The New Africa Magazine/ Dr Filomena Mathins

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that net private and official transfers are sufficient to keep the current account deficit at acceptable levels. The government also has taken steps to ensure that tea, coffee and industrial production at least maintains pre-war levels. The government has loosened restrictions on foreign exchange in an attempt to stimulate nontraditional exports. It has established reasonably tight control of its border with Uganda in an effort to reduce smuggling. Rwanda was unable to import or export goods easily through Uganda until the RPF came to power in 1994. This route now functions well. An alternative route through Tanzania to Dar es Salaam is more arduous and costly, although Tanzania has facilitated the operation of this route in efforts to compete with Mombassa in Kenya. Political insecurity has disrupted much of the trade between Rwanda and the Congo. Trade with Uganda is booming, in part because of family and business networks operated by returned refugees. The same was true of Burundi until neighboring countries imposed sanctions in 1996. Rwanda is a member of three regional trade organizations: the Common Market for Eastern and Southern Africa (COMESA), the Communauté Economique des États de l’Afrique (CEEAC), and the Communauté Economique des Pays des Grands Lacs (CEPGL). The country has also made a bid to join the East African Cooperation (EAC). Cattle have played an important political and social role in the country under the Tutsi, whose dominance was traditionally based on the ubuhake (a feudal patron-client relationship based on possession of cattle). Most farmers have some livestock, though animal husbandry is generally considered a supplemental source of income. Fishing in Rwanda is underexploited. Lake Kivu is well-stocked and could support an annual catch of 5,000 tons. The potential of Lake Ihema has also underutilized. Manufacturing is a relatively minor source of Rwanda’s revenue, employing about three percent of the labor force and contributing only about 17% of the nation’s GDP. The small manufacturing sector is based on processing agricultural products and low-technology consumer items such as beer, matches, sugar, and soap. Industry suffered severe setbacks in 1994, when many skilled workers were put to death or were forced to flee. Half of the country’s 120 working factories were damaged or looted.
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The New Africa Magazine/ Dr Filomena Mathins

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