Rwanda's economy will slow down by 1.5% next year, if donors do not unfreeze aid according to Finance and Economic Planning Minister John Rwangombwa.
Rwangombwa said this while briefing members of parliament of the likely implications the aid suspensions will affect the country in the next quarter.
"Although there is no effect the freezing and delaying of disbursement of aid from donor countries is going to have on the projected growth of the country this year, the rate of growth for 2013 will reduce; provided the aid situation remains unresolved," Rwangombwa noted.
For the year ending 2012, The National institute of Statistics of Rwanda had projected a growth rate of 7.7% for the economy and according to what has been realised in the first and second periods of the year; the target growth will be surpassed.
According to the finance minister, growth in the first period was registered at 7.7% while it rose to 9.6% in the second and was projected to be at 7.5% in the closing period. Therefore the national economic growth for 2012 will exceed 8%, which is averagely higher than had been projected.
However although 2012 annual growth rate will be achieved and possibly surpassed, the effect of the aid freeze and delay in disbursement for some cases will be felt in 2013 if the current condition between the donor states and Rwanda is not rectified.
According to Minister Rwangombwa, the total budgetary support that was awaited in form of aid funds amounts to US$362.7million of which only 122.4million has been disbursed. This leaves a total of about 240.3million (approximately Rwf155billion) awaiting the decisions of the source institutions, after half of the financial has been completed.
Donor countries including the Netherlands, Germany and Sweden were the first to freeze their support in July of 2012 when fighting between the Congolese government and the rebel group M23 started with allegations that Rwanda supports DRC rebels.
Later, other countries like the United Kingdom followed suit when they delayed the first disbursement in August of US$16million. This however was later on delivered and currently, of the US$80million support that the British government had pledged to Rwanda, 48million has already been disbursed.
Other withheld budgetary financial support from particular countries is an agricultural sector support pledge that the USA had made of US$12million.
This, Rwangombwa said, was the first time the Americans were giving budget support, different from their usual channels which are through projects and non-government organisations. However, he clarified that negotiations are ongoing through which USA is expected to channel the withheld financing to an agriculture project for the preservation of mountainous soils through terracing.
Besides the already mentioned donors who have not respected their side of the aid agreements with Rwanda, using insecurity in the DRC as an excuse; Belgium is yet another donor who has not disbursed pledged budgetary support but for their case, it is a result of amendments that their domestic aid policy is undergoing and communications on the outcomes will be to their aid recipients including Rwanda and they have not claiming to be doing so basing on insecurity in DRC.
The remaining amount that was pledged towards budget support and has not been disbursed until today is equivalent to about 12% of the total government expenditure for the 2012/2013 budget that was passed at a total of Rwf1385.3billion.
For Rwangombwa, missing out on 12% of the funds that the government was considering for the support of the 2012/2013 budget is not something that would greatly damage the economy although the situation is an alert for vigilance in the use of public funds and thus greater efficiency.
"This should not be looked at as a fatal situation for the economy for I assure you that the major activities of the government are not going to be affected at all but rather some development projects might be delayed," Rwangombwa explained to the law makers.
Among such major government expenditures that the finance minister spoke of as not going to be hampered by the aid freeze and delays, is the payment of salaries for the public servants. He was quick to exhort public servants who he said have already been hit by fear thinking that there might be salary delays and in some cases downsizing of employees, confirming that no such thing will happen.
"The amount of salaries that are paid to all public employees is Rwf204billion which is just about a third of domestic tax collections. Thus there is no way the government might run short of funds to pay its workers only because aid was frozen," he highlighted.
However, Rwangombwa is skeptical on whether the insecurities in the DR Congo's eastern region were not just used as a trigger to expose the long held negative connation that some people in the donor countries have about aid.
"I am not convinced that the aid freeze we are facing today is only as a result of the unfounded reports that Rwanda is playing a part in keeping the particular region in Congo insecure; rather it seems to have been a spark for some people in the west and America who are on a strong campaign against aid."
On grounds of financing the 2012/2013 budget, the government was eyeing domestic resources that added up to Rwf724.4billion implying a 52.6% contribution to the budgeted expenditure. The implication is that about 48% of the budgeted expenditure was planned depending on money from aid.
For Rwangombwa, the inconsistencies in disbursing aid by some of the donor countries during this time ought to serve as a warning bell that government planning should cease relying on foreign financing. The 2012/2013 budget is set to undergo revisions which changes will be presented in January.
"In the changes that the budget is undergoing, emphasis is being put on basing all planning on domestic resources to facilitate economic growth. Also, the changes will highlight areas where expenditure would be efficiently managed to do more activities with lesser funds compared to the earlier budgeted."
Rwangombwa's suggestions of self-reliance during planning processes for government expenditure were warmly welcomed by parliamentarians many of whom marked the actions of the donor states as against any moral standards. "How can one back away from something they have pledged to do?" some asked noting that the donors' actions are absurd.
However the parliamentarians like Senator Jean Damacien Bizimana hope that there should be a popular action against the activities of the donor countries which to him is taking Rwanda just for granted. "It is high time we acted against the widespread allegations that we have any reason to support insecurities in DRC; which are now even threatening our national sovereignty and security."
According to Bizimana, parliament needs to discuss how and what Rwanda ought to do demonstrate its grievance to the international community that has on many occasions showed interest in blackmailing the country.
In order to sustain development amidst the aid freeze, MP Mukama Abbas suggested ensuring efficient and effective use of public funds based on new directives providing for heavy punishment of those people who would be caught misusing funds.
Rwanda also needs to grow its tax base as the major revenue for the country through supporting businesses to develop from informal to formal trade.
Initiatives such as the Agaciro Development Fund, give hope that Rwanda will be able to attain economic independence as Vision 2020 suggests. According to Rwangombwa, the wake-up call from the donors is timely.
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" WELL THOUGHT OUT ;'AID FOR AFRICA IS NOTHING MORE THAN ECONOMICAL SLAVERY!! THE DEPENDENCE THE WEST WANTS IS TO BE ABLE TO LIVE THE HIGH LIFE GETTING VERY CHEAP GOODS AT THE EXPENSE OF THE AFRICAB LABOURER.. TODAY IT IS IMPERATIVE THAT WE MAKE CONTACTS THE WORLD OVER ESPECIALLY IN NATIONNS THAT HAVE EXPERIENCED THESE TYPICAL WESTERN UNDERMINININGS OF BLACK GOVERNMENTS". "SOMEHWERE IN THE PSYCE OF WHITES IN THE WEST BLACK PEOPLE ARE THIER SERVANTS AND REGARDLESS OF STATURE OR POSITION THEY STILL REGARD AFRICANS AS THEIR INEFRIORS". WE SIGHT THIS BY THE MEHTODOLOGY OF HOW THEY DONATE FUNDS TO KEEP NATIONS IUNDER DEVELOPED THE WAY THEY DICTATE TO THE AFRICAN GOVERNMENST ALWAYS AS THE INEFRIOR SUBJECT TO REPRIMANDS AND THIER SO CALLED" EXPERT WITNESSES!!!!!!, ALWAYS THE PROTAGONIST WITH MISLEADING INOFRMATION USUALLY BASED ON THEIR MISUNDERSTOOD PROJECTIONS FO WHOM THE AFRICAN ISAND WHAT THEIR CAPABILITIES ARE". IN ORDER FOR AFRICA TO STUMULATE GROWTH IN AFRICA AFRICANS HAS TO BE LANDOWNERS MASTERS OF THIER OWN DESTINIES; THIS TAKES EDUCATIONAND RESPONSIBLE ACTIONS ON THE ECONOMIES OF AFRICANS. COLLABEATION AMALGRMATION WONT HURT. AS WE SEE THE SAHEL REGION HAS UNIFIED WITH A BANKING SYSTEMTO FUND INFRSTRUCTURE THAT WILL CONNECT AND PROVIDE TRADE MOVEMENTAND JOB CREATIONS. IF WE DO NOT HAVE SCIENTIST IN LINE WE NEED A STRONG PANAFRICANIST UNIEVRSITY WHICH IS IN THE PLANNING STAGE AT THE AU'. WE NEED METALURGIST TOP MANGERS OF OIL RIGGS DRILLS AND WE NEED THE CAPABILITY TO DESIGHN ONES FUTURE WITH THE STRONG EMPHASIS ON BLACK EMPOWERMENT".. THERE IS NO TIME FOR PROCRASTINATION IT IS OF URGENT DEMAND THAT WE START TO FILL THE BOOTS TO TRANSFORM ONES NATION FROM DEPENDENCE TO FOR EVER FREE FOR EVER INDEPENDENTSHOULD THE EAST TRULY INEGRATE THIER CAPCITY TO COMPETE EFFFECTIVELY WITH THE LIKES OF THE SUADIS THE QATRIS WHOM ARE THE OWNERS OF THIER WELLS THEY ARE ALSO OWNERS OF THIER BANKING SYSTEM THEY ONW THIER ONW CURRENICES WHICH IS JUST AS COMPETETIVE AS ANY OTHER. MY IDEOLOGY IS FOR AFRICA TO PRODUCE REFINE OWN TRADE MANUFACTURE COFFEE WITH SOME OF THE MOST EXPERIENCED OF COFFEE PRODUCERS TO SELL SOME OF THE EXOTIC OF COFFEES WITH TRADE MARKS OF COMPLEMNETING AFRICA. THIS IS JUST SOME OF THE IDEAS WHERE THE PEOPLE CAN SHARE IN THE PROFITS WHERE THEY ARE THEMSELVES BOSSES. THIER NEED TO BE MORE COOPERATIVES WITHIN AFRICA ALIGITTIMATE MOVEMENT OF SOCIAL INCLSIVENESS AS IT WAS WITH OUR FORE FATHERES. IN RESEARCHING ANCIENT TRADITIONS AFRICANS WERE THE FOREMOST COCIALSIT THEY INLCUDED THE ENTIRE POPULATION IN ALL THIER VENTURES GREED SELFISHNESS WERE NEVER EXPERIENCED THEY LIVED FOR EACHOTHER. WHEN THE LINES WERE CROSSED THERE WAS NORMALLY AND EXPULSION A BAN EXCLUDED WHICH USUALLY WAS A DISASTER FOR THE OFFENDER. AFRICANS TENDED TO BE MRE MORAL AND ALLOWED OFR EVERYONE TO HAVE A HGH LIFE STYLE. THERE WAS A HIGH CULTURE IN AFRICA WITH TOILETS RESVOIRS AND THE MOST MODERN OF ANY SOCIETY TODAY. HAVE YOU NOT RECOGNISED HOW HARD THEY TRY TO KEEP THE AFRICAN DOWN. IT IS STAGED OFFENSEIVE AGAINST AFRICA. WHEN EVER THEY SEE AFRICANS BECOMMING SLEF RRELIANT THEY CRAETE CONFLICTS THEY USE SEDDITION ESPIONAGE SUBTERFUGE AS WE SEE NOW WITH THIER EXPERT TESTIMONY". THIS IS EFFECTIVELY THE WAY TO KEEP YOU TRAPPED THEY TRULY BELIVE THAT THE BLACK MAN DOES NOT THAVE THE CAPACITY TO THINK AMD DO FOR SELF!!!!!!! THIS SI WHAT WE SEE IN BANKI MOONS DECISIONS IN AFRICA ; HE TRANSFERS THE IDEOLOGIES OF BIASSE AND STEREOTYPES INVENTED IN THE WEST BY HOLLYWOOD AND THE WESTERN MEDIA THAT ESPOUSES SOME OF THE EARTHS MOST DISEASED PROPOGANDA ON THE PLANET. WHEN I SAY IT IS IMPERATIVE THA AFRICA SELF RELIANT STRICTLY PERRFECTING EACHOTHERS ECONOMIES GOVERNMENST AND IDNEPENDNCE". AFRICA NEEES TO SING WITH ONE VOICE WHEN I HEAR AFRICABN UNION SECUIRTY ASKING NATO FOR HELP IN MALI WHY ????????AFRICA NEEDS TO STEP UP THIER DESIRE TO IMPROVE HTIE RELETRICITY POWER PROBLEM'. THEY NEED TO STERNGTHEN THIER TECHNO;LGIES. "THEY NEED TO START FROM SCRATCH WHERE THEY GET A SATTELITE FIGURE IT OUT GET A AIRPLANE ENGINE BREAKDOWN EVERYTHING TO THE BARE NOTHING AND PUT THINGS BACK TOGETHER THAT IS HOW YOU LEARN". THERE IS EVERYTHING WHERE AFRICA CAN BUILD FROM THE BOTTOM UP WITHOUT IMPORTING ONE PIECE OF MATERIAL. WHAT WE NEED IS RAILRODA AND MOTROWAYS AND USING OUR RIVERHIGHWAY SYSTEM THAT WAS THE WAY THE ELDERS TRANSFERED THIER TECHNOLOGIES. WE NEED TO GO TO BASICS AND GET AFRICA MOTIVATED AWAY FROM CRIPPLING SNACTION THAT IS SOEMTHING THE WETS USES WHEN THEY ON WHIMP WANTS TO PUNISH AFRICANS. THE BEHAVIOR OF THE WEST IS THAT OF A CHILD AND PARENT??????? THEY FORGET THAT YOU ARTE THE FIRST HUMAN BEINGS ONTHIS PLANET THERE FOR MILLIONS OF YEARS WAS TWO DISTONCT GROUPS OF AFRICANS WHICH BECAME NITED TO FORM WHAT WE KNOW TODAY AS HUMANITY. THESE TWO BLACK GROUPS WERE AUTRALOIDS AND THE ADAAMITES OR NUBIANS KUSHITES THE JEBBUSITES WERE AUSTRALOIDS . ALL AFRICA FROM DOHA TO ABDIJAN CAPETOWN TO CAIRO WAS ALL BLACK CIVILZED AND WITH GREAT PURPOSE". AFRICAN UNITY IS FUNDAMENTAL TO WORLD POWER!!!!!!!!!!!!!!!!
" WELL THOUGHT OUT ;'AID FOR AFRICA IS NOTHING MORE THAN ECONOMICAL SLAVERY!! THE DEPENDENCE THE WEST WANTS IS TO BE ABLE TO LIVE THE HIGH LIFE GETTING VERY CHEAP GOODS AT THE EXPENSE OF THE AFRICAB LABOURER.. TODAY IT IS IMPERATIVE THAT WE MAKE CONTACTS THE WORLD OVER ESPECIALLY IN NATIONNS THAT HAVE EXPERIENCED THESE TYPICAL WESTERN UNDERMINININGS OF BLACK GOVERNMENTS". "SOMEHWERE IN THE PSYCE OF WHITES IN THE WEST BLACK PEOPLE ARE THIER SERVANTS AND REGARDLESS OF STATURE OR POSITION THEY STILL REGARD AFRICANS AS THEIR INEFRIORS". WE SIGHT THIS BY THE MEHTODOLOGY OF HOW THEY DONATE FUNDS TO KEEP NATIONS IUNDER DEVELOPED THE WAY THEY DICTATE TO THE AFRICAN GOVERNMENST ALWAYS AS THE INEFRIOR SUBJECT TO REPRIMANDS AND THIER SO CALLED" EXPERT WITNESSES!!!!!!, ALWAYS THE PROTAGONIST WITH MISLEADING INOFRMATION USUALLY BASED ON THEIR MISUNDERSTOOD PROJECTIONS FO WHOM THE AFRICAN ISAND WHAT THEIR CAPABILITIES ARE". IN ORDER FOR AFRICA TO STUMULATE GROWTH IN AFRICA AFRICANS HAS TO BE LANDOWNERS MASTERS OF THIER OWN DESTINIES; THIS TAKES EDUCATIONAND RESPONSIBLE ACTIONS ON THE ECONOMIES OF AFRICANS. COLLABEATION AMALGRMATION WONT HURT. AS WE SEE THE SAHEL REGION HAS UNIFIED WITH A BANKING SYSTEMTO FUND INFRSTRUCTURE THAT WILL CONNECT AND PROVIDE TRADE MOVEMENTAND JOB CREATIONS. IF WE DO NOT HAVE SCIENTIST IN LINE WE NEED A STRONG PANAFRICANIST UNIEVRSITY WHICH IS IN THE PLANNING STAGE AT THE AU'. WE NEED METALURGIST TOP MANGERS OF OIL RIGGS DRILLS AND WE NEED THE CAPABILITY TO DESIGHN ONES FUTURE WITH THE STRONG EMPHASIS ON BLACK EMPOWERMENT".. THERE IS NO TIME FOR PROCRASTINATION IT IS OF URGENT DEMAND THAT WE START TO FILL THE BOOTS TO TRANSFORM ONES NATION FROM DEPENDENCE TO FOR EVER FREE FOR EVER INDEPENDENTSHOULD THE EAST TRULY INTERGRATE THIER CAPCITY TO COMPETE EFFFECTIVELY WITH THE LIKES OF THE SUADIS THE QATRIS WHOM ARE THE OWNERS OF THIER WELLS THEY ARE ALSO OWNERS OF THIER BANKING SYSTEM THEY ONW THIER ONW CURRENICES WHICH IS JUST AS COMPETETIVE AS ANY OTHER. MY IDEOLOGY IS FOR AFRICA TO PRODUCE REFINE OWN TRADE MANUFACTURE COFFEE WITH SOME OF THE MOST EXPERIENCED OF COFFEE PRODUCERS TO SELL SOME OF THE EXOTIC OF COFFEES WITH TRADE MARKS OF COMPLEMNETING AFRICA." OIL ,AGRICULTURE, GAS ,IRON , GOLD, DIAMONDS MUST HAVE AFRICAN BRANDS AS THE BEST THE HIGHEST IN QUALITY ON THIS PLANET "!!!!!.THIS IS JUST SOME OF THE IDEAS WHERE THE PEOPLE CAN SHARE IN THE PROFITS WHERE THEY ARE THEMSELVES BOSSES". "THIER NEEDS TO BE MORE COOPERATIVES WITHIN AFRICA A LIGITTIMATE MOVEMENT OF SOCIAL INCLUSIVENESS AS IT WAS WITH OUR FORE FATHERES"." ALL WERE KINGS QUEENS" IN RESEARCHING ANCIENT TRADITIONS AFRICANS WERE THE FOREMOST SOCIALSIT EVER ',THEY INLCUDED THE ENTIRE POPULATION IN ALL THIER VENTURES.' GREED SELFISHNESS WERE NEVER EXPERIENCED THEY LIVED FOR EACHOTHER!!!!!. WHEN THE LINES WERE CROSSED THERE WAS NORMALLY AND EXPULSION A BAN EXCLUDED WHICH USUALLY WAS A DISASTER FOR THE OFFENDER. AFRICANS TENDED TO BE MRE MORAL AND ALLOWED OFR EVERYONE TO HAVE A HGH LIFE STYLE. THERE WAS A HIGH CULTURE IN AFRICA WITH TOILETS RESERVOIRS AND THE MOST MODERN OF ANY SOCIETY TODAY. HAVE YOU NOT RECOGNISED HOW HARD THEY TRY TO KEEP THE AFRICAN DOWN." IT IS A STAGED OFFENSEIVE AGAINST AFRICA". WHEN EVER THEY SEE AFRICANS BECOMMING SELF RRELIANT THEY CREATE CONFLICTS THEY USE SEDDITION ESPIONAGE SUBTERFUGE AS WE SEE NOW WITH THIER EXPERT TESTIMONY". THIS IS EFFECTIVELY THE WAY TO KEEP YOU TRAPPED THEY TRULY BELIEVE THAT THE BLACK MAN DOES NOT THAVE THE CAPACITY TO THINK AND DO FOR SELF!!!!!!! THIS IS WHAT WE SEE IN BANKI MOONS DECISIONS IN AFRICA ; HE TRANSFERS THE IDEOLOGIES OF BIASSE AND STEREOTYPES INVENTED IN THE WEST BY HOLLYWOOD AND THE WESTERN MEDIA THAT ESPOUSES SOME OF THE EARTHS MOST DISEASED PROPOGANDA ON THE PLANET. WHEN I SAY IT IS IMPERATIVE THA AFRICA SELF RELIANT STRICTLY PERRFECTING EACHOTHERS ECONOMIES GOVERNMENST AND IDNEPENDNCE". AFRICA NEEES TO SING WITH ONE VOICE WHEN I HEAR AFRICAN UNION SECUIRTY ASKING NATO FOR HELP IN MALI WHY ????????AFRICA NEEDS TO STEP UP THIER DESIRE TO IMPROVE HTIER ELETRICITY POWER PROBLEM'. THEY NEED TO STERNGTHEN THIER TECHNOLOGIES. "THEY NEED TO START FROM SCRATCH WHERE THEY GET A SATTELITE FIGURE IT OUT GET A AIRPLANE ENGINE BREAKDOWN EVERYTHING TO THE BARE NOTHING AND PUT THINGS BACK TOGETHER THAT IS HOW YOU LEARN". THERE IS EVERYTHING WHERE AFRICA CAN BUILD FROM THE BOTTOM UP WITHOUT IMPORTING ONE PIECE OF MATERIAL. WHAT WE NEED IS RAILROADS AND MOTROWAYS AND USING OUR RIVERHIGHWAY SYSTEM THAT WAS THE WAY THE ELDERS TRANSFERED THIER TECHNOLOGIES. WE NEED TO GO TO BASICS AND GET AFRICA MOTIVATED AWAY FROM CRIPPLING SANCTIONS THAT IS SOMETHING THE WEST USES WHEN, 'THEY ON A WHIMP WANTS TO PUNISH AFRICANS!!. THE BEHAVIOUR OF THE WEST IS THAT OF A CHILD AND PARENT??????? THEY FORGET THAT YOU ARTE THE FIRST HUMAN BEINGS ON THIS PLANET, HERE FOR MILLIONS OF YEARS. THERE WAS TWO DISTINCT GROUPS OF VERY BLACK AFRICANS WHICH BECAME UNITED TO FORM WHAT WE KNOW TODAY AS HUMANITY. THESE TWO BLACK GROUPS WERE AUTRALOIDS AND THE ADAAMITES OR NUBIANS KUSHITES THE JEBBUSITES WERE AUSTRALOIDS . ALL AFRICA FROM DOHA TO ABDIJAN CAPETOWN TO CAIRO WAS ALL BLACK CIVILZED AND WITH GREAT PURPOSE". AFRICAN UNITY IS FUNDAMENTAL TO WORLD POWER!!!!!!!!!!!!!!!!