page_title: Rwanda
section_title: Economy
hierarchical_section_title: Rwanda / Economy
caption_attribution_description: English: Parc National des Volcans, Rwanda. August 4, 2005. Gorilla Mother and Baby - for an infant gorilla, Mama is food, transport, and playground. Credit: by Sarel Kromer.
context_page_description: Rwanda, formerly Ruanda, officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley where the African Great Lakes region and East Africa converge. One of the smallest countries on the African mainland, its capital city is Kigali. Located a few degrees south of the Equator, Rwanda is bordered by Uganda, Tanzania, Burundi, and the Democratic Republic of the Congo. It is highly elevated with its geography dominated by mountains in the west and savanna to the east, with numerous lakes throughout the country. The climate is temperate to subtropical, with two rainy seasons and two dry seasons each year. Rwanda has a population of over 12.6 million living on 26,338 km² of land, and is the most densely populated mainland African country.
  The population is young and predominantly rural, with a density among the highest in Africa. Rwandans are drawn from just one cultural and linguistic group, the Banyarwanda, although within this group there are three subgroups: the Hutu, Tutsi and Twa. The Twa are a forest-dwelling pygmy people and are often considered descendants of Rwanda's earliest inhabitants.
context_section_description: Rwanda's economy suffered heavily during the 1994 genocide, with widespread loss of life, failure to maintain infrastructure, looting, and neglect of important cash crops. This caused a large drop in GDP and destroyed the country's ability to attract private and external investment. The economy has since strengthened, with per-capita GDP (PPP) estimated at $2,444 in 2019, compared with $416 in 1994. Major export markets include China, Germany, and the United States. The economy is managed by the central National Bank of Rwanda and the currency is the Rwandan franc; in December 2019, the exchange rate was 910 francs to one United States dollar. Rwanda joined the East African Community in 2007, and has ratified a plan for monetary union amongst the five member nations, which could eventually lead to a common East African shilling.
  Rwanda is a country of few natural resources, and the economy is based mostly on subsistence agriculture by local farmers using simple tools. An estimated 90% of the working population farms, and agriculture constituted an estimated 32.5% of GDP in 2014. Farming techniques are basic, with small plots of land and steep slopes. Since the mid-1980s, farm sizes and food production have been decreasing, due in part to the resettlement of displaced people. Despite Rwanda's fertile ecosystem, food production often does not keep pace with population growth, and food imports are required,But in recent years, with the growth of agriculture, the situation has improved.
  Subsistence crops grown in the country include matoke (green bananas), which occupy more than a third of the country's farmland, potatoes, beans, sweet potatoes, cassava, wheat and maize. Coffee and tea are the major cash crops for export, with the high altitudes, steep slopes and volcanic soils providing favourable conditions. Reports have established that more than 400,000 Rwandans make their living from coffee plantation. Reliance on agricultural exports makes Rwanda vulnerable to shifts in their prices. Animals raised in Rwanda include cows, goats, sheep, pigs, chicken, and rabbits, with geographical variation in the numbers of each. Production systems are mostly traditional, although there are a few intensive dairy farms around Kigali. Shortages of land and water, insufficient and poor-quality feed, and regular disease epidemics with insufficient veterinary services are major constraints that restrict output. Fishing takes place on the country's lakes, but stocks are very depleted, and live fish are being imported in an attempt to revive the industry.
  The industrial sector is small, contributing 14.8% of GDP in 2014. Products manufactured include cement, agricultural products, small-scale beverages, soap, furniture, shoes, plastic goods, textiles and cigarettes. Rwanda's mining industry is an important contributor, generating US$93 million in 2008. Minerals mined include cassiterite, wolframite, gold, and coltan, which is used in the manufacture of electronic and communication devices such as mobile phones.
  Rwanda's service sector suffered during the late-2000s recession as bank lending, foreign aid projects and investment were reduced. The sector rebounded in 2010, becoming the country's largest sector by economic output and contributing 43.6% of the country's GDP. Key tertiary contributors include banking and finance, wholesale and retail trade, hotels and restaurants, transport, storage, communication, insurance, real estate, business services and public administration including education and health. Tourism is one of the fastest-growing economic resources and became the country's leading foreign exchange earner in 2007. In spite of the genocide's legacy, the country is increasingly perceived internationally as a safe destination. The number of tourist arrivals in 2013 was 864,000 people, up from 504,000 in 2010. Revenue from tourism was US$303 million in 2014, up from just US$62 million in 2000. The largest contributor to this revenue was mountain gorilla tracking, in the Volcanoes National Park; Rwanda is one of only two countries i
caption: Mountain gorillas in Volcanoes National Park
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