Coffee, minerals and pyrethrum are emerging as leading exports to US as Rwanda diversifies into new markets to cushion the economy against the widening trade balance.
The widening trade deficit has put pressure on foreign exchange reserves, which have dropped to 3.6 months cover before picking 3.8 recently. This has also lead to the weakening of the local currency that has depreciated by 7.6 per cent against the dollar.Data from Ministry of Trade, Industries and East Africa Community Affairs show coffee worth Rwf18 billion was exported to the US, minerals valued at Rwf14.3 billion, pyrethrum 1.6 billion.
The US market under African Growth Opportunity Act (Agoa) is duty free quota free, a type of market Rwandan small, and medium-sized enterprises need to break even. Read more. Source | Rwanda Today