What’s driving Rwanda’s export growth?

Rwanda’s merchandise export revenue rose by 6.9 percent in 2024, reaching $1.691 billion (approximately Rwf2.4 trillion), up from $1.582 billion (approximately Rwf2.2 trillion) in 2023. The volume of exports also grew significantly, increasing by 14.8 percent, according to the latest figures from the National Bank of Rwanda (BNR). The growth of merchandise exports – tangible goods that a country produces and sells to buyers in other countries – outpaced imports. Imports rose by 5.8 per cent in value and 10.2 per cent in volume over the same period. Officials attributed the increase in export earnings to growth in domestic manufacturing and stronger performance in traditional export sectors such as coffee, tea, minerals, hides, and skins. Prudence Sebahizi, Minister of Trade and Industry, noted that Rwanda is also stepping up efforts to diversify its export base beyond traditional products. “Notably, construction materials and agro-processed products have emerged among Rwanda’s top-performing exports in 2024,” he said. “These products not only featured prominently among our leading exports, but also recorded positive growth compared to their export values in the previous year,” he added. The value of traditional exports rose by 9.4 per cent in 2024 compared to 2023, as higher international prices for cassiterite and tea offset the modest performance in coffee exports, BNR said. ALSO READ: Rwanda’s inflation decreased three-fold in 2024 - Central Bank Governor Agro-processed food items and horticulture products like fruits, vegetables, and flowers led to the growth of non-traditional exports by 5.7 per cent in 2024, thanks in large part to the increase in regional demand as well as government initiatives to promote value addition and industrialisation. Key drivers Teddy Kaberuka, an economic analyst, told The New Times, the growth in exports is linked to an increase in the country's gross domestic product (GDP). “When GDP rises, it often reflects improved production capacity. Farmers may be producing more – possibly due to favorable weather conditions – and other sectors of the economy might also be performing better,” he observed. “Altogether, this leads to higher overall output, which in turn boosts export levels,” he added. ALSO READ: Rwanda’s economy grew 8.9 per cent in 2024 – Statistics body Jean-Claude Rwubahuka, another economic analyst, stated that the increase in exports is largely attributed to the strong relationship between Rwanda and the countries to which goods are exported. “We couldn't have exported to these countries if there hadn't been good relations,” he noted, adding that the country's strategy to attract investors has played a significant role. “The textile industry, which has experienced notable growth, now includes companies exporting clothing that didn’t exist ten years ago, and their production capacity continues to expand,” he weighed in. ALSO READ: Why Rwanda suspended 80% levy on raw hides export out of EAC Rwubahuka emphasised that investment in infrastructure is crucial, suggesting that continued improvements in transportation systems would facilitate the activities of investors and exporters. “The quality of goods is also essential. Rwanda’s products are thoroughly checked to meet international market standards, and consistent quality contributes to export success,” he said. Exporters speak out Herman Uwizeyimana, the General Manager of Fisher Global Ltd, an exporter of dried chilli based in Rwamagana District, highlighted that various incentives have encouraged farmers to invest more in agriculture, ultimately boosting productivity. He pointed out that support measures such as livestock insurance have given farmers the confidence to invest without the fear of financial loss. Additionally, subsidies for organic fertilisers and the provision of lime to improve soil lacking calcium or calcium-magnesium compounds have played a crucial role in increasing yields. “Various efforts have also encouraged Rwandans to engage more in cash crop farming rather than relying solely on food crops,” he said. “That shift is one of the reasons why exports have increased.” Sharing his own experience, Uwizeyimana noted a significant rise in his chilli exports. “I used to export between 200 and 250 tonnes of dried chilli annually, but in 2024, I managed to export 300 tonnes,” he added. Jeanne Sheila Uwibona, a honey exporter, called for the government to support exporters in obtaining essential certifications, such as organic certification, to meet the specific requirements of different countries. She also advocated for support in consolidating shipments into a single container to reduce high air cargo shipping costs and address buyers' concerns. Import bill rose According to BNR, merchandise imports rose by 5.8 per cent, reaching $4.55 billion in 2024, driven by higher demand for capital goods, intermediate goods, and fuel. The increase contributed to a 5.2 per cent widening of the trade deficit, reaching $2.858 billion, indicating that Rwanda continues to import more than it exports. Despite this, the report highlighted an improvement in the export-to-import ratio, suggesting a positive shift in the trade balance.

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What’s driving Rwanda’s export growth?