Rwanda's GDP growth slowed down to 5.9 per cent last year as a result of drought and floods, which affected agricultural production.

The country had projected a 6 per cent GDP growth in 2016, but a report by the National Institute of Statistics of Rwanda (NISR) released on March 15 shows that the country missed the target marginally.  
Last year, Rwanda’s GDP rose to Rwf6,618 billion ($8 billion), from the Rwf5,956 billion ($7.2 billion), registered in 2015.

READ: Rwanda economy slowed down 2016

The NISR data shows that growth in the agricultural sector averaged 4 per cent in the first half but slowed down to 1 per cent in the second half of 2016 due to a poor harvest.

“The country has to be more focused on both short and long term strategies to increase agricultural productivity as one of our economic cornerstones,” said Teddy Kaberuka, a Kigali-based economist.

He said that the government must invest in large-scale irrigation schemes to mitigate the effects of drought.
The industrial and services sectors have remained the main drivers of the economy, recording 7 per cent growth each. Growth in the industrial sector was helped by manufacturing, which Rwanda is laying emphasis on as it seeks to cut its import bill and create more jobs. 

Made in Rwanda drive
The campaign has boosted the manufacturing, textiles, leather and clothing industries, which grew by 10 per cent while food processing increased by 8 per cent.

The increasing capacity of local cement makers helped to boost the non-metallic minerals contribution to GDP by 21 per cent. Construction growth slowed to 5 per cent from 15 per cent in 2015, largely because some major projects such as the Kigali Convention Centre and the Marriot Hotel were completed.
Bank of Kigali chief executive, Diane Karusisi is, however, optimistic that the commissioning of these projects will start generating revenue will boost Rwanda’s economic activities.

In the services sector, hotels and restaurants grew by 11 per cent, reflecting recent developments in conference tourism. Transport activities increased by 8 per cent, boosted by air transport which increased by 15 per cent. Rwanda also hosted a number of events last year including the 2016 African National Championships, the World Economic Forum on Africa, the 27th Summit of the African Union, Kwita Izina, the Global Africa Investment Summit and the Meeting of the Partners to the Montreal Protocol.