Located in Eastern Africa, Rwanda is a landlocked country that extends over an area of 26,338 km², bordering Burundi in the south and the Democratic Republic of the Congo in the west, Uganda in the north and the United Republic of Tanzania in the east. Rwanda has a population of 8.3 million, growing at the rate of 2.5 per cent each year.

Population growth has spiralled from one million inhabitants in 1940 to two million in 1960 and eight million in the 1990s. Although the genocide checked this phenomenon to some extent, Rwanda is expected to have a population of 12 to 15 million by 2020.

Agriculture and the economy

The Rwandan economy has recovered rapidly since 1995, following a 50 per cent decline during the genocide in 1994. Through the determination of its people and massive external aid, Rwanda today has achieved annual growth of close to 9 per cent.

The Rwandan economy depends largely on agriculture, which accounts for 41 per cent of gross national product (GNP). Approximately 94 per cent of the population live in rural areas and depend on farming and related activities for their livelihoods. The bulk of export receipts derives from agriculture, mainly coffee and tea. Accordingly, the country’s foreign exchange reserves, and the monetary income earned by many farmers, are highly sensitive to seasonal fluctuations in prices for these commodities. Finally, the country has only one natural resource – methane gas – which has yet to be exploited for use in electrical power and fertilizer.

Since 2000, Rwanda has benefited from the Debt Initiative for Heavily Indebted Poor Countries (HIPC), and the country’s debt currently stands at US$1.5 billion. This process is expected to reach completion point in the course of 2005, and should result in approximately US$800 million in debt relief.

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