Kagameconomics Does Not Add Up. Economy Is Said To Have Grown By 11.9%, But The Currency Is Collapsing While Inflation Is Ravaging Rwanda

By David Himbara

Kagameconomics does not make any sense. Economic growth is flying high (top chart) but the currency is collapsing (lower chart).

Kagameconomics doesn’t make sense. General Paul Kagame government just announced impressive economic growth rates. According to the National Institute of Statistics of Rwanda, GDP grew by 11.9 percent in the third quarter. But the Rwandan Franc is collapsing. On December 13, 2019, the Rwandan Franc was trading at US$1 to RWF941. The Franc kept falling in 2019, and looks set to hit US$1 to RWF1,000. Meanwhile, inflation is hitting Rwandans very hard. As Kagame’s New Times is reporting, “the prices of foodstuff such as beans and peas have almost doubled to over Rwf1000 a kilo from Rwf600–800 in July.” So, if the Rwandan economy is doing so great, how come the currency is collapsing and inflation is inflicting much pain? Stay tuned.