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Rwanda vs. Uganda

Economy

RwandaUganda
Economy - overview

Rwanda is a rural, agrarian country with agriculture accounting for about 63% of export earnings, and with some mineral and agro-processing. Population density is high but, with the exception of the capital Kigali, is not concentrated in large cities - its 12 million people are spread out on a small amount of land (smaller than the state of Maryland). Tourism, minerals, coffee, and tea are Rwanda's main sources of foreign exchange. Despite Rwanda's fertile ecosystem, food production often does not keep pace with demand, requiring food imports. Energy shortages, instability in neighboring states, and lack of adequate transportation linkages to other countries continue to handicap private sector growth.

The 1994 genocide decimated Rwanda's fragile economic base, severely impoverished the population, particularly women, and temporarily stalled the country's ability to attract private and external investment. However, Rwanda has made substantial progress in stabilizing and rehabilitating its economy well beyond pre-1994 levels. GDP has rebounded with an average annual growth of 6%-8% since 2003 and inflation has been reduced to single digits. In 2015, 39% of the population lived below the poverty line, according to government statistics, compared to 57% in 2006.

The government has embraced an expansionary fiscal policy to reduce poverty by improving education, infrastructure, and foreign and domestic investment. Rwanda consistently ranks well for ease of doing business and transparency.

The Rwandan Government is seeking to become a regional leader in information and communication technologies and aims to reach middle-income status by 2020 by leveraging the service industry. In 2012, Rwanda completed the first modern Special Economic Zone (SEZ) in Kigali. The SEZ seeks to attract investment in all sectors, but specifically in agribusiness, information and communications, trade and logistics, mining, and construction. In 2016, the government launched an online system to give investors information about public land and its suitability for agricultural development.

Uganda has substantial natural resources, including fertile soils, regular rainfall, substantial reserves of recoverable oil, and small deposits of copper, gold, and other minerals. Agriculture is one of the most important sectors of the economy, employing 72% of the work force. The country's export market suffered a major slump following the outbreak of conflict in South Sudan, but has recovered lately, largely due to record coffee harvests, which account for 16% of exports, and increasing gold exports, which account for 10% of exports. Uganda has a small industrial sector that is dependent on imported inputs such as refined oil and heavy equipment. Overall, productivity is hampered by a number of supply-side constraints, including insufficient infrastructure, lack of modern technology in agriculture, and corruption.

Uganda's economic growth has slowed since 2016 as government spending and public debt has grown. Uganda's budget is dominated by energy and road infrastructure spending, while Uganda relies on donor support for long-term drivers of growth, including agriculture, health, and education. The largest infrastructure projects are externally financed through concessional loans, but at inflated costs. As a result, debt servicing for these loans is expected to rise.

Oil revenues and taxes are expected to become a larger source of government funding as oil production starts in the next three to 10 years. Over the next three to five years, foreign investors are planning to invest $9 billion in production facilities projects, $4 billion in an export pipeline, as well as in a $2-3 billion refinery to produce petroleum products for the domestic and East African Community markets. Furthermore, the government is looking to build several hundred million dollars' worth of highway projects to the oil region.

Uganda faces many economic challenges. Instability in South Sudan has led to a sharp increase in Sudanese refugees and is disrupting Uganda's main export market. Additional economic risks include: poor economic management, endemic corruption, and the government's failure to invest adequately in the health, education, and economic opportunities for a burgeoning young population. Uganda has one of the lowest electrification rates in Africa - only 22% of Ugandans have access to electricity, dropping to 10% in rural areas.

GDP (purchasing power parity)$28.118 billion (2019 est.)

$25.695 billion (2018 est.)

$23.665 billion (2017 est.)

note: data are in 2017 dollars
$96.838 billion (2019 est.)

$90.669 billion (2018 est.)

$85.406 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate6.1% (2017 est.)

6% (2016 est.)

8.9% (2015 est.)
4.8% (2017 est.)

2.3% (2016 est.)

5.7% (2015 est.)
GDP - per capita (PPP)$2,227 (2019 est.)

$2,089 (2018 est.)

$1,975 (2017 est.)

note: data are in 2017 dollars
$2,187 (2019 est.)

$2,122 (2018 est.)

$2,075 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 30.9% (2017 est.)

industry: 17.6% (2017 est.)

services: 51.5% (2017 est.)
agriculture: 28.2% (2017 est.)

industry: 21.1% (2017 est.)

services: 50.7% (2017 est.)
Population below poverty line38.2% (2016 est.)21.4% (2016 est.)
Household income or consumption by percentage sharelowest 10%: 2.1%

highest 10%: 43.2% (2011 est.)
lowest 10%: 2.4%

highest 10%: 36.1% (2009 est.)
Inflation rate (consumer prices)3.3% (2019 est.)

-0.3% (2018 est.)

8.4% (2017 est.)
2.8% (2019 est.)

2.6% (2018 est.)

5.6% (2017 est.)
Labor force6.227 million (2017 est.)15.84 million (2015 est.)
Labor force - by occupationagriculture: 75.3%

industry: 6.7%

services: 18% (2012 est.)
agriculture: 71%

industry: 7%

services: 22% (2013 est.)
Unemployment rate2.7% (2014 est.)9.4% (2014 est.)
Distribution of family income - Gini index43.7 (2016 est.)

51.3 (2010 est.)
42.8 (2016 est.)

45.7 (2002)
Budgetrevenues: 1.943 billion (2017 est.)

expenditures: 2.337 billion (2017 est.)
revenues: 3.848 billion (2017 est.)

expenditures: 4.928 billion (2017 est.)
Industriescement, agricultural products, small-scale beverages, soap, furniture, shoes, plastic goods, textiles, cigarettessugar processing, brewing, tobacco, cotton textiles; cement, steel production
Industrial production growth rate4.2% (2017 est.)4.4% (2017 est.)
Agriculture - productsbananas, sweet potatoes, cassava, potatoes, plantains, beans, maize, gourds, milk, tarosugar cane, plantains, cassava, maize, sweet potatoes, milk, vegetables, beans, bananas, sorghum
Exports$1.05 billion (2017 est.)

$745 million (2016 est.)
$7.686 billion (2019 est.)

$6.511 billion (2018 est.)

$5.958 billion (2017 est.)
Exports - commoditiesgold, refined petroleum, coffee, tea, tin (2019)gold, coffee, milk, fish and fish products, tobacco (2019)
Exports - partnersUnited Arab Emirates 35%, Democratic Republic of the Congo 28%, Uganda 5% (2019)United Arab Emirates 58%, Kenya 9% (2019)
Imports$1.922 billion (2017 est.)

$2.036 billion (2016 est.)
$9.991 billion (2019 est.)

$8.006 billion (2018 est.)

$7.44 billion (2017 est.)
Imports - commoditiesrefined petroleum, gold, raw sugar, packaged medicines, broadcasting equipment (2019)packaged medicines, aircraft, delivery trucks, cars, wheat (2019)
Imports - partnersChina 17%, Kenya 10%, Tanzania 9%, United Arab Emirates 9%, India 7%, Saudi Arabia 5% (2019)China 19%, India 17%, Kenya 16%, United Arab Emirates 7%, Japan 5% (2019)
Debt - external$3.258 billion (31 December 2017 est.)

$2.611 billion (31 December 2016 est.)
$13.85 billion (2019 est.)

$12.187 billion (2018 est.)

$6.241 billion (31 December 2016 est.)
Exchange ratesRwandan francs (RWF) per US dollar -

839.1 (2017 est.)

787.25 (2016 est.)

787.25 (2015 est.)

720.54 (2014 est.)

680.95 (2013 est.)
Ugandan shillings (UGX) per US dollar -

3,680 (2020 est.)

3,685 (2019 est.)

3,735 (2018 est.)

3,234.1 (2014 est.)

2,599.8 (2013 est.)
Fiscal yearcalendar year1 July - 30 June
Public debt40.5% of GDP (2017 est.)

37.3% of GDP (2016 est.)
40% of GDP (2017 est.)

37.4% of GDP (2016 est.)
Reserves of foreign exchange and gold$997.6 million (31 December 2017 est.)

$1.104 billion (31 December 2016 est.)
$3.654 billion (31 December 2017 est.)

$3.034 billion (31 December 2016 est.)

note: excludes gold
Current Account Balance-$622 million (2017 est.)

-$1.336 billion (2016 est.)
-$1.212 billion (2017 est.)

-$707 million (2016 est.)
GDP (official exchange rate)$9.136 billion (2017 est.)$34.683 billion (2019 est.)
Credit ratingsFitch rating: B+ (2014)

Moody's rating: B2 (2016)

Standard & Poors rating: B+ (2019)
Fitch rating: B+ (2015)

Moody's rating: B2 (2016)

Standard & Poors rating: B (2014)
Ease of Doing Business Index scoresOverall score: 76.5 (2020)

Starting a Business score: 93.2 (2020)

Trading score: 75 (2020)

Enforcement score: 69.1 (2020)
Overall score: 60 (2020)

Starting a Business score: 71.4 (2020)

Trading score: 66.7 (2020)

Enforcement score: 60.6 (2020)
Taxes and other revenues21.3% (of GDP) (2017 est.)14.5% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-4.3% (of GDP) (2017 est.)-4.1% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 20.5%

male: 18.8%

female: 22.4% (2019 est.)
total: 14.8%

male: 12.7%

female: 17.3% (2017 est.)
GDP - composition, by end usehousehold consumption: 75.9% (2017 est.)

government consumption: 15.2% (2017 est.)

investment in fixed capital: 22.9% (2017 est.)

investment in inventories: 0.5% (2017 est.)

exports of goods and services: 18.2% (2017 est.)

imports of goods and services: -32.8% (2017 est.)
household consumption: 74.3% (2017 est.)

government consumption: 8% (2017 est.)

investment in fixed capital: 23.9% (2017 est.)

investment in inventories: 0.3% (2017 est.)

exports of goods and services: 18.8% (2017 est.)

imports of goods and services: -25.1% (2017 est.)
Gross national saving12.5% of GDP (2018 est.)

15.5% of GDP (2017 est.)

7.5% of GDP (2015 est.)
22.2% of GDP (2019 est.)

21.3% of GDP (2018 est.)

23.6% of GDP (2017 est.)

Source: CIA Factbook