RWANDA MONTHLY ECONOMIC REVIEW

UNCLAS KIGALI 000934 SIPDIS SIPDIS DEPARTMENT FOR AF/C DEPARTMENT PASS USTDA: EEBONG DEPARTMENT PASS USTR: WJACKSON DEPARTMENT PASS COMMERCE: RTELCHIN DEPARTMENT PASS OPIC: BCAMERON ADDIS FOR LISA BRODEY E.O. 12958: N/A TAGS: EFIN ECON PGOV EINV ENRG ETRD EPET BTIO RW SUBJECT: RWANDA MONTHLY ECONOMIC REVIEW DEVELOPMENT PROJECTS / ISSUES ¶1. The Dutch government, through the Netherlands Organization for International Cooperation in Higher Education (NUFFIC),is supporting the Rwanda Flower Farmers Association. In an attempt to increase flower exports to the Netherlands, the Dutch project will train six cooperatives in better farming and production strategies. The training will cover crop management, pest and disease control, fertilization, post harvest and package handling, electronic irrigation, and fertilizer production. COMMERCIAL OPPORTUNITIES / SUCCESSES ****************************************** ¶2. Rwanda's tea production rose by 21 percent in the first seven months of 2007 due to good rains and increased use of fertilizers. The average price of the tea crop, however, dropped to USD 1.69 per kilogram (kg) in the first seven months of 2007 from USD 2.04/kg in ¶2006. The American-owned Sorwathe tea plantation continued to have the highest production of Rwanda's ten major tea factories, producing 2.4 million kg during the period. The increased production, however, did not off-set the drop in tea price. Rwanda's tea traditionally has been sold to the United Kingdom, Pakistan and Egypt. This year, Rwanda's markets have expanded to include Russia, Iran and Yemen. ¶3. Rwanda hosted a Golden Cup Competition to garner international recognition for its burgeoning specialty coffee industry. Sixteen professional cuppers from Europe, Japan, and the United States visited and evaluated coffee from 20 different washing stations. The organizers of the competition held an auction at the conclusion of the contest, fetching prices as high as USD 55.10 per kg, which is 25 times the typical price paid for specialty coffee. MACROECONOMIC INDICATORS ******************************* ¶4. The Cabinet adopted the Economic Development and Poverty Reduction Strategy 2008-2012 (EDPRS). This roadmap for poverty reduction aims to make Rwanda a middle income country by the year ¶2020. EDPRS prioritizes government actions to enhance job growth, exports, governance, and rural development. ¶5. Torrential rainfall earlier this month in northwestern Rwanda destroyed homes, ruined crops, killed 15 people and left thousands more homeless. The flash floods hit the Nyabihu and Rubavu districts the hardest. While there have been fears that the effects have the potential to create long-term health and food security crises across the country, most assessments view the situation as a localized issue. The government, along with several international organizations, has provided emergency food aid and non-food items such as plastic sheetings. ARIETTI