Could FDI be Rwanda's lifeline as donors pull the plug?
Rwanda has received significant support from international donor agencies to rebuild its economy since the 1994 genocide. With over US$1-billion a year, it has the highest donor aid per capita in East Africa (about US$85 a year), above countries like Uganda with US$43 and Kenya with US$60. Over 40% of its national budget is funded by foreign aid. However, aid flows to Africa are declining, and so may not be a reliable source of external inflow. According to a new study on Rwanda’s development prospects by the Institute for Security Studies’ African Futures and Innovation programme,...
Source: polity.org.za