Rwanda

The 10th EDF Country Strategy Paper (CSP) and National Indicative Programme (NIP) outline the framework for EC-Rwanda cooperation for the years 2008-2013. The main objective of the programme is to alleviate poverty in the context of sustainable development, while according a high priority to human rights and good governance issues.

Rwanda’s legacy of genocide continues to loom large over the country’s political landscape. Nevertheless, impressive progress has been made since 1994. National and local elections were held in 2003 and 2006, respectively. Basic human rights and fundamental freedoms are formally protected by the 2003 constitution, which also provides for institutions to monitor and protect these rights. The media is developing, with the recent launch of several newspapers and with new private radio stations starting to broadcast. Unity and reconciliation activities are reaching a high point following the nationwide roll-out of the Gacaca process in 2006 and the acceleration of ICTR activities. Both are scheduled for completion in 2008. Crime and corruption rates are relatively low and the prospects for peace and security in the sub-region relatively promising. Rwanda’s improving governance environment is reflected in its recent APRM report, which was successfully peer-reviewed by African heads of state in 2006.

On the economic front, the main challenge after a decade of robust macroeconomic performance is to find new sources of sustainable growth, as the post-conflict recovery phase draws to a close. Rwanda’s first PRSP made good progress on the social sectors, but less so on the productive side. There has been little improvement in agricultural productivity, which is strongly influenced by weather patterns. Periodic energy crises continue to hold up private sector development, while poor infrastructure constrains rural development. Rwanda is land-locked with high transport costs for imports and exports. The export base is very narrow and the country is highly dependent on aid to overcome its balance of payments deficit and to finance much-needed investment. Progress towards reaching the MDGs has been recorded for education and gender, but targets in other areas remain elusive. These issues are expected to be addressed in the second PRSP (called the Economic Development and Poverty Reduction Strategy or EDPRS) to be finalised in 2007tchadiens.

The areas of intervention for EC cooperation for the period 2008-2013 pick up on these major challenges, building on the EC’s comparative advantage both internationally and in Rwanda. Rwanda’s PRSP process (the EDPRS) will be supported with general budget support linked to macroeconomic performance, public financial management and progress in social sectors (health, education). Apart from general budget support, the first focal sector will provide support for rural development and the second focal sector will support infrastructure for regional interconnectivity. Interventions will be marked by an increasing amount of aid being delivered through sector budget support where possible, with accompanying measures for capacity building and institutional development so as to increase absorptive capacity. Support will be provided for decentralisation and rural development activities at district level. Infrastructure will be supported through sector budget support for the transport sector combined with institutional support and capacity building, for both state and non-state actors. Support will be provided for regional transport and energy projects. Outside the focal areas, support will be provided for governance programmes supporting good governance and economic management and programmes supporting trade and regional integration.

The latter will include support for trade negotiations related to the WTO and EPA. Further support will be made available for the development of a competitive private sector through a conducive environment. Provision will be made for the involvement of non-state actors in all areas of intervention wherever possible. Good governance, gender balance, and the environment will be cross-cutting issues across the whole of the programme.