October 1, 2021: Participants at the 78th Development Partners Coordination Group (DPCG) hailed the impact of Government’s efforts invested in mitigating the effects of COVID-19 pandemic and its impact including economic recovery efforts. 

DPCG is a quarterly forum that brings together senior Government officials and Rwanda’s key development stakeholders to discuss priorities and challenges in meeting the country’s development objectives and targets. 

Presenting the status of the economic recovery plan, the Chief Economist at the Ministry of Finance and Economic Planning Amina Rwakunda pointed out that the economic recovery was already underway despite sectors that are yet to rebound.

“Based on GDP Q2 2021, we are noticing steady recovery from sectors such as industry, agriculture, construction and the services sector posting a growth for the first time since COVID-19 erupted. However, a turnaround to pre-Covid levels in some sectors such as hospitality may take time,” Rwakunda said.

Inflationary pressure caused by high cost of food and transport has been contained, while the external sector is equally undergoing recovery supported by the increased exports of key products such as fruits, vegetables, coffee and tea products. However foreign direct investments are yet to pick up.

“The economic recovery plan is indeed working in Rwanda. This is good news given that there are countries where such initiatives are not yielding results as fast as in Rwanda,. However, we need to ensure that its success is holistic by assessing its impact on equality, gender responsiveness and effects on the vulnerable,” Roland Pryce, World Bank country manager and DPCG co-chair said.

The economic recovery efforts are largely attributed to Government instituting an effective COVID-19 response mechanism as well as the establishment of the economic recovery plan.

The continuous implementation of the Economic Recovery Plan has raised hopes for recovery to the pre COVID-19 pandemic. The recently published numbers by the National Institute of Statistics of Rwanda show that Rwanda’s gross domestic product grew by 20.6 per cent in the second quarter of 2021 compared to the same quarter in 2020. 

Equally Rwanda’s COVID-19 vaccination plan has contributed to increase hopes of quick recovery. Currently over 2 million people having received at least the first vaccine dose and over 1.6 million people having received two doses. COVID-19 vaccination continues to be the major indicator globally for recovery to pre COVID-19 pandemic economic situation and economic resilience.

“Rwanda has been a model of good practice since the beginning of its vaccination programme in March. Indeed, for the target population, as of 26th September, Rwanda has fully vaccinated 21% and 26.8% have received their first dose,” Fodé Ndiaye, UN Resident Coordinator and DPCG co-chair noted. 

The meeting also discussed Rwanda’s revised climate action agenda and investment priorities. Under this program, a 38% reduction of greenhouse gas emissions by 2030, equivalent to an estimated mitigation of up to 4.6 million tons of carbon dioxide is projected. 

The agenda will also enhance resilience to climate change effects through adaptation measures in priority sectors such as water, agriculture, land, forestry, human settlement, transport, health, and mining.  Funding requirements associated with mitigation options is estimated at US$ 5.7 billion through 2030.