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Overview

Rwanda has recently enjoyed strong economic growth rates, creating new business prospects and lifting people out of poverty. The Government of Rwanda is actively working to develop the economy and reform the financial and business sectors. But Rwanda remains a small, landlocked country faced with high energy and transport costs and the highest population density in Africa. Eighty percent of the population relies on subsistence agriculture. A majority of the population lives on less than $1 per day and nearly nine in ten live on less than $2 per day. Rwanda’s major foreign exchange earners include mining, tourism, coffee and tea and growth in these sectors will be critical for economic development and poverty reduction.

Response and Results

The U.S. Agency for International Development (USAID) committed nearly $12.5 million in fiscal year (FY) 2008 to increase economic growth and reduce hunger. USAID supports the Government of Rwanda’s goals set forth in Vision 2020 and the Economic Development and Poverty Reduction Strategy (EDPRS). Economic growth programs improve specialty agribusinesses, encourage sustainable ecotourism, support the dairy sector, develop land policies and provide food aid.