular coffee and tea (the 
main cash crops), and since 2001, coltan.  
These three products accounted for 77 per cent of exports in 2002.  The share of manufactured goods has remained very small, in spite of the Government's determination to 
promote the exportation of non-traditional 
products.  In 2002, re-exports, chiefly to the DRC, accounted for some 16 per cent of total exports. 
6. Rwandan imports are dominated by 
manufactured goods, particularly machinery 
and transport equipment, and their structure has remained largely unchanged.  The increase in imports of consumer goods, telecommunications equipment and office machinery reflects the economic recovery and, 
in particular, the expansion of services 
activities.  The other main categories of goods imported into Rwanda are food products and products of the mining and quarrying industry, in particular petroleum products. 
7. The African countries are the chief 
destination for Rwanda's exports and the main source of its imports.  Among its main trading partners, Kenya alone accounted (on average) for close to 55 per cent of exports and 24 per cent of imports during the period 1997-2002.  
Europe is the second destination for Rwandan 
exports, and its second source of imports. WT/TPR/S/129         Trade Policy Review 
Page viii  
 
 
 8. Foreign direct investment (FDI) has 
been uneven, with flows reaching RF 186.1 billion in 2001, 4.5 billion in 2002 
and 9.7 billion in 2003.  This represents 
considerable progress with respect to the annual average of US$3.1 billion for the period 1995 to 1999.  However, the high cost of energy, water and telecommunications, the 
lack of local raw materials and skilled labour, 
and conflicts and insecurity in the Great Lakes region have hampered FDI flows.  The services sector, in particular telecommunications and finance, accounts for the largest share of these flows.  The share of 
the manufacturing sector has also grown 
thanks to investment above all in the chemical, sugar and tobacco industries.  The same applies to construction activities.  The evolution of FDI and its sectoral distribution 
continues to be influenced by privatization 
operations.  The main in vestors are India, the 
United States, Kenya, Germany, Belgium, Canada, Great Britain, the Netherlands, Switzerland,  South Africa, Lebanon and the Sultanate of Oman. 
(2) I
NSTITUTIONAL FRAMEWORK  
9. The fifth Constitution of the Rwandese 
Republic was adopted by referendum on 26 May 2003, replacing the Basic Law of the Rwandese Republic of 1994.  Rwandan law 
establishes the primacy of international legal 
instruments, including the WTO Agreements, over domestic legislation.  In the hierarchy of laws, international treaties and agreements are followed, in decreasing order, by the 
Constitution, organic laws, ordinary laws, 
decree-laws, presidential orders, Prime Minister's orders, ministerial orders, instructions and regulations. The Government's trade policy is laid down by the Ministries responsible for foreign trade and 
Finance.  Depending on the matters involved, 
trade policy is coordinated with other relevant ministries, such as the Ministry in charge of agriculture, and other government institutions, such as the National Bank of Rwanda (NBR), 
the Rwanda Revenue Authority and the 
Rwanda Investment Promotion Agency (RIPA).  The private sector too is consulted in 
meetings held on the initiative of both parties and, informally, through the Public/Private 
Partnership Forum headed by the Chairman of 
the Rwandan Private Sector Federation.  A Presidential Economic  Council, without formal ties to the ministries, advises the President on such issues. 
10. Rwanda considers trade to be an 
essential economic growth factor.  Accordingly, the main aim of its trade policy is to contribute to the country's social and economic development and to poverty reduction.  Rwanda plans to accelerate its 
economic growth, to stimulate its economy 
through programmes geared towards disadvantaged areas and social strata, to promote food security by using quality seeds and fertilizer and improving storage facilities, 
to diversify its exports, to encourage its small 
and medium-sized enterprises, and to make more effective use of its natural and human resources.  It recognizes that development of the private sector calls for more extensive liberalization, furth er privatization and 
strengthening of the partnership between the 
public and private sectors.  Consequently, there is a need to integrate trade policy into a broader strategic framework, a process that could be facilitated by the implementation of 
the Integrated Framework for Rwanda. 
11. Rwanda is an original Member of the 
WTO, and grants at least MFN treatment to all of its trading partners.  It has not signed any 
of the WTO plurilateral agreements.  Rwanda 
needs considerable technical assistance from 
the international community in order to be able to benefit fully from its participation in the multilateral trading system.  Its technical assistance needs relate notably to the implementation of the WTO Agreements, 
particularly in the areas of customs valuation, 
sanitary and phytosanitary measures (SPS), technical barriers to trade (TBT), and TRIPS; capacity building in the trade negotiations area;  formulation of trade policies;  supply 
constraints;  and the integration of trade 
policy into the development strategy.  Rwanda Rwanda WT/TPR/S/129 
 Page ix 
 
 has also requested technical assistance to 
achieve a better understanding and hence more effective implementation of the WTO Agreements, and has applied to benefit under the revised Integrated Framework for Technical Assistance and Capacity Building. 
12. Rwanda is a member of the Common 
Market for Eastern and Southern Africa (COMESA) and is party to the treaty establishing the Economic Community of the Great Lakes Countries (CEPGL), the trade 
provisions of which are not always applied.  It 
is also a member of the Economic Community of Central African States (ECCAS), the Regional Integration Facilitation Forum (RIFF), the Organization for the Management and Development of the Kagera Basin (KBO), 
and the African Union (AU).  Rwanda enjoys 
non-reciprocal preferential access to the European Union market under the Cotonou Agreement and the "Everything But Arms" initiative, to the United States market under 
the African Growth and Opportunity Act 
(AGOA), and to the markets of the other industrialized countries under the Generalized System of Preferences.  
(3) T
RADE POLICY INSTRUMENTS  
13. Since 1994, Rwanda has made 
significant progress in liberalizing its economy by reducing its customs duties and taxes and joining the COMESA free-trade area on 1 January 2004.  As a safeguard against possible losses in public revenue and in order 
to improve tax collection, the Rwanda Revenue 
Authority was established in 1997 and VAT introduced in 2001.  Since 1 January 2004, Rwanda has been using the transaction value method of customs valuation.  In order to 
boost the economy and reduce non-essential 
government expenditure, in 1996 Rwanda enacted a law on privatization and public investment, as a result of which 37 enterprises were privatized between 1997 and January 2004. 
14. Customs duties constitute Rwanda's 
chief trade policy instrument.  The applied 
MFN tariff comprises only ad valorem  duties corresponding to the four rates of the 
COMESA common external tariff (zero per cent, 5 per cent, 15 per cent and 30 per cent).  The simple average tariff rate in Rwanda in 2003 was 18 per cent, with a largely escalating structure.  The coefficient of 
variation of approximately 0.6 shows 
moderate dispersion.  The modal rate (which is the most common) is 30 per cent and applies to some 40 per cent of the total number of lines.  Non-agricultural products according to 
the WTO definition are the most protected, 
with an average tariff rate of 18.8 per cent, compared with 13.2 p er cent for agricultural 
products.  Average rates remain relatively lower in the agricultural sector (7 per cent) and the mining sector (6 per cent) than in the 
manufacturing sector (19 per cent) when using 
the International Standard Industrial Classification (ISIC, Revision 2).  Imported goods may also be subject to VAT, consumption tax and advance corporation tax.  
The preferential tariff (zero per cent) is 
applied only to products originating in countries that are members of the COMESA free-trade area. 
15. During the Uruguay Round, Rwanda 
completed the binding of all its tariff rates.  These bindings comprise ad valorem  rates 
only, ranging from zero to 100 per cent.  
Duties on non-agricultural products were bound at rates ranging from zero to 100 per cent, and duties on agricultural products at 
rates ranging from zero to 80 per cent.  The 
simple average of the bound rate is 89 per cent (76.2 per cent in the case of agricultural products and 91.3 per cent for the others); 75.3 per cent of lines are bound at a maximum 
rate of 100 per cent, 12.9 per cent at a 
maximum of 80 per cent and only 0.8 per cent are bound at zero per cent.  Other import duties and taxes were bound at zero.  However, since 2002 a surcharge of 25 per cent has been applied to sugar imports, and 
pre-shipment inspection costs and computer 
costs are paid by importer. Moreover, for 241 tariff lines (essentially lines that were bound before the Uruguay Round and have not yet been transposed into the Harmonized WT/TPR/S/129         Trade Policy Review 
Page x  
 
 
 System), the rates of duty applied are higher 
than the bound rates. 
16. Import prohibitions are for the most 
part governed by international agreements of 
which Rwanda is a signatory.  The only products the importation of which is expressly prohibited in the customs tariff are asbestos and products containing it.  For health 
reasons, the importation of  certain products is 
subject to approval by the Ministry of Health.  Imports of products such as explosives or arms 
require the prior consent of the competent authorities.  Rwanda has no legislation on anti-dumping, countervailing or safeguard 
measures. 
17. The last remaining export taxes were 
abolished in 1999.  The obligation to surrender foreign exchange was abolished in 1997, enabling exporters to use the totality of 
their export revenue for current transactions.  
However, the foreign currency repatriation obligation is still in force.  Rwanda does not subsidize its exports; incentives are provided for in its customs legislation (drawback) and the Investment Code of 1998.  Unlike the 
RIPA, however, the free economic zones 
provided for under the Code have not yet been created.  The VAT rate applied to exports is zero. 
18. In the area of standardization, 
considerable progress has been made recently 
with the establishment, in 2002, of the Rwanda Bureau of Standards (RBS) responsible for defining national standards, and the subsequent adoption of some 40 national 
standards in the area of food, health and the 
environment.  The legislation on stock breeding and veterinary medicine is old.  For the protection of plants against diseases, Rwanda refers to the International Plant Protection Convention; it has no specific laws 
or regulations of its own.  Rwanda is a 
Member of the African Union's Inter-African Phytosanitary Council (IAPSC). 
19. Government procurement in Rwanda 
is still governed by legislation dating back to the colonial era.  A draft law on government 
procurement is in the process of enactment, and will enable contracting authorities to 
grant a margin of preference to local products 
provided that the margin is clearly indicated in the tender documents.  A margin of preference of up to 15 per cent on prices may likewise be granted to Rwandan 
entrepreneurs.   Since the creation in 1997 of 
the National Tender Board (NTB), which is responsible for monitoring the implementation of the relevant legislation and organizing and managing the government procurement process, certain provisions of the draft law are 
already applied pending its adoption. 
20. Rwanda has no specific legislation 
governing competition. At present, the subject is covered by Law No. 15 of 28 January 2001 on the Organization of Domestic Trade.  The 
Law establishes liberalization;  it does not ban 
monopolies.  A regional competition policy is being developed within COMESA.  A draft order has been prepared on price control which, once adopted, will confirm price control for goods and services such as 
petroleum products, medicines, sugar, rice, 
cement, medical consultations, water, electricity, public transport and postal services. 
21. Rwanda's industrial property 
legislation is old and obsolete.  Its current 
laws on patents, industrial designs, and trademarks and the ministerial orders to implement them date back to 25 February 1963.  In order to align Rwanda's legislation 
with international standards, a draft law has 
been prepared with t echnical assistance from 
WIPO and should be adopted in 2004.  Copyright is governed by Law No. 27/1983 of 15 November 1983.  Rwanda has no domestic legislation on the protection of new varieties 
of plants. 
(4) S
ECTORAL POLICIES  
22. Agriculture plays a key role in 
Rwanda's economy, particularly in terms of employment and exports. Agricultural Rwanda WT/TPR/S/129 
 Page xi 
 
 production consists main ly of family and 
subsistence farming.  It was affected by the 1994 genocide, and remains subject to climatic uncertainties.  The main cash crops are tea and coffee, which provide more than half of the country's export revenue.  They are 
managed by the Office for Industrial 
Cultivation in Rwanda (OCIR-Thé (Tea Board) and OCIR-Café (Coffee Board)).  The tea sector performs well, and is one of the country's leading employers, providing some 
60,000 jobs not counting indirect employment.  
Climatic conditions and soil quality are Rwanda's main assets in that area.  Tea accounts for approximately 36 per cent of State revenue.  Coffee is produced by some 400,000 smallholders - there are no large 
coffee plantations.  A third industrial crop 
(pyrethrum) was revived at the end of the 1990s. 
23. Rwanda's agricultural policy targets 
food security.  This involves shifting from 
subsistence farming to market-driven 
agriculture, and reducing the number of people employed in the sector.  Liberalization of the agricultural sector began in 1998.  During the 1990s, customs duties were 
reduced, and in 1999 the last export tax – the 
tax on coffee – was abolished.  In 2003, customs duties in the sector, as defined by the ISIC, averaged 7 per cent, with a maximum of 30 per cent.  In December 2002, however, a special 25 per cent tax was introduced on 
imports of sugar.  The Rwanda Pyrethrum 
Board (OPYRWA) was privatized in 2000, and the privatization of tea factories is expected to begin in 2004.  Unprocessed agricultural and livestock products, inputs, and agricultural 
machinery and equipment are exempt from 
VAT.  There are no customs duties on agricultural inputs.  A credit line was established to facilitate the importation of chemical fertilizers. 
24. The manufacturing sector is still 
embryonic.  Production focuses above all on 
beverages, textiles, tobacco, cement, tea and coffee.  This is the most protected sector of the economy, with an average customs duty of 19 per cent.  The maximu m rate of 30 per cent is applied above all to imports of 
manufactured goods.  The generally positive escalation of tariffs reflects effective levels of protection that are much higher.  The production of leather and hides and of textiles could potentially contribute to the 
development of the sector and of exports.  The 
Government plans to give this sector a leading role in its poverty reduction strategy, by channelling investments into light industry, and, through the establishment of free-trade 
zones, to promote local processing of certain 
goods prior to export. 
25. Like other sectors, the mining sector 
suffered from the effects of the 1994 genocide.  In 2001, mining production stood at 77 per cent of its 1990 level.  However, the mining 
sector's contribution to exports has 
substantially increased over the past few years (35.5 per cent of total goods exports in 2002).  The sector is dominated by the Mining Production and Development Board (Redemi), 
and exports the totality of its production.  It is 
one of the non-agricultural sectors which, together with coltan, could contribute to the development of non-traditional exports. 
26. Rwanda is a net importer of services.  
The leading subsectors are wholesale and 
retail trade, public services, and communication.  The State remains a significant shareholder in the banking, fixed-line telephony and transport subsectors, which are included in the ongoing privatization 
programme.  Fixed telephony services are 
supplied by RwandaTel SA, a State company which also holds a 28 per cent share in MTN Rwandacell, the mobile telephony operator.  Two licences were granted in 2003 – one to 
MTN Rwandacell for fixed telephony and the 
other to RwandaTel SA for mobile telephony.  In practice, however, the two operators still remain specialized.  Financial services are not very developed; loans are generally short-term, and are chiefly used to finance 
distribution activities, the working capital 
needs of manufacturing enterprises, and tourist activities.  Rwanda's road density is among the highest in Africa.  However, the implicit tax on international trade due to the WT/TPR/S/129         Trade Policy Review 
Page xii  
 
 
 poor state of the roads exceeds US$160 per 
tonne.  The national airline (Rwandair Express) serves domestic and regional 
destinations.  Tourism revenue has yet to 
reach its pre-genocide level.  The Rwandan Office of Tourism and National Parks (ORTPN) was restructured in 2003 so that it could devote greater efforts to the 
implementation of sectoral policy and the 
promotion of tourism in Rwanda. 
27. Rwanda's commitments under the 
General Agreement on Trade in Services (GATS) are limited to certain professional services, adult education services, and sewage 
and similar services; hotel and restaurant 
services; and recreational, cultural and sporting services in centres promoting eco-tourism.  For each one of these services, Rwanda has undertaken not to maintain any 
market access or national treatment 
restrictions for modes of supply 1 to 3 (cross-border supply, consumption abroad and commercial presence) and not to maintain any restrictions on the presence of natural persons.  However, there has been no binding 
with respect to measures affecting the 
presence of natural persons for the supply of medical and dental services and hotel and restaurant services. 
(5) T
RADE POLICIES AND TRADING 
PARTNERS  
28. The reforms introduced by Rwanda 
since the end of the 1994 genocide reflect its commitment to liberalism and the multilateral trading system.  It is essential to pursue the macroeconomic and structural reforms, since 
this alone can provide the Rwandan economy with the competitiveness and dynamism it 
needs if it is to reap the full benefits of the 
country's participation in the multilateral trading system and its recent accession to the COMESA free-trade area. 
29. The delay in Rwanda's implementation 
of some of its multilateral commitments can be 
explained in part by the genocide, which coincided with the end of the Uruguay Round.  To enable Rwanda to make up the delay as quickly as possible, the international community must accord particular attention to 
its technical assistance needs, inter alia  in the 
areas of capacity building, improvement of 
supply capacity and integration of trade policy in its development strategy. 
30. Technical assistance should also 
enable Rwanda to transpose its previous 
bindings into the Harmonized System and to introduce the tax reforms needed to strengthen its commitment to the principles of the WTO.  These reforms, coupled with improved commitments under the GATS, would 
contribute to the transparency and 
predictability of the country's trade regime, and would attract the capital needed to diversify its economy.  In addition to providing technical assistance, the partner countries 
could help Rwanda in its unilateral reconstruction effort, inter alia  by eliminating 
practices which affect the markets for products 
of interest to Rwanda and by guaranteeing broader and more stable access to their 
markets.