Changes

==People==

==People==

Rwanda's population density, even after the 1994 genocide, is currently the highest in Sub-Saharan Africa. Nearly every family in this country with few villages lives in a self-contained compound on a hillside. The urban concentrations are grouped around administrative centers. The indigenous population consists of three ethnic groups. The Hutus, who comprise the majority of the population (85%), are traditionally farmers of Bantu origin. The Tutsis (14%) are traditionally a pastoral people who arrived in the area in the 15th century. Until 1959, they formed the dominant caste under a feudal system based on cattle holding. The Twa (1%) are thought to be the remnants of the earliest settlers of the region. Over 70% of the adult population is literate, but not more than 5% have received secondary education. During 1994-95, most primary schools and more than half of prewar secondary schools reopened. The national university in Butare reopened in April 1995; enrollment is over 7,000. Rebuilding the educational system continues to be a high priority of the Rwandan Government.  

Rwanda's population density, even after the 1994 genocide, is currently the highest in Sub-Saharan Africa. Nearly every family in this country with few villages lives in a self-contained compound on a hillside. The urban concentrations are grouped around administrative centers. The indigenous population consists of three ethnic groups. The Hutus, who comprise the majority of the population (85%), are traditionally farmers of Bantu origin. The Tutsis (14%) are traditionally a pastoral people who arrived in the area in the 15th century. Until 1959, they formed the dominant caste under a feudal system based on cattle holding. The Twa (1%) are thought to be the remnants of the earliest settlers of the region. Over 70% of the adult population is literate, but not more than 5% have received secondary education. During 1994–95, most primary schools and more than half of prewar secondary schools reopened. The national university in Butare reopened in April 1995; enrollment is over 7,000. Rebuilding the educational system continues to be a high priority of the Rwandan Government.  

*Population (2006 est.): 8,648,248.  

*Population (2006 est.): 8,648,248.  

*Annual growth rate (2006 est.): 2.43%.

*Annual growth rate (2006 est.): 2.43%.

In 1998, Rwanda, along with Uganda, invaded the Democratic Republic of the Congo (D.R.C.) to back Congolese rebels trying to overthrow then-President Laurent Kabila. Rwandan troops pulled out of the D.R.C. in October 2002, in accordance with the Lusaka cease-fire agreement.  

In 1998, Rwanda, along with Uganda, invaded the Democratic Republic of the Congo (D.R.C.) to back Congolese rebels trying to overthrow then-President Laurent Kabila. Rwandan troops pulled out of the D.R.C. in October 2002, in accordance with the Lusaka cease-fire agreement.  

In the fall of 2006, Rwanda broke diplomatic relations with France, following a French judge’s indictment of senior Rwandan officials on charges of having participated in the shooting down of the presidential jet in 1994. Rwanda rejects these charges. Rwanda, along with Burundi, will join the East African Community in 2007.

In the fall of 2006, Rwanda broke diplomatic relations with France, following a French judge's indictment of senior Rwandan officials on charges of having participated in the shooting down of the presidential jet in 1994. Rwanda rejects these charges. Rwanda, along with Burundi, will join the East African Community in 2007.

==Defense==

==Defense==

==Economy==

==Economy==

The Rwandan economy is based on the largely rain-fed agricultural production of small, semi-subsistence, and increasingly fragmented farms. It has few natural resources to exploit and a small, uncompetitive industrial sector. While the production of coffee and tea is well suited to the small farms, steep slopes, and cool climates of Rwanda, farm size continues to decrease, especially in view of government ownership of all land and the resettlement of displaced persons. Agribusiness accounts for 37.6% (2005 est.) of Rwanda’s GDP and 70% of exports. Tea accounts for 60% of export earnings, followed by coffee and pyrethrum (whose extract is used in insect repellant). Mountain gorillas serve as a potentially important source of tourism revenue, but Rwanda’s tourism and hospitality sector requires further development. Rwanda is a member of the Common Market for Eastern and Southern Africa (COMESA). Some 34% of Rwanda’s imports originate in Africa, 90% from COMESA countries. The genocide continues to impact Rwanda’s economy; as of 2003, 30% of the Rwanda Development Bank’s outstanding non-performing loans originated from the period of 1994 genocide. The Government of Rwanda has sought to privatize several key firms. Rwandatel, the government fixed-line provider and the country’s second-largest mobile phone provider, was sold to American-led Terracom in 2006. The government in the last several years also sold off several government-owned tea estates, and made great strides in completing privatization of the banking sector. Electrogaz, the utility monopoly, remains to be privatized, as do several other parastatals.  

The Rwandan economy is based on the largely rain-fed agricultural production of small, semi-subsistence, and increasingly fragmented farms. It has few natural resources to exploit and a small, uncompetitive industrial sector. While the production of coffee and tea is well suited to the small farms, steep slopes, and cool climates of Rwanda, farm size continues to decrease, especially in view of government ownership of all land and the resettlement of displaced persons. Agribusiness accounts for 37.6% (2005 est.) of Rwanda's GDP and 70% of exports. Tea accounts for 60% of export earnings, followed by coffee and pyrethrum (whose extract is used in insect repellant). Mountain gorillas serve as a potentially important source of tourism revenue, but Rwanda's tourism and hospitality sector requires further development. Rwanda is a member of the Common Market for Eastern and Southern Africa (COMESA). Some 34% of Rwanda's imports originate in Africa, 90% from COMESA countries. The genocide continues to impact Rwanda's economy; as of 2003, 30% of the Rwanda Development Bank's outstanding non-performing loans originated from the period of 1994 genocide. The Government of Rwanda has sought to privatize several key firms. Rwandatel, the government fixed-line provider and the country's second-largest mobile phone provider, was sold to American-led Terracom in 2006. The government in the last several years also sold off several government-owned tea estates, and made great strides in completing privatization of the banking sector. Electrogaz, the utility monopoly, remains to be privatized, as do several other parastatals.  

*GDP (2005 est.): $1.817 billion.

*GDP (2005 est.): $1.817 billion.

*Real GDP growth rate (2006 est.): 5.8%.

*Real GDP growth rate (2006 est.): 5.8%.

Since 1996, Rwanda has experienced steady economic recovery, thanks to foreign aid (averaging $200 million to over $400 million per year) and governmental reforms. Since 2002, the GDP growth rate has ranged from 3%-9% per annum, and inflation had ranged between 2%-8%. Rwanda depends on significant foreign imports ($243-$300 million per year). Export rates remain weak at $135.4 million per year. Private investment remains below expectations despite an open trade policy, a favorable investment climate, cheap and abundant labor, tax incentives to businesses, stable internal security, and crime rates that are comparatively low. Investment insurance also is available through the Africa Trade Insurance Agency or the Overseas Private Investment Corporation. The weakness of exports as well as low domestic savings rates have had a negative impact on the current account for Rwanda, thus requiring a recent currency devaluation and debt restructuring measures.  

Since 1996, Rwanda has experienced steady economic recovery, thanks to foreign aid (averaging $200 million to over $400 million per year) and governmental reforms. Since 2002, the GDP growth rate has ranged from 3%-9% per annum, and inflation had ranged between 2%-8%. Rwanda depends on significant foreign imports ($243-$300 million per year). Export rates remain weak at $135.4 million per year. Private investment remains below expectations despite an open trade policy, a favorable investment climate, cheap and abundant labor, tax incentives to businesses, stable internal security, and crime rates that are comparatively low. Investment insurance also is available through the Africa Trade Insurance Agency or the Overseas Private Investment Corporation. The weakness of exports as well as low domestic savings rates have had a negative impact on the current account for Rwanda, thus requiring a recent currency devaluation and debt restructuring measures.  

The Government of Rwanda remains committed to a strong and enduring economic climate for the country. To this end the government focuses on poverty reduction, infrastructure development, privatization of government-owned assets, expansion of the export base, and liberalization of trade. The implementation of a value added tax of 18% and improved tax collections are having a positive impact on government revenues and thereby services rendered. Banking reform and low corruption also are favorable current trends. Agricultural reforms, improved farming methods, and increased use of fertilizers are improving crop yields and national food supply. Moreover, the government is pursing educational and healthcare programs that bode well for the long-term quality of Rwanda’s human resource skills base.  

The Government of Rwanda remains committed to a strong and enduring economic climate for the country. To this end the government focuses on poverty reduction, infrastructure development, privatization of government-owned assets, expansion of the export base, and liberalization of trade. The implementation of a value added tax of 18% and improved tax collections are having a positive impact on government revenues and thereby services rendered. Banking reform and low corruption also are favorable current trends. Agricultural reforms, improved farming methods, and increased use of fertilizers are improving crop yields and national food supply. Moreover, the government is pursing educational and healthcare programs that bode well for the long-term quality of Rwanda's human resource skills base.  

Many challenges remain for Rwanda. Rwanda is dependent on significant foreign aid. Exports continue to lag far behind imports and will continue to affect the current account. Inflation may become a problem should the government resort to over-printing currency for short-term gains. The persistent lack of economic diversification beyond the production of tea, coffee, and coltan keeps the country vulnerable to market fluctuations. Rwanda’s landlocked situation necessitates strong highway infrastructure maintenance, and good transport linkages to neighboring countries, especially Uganda and Tanzania, are critical. Transportation costs remain high and, therefore, burden import and export costs. Rwanda has no railway system for port access in Tanzania, although the nearest railhead from Kigali is 380 kilometers away at Isaka, Tanzania. The development of small manufacturing and service industries is needed, and the tourism industry has far greater potential given the current stability, travel infrastructure, and available animal parks as well as other potential tourist sites. In 2006, Rwanda completed the Multilateral Debt Relief Initiative and the Heavily Indebted Poor Country (HIPC) debt initiative, significantly lowering its foreign debt load.

Many challenges remain for Rwanda. Rwanda is dependent on significant foreign aid. Exports continue to lag far behind imports and will continue to affect the current account. Inflation may become a problem should the government resort to over-printing currency for short-term gains. The persistent lack of economic diversification beyond the production of tea, coffee, and coltan keeps the country vulnerable to market fluctuations. Rwanda's landlocked situation necessitates strong highway infrastructure maintenance, and good transport linkages to neighboring countries, especially Uganda and Tanzania, are critical. Transportation costs remain high and, therefore, burden import and export costs. Rwanda has no railway system for port access in Tanzania, although the nearest railhead from Kigali is 380 kilometers away at Isaka, Tanzania. The development of small manufacturing and service industries is needed, and the tourism industry has far greater potential given the current stability, travel infrastructure, and available animal parks as well as other potential tourist sites. In 2006, Rwanda completed the Multilateral Debt Relief Initiative and the Heavily Indebted Poor Country (HIPC) debt initiative, significantly lowering its foreign debt load.

American business interest in Rwanda, other than in tea and telecommunications, is weak, and the African Growth and Opportunity Act (AGOA) has yet to make a significant impact in Rwanda. Energy needs will stress natural resources in wood and gas, but hydroelectric power development is underway, albeit primarily in the planning stages. Rwanda does not have nuclear power or coal resources. Finally, Rwanda’s fertility rate—averaging 5.43 births (2006 est.) per woman—will continue to stress services, and diseases such as AIDS/HIV transmission, malaria, and tuberculosis will have a major impact on human resources.  

American business interest in Rwanda, other than in tea and telecommunications, is weak, and the African Growth and Opportunity Act (AGOA) has yet to make a significant impact in Rwanda. Energy needs will stress natural resources in wood and gas, but hydroelectric power development is underway, albeit primarily in the planning stages. Rwanda does not have nuclear power or coal resources. Finally, Rwanda's fertility rate—averaging 5.43 births (2006 est.) per woman—will continue to stress services, and diseases such as AIDS/HIV transmission, malaria, and tuberculosis will have a major impact on human resources.  

Rwanda's government-run radio broadcasts 15 hours a day in English, French, and Kinyarwanda, the national languages. News programs include regular re-broadcasts from international radio such as Voice of America, BBC and Deutsche Welle. There is one government-operated television station. In addition to government-operated Radio Rwanda, there are nine independent FM radio stations. There are few independent newspapers; most newspapers publish in Kinyarwanda on a weekly, biweekly, or monthly basis. Several Western nations, including the United States, are working to encourage freedom of the press, the free exchange of ideas, and responsible journalism.  

Rwanda's government-run radio broadcasts 15 hours a day in English, French, and Kinyarwanda, the national languages. News programs include regular re-broadcasts from international radio such as Voice of America, BBC and Deutsche Welle. There is one government-operated television station. In addition to government-operated Radio Rwanda, there are nine independent FM radio stations. There are few independent newspapers; most newspapers publish in Kinyarwanda on a weekly, biweekly, or monthly basis. Several Western nations, including the United States, are working to encourage freedom of the press, the free exchange of ideas, and responsible journalism.