Rwanda Country Economic Memorandum

Public Disclosure Authorized Table of Contents Acknowledgments .......................................................................................................................................................................................................................iAbbreviations ..............................................................................................................................................................................................................................ivExecutive Summary.....................................................................................................................................................................................................................iOverview .....................................................................................................................................................................................................................................vi 1.1.Development achievements .....................................................................................................................................................................................11.2.Development challenges...........................................................................................................................................................................................31.3.Rwanda’s long term growth outlook ........................................................................................................................................................................91.4.Structure of the report ..............................................................................................................................................................................................14 PART 2: BOOSTING PRODUCTIVITY AND COMPETITIVENESS..................................................................................................................................................................................................................29 2.1.Introduction: Increased private sector activity is critical to Rwandan development...............................................................................................292.2.Private sector performance ......................................................................................................................................................................................292.3.Constraints on the development of firms ................................................................................................................................................................332.4.Firm innovation and ICT services ...........................................................................................................................................................................432.5.Boosting manufacturing to foster growth and employment in Rwanda ................................................................................................................472.6.Conclusions and recommendations.........................................................................................................................................................................52 Chapter 3. Growth and Resilience Through Trade: New Post-Pandemic Policies to Drive Exports....................................................................................763.1.Introduction..............................................................................................................................................................................................................76 3.2.Structural challenges to exports................................................................................................................................................................................773.3.Build resilience through diversification and product complexity............................................................................................................................783.4.Promote services exports and foster digital trade ....................................................................................................................................................813.4.Advance regional integration through coordination and trade liberalization..........................................................................................................863.5.Consolidate Rwanda’s position as a regional logistics hub.......................................................................................................................................913.6.Leverage foreign investment to access international markets and promote green growth......................................................................................963.7.Conclusion..................................................................................................