Minister Ndagijimana explains why Income Per Capita will not reach $1240 as ‘Vision 2020’ predicted

On 27 November 2019 at 04:25

The Government of Rwanda has announced that its 2020 goal that every Rwandan on average should be earning $1240 per year may not be attained due to unpredictable performance shortfalls that altered the economic growth path.

In 2000, Rwanda embarked on ‘Vision 2020’, a long-term development blueprint that was to see the country transitioning from a low-income country to a middle-income country and where at least every citizen would have an income of $1240, almost a million Rwandan Francs a year.

From a GDP and Income Per Capita point of view, the country’s economy has remarkably improved but it is clear enough that achieving what was planned in the two remaining months of 2019 will be impossible.

In 1990, Income per Capita was $374, $146 in 1994 and $225 in 2000. In 2010, Income per Capita was $579, $728 in 2015, $774 in 2017 and $788 in 2018 per year. Taking this data into consideration, there has been a 1.7% increase in the average income earned by each citizen.

On this Tuesday, the Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana explained in detail to the parliament of Rwanda the state of the economy as of September 2019.

Talking about the ‘Vision 2020’ goal where every Rwandan citizen was supposed to be earning $1240 per annum, Deputy Uwanyirigira Gloriose asked Dr. Ndagijimana if this is idea is still conceivable taking into consideration 2020 is only two months away.

“My question is whether this goal is still achievable as planned. The reality on ground shows that a citizen earns at least Rwf 2000 per day but if we take into consideration the recent increase in food prices where for example a kilo of beans increased up to Rwf 1000, there is no hope of citizens staying on the same healthy diet.”

In his remark, Deputy Rwigamba Fidele said the ‘Vision 2020’ goal is clearly not achievable in these two remaining months but enquired Dr. Ndagijimana to explain which measures were being taken to reach it.

“We clearly won’t attain that goal for now but the path we are taking is a promising one. Nevertheless, Dr. Ndagijimana should expound on measures being taken as we transition to a middle-income country.”

Dr. Ndagijimana agreed that there was still a long way to go for every Rwandan citizen to be earning $1240 per year. He related this matter to the fluctuations in the economy the country has experienced over the years. “For us to achieve this goal, the country’s economy should have been growing by 11.5% per year yet from 2000 until now, this happened only once.

The highest our economy increased by was 9% but every year we usually experience between 7% and 8% growth.

Dr. Ndagijimana concluded saying that the Income per Capita statistics for 2019 have not yet been announced and that it will be challenging to reach the 2020 goal as it was planned.

“We are joining efforts to achieve the ‘Vision 2020’ is the shortest possible delay but it is an unrealistic objective to attain by 2020.”

However, Dr. Ndagijimana added that according to the 2017 National Strategy for Transformation (NST 1), Rwanda is on a relentless path towards becoming a middle-income country where every Rwandan Citizen will be earning $1300 per annum.

The Government of Rwanda will be transitioning from the ‘Vision 2020’ to the ‘Vision 2050” whereby 2035, Rwanda will be a middle-income country if all goes according to plan. With the assumption that the economy will be growing by 10% on average, Income Per Capita will be Rwf 10 Million per annum.

The Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana explained in detail to the parliament of Rwanda the state of the economy as of September 2019.