Discover how Rwanda generates its income in billions of dollars

The economy of Rwanda has undergone rapid industrialization due to successful governmental policies. Since the early 2000s, Rwanda has witnessed an economic boom improving the living standards of many Rwandans. The government's progressive vision have been the catalyst for revenue generation and the fast transforming economy. The president of Rwanda Paul Kagame has noted his ambition to make Rwanda the Singapore of Africa and with the observed transformation, he might just be on track. Before we find out how this non-oil country generates its revenue, kindly consider subscribing to our channel if you are new here and turn on our notification to always get notified each time we drop a video. Stay tuned. Agriculture Rwanda is a country of few natural resources and the economy is based mostly on subsistence agriculture by local farmers using simple tools. Agriculture is the main economic activity in Rwanda with 70% of the population engaged in the sector. Agricultural exports and re-exports from Rwanda generated over $444.8 million from 2020 to first quarter of 2021. The agricultural sector accounts for 30.9% of the national GDP. In general, Rwanda's GDP has been growing at the rate of 7% since 2014. Tea and coffee are main exports with the export market including UAE, Kenya and the USA. Rwanda exports dry beans, potatoes, maize, rice, cassava flour, maize flour, poultry and live animals within eastern Africa. Agricultural animals raised in Rwanda include cows, goats, sheep, pigs, chicken and rabbits with geographical variation in the numbers of each. Production systems are mostly traditional although there are a few intensive dairy farms around Kigali. Mining Rwanda's mining industry is an important contributor generating about $400 million in 2020 and first quarter of 2021. Minerals mined include Cassie strides, wolframite, sapphires, gold and cotton which is used in the manufacture of electronic and communication devices such as mobile phones. In 2019, the country was the 7th largest world producer of tungsten and the 12th largest world producer of tin. Rwanda also exports some gold and gemstones. Rwanda also possesses and exports a variety of minerals such as silica sands, diatomites, clays, limestone, talcum, gypsum and pozzolan. The government is eager to formalize the sector, attract international mining investors and increase processing of minerals in the country. The Rwanda Mining, Gas and Petroleum Board was established in 2017 to coordinate government efforts in these sectors. Industry Rwanda's industrial sector has been experiencing growth and the sector is dominated by the production of import substitutes for internal consumption. The larger enterprises produce beer, soft drinks, cigarettes, hoes, wheelbarrows, soap, mattresses, plastic pipe, roofing materials and bottled water. Other products manufactured include agricultural products, furniture, cement and textiles. Manufacturing is one way for a country to become self-sufficient, boost jobs and increase its export revenue. To develop the manufacturing sector, Rwanda created the Made in Rwanda campaign in 2015. This initiative made a positive impact on its trade deficits. Export revenue increased from $559 million in 2015 to almost $996 million in 2019. The Made in Rwanda campaign encourages locals to export products around the world. Services and Tourism Tourism is Rwanda's leading foreign exchange earner with total revenue estimated at $498 million in 2019, according to the Rwanda Development Board. This is due to success in leisure tourism as well as rapid growth in business tourism, also known as meetings, incentives, conferences and events. In spite of the genocide's legacy, the country is increasingly perceived internationally as a safe destination. Rwanda's service sector suffered during the late 2000 recession as banks reduced lending and foreign aid projects and investments were reduced. The sector rebounded in 2010, becoming one of the country's largest sectors by economic output. Key tertiary contributors include banking and finance, wholesale and retail trade, hotels and restaurants, transport, storage, communication, insurance, real estate, business services, and public administration, including education and health. In the past, Rwanda's economy suffered heavily during the 1994 genocide, with widespread loss of life, failure to maintain the infrastructure, looting, and neglect of important cash crops. This caused a large drop in GDP and destroyed the country's ability to attract private and external investments. Over the years, the economy has seen strengthening greatly, with purchasing power parity per capita GDP estimated at $2,641 in 2020 compared with $416 in 1994. Hope you enjoyed this video, give it a like if you enjoyed it, feel free to leave a comment in the comment section and don't forget to subscribe. Thanks for watching.