KIGALI - The Governor of the Central Bank, Francois Kanimba, has said that Rwanda’s economy would grow by between 7 and 8 percent in 2010.
He said this during the presentation of the monetary policy and financial stability statement yesterday in Kigali.
The Governor attributed the expected projections on a monetary system driven by sustainable increase in crop productivity through the use of fertilizers and land consolidation.
Agriculture has been the major contributor to the national Gross Domestic Product for the last two years.
Last year it contributed 10.4 percent and this prompted the government to take the decision of closely working with farmers.
“The contribution of agriculture is not accidental but its joint efforts by the government and farmers in the crop intensification programme,” the Minister of Finance, John Rwangombwa, said.
Other sectors expected to contribute to growth include mining and construction.
To realise this, government is in talks with Kigali City Council to ease the process of issuing construction permits from 200 days to 50 days which will have a tremendous impact on the sector.
Kanimba said credit to private sector is likely to increase by 20 percent after the meltdown that was registered last year.
“When you consider the new loans approved by the banks, there is a recovery in the credit market,” Kanimba assured.
He noted that in the second half of last year banks started a normal lending behaviour but tightened on the risk management system.
During the presentation, it was revealed that governments has targeted an increase in the number of Small and Medium Enterprises (SME’s) and facilitate them to build their capacity to have bankable projects.
Last year’s economic growth experienced external shocks driving decline in exports and increase in imports especially food and health care products.