Investments to grow by 25 -30%

The Governor of the Central Bank Francois Kanimba.

 

Government says that local and foreign investments to Rwanda should grow by between 25 and 30 percent of the Gross Domestic Product (GDP) by 2012 as economic growth is estimated at 7 percent to reduce poverty levels.

Information from the Ministry of Finance department of Financial Sector Development reveals that for this to happen, the country needs active external savings mobilization strategies and a domestic savings rate of 20 percent and.

The savings mobilsation strategy is expected to boost National Gross Savings (NGS) to 18.4 percent of GDP in 2012 from 13.6 percent in 2008.

Recently, the Governor of the Central Bank Francois Kanimba noted that increasing long term savings would be through pension scheme, Capital market and deepening insurance cover.

The other strategy to increase savings is the Umurenge SACCOs strategy which is still at its inception phase but with very satisfactory progress.

Through intensive public sensitization, 300 SACCOs have been licensed with Rwanda Cooperative Agency and a training program will be conducted for managers and staff in all sectors this month.

According to FSDP department, real savings mobilization will start once SACCOs are fully licensed and operational with due capacity