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USAID Information:
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Rwanda
Please note: All linked documents are in PDF format
| Objective |
SO Number |
FY 2004 |
FY 2005 |
FY 2006 |
| Democracy and Good Governance |
696-005 |
3,525 |
2,927 |
2,128 |
| Health and HIV/AIDS |
696-006 | 13,300 |
4,850 |
4,900 |
| Rural Economic Growth |
696-007 | 3,346 |
2,553 |
2,993 |
| Total (in thousands of dollars) |
20,171 |
10,330 |
10,021 |
Excludes P.L. 480. See Program Annex.
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The Development Challenge: Even as Rwanda forges its future in the Great Lakes and East Africa regions, the legacy of the 1994 genocide remains, threatening both internal development and regional stability. Rwanda lost large numbers of people during the genocide, which disproportionately targeted educated and moderate Rwandans. Reconciliation and recovery from the 1994 genocide will depend largely on the resolution of pending legal cases. With a staggering backlog of more than 100,000 cases, the traditional justice system has a major challenge, and, to date, progress has been slow. A justice reform law passed in 2004 should enable the process to get fully underway.
Rwanda remains desperately poor, with a per capita income of $220 per year. It is among the least-developed nations in the world, ranking 159 of 177 in the United Nations Development Programme's (UNDP's) 2004 Human Development Index. Rwanda already has one of the highest population densities in Africa, and the current population of 8.2 million is growing rapidly. With a high fertility rate (5.8 children per family), population is growing at an annual rate of 2.9%. The average adult has 2.6 years of schooling. Low literacy (69%) and primary school enrollment rates (53%) present a challenge for Rwanda's economic development. Life expectancy is only 40 years. Preventable diseases continue as major killers of children, with malaria followed by diarrhea and respiratory infections. Infant mortality is 110 per 1,000 live births (11%), and one child in five does not live to age five. Rwanda's maternal mortality (1.4% of live births) is among the highest in Africa. HIV remains an entrenched epidemic, with a prevalence rate of 5.1%.
With Rwanda's population pressures, 55% of farms are less than one half hectare (about one acre) in size, and competition for land is an underlying source of conflict. Preserving conservation areas to support tourism is becoming more difficult. A land reform law currently in Parliament will bring political and economic benefits, but the law could lead to conflict if not implemented carefully.
Rwanda joined the Common Market of Eastern and Southern Africa (COMESA) in 2004 and is one of the first four states on the continent to accept a peer review of governance under the auspices of the New Partnership for Africa's Development (NEPAD) and the African Union (AU). With U.S. facilitation, Rwanda signed a Tripartite Agreement in October 2004 to address regional border issues with Uganda and the Democratic Republic of the Congo (DRC). The U.S. Government will continue to support the United Nations' efforts to diffuse existing tensions and implement peace activities in the region.
Rwandans' precarious living situation was threatened in 2004, when poor rainfall reduced agricultural production. As a result, food prices increased by 28.4%. Exports increased by an estimated 10.3% in 2004, due largely to specialty coffee exports. However, reduced exports of other crops contributed to a significant balance of payments deficit. Fiscal deficits remain high at 5.5% of the gross domestic product. Most current economic growth is due to increased exports and a construction boom. Rwanda realized $22.9 million in debt forgiveness under the Highly Indebted Poor Countries (HIPC) Initiative in 2003. With continued satisfactory macroeconomic performance, it is expected that Rwanda will reach its HIPC Completion Point in February 2005. The World Bank Group recently signed a combined credit and grant package of $65 million to support poverty reduction programs. This reflects increased international confidence in Rwanda's medium-term economic prospects and Government of Rwanda (GOR) economic policies.
Rwanda's political development is mixed. One year after presidential and parliamentary elections and the adoption of a new constitution, there is progress in shifting responsibility for government services to the local level. At the same time, the GOR is downsizing its civil service employment dramatically; 1,500 civil servants were recently terminated. The GOR legitimately prioritizes its internal security concerns and is concerned about a return of violent ethnic divisions. Fueled by this concern, it has retained stringent limits on the freedom of expression of political parties and the media. USAID is actively working to create a more open political dialogue through its democracy and governance programs.
The United States has multiple national interests in Rwanda: increasing regional stability; promoting democracy and human rights; advancing economic prosperity and security; and enhancing global health. Stemming the HIV/AIDS epidemic and alleviating Rwanda's crushing poverty align squarely with U.S. policy goals. More open political discourse within Rwanda and greater regional stability would advance U.S. interests in Rwanda and the region, as well as improve the lives of Rwandans. The USG hopes to consolidate the regional peace process and accelerate Rwanda's political and economic development.
The USAID Program: The goal of USAID's assistance to Rwanda is to increase economic growth and improve the well-being of the population. The program focuses on three strategic objectives: improved governance and reconciliation, increased use of health services including HIV/AIDS care and prevention, and rural economic growth. All three programs use decentralization as a means of promoting change and improving livelihoods.
USAID supports improved governance by increasing citizen participation, strengthening civil society, rebuilding the justice sector, and assisting the GOR with the implementation of decentralization. The health program focuses on building a decentralized health system for family planning, reproductive health (RH), child health, malaria, HIV/AIDS and nutrition; improving access, quality and sustainability of basic health services; and empowering Rwandans to take responsibility for improving their health. USAID's economic growth program expands economic opportunities in rural areas by promoting value-added crops and increasing the diversity of off-farm productive enterprises. It focuses on agricultural productivity and the mobilization of financial resources for agriculture.
Other Program Elements: The USAID P.L. 480 food aid program supports improved agricultural productivity and increased food security. The centrally funded Famine Early Warning System Network (FEWSNET) provides timely information on the needs of vulnerable populations, as well as natural disasters. Through the Central African Regional Program for the Environment (CARPE), international private and voluntary organizations support conservation activities that reduce the rate of forest degradation and the loss of biodiversity in two of Rwanda's unique national parks. The Africa Education Initiative (AEI) finances the Ambassador's Girls Scholarship Program. Regional programs support trade information, participation in regional economic organizations and the East and Central Africa Trade Hub.
Rwanda is a focus country under the President's Emergency Plan for AIDS Relief. FY 2005 funding will be provided from the Global HIV/AIDS Initiative under the policy direction of the U.S. Global AIDS coordinator. The FY 2006 HIV/AIDS request for this country is contained in the Global HIV/AIDS Initiative account justification. For further details please se the Department of State FY 2006 Congressional Budget Justification.
Other Donors: The United Kingdom (UK) and Belgium are Rwanda's first and second largest bilateral partners, followed by the Netherlands and the United States. Forty percent of the GOR's budget is donor-funded by grants or loans. Donors providing budget support include the UK, Sweden, European Union (EU), the World Bank, and the African Development Bank (AfDB). The active participation of the Ministry of Finance in donor coordination groups adds to their impact. The GOR strongly requests donors to provide direct budget support. Donor sector cluster groups include the Private Sector and the HIV/AIDS Cluster Groups which are led by USAID. USAID works closely with Switzerland and the UK on governmental decentralization activities (Netherlands leads the cluster), and with Belgium on judicial reform and conflict management. Belgium is the lead on non-HIV health programs and gets strong policy support from USAID in that cluster. The United States is the lead donor on HIV/AIDS and works collaboratively with the World Bank and the Global Fund to Fight AIDS, Tuberculosis and Malaria. In rural economic growth and agriculture, USAID coordinates closely with the EU, the World Bank and the UK. USAID works with the UK, the lead donor in education, on girls' scholarships and the computerization of schools. Canada is the lead donor supporting the Ministry of Gender in charge of gender initiatives and USAID participates in the cluster to assure that gender considerations are part of its programs. Germany supports environmental programs and coordinates with CARPE.
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