The formal trade deficit dropped to $226.75 million in May, reflecting a 2.32% decrease from April 2025 and an even more substantial 18.42% decline compared to the same period last year. The reduction was primarily driven by a strong rebound in domestic exports and moderated import growth.
Rwanda's total exports rose to $177.31 million, up 19.39% from April. Domestic exports, mainly goods produced within Rwanda, reached $127.81 million, marking a monthly increase of 21.24%, although still 39.58% lower than in May 2024.
The export rebound was largely driven by traditional mainstays, particularly tea, coffee, and fresh produce such as avocados, which generated US$31.98 million, representing a 12.64% increase from April and a 40.38% rise year-on-year.
Exports of animal and vegetable oils soared to $8.79 million, up 20.70% from April and a remarkable 358.48% compared to the same month last year. Beverages and tobacco, though modest in absolute value at $0.93 million, recorded a dramatic surge in annual growth rate of over 12,700%.
Machinery and transport equipment also contributed to the rebound with a 192.34% increase compared to May 2024, despite showing a monthly decline.
Meanwhile, re-exports rose to $49.51 million, representing a 14.87% increase from April, although this remained 16.25% below the level registered in May 2024. Re-exports continued to be driven by regional demand, particularly from the Democratic Republic of Congo.
On the import side, Rwanda imported goods worth $404.06 million in May, a 6.15% increase from April. Despite the monthly uptick, this figure reflects a 26.35% decline compared to May 2024.
Imports were largely composed of mineral fuels and lubricants, valued at $60.48 million, which rose by 16.12% month-on-month. Machinery and transport equipment followed, amounting to $83.22 million, an increase of 12.66% from the previous month. Food and live animals, which cost $75.76 million, saw a modest year-on-year increase of 4.14%.
A striking development in May was the sharp rise in imports from Saudi Arabia, which surged by over 1,026% year-on-year, indicating a spike in petroleum or fuel-related imports. This import surge placed Saudi Arabia among Rwanda's top import sources for the month.
In terms of trade partnerships, the United Arab Emirates remained Rwanda's largest export destination, purchasing goods worth $44.68 million. The Democratic Republic of Congo followed with $22.31 million in imports from Rwanda, while China was third at $14.07 million.
On the import side, China led the way with $96.88 million in goods sold to Rwanda. Tanzania followed with $47.09 million, while India contributed $35.97 million. Imports from Kenya also saw a recovery, rising to $32.87 million after a significant slump earlier in the year.
Most of Rwanda's trade was conducted via land routes, with land transport accounting for $357.25 million in imports and $84.60 million in domestic exports. However, air transport also saw increased activity, with $46.81 million in imports and $43.21 million in exports handled through airports, highlighting a growing reliance on air freight for high-value or time-sensitive goods.
Wycliffe Nyamasege
Source : https://en.igihe.com/business-62/article/rwanda-s-trade-deficit-shrinks-as-exports-surge-in-may-2025
