Trading Partner Portal: Rwanda
Overview
Trade Overview
Rwanda is a small country in central Africa which has been working toward rebuilding its economy after its government-sponsored genocide in the 1990’s. The majority of the population is engaged in subsistence agriculture and mineral processing, with top exports being minerals, coffee, and tea. Rwanda has a population of 14.09 million and a GDP of $14.1 billion as of 2023. (CIA Factbook, BBC Country Profile, World Bank)
Rwanda and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, World Bank, World Trade Organization, and World Intellectual Property Organization. Rwanda is also a member of a number of regional organizations, including the African Union, East African Community (EAC), and the Common Market for Eastern and Southern Africa (COMESA).
U.S. – Rwanda Trade Relations
Two-way trade in goods between the United States and Rwanda was approximately $76 million in 2023. In this same year, the United States exported $38 million to Rwanda, with the top export being chemicals at $18 million. other exports consisted of computer and electronic products ($5 million), processed foods ($4million), transportation equipment ($3 million), and non-electrical machinery ($2 million).
Imports from Rwanda were the same number of exports for 2023, coming in at $38 million. Top categories were agricultural products ($23 million), forestry products ($4 million), wood products ($3 million), minerals and ores ($2 million), and processed foods ($2 million). (U.S. Department of Commerce).
Rwanda – California Trade Relations
In 2023, California was one of the top state exporters to Rwanda, with $4 million. Top export categories included transportation equipment ($1 million) and computer and electronic products ($1 million). This was followed by electrical equipment, chemicals, and special classification provisions.
California imported $8 million worth of goods from Rwanda in 2022 with agricultural products making up the $6 million of the total. (US Department of Commerce)
FDI – Rwanda
FDI from the U.S. into Rwanda totaled -$1.5 billion million in 2023, unchanged from 2022. However, Rwanda FDI into the U.S. totaled $2 million, an increase from previous years. (Bureau of Economic Analysis).
Trade Agreements
United States-Rwanda Bilateral Investment Treaty
The U.S.-Rwanda Bilateral Investment Treaty (BIT) was signed in December 2011 and came into force January 2012. It was the first BIT that the U.S. signed with a country in Africa in almost 10 years. During the ceremony, former USTR Ambassador Kirk remarked:
“I am proud to participate in the ratification of this treaty with our Rwandan partners today because U.S. investment in Rwanda and elsewhere supports the U.S. economy and jobs here at home. This treaty will strengthen our two countries’ economic ties and enhance the confidence of U.S. investors in Rwanda, as well as Rwandan investors in the United States. It will also help to promote the new investment that is critical to Rwanda’s economic development. We see Rwanda as a leader in seeking to transform its economy through open trade and investment. We hope that the U.S.-Rwanda bilateral investment treaty will serve as a model for future agreements with other African countries.”
The bilateral investment treaty resulted from consultations under the 2006 United States-Rwanda Trade and Investment Framework Agreement (TIFA).
| U.S. Strategy Toward Sub-Saharan Africa White House, August 2022 FACT SHEETVital Partners, Shared Priorities: The Biden Administration’s Sub-Saharan Africa Strategy U.S. Department of State, August 8, 2022U.S. Food Security Assistance to Sub-Saharan Africa U.S. Department of State, August 8, 2022Statement by President Biden on the U.S.-Africa Leaders Summit White House, July 20, 2022 |
African Growth & Opportunity Act (AGOA)
The African Growth and Opportunity Act (AGOA), extended to 2025, initially was enacted in 2000, eliminating duties on imports from African nations into the United States if those nations made significant efforts to open their economies.
Since its inception, AGOA has helped increase U.S. two-way trade with sub-Saharan Africa. In 2015, U.S. exports with the AGOA nations totaled $17.5 billion, nearly triple the amount in 2002.
In 2015, Congress approved legislation to extend AGOA until 2025, granting the longest extension in its history.
Following its extension, President Obama remarked, “Now that it’s been renewed, AGOA will be central to our efforts to boost the trade and investment that supports hundreds of thousands of jobs both in Africa and the United States, creating opportunities for all of us. And I’m especially pleased that AGOA will continue to encourage good governance and labor and human rights.”
President Signs CalChamber-Supported Trade Bills
June 30, 2013
Statement by Ambassador Michael Froman on Congressional Passage of TPA
June 25, 2015
Presidential Proclamation – African Growth and Opportunity Act
December 2013
For more information, please see:
U.S. Department of State – AGOA
International Trade Administration – AGOA
East Africa Trade Agreement Is Latest Big Step Forward
The signing of the Cooperation Agreement between the United States and the East African Community (EAC) – a regional bloc comprised of Kenya, Uganda, Tanzania, Rwanda and Burundi – is a major relationship milestone.
The agreement centers on building trade capacity in the EAC nations on three issues of importance to the private sector:
- Trade Facilitation
- Sanitary and Phytosanitary (SPS) Measures
- Technical Barriers to Trade (TBT)
The agreement shows that the United States and EAC nations are on the same page in terms of the path forward to building local economic growth and further encouraging foreign direct investment in the region. The work tackled after the signing of this agreement will benefit all businesses in the EAC – both local and foreign.
U.S. Chamber of Commerce, February 26, 2015
Past Events
Past Events
April 14, 2005 – President of Rwanda Speaks at CalChamber Luncheon
The President of Rwanda, His Excellency Paul Kagame, highlighted economic opportunities and development in hiscountry in remarks at the California Chamber of Commerce International Luncheon Forum on April 14, 2005
- Alert – President of Rwanda Speaks at CalChamber Luncheon
- CalChamber Trade Issues – Africa and the SACU Free Trade Agreement
