Rwanda’s economy expanded 7.8% by September, Finance Minister, Claver Gatete announced Wednesday morning.
He said GDP for just 3rd quarter rose to Rwf1,393 trillion ($2b) from the initial Rwf1,233 trillion($1.8) in the same quarter of 2013. Rwanda’s GDP is estimated to be $7.5b.
This follows an increase of 7.5% and 6.1% in the first and second quarters of 2014 respectively.
Yusuf Murangwa, Director General of National Institute of Statistics (NISR) said the services sector contributed 47% of the total GDP after it grew 10% hence outperforming other key sectors in the third quarter of 2014.
The service sector’s performance key driver is information and communication technology, especially revenues from telecoms, which registered 25% growth. Transport, government spending and trade activities played key role too.
Agriculture contributed 34% after registering a 6% record growth, mainly resulting from increase in food crop production, such as vegetables. Livestock and fishing had a significant contribution.
Murangwa says individual farmers’ productivity increased and created an expanded aggregated productivity of the sector. This, he said, “reduced food prices at the market.”
Manufacturing contributed 14 % to the GDP, but experienced a 5% overall sector performance decline. Leeward adjustments in taxes and less subsidies on products helped government save approximately $100m; 5% of GDP.
Economist Leonard Minega Rugwabiza believes the decline in manufacturing was partly caused by the lack of raw materials supply.
Rugwabiza said most industries process serials, but their production was low in the 3rd quarter, compared to the 2nd quarter.
Finance Minister Claver Gatete said reduced production was mainly in beverages, tobacco, chemical, rubber, plastic, textile, leather and clothing.
The Minister blamed the decline on lack of access to adequate infrastructure such as access to water and electricity.
Meanwhile, mining and quarrying contributed 22%, trade 12%, real estate 14% and construction 7%.
By: Lilian Gahima