Off the wire
• Netanyahu says Israel will defend itself amid rockets attack from Syria  • Latvian FM expects no EU decision on fresh sanctions against Russia on Thursday  • Iran, Russia to establish joint bank for mutual trades: envoy  • Russia's arms exports exceed 15 bln USD in 2014  • Type 2 diabetes preventable in up to 60 pct of cases: Austrian experts  • Zambian trainer says team still has potential  • Spanish stock market falls 0.91 pct, closes at 10,598  • Madeira's former leader defends need for anti-austerity party like Syriza in Portugal  • Cote d'Ivoire international Didier Ya Konan rejoins Hannover  • LME base metals decline mostly on Tuesday  
You are here: 　 Home

IMF chief advises Rwanda on achieving middle income status

Xinhua, January 28, 2015 Adjust font size:

International Monetary Fund Managing director, Christine Largarde Tuesday advised Rwanda to reduce dependency on aid and encourage the private sector development to reduce over reliance on the public sector.

In Rwanda since Sunday, the IMF chief also advised the country to harness the potential of regional integration in support of export diversification and overcome geographic constraints.

Speaking at a public lecture at the Rwandan Parliament in Kigali, Largarde said this would help the country achieve middle income status as outlined in its Vision 2020 goals and economic growth projections.

Largarde pledged IMF's continuous support to help Rwanda achieve middle income status as per the government targets. Mobilizing domestic revenues, she said, will be key to strengthening the financial independence of Rwanda and ensure that it is less dependent on external aid.

She noted that at 16 percent of GDP tax collection, efforts are still low compared to the rest of Africa and the target set by the East African Community.

She said the IMF has been engaged with Rwanda in providing technical assistance and capacity building in revenue administration and collection.

Largarde noted that infrastructure gaps continue to hold back the private sector growth with energy and transportation among the most hindrances.

he pointed out the need for proper set of skills in the labor force that would enable the private sector to reap the dividends of the demographic transitions.

The skills can be imparted through a competent education system that would enable the youth to join the economy, she said.

She commended the East African Community initiative, saying it is necessary for export-oriented business to flourish.

"Deeper engagement in the East African Community would allow Rwanda to benefit from regional infrastructure projects in key areas, including power generation and transportation which is critical in unlocking Rwanda's potential," she said.

Claver Gatete, Rwanda's Finance minister acknowledged the role of the IMF in the economic stability and progress of the country.

He said the IMF had played a critical role in informing the decision and policy taken by the government and that the cooperation would persist to achieve the nation's ambitions. Endi