On June 22, Rwanda’s Finance Minister presented his annual budget to parliament for approval. This year’s budget process is coupled with a lockdown, due to the pandemic. As in many nations, Rwanda’s economy has been impacted by COVID-19. Reuters reports that, despite the impact of COVID-19, Rwanda’s economy is expected to grow 2% in 2020, 6.3% in 2021, and 8% in 2022, according to Finance Minister Dr. Uzziel Ndagijimana.
Rwanda has enjoyed good economic performance in recent years, thanks to an easing of policies about doing business in the country. The 2020/2021 Rwandan annual budget amounts to 3.2 trillion Rwandan Francs, according to the country’s only – and pro-government – daily paper, The NewTimes. The Finance Minister expects the country to see an increase in external borrowing, as it faces a 35% drop in tourism revenue and a decline of 62% in foreign direct investments due to COVID-19. Rwanda had been relying on taxes to shrink its dependency on external aid. The 2020/2021 tax revenue is projected to be 1,421.4 billion Rwandan Francs, lower than the 1,569 billion projected in the revised budget for financial year 2019/20, according to The NewTimes.