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Rwanda
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Situation and Cooperation
Dealing with the aftermath of the genocide of 1994 is still a major challenge for Rwanda. Reconciliation and the avoidance of new conflicts form the basis for stable development.
Large areas of infrastructure have been restored, but living conditions are very poor, especially for the rural population. More than half the population lives below the poverty line. The average life expectancy in Rwanda is 55 years, and population growth is high, at about 3 per cent per annum In the Human Development Index (HDI 2011) Rwanda is ranked 166th out of 187 countries.
The Government of Rwanda has adopted an Economic Development and Poverty Reduction Strategy (EDPRS) for the period 2008 to 2012/13. The EDPRS aims to reduce the percentage of Rwandans living in poverty from 57 per cent in 2006 to 46 per cent in 2012. The strategy is part of the "Vision 2020". With this ambitious programme, the government aims to make Rwanda a middle-income country by 2020.
Civil society, the press and the opposition have traditionally been weak in Rwanda and have little room for manoeuvre. A decentralised administrative system is, however, to involve the people to a greater extent in political decision-making. In the year 2000, a decentralisation act was passed, under the provisions of which authority is to be transferred increasingly to decentralised bodies. In February/March 2011 local elections were held. As at the 2008 parliamentary elections and the 2010 presidential elections observers criticised the lack of transparency of the electoral procedure. The elections were, however, largely peaceful, which marks an important step towards democratising Rwanda.
The Rwandan government is a vigorous advocate for gender justice. Although many women in rural areas are disadvantaged as a result of tradition, women play an important part in decision-making processes at national political level. The constitution requires that at least 30 per cent of seats in both chambers of Rwanda’s parliament be held by women. Rwanda has a higher proportion of women in its parliament than any other country in the world, with 56 per cent of seats held by women.
Rwanda's economy
After years of very high average growth rates of around 11 per cent, Rwanda's economy was hard hit by the global economic and financial crisis: in 2009 economic growth slowed to 4 per cent. There was a fall in the prices of the country's main export products – coffee and minerals – and fewer tourists visited Rwanda. There was also a decline in remittances from Rwandan migrants working abroad. As of 2010, however, the economy began to bounce back. Growth is expected to be of the order of 8.8 per cent in 2011, and 8 per cent is forecast for 2012.
Along with Kenya, Uganda, Tanzania and Burundi, Rwanda has been a member of the East African Community (EAC) since 2007. This body is intended to be an economic and customs union. In July 2009 Rwanda introduced the joint EAC customs tariffs, which it hopes will help it increase its exports.
Major shortcomings in the country's infrastructure are, however, a serious obstacle to economic development. The energy supply situation is particularly critical. The output of the country's few hydro-power plants has dropped over recent years because of the lack of rainfall and investment. A power plant is to be built on Lake Kivu that will run on the methane gas available there. Under the regional leadership of the Nile Basin Initiative (NBI), Rwanda is also pushing ahead with efforts to harness its hydro-power potential and is working to put in place the interregional transmission network. The Nile Basin Initiative brings together the Democratic Republic of the Congo, Burundi, Egypt, Kenya, Sudan, Tanzania and Uganda, as well as Rwanda.
The private sector is important for the further development of Rwanda; the government is promoting it by putting in place an enabling environment. In 2012 Rwanda once again improved its ranking on the World Bank's Doing Business Index, which looks at the enabling environment for business activities. Rwanda has now moved up to 45th place out of the 183 countries listed. Since the country has few mineral resources, its greatest economic potential lies in building up its small and medium-sized businesses, especially in the industrial and services sector, which still offer much potential for development.
Moves to stem corruption will be an important factor in developing the private sector. The government has made important progress here. Rwanda has consistently improved its ranking on the Transparency Perceptions Index produced by the non-governmental organisation Transparency International over the last six years, and was ranked 49th of the 182 countries listed in 2011.
Environment
Strong population growth is placing pressure on natural resources. Overuse and erosion are degrading soils to an ever greater extent and further reducing the amount of farmland available. More than 90 per cent of farms are smaller than one hectare. It is hoped that a process of land reform will boost productivity by amalgamating small, unprofitable parcels of land.
The government is endeavouring to stem uncontrolled deforestation. More than 90 per cent of Rwanda's energy needs are met by fuelwood. If this rate of consumption were to remain unchanged, the country would have no forest cover left in 15 years. The government is attempting to prevent this, by placing remaining forests under protection and fostering the development of alternative, more environmentally sound energy sources.
Peacebuilding
Rwanda's foreign policy aims above all to consolidate the country's external and internal security. The government is endeavouring to become more closely involved in regional communities, to step up relations with the country's immediate neighbours, work closely with international donors and potential investors and play an active role in international organisations and United Nations peace missions.
Relations with the neighbouring Democratic Republic of the Congo in particular remain complex. In 1998 Rwandan troops crossed the border into the neighbouring state in order to take action against the Hutu militia, the Forces Démocratiques de Libération du Rwanda (FDLR), which was operating there. The military action was ended in 2002 and a peace agreement signed with the Democratic Republic of the Congo. Since 2009 relations between the two East African states have improved significantly; Rwandan and Congolese armed forces are today taking joint action against the FDLR rebels. The two countries have once again exchanged ambassadors.
Within the scope of its development cooperation with Rwanda, Germany is seeking to promote the peace process in the region. Poverty reduction and conflict management work hand in hand here. Germany has also been involved in a regional demobilisation programme under the leadership of the World Bank (the Multi-Country Demobilization and Reintegration Program, MDRP). Beyond this, Germany has also contributed to the reintegration of refugees and ex-combatants within the framework of bilateral development cooperation.
Furthermore, under the auspices of the Civil Peace Service, Germany is providing ongoing support to the Republic of Rwanda with measures in the field of youth work, trauma therapy, and the networking of Rwandan non-governmental organisations involved in conflict management activities.
Priority areas of German cooperation with Rwanda
At government negotiations in November 2011, Germany pledged 60 million euros to Rwanda for a period of three years, of which 41.5 million euros were earmarked for Financial Cooperation and 18.5 million euros for Technical Cooperation . Rwandan-German development cooperation will in future focus on two priority areas:
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Decentralisation
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Sustainable economic development (private sector promotion and vocational education and training).
The Rwandan government's development-oriented policies are being supported by means of a direct contribution to the state budget (budget support): 21 million euros from the Financial Cooperation funds provided by Germany for Rwanda's fiscal years 2012/13 to 2014/15 take the form of general budget support. Close dialogue between the Rwandan government and budget support donors, and auditing of the state budget by the Rwandan audit office are among the steps taken to ensure that support is used for the proper purposes. A total of some 20 per cent of the Rwandan budget is financed by joint budget support.
Projects and programmes in the former priority area of health are to be wound up at the end of 2012, in response to the express wishes of the Rwandan government. The background to this decision is the discussion initiated by the Rwandan government and conducted with its development partners on a division of labour among donors, which has led to a reorganisation of certain programmes.
Decentralisation
More than 80 per cent of Rwandans live in rural areas. Germany is supporting the country's decentralisation process in order to improve their living conditions. The authorities at district and municipal levels are best able to judge what local infrastructure should be extended and which services are most acutely needed. Civil society too can exert greater influence at local level, as well as better monitoring the work of authorities and making more use of their right to have a say.
Local infrastructure measures are being financed under the Common Development Fund (CDF), which became the Rwanda Local Development Support Fund (RLDSF) in August 2011. The funds are being used, for instance, to build schools, markets and bus stations, and to terrace cropland in order to prevent soil erosion. Germany is supporting the Fund within the scope of Financial Cooperation.
As part of its Technical Cooperation, Germany is helping develop the capacities of authorities at national and local level, promoting fiscal decentralisation in Rwanda and working with civil society with a view to strengthening citizen participation in decision-making processes.
Sustainable economic development
Around 80 per cent of Rwanda's population depends on agriculture, which is dominated by subsistence farming. If poverty is to be pushed back, more people will have to move from subsistence farming into crafts and trades or the services sector. The Rwandan government thus aims to create 150,000 jobs every year in sectors other than agriculture. The private sector plays an important role in these plans to develop the Rwandan economy. In view of this, German support covers two priorities:
Firstly, a pro-poor growth programme is designed to strengthen the economic potential of small and medium-sized enterprises, thereby generating additional income and creating jobs. To this end, various ministries, public authorities and organisations need to be supported and networked.
Secondly, vocational training is to be improved and made more practice-oriented so that it is better aligned with the needs of the private sector. This will be achieved by giving support to training institutions, and through upgrading measures for the training staff. Germany has also provided Rwanda with support to set up a national Workforce Development Authority (WDA). In future cooperation in the field of vocational education and training is to be stepped up.
Health, family planning, HIV/AIDS control
Rwandan-German cooperation in the former priority area of health is to be wound up at the end of 2012 in response to the express wishes of the Rwandan government, and as a consequence of the ongoing process of establishing a division of labour among donors. The end of activities in this sector is the subject of close consultation with the Rwandan government and development partners still active in this sector.
At the initiative of Belgium and Germany, donor coordination in the health sector has been improved and sectoral budget support has been introduced. In 2009, Germany provided six million euros as a contribution to sectoral budget support.
The Rwandan government has developed a national health strategy, stepped up activities to combat HIV/AIDS and introduced a pro-active family planning policy.
The Health Sector Strategic Plan (2009-2012) is an important step for the attainment of the health Millennium Development Goals (MDGs). An anti-malaria campaign has reduced malaria-related deaths by 66 per cent. Child mortality has fallen by one-third.
The shortage of doctors is a cause for concern, however. There are just five doctors for every 100,000 people in Rwanda, compared with 337 in Germany. The availability of medical staff is crucial in combating poverty. Germany is therefore supporting the establishment of decentralised health structures in rural areas and practice-based training and upgrading of medical staff.
The introduction of a health insurance scheme has greatly improved health care access for large sections of the Rwandan population. About 95 per cent of the population now have health insurance coverage. Germany has helped Rwanda put the system on a more sustainable footing.
In family planning policy, too, progress has been achieved. The use of modern contraceptives has increased enormously; in 2010 45 per cent of couples were using modern methods. Germany is assisting Rwanda to develop strategies for the field of family planning.
Debt relief
Rwanda is highly indebted. In 2002, the government presented a full PRSP, and five years later this poverty reduction strategy was updated for the years 2007 to 2012/2013. Having been accepted into the Enhanced HIPC Initiative, the country was granted a first debt relief package by the World Bank and the International Monetary Fund. In the spring of 2005, Rwanda reached the HIPC Initiative completion point. The country thus also qualified for the Multilateral Debt Relief Initiative (MDRI), adopted by the G8 in May 2005. Rwanda will now see debts totalling about 1.8 billion US dollars cancelled. The German share of this debt cancellation amounts to 52.7 million euros.
Information
Publications
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In partnership for a strong Africa: Priorities of German development policy
Topics 164
(PDF 3.8 MB, accessible) -
Decentralisation and local self-government
Leaflet
(PDF 372 KB, accessible) -
Sexual and Reproductive Health and Rights, and Population Dynamics
A BMZ Policy Paper
(PDF 314 KB, accessible) -
Promoting Health – Fighting HIV/AIDS
Topics 178
(PDF 815 KB, accessible) -
Promoting democracy in German development policy: Supporting political reform processes and popular participation
Special 137
(PDF 482 KB)
