Rwanda's coffee output in 2010 is expected to rise to at least 433,000 60-kg bags from 233,000 last year, due to favourable weather conditions across the country's main coffee-growing areas this year, the country's central bank said. This is in stark contrast to an announcement by the country's Coffee Development Authority (Ocir-Cafe) in November which downgraded the projection for this year from 433,000 to 333,000 bags due to an extended dry spell in some parts of the country. According the central bank, output is also expected to be aided by the commencement of production from young coffee trees planted in the past five years. It added that the main coffee regions received well-distributed rains since the start of the year, aiding bean formation and development which boosted yields.
Entries in Economy (8)
The National Institute of Statistics last week announced that the services sector is now doing well, a sign the economy of Rwanda is recovering from last year's global financial crisis. During the recession, financial institutions almost stopped lending, receipts from exports reduced, donors scaled down funding some of the projects and investments were postponed.
Rwanda's government has launched a seven-year blueprint to improve economic output that includes plans to massively increase electricity generation and have at least 80 percent of its people accessing financial services. Prime Minister Bernard Makuza said on Wednesday President Paul Kagame's plan was to steer the tiny central African economy from a poor nation and towards a middle-income country status during his second seven-year ending in 2017.
Rwanda's economy expanded by 9.4 percent in the second quarter of 2010 from a year earlier, driven by 15 percent growth in services, the largest sector in the central African country, official data showed on Wednesday.
Rwanda’s economy expanded 6.2 percent in the fiscal year through June, led by services, the National Institute of Statistics of Rwanda said. Growth slowed from 9.8 percent the year before, the institute said on its website yesterday.
Rwanda expects its economy to grow at a rate of 7-10 percent in 2010, up from its previous forecast of 6-7 percent, on the back of a better performance in the agriculture and services sectors. "This high growth is driven by continuing performance in agriculture production and a significant recovery in services and industry," a government statement obtained by Reuters said.
Dow Jones: Fitch Ratings upgraded Rwanda, citing the African nation's "strong growth" and an improvement in its business environment. It noted the country has posted an "uninterrupted" period of strong economic growth that has more than doubled its income per person since 1994, when genocide killed some 800,000 people.
Rwanda’s economy will probably expand 7 percent this year as the government steps up subsidies to farmers and construction expands, Finance Minister John Rwangombwa said. Economic growth may accelerate further to 8 percent in 2011, after reaching 6 percent in 2009, Rwangombwa said in an interview yesterday in Abidjan, the commercial capital of Ivory Coast.