What is the EBA?
The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.
At a glance: EBA beneficiaries' preferential imports to the EU
13,78 M
Population
Presidential Republic
Government
8.20%
GDP Growth
6.00%
Inflation
$ 13,31 B
GDP
Facts about Rwanda's economy
Macroeconomic Stability
Rwanda can look back on a two decades of dynamic economic expansion with an average annual growth rate of over seven percent. Other macroeconomic parameters additionally indicate a stable macroeconomic environment, including low inflation, low corruption, and comparatively low levels of depts.
Export Products
Important export products of Rwanda are gold, coffee and black tea as well as ores (tin, niobium, tantalum, etc.) and medium and light oils.
Trade Partners
Rwanda's most important trading partners are Congo,China, the UAE. While most imports originate from China and Kenya, most exports go to the Congolese and UAE markets.
Economic Structure
The agricultural sector dominates Rwanda’s economy with coffee, tea and tobacco being the most important cash crops accounting for about 54% of the total exports in 2021. The manufacturing sector depends largely on agricultural inputs. Apart from the processing of commodities, most industrial activity is small scale and includes mining, textiles, construction materials, pharmaceuticals etc.
Usage of EBA Preferences
About 23% of EU imports from Rwanda make use of the preferential access granted by the EBA. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, is very high and currently stands at 97%.
Trade with the EU
Total trade with the EU summed up to € 432 million in 2021. Behind China and the UAE, the EU is Rwanda's fifth most important trading partner, accounting for a share of 9.1%. This is mainly driven by the importance of EU imports. Just 2.2% of Rwandan products go to the EU market.
Rwanda and the EU (2022)
Imports from Rwanda by product section
Imports from Rwanda over time (in € m)
RWANDA AND THE EU’s GSP
Economic Impact
19%
Less than 20% of Rwanda's exports to the EU market are eligible for EBA preferences
93.80%
With a preference utilisation rate of almost 94%, Rwanda makes considerable use of EBA preferences.
Preference utilisation and export diversification
Rwanda's imports to the EU
Preference Utilisation vs. total eligible imports
Rwanda’s preference utilisation rate has improved considerably throughout the years, suggesting that the country takes better advantage of the preferences granted under the GSP. Starting from below 10% earlier this decade, the preference utilisation picked to 97% in 2020. At the same time, the share of eligible imports rose, amounting to 18 million in 2022. This, however, remains a small share of total EU imports from Rwanda. Two of the major import products, coffee and ores, already benefit from zero third country duties.
The largest product sections under EBA
While overall EU imports from Rwanda remain concentrated on coffee and mineral products, imports under the EBA are less focused on individual product groups. Nonetheless, agricultural products dominate the imports under the EBA.
SUSTAINABLE DEVELOPMENT
As a beneficiary of the EBA, Rwanda is not obligated to ratify any conventions to be able to benefit from preferential access to the European market. Nonetheless, Rwanda maintains a high level of ratification and has ratified all 15 core international conventions on human and labour rights. This includes 7 UN human rights conventions and 8 ILO conventions on labour standards. Additionally, Rwanda has ratified 8 conventions on environmental protection and 4 conventions on good governance aspects.
Core international conventions on human rights and labour standards
Ratified
- Convention on the Prevention and Punishment of the Crime of Genocide (1948)
- International Convention on the Elimination of All Forms of Racial Discrimination (1969)
- International Covenant on Civil and Political Rights (1976)
- International Covenant on Economic Social and Cultural Rights (1976)
- Convention on the Elimination of All Forms of Discrimination Against Women (1981)
- Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
- Convention on the Rights of the Child (1990)
- Convention concerning Forced or Compulsory Labour, No 29 (1930)
- Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
- Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
- Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
- Convention concerning the Abolition of Forced Labour, No 105 (1957)
- Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
- Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
- Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)
Additional Conventions
- Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
- Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
- Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
- Convention on Biological Diversity (1992)
- The United Nations Framework Convention on Climate Change (1992)
- Cartagena Protocol on Biosafety (2000)
- Stockholm Convention on persistent Organic Pollutants (2001)
- Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
- United Nations Single Convention on Narcotic Drugs (1961)
- United Nations Convention on Psychotropic Substances (1971)
- United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
- United Nations Convention against Corruption (2004)
EU-Rwanda Bilateral Development Assistance
DG INTPA
Access all info about EU-Rwanda relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/republic-rwanda_en
Opportunities in Rwanda
- Strong governmental efforts in providing a stable and favourable economic framework
- Further potential in expanding the currently still small domestic consumer goods and agri-foods industries
- Regional hub for intra-African air transport
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