The latest formal external trade in goods report revealed a 15.7% decrease in the value of Rwanda's domestic exports in October 2024 compared to September 2024. However, exports grew by 61.8% compared to October 2023.
By October 2024, the trade deficit stood at $363 million, driven by a 23.9% increase in the value of imports compared to October 2023.
Key imports included machinery and transport equipment worth over $103 million and manufactured goods valued at $100 million.
Overall, imports rose from $507.9 million in October 2023 to $629.7 million in October 2024, marking a 23.9% increase.
The Governor of the National Bank of Rwanda recently told the Parliament that the growing import bill is worsening the trade deficit due to declining prices for Rwanda's key exports.
'Our main exportsâ€"minerals, coffee, and teaâ€"have experienced price drops, reducing foreign earnings. This has widened the trade deficit, affecting the foreign exchange market,' he said.
Governor Rwangombwa explained that the demand for foreign currency needed for imports has increased, while export earnings have declined.
He noted that reducing the trade deficit would require favorable conditions, such as discovering high-value minerals, but emphasized that addressing the trade imbalance would take time due to the changing dynamics of the global economy.
The Government's development plan targets a 13% annual growth in exports and aims to boost private sector investment from $2.2 billion to $4.6 billion by 2029.
IGIHE
Source : https://en.igihe.com/news/article/rwanda-s-trade-deficit-rises-by-11-in-october-2024
