Rwanda’s Investment in Energy Project reaches $2.5 billion in 2019

According to the East African development agency, Rwanda’s investment of about 23% concentration in energy last year has yielded a total of $2.5 billion.

Rwanda is one of the smallest countries in central Africa and also one of the most plagued. With the 1994 genocide, the Tutsi and Hutu people’s clash resulting from Rwanda’s independence in 1962 and several domestic hardships.

Currently having a population of about 11 million, the early inhabitants of Rwanda were mountain dwellers and hunters.

Rwanda is a country of few natural resources. The country’s economy comprises majorly of subsistence agriculture by local farmers using simple tools.

Rwanda subsistence agriculture
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They practice their farming system on small plots of land, and relatively steep slopes and with basic farm equipment. Although Rwanda has a productive agricultural system, the produce from the agricultural sector could not keep up with the country’s persistent population growth.

Although the industrial sector of the country’s economy is small, it has contributed to the country’s growth. It consists of small scale beverages, soap, furniture, shoes, cement, plastic goods, textiles, and cigarettes. In recent years, it has contributed the the most revenue for the country.

For the year 2010, the industrial sector contributed 43% to the country’s GDP, becoming the largest sector by economic output.

In time past, Rwanda’s economy has suffered several hardships. A significant factor contributing to the downturn in the country’s economy is the 1994 genocide.

Rwanda’s genocide, also known as the genocide against the Tutsi, took place during the Rwanda civil war. Beginning on the 7th of April and ending on the 15th of July 1994.

The outcome of the war leads to a massive decrease in the country’s GDP as a result of mass killings, failure to maintain existing infrastructures, looting, and neglect of important cash crops.

Despite the colossal tragedy and the economic downturn the country faced in 1994, Rwanda has continuously made conscious efforts to restore the country to its lost glory.

Rwanda President tours hydro plant
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The funding, increased the populace access to safe water, stable electricity as well as establish a good water distribution network.

The Rwandan government went further to improve its transportation system to convey people, goods, and raw materials easily successfully and to link neighboring countries to Rwanda. The principal means of transportation in Rwanda is via minibus.

Rwanda’s investment in transportation led to the creation of good roads; farmers, as well as their products, were able to move conveniently from the farmlands to market places.

Rwanda Airline
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In 2017 the Rwandan Airlines came through. Currently, the country’s national carrier is RwandAir. The country is also served by seven other foreign airlines.

Rwanda’s telecommunication group, Rwandatel, went into liquidation in 2011, and at that time, landlines were more predominant. As of 2015, landline services were provided for over 30,000 subscribers all over Rwanda.

In 2015 Mobile phone penetration was at a 72% rate. With over 6 million people using Mobile phones, internet penetration gradually and rapidly increased. In October 2019, Rwanda launched its first home-made smartphone.

In 2019, two-third of Rwanda’s Investment Management projects were in the manufacturing sector and Energy. The year’s budget, with the inflows, 44% is contributed by joint ventures, 37% by foreign direct investment, and 19% by locals, according to the agency.

The distribution is as follows: $72 million for solar power, $613 million for the Rusizi III hydropower project, $152 million for electric cars, $145 for affordable housing, and $442 million for Gasmeth Energy LTD.

Today, Rwanda is being celebrated for its investment in Energy, which we hope in the future, will lead to a better, peaceful, and prosperous Rwanda.

 

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