Rwanda’s Finance Minister tabled Budget for 2020-2021

By Our Correspondent, KIGALI Rwanda

Rwanda’s Minister of Finance and Economic Planning, Uzziel Ndagijimana,  read the national burdget for the Fiscal Year 2020-2021 to both chambers of Parliament.

The Rwandan economy has been severely hit by Covid-19 and this has affected the government projections.

According to Minister Ndagijimana, the private sector has been adversely affected by the crisis which has disrupted priority sectors of the economy.

The government has thus established an Economic Recovery Fund (ERF), a two-year facility established by government to cushion businesses affected by the Covid-19 Pandemic.

According to the government, Frw 100 billion is to be distributed towards; hotels sector loan refinancing as the sector have lost over 90% of revenues from cancellations of events and bookings due to global lockdown and travel restrictions; businesses in manufacturing (including agri-processing), transport and logistics as well as small and medium enterprises linked to domestic and global supply chains.

There is a possibility of additional funds as the target is to mobilize at least Frw 200 billion in total.

“The Economic Recovery fund in addition to other recovery measures will help to overcome the significant hardship brought on by COVID-19 on businesses and individuals and allow them to be in a position to play a meaningful role in our economic recovery,” the Minister noted.