Rwanda vows to continue promoting import substitution, export diversification

KIGALI, April 30 (Xinhua) -- The government of Rwanda will continue to promote import substitution and diversify exports to cut the exposure to external shocks and imbalances over the medium term, the finance minister said on Monday.

The implementation of Made in Rwanda policy will continue to play a key role in narrowing the current account deficit in the short to long run and help to consolidate private sector domestic activities, create jobs and boost economic growth, Minister of Finance and Economic Planning Uzziel Ndagijimana said in Kigali, capital city of Rwanda.

The government plans to spend 2.7 billion U.S. dollars in the fiscal year 2018-19, a 380.5 million dollar increase compared to the revised budget for 2017-18, Ndagijimana told lawmakers when presenting the budget to parliament.

Domestic resources will account for 62 percent of funding for the 2018-19 budget, he said.

According to Ndagijimana, external grants and external loans are estimated to each contribute 16 percent of the total budget.

Development expenditure is estimated at 1 billion dollars while net lending is projected at 220 million dollars, which will be used to finance key government projects such as construction of Bugesera international airport and expansion of RwandAir operations, he said.

"Domestic loans are projected to represent 6 percent of the 2018-19 budget," said Ndagijimana.

Policies and strategies over the medium term are built on the government's aspiration to transform Rwanda into a high-income economy and ensure high living standards for Rwandans by the middle of the 21st century, he said. Enditem