Rwanda’s exports revenue grows, trade deficit widens
Wednesday, March 29, 2023
Workers pack biscuits at Adma International Ltd’s factory at Kigali Special Economic Zone in Gasabo District. Photo: Craish Bahizi

Rwanda's export value increased by 33.2 percent in 2022, mainly driven by commodity prices and strong domestic manufacturing activities exported in the region.

The overall export receipt amounted to $1,555.6 million, up from $1,167.8 million in 2021.

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This was announced on March 29, during the presentation of the Monetary Policy and Financial Stability Statement by the Central Bank that assessed the economic performance in 2022 and prospects for 2023.

John Rwangombwa, Central Bank Governor, said the growth is attributed to the increase in manufactured goods exported in the region and generally good commodity prices on international markets.

Traditional exports such as minerals, coffee and tea registered a 27.7 percent growth while non-traditional exports (manufactured products and horticulture) increased by 26.8 percent and re-exports by 39.3 percent.

On the other hand, the import bill into the country also grew by 26.9 percent amounting $4,060 million from $3,201million in 2021 linked to the continued domestic recovery of the economy.

"The rise in imports is due to the higher international commodity and fuel prices, combined with the increased demand for imported goods and services to support the continued economic recovery,” reads the statement.

Imports value of consumer goods, intermediary goods and energy increased by 21.6 percent, 23.0 percent and 92.1 percent respectively. In volume terms, their increase was 19.1 percent, 14.2 percent and 27.4 percent respectively.

Rwangombwa highlighted that the increase in imports bill is largely attributed to the high global inflation, especially high oil prices.

The exports against imports has consequently widened the trade deficit by 20.7 percent amounting to $2,459.5 million in the period under review.

This also had an impact on Rwanda’s foreign exchange rate with the franc depreciating by 6.05 percent against the dollar.

The annual headline inflation for 2022 closed high at 13.9 percent from 0.8 percent in 2021, owing to global economic turbulence and mainly poor agricultural production in the country.

Rwangombwa said that they expect better numbers in the beginning of the second half of 2023.

On the economic performance projection for 2023, the governor said that it will be announced following the consultation meetings held with the Ministry of Finance.