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Press release:
Continued reforms and technical assistance should help Rwanda in its
efforts to achieve a dynamic economy
The present Review has allowed Members to come to a better
understanding of Rwanda's economic situation, its reconstruction
efforts since the 1994 genocide, the enormous challenges it still
faces and its reform agenda. For this, we have been greatly helped by
Rwanda's delegation, led by Prof. Paul Manasseh NSHUTI, Minister of
Commerce, Industry, Investment promotion, Tourism and Cooperatives,
and by the discussant, Mr. Neil McMillan.
Members commended Rwanda on its macroeconomic reform efforts, which
have resulted in its economic growth during the past ten years. They
noted Rwanda's dependence on tea and coffee, and stressed that its
high production costs, due to poor infrastructure, energy shortages
and high transport costs related to its landlocked geographical
situation, needed to be addressed to improve its supply-side capacity
and diversify its economy. To this end, Members welcomed government's
economic programme “Rwanda Vision 2020”. Debt relief under the HIPC
initiative and increased foreign direct investment should also help.
Members commended Rwanda on the role it played in helping to move
forward the Doha Development Agenda, and were supportive of its intent
to establish a National Committee on the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ issues. Members
congratulated Rwanda for its participation in the free-trade area of
COMESA and welcomed the increase in its trade with the other members.
However, Members warned against challenges and complexity of active
involvement in several overlapping trade regimes. They also noted the
potential gains for Rwanda from improvements in market access that
would arise from a completion of negotiations under the Doha
Development Agenda, especially in agriculture. Some concerns were
however raised about the difficulties faced by Rwanda in fulfilling
its obligations.
Members stressed that further macroeconomic and structural reforms
would allow Rwanda to increase its benefits from the multilateral
trading system, and invited Rwanda to further improve the transparency
and predictability of its trade regime. Members were pleased that
Rwanda was participating in the Integrated Framework (IF) and
supported the Government's call for the Diagnostic Trade Integration
Study (DTIS) to be completed as soon as possible. They considered that
the IF could help to meet priority technical assistance needs, and
integrate trade reforms into Rwanda’s overall poverty reduction
strategy.
Some clarification was sought on: the informal sector; the enactment
of the new public procurement law; existing legislation on
intellectual property rights; institutional framework; judiciary
reform; investment regime; export promotion strategy; privatization;
competition policy; services; sanitary and phyto-sanitary measures;
other duties and charges; and price controls.
Members appreciated the responses provided by the Rwandan delegation.
I think that this meeting has allowed a profound reflection on
assistance needed by Rwanda in the reconstruction of its economy. It
has drawn attention to Rwanda's determination to continue with
economic reforms, as well as to areas in which policy reforms could be
further enhanced. I trust that the main considerations of this Review
will be included into the Integrated Framework process in order to
reinforce the linkages between trade policy and poverty reduction
strategy. I urge all Members to support Rwanda in its efforts to
tackle the challenges it faces, and to be attentive to its request for
technical assistance.